Data security as business accelerator?

Why is data security important?

In the digital information age, data is like oxygen—giving life to innovation. And just as important, data security establishes the trust needed for the data to deliver value.

In fact, organizations with the most advanced security capabilities delivered 43% higher revenue growth than peers over a five-year period, according to research from the IBM Institute for Business Value (IBM IBV).

Yet, when corrupted or exposed through cyberattacks, data can fuel disruption. The financial losses from a data breach averaged almost $10 million in 2022 for US organizations. When trust in data is broken, it impedes business growth and drives up spending. The very best organizations navigate this challenge by rapidly establishing trust based on strong information security and then using that trusted, secure data to unlock business opportunities.

The most successful Chief Data Officers (CDOs) prioritize trusted, secure data as a driver of business value.

Seeing around corners

The most successful Chief Data Officers (CDOs) understand that data resiliency can be a driver of business value and they prioritize data protection. That is the clear takeaway from two recent studies of more than 3,300 CDOs, conducted independently by the IBM IBV and by Amazon Web Services (AWS).

CDOs in the IBM IBV study cited data security as their most critical responsibility. Similarly, respondents in the AWS CDO Agenda noted data governance—an essential element of data security—as their top priority.

The highest-performing CDOs take these priorities a step further. The IBM IBV study identified an elite group of CDOs who outperform peers by 40% in innovation and 10% in revenue growth. A critical differentiating trait: the way they align data security strategy with operations and technology strategies. They place a stronger emphasis than peers on cybersecurity and data privacy, on transparency in data architecture, and on trust in data effectiveness.

Unlocking the value of trust: High-performing CDOs cited “data trust and security” far more than other measures of data effectiveness.

The practices that drive results at these leading organizations can be emulated by any organization. As these leaders demonstrate, if applied in a systematic and rigorous way, basic security measures lead to greater data agility and, ultimately, better business outcomes.

Supercharging data innovation

Former racing driver Mario Andretti once said, “It’s amazing how many drivers, even at the Formula 1 level, think that brakes are for slowing the car down.” Rather, as Andretti demonstrated, brakes allow experienced drivers to go faster. Similarly, strong data security helps organizations move confidently and realize value from various types of data more efficiently. Businesses can dare to go faster and take risks knowing they have effective controls in place.

Like brakes on a race car, strong data security helps organizations move confidently and realize value faster.

Leading CDOs illustrate the point. Their organizations use modern security controls and security practices to help protect data from vulnerabilities such as unauthorized access and security breaches; to help ensure privacy of sensitive information and customer data, including personally identifiable information (PII); and to manage regulatory compliance and governance.

They implement security solutions that position them to more quickly achieve operational goals—from increasing revenue and profits, to improving customer relationships and marketing, to enabling new products and services, processes, business models, and strategies. And they partner with their service providers to build shared resilience.

Download the report—co-authored with AWS—to explore the data security practices and principles behind the success of leading CDOs. An action guide offers short- and longer-term suggestions for how you can accelerate your path to value from your organization’s data.