Big Data The Truth Shall Set You Free€¦ · Big Data The Truth Shall Set You Free IAPP Europe...

1 IoT Rebootcamp 3-12-2013

Big Data

The Truth Shall Set You Free

IAPP Europe Congress 2013

11 December

Alex van der Wolk

We shape our tools

and thereafter they shape us

--John M. Culkin--

2 Big Data: the Truth Shall Set You Free 11 DEC 2013

• More and more data is generated

- In 2011: 1.800 exabytes (1.800.000.000.000 gigabytes)

• Due to digitalisation, data is easier to Search, Filter, and Analyse

• At the same time, data are the currency of the new economy

- Facebook's total profit in 2011 was only USD 1 billion

- Yet the company was valued at USD 104 billion at its IPO in 2012

- The difference is the data of 900 million members (approx. USD 115/member)


Big Data

• Big Data is all about smart analysis

- What new knowledge can be derived from existing information?

- More nuanced than ‘simple’ database query

- Allows for trend and behaviour analysis

- But also predictions: searching for correlations and appling these as causalities

(stereotyping)

Big data brings great potential for (commercial) use of data


Big Data

• Analysis of data is not new

- Has been going on for ages

- At first: segmentation, now: profiling

- Generally has been done in legitimate interest of company

• Now regulators have ‘woken up’ because of profiling

- Have realised the impact on data subjects

- Have revisited their opinion on business analytics


State of affairs

• Information inequality. Information is used without individual able to influence

process.

• Information injustice. Information shared in one context is used in another

• Big data correlations do not (have to) explain anything (statistic predictions)

• Inferences can be wrong (but also dead right, e.g. Target)

• Risk of being stuck to a profile (self-fulfilling prophecy)

• The more we click the more narrow the information we see

• Concerns are primarily with data protection, but also unfair commercial practice


Regulators’ concerns

• Dutch DPA already considered some years ago:

- (semi) individualised data analytics: consent

- But they didn’t write it down

• Data Privacy Regulation (art. 20)

- Right not to be subject to profiling

• WP29 Opinion on purpose limitation (03/2013)

- Seems to indicate:

• For trend analysis: detailed information suffices

• For individualised application of analysis: (probably) consent

• Dutch DPA in TPV investigation: Profiling requires consent


Profiling and consent

• Dutch DPA investigated TV manufacturer TP Vision (July 2013 - z2012-00605)

• TPV analysed users behaviour on “Smart-TVs”

• TPV registered:

- what the user was looking every 3-5 minutes

- the user’s use of apps and website visits

- When the TV is used at all;

- Which broadcasts and apps are favourite

- Which broadcasts are recorded

- Which videos are rented

8

Investigation Dutch DPA into TP Vision

11 DEC 2013 Big Data: the Truth Shall Set You Free

• TPV used this information

- For optimising ads;

- For making targeted recommendations

- For providing discounted or free content;

- Optimising the user portal

9

Investigation Dutch DPA


• Data can provide a very detailed image of a data subjects behaviour

- qualifies as data of a sensitive nature

- Is not the same as sensitive data as defined in the Directive

- But still stricter requirements with regard to proportionality, subsidiarity, and

information

• As a result, the privacy interest of the individual will almost always outweigh the

legitimate interest of the data controller

• Only available ground is unambiguous consent

- Plus extended duty to detailed information

10

Findings Dutch DPA


• Companies are reluctant to be transparent about profiling

- Fear loss of customers

• Companies are even more reluctant to ask for consent

- Fear customers won’t give consent; lose more customers

• Reality is that transparency can be a business enabler

- Adds to being a trustworthy company

- Sunlight is the best disinfectant

• Not ‘what is in it’ for the company, but is there a benefit for the customer?

11

Can profiling be trusted?


We analyse your previous purchases and those of other customers to provide you

with offers that are relevant to your preferences.

These offers consist of discounts on products that you often buy, or on products

which we expect to appeal to you on the basis of

(i) your previous purchases or

(ii) purchases of similar products by other customers


Personalised offers

• Complete, accurate and adequate information is paramount

• Adds to trust

- As interactions multiply, trust becomes even more important

- The more social we become, the more transparent things get

- Because everybody can hear from everybody, the only ones who will be heard will

be those who are trusted

Say what you are doing and do what you are saying


Transparency is key

• Don’t shy away from giving the customer control

• Offer a real choice

- Default option (also with benefits)

- Personalised (profiled) option

• Mind timing of asking consent (part of customer journey)

• Don’t be afraid to ask

• Better quality responses

- People who want to be profiled actually want to be profiled

- They will be disappointed if offers are not profiled (or not accurately profiled)

14

Customer in control


• Many companies make a strategy shift from being product-based to customer-

based

- But it is not all about the aimed results

- It is about getting everybody on board

• Companies need to be willing and daring to invest in the customer relationship

- Long term investment

- Requires time

- Requires management to be on board

- Requires close cooperation

15

Leap of faith?


16

Thank you


Big Data The Truth Shall Set You Free€¦ · Big Data The Truth Shall Set You Free IAPP Europe...

Documents

Transcript of Big Data The Truth Shall Set You Free€¦ · Big Data The Truth Shall Set You Free IAPP Europe...