The results of a bi-annual C-Suite Study conducted by tech titan IBM have revealed that chief business executives see data privacy as their top priority in obtaining competitive advantage.
The study, “Build Your Trust Advantage,” polled nearly 13,500 C-level executives across the globe, including from the Philippines, to examine how companies are achieving market leadership by emphasizing trust in their use and sharing of data.
A key finding among Filipino executives is their eagerness to improve access to accurate, reliable, and actionable data that enables a 360-degree view of the customer.
As such, they want to ensure that data is freely shared across other functional business areas, as well as to acquire and share data extensively with network partners.
Overall, the study found that market leadership is most frequently attained when an organization establishes a high level of trust in the data from its customers, its own business processes, and across its partner ecosystem.
Through the quantitative and qualitative surveys issued, it became clear there was a set of leaders, just nine percent of the total respondents – dubbed “Torchbearers” – that stood out as understanding that transparency, reciprocity, and accountability are critical ingredients for earning trust among key stakeholders.
These leaders leverage data to build customer trust, create cultures of data-based decision makers, and are adept at sharing data with ecosystem partners without giving away competitive edge. This group was found to outperform peers in revenue growth and profitability – delivering 165 percent higher results – as well as in innovation and managing change.
The study found that there is also greater willingness to share information with companies who are transparent in how their data is used – 81 percent said they actively support companies that are transparent about how they use their data, and they avoid doing business with companies that don’t.
As a result, organizations that have earned customer trust are more likely to keep the data they have. They find their customers won’t ask them to purge it because they understand there’s value in collecting data to deliver new kinds of services in the future. In turn, leaders report much greater success with 71 percent using data to identify and deliver on unmet customer needs, compared to 28 percent of peers.
The study also revealed an emphasis on the importance of creating trustworthy ecosystems. Data that simply stays within the organization is more likely to drift out of date than to grow in value.
Leading organizations are liberating their data while simultaneously de-risking data exchanges in a shared ecosystem – allowing it to circulate widely, without sacrificing their responsibility to secure permissions and safeguard it. Deciding what data to share for win-win propositions — and what data to maintain as a proprietary advantage — is one of the most difficult decisions organizations have to make, the study said.