The Business Case for Dynamic Authorization


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Access management is seen by many business leaders as primarily a means of protecting and securing computer systems. Important, but of secondary importance to the business. But as computer systems come to intermediate almost every interaction the business has with employees, contractors, partners, and customers, dynamic authorization should be seen as a strategic business enabler. Investing in a robust, flexible, and pervasive authorization infrastructure can drive revenue growth, operational efficiency, regulatory compliance, and competitive differentiation.

Reducing Operational Costs

Manually managing access using rigid, static authorization models like ACLs and groups is labor-intensive and prone to errors. Organizations that rely on static methods often have employees who are dedicated to managing permissions for employees and others. These employees also perform manual audits, track down problems, and manage groups. As the organization grows, these processes become more complex scaling superlinearly due to interactions in the system.

Dynamic authorization automates many of these access control decisions, reducing the need for manual intervention. This has several benefits:

  • Lower administrative overhead eliminating the need for manually managing permissions and groups reduces administrative costs.
  • Reduced risk of over-permissioning accounts with permissions they no longer need are the source of many costly security breaches.
  • Reduced security insurance premiums many organizations buy costly insurance for security breaches and ransomware. Better authorization practices and systems can reduce premiums.
  • Fewer support tickets for access problems tickets that require IT to drop what they’re doing to sort out a permissioning problem take these critical employees away from work that advances the organization’s products and services.
  • Improved onboarding and offboarding efficiency dynamic authorization can ensure new employees or contractors have all the access they need on day one and lose it as soon as they leave.

Improved operational efficiency gives the organization the freedom to explore and grow instead of constantly battling access management problems.

Enabling Business Agility and Innovation

As more and more business is conducted online, organizations are finding that it’s vital to quickly react to changing business needs. Whether an organization is launching a new product, expanding into new markets, reacting to new regulatory requirements, or enabling new partnerships, being able to flexibly adapt to emerging requirements and support innovation is table stakes for successful organizations.

As we’ve discussed, static authorization methods require manual changes to lists and groups to increase or decrease access to systems. For example, a financial services firm that is employing external auditors for compliance reviews must grant access for the duration of the engagement. A dynamic authorization system makes this as easy as a policy change. Even that might not be required if authorization policies have been written so as to anticipate this kind of need.

New products often require custom code to support authorization requirements for customers and administrators. A workforce management service provider launching a new employee onboarding product must ensure that customers can properly authorize varying access levels for their employees to administer and manage the service securely. A dynamic authorization system can be integrated with the new product, allowing developers to build in the right authorization controls without writing custom authorization code.

Improving Customer Experience

The compelling features of modern SaaS applications, marketplaces, and collaborative services depend on carefully controlling access. In these platforms, dynamic authorization isn’t just for security; it also enhances the user experience and provides enhanced revenue opportunities.

For example, platforms like Google Docs, Dropbox, and SmugMug all allow their customers to share content with specific people or groups. Dynamic authorization makes this functionality possible.

Or consider multi-tenant SaaS companies like Workday or Salesforce. Fine-grained authorization allows these companies to isolate customer data while simultaneously allowing granular access within each tenant that follows complex rules. These companies can’t build a single access management system because each tenant requires different access controls depending on their organization, regulatory environment, and internal access policies. Dynamic authorization lets them more easily meet customer needs.

Finally, many online businesses offer different features to different users depending on subscription levels. Dynamic authorization policies allow this to be done without custom code and give the business flexibility to add or modify subscription levels and features without changing the underlying code.

Strengthening Security and Compliance

Using dynamic authorization for improved security and regulatory compliance provides several business advantages. Industries like finance, healthcare, and government are heavily regulated. The regulations require organizations to enforce least privilege access, ensure auditability, and dynamically adjust access based on employee roles and changing risk conditions. Organizational benefits from using dynamic authorization include decreased compliance risk, better employee experience, fewer workarounds that introduce security problems, and reduced overall cost.

Competitive Differentiation

Using dynamic authorization inside products gives organizations a competitive edge by offering a more secure, flexible, and user-friendly product.

For example, a B2B SaaS company with a product built with fine-grained access control can better attract large enterprise customers who demand flexible, yet secure features. A financial services company that lets customers dynamically set transaction limits based on varying risk signals allows them to reduce fraud while maintaining a rich user experience. A collaboration tool that offers flexible, secure content sharing beats out competitors who use more rigid, static sharing models.

Organizations can more easily respond to competitor product changes when access management is as simple as a policy change. And dynamic authorization provides these benefits without developers having to write custom code.

A Business Necessity

The preceding sections offer multiple examples of how dynamic authorization goes well beyond enhanced IT security. Organizations that embrace dynamic authorization gain enhanced operational efficiency through automation, increased business agility to more easily pursue new opportunities, stronger security and compliance with less overhead, and better customer experiences that drive customer engagement and revenue.

In the era of multi-tenant, AI-enhanced, SaaS applications, dynamic authorization is essential for organizations to securely scale and effectively compete. Failing to adopt better access management technologies and mechanisms puts organizations at risk of losing their competitive advantage.


Photo Credit: Octopus busy approving things from DALL-E (public domain) Prompt: Draw a picture of an octopus wearing an officials hat with each arm holding stamps that say either "allow" or "deny". The octopus is stamping multiple sheets of paper on a desk.


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Last modified: Tue Feb 25 11:08:29 2025.