Impact of Data on Decision Making
In the digital age, data is often referred to as the new currency. Data has become a medium of exchange and a measure of worth, much like money, due to its undeniable value. Its importance in decision-making, especially for financial institutions like Bank Gaborone, cannot be overstated.?
To the average person, the term "data" might first bring to mind the data used for cell phones. However, in this context, data refers to information, whether numerical or non-numerical, that can be analysed to generate insights.
In order to understand the critical role data plays, it’s key to unpack the implications of the soon to be implemented Data Protection Act in Botswana, and how data collection benefits financial institutions and individuals alike.
?What is the Data Protection Act
The Data Protection Act 2018 which commences on the 17th of September 2024, seeks to provide for the protection of personal data obtained in the processing of an individual’s personal information; by providing the necessary security safeguards required in the processing of such personal information in Botswana. Organisations are expected to develop a Data Protection Policy which will ensure that personal data is processed fairly and lawfully. This is with the knowledge or consent of the customer, in addition, personal data should be collected, processed, and stored for legitimate purposes. Contravention of the Act is an offence, and data controllers are liable to a fine not exceeding P300 000 or imprisonment of a period not exceeding 7 years or both.
How data can be used
Using data, organisations are able to obtain the right information at the right time, which can then be used to develop strategies that address customer concerns, boost profitability, enhance customer experiences, create customised products, target marketing efforts effectively, and prevent fraud. Banking customers generate an enormous amount of data daily through their transactions. This data holds untapped potential for understanding our customers, product performance, and market trends. By collecting and analysing this data, organisations gain a comprehensive view of their customers, which allows them to segment clients based on profiles, understand their spending habits, personalise product offerings, develop retention strategies, and address customer needs through feedback.
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Data-driven decisions are effective because they are based on verified facts, this helps ?reduce bias, increase accuracy, and boost profitability. Data provides meaningful insights that help validate courses of action and anticipate market shifts and customer needs. For example, MIT research from 2011 found that companies using data to drive their decisions saw a 5-6% increase in productivity. Similarly, companies like Netflix use data analytics to understand viewer preferences, aiding in the selection and production of popular shows.
?How to protect your data
When operating a business, it's key to have protocols and fail-safes to protect the client data. Preventing data breaches requires a multi-faceted approach. For instance, an organisation might want to consider implementing the following:
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Even with the most robust measures in place, data breaches can still occur. In the event of a data breach, it is crucial to act quickly to prevent further compromise and mitigate the potential impact. The first step would be to contain the breach to prevent further data loss. This may involve isolating affected systems and shutting down unauthorised access points, followed by a thorough assessment to determine the extent of the breach then identifying the compromised data, and finally understanding how the breach occurred.
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While investigations are being conducted, it is key for the business to maintain a clear communication line with customers and relevant authorities about the breach, providing information about the data compromised and steps being taken to address the issue. After resolving the immediate threat, a business would need to review and update their data protection policies and procedures in order to prevent future breaches.
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How individuals can protect their data
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Data protection is not just for business. For the individual who is concerned about their data privacy and wants to understand how they can be more cautious, here are some tips to keep in mind:
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Whether you are an organisation or an individual who is curious about the importance of data or unaware of its impact, data is a powerful tool that drives decision-making and innovation in your daily life. Recognising its value and safeguarding personal data are crucial steps to harnessing its benefits while ensuring privacy protection.
Entrepreneur
3 个月Thanks and I'm happy to engage with you and your team to show what solutions we have like building a solution with UPS,racks, rm PDU, DCIM for monitoring and management, as well as access control and environmental monitoring, all in one solution, IoT platform. Our micro data centre for the edge is ideal for commercial banks.
Entrepreneur
3 个月An environmental monitoring solution to protect equipment from environmental threats such as temperature, humidity, dust and other ambient conditions, water leaks, oil or fluid detection etc provide a layer of protection that eliminate downtime and ensure ensure data protection. Physical security is an important as cyber security, access control as you mentioned is another one to protect this systems from data security breaches from unauthorized access or accidental or intentional tampering. Some data security breaches can be an inside job, camera surveillance can provide audit trail should a breach occur and as well as to monitor and prioritize firmware updates, prioritizing tech refresh eliminating or refraining from using old system prone to security breaches. Is things like this, stuff like this on top of what you mentioned that can provider that layer of data protection and make sure the data is at our finger tips to provide meaningful insights for key decision making.
Entrepreneur
3 个月For Bank tellers, ATM'S and POS, a UPS can do them good with clean power, protection of businesses from unstable power conditions such as brown outs, blackouts, and surges. To make sure there's a graceful shutdowns and reboots of systems to protect or avoid data loss or corruption. A rack system organises and house IT gear and manage cables.Rack mount Power Distribution Units (RM PDU's),they enable pinpoint control, monitor both local and remote level power and provides warnings for overloads settings. Automatic Transfer Switch (ATS) to seamlessly switch between a primary source to a secondary power supply source , Racks, and Data center infrastructure management and monitoring software (DCIM) to pinpoint ageing equipment,check & monitor equipment health and battery health status,remote monitoring where there's no physical headcount IT personnel, all these can be a great fit for a datacenter or edge computing site modernization or building a new project.
Entrepreneur
3 个月With digital transformation and mobile solutions means customers and end users wants this data at their finger tips to foster key decision making like predictive/proactive or condition based maintenance instead of reactive measures and others you mentioned. We are seeing many in-store efforts to ehance customer experience like self check out kiosks, RFID self checkout exit door or gates, mobile apps, all this systems or processes are supported by IT back-end systems in the form of a datacenter and to eliminate downtime and ensure business continuity or business as usual or processes to work or function as intended and to be able to provide the new currency we need which is Data, we need to do the following; Provide a resilient clean power infrastructure to your systems- a UPS for example is such an integral part of this equation to support system continuity by providing clean power during an outage or to clean power from the qrid or alternative source before passing on to the equipment, graceful shutdowns and reboot to protect data corruption during a power outage, and to prolong equipment product lifecycle.
Entrepreneur
3 个月Hi Tumisang, super star:) Well thought through and well articulated. This topic is something that i resonate well with, as a startup entrepreneur in this space of data protection working with Fin institutions like yours i totally agree indeed "Data is the new currency ", and just to add a few things on the data protection which i also think are worth mentioning is Data is stored, managed and share through a datacenter, either a central datacenter; cloud or a local edge computing sites which we gonna see an influx of those by 2025 and beyond as Gardner predicts, this prediction has been escalated by the covid repercussions as we saw the culture of remote working evolving quickly and here to stay, this means it's already here, we are already seeing edge computing sites being deployed closer to data intensive applications or users, closer to where the data is being generated, to help overcome cloud or central datacenter limitations like latency issues, bandwidth issues, security and visibility and edge computing addresses this short comings and offers improved performance, increase security and ease deployment of IT equipment closer to data intensive apps or users giving the critical resiliency in today's datacenter ecosystem.