Big Data and personal information as the new currency
Marketing techniques developed over the years have highlighted the importance of strategies focused on the customers. The collection of personal information is a valuable economical resource for any organisation. In the past, companies used to collect personal information about their customers to create internal value. This information was exclusive to the organisation who initially collected it. Information technology, communication services and the Internet of Things have facilitated this collection creating what it is now referred as Big Data. From the individual’s point of view being able to communicate, exchange information and obtain services without incurring any type of upfront investment other than personal information in exchange for these services might present a highly appealing value proposition.
Accessing a wide variety of services and information relevant to each person and being able to do it for “free” has a nice ring to it. Nevertheless, what we compromise in exchange for convenience is sensitive data and security. This is the creepy factor of big data, in the article “Big data’s impact on privacy, security and consumer welfare” by Nir Kshetri, the information provided when accessing “free services” is reviewed and the dark side of big data is revealed. Some of the examples presented in the article include using Facebook Likes as a way to predict highly sensitive personal attributes such as sexual orientation, ethnicity, religious/political views, personality traits, intelligence, degree of happiness, addictive substance consumption, parental separation, age and gender. If we stop and think for a moment on the impact of this information and the fact that the vast majority of online users do not take the time to read online agreements before enrolling into the so-called “free” services. It is possible to infer that we a willingly signing a blank contract that would allow any organisation to use our personal information as they want.
To add some perspective into this matter, let’s imagine that we authorise any given organisation to take our first born child for free Wi-Fi. Sounds crazy right? This is exactly what an experiment conducted by the Cyber Security Research Institute discovered when researchers set up a Wi-Fi hotspot that provided “free” network access to users who agreed to a set of terms and conditions. These included a clause that would require the user enrolled to hand over their eldest child for the duration of eternity. If we refer back to what a simple Facebook Like can tell about your personality, would you agree on sending this data to a potential employer before heading to a job interview? Or perhaps releasing the same data to your current employer? Considering that the answer is no, then why do we agree to using these “free” services?
Enforcing online service contracts is still a bit of a grey area. Hence, handing over your first born child in exchange for Wi-Fi or releasing your personal data to potential employers might be decades away or never happen. Although big data brings a world of uncertainty and privacy issues, it also offers opportunities to explore. Being a “free” services user myself the preferred mentality that I have chosen to adopt when enrolling to a new online solution is to think that the world is definitely a better place now that we have easy access to information compared with the old days.
Big data enables improved operations, innovation, adaptability and resource optimisation. A good example explored in the article by Nir Kshetri is the big data analytics used by the yogurt company Dannon. The results allowed the organisation to forecast the demand of its retailer customers more accurately, which ultimately led to higher consumer satisfaction, less wastes and a higher profitability. Developing and marketing products based on customer requirement opens a new window of opportunity not only for corporations but for the environment as waste reduction contributes towards sustainability and eco-friendly solutions.
Big Data and personal information as the new currency is the first blog from a series of four that will explore the two sides of the same coin when it comes to big data. I would appreciate your comments and personal perception on the subject.
The following TED talk video offers a good insight on what big data represents, please refer to it if you require further information.
To facilitate the discussion of this topic, a few questions to consider are:
· How do you perceive big data?
· Do you feel comfortable sharing your information in exchange for “free” services?
· Is big data an area of equal opportunity for both organisations and individuals? Who is getting more in return?
· What would you recommend to people accessing “free” services?
