CEO, Data Dynamics
In the rapidly evolving Indian data ecosystem, the management of data is becoming increasingly critical, especially in the context of compliance with the Digital Personal Data Protection (DPDP) Act. As India strides forward in its digital transformation journey, the sheer volume of unstructured data—ranging from emails, documents, and social media posts to audio, video, and sensor data—presents both unprecedented opportunities and significant challenges for enterprises. The management of this data, which does not conform to conventional data models, requires a unified approach that not only addresses the complexities of data security, privacy, and governance but also aligns with the principles of data sovereignty and compliance mandated by the DPDP Act.
India’s data landscape is expanding at an exponential rate. With over 700 million internet users and a growing digital economy projected to reach $1 trillion by 2025, the volume of unstructured data is expected to grow multifold. This data, while rich in potential insights, is also inherently chaotic and difficult to manage due to its sprawl across a vast variety of repositories. This data can be extremely valuable when utilized within AI models, providing insights that lead to a better customer experience, internal process enrichment, and accelerated time to market. To facilitate the use of AI requires the models to ingest hundreds of billions of data points, as the more data it gobbles, the better the accuracy of the models and, in turn the greater the value AI can provide. The deluge of data creates inherent risks via both inadvertent exposure or targeted malice and misuse. Having experienced the COVID era, we can see how a single event can impact society on a global scale. Imagine a targeted attack based on the personal health information of citizens, creating airborne, waterborne, or another form to attack a vulnerability that exists across the masses. Once seen as sci-fi entertainment, this is coming into reality. Digital threats are a greater danger than physical attacks from a combatant country or bad actor.
India has taken a major step in addressing this exposure by passing into law the DPDP Act, bringing the ideology and framework for Data Democratization, one that prioritizes Digital Trust and Citizen Data Rights. It aligns perfectly with Prime Minister Modi’s vision of a $1 trillion digital economy and the government’s focus on creating a secure and inclusive digital infrastructure. The Act imposes rigorous requirements on organizations to safeguard the privacy of individuals, mandating clear consent mechanisms, data minimization practices, and stringent data security measures. However, the Act also raises new challenges, particularly for industries heavily reliant on unstructured data, such as healthcare, banking, financial services, insurance (BFSI), and e-commerce.
One of the most pressing issues enterprises face is ensuring data security, privacy, and governance across vast unstructured data repositories. Unlike structured data, which resides in databases with clearly defined fields, unstructured data is often stored in disparate, unregulated environments, making it more vulnerable to breaches and unauthorized access. Additionally, the absence of proper governance can lead to data silos, duplication, and inconsistencies, which not only hamper decision-making but also increase the risk of non-compliance. A recent report by IBM found that the average cost of a data breach in India has risen to INR 17.9 crore in 2023, with the BFSI sector being the most affected.
In this context, I see the role of unified unstructured data management as pivotal. A holistic approach involves the integration of various data management processes—such as data discovery, classification, storage, protection, and compliance—into a cohesive framework. For instance, it automatically classifies data by sensitivity and regulatory relevance, ensuring proper protection and consent management. These softwares also facilitate data minimization by identifying and removing redundant information, reducing overall data risks. Moreover, they enhance data governance by providing a single source of truth, eliminating data silos, ensuring consistency, and enabling real-time visibility, thereby improving decision-making and meeting the DPDP Act’s requirements for accountability and transparency.
However, what truly stands out to me are two key aspects. One, UDM’s ability to offer a pathway to achieving data sovereignty. By centralizing control over unstructured data, organizations can more effectively implement data localization requirements, ensuring that sensitive data remains within national borders. This is particularly crucial for industries like healthcare and BFSI, where data sovereignty is not just a regulatory mandate but a trust imperative. Unified data management platforms enable these organizations to balance compliance with operational efficiency, ensuring that they can meet the demands of data sovereignty without sacrificing agility or innovation. And second, UDM can streamline the process of responding to data subject access requests (DSARs), a key obligation under the DPDP. By providing a centralized repository of unstructured data, organizations can efficiently locate and retrieve relevant information, reducing the time and effort required to fulfill DSARs.
The DPDP Act is a watershed moment for India’s data landscape. It signifies a strong commitment to protecting individuals’ rights while fostering a data-driven economy. And the true value of unified unstructured data management in DPDP compliance, lies in its dual capacity to drive regulatory alignment and business transformation. It is not merely a tool for avoiding penalties or ensuring legal conformity; it is a strategic enabler that allows organizations to unlock new opportunities, mitigate risks, and, most importantly, build trust with customers – becoming truly trusted custodians of data.
Commercial benefits by being compliant stewards is imperative but to uphold the health and national security of our Indian Citizens is a patriotic duty of every organization.