Tag: Digitalization

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Digital identity is the key to successful digitalization

The digitalization of processes is a challenging task. The topic of security in the digital space is primarily an important criterion for the further development of one’s own digital transformation. The protection and management of digital identities is therefore a central key function.

At the heart of the new, mostly digital business models lies the customer or his digital identity and direct contact with him. A digital identity cannot just be a customer, a partner or an employee. In Industry 4.0, too, the direct involvement of the customer and his devices takes centre stage in the business process. As a result, a machine or service also has a digital identity.

Many companies, especially medium-sized ones, continue to focus on the protection of classic end-points. The protection of the digital identities of users (such as customers, partners and employees) or “things” (such as machines and applications) is still neglected. The secure digital identity for man and machine is a key prerequisite for a complete digital transformation and to tap new business areas.

Digital Identity as a central asset for a fully digitalized value chain

In Technical Report No. 114 of the Hasso Plattner Institute for Software Systems Engineering at the University of Potsdam, digital identities are described as follows: “Digital identity is a collection of electronic data to characterize an internet user with a physical identity. Data belonging to a digital identity are e.g. user name, e-mail address, home address, account number, password etc. and are referred to as attributes. A physical user can exist on the Internet with many different digital identities (different username, different e-mail, etc.)”.

Digital identities are required so that users or machines can access services. This requires that persons or objects uniquely identify themselves.While in the real world this can be done via an ID document for example, in the virtual world it is much more difficult to ensure that the digital identity belongs to the corresponding physical user.

Secure authentication of digital identities through Two-Factor-Authentication

So how can the misuse of digital identities be prevented?

Authentication can be performed based on knowledge, ownership or biometrics. The former represents the classic known username/password query. Since both, companies and consumers, are becoming more and more afraid of identity theft and too simple or identical passwords often favour this, the latter two methods are becoming more and more established. In biometric queries, fingerprint, face or iris in the eyes of real people are scanned and compared with the stored identity. Since these are unique to each person and very difficult to forge, this type of authentication is the safest.

For convenience purposes, it is recommended to use an adaptive 2FA. The additional factor is only queried if particularly sensitive data is accessed or if access appears unusual, for example outside normal times or from an unusual location.

Digital identities require end-to-end identity management

Digital identity is a key element of the new technology trends and is significantly involved in the digitalization of the value chain. By placing identities at the heart of your business, you can acquire new customer segments and make existing processes within a company more efficient.

As a result, Customer Identity and Access Management (CIAM) is becoming increasingly significant. With a modern CIAM solution, the aspects of data security, user comfort and knowledge of the customer and his behaviour can be combined on one platform.

A customer identity and access management system can form the basis for customer-oriented digitalization efforts. It enables end-to-end identity management, helping to manage millions of users.

These aspects can thus be controlled centrally:

  • Data security through secure authentication procedures (also passwordless)
  • Simple and convenient onboarding into all channels and services (e.g. through social login)
  • GDPR-compliant consent management
  • Personalized marketing communications in real time

In a nutshell: A good CIAM solution brings IT, marketing and sales together and contributes significantly to the success of the company. The future also presents new challenges for medium-sized businesses and the complexity of the data is increasing. Targeted identity management is therefore an essential requirement for any organization that has a digital presence in any form.

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Know your customer and grow your business

Customer Identity Management
Only those who know their customers, can grow their business
Identity Management is indispensable in E-business. Dealers and service providers recognize customers and make targeted offers. Modern recognition systems do away with the age-old user log-in.
Article by Sadrick Widmann IT-Magazine

E-BUSINESS AND digitalization lead to an erosion of customer or user identity. The customers no longer contact companies in person, and a face-to-face conversation is missing. However, customer feedback is still of utmost importance and identity recognition is therefore indispensable. Only those who know their customers can grow their business.

One who has access to information related to past transactions in real-time, can address the needs of customers in a personalized manner. The ability to quickly analyze data and translate it into appropriate action points gives companies the necessary competitive edge.

A social media account is used for registration

Identity recognition is required, for example, in portals for employees, customers, suppliers and partner portals. However, traditional access control via user logins is outdated because it no longer meets today’s demands on security and user experience. An alternative to this is provided by cloud-based identity management solutions such as Cidaas. Solutions of this kind provide comprehensive security across all digital end-devices. Users will also have easy access to their portals, web shops or mobile apps. The registration can be made using a social media account such as Amazon, Facebook, Google, LinkedIn, Microsoft Office 365, Paypal, Xing or Yahoo.

Additional security is provided by multi-factor identification via a second channel. The users confirm their identity with a one-time code, which they receive, for example, via an instant message or a call. Face recognition, voice or the fingerprint recognition can also be used for identity confirmation. In the event of suspicious activities, login attempts are blocked, and both users and companies receive alert messages. User identification systems can be integrated into existing IT systems via secure interfaces. The access rights can be regulated by the companies in detail. Modern solutions also support programming interfaces to the company’s own apps.

Additional services increase customer loyalty

Customer identity management helps to build secure and personalized customer contacts. Based on this, companies could offer additional services on their products and manage customers, dealers or suppliers more reliably and faster. The service package of the cloud solution from WidasConcepts includes ergonomic logins as well as unique user identification. Companies could use it to evaluate customer behavior and data in web shops, apps or other sales channels in detail.

Users actively decide which information they would want to reveal about themselves. Each detail, for example, gives a retailer the opportunity to create offers specially tailored to the customer. He can also derive measures to positively influence customer loyalty. Each signed up user is supported personally and across channels. When satisfied customers become loyal business partners, they are usually prepared to share further details about themselves – because they realize the advantage of having a personalized business engagement.

Digital devices now represent the User

Considering the development of Technology, it is evident, that in the future, not only the Customer but also all his devices that represent him will have to be recognized. A printer that reorders its own ink and a refrigerator that calls the delivery service when its content runs out will soon become a reality. In such scenarios, it is important to associate the individual devices to the respective customers and define their permissions in detail. The fridge should eventually buy the right foods and nothing that the customer does not want. It will not be long before companies realize the benefits of Customer Identity Management and implement appropriate solutions.

The author, Sadrick Widmann, is the Product Manager of the cloud-based Identity Management System Cidaas at WidasConcepts GmbH, founded in 1997.