The Personal Data Economy: Overview and Insights · 2 Insights into Competitive Dynamics Dr. Nicola...

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The Personal Data Economy: Overview and InsightsDr. Nicola JentzschBerlin, 31. März 2017

Overview

1. Overview of the Ecosystem and Platforms

2. Insights into Competitive Dynamics

3. Conclusions

Dr. Nicola Jentzsch (31.3.2017)The Personal Data Economy: Overview and Insights 3

Overview of the Ecosystem and Platforms


• Emergence of a new market • Different types of business models

• No dominant player has emerged thus far

• Increasing degree of organization• Initiatives and associations

1

1


5

CitizenMe(UK)

DataCoup(USA)

Personiq (DE)

MesInfos (FR)

OpenPDS (USA)

MyData Interoperability

Model (FI)

Gini‐SA(EU)

2010‐2012

MyData Initiative

(FI)

Data Fairplay (DE)

CompaniesGovernment initiatives / government cooperation

Customer Commons(USA)

Qiy Foundation

(NL)

OpenID (USA)

RespectNetwork(USA)

Cozy Cloud (FR)

Digital Me»di.me« (EU)

The Good Data (USA) Personal Data

Ecosystem Consortium

(UK)Meeco(UK)

Digi.me(UK)

Project VRM (USA)

MyDexCIC (UK)

Open Identity Exchange

(GB)

CoMaFeDS (DE)

MiData.coop(UK)

W3C Platform for Privacy

Preferences (USA)

LETsmart (DE)

Kantara Initiative (USA)

MyPermissions (IL)

DT Privacy Bot (DE)

Humada(USA)

ISO (CH)

Verify(UK)

Smart Disclosure Initiative (USA)

Handshake (USA)

Jolocom (DE)

OAuth 2.0(UK)

PGuard(DE)

Research projectsStandardization

initiatives

Fig. 1 Ecosystem

Source: Jentzsch (2017)

1 Overview of the Ecosystem and Platforms


• Re/locate control over digital profile to consumer (choice of privacy settings)

• Increase transparency of data generation, flow and usage

• Allow innovation by facilitating access for developers of new products and services

Primary goals stated by platforms



Fig. 2 ‘Traditional’ Intermediation Model

User

Telecom

Banks/FIs

Insurance

Retail

Telecom

Banks/FIs

Insurance

RetailConsumer Reporting

Agency(aggregation, analysis,

licensing, sales)

Primary Transaction

Secondary Transaction

Consumer Direct

Products




Fig. 3 PIMS Model

User

Telecom

Social media

Banks/FIs

Retail

Telecom

Social media

Banks/FIs

RetailPersonal Information Management System

(Platform)

Primary Transaction Secondary Transaction

AuthorizationConfiguration

PeersConfiguration




Taxonomy

Centralization of information at service provider (w/wo

consumer direct contact): Google, Experian, Acxiom, Facebook

Provider‐centric Intermediation Platforms

User‐centric information management based upon a technical

platform and a related trust framework

User‐centric Intermediation Platforms

Hub models: (i) Centralizing models (server, clouds)

(ii) Decentralizing models (local storage at user)

Distributed models: Data storage in DLT, BlockChain



Name Type Functions €/$/£? Architecture

Meeco (UK) Firm(for profit)

Curating functionsLinkage data setsIntent castingMarketplace

Planned App/platform/cloud/local storage

Telecom Italia (My Data Store)(IT)

Firm(for profit)

Curating functionsData centralizationMarketplace

Planned App/platform/ personal cloud

Deutsche Telekom (DE)

Firm (for profit)

Curating functions (FB)Transparency

In evaluation App

MesInfo (FR) Project (non‐profit)

Curating functionsLinkage data sets

Not planned Platform/personal cloud

Table 1 Preview of Business Models

2 Insights into Competitive Dynamics


Competitive Dynamics

Consumers Companies

Platform

Direct network externalities

Indirect Network Externalities

Price = 0 Price > 0

Fig. 4 Multisided Markets

Direct network externalities

• Attraction of both (or multiple) sides• Achieving a critical mass• Competition against large players, academic projects



• Competition in market for personal information goods

• True value‐added: Information quality and portfolio key

• Trusted third party (large player build platforms, too)

• Superior reward mechanism

General insights regarding competition



• Stated versus revealed preferences: Guidance?

• Transaction costs (time costs, cognitive effort)

• Potential inertia

• Unintended behavioral unraveling?

• Cost/benefit trade‐offs

General insights with respect to consumers

3 Conclusions


General Insights

• Market in the making with great challenges

• Unclear dynamics of uptake by companies & consumers

• Additional channel co‐existing with other intermediation?

• Political support could reduce encountered obstacles

3 Conclusions


Supportive Measures

• Increase precision of consent language (ML)

• Exchange on interoperability and portability standards

• Yearly conference, PPP

• Transfer knowledge from research community

Vielen Dank für Ihre Aufmerksamkeit.

DIW Berlin —Deutsches Institutfür Wirtschaftsforschung e.V.Mohrenstraße 58, 10117 Berlinwww.diw.de

RedaktionDr. Nicola Jentzsch [email protected]

The Personal Data Economy: Overview and Insights · 2 Insights into Competitive Dynamics Dr. Nicola...

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