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ISSUE 10
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Editor’s Letter
Letter From The Editor Welcome to this issue of Big Google, meaning that data sources can legally become Data Innovation. We are seeing data chang- inaccurate. Is it even possible ing every aspect of our lives, to implement this, even at a from the ways that we inter- company the size of Google? act with companies through to how we drive our cars. One of the areas that has been the most contentious has been in data privacy and the laws surrounding it.
This issue is dedicated to discussing new elements of law in relation to Data and the use of data across the globe. We look at how open data is becoming an increasingly important part of the ways in which governments maintain the mandate to rule. Obama’s recent signing of the ‘Open Data Policy’ means that thanks to the use of data in a universal format, government departments will be more responsible to taxpayers than ever before.
We also hear from Eduardo Ustaran, Partner at Field Fisher Waterhouse, about the complexities of creating new policy around data law. In addition to these, David White, CEO & Founder at the multi-award winning import. io, talks finding data and how companies need to learn how to create full data sets rather than just relying on internal data sources. Phil Rist also looks at the art of Big Data and how companies should be utilising it in more effective ways. If you are interested in contributing to the magazine or, if you have any feedback, please get in touch.
America’s Fourth Amendment is also discussed in re- George Hill lation to data and how there Managing Editor could be a conflict of interest. Simon Barton looks into this and what the effects could be. For advertising opportunities please contact Hannah at One of the biggest decisions hsturgess@theiegroup.com in Big Data occurred in Spain where the ‘right to be forgotten’ was upheld against
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Managing Editor George Hill Assistant Editors Simon Barton Chris Towers President Josie King Art Director Gavin Bailey Advertising Hannah Sturgess
hsturgess@theiegroup.com
Contributors David White Phil Rist Eduardo Ustaran Lewis Hudson General Enquiries ghill@theiegroup.com
Contents
Contents
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David White, CEO and Founder at Import.io discusses how companies can find elusive external data Phil Rist talks us through the art of Big Data and how companies should be utilising it more effectively Is Big Data a threat to Fourth Amendment rights? Simon Barton looks at how it’s changing US Policy A historical victory for the ‘right to be forgotten’ was reached in Spain, we discuss the far reaching consequences As the open data policy comes into action, we see how this could create further government transparency in the US We ask whether it is time for data laws to be changed in response to recent developments Eduardo Ustaran talks us through the complexities of creating new policy around data law
GOT SOMETHING TO SAY?
We are always looking for new contributors, if you have an interesting idea or passion for a subject, please contact George at ghill@theiegroup.com
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Looking for Data
Looking For Data David White Founder and CEO Import.io
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Looking for Data
Big Data is one of the fastest growing industries at the moment, and businesses are all clamouring to reap the benefits it promises. According to experts, using it effectively can gain you greater transparency into how your operations actually work, better predictions, faster sales and bigger profits. Thus far, the focus in Big Data for business has largely been centered around analysis and visualization. These are two areas that businesses are comfortable with and understand since they have been practicing some form of data analysis and visualization since the popularization of Business Intelligence in the early 90s. Today’s tools simply allow them to do it faster and with more data.
or at least enough correlation that you can consistently predict patterns. If you are analysing only part of the data landscape you may be led astray by things that seem correlated but are actually being influenced by outside factors. Everyone is familiar with the classic “more ice cream sales lead to more shark attacks” argument.
Before conducting any kind of analysis, businesses need to ensure that they are collecting good data. Traditionally, companies have focused their data collection efforts on a small sampling of internal data. This is because up until recently aggregating and analyzing large amounts of data from many different sources was technically difficult and unbelievably The problem with this focus is time-consuming. And while inthat it ignores a very important ternal data is certainly an impart of the process. It is true that portant part of any good data data analysis is a key step in gen- analysis and provides an excelerating actionable insights, but lent starting point for data colthose insights are only as good lection; relying solely on internal as the data you put into them. In data has its limits. order to get usable and reliable It’s virtually impossible for you insights from data analysis you to capture data on all the need to have the full picture of factors that are affecting your business. External the relevant data landscape. For example, when analysing data, whether that be sales cycles from retail shops, on your customers, not factoring in elements like the competitors or the weather, the current economic market in generclimate or interest rates will give al should form a skewed picture of what is hap- an essential pening. The whole point of data part of your analysis is to prove causation, analysis.
Looking for Data
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The new technologies driving the Big Data revolution have given businesses the ability to process and analyze much greater volumes of both internal and external data. More data means better analysis, which in turn leads to more reliable insights.
impact of data, a large majority of sites don’t provide outsiders with programmatic access.
this, and the obvious positive
Data isn’t a luxury item anymore.
If you look at Sir Tim Berners-Lee’s original idea for the Semantic Web, programmatic access to data was always a key element of a free and open web The question businesses need society. Unfortunately, the spoto be asking is: Where can I get radic and accelerated growth of information on the web has good external data? Today, access to external data is inevitably meant that creating far greater than it has ever been coherent ontologies or indeed before. The Web represents the even publically available APIs largest source of data in the have fallen by the wayside as world, and most of it is publicly they were not cost-effective for available. The problem is that businesses to build. this data is generally stored in Instead, today’s Big Data techa format that is only readable nologies are allowing us to build by humans, meaning it is buried a Structured Web, one that is inside the HTML of the page. created by the data user as opIn order for you to use web posed to the data owner. This data for analysis or visu- revolutionary change in the alization, it needs to be way we access data has been available programmat- brought on by a number of tools, ically, usually as an my own included, that offer people the building blocks to create API. A few sites do their own API. This process used provide APIs to require a Computer Science and the active degree and several hours of Open Data work per site, but today the barmovement rier to entry for acquiring and m e a n s using this web data is signifithat more cantly lower. Most API creation are doing tools require very little techniso all the time. cal knowledge on behalf of the Many governments have already user, and if built correctly, can acknowledged the importance be both an affordable and scalof free and open data and have able solution to a problem that made it an integral part of mod- would otherwise have required ern administrations. Despite an expensive external IT project.
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Looking for Data
aggregate and manipulate data to your advantage. There are plenty of tools and training courses, many of which are free, that you can use for data collection and analysis. Data is a powerful tool; one that has already begun to level the playing field between large organizations with unlimited resources and small startups In fact, it has already started. If trying to disrupt the industry. you look at some of the biggest and most powerful companies today like Google and Amazon, they are essentially data companies. They may not have started out that way, but they now store the largest banks of information in the world. They certainly got a head start in the data collection race, but they also had to spend millions collecting and indexing that data. Both internal and external data are now an essential element of any sound business strategy. Without the insights good data brings, you will not be able to compete in tomorrow’s marketplace. Our ability to acquire and manipulate data quickly and efficiently is what will drive innovation and market dominance in the coming years.
Today, you don’t need to have those resources to
Art of Data
The Art of Big Data Phil Rist EVP, Prosper Insights & Analytics
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Art of Data
Big Data is the cure for all that ails your business; at least that’s what the medicine man with a bottle of Big Data tonic in hand would have you believe. The promises of its capabilities are everywhere you turn. But many of the articles and webinars toting Big Data potential are either supported or funded by large digital consultancies, venture-backed Big Data firms that want to go public, or software or hardware firms looking to sell you their services and training. Regardless, all the hype is resulting in a frenzy around the
powers of Big Data. If senior executives don’t take a rational, strategic approach they could risk losing millions and possibly their jobs. Three-Pronged Approach Big Data Success
To
Real business solutions from Big Data need to be more strategic and derived from analysis of several data sets to discover “unknown knowns” necessary for success in making business decisions. 1. Data Sourcing The first prong is data sourcing. Data, whether big or small, is not created equal. The Futurist says that Big Data is a big opportunity but warns that it is “useless” without the ability to “collect, analyze and execute on it.” Sourcing data should go beyond capturing Google trends or Twitter feeds. A narrow focus on digital data streams will provide a narrow view of your business. Often, such data is from an unverified source and requires assumptions for decision makers to use it. For the bigger picture, smart marketers tap into the large amounts of publicly available data provided directly from consumers, via governmentt
Art of Data
sources, survey data and transactional data (first party data). It’s about sourcing smart data that can be used to drive strategic solutions. 2. Skilled Human Resources The second prong is skilled human resources in both technology and marketing. Some companies may think that licensing software, along with a wish and a prayer, is enough to succeed, not realizing that the staff may not be equipped to actually implement it. They don’t have the knowledge or experience to source and analyze smart data and actual data scientists are hard to come by. Companies need to make sure that industry experts are involved in the process so that Big Data initiatives solve business problems and not create new ones. 3. Analytic Applications The third prong involved is embedding the human expertise and data sources into software, creating problem solving applications. These apps need to address identified core business problems and create outcomes useful for the business as a whole. Smart data analytics are designed to take the complexity and chaos of Big Data and turn it into clarity for decision makers. By combining these three components, business organizations can create a competitive, stra-
tegic advantage. We all know that timely and accurate business intelligence is key to winning competitive battles. Thousands of years before Big Data, renowned military strategist Sun Tzu understood the power of predictive analytics. In the chart below, I added my 2014 translation.
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Sun Tzu and the Art of Predictive Analytics “Now the elements of the art of war are first, measurement of space; second, estimation of quantities; third, calculations; fourth, comparisons; and fifth, chances of victory.” (Samuel Griffith’s translation of Sun Tzu’s Art of War, Chapter IV, verse 16)
tegic advantage by harnessing smart data and creating business intelligence applications that will help guide their company in battle. Don’t make the multi-million dollar mistake of building a gigantic warehouse of useless data. Focus on identifying, gathering, correlating and analyzing the right data to help your business grow.
These elements can be ap- It’s not the size of the data; it’s plied to a company’s market- the power of the algorithm. ing plan, which essentially is the ‘battle before the battle’. Bottom line Marketers can create a stra-
Art of Data
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Big Data And Its Threat To The Fourth Amendment Simon Barton Assistant Editor
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Art of Data
John Villasenor, Professor of Public Policy at UCLA, recently projected that it will be possible for governments to record and analyze everything an individual says and does in the near future. In the wake of the NSA revelations you could argue this already exists, so what does the future hold for the Fourth Amendment and how has The Obama Administration developed its data strategy through legislation?
consumer privacy, it was later developed with the Cybersecurity Framework that looks to bolster America’s technological infrastructure.
Big Data poses a considerable threat to the power of the Fourth Amendment and could precipitate a more privacy-sparce society, a topic we have looked at in this magazine on numerous occasions. The Obama administration recognises the challenges that lie ahead and coincidently proposed the Consumer Privacy Bill of Rights (CPBR) in 2012 that addressed the vulnerability of personal data in the digital world. Regarded as a ground breaking blueprint for
been significant strides towards Big Data and policing becoming compatible. Elizabeth E. Joh, Professor at UC Davis School of Law, claimed that the United States Supreme Court already considers evidence in the form of predictive analysis so long as it is not the sole justification for prosecution. As of now, the Supreme Court does not entertain data as a justifiable means to pull someone over if it is not corroborated by other forms of suspicion or evidence. The fact
The CPRB was in response to the data mining that had been occurring within large Internet companies like Google and Yahoo. Much of the worry came from targeted adverts that infringed users rights to surf the Internet without fear that they were, unintentionally, leaking private information for the The Fourth Amendment has benefit of advertisers. If an orproven to be one of the more ganisation fails to keep to these flexible parts of the constitu- guidelines, they face possible tion that has shaped American convictions from the Federal politics in recent times. As the Trade Commission. Addressing arsenal of tools at the disposal one of the most topical issues of criminals have increased and right now in the domain of data, delved into darker reaches of it shows that Obama is willing to the internet, so too has the need fight what many view as a losing for police and government of- battle against Internet powerficials to be supported by data houses like Google. through law and legislation. Arguably there have already
Art of Data
that data is being considered in this context shows that it will be an essential tool for the police in the future. If so, legislation will have to develop in line with the advancement of data mining tools, so that the public feel they are sufficiently protected from unwanted data espionage. At the inaugural Open Government Partnership meeting in September 2011, President Obama pronounced “the strongest foundation for human progress lies in open economies, open societies, and in open governments”. Since then, the president has kept to his word and looked to make proactive commitments to making these words a reality. He integrated the Open Government National Action Plan in 2011, which outlined a set of 26 commitments to increase the transparency of public information and data. The underlining aim is to put the American public at the epicentre of the decision making process. This is perhaps most visible in the We The People petition which has given the American public a platform for direct communication with the issues that concern them the most. It has been reported that 270,000 petitions have been raised concerning topical issues from gun crime to data privacy. The petition has also had a direct effect on public policy. Another idea brought to bear
was that of ‘MyData’, one of the Obama administrations most important initiatives. With accessibility at its forefront, it has given citizens the opportunity to have access to their data on-demand. These datasets, for example, include; tax records and student loan information. This is considered an essential development, as a large number of data driven transactions between individuals and companies are likely to c o n tinue for the foreseeable future. In a rec e n t W h i t e House Report called “Big Data: Seizing Opportunities, Preserving Values”, they claim that the majority of data related problems lie in the hands of ‘small data’, a term that refers to the loss of data that often leads to financial fraud and identity loss. Named ‘small data’ due to the small datasets and the comparably limited amount of people affected, ‘small data’ does not rely on the sophisticated min-
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Art of Data
ment. However, you can’t help but think that there is more than meets the eye with this issue, and that in the world we live in our personal privacy and the Fourth Amendment are at real In contrast to this, the NSA rev- risk of capitulation. elations have to some extent, shown that despite the magnitude of legislation implemented throughout the Obama Administration, deception through Big Data remains rife at the core of world politics. Although quick to reassure his public in the wake of the allegations, Barack Obama has, until recently, done very little to quell the air of suspicion that now surrounds the White House and its use of data. ing techniques needed for Big Data. According to the report, ‘small data’ trends in relation to privacy have predominately been quashed since the implementation of legislation.
If we are to believe what we read, The Obama Administration is hell-bent on guaranteeing an openness and accessibility with data that allows their public to contribute in a meaningful way to society. Since the turn of the decade legislation has been centred on insuring that data is used in an ethical manner and never to the detriment of a lawful citizen. Going forward there will have to be a real emphasis on investment so that Big Data analytics develops in a way that improves people’s lives from both a social and political perspective. On the face of it, the Obama administration has made real progress when it comes to protecting the efficacy of the Fourth Amend-
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Being Forgotten
The
Right
To
Be
Forgotten
George Hill Managing Editor
Being Forgotten
tain information and stories about them deleted from the searches about them. It will set a precedent for future rulings around similar subjects and the Spanish judges made clear that they believe that this is already within the existing EU data protection directive and that the This is because the much dis- ‘right to be forgotten’ already cussed ‘right to be forgotten’ exists. aspect of the internet, and most EU data protection is due to be notably search engines, had a discussed in relation to this exact historic court ruling that could issue and given that this historic have a major impact on international data law. Spain has seen the creation of some of the world’s most important inventions from the laryngoscope to the first pressurised space suit. One thing that we have not come to expect is Spain having a major part to play in data legislation. This may have all changed on May 13 2014.
The ruling dictated that Google must delete entries on Mario Costeja González that refer to an article about an auction notice referring to his repossessed home in 1998, which appeared on the website of a newspaper in Catalonia. The article appeared when his name was entered on the search engine and González had made the case that he should have the right to be forgotten as the article was no longer relevant. The court ruled in his favour and dictated that Google needed to delete the article from their searches. Rulings like this will pave the way for others who want to have cer-
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Being Forgotten
ruling has now set a precedent, it could have major ramifications on those discussions. The ruling essentially means that Google must act as data controller as opposed to a site that simply directs to other data.
to personal privacy, but what cost could this have for Big Data in the long term?
In reality this ruling means more than Google simply taking down two links to a site. It means that entire algorithms will need to be Many have re-written and that ranking sysclaimed a tems could be turned on their v i c t o r y heads. Given that Google is essentially the index for the internet (broadly speaking) this could confuse everything. The basis for the wider data community comes from the argument that this is a valid ruling due to the data appearing to be ‘inadequate, irrelevant or no longer relevant, or excessive’ but this could be construed in a number of ways. The broad spectrum for these justifications mean that those who do not want information to be published could easily claim to have one of these aspects and any half talented lawyer could find a way to enforce them. The likelihood is that in the future these kinds of decisions will not be court led, but instead will lay at the door of Google and other search engines. Advocates for data privacy believe this is a positive thing, but in reality this could be anything but. One of the founding parts of the internet is that it is the ultimate in free speech and platform for Big Data. One of the most popular websites in the world
Being Forgotten
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is Wikipedia, millions of people use it every day to find out basic information, but it could never be used as an accurate reference point and should never be quoted as a fountain of accurate knowledge. This is due to the open nature allowing for users to add and amend certain information.
interest, so to take it offline now is quite simply destroying free speech and the opportunity for people to find information online.
Only the most narrow minded wouldn’t argue that personal data protection isn’t important and that steps need to be taken to improve security, but this ruling is not thinking about the wider ramifications, that of an accurate internet. After all, it is not in dispute that at the time of the story about Mario Costeja González it was accurate and in the public
ruling every major newspaper, data blog and magazines like this one, have picked up on the story and published information about him. Therefore, millions, if not billions, know about it, meaning that a ruling about him being forgotten has done the exact opposite.
Viviane Reding, the EU Justice Commissioner, said ”The ruling confirms the need to bring today's data protection rules from the 'digital stone age' into today's modern computing world,”. This case leaves the door open I disagree. This ruling shows that for Google to become similar, if law makers are so far in the digpeople want to have the right ital stone age that they believe to have their information for- that an omnipresent Google gotten, it would be easy to use should be able to control what these frameworks to justify it. If is and isn’t seen on the net and a piece of metadata described that the people’s will should be something as ‘very’ or ‘partial’ what makes this decision. the ambiguity of the language The most ironic thing about the could fall into the ‘excessive’ cat- case is that before the ruling egory of the ruling. With a slight was made, there were 2 links change in policy a piece of infor- about Mario Costeja González mation could be classified as ’no on Google that referred to a longer relevant’. house repossession. After the
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Open Data Policy
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Obama’s Open Data Policy Chris Towers Big Data Leader
spirit of america / Shutterstock.com
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Open Data Policy
Big Government. Government Spending Out Of Control. Tax Payer Money Wasted. These are the kind of headlines that we are used to seeing in newspapers across the world. If there was ever a stick with which to beat governments, it has always been the amount of public money that is being spent and the amount that could be saved. This is especially true in the US, where social spending and tax increases are protested against more than in almost any other country. Both sides of the political spectrum complain about the way that money is being spent, the right claim that too much is being spent on social welfare and the left say that military spending is disproportionate. One of the key areas of agreement for both, is that the information surrounding these issues is difficult to quantify.
create open government. The idea behind the bill is simple, all government departments will be required to submit their finances in a common format. Once these have been submitted they will all be available at USASpending.gov. People, companies or organisations can then download these datasets and mine them to find anything that could be considered as excessive or suspicious.
Perhaps one of the reasons behind this is to both decrease the power of the media outlets who are likely to print spurious claims and increase the power of those who are likely to report accurately. However, as with everything, the data itself is not always what matters. The quality of the reporting is often one of the most important aspects of the story. If a government department underspends by $50M but spends Picking confusing and jumbled $450m, one media outlet could data to come to a conclusion is claim that $50m was saved and relatively common and seldom- another that nearly half a ly useful for either side. This is billion dollars was spent. why it is with almost universal This bill will increase the acclaim that the Open Data Pol- transparency of government icy has been signed by President though, regardless of how it is portrayed in the media. Obama. Passing both houses without The fact will remain that if a vote against it, the bill was any citizen wants to know passed into law and set an ex- facts about how their tax ample of how open data could dollars are being spent, it is
Open Data Policy
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efit to the open nature of politics and allows for real citizen jourA bill like this follows on from a nalism to take place. The realiclamour to increase government ty is that the US is not the first transparency around the world. government to see the imporEven in the US this bill follows on tance of open data, it has been from local attempts from cities mentioned several times before such as Chicago, who have had about France’s open data plata number of open data projects. forms and the agile way in which There was also a historic ‘Open they have approached the imGovernment Data Forum’ in provement of this. April which discussed the impor- Almost every democratic countance of open government data. try, with the means to do so, has This was organised by the UN created opportunities for citiand UAE in a combined effort zens and NGOs to explore data to increase the transparency of that only 5 years ago would governments around the world. have been hidden within servers This combined summit is of ben- or even in locked filing cabinets. It also creates a purer form of democracy, after all it is the voters who give governments the mandate to rule, so giving them the tools to evaluate the success of this is a vital part of democracy. It moves on from freedom of information, which, despite giving people access, could take months or years to complete and has no stringent rules about how data was to be presented. New legislation around the world will mean that this is no longer necessary and the headaches that these created can be avoided. simple to access that information.
One of the aspects of the bill that is quite interesting though, is that it has been limited. For instance, although there will be
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Open Data Policy
the world now adopting this kind of open data and allowing their government to be more open (to an extent) the precedent has been set and this will hopefully There are obvious reasons be- see others following suit. hind this, operational safety being the main one, but in reality these areas of government are two that have a significant spend. If people are looking for something to throw at the government, there are still these shadowy areas to be exploited. In reality these are areas that cannot now or ever, be fully open for obvious reasons. detailed records on several government departments, many will not be fully released. These include military spend and covert operations.
But essentially, with one of the most powerful democracies in
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Is It Time For Change?
Time For Change? Lewis Hudson Big Data Leader
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Is It Time For Change?
There has been the age old question of whether change is always a good thing. We are told that progress is something that can only ever be made with changes to what we currently perceive, the idea that unless changes are made, something will go wrong and we will be left wallowing where we are. On the other hand, there is the age old adage of ‘if it’s not broken don’t fix it’, changing something for the sake of change may not always have the desired consequences. The number of examples where changing part of an equation has damaged the outcome are numerous, from Apple changing from Google Maps to an in house model that was spectacularly bad to Coke’s new formula in the 1980’s.
from Target’s hack in 2013 to the recent hack of eBay. These are not small time breaches, these are full blown mining of millions of individual’s information. Both companies hold individual credit cards, meaning that personal wealth could be affected, meaning that banks could need to deal with millions of fraudulent card transactions and then law enforcement would also need to be involved. As we can see from this chain, hacks of this magnitude are not something that just impact on the company’s reputation, it goes well beyond that.
By setting a global mandate for data protection from companies, the overall industry will benefit even if there are teething problems, as you would expect with something of that scale. So when we talk about Big Data By forcing companies who hold in law, how necessary is it for more than a certain amount changes to be made? What of data to adhere to benefits are we likely to see and data auditing, there where are the changes needed is a much better chance of having the most? improved data Security security. The most important element of data that new laws need to concentrate on is how companies and governments are storing it. We are seeing records being set for ‘biggest hack’ every year,
Is It Time For Change?
Without regular assessment of security infrastructures, effectively all holding data is doing is making it easier for those who want it to find it, whether they get it by legal or illegal means. Collection The collection of data has never been more prevalent than today and it will continue to grow in the future. The idea that every move they make is being monitored is either reassuring or terrifying, depending on people’s viewpoint. In reality, as long as the data is used responsibly i.e. targeted marketing or suggestion engines, the issues are few and far between. After all most of us would much rather see an ad for something we are actually interested in rather than a generic banner that bears no relevance to us.
practice needs to be stamped out. Some moves have been made in this area with websites now being required to have an opt in for cookies, meaning that people will be made aware when their information and actions are being mined. However, in reality, this simply adds a layer of transparency to a process that anybody with a tertiary knowledge of the internet already knows is happening. Analysis This is perhaps the most difficult aspect to control as the majority of analysis conducted is done so in a variety of ways. This means that a general evaluation and code of conduct around this would be difficult to police as unless all analysis was done in a public domain, tracking what is actually found would be almost impossible. It would be easy to simply say that analysis is being done in a certain way but then conduct it in another.
Issues arise when the collection of information is done in more underhand ways. For instance the idea of list buying has been around for a few years and this represents a dark side to data collection. I have received hundreds of emails wanting to sell me their ‘opt-in’ lists. The idea being that these people are ‘opted in’ because they have expressed an interest in a subject or have a specific job title. With the rise in complexities of data sets, we could see these lists be- Examples of ing sold with considerably more how this could information and in reality the
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Is It Time For Change?
be used to the detriment of individuals would be in things like insurance or financial institutions. If it is found that there is a correlation previously unseen and companies can can utilise this to maximise profits at the expense of certain customer, this would pose a considerable moral question. Controls are already in place for some industries, especially those who tend to deal in more personal information, but there are almost constant rumours about these same industries analysing data in improper ways. Whether these rumours are true is purely conjecture, but perhaps there is no smoke without fire. With work along these lines though, the difficulty will not be in the formulation of any new laws, but in the upholding of them. Purely by it’s nature, data is stored and analyzed out of the public eye, making the identification of those in breach of the rules difficult. It is similar to financial crime, where it is often only through whistleblowers or audits that anomalies are found. What we can see though, is that following the series of high level data breaches, this kind of work is not only timely, but absolutely necessary. The issue is not going to be whether it can be done, but how quickly it can be.
Future of Privacy
The Future Of Privacy In The World Of Big Data Eduardo Ustaran Partner, Field Fisher Waterhouse
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Future of Privacy
Big Data offers commercial and social opportunities for everyone. However, its exploitation presents threats to our privacy and the protection of our data. The combined effect of these three factors have made Big Data possible through the growing power of technology, the realisation of the strategic and commercial value of personal data, and the globalisation of data-reliant activities – we now find ourselves at a crucial crossroads. Restricting the opportunities presented by what our data says about us will seriously threaten our future prosperity. Ignore privacy as a human value and we risk losing a large part of our ability to make choices. The implications of devising an effective legal framework to regulate the use of personal information in the era of Big Data are crucial for the future of humanity, our freedoms and our economic wellbeing.
only growing in direct proportion to the amount of data produced by users. Harvesting and handling data is the new alchemy. In the face of data globalisation, the regulatory answer should not be to retreat to our national trenches and build even more restrictive legal frameworks. The future of privacy will only be as good as our ability to accept the constant evolution of technology, to recognise that personal information is an asset, and to see data globalisation as an unavoidable reality.
The current legal framework dealing with privacy and data protection is no longer fit for purpose. Policy makers and regulators struggle to achieve their aims, whilst unsuitable and often-nonsensical law increasingly puzzles both the private and public sectors. The reason why our current laws are ineffective is because until now, there has been a nearly parallel journey Our daily interaction with tech- with legislators doing their best nology makes data self-gen- to catch up with technology. But erating increasingly valuable. as technology progresses and When people's data is properly the Internet of Things, cloud and systematically gathered and computing and Big Data bestudied, it can be the difference come more pervasive and embetween failure and success. It bedded in our lives, it is more is no coincidence that public au- and more apparent that engithorities and commercial organ- neers think and act much faster isations are constantly hunting than lawyers and legislators. for data about their citizens and customers. The biggest success New ideas for policy making stories of the internet age are It is beyond doubt that regulating directly linked to the collection Big Data is like chasing a moving and exploitation of data about target. It is therefore no surprise users, and the level of success is that no matter how effective,
Future of Privacy
powerful and sophisticated policy makers and regulators may be, they face an insurmountable challenge when attempting to apply existing privacy rules to this ever changing technological revolution, or indeed, devise new rules. The challenge is for that to take place without stifling the thinking and creativity of those at the forefront of technological innovation. In fact, the real trick is to do it by encouraging the development of equally ambitious technology that, at the same time, protects information and people's privacy. The starting point is to recognise the limitations and possible drawbacks of regulating technology. Going forward, we need to steer away, as much as possible, from trying to protect our privacy by regulating technology. Instead, we must direct our attention to the behaviour that should either be encouraged or prevented – irrespective of the technology in place. In other words, laws should be geared towards achieving certain outcomes, such as incentivising compliance, empowering individuals, or preventing harm whilst facilitating progress and technological innovation. The most effective way of regulating the exploitation of data as an asset is to prove that responsible exploitation brings benefits that organisations can relate to. Policy making in the Big Data sphere should emphasise the business and social benefits, for
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both the private and public sector respectively, of getting privacy and data protection right. The rest is likely to follow much more easily and all types of organisations, commercial or otherwise, will endeavour to make the right decisions about the data they collect, use and share. The message for policy makers is simple: bring compliance with the law closer to the tangible benefits that motivate decision makers. In addition, despite the absence of a global privacy legal framework, there is an urgent need to deal with the privacy issues raised by data globalisation. As always, the answer is dialogue – dialogue and a sense of common purpose. Representatives of the Obama Administration and the European Commission have already recognised that stronger transatlantic cooperation in the field of data protection would enhance consumer trust and promote the continued growth of the global internet economy and the digital transatlantic common market. We must recognise that despite different approaches, principles-based frameworks can deliver a universal baseline of protection. Much work remains to be done but with the right state of mind, everything is possible. A practical privacy strategy the future In the light of all this, what does a privacy compliance programme look like in the world of Big Data? To begin with, a global approach
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Future of Privacy
to compliance is a given. It should be assumed that personal information will flow back and forth across geographical boundaries and therefore adopting a credible mechanism for ensuring the right level of privacy and data protection, irrespective of where the data is accessed or stored, is a must. Much emphasis will continue to be given to transparency, particularly in the context of profiling, data analytics and anything that could be regarded as surreptitious. The greatest novelties will be around people's rights and their empowerment through value sharing. This may well create legal uncertainty that lawyers, decisions makers and regulators will need to live with, but the idea of giving back some of the value of data to their sources is one of our best chances of getting the balance right. Given the lack of effective control over our own personal information, the concept of passive empowerment is a realistic and fair substitute. Just getting companies and governments to think about how to give value back for the data collected will be a great achievement. What that value amounts to and how the law reflects that is something that will need to be determined, but as a principle, this is set to affect data professionals going forward and make their role even more vital. Another novelty will be the prevalence of risk-based Privacy Impact Assessments as a 'must
have' tool. More and more data uses will qualify for this type of exercise, which will embed privacy considerations as part of the day to day exploitation of Big Data. Using risk as a metric will only grow in importance and data professionals as well as policy makers and regulators will need to make realistic assessments of what is risky and what is not. This means that everyone will need to be receptive to change and open to debate, because as technology develops and data uses evolve, the perception of what is fair, risky or reasonable will also change. What takes priority will vary slightly from organisation to organisation, but all these key elements will certainly be part of an effective privacy strategy. The sooner we accept this, the sooner we will achieve our objective and realise the true benefits of Big Data in a lawful, fair and sustainable manner.
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Email dwatts@theiegroup.com for more information