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What Are the 5 Key Components of IAM In the Digital Transformation Process?

 Nowadays, there are great access and security challenges for organizations operating in an increasingly digital world, where the mobile employees increase, business networks become more complex, the data protection requirements are stricter, and the need for comprehensive access governance policies and procedures is more than great.

All that means that the companies need to ensure that users are granted the appropriate permissions within business applications so that they can perform the function of their role – the right people must have the right access to the right systems in a heterogeneous technology environment. And at the same time, corporations also should make sure that their access governance processes adhere to internal policies and external compliance requirements.

Martin Kuppinger from Kuppingercole says,“Identity and access management is increasingly about managing identities of everyone and everything in a connected world, and supporting organisations in their governance, risk and compliance (GRC) initiatives. So, considering how important IAM is for protecting business assets and revenues, here we mark five key components of IAM in digital transformation process.

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  1. Authentication method: This is the process of an administrator granting rights and the process of checking user account permissions for access to resources are both referred to as authorization. The privileges and preferences granted for the authorized account depend on the user’s permissions, which are either stored locally or on the authentication server. The settings defined for all these environment variables are set by an administrator. Must include ease of use with single sign on between different sites, allow for step-up authentication for high risk transactions, and strong passwords are advisable.
  1. Identity management:  Identity management (ID management) is a broad administrative area that deals with identifying individuals in a system (such as a country, a network, or an enterprise) and controlling their access to resources within that system by associating user rights and restrictions with the established identity. At the most basic level, identity management involves defining what users can do on the network with specific devices and under what circumstances. IM also ensure that internal users are managed through their lifecycle with good and simple joiner, mover and leaver processes.


  1. Digital rights management: Digital Restrictions Management refer to access control technologies that are used to restrict usage of proprietary hardware and copyrighted works. These technologies control the use, modification, and distribution of copyrighted works (such as software and multimedia content), as well as systems within devices that enforce these policies. It’s important to make sure that digital content (books, video, music, games, etc.) is protected from piracy and theft, as well.
  1. Privileged account management: Privileged account management can be defined as managing and auditing account and data access by privileged users. Trusted access needs to be controlled and monitored and that’s what privileged account management is for. Companies need to maintain the ability to revoke privilege at any time, so most account privileges should either automatically sunset or else be subject to periodic review. The best practice is to limit privileges to those who actively need them.
  1. Compliance: Identity management regulations are widespread and overlapping yet an effective compliance program may address all regulatory requirements centrally while leveraging internal and external resources to address identity risks effectively, avoid duplication of efforts, reduce compliance costs, and ensure responsibility and oversight. For example, various regulations are designed to address security and privacy of consumer personal information, while others address customer identification, consumer report management, as well as account monitoring and suspicious event reporting.

Solutions for strong identity and access management are critical to the success of a digital business. That is why IAM is the most significant control tool in protecting information, revenue and business delivery. It is also a key component of digital success when relying on a digital profile or identity to transact, it is an area that often gets overlooked until late in many digital transformation programmes.

Author: Dr. Ina Nikolova