In the digital age, personal data is not only a valuable asset but also a key factor in helping businesses optimize operations and enhance customer experience. However, the collection, storage, and processing of data come with challenges related to security, privacy, and legal compliance, especially with Decree 13/2023/NĐ-CP on personal data protection.
So, what data processing methods are businesses currently applying? How can businesses both effectively utilize data and ensure compliance with legal regulations? Let’s explore in the following article!
1. Collecting Personal Data
Collecting personal data is the first and crucial step in the data processing process of businesses. Personal data can be collected through multiple methods, including:
Direct Collection
Data is collected directly from users through online registration forms, contracts, surveys, or when customers use a company’s services. For example, when a customer registers an account on an e-commerce website, they provide personal information such as name, email, address, and phone number.
Indirect Collection
Data is collected indirectly through partners, service providers, or public sources. For instance, businesses can collect customer information from online payment service providers or insurance companies.
Automatic Collection
Data is collected automatically through technologies such as cookies and user behavior analytics tools (Google Analytics, Facebook Pixel) on websites or mobile applications. These technologies gather user behavior data without direct user intervention.
Note:
The collection of personal data must be based on the data owner’s consent. Businesses must clearly inform users about the purpose of collection, processing methods, and their rights related to the data.
2. Storing Personal Data
After collection, personal data must be stored securely. The most common storage methods include:
Internal System Storage
Businesses may use server systems or data management software to store information. This allows better control over data access and protection.
Cloud Storage
Many businesses choose to store data on cloud services provided by major companies such as Amazon Web Services (AWS), Google Cloud, or Microsoft Azure. While this approach offers cost savings and flexibility, businesses must ensure compliance with security standards set by the service provider.
Physical Storage
Personal data may still be stored in physical documents, especially in sectors such as banking or insurance. However, strict protective measures must be applied to prevent data loss or leakage.
Note:
Businesses must implement security measures to protect personal data throughout storage, including data encryption and regular backups.
3. Using Personal Data
Once collected and stored, personal data is used for various purposes, including:
User Behavior Analysis
Businesses use data to analyze user behavior, optimize marketing strategies, improve customer experience, and develop relevant products/services. For example, e-commerce companies use data to personalize product recommendations.
Marketing and Advertising
Businesses can use personal data to execute online marketing campaigns via email, SMS, or advertisements on social media platforms to enhance engagement and drive revenue.
Transaction Management and Service Delivery
Personal data is used to manage transactions, verify payments, and provide customer support services.
Note:
Businesses are only allowed to use personal data within the scope agreed upon by the data owner. Any changes in the purpose of use require obtaining new consent from the data owner.
4. Sharing Personal Data
Sharing personal data with third parties is a common practice in business operations. However, it must comply with security principles and user privacy rights.
Internal Sharing
Personal data may be shared among departments within a business for management and operational purposes. However, access permissions must be clearly defined to prevent misuse.
Third-Party Sharing
Businesses may share data with partners such as delivery companies, payment service providers, or other service providers. However, they must ensure that these third parties comply with personal data protection regulations.
International Data Transfers
Transferring personal data abroad must comply with Article 25 of Decree 13/2023/NĐ-CP and other legal requirements.
5. Protecting Personal Data
Personal data protection is the most crucial aspect of the entire data processing process. Businesses are currently implementing several common security measures, including:
Data Encryption
Encryption helps protect data during storage or transmission, ensuring that only authorized individuals can access it.
Access Control
Businesses must ensure that only authorized personnel can access personal data. Access permissions should be regularly reviewed and adjusted.
Security Monitoring
Regular security audits must be conducted to identify vulnerabilities and enhance protection measures.
6. Destroying Personal Data
When personal data is no longer needed or when requested by the data owner, businesses must ensure safe and lawful data disposal.
Common Data Disposal Methods:
- Electronic Data Deletion: Data must be permanently erased from the system and rendered unrecoverable.
- Paper Document Destruction: Physical documents containing personal data should be safely destroyed using methods such as shredding or incineration.
Conclusion
Personal data processing in businesses is not only a legal obligation but also a critical factor in building customer trust and corporate reputation. Data processing methods must be carried out carefully and transparently while ensuring compliance with security and privacy regulations. Only by properly protecting and processing personal data can businesses establish long-term, sustainable relationships with customers.
The above article provides insights into Personal Data Processing Methods adopted by businesses. If you have any questions regarding this topic, please contact Luat Ky Vong Viet for the most accurate legal consultation and support.
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