The key to data security and privacy compliance for manufacturing

In the digital age, data has become a vital asset for the manufacturing sector. Since Covid, more than two-thirds of manufacturers have embarked on digital transformation initiatives, driving further data generation and processing.

While many of these efforts focus on enhancing operational efficiencies through plant automation, manufacturers have also prioritized customer service and direct-to-consumer offerings more since the pandemic. This has resulted in a significant increase in the collection, processing and retention of personal data, alongside the intellectual property that is at the core of their business.

In this article, we will examine the implications of rapid data growth in the manufacturing sector, focusing on data security and privacy compliance. We will also highlight the importance of effective data discovery and data management processes for the industry.

Manufacturing’s data explosion

In recent years, the manufacturing sector has witnessed an unprecedented explosion of data, driven by the relentless pace of digital transformation and the burgeoning accumulation of customer data. This data deluge is not merely a byproduct of modern industry but is powering the next wave of manufacturing innovation and defining overall business needs and obligations for the sector.

Implementing automation, Internet of Things (IoT), artificial intelligence and machine learning (AI/ML) and cloud computing, manufacturers have benefited from huge gains in productivity and operational efficiency. The vast data streams generated by these technologies further drive real-time decision making and support agile just-in-time production methods and predictive maintenance.

Parallel to these technological advancements, the role of customer data to manufacturers has grown significantly. In an era where customization and consumer satisfaction are paramount, manufacturers harness this data to tailor experiences, anticipate needs and forge stronger connections with their market. This wealth of information, ranging from purchasing patterns to customer and consumer feedback, empowers manufacturers to not only enhance their product offerings but also further streamline their supply chains and optimize, and potentially further monetize, their service models.

The backbone of supply chain efficiency

Manufacturing is at the heart of the product supply chain, ensuring that goods are created efficiently and meet the quality standards demanded by customers. In today’s global economy, manufacturing units are often spread across multiple countries, making the coordination of these activities crucial for the smooth operation of the supply chain.

However, their pivotal role makes them a key target for nefarious actors looking to cause disruption and economic harm.

Data security in manufacturing

Alongside the data explosion within the industry and their crucial position in the global supply chain, manufacturing has become the most targeted sector by cybercriminals in recent years. In 2024, manufacturing accounted for 25.7% of cyber-attacks by industry sector.

There are several reasons for this, including:

• Large attack surface of large manufacturing operations organizations, comprising a complex and interconnected web of highly distributed systems
• Continued reliance on legacy systems that contain exploitable, unpatched security vulnerabilities
• Widespread adoption of Internet of Things (IoT) devices, often supporting plant automation, but that lack basic security controls of standard computing systems
• Cybercrime pays in manufacturing – the sector is the most likely to pay ransoms in an attempt to recover data following a ransomware attack

In addition, the sector’s pivotal role in the production and delivery of essential goods and services makes it an attractive target to cybercriminals and nation-state actors seeking to cause disruption in service of social and geopolitical aims.

As a result, data security is a critical concern for the manufacturing sector. Effective data management can help manufacturers safeguard their data assets against cyber-threats. Implementing robust data security measures, including regular data scans, backups, access controls, encryption and employee training, can significantly enhance data security.

Privacy Compliance for the industry

As well as data security, privacy compliance is a growing concern for the manufacturing sector.

Manufacturers are increasingly using customer data to tailor products to specific market needs. By analyzing customer preferences, feedback and usage patterns, companies can innovate and improve product designs. However, this requires handling sensitive customer information, making privacy compliance a core component of manufacturing processes.

Given the multitude of data privacy laws worldwide, manufacturers must be aware of and understand how to collect, store and use personally identifiable information (PII). Compliance with data privacy regulations such as the General Data Protection Regulation (GDPR), the California Consumer Privacy Act (CCPA), Australia Privacy Act (APA) and the Personal Information Protection and Electronic Documents Act (PIPEDA) is crucial. Non-compliance can result in hefty fines and damage to a company’s reputation and pose a serious security risk to the business.

Manufacturing and the value of Data Discovery

As we’ve seen, in the rapidly evolving landscape of the manufacturing sector, data has emerged as a pivotal asset. However, while it offers huge opportunity, it also brings significant risk as a target for cybercrime and in the privacy obligations it places on manufacturing organizations.

Consequently, it’s vital that manufacturing businesses have the right data management capabilities that enable them to harness the full potential of their data, driving innovation and efficiency while enabling data security and privacy compliance. The ability to discover, manage and secure data is not just a technological advantage but a strategic imperative.

Robust data management practices are crucial for protecting sensitive information, including intellectual property and customer data. Implementing stringent security measures, access controls and privacy policies is essential to mitigate the risk of data breaches and maintain customer trust.

Data discovery and management software can play a critical role in ensuring privacy compliance with legislation such as GDPR and CCPA, and industry-specific standards like ISO27001 and SOC2. They provide a framework for tracking, reporting and managing data in accordance with legal requirements, thereby avoiding hefty fines and legal repercussions.

Enterprise Recon delivers a comprehensive solution for data discovery and data management. It offers fast, accurate discovery and remediation capabilities, powered by GLASS Technology™, ensuring maximum visibility and control over data assets. With features like on-demand scanning for compliance and enhanced visibility for data management, Enterprise Recon is fully customizable to meet the unique needs of the manufacturing industry.

The integration of data discovery and data management capabilities is not just a technological upgrade but a strategic necessity for the manufacturing sector. It is the key to unlocking operational efficiencies, safeguarding sensitive information and ensuring regulatory compliance. With solutions like Enterprise Recon by Ground Labs, manufacturers are well-equipped to navigate the complexities of the digital era, turning data into a competitive advantage.

To find out how Enterprise Recon can support your business, arrange a complimentary data workshop or book a call with one of our experts today.