Privacy Software: A Comparison of the Best Tools for Compliance with GDPR

Data Protection Software Definition: What is GDPR Software?

The General Data Protection Regulation (GDPR) standardizes the legal requirements for securing and correctly handling personal information across Europe. Companies are required to comply with a lot of guidelines and implement corresponding measures in compliance with the law.

These to-dos are generally encapsulated in so-called data protection management. In this process, those responsible define structured procedures to systematically organize, optimize, and long-term control both the legal and the individual operational requirements of data protection.

A data protection software or data protection management software is usually used for this purpose. The core goal of such solutions is to provide companies with comprehensive support in ensuring compliance with the GDPR in all relevant areas.

Why should companies use data protection management software?

Whether digital or online or analog – personal data is processed again and again in central business processes. In largely analog times, the majority of data protection consisted of keeping papers with sensitive information under lock and key for the long term. This is still absolutely relevant to data protection today. However, in the increasingly online and digitally defined business landscape, data and thus data protection now play a very different, much more dominant role. The EU has responded to this development with the GDPR.

Never before have so many personal details been requested, stored, and used for different purposes. More and more business operations are literally data-driven. It is hardly possible to do anything without appropriate information. Such digital systems need special and very comprehensive data protection measures that take all areas into account. This includes digital storage facilities, online orders, communication via e-mail, messenger, etc., employee management, payroll accounting, invoicing, supplies, and much more. Almost everywhere, critical information about individuals and/or sensitive business processes is generated, which must be secured and generally used legally correctly.

If this is not done, enormous penalties threaten. For example, if there is a data theft and it is recognized in its pursuit that a company has not strictly ensured the security of the information according to the GDPR, penalties of up to several million can follow, depending on the severity of the incident. In addition, specialized lawyers continuously search the net to find minor data protection violations. This can lead to severe warnings. It is not uncommon for such forces to be employed by companies against their biggest competitors in order to trip them up.

With the help of a suitably coordinated and correctly used GDPR management software, companies can very efficiently take into account all data protection must-haves. Relevant penalties are then almost excluded.

Furthermore, comprehensive data protection or good data protection management can bring certain marketing and quality advantages: (Potential) customers or business partners today pay very close attention to their data rights being respected. If this is the case, the chances of completion increase significantly. In addition, a positive public corporate image can be supported by the correct handling of information. Not to forget is that the analysis and definition of data protection-specific practices in business processes often also evaluate the processes involved as a whole. Quite frequently, risks, quality defects and potentials for process optimization (in the handling of data, but also beyond) are found.

How does software for data protection work?

Not every data protection management system software is the same. Some solutions bring not much more than a single tool for processing a specific aspect of data protection. Others, on the other hand, are designed as comprehensive GDPR tool collections.

In any case, the integrated features define how the relevant data protection program works. The following elements and corresponding functionalities are typical.

• Data Protection and Privacy: Software for data protection management usually provides companies with tools to ensure that their data is protected, private, and legally flawless. This mainly involves encryption or access controls and organizational tools for internal processing activities and contract processing at service providers used.

• Consent Management: EU GDPR software often comes with features that allow companies to place and manage specific consent requests. Here, individuals whose information is being processed should be given the opportunity to specifically consent to or object to the procedure. They should be able to individually determine what information they want to disclose and what they do not.

• Dashboards: A good software for data protection or for the GDPR provides central dashboards through which relevant functions are easily accessible. The company's most important data protection aspects should converge here. Those responsible ideally get a comprehensive overview.

• Logging: A well-designed GDPR program records a complete log of audits and changes to sensitive data. Ideally, the management team should be able to track any changes made on the platform in case of an emergency.

• Cookie Scan: Some GDPR compliance solutions offer a cookie scanner component. In this way, cookies used on the website or in the online shop can be automatically analyzed and subsequently the appropriate data protection measures can be implemented.

• Data Retrieval: GDPR management software should enable those responsible to users of websites, online shops, or apps who request their stored data, to provide them in a common format.

• Analysis, Warnings and Notifications: GDPR software often provides timely notifications about updates to the regulations and also about possible data protection violations. The respective solution analyzes the processes in detail to uncover possible errors. Warnings can be played out in real time.

• Data Usage Reports: With the corresponding functions, companies can monitor and evaluate how sensitive data is used. The reports ideally provide a complete overview. This can be very useful not only for data protection purposes, but also for the optimization of processes that are based on data.

• Incident Management: In case of a data protection violation, the software should issue automatic notifications. Ideally, corresponding events are reported to the data protection officers in the company as well as the competent authorities and, last but not least, the affected parties without delay. Strict deadlines must be adhered to here in order to avoid further criminal negative consequences.

• Internal Data Protection Policies: A sophisticated data protection management software enables those responsible to design a comprehensive data governance framework. In this, all data or the handling of it is controlled and managed by specific guidelines. The software can also help to define the roles and responsibilities of all those involved in the respective processes.

What are the advantages and disadvantages of data protection tools?

The main advantage that data protection software can provide is practically obvious: It allows a framework to be created in which (personal) information is processed securely and legally correctly. What benefits this brings in detail is summarized below.

• Improved Customer Data Protection: GDPR compliance software naturally helps companies primarily protect their customers' data better and process it in accordance with the regulations. This is achieved through access controls, identity and access management, data encryption, lawful data management, and other specific security measures.

• Improved Cyber Security: Modern data protection tools often offer special data security features, network monitoring capabilities, and high-end encryption. Even if the level of protection varies, such functions can significantly improve an organization's overall cyber security framework (not just with respect to the GDPR).

• Optimized Customer Loyalty: In the era of the practically omnipresent internet, most people are aware of typical data protection problems. If companies and websites give their users the ability to decide for themselves how their data is used and clearly signal increased data security to them, this creates trust and ultimately loyalty. Choices such as cookie banners, opt-out buttons, and consent forms are an effective way to improve brand reputation and customer retention rate.

• Increased Transparency: A software for data protection or its management provides companies with an overview and ultimately greater transparency in the collection, storage, and use of information. This not only makes it easy to understand how data is processed, but also whether it is optimally used in the respective processes.

• Identify Dangers Promptly: A data protection regulation software can include comprehensive audit functions that enable companies to quickly and safely identify any violations of the regulations. Remedial measures can be initiated immediately. The risk of penalties is thus virtually zero.

• Guided Compliance: More extensive data protection management software is sometimes delivered with a data compliance cookbook. This is a feature that guides those responsible through the data protection process and ensures that all requirements are met. This guide then includes step-by-step instructions on how to securely store and manage customer data without violating GDPR standards.

• Efficiency and Security through Automation: With a good GDPR solution, many manual processes can be automated. For example, scanning for sensitive information in non-compliant databases or sending consent forms to customers for processing their personal information. These automations significantly help to reduce the effort of data protection and increase accuracy. A lot of time is saved for the manual execution of banal tasks. In addition, the corresponding automated processes always follow the same patterns and rules. Human errors are thus excluded.

• Ongoing Compliance Monitoring: Data protection software can continuously monitor a company's compliance with the regulation in every area. This ensures that all data processing activities always meet the standards. This helps companies, among other things, to quickly identify potential data protection violations and take immediate action before they cause serious damage. Ideally, of course, errors are excluded directly.

Like any software, a data protection tool or a comprehensive software for data protection management does not always only have advantages. Although real disadvantages – at least with serious solutions that comply with European standards – should not occur. The most common problems relate more to the use of data protection software. The following fact is typical.

• Deficits in Data Protection Features: After the GDPR came into force, the market was flooded by an enormous number of new software providers for data protection and corresponding organizational processes. The above comparison of data protection software illustrates the large number of options. There is a huge range here - from tools for specific individual data protection concerns (for example, consent tools) to comprehensive suites that serve every area of data security in companies. Getting an overview here and also determining the right functional scope for your own business is an extremely difficult matter. This leads to not a few companies using a data protection solution, but unknowingly not offering sufficient security.

How to choose the right EU GDPR software?

Especially for such an important issue as legally correct, as advantageous as possible data protection in the company, those responsible should, of course, make all the more effort to get a perfectly suitable solution for their individual business context.

To ensure this, a methodical approach is advised. With the following tips, the research should go efficiently.

Identify Needs Before deciding on a comprehensive data protection management software or a partial solution, it should be clearly defined what data protection needs exist in the company. Only in this way can those responsible ensure that the solution is really up to its tasks and that no dangers threaten due to inadequate protection.

Especially the compliance with all GDPR regulations is very complex. It is important to identify the central requirements and compare them with the facilities in the company and the possibilities of the data protection programs. Those responsible must get a complete picture of what needs to be done and what the software should do.

There is usually no standard way here. However, some components are very often needed. These include data mapping functions, the ability to establish internal data protection policies, the management of processing activities and contract processing, notices and warnings, compliance checks and access management.

Ideally, if not available in the company, a external data protection professional is consulted to determine the needs.

Software Types GDPR software can either be used locally or on-premise. In this case, it is installed directly on the company's computers and servers. However, there is also the possibility of using a web-based SaaS product (Software-as-a-Service) that is hosted in the cloud.

The latter variant is generally cheaper than the former. With an On-Premise solution, however, companies are usually more flexible in terms of tool design and composition. It is more often chosen by large companies that have complex data protection conditions to serve. A SaaS, on the other hand, is usually the first choice for SMEs with "standard needs" and a smaller budget.

Quality and Availability of Support Another important aspect when choosing a data protection program is the quality of support. If it is possible to carry out a data protection software test, it is advisable to consciously test the customer service. It is also worth taking a look at the online reviews - for example in the above comparison of data protection management software.

Since data protection in the company is a sensitive issue, users of a corresponding solution should always get help quickly and competently if errors, problems, or even just standard questions arise. Many providers offer good contact options and also knowledge databases that provide immediate help with general problems or questions.

Sometimes even (online) training can be taken advantage of. They should certainly be considered as an option. Because the staff members involved should, of course, know all the more exactly what they are dealing with in the context of such important data protection software and how it works.

What does data protection software cost in comparison?

The costs for GDPR compliance software and for controlling data protection activities vary greatly. When it comes to prices, of course, it mainly depends on the data protection-specific requirements of the respective company. If a lot and perhaps even particularly critical personal information is processed, a supporting solution is always more expensive than if, for example, only sufficient cookie compliance has to be ensured.

Many simple, yet effective GDPR softwares are available free of charge. More extensive management tools, however, have to be paid for. They cost from about 50 euros for basic packages up to several thousand euros for individualized enterprise suites. The larger and more complex the solution becomes, the more likely it is that support will be needed in the implementation and training. This can result in high additional costs.

Although the relatively large initial investment often required may initially seem discouraging and perhaps even inappropriate, those responsible should remember that deficits in data protection that arise from being too thrifty can potentially backfire badly. This affects possible penalties, but also (or worst case scenario as a result) any losses in sales, customer loyalty, and general brand perception.