Digital Transformation & Open Innovation Trust Framework Initiative

Michele Nati Privacy and Trust Technical Leader Personal Data and Trust Programme London, 22 October, Digital Transformation Conference

A national centre to rapidly advance the UK’s best

digital ideas

Completely neutral

Not for profit, private limited

company

Who are we?

Some of our partners and supporters

We are NOT a funder, incubator or accelerator! Our aim is to work with these organisations, not duplicate

To unlock proprietary data in faster, better and more trusted ways

Digital Catapult Mission

Our focus is on the Data Value Chain

How We Do This?

Data from Internet of

Things devices

Personal Data

Data with ownership

rights

Closed Organisational

Data

Where does “our” data come from?

Pit Stops Hands-on help with specific issues around growth and scaling from our network of high-calibre experts Intense experience over two days 10-30 growing companies, deep technical experts, academics and students, larger corporates

Open Innovation at the Digital Catapult

Co-creation workshops

Bring together relevant stakeholders to identify problems, better scope them, design solutions

The commercial benefits of a personal data sharing eco-system

•  Personal data flows are the nervous system of any consumer facing business, they trigger the muscles to move when acquisition, cross-sell or churn events are identified.

•  As data becomes more abundant, this will be ever more critical to how “core businesses” compete in the future

•  Being timely and relevant reduces waste and cost, “50% of my marketing budget is wasted….” etc

•  Above all, it enables a better customer experience because organisations can be more responsive to their customers needs

The opportunity is horizontal…

Vertical = Limited use cases e.g fraud Horizontal = Many use cases

For example:

• Mobile phone data to alert social care if patient is unexpectedly idle

• Shopping data maybe used to inform healthcare advice

• Bank data to inform targeting of retail offers e.g “bought broadband 12 months ago…so”

What individuals think about personal data?

•  Consent •  65% are insure if data is shared without their consent

•  Responsibility •  30% felt it was their own responsibility to understand personal data issues

•  31% see organizations that hold data as responsible for its protection

•  Protection •  29% felt they had responsibility to protect their own information

•  Understanding •  38% don’t know what ‘personal data’ means, but 96% claim to

* http://tinyurl.com/q2n6e2w

How much consumers trust organisations?

•  Most trusted •  44% of consumers trust the public sector most with their personal data

•  Lack of clarity •  30% feel the retail sector is not clear on how use their personal data

•  Least trusted •  2% choose telecoms as the most trusted sector

•  Nervous sharing •  60% feel uncomfortable sharing personal data

•  Loosing control •  76% primary concern: no control over how its shared or who with

* http://tinyurl.com/q2n6e2w

Benefits of personal data sharing

•  Greedy Companies •  79% think organisations use data only for their monetary gain

•  Overall financial benefit •  £15bn untapped wealth for UK consumers

•  The incentive to share •  30% of consumers believe “to improve services and benefit” is the most important

incentive for sharing personal data

•  How to incentivise •  43% said the main incentive for sharing personal data is if it was going to be used to

improve society

* http://tinyurl.com/q2n6e2w

How is Digital Transformation possible then?

Trust Framework Initiative

14

Breaking down the barriers

Building Trust:

Removing Friction: Need to solve three sources of friction: Technical: How to define and physically transfer the data Legal: How to establish the users identity and assert

permission within each siloed system Commercial: How to agree the price of access/transfer

Need to empower the customer: Ethics: Recognise & respect the consumer’s wishes Control: Give tools/dashboards to enable real control Compliance: Verify orgs are sticking to the rules Communication: Kitemark for those in the ethical sharing club

Data Sharing & Trust Frameworks

Scheme Operator

Customer’s digital agent

The reliant party

The Attribute provider

The Scheme (rules)

Auditors

Use case pilots

Value with Policy

•  Validated attributes in personal store •  Automate DWP benefit calculation •  Benefit issued as GovCoin •  Expenditure aligned to policy

Anonymous marketing

•  Enable the individual to create anonymous persona

•  Use persona to target more relevant services to individual

Health and social care

•  Inefficient due to lack of co-ordination between agencies

•  Additional complexity of personal care budgets

•  All agencies give data to patient •  Patient controls sharing

Portable KYC

•  Portable digital ID (Verify/bank KYC) •  To be used at any bank for opening

and transferring accounts •  Future applicability to other sectors,

taking out mobile phone contract etc

Proposed plan overview

Evolution to “Operational Scheme” & “Lab”

Scheme Authority

Data Lab

Trust Framework

Initiative

•  Tests TFI •  4 core use

cases •  Sharing pilot

infrastructure and technologies

•  Consumer permission based sharing

•  Operational

system

•  With oversight body

•  Innovations

•  Block chain and other tech

•  Catapult, ATI, Corps and HMG

Steps to achieve this

Data Lab Scheme

Authority

Trust Framework

Initiative

1. Establish Scheme Authority, with a board representing the member constituencies 4. Use the tech trial learnings to help define the TF

2. Split the use cases between a small number of consortia 3. Run tech trials 5. Spin out consortia as Scheme Operators

Scheme Authority

 

Operational Management team

Founding members who protect articles

Statement of

community & interest

CIC Board

Community Interest Company as Scheme Authority •  It’s job is to evolve the digital rules

and appoint auditors

•  Needs to represent its members

•  Key constituencies: •  Consumers •  Private sector •  Public sector •  Not for profits

•  Establish as Not-for-profit

•  Will establish entity as CIC by guarantee

Scheme Operator emergence

Big tent for relevant

tech suppliers

Consortia 1

Consortia 2

2-3 use cases

2-3 use cases

Facilitate them to form 2 consortia, each able to

deliver the Scheme Operator functionality

Convene tech companies who each have part of the Scheme Operator

functionality

Each consortia to trial a number of use cases

Successful consortia become

licensed by the Scheme

Authority

The road to “operational” Scheme Operator

Phase 2 Phase 3

Consortium 1

Consortium 2

Consortium 1

Consortium 3

Consortium 2

TFI - Operational

Phase1

Use case 1

Use case 2

Use case n

Consortia implement the assigned use cases

(defining APIs and standards)

Consortia test interoperability,

aligning APIs and standards

Scheme authority set up, lessons learned, standards and APIs

defined

Creating a user centric “Data Sharing Lab”

•  The above “tech trials” process is an example of open innovation.

•  We want to promote ongoing innovation in this Ecosystem:

•  The consortia formation and use cases are an exemplars

•  We will execute the use cases through a repeatable “open innovation Lab structure”

•  The Lab will remain post trials and serve as the Scheme Authorities innovation capability, acting as a open hub connecting “innovators with problems owners”.

The Scheme Authority will work with the Catapult to start the Lab with with a number of founding partners

The Catapult brings…… •  It’s a neutral entity, not-for-profit, spans private and public sectors

•  Unique network of thousands of UK SME and academic innovators (inc PDTN)

•  Unique partnership with Alan Turing institute for data (& block chain) research

•  Unique national centre and network of local centers

•  Home of IoTUK, huge cross-over with personal/closed data sharing

•  Convenes a x-Gov data sharing round table

•  Strong links to the TISA and OBWG projects

•  Is an member of and are developing an engagement model with the OIX

The Catapult was founded by the HMG to promote innovation with closed data to facilitate growth in the UK digital economy

Systemic link between requirement, innovation and operation, for rapid scaling

Corporates and investors

Stakeholder defined

roadmap for innovation

required by corporates,

HMG & Consumers Technologies and platforms

SME innovators academics

Regulators, Government

LAB

Investment & integration with live operational

“Trust Framework” for

rapid scaling

The Lab

Government Corporates

Board of Founding partners

Members and Innovators

Scheme Authority

Project outcome •  Iterate

•  Integrate •  Finance to scale

Data LAB

Org

Distributed ledger

Digital Catapult / Partners SME’s

Cap

abili

ties

Centralised and distributed data

Data exchange and trading

Verified attributes and identity

KY

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Mar

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Pol

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Use

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Pro

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To Live Operating Environm

ent

In funnel

Lab method of operation

Phase 1 Phase 2 Phase 3

Pitstop 30+ selected

innovators 2 days

Development 3-5 selected innovators 1-3 months

Trials

The Lab selection innovators from its network in response to a client request. Holds 2 day innovation event with them & client

Key innovators are selected to work with client and Lab to develop solution

& Helps innovators product development

The Lab organises trials of the solution

& Helps innovators to define business model and GTM approach

Personal Data and Trust Network

PDTN: The Community

PDTN

SMEs

Corporates Universities

PDTN: The Structure

•  Over 500 members so far

•  9 core groups •  Oxford Area •  Health and Social Care

•  Design •  Legal and Regulation

•  Social Innovation •  Digital ID

•  Corporate Transformation •  PIM

•  Economics

•  We raise questions, trigger discussions, organize round-table, make impact, transfer knowledge

Want to know more?

http://www.digitalcatapultcentre.org.uk/open-calls/trust-framework/

http://www.pdtn.org

Thank you Digital Catapult Centre

101 Euston Road

London

NW1 2RA

Twitter: @DigiCatapult

Email: michele.nati@cde.catapult.org.uk

www.digitalcatapultcentre.org.uk