Study of Digital Transformation and Personal Data Protection in the Era of Globalization

Abstract

In today's business world, the relationship between Companies and markets are dependent on each other. Companies or organizations are dependent on market and markets are dependent on fulfilling customer’s need. That’s where the concept of digital transformation comes– it's about using digital technologies to not just improve how a business works but to completely change how it operates and connects with customers. Success for any company depends on understanding and meeting what customers want. Digital transformation aims to improve organizational performance by enhancing efficiency, agility, and innovation. This could involve automation of manual processes, real-time data analytics, or the implementation of AI and machine learning technologies. An important part of digital transformation is reaching customers through different channels like online platforms, social media, mobile apps, and online shopping. It's a continuous process of changing the company at its very core. While digital transformation brings about numerous benefits, it also amplifies the complexity of data protection. Digital transformation often involves the generation, collection, and analysis of vast amounts of data from various sources. With the increased volume and sensitivity of data, ensuring robust data protection measures becomes critical to prevent unauthorized access, breaches, or misuse. The adoption of digital technologies introduces cybersecurity risks, including data breaches, ransomware attacks, and other malicious activities. Many regions and industries have implemented stringent data protection regulations, such as the Digital Personal Data Protection Act (DPDP), 2023, the General Data Protection Regulation (GDPR) in Europe or the California Consumer Privacy Act (CCPA) in the United States. Organizations undergoing digital transformation need to align their processes and technologies with these regulations to ensure compliance, safeguarding customer privacy and avoiding legal consequences. Digital transformation necessitates effective data governance practices throughout the data cycle from collection and processing to storage and deletion. Digital transformation requires organizations to be prepared for potential data breaches or security incident. Successfully integrating data protection measures into digital transformation efforts is essential for building trust with customers, ensuring regulatory compliance, and mitigating risks associated with the evolving digital transformation.