Forrester Study Commissioned by Evidon Reveals 46% of Companies Started Preparing for GDPR More Than a Year Ago
Companies are taking GDPR preparedness very seriously, according to a recent Forrester study commissioned by Evidon this past September. That’s fortunate given the steep fines (up to 4% of annual global turnover or €20 Million – whichever is greater) and the looming May 25, 2018 deadline for GDPR compliance.
The amount of time being allocated to the GDPR’s strict mandates for data collection and handling isn’t surprising given the complexity of the law and the cross-departmental coordination compliance requires.
Almost half (46%) of companies affected by the GDPR began preparing over a year ago (prior to September 2016), and about a quarter (26%) started their preparations in September 2016. Only a small percentage hadn’t started preparing at all when Forrester conducted the survey.
Spending on GDPR compliance is expected to be significant as well, further reinforcing the extensive resources required to revamp existing data collection, storage, and usage processes.
48% of firms have budgeted over one million dollars as their initial budget for compliance, and 58% expect to spend that much annually to maintain compliance. 15% have budgeted over $5 million dollars for establishing compliance initially.
So, firms have been laying the groundwork for complying with the GDPR for some time now and they’re appropriating significant spend to the endeavor. But what are they investing in to meet the requirements? Technology and processes.
64% say they will design and implement new processes to gain visibility into and document third-party data handling practices and security measures on an ongoing basis.
Although it appears that organizations have been able to secure the necessary resources to get GDPR compliant, they still have concerns about the obstacles they’ll face once the GDPR takes effect.
39% anticipate being challenged by the ability of balancing compliance with exceptional customer experiences. 32% think that maintaining privacy and data communication with users in a way that enhances their experience with the organization will prove to be a challenge.
It’s not all doom and gloom though. Organizations on the whole believe their businesses will ultimately benefit from the GDPR and the ePrivacy mandate.
35% expect improved customer satisfaction. 34% believe compliancy will generate customer loyalty and 32% expect improved brand perception as a result.
The Forrester report, commissioned by Evidon, “Embrace The GDPR To Gain A Competitive Edge” is brimming with many takeaways on how the GDPR will help companies leverage win, serve, and retain customers.