Big Data Meets Data Nationalism

Peter Evans, PhDVice PresidentCenter for Global Enterprise

March 20, 2015

Global data residency trends and implications

2015 Georgia Tech Business

Analytics and Big Data Forum

https://twitter.com/pevans_c

Domestic content/ industrial policy

2

From manufacturing big data?

Rules and regulations aimed at localizing manufacturing jobs and value added by restricting trade in goods

Trade friction 1980s-present

Restrictions on free flow of data designed to protect, favor, or promote domestic companies over foreign companies

Next battle ground?

Digital trade

3

Industrial Asset Monitoring

Track fleets, quickly find assets, inspect their status and acquire more detailed information.

Consumer data

Tracking, analyzing and storing consumer data around the world.

Field Service Collaboration

Share information and supplement existing communication channels.

Transaction Management

Growth in data to support cross-border shoppers, expected to spend over $80 billion by 2018

To be of value data must often flow across national borders

Information and international competition

4

“Information is power, and economic information is economic power. Information has an economic value and the ability to store and process certain types of data may well give one country political and technological advantage over other countries.”

Longstanding concerns over sovereignty and electronic data flows

Louis JoinetFrench Justice Ministry OfficialSeptember 1977

What’s changed?Growing value of the data layer… “new oil”

Age of

Platforms

Platform business models leverage digital networks to achieve new levels of global speed and scale

Age of

Networks

Mesh networks linking physical, digital and social

Digital Age

Delivery of goods and services increasingly

depend on digital streams of data

Consumer+

Industrial Internet

$$

New battle ground?

Mandated local data storage

Local financial transaction requirements

Restrictions on remote monitoring of industrial equipment

Local content requirements on procurement of digital products by government and/or private sector entities

Growth in LBTs- Localization barriers to trade

Growing Value Competition to Capture Value of Data

Creeping data residency requirements

7

Source: Trade press and “Promoting Economic Growth through Smart Global Information Technology Policy: The Growing Threat of Local Data Server Requirements”, Business Roundtable, June 2012

Data Residency Rules

Surveys point to more restrictive data trade policies

Many industries adversely impacted

Future of LTBs and data nationalism

8

Key questions for today and the next decade

• Where is data nationalism becoming or likely be most acute?• Countries--- advanced, emerging?• Industries/ sectors--- retail, banking, health, mobility, energy, others?

• What strategies will firms adopt?• Adapt--- accept local requirement and/or deploy evasive technology• Exit--- leave or avoid countries with onerous requirements• Advocate--- form coalitions to press for global rules

• What strategies are countries likely to adopt?• Live and let live--- accept balkanized internet• Retaliation & reciprocity--- shift to a world of managed data trade• Collaborate--- join in building international rules and governance

mechanisms that ensure the free cross-border trade in digital information

Big Data Meets Data Nationalism

Peter Evans, PhDVice PresidentCenter for Global Enterprise

March 20, 2015

Global data residency trends and implications

2015 Georgia Tech Business

Analytics and Big Data Forum

https://twitter.com/pevans_c