Data Privacy Challenges in Telematics for E-commerce

Data privacy challenges in telematics for e-commerce have long been an ongoing issue. It refers to the use of technology for monitoring and collecting data related to products, vehicles, and their movements.

Telematics does offer several benefits when it comes to reducing costs, increasing operational efficiency, and even improving customer service in e-commerce. However, there are some data privacy challenges you’ll have to face.

Let’s dive deeper into these data privacy challenges and see the methods you can use to overcome them. To every problem, there’s always a solution.

Fleet telematics 


Fleet telematics are great for helping you track your vehicle location and managing and automating maintenance tasks. Telematics collects data directly from an asset to provide detailed information regarding driving behavior, fuel consumption, and troubleshooting issues.

The Telematics system will use a combination of physical plug-in devices and software that will record operational data from the engine control module (ECM). The data is transmitted to the management software through a satellite or wireless network. After this, fleets can analyze all of the recorded data from their smart devices.

Common data privacy challenges faced regarding fleet telematics are:

  • Real-time location tracking: Fleet telematics work with real-time vehicle tracking, which easily raises concerns among drivers regarding their privacy. It’s important to let drivers know which data is being collected and to avoid granting unauthorized access to the wrong hands.
  • Data security: Telematics devices in vehicles are suspected of unauthorized access and hacking. It’s important to implement security measures for these devices and prevent data breaches from unauthorized access. Only people that are authorized to collect this type of data should be given access.
  • Employee consent and monitoring policies: It’s important to obtain clear consent from drivers regarding data collection. Monitoring and employee consent policies should show how data is going to be collected and monitored throughout the process.
  • Data accuracy and misusage: Inaccurate data usage and misinterpretation of telematics information can lead to many incorrect conclusions. Data accuracy is an important part of real-time vehicle tracking, and it’s important that drivers or even internal team members are not causing any manipulations when giving you the data.

Data governance is not a one-time undertaking strategy, but is a continuous practice that needs to be implemented regularly. It becomes part of your organization’s culture and needs to be updated when required.

Battery intelligence in electric vehicles 


Battery intelligence is great for fleets since many of them are turning into Electric Vehicles (EV). To prolong the life of the battery and avoid having to waste a bunch of money ordering parts for your EV, battery intelligence software monitors and analyzes battery usage data. Protecting customer privacy requires you to carefully handle data and avoid exposing user identities.

Battery intelligence software collects information that is connected with the longevity of the battery. It measures the battery health status, temperature, charging status, and informs you when the battery needs to be serviced.

Extreme temperatures like when environments are too hot or cold can significantly impact the life of the battery. Modern EVs have come a long way and have a life expectancy of 15-20 years, but extreme conditions can significantly reduce this.

Let’s not forget that using the right battery intelligence software is important too, since you don’t want to expose sensitive battery data. For instance, the Elysia battery intelligence software keeps important battery data in the cloud platform. The system prevents unauthorized access and exposure of sensitive battery data.

Moreover, if you integrate battery intelligence software with third-party services, you need to pay even more attention to your data sharing and privacy regulations, since the risk of data leaks or misuse increases.

Enterprise Resource Planning (ERP) integrated e-commerce

ERP-integrated e-commerce is becoming a popular B2B solution for organizations. The ERP makes sure that different business management apps work together. When it comes to overcoming data privacy challenges, ERP ecommerce integration will promote a much better flow of data synchronization between the two systems, improving data accuracy and minimizing errors during the process.

Integrating ERP for ecommerce sites works by connecting an ERP system with an e-commerce platform, allowing real-time data syncs, and centralized management of inventory, orders, and customer data.

Common data privacy challenges during ERP and e-commerce system integration are usually:

  • Inaccuracies or delays in data synchronization between e-commerce systems and ERP: For example, using outdated customer information, which can easily lead to data breaches. 
  • Compliance in cross-border transactions: As you may know, e-commerce businesses operate internationally, and transferring data across borders requires you to comply with international data protection laws and regulations. 
  • Vendor and partner access control: Might limit certain data access in order to control sensitive e-commerce data connected to the ERP system, preventing unauthorized access and potential data breaches. 

These data privacy challenges can be overcome by communicating and collaborating with stakeholders to make sure that data handling practices are effectively carried out.

Also, it’s important to regularly update your data privacy policies. After all, it’s important to carry these rules out since data breaches have cost e-commerce companies more than $48 billion in revenue! 

Compliance with international data privacy regulators

privacy policy

If you want to manage your fleet as efficiently as possible, you need to collect and analyze vehicle data. As we said before, the data needs to be precise and exact. Its quality isn’t the only part you should look at, but also to comply with international data privacy regulators like The General Data Protection Regulation (GDPR) and California Privacy Rights Act (CPRA).

When dealing with telematics data, the GDPR is inevitable. However, keep in mind that it accounts for all businesses that take part in EU countries. If you live in the United States, but do business in European countries you’d still need to comply with the GDPR.

Laws regarding the GDPR and CPRA are always getting updated, so it’s important to read more about them, or even hire someone who can do so.

If you want to have a clearer idea of what the GDPR and CPRA are concerned about, here are some common questions you need to ask yourself when storing telematics data for e-commerce:

  • Are you processing personal data following the data privacy regulators? 
  • What kind of data are you storing? 
  • Can the personal data you are collecting be deleted, or updated? 
  • Is the data collected available to third parties? 
  • Can drivers protect their personal data when they use the vehicle privately? 
  • Can drivers control data storage durations? 
  • How long and where is driver data stored? 

After answering these questions, you’ll get a better picture of what to expect. Of course, if you find it challenging, you can always hire an expert to advise you on the next steps you should take. However, if you’re looking to save, it’s best to stay updated on your own.

Data transmission across networks 

Data privacy is becoming a common issue when transmitted across networks during real-time vehicle tracking. Many organizations are overcoming this challenge by transmitting this data across private VPN networks.

This is much more secure than traditional methods of sending data across public networks, where any anonymous user can take hold of your driving data. However, let’s not forget that only attackers are always on the hunt and even with a private VPN network, they may try and find methods to hack into your information.

Even though VPNs can safeguard the data that is transmitted across networks, keep in mind that it doesn’t protect you from malware or viruses. 

Cyber essential certifications 

When it comes to data protection, telematics providers holding cyber Essential Plus certification can be trusted much easier than those that don’t. Data stored in their fleet management system is easily protected outside borders, and data security is carried out 24/7.

Cyber Essentials Certification is a government-backed scheme for helping businesses protect their data against cyber attacks. This certification makes sure that businesses that possess it have technical controls in boundary firewalls, secure configuration, access control, malware protection, and patch management.

Moreover, let’s not forget that telematics providers with these certifications offer server back-up daily, and the system is constantly monitored by the support staff.

The future of data privacy challenges in telematics for e-commerce

While telematics captures lots of data, the potential it has is still not as much as needed. Telematics providers are continuously finding ways to streamline data capturing in vehicles, including those through connected vehicle APIs.

Telematics systems are taking advantage of AI to provide more accurate predictive analytics based on the historical data gathered from vehicles. Video telematics are also helping fleets improve safety measures and reduce potential liability in case an accident occurs in case it wasn’t the fleet driver’s fault.

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