Cisco 2019 Data Privacy Benchmark Study Shows Organizations Gaining Business Benefits from Data Privacy Investments

SAN JOSE, Calif., Jan. 24, 2019 /PRNewswire/ -- Organizations worldwide that invested in maturing their data privacy practices are now realizing tangible business benefits from these investments, according to Cisco's 2019 Data Privacy Benchmark Study. The Study validates the link between good privacy practice and business benefits as respondents report shorter sales delays as well as fewer and less costly data breaches.

The European Union's General Data Protection Regulation, which focused on increasing protection for EU residents' privacy and personal data, became enforceable in May 2018. Organizations worldwide have been working steadily towards getting ready for GDPR. Within Cisco's 2019 Data Privacy Benchmark Study, 59 percent of organizations reported meeting all or most requirements, 29 percent expect to do so within a year, and 9 percent will take more than a year.

"This past year, privacy and data protection importance increased dramatically. Data is the new currency, and as the market shifts, we see organizations realizing real business benefits from their investments in protecting their data," said Michelle Dennedy, Chief Privacy Officer, Cisco. "At Cisco, we absolutely believe in both protecting our customers and driving business success by maximizing the value of data and minimizing risk."

Customers are increasingly concerned that the products and services they deploy provide appropriate privacy protections. Those organizations that invested in data privacy to meet GDPR experienced shorter delays due to privacy concerns in selling to existing customers: 3.4 weeks vs. 5.4 weeks for the least GDPR ready organizations. Overall the average sales delay was 3.9 weeks in selling to existing customers, down from 7.8 weeks reported a year ago. GDPR-ready organizations cited a lower incidence of data breaches, fewer records impacted in security incidents, and shorter system downtimes. They also were much less likely to have a significant financial loss from a data breach. Beyond this, 75 percent of respondents cited that they are realizing multiple broader benefits from their privacy investments, which include greater agility and innovation resulting from having appropriate data controls, gaining competitive advantage, and improved operational efficiency from having data organized and catalogued.

More than 3,200 global security and privacy professionals in 18 countries across major industries responded to the Cisco survey about their organizations' privacy practices. Key findings include:

    --  87 percent of companies are experiencing delays in their sales cycle due
        to customers' or prospects' privacy concerns, up from 66 percent last
        year. This is likely due to the increased privacy awareness brought on
        by GDPR and the frequent data breaches in the news.
    --  Sales delays by country varied from 2.2 to 5.5 weeks, with Italy, Turkey
        and Russia at the lower end of the range, and Spain, Brazil and Canada
        at the higher end. Longer sales delays can be attributed to areas where
        privacy requirements are high or in transition. Delayed sales can cause
        revenue shortfalls related to compensation, funding, and investor
        relations. Delayed sales also can become lost sales if a potential
        customer buys from a competitor or decides not to buy at all.
    --  Top reasons cited for sales delays included investigating customer
        requests for privacy needs, translating privacy information into
        customer languages, educating customers about an organization's privacy
        practices, or redesigning products to meet customer privacy needs.
    --  By country, GDPR-readiness varied from 42 percent to 75 percent. Spain,
        Italy, UK and France were at the top of the range, while China, Japan
        and Australia were on the lower end.
    --  Only 37 percent of GDPR-ready companies experienced a data breach
        costing more than $500,000, compared with 64 percent of the least
        GDPR-ready companies.

Read the Cisco 2019 Data Privacy Benchmark Study.

Supporting quotes

    --  Cliff Farah, President and CEO, The Beacon Group:  "As privacy
        regulations continue to expand and evolve, corporate leaders will
        benefit from understanding this research and how their decisions and
        investments translate into value."

    --  Peter Lefkowitz, Chief Digital Risk Officer, Citrix Systems and 2018
        Board Chairman, International Association of Privacy Professionals
        (IAPP):"This research provides evidence for something Privacy
        professionals have long understood - that organizations are benefitting
        from their privacy investments beyond compliance. The Cisco study
        demonstrates that strong privacy compliance shortens the sales cycle and
        increases customer trust."

Supporting resources
Cisco 2019 Data Privacy Benchmark Study
Cisco 2019 Data Privacy Infographic
Data Privacy: A Business Imperative Blog
Cisco Data Privacy
Follow us @Cisco

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SOURCE Cisco