Building a Privacy-Aware Customer Data Foundation: A Governance-First Approach to Digital Service Systems
DOI:
https://doi.org/10.63282/3050-922X.IJERET-V1I4P107Keywords:
Data Governance, Data Privacy, CCPA, CPRA, HIPAA, Master Data Management, Data Quality Management, Customer Data Platforms, Conversational Systems, Intent Detection, Digital Service SystemsAbstract
The increasing adoption of digital service systems has transformed how organizations collect, process, and utilizes customer data to support personalized services, intelligent analytics, and enterprise decision-making. The digital interconnected ecosystems have, however, also presented serious challenges in the areas of data privacy, cyber security, governance and regulatory compliance. This study suggests a governance-first approach to creating a customer data foundation for use in secure and compliant digital service operations that is privacy-aware. The proposed architecture integrates customer identity management, governance automation, consent tracking, metadata management, secure data sharing, and privacy-preserving analytics within a unified enterprise framework. The research highlights the need to embed privacy by design considerations, privacy policy enforcement mechanisms, and automated privacy compliance validation into the customer data lifecycle in order to enhance transparency, accountability and organization trust. The study also explores the importance of governance structures, data stewardship, AI-powered governance automation, and risk management practices for ensuring privacy-conscious environments in enterprises. Results from a large-scale synthetic Customer360 dataset have shown significant improvements in governance efficiency, data processing performance, automated compliance and privacy protection over traditional customer data platforms. The findings indicated that the data processing time was reduced, the policy enforcement accuracy was high, and there was not much of a latency increase due to privacy controls, thus proving that governance-first architectures for real-time digital services are practically feasible. As a whole, the proposed framework helps advance research in digital governance by offering a scalable and secure model that upholds data-driven innovation while ensuring ethical data governance, regulatory compliance, and customer privacy protection.
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