IT Teams Encounter Six Significant Obstacles in Overseeing Customer Identity Information
In today's digital-first world, businesses are grappling with the complexities of managing customer identities effectively. The traditional Identity and Access Management (IAM) systems are no longer sufficient to meet the challenges posed by the vast scale and unique requirements of managing customer identities.
A shift in perspective is underway, with Chief Information Officers (CIOs) prioritizing the management of customer identity data as a key growth driver. This transformation is driven by the need for digital innovation to cater to a mobile and digitally savvy consumer base.
The backbone of digital business lies in Web and mobile APIs, but these are often a struggle for legacy IAM solutions when it comes to managing consumer data. A more cost-effective and efficient solution for large-scale enterprises is implementing a specialised, cloud-based system designed specifically to manage customer identities.
Balancing security and user experience is a critical challenge in CIAM. Overly complex security measures can frustrate customers, leading to abandonment or insecure workarounds. Solutions include using passwordless login, adaptive multi-factor authentication (MFA), and streamlined onboarding processes to reduce friction while maintaining strong protections.
Cybercriminals exploit stolen credentials via phishing and credential stuffing, and shadow IT or unsanctioned SaaS create hidden vulnerabilities. To secure not only human users but also machine-to-machine identities involved in APIs or automation, solutions employ tokenization, scoped access, delegation, and monitoring machine identities with clear policies.
Improper access settings such as excessive permissions, unclear roles, and orphaned accounts increase risks of unauthorized access. This can be addressed through Role-Based Access Control (RBAC), enforcing least privilege principles, regular access reviews, and automating provisioning/deprovisioning tied to HR and IT systems to ensure accurate identity lifecycle management.
Regulations like GDPR and HIPAA require strict handling of identity data. CIAM systems must support automated compliance through audit trails, policy enforcement, and integrating with regulatory frameworks to avoid penalties, especially in cloud environments.
For organizations running on-premises or hybrid systems, integrating modern CIAM tools with legacy infrastructure is a challenge. Solutions include creating centralized identity management, bridges for legacy apps, and consistent IAM policies across all environments.
In summary, effective CIAM in digital businesses requires a holistic approach combining intelligent authentication, lifecycle automation, least privilege access, threat mitigation, and regulatory adherence to provide secure yet seamless customer experiences.
[1] Gartner. (2021). Market Guide for Customer Identity and Access Management. [Online] Available at: https://www.gartner.com/en/research/market/customer-identity-and-access-management
[2] Forrester. (2020). The Forrester Wave™: Identity as a Service for Customer Authentication, Q4 2020. [Online] Available at: https://www.forrester.com/report/The+Forrester+Wave™+Identity+as+a+Service+for+Customer+Authentication+Q4+2020/-/E-RES151784
[3] Okta. (2021). The State of Customer Identity Report 2021. [Online] Available at: https://www.okta.com/resources/okta-state-of-customer-identity-report-2021/
[4] Ping Identity. (2021). Ping Identity 2021 Customer Identity Report. [Online] Available at: https://www.pingidentity.com/en/resources/ping-identity-2021-customer-identity-report.html
[5] Auth0. (2021). 2021 Global Authentication and Authorization Trends Report. [Online] Available at: https://auth0.com/resources/reports/2021-global-authentication-and-authorization-trends-report
- To address the evolving needs of businesses in the digital era, Chief Information Officers (CIOs) are considering finance investments in specialized, cloud-based Customer Identity and Access Management (CIAM) systems, as these solutions offer cost-effectiveness and efficiency for managing customer identities.
- As technology advances and businesses become more reliant on APIs, attention has been drawn to the need for streamlined authentication methods and effective lifecycle automation, as these factors prove crucial to providing secure yet seamless customer experiences, ensuring regulatory compliance, and mitigating various cyber threats.
