As businesses eagerly anticipate the UK Government’s long-awaited Data Protection and Digital Information Bill, business leaders will need to revisit the way they approach international data transfers and ensure they can comply with new regulations and the evolving data landscape
The post-Brexit data landscape looks very different for the UK. In the last year, the Electronic Trade Documents Bill, the NI Protocol data sharing agreement and the Schrems II legislation have all come into effect, leading organisations to take on huge transformation projects.
How to approach the current data landscape
These aforementioned bills have been designed to provide more efficient and cost-effective outcomes for the industry by removing unnecessary or complicated processes. However, for any of these directives to work, businesses must review their operations to ensure data transfers and contractual agreements are up-to-date, lawful and compliant. After all, risk comes with every trade document and contractual agreement. Therefore, it is important that suppliers and traders mitigate risk where possible and are mindful of this when rolling out any digital change programmes in response to the new legislation.
Naturally, short-term technology spending is expected to increase, with leaders ramping up their digital transformation programmes to keep up with these new regulations. Businesses need to be careful here, as they cannot afford to keep redesigning or modelling their data architecture or systems. Instead, enterprises should approach this strategically and in a phased manner – especially when it comes to scaling solutions across their organisation and minimising any disruption.
Digital change programmes of this size can be incredibly complex and overwhelming. However, it is important that leaders view these legislative changes as an opportunity to reassess and streamline their revenue processes. The only way an enterprise can go about doing this is by establishing a digital roadmap or a revenue lifecycle management framework. Essentially, businesses need to establish their digital maturity and where they currently stand in their transformation journey.
Digital transformation requires effective data management
Business leaders must get their houses in order before committing to a digital programme. It is best practice to take a step back and carry out a situational analysis to identify key processes and where changes need to be made. Data is the lifeblood of everyday business; how it is stored, managed and flows across the operational cycle is vital to an organisation’s day-to-day functions. If data is siloed or disconnected between departments, it can impede overall operational efficiency and result in considerable revenue and data leakage. Or, worse, as these new regulations suggest, compliance issues or serious fines.
By reviewing their current data cycle, organisations will have more insight into how data flows between their various departments, teams and systems. From here, organisations can then determine areas of improvement and fully optimise their revenue lifecycle, before sharing any data with third parties.
Meaningful change vs ‘half-baked’ transformation programmes
Some businesses will have serious budget constraints and look for ways to work around these new regulations. These are the main reasons why organisations continue to rely on legacy systems or make ‘half-baked’ digital transformation plans, relying upon a blend of old and new systems to deliver their services. Whilst this may work in the short term, it is not an efficient way of working and can lead to major issues in the long run. This can include non-compliance with modern data regulations or susceptibility to cybersecurity threats, system errors and crashes.
For organisations that manage personal customer data and information, a cyberattack or subsequent data leak could result in financial, reputational and possible legal consequences. Not updating or patching older systems can put customers’ data at risk, meaning that the software is no longer compliant with the latest legislation and data regulations.
Modern businesses have an obligation to manage their own legal risk effectively. However, falling out of legal compliance due to outdated technology leaves internal legal and IT teams responsible and struggling to manage the subsequent risks. Ultimately, as data laws are under constant review and change, so must be the technology used by today’s businesses and organisations too.
Another problem with using legacy technology is that it leads to serious operational inefficiencies. Indeed, old and new technologies do not communicate well with each other. This can result in data being poorly managed or misplaced throughout its lifecycle and not being shared appropriately between different departments. This also presents a significant risk to an organisation from a compliance perspective, which will need to be addressed ahead of these legislative changes.
Why do digital change programmes fail?
Many business leaders do not have a clear understanding of what the outcomes their digital transformation can and should drive. Far too often, businesses tend to adopt new and innovative technology with the belief that it will solve all their problems.
At times, this is done in response to upcoming legislative changes, but without considering the teams involved. In turn, companies adopt a technology and implement it at speed, without thorough planning or understanding how it will improve their day-to-day operations. In most cases, these projects fail, causing major operational complications and other issues later down the line.
To prevent transformation projects from failing, people, processes and technology should be at the heart of any transformation project. Businesses must stop implementing technology without considering its impact on each department and their daily tasks. Instead, leaders must think more strategically with their investments and approach these projects with a level head.
Delivering true digital change and real value
Ahead of these new data laws, organisations will need to put a whole range of new processes in place to comply with different export jurisdictions, execute transfer impact assessments and establish new cross-border data flows. Some legislations may even require organisations to adopt entirely new processes and digital tools altogether.
However, these legislative changes should be viewed as an opportunity to establish new and more efficient ways of working and make meaningful changes. After all, digital transformation is the future of business. As such, leaders must embrace these changes with an open mind. It is important that they consider their transformation initiatives carefully by implementing technology that compliments their overall business goals and can streamline their data and revenue lifecycles.
In doing so, UK enterprises will be better prepared and ready to make the necessary changes to align with new and upcoming data laws. In time, leaders will be able to consider how contracts and trade documents can be drafted more comprehensively and collaboratively across different business functions, taking their business to the next level.
This piece was written and provided by Charlie Bromley Griffiths, corporate counsel, Conga
