Data Challenges In The Changing Landscape of ecommerce
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1 Data Challenges In The Changing Landscape of ecommerce Your Duty of Care For Your Customer s Information Christine Bardwell Research Manager, IDC Retail Insights
2 Data: from cost to asset If you ve been to a conference in the past two years you ll have seen a graphic showing how big, big data is and how much it s growing. The importance isn t the amount of data it s unlocking the insights and using it Retailers are most savvy using data for personalising the digital experience Customer data becomes an asset customers come first, and like all other assets, you d think retailers would be taking care of their data keeping it in a safe, secure environment. IDC Visit us at IDC.com and follow us on 2
3 What do these retailers have in common? IDC Visit us at IDC.com and follow us on 3
4 What do these retailers have in common? 45 million TJX customers were compromised in March when data thieves broke into insecure computer systems and took the details. Some of the information was obtained by simply hacking into wireless networks used to transmit credit card details. The TK Max hacker - $1.5 million in assets that were seized from Gonzalez, including $1.1 million buried in his parents' backyard hack of the PlayStation Network online gaming community's database. 77 million customers' personal details were exposed including payment card details, names, postal and addresses, dates of birth, and account passwords. Play.com - customer names and s were stolen and spammed IDC Visit us at IDC.com and follow us on 4
5 Many retailers are still not confident they are protected against external attacks Q: How confident are you that the information held by your organization is protected from external attacks? Extremely Confident (15%) Not Confident (2%) Not very Confident (12%) A little Confident (22%) Very Confident (49%) Number of respondents: 41 Source: IDC European Security Survey, 2011 IDC Visit us at IDC.com and follow us on 5
6 Headline breaches not making much difference to the level of PCI compliance Q. Are you audited and certified as PCI Compliant? No Yes Will be in next 3-6 months 0% 10% 20% 30% 40% 50% 60% Number of respondents: 41 Source: IDC European Security Survey, 2011 (%) IDC Visit us at IDC.com and follow us on 6
7 IDC Visit us at IDC.com and follow us on 7
8 The cost of a data breach 500,000? $41 million? 390,000? 5.5 million? IDC Visit us at IDC.com and follow us on 8
9 The cost of a data breach The average cost of a data breach - $5.5 million, according to a benchmark report by privacy management research organization the Ponemon Institute Expenses as hiring forensics experts, outsourcing hotline support, providing free credit monitoring and future discounts for affected customers, in-house investigations Plus collateral cost of brand damage the value of lost sales from customers not making repeat purchases or the added difficulty in acquiring new customers This takes the cost up to $6 million if your company experiences a major breach. IDC Visit us at IDC.com and follow us on 9
10 The challenges of device and touch point proliferation Start Browse Research Discount / Reward Transact Follow-up Facebook Blogs Deal sites Review site Blogs In-store kiosk In-site review Pinterest In-site reviews Facebook Twitter Mobile app Click to chat Coupon sites Mobile app Twitter Online store Review sites Loyalty scheme Online store Facebook IDC Visit us at IDC.com and follow us on 10
11 Around 20% of shopping is now mobile Source: RichRelevance, Mobile Shopping on Boxing Day 2012, (UK online retail data) IDC Visit us at IDC.com and follow us on 11
12 Only 5% of retailers are investing in mobile security tools Q: Do you have any intentions to spend / allocate budget on specific Mobile Security Tools? Not Aware (14%) Interested but Cautious (10%) Already have (5%) Motivated (10%) Frustrated (12%) Not Interested (49%) Number of respondents: 41 Source: IDC European Security Survey, 2011 IDC Visit us at IDC.com and follow us on 12
13 Thank You! Christine Bardwell Research Manager IDC Retail Insights EMEA +44 (0)
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