How to Develop Digital Products Legally?

The advent of the digital age has drastically changed product and service development. Any company that uses digital technologies to innovate must remain responsive to changing customer preferences and harness the power of data-driven advances. In doing so, they face significant challenges in complying with regulations, as the misuse of personal data, as recognized by the European Union’s General Data Protection Regulation (GDPR), results in prohibitive fines, loss of public reputation, and ultimately competitiveness. The GDPR applies to all organizations processing personal data of EU residents, regardless of location. Companies offering services to or monitoring EU users must comply, ensuring data protection, privacy rights, and transparency. This paper provides an overview of the fundamental management challenges under the GDPR, as additional personal data is processed. An expert survey shows that data managers view renewed consent as comparatively more compliant with data protection regulations than legitimate interest. Based on the legal requirements, our decision trees guide the decision-making process on the legal basis for which personal data can be used. By proactively adopting responsible data practices, companies can create innovative and user-centric digital products that not only meet users’ needs, but also ensure that the company is not legally liable for any wrongdoing. To make the leap from simply trying to comply with laws and regulations to effectively managing ongoing data access, we propose a proactive data management that focuses on building trust and a positive corporate image.