With GDPR (General Data Protection Regulation) coming into effect in just over a week from today, 85% of firms in Europe and the United States will not be ready on time.
Additionally, one in four will not be fully compliant by the end of this year, according to a new report from Capgemini’s Digital Transformation Institute.
British businesses are the most advanced, despite only 55% reporting they will be largely or completely compliant. Spain (54%), Germany (51%) and the Netherlands (51%) are close behind, with Sweden having the most work to do: just 33% of Swedish firms will be largely or completely compliant on time.
The research suggests that some companies are overlooking the business opportunity of GDPR. Nearly one-third of firms are focusing on compliance only: 31% report that the focus of their program is to comply with the mandate rather than gain competitive advantage. Furthermore, although non-compliant organizations face fines of up to 4% of annual revenue, nearly 19% say ensuring they are prepared is not a priority for them.
The research suggests that firms who have got ahead of the deadline, and invested in compliance and data transparency with consumers, are starting to reap the rewards. Of those consumers that are convinced an organization protects their personal data, 39% have purchased more products and increased spend with that individual firm as a result. This increased spend is substantial, with these consumers spending as much as 24% more. In addition, 40% have transacted more frequently with the organization, either a few times or on a regular basis.
The benefits go beyond spending too: 49% say that they have shared positive experiences with friends and family, bolstering a firm’s reputation among potential consumers.
GDPR is also empowering consumers to take action over their own data. Across Europe, 57% of individuals say they will take action against an organization if they know a firm is failing to adequately protect their personal data. Of these, more than 70% will take actions such as reducing their spending (71%), stopping doing business with them (71%) or sharing negative experiences with family and friends (73%).
“Executives now have a great chance to use GDPR to create a customer-first privacy strategy. That business opportunity is significant,” said Willem de Paepe, Global GDPR leader at Capgemini.
“Beyond gaining consumer confidence and increased spending, knowing exactly what data is held allows firms to use analytics more effectively and improve operations. Firms will also know which files they must delete, freeing up valuable storage space and reducing some of the $3.3 trillion it will cost to manage data globally by 2020,” added Paepe.
“Seizing the GDPR Advantage: From mandate to high-value opportunity” Capgemini surveyed 1,000 executives and 6,000 consumers across 8 markets to explore attitudes to, readiness for, and the opportunities of GDPR.