the end of the wild-west of data - relevance and regulation – chris r. hauth director strategy...
TRANSCRIPT
The end of the Wild-West of Data- Relevance and Regulation –
Chris R. Hauthdirector strategy & corporate dev.
Page 2
What is BIG DATA and how BIG is it?
The questions we will address today…
When does data become relevant? An analytical grid.
Why is privacy so important and what do we NEED to do about it?
Page 3
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
-
1,000,000,000
2,000,000,000
3,000,000,000
4,000,000,000
5,000,000,000
6,000,000,000
7,000,000,000
8,000,000,000
9,000,000,000
Data is getting bigger and bigger…
Note: The data of 2015 estimated by IDCSource: 2011 IDC Digital Universe Study (2011/6); MIC "Information Distribution Cencus"
2015:7,910 EB
2011:1,800 EB
x 61
Exa
Byt
e
Worldwide Digital Data Volume
BIG DATA
2005:130 EB
(created and stored each year)
Page 4
How big is your data??? Company size is no longer a determinant
VS.
Size DataWarehouse(in TB)
Revenue 2011(in €)
Source: Data Unser – Wie Kundendaten die Wirtschaft revolutionieren (2012), affilinet
Page 5
There is no reason why growth of (unstructured) data should decrease in the future!
Source: Facebook Prospectus 2012, YankeeGroup Topline Data Forecast 2011, JPMorgan eCommerce Forecast
Social media boom The Mobile Revolution
E-Commerce transactions "Internet of Things"
Mobile Data Connections ('04-'11)
20% CAGR
Global eCommerce Sales ('04-'11)
23% CAGR
Automo-tive
UtilitiesTravel&Lo
g
Retail
Industrials
HealthCare
Security
Connected Devices 2015 (excl. PC/Mobile)
Facebook - Active users ('04-'11)
160% CAGR
Page 6
What is BIG DATA and how BIG is it?
The questions we will address today…
When does data become relevant? An analytical grid.
Why is privacy so important and what do we NEED to do about it?
Page 7
But Size doesn't necessarily matter: Big Data is a complex ecosystem, navigate it wisely
Quality
Profitability
Amount of Data
( - ) A
mount of Data
( -
) Am
ount
of D
ata
( -
) Q
ualit
y
( - ) Regulation
Source: affilinet
- Enrichment- Vizualization- Biz Intelligence- New Storage- Normalization- Categorization
Customer Focus
Page 8
Enrichment – enrich and link your Big Data to increase the quality and make it valuable
Connect to other players of the Value Chain
Product Data
Geo-locations
Weather
Holidays
Fit predictors
Social Recommendations
Special Promotions
EnvironmentalInfo
Evaluations
Example
Likes
Opinions
Shares
Source: affilinet
Page 9
Vizualization – The right visualization of Data is the key for meaningful interpretation
Source: LinkedIn Maps, 2012
Page 10
What is BIG DATA and how BIG is it?
The questions we will address today…
Why is privacy so important and what do we NEED to do about it?
When does data become relevant? An analytical grid.
Page 11
Too often we see big data as a way to improve our productivity, but that's just part of the story
No wonder that government get's it all wrong and
tries to curb Data Analytics
Big Data should be about better
services for our customers FIRST
What are you using Big Data for???
Other
Comply with Regulations
Faster Go-To-Market
Identify New Markets
Enhance Customer Experience
Identify New Products/Services
Better Customer Service
Inform Strategic Direction
Increase Operational Efficiency
3%
6%
8%
11%
20%
24%
27%
36%
51%
Source: The Economist - Harnessing a game changing asset (2011)
Page 12
Privacy and end-user trust perception is key: BUT privacy perception differs substantially
The good news is: The information our industry is
interested in is not considered private
by the end-customer
BUT: That's just one part of the
picture…
What is privacy? (EU 27)
Financial Info
Medical Information
Mobile Number
Photos of me
Taste & Opinions
Visited Websites
75%
74%
63%
48%
27%
25%
Source: EU -SPECIAL EUROBAROMETER 359, 2011
Page 13
The start and the end of big data is the complex consumer, don't forget that…!
Obviously we communicated
something wrong!
Big Data should be about privacy and
protecting individual needs
Your Opinion of Personalized Search? (U.S.)
Low Salary
High Salary
<29
>50
Total
45%
75%
56%
70%
65%
49%
19%
38%
24%
29%
Age
BAD Good other
Source: PEW Institute – PIP Serach Engine Use 2012, U.S.
>75k
<30k
Page 14
E-Privacy Directive and the Data Protection Regulation
Local Implementation§Local Implementation§
W3C Proposal on DNT initiative
E-Privacy Directive Data Protection Regulation
Source: EU, W3C, affilinet
Page 15
The Privacy Directive, DNT and Data Protection should be seen in conjunction
Source: EU, affilinet
Step IFull Transparency
Step IIFull Control
Step IIIRight to be Forgotten
Privacy Directive
Data Protection Regulation
Do Not Track
Initiative (W3C)
Page 16
The Privacy Directive and its implementation in the UK and NL – Key points
Source: EU, affilinet
UK implementation NL implementation
Clear and Comprehensive Information
Cookie is stored Purpose of Cookie Duration of Cookie
Consent can be revoked at all times
Cookie = Personal Data
Inform DP authority Secure Data Handling
Check & Correct tool for end-users
3rd party processing agreements
"Implicite" Consent Prior Informed Consent
Page 17
Privacy Directive – Compliance Step 1: Full Transparency
Goals:
- Overlay and at least one very visible persistent link on all pages of your online presence
- Clearly communicate purpose and hierarchy of cookies (other tracking methods)
- Explain the "implicit consent" issue to the user
Source: affilinet
Cookie Policy
Page 18
A very first step excluding proactive cookie management
Link persistent on all pages
- General Explanation
- General browser based Privacy Management info
- Detailed website principles on cookies
- Detailed explanation and list of implemented cookies/segments
Source: company information, affilinet
Page 19
Best Practice Basic - Simple & smart solution excluding proactive cookie management
Persistent Nav ItemInitial Pop up
• How cookies are used in general
• Which cookies are set and for what reason (detailed categorized list)
• How to toogle your browser settings to manage cookies (only as indirect link)
Source: company information, affilinet
Page 20
Privacy Directive – Compliance Step 2: Full Control
Additionally to Step 1
Introduce an "intelligent 2 stage" process:
- Enable control of privacy settings in and outside of browser settings
- Pro-actively advise users on active cookie management possibilities (e.g. ghostery, adblock plus, etc.)
Source: affilinet
Cookie Policy
1
2
Cookie Policy
Page 21
Best Practice Advanced - Cookie hierarchy and segment specific cookie control
Pop-up on first page landing & persistant cookie settings link
- General Explanation
- Explicit privacy and cookie setup
- Affiliate cookies potentially grouped under "strictly necessary and performance"
Source: company information, affilinet
Page 22
The implications for your daily work
Regulation – What does it mean now for you??? Document, Document, Document!!!
Source: EU, affilinet
Non-EU based players will need to comply to the new rules
Data protection and compliance become more important as not only individuals can sue you (e.g. but also indirectly associated lobby groups)
Growing Importance and necessity of well documented "Customer Consent"
More and easier accessible user rights, will mean for you to offer customers access and controll (e.g. "Right to be forgotten", personal data portability)
Profiling will be harder as the definition of "personal data" is significantly broadened
Current timeplan suggest final date for
implementation in 2016
Currently the draft means significant strains on
our operations, increase in bureocracy and in certain cases the death of whole business
models
Page 23
Data Protection Regulation – Compliance Step 3:The Right to be forgotten
Additional to step 2
- Clearly communicate use and purpose of ALL cookies (ideally also other tracking methods)
- Enable individual control of decisions taken in the past and the right to be forgotten BEFORE setting cookies
Source: affilinet
Cookie Policy
Page 24
Collaborative, cross-segment solutions currently focused on Behavioral Advertising
Industry Board Solution Private Solution
Source: company information, affilinet
Page 25
Big Data is the key decision point for our industry and we will need to….
What are the key take aways…
Proactively work with government and interest groups to define the customer way forward
Intelligently collaborate to improve customer experience using the non-personal data we have
Put the end-customers on Prio 1 will be decisive for the industry
Source: affilinet
affilinet GmbHChris R. HauthJospeh-Wild-Str. 2081829 München
T. +49 89 435710 170M. +49 151 E.m. [email protected]
… thanks for time! Enjoy the rest of your day @ a4u Barcelona!