8 Data Minimization Practices for Reducing Enterprise Data Footprint
Data minimization has become a critical area of focus for businesses today. In simple terms, data minimization is limiting or restricting the collection, storage, and processing of only the data necessary for running business operations. In addition to reducing the risk of privacy breaches, data minimization can help enterprises save costs.
However, the fact remains that businesses today feel an increasing need to collect vast amounts of data. There is a growing necessity for harnessing the power of big data via advanced data analytics tools to gain a competitive edge and for fast and flexible decision-making. The drawback here is that often these businesses end up with a lot of useless data that raises storage concerns and increases the risk of privacy breaches.
The GDPR and other regulatory bodies have said that organizations should practice data minimization as a way of ensuring the integrity of their data and maintaining regulatory compliance.
Legal implications are a critical aspect of the problem. However, the costs involved in retrieving lost or damaged data and effectively managing the data are other critical areas of concern for businesses.
Continue reading to find out more about data minimization, the data minimization principle, and data minimization best practices.
GDPR and Data Minimization
The GDPR guidelines are designed to provide EU residents with greater visibility and control over how consumer data is both collected and processed by businesses and organizations.
The GDPR advocates data minimization for organizations. Its guidelines have helped ensure that businesses follow certain guidelines and adhere to regulatory compliance with all the data that they collect, the purpose and manner or degree to which the data is processed, the duration of storing or retaining the data, and more.
The Data Minimization Principle
The data minimization principle is a part of the EU’s GDPR, which mandates certain criteria and guidelines on how consumer data should be treated by businesses.
Article 5 of the GDPR states;
Personal data shall be:
“Processed lawfully, fairly, and in a transparent manner in relation to the data subject (‘lawfulness, fairness, and transparency);
Collected for specified, explicit, and legitimate purposes and not further processed in a manner that is incompatible with those purposes; further processing for archiving purposes in the public interest, scientific or historical research purposes, or statistical purposes shall, in accordance with Article 89(1), not be considered to be incompatible with the initial purposes (‘purpose limitation’);
Adequate, relevant, and limited to what is necessary in relation to the purposes for which they are processed (‘data minimization’).” (Source)
For businesses and organizations, it is crucial that they not only understand but also strictly adhere to provisions of the law concerning data minimization when collecting and processing consumers’ personal data.
Businesses should consult with legal experts to familiarize themselves with data protection laws and regulations to avoid legal complications and to ensure proper processes are followed when managing personal data.
Data Minimization Best Practices
The primary goal of data minimization is to optimize how organizations handle consumer data in keeping with privacy laws. But it also lays the foundation for organizations to identify and adopt best practices to limit or reduce their data footprint.
Here are various data minimization best practices for organizations that want to optimize and improve the management of personal data.
1. Data Collection Process – start by looking closely at your data collection process and identify data that is necessary and sufficient for business operations. You can do this by clearly defining the purpose of the data.
2. Establish Clarity in the Purpose of the Data – once you have identified the purpose of the data, ensure that all stakeholders and your staff understand the purpose of the data.
3. Define how Data will be processed – so everyone on board knows how the data will be used. Any instructions or clarifications on the use of the data should be passed down to the last person in your data chain. Also, ensure that this is done on time.
4. Design Policies, Strategies, and Implementation Processes – for data collection minimization. Ensure that these policies, strategies, and processes limit or restrict the use of personal data only to that what is necessary or that requires anonymized data.
5. Identify Junk or Useless Data – often, many temporary data assets and one-time analysis data have zero business value, and see how they can be cleaned.
6. Routinely evaluate your Stored Data – so you can assess if the personal data you have needs to be stored or if it has outlived its utility. Once you identify data that is useless or with an expired shelf life, delete it or archive the data.
7. Limit Attempts at Hoarding Data – by your staff or other stakeholders.
8. Invest in Advanced Data Automation Processes – that can speed up and automate the cleaning up of the data before it can enter into your data systems for further processing.
The expanding data ecosystem and the accompanying advancements in data infrastructure mean that the business environment will be subject to increasing regulatory policies vis-à-vis more data protection laws. The aim will be to protect consumer data.
In such an environment, organizations will have to identify and implement data minimization best practices as a way of preventing future legal complications. In addition, data minimization will also help organizations prepare themselves to align with new regulatory policies.
Ultimately, the burden of ensuring consumer data and privacy is protected, and regulatory compliance falls on the organization. Therefore, you must implement adequate measures to achieve the above and reduce your data footprint by adopting data minimization.