|By Andy Land||
|April 7, 2013 03:00 PM EDT||
Sharing personal information is central to the way people live, work and do business with each other today. And it's only going to become more so, as the Identity Economy emerges to establish a new paradigm for commercial interactions. This raises a number of interesting questions and concerns about the privacy of personal information.
Share and Share Alike
What does the sharing of personal information mean in the context of economic transactions? It specifically refers to consumers who are sharing information with companies and receiving something in return. It may be as simple as providing their information to enable a company to offer them a better service or more personalized experience. Or it may mean providing information to a company and giving the company permission to share with a trusted affiliate or partner in exchange for some benefit to the consumer. In many cases, the consumer is already sharing their personal information, either because the consumer provided it when registering for a particular service, or because the company has derived it from the consumer's use of the service.
Savvy consumers recognize that a lot of their personal information is accessible to companies they do business with. The idea posed by an identity-driven model for commerce is that this information could be utilized to make life easier and online interactions more delightful for consumers - if it could flow more freely on the consumer's behalf. Simplifying the authentication process (by overhauling how passwords are managed, for example) is part of this. But there's more to it than just making it easier to sign up and login to a service. It's about putting the consumer's digital exhaust to work in ways that go beyond its original intended use. For example:
- What if preferences and purchases made on one site could be used to personalize the consumer's experience on another site?
- What if real-time location information could be coupled with consumer intent or interest in a product to transform the consumer's shopping experience?
These and other similar questions frame the commercial possibilities that are driving what we call the Identity Economy. Let's take a look at their implications for managing customer data privacy.
What's Fear Got to Do with It?
Using personal information to fuel commercial activity is nothing new; entire companies are built on the premise of monetizing information, primarily by selling it for targeted advertising. However, companies built on this type of business model are often perceived as gathering and using personal information in a way that's somehow sneaky or underhanded.
- Ads for remodeling companies start popping up on someone's email just after she sends a message with "home repair recommendations" in the subject line.
- A member of a social network suddenly realizes the network is posting information about what music services he's listening to - though he doesn't remember agreeing to share this information with anyone.
That's just it: these users may have given permission to use their information, but they may have done so unknowingly, perhaps because the policy that was agreed to was obscure, overly generalized, or difficult to understand.
Under these circumstances, consumers are understandably fearful about their personal information being compromised by the companies with whom they share it. And the companies are often equally fearful of acting on opportunities to use information to improve the customer's experience and/or to create new sources of revenue - because they worry about being perceived as somehow unfairly exploiting information, or running afoul of laws governing data privacy. Concerns like these make data privacy one of the most important values that must be respected in the Identity Economy.
Overcoming Fear and Embracing Opportunity
Aside from this "stealth" model of obtaining and using personal information, the broader market does not seem to believe that a lack of transparency and control over the use of personal information is the right way to run a successful business.
To the contrary, many companies pursuing use cases involving the flow of information across applications and services take the privacy of their customers' personal data very seriously. In fact, their fear of unintentionally violating that privacy can make them reluctant to share it even when doing so would benefit the customer. For some, it's not worth the risk of alienating the customer -or worse, running afoul of privacy laws and regulations.
In many cases, this fear has nothing to do with sharing data with third parties (data brokers, advertisers, etc.) but instead involves sharing data across multiple lines of business within the same company. For instance, in many regulated industries, the information a consumer provides for service X cannot be shared with service Y at the same company. Quite literally, the right hand does not know what the left hand is doing - by design. Further, if they are sharing this information, they are very concerned about how to ensure that the information is flowing according to the terms of the agreement under which it was captured, their internal privacy policies, and the laws and regulations that affect their business.
Fear, in this instance, is not entirely a bad thing. After all, the information is sensitive and could be exploited to the detriment of the individual from whom it was collected. But to embrace opportunities, companies must overcome this fear by applying technology to ensure that personal information is collected with consent, under the right circumstances and for the right reasons, and utilized according to the terms under which it was collected - all while providing control to the individual over how their information is put to good use. Companies that follow these principles will not only be able to overcome their fear of using this data to delight their customers, but also differentiate themselves from the crowd.
The opportunities to utilize personal information to create highly engaging and personalized experiences are immense, but so are the opportunities for this information to be exploited for harm. Fear, uncertainty and doubt abound, but they also signal an opportunity for innovation. Most companies that are responsible for stewarding this information take that responsibility very seriously. So, too, do the regulatory bodies and industry organizations that govern and guide these companies as they explore this new territory.
Establishing and Enforcing Evolving Privacy Rights in the U.S.
The Consumer Privacy Bill of Rights recently drafted by the White House is part of a larger US government blueprint to improve overall consumer privacy protection while still encouraging innovation in business and commerce. As the White House describes it, "this blueprint will guide efforts to give users more control over how their personal information is used on the Internet and to help businesses maintain consumer trust and grow in the rapidly changing digital environment."1 This goes directly to addressing the fears described earlier in this article that must be overcome for the Identity Economy to thrive - both consumer fear of sharing personal information and corporate fear of using that information.
The themes outlined in the Consumer Privacy Bill of Rights mimic the established "Fair Information Practice Principles" and include the following:
- Individual Control: Consumers have a right to exercise control over what personal data organizations collect from them and how they use it.
- Transparency: Consumers have a right to easily understandable information about privacy and security practices.
- Respect for Context: Consumers have a right to expect that organizations will collect, use and disclose personal data in ways that are consistent with the context in which consumers provide the data.
- Security: Consumers have a right to secure and responsible handling of personal data.
- Access and Accuracy: Consumers have a right to access and correct personal data in usable formats, in a manner that is appropriate to the sensitivity of the data and the risk of adverse consequences to consumers if the data are inaccurate.
- Focused Collection: Consumers have a right to reasonable limits on the personal data that companies collect and retain.
- Accountability: Consumers have a right to have personal data handled by companies with appropriate measures in place to ensure they adhere to the Consumer Privacy Bill of Rights.
Diving down into specific industries, there are more focused laws and regulations in place that govern and guide how companies deal with customer information. The telecommunications industry, for example, must comply with constantly evolving legislation that sets forth rules for how telcos can use what is called customer proprietary network information, or CPNI. Similarly, in the financial services industry, laws such as the Gramm- Leach-Bliley Act mandate how financial services firms can use consumers' personal information and how they communicate their use of this information. In health care, a significant portion of the Health Insurance Portability and Accountability Act (HIPAA) regulating the industry is concerned with protecting the privacy of patient information.
The View from the EU
Managing the privacy of customer data is as much a concern in other countries as it is in the United States - in fact, it's generally more of a concern. The European Union (EU), for example, has clearly established in its Charter of Fundamental Rights of the European Union that the protection of personal data is a fundamental right of European citizens. The provisions are in clear language:
Protection of personal data
- Everyone has the right to the protection of personal data concerning him or her.
- Such data must be processed fairly for specified purposes and on the basis of the consent of the person concerned or some other legitimate basis laid down by law. Everyone has the right of access to data which has been collected concerning him or her, and the right to have it rectified.
- Compliance with these rules shall be subject to control by an independent authority.
This is an important concept to grasp when considering the European environment, and the Canadian environment is not much different than Europe. The U.S. simply does not have this same, comprehensive view of privacy. There are elements of these principles sprinkled throughout various sectors (health care, finance, etc.) in our society, but we do not view the protection of personal data as a fundamental right of our society. This is key.
Still, while the Europeans are much further along in defining and enforcing comprehensive privacy laws, most companies are still just beginning to put into operation the majority of the articles or rules defined in the existing and proposed regulations. For instance, most are well on their way to building a solid Data Protection Office and raising the internal awareness of data protection issues within their organization, but few, if any, have taken the steps necessary to place the individual in full control of their personal data. While a handful of companies are more mature in their compliance, most are not much further along than some progressive U.S. companies.
Ultimately, though, it's not a matter of if, but when. While there is much work to be done on implementing policies and measures that will bring companies into compliance with existing and proposed regulations, it's only a matter of time before mass adoption. In fact, the 2012 General Data Protection Regulation2, a proposed new legal framework for protection of personal data in the EU, could become law as early as mid- to late 2014. The proposed reform provides a broader scope of enforcement as its legal basis, places greater emphasis on individual control of data and enhances the responsibility assigned to data controllers and processors to demonstrate compliance.
The Privacy Cliff
The idea of a "fiscal cliff" dominated much of the economic and government news in the U.S. in 2012. Though it's certainly not as dramatic in nature, there is a sort of impending "privacy cliff" that all European and Canadian - and, soon enough, U.S. - companies will need to avoid falling over in the next few years. There are many months yet before the EU's 2012 General Data Protection Regulation is approved, adopted and in force as law, but the policies and measures that companies will need to define and operationalize in order to comply with the rules will require many months to implement. With the Safe Harbor agreement to provide "adequate protection," this also impacts companies doing business in the EU.
This is keenly true for large multinational service providers. As an example, consider the challenges surrounding the capture and management of end-user consent. Capturing informed (explicit) consent is one thing, but leveraging that consent decision at the point of access for every piece of personal data that a company might have on an individual raises the bar on the complexity (cost) of compliance. In the current environment where personal data can be spread among hundreds of systems, how does a company ensure and prove that a user's consent is being respected? This is much more involved than writing and posting a human-readable privacy notice on a website. It involves systematically changing the way that customer data is collected and consumed.
The wheels are already in motion, and companies in Europe and Canada are faced with the need to take action now. There will likely be similar regulation(s) passed in the U.S. that embody the principles defined in the EU reform. (Some of this already exists in laws governing specific industries, but a comprehensive federal law currently does not exist.)
Whether reform comes in the strengthening of existing regulations or the passing of more sweeping reforms, it presents companies with a tremendous opportunity. They can not only get ahead of the regulatory curve, but also differentiate themselves from the pack by investing in the protection of personal data. This also presents the opportunity to leverage business models in the Identity Economy that utilize personal information, instead of declining to pursue them out of fear. As developments in this constantly and rapidly changing arena continue, UnboundID will continue to develop solutions for companies that are participating in the Identity Economy.
- "We Can't Wait: Obama Administration Unveils Blueprint for a ‘Privacy Bill of Rights' to Protect Consumers Online," White House press release, February 23, 2012
- "Commission proposes a comprehensive reform of data protection rules to increase users' control of their data and to cut costs for businesses," Europa (EU official website) press release, January 25, 2012
It's 2:15pm on a Friday, and I'm sitting in the keynote hall at PyCon 2013 fidgeting through a succession of lightning talks that have very little relevance to my life. Topics like "Python code coverage techniques" (ho-hum) and "Controlling Christmas lights with Python” (yawn - I wonder if there's anything new on Hacker News)...when Solomon Hykes takes the stage, unveils Docker, and the world shifts. If you haven't seen it yet, you should watch the video of Solomon's Pycon The Future of Linux C...
Mar. 31, 2015 05:00 PM EDT Reads: 609
OmniTI has expanded its services to help customers automate their processes to deliver high quality applications to market faster. Consistent with its focus on IT agility and quality, OmniTI operates under DevOps principles, exploring the flow of value through the IT delivery process, identifying opportunities to eliminate waste, realign misaligned incentives, and open bottlenecks. OmniTI takes a unique, value-centric approach by plotting each opportunity in an effort-payoff quadrant, then work...
Mar. 31, 2015 04:00 PM EDT Reads: 1,090
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY., and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides private all-in-one social intranets allowing workers to securely collaborate from anywhere in the world and from any device. Social, mobile, and eas...
Mar. 31, 2015 03:00 PM EDT Reads: 3,216
SYS-CON Events announced today that Solgenia will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Solgenia is the global market leader in Cloud Collaboration and Cloud Infrastructure software solutions. Designed to “Bridge the Gap” between Personal and Professional S...
Mar. 31, 2015 03:00 PM EDT Reads: 3,041
When it comes to microservices there are myths and uncertainty about the journey ahead. Deploying a “Hello World” app on Docker is a long way from making microservices work in real enterprises with large applications, complex environments and existing organizational structures. February 19, 2015 10:00am PT / 1:00pm ET → 45 Minutes Join our four experts: Special host Gene Kim, Gary Gruver, Randy Shoup and XebiaLabs’ Andrew Phillips as they explore the realities of microservices in today’s IT worl...
Mar. 31, 2015 12:45 PM EDT Reads: 1,927
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on T...
Mar. 31, 2015 12:00 PM EDT Reads: 1,572
Hosted PaaS providers have given independent developers and startups huge advantages in efficiency and reduced time-to-market over their more process-bound counterparts in enterprises. Software frameworks are now available that allow enterprise IT departments to provide these same advantages for developers in their own organization. In his workshop session at DevOps Summit, Troy Topnik, ActiveState’s Technical Product Manager, will show how on-prem or cloud-hosted Private PaaS can enable organ...
Mar. 31, 2015 12:00 PM EDT Reads: 1,410
This month I want to revisit supporting infrastructure and datacenter environments. I have touched (some would say rant) upon this topic since my post in April 2014 called "Take a Holistic View of Support". My thoughts and views on this topic have not changed at all: it's critical for any organization to have a holistic, comprehensive strategy and view of how they support their IT infrastructure and datacenter environments. In fact, I believe it's even more critical today then it was a year ago ...
Mar. 31, 2015 12:00 PM EDT Reads: 798
Cloud computing is changing the way we look at IT costs, according to industry experts on a recent Cloud Luminary Fireside Chat panel discussion. Enterprise IT, traditionally viewed as a cost center, now plays a central role in the delivery of software-driven goods and services. Therefore, companies need to understand their cloud utilization and resulting costs in order to ensure profitability on their business offerings. Led by Bernard Golden, this fireside chat offers valuable insights on ho...
Mar. 31, 2015 11:45 AM EDT Reads: 964
Even though it’s now Microservices Journal, long-time fans of SOA World Magazine can take comfort in the fact that the URL – soa.sys-con.com – remains unchanged. And that’s no mistake, as microservices are really nothing more than a new and improved take on the Service-Oriented Architecture (SOA) best practices we struggled to hammer out over the last decade. Skeptics, however, might say that this change is nothing more than an exercise in buzzword-hopping. SOA is passé, and now that people are ...
Mar. 31, 2015 11:00 AM EDT Reads: 1,429
Microservice architectures are the new hotness, even though they aren't really all that different (in principle) from the paradigm described by SOA (which is dead, or not dead, depending on whom you ask). One of the things this decompositional approach to application architecture does is encourage developers and operations (some might even say DevOps) to re-evaluate scaling strategies. In particular, the notion is forwarded that an application should be built to scale and then infrastructure sho...
Mar. 31, 2015 11:00 AM EDT Reads: 2,570
SYS-CON Events announced today the IoT Bootcamp – Jumpstart Your IoT Strategy, being held June 9–10, 2015, in conjunction with 16th Cloud Expo and Internet of @ThingsExpo at the Javits Center in New York City. This is your chance to jumpstart your IoT strategy. Combined with real-world scenarios and use cases, the IoT Bootcamp is not just based on presentations but includes hands-on demos and walkthroughs. We will introduce you to a variety of Do-It-Yourself IoT platforms including Arduino, Ras...
Mar. 31, 2015 11:00 AM EDT Reads: 2,249
Microservices are the result of decomposing applications. That may sound a lot like SOA, but SOA was based on an object-oriented (noun) premise; that is, services were built around an object - like a customer - with all the necessary operations (functions) that go along with it. SOA was also founded on a variety of standards (most of them coming out of OASIS) like SOAP, WSDL, XML and UDDI. Microservices have no standards (at least none deriving from a standards body or organization) and can be b...
Mar. 31, 2015 10:45 AM EDT Reads: 2,278
Right off the bat, Newman advises that we should "think of microservices as a specific approach for SOA in the same way that XP or Scrum are specific approaches for Agile Software development". These analogies are very interesting because my expectation was that microservices is a pattern. So I might infer that microservices is a set of process techniques as opposed to an architectural approach. Yet in the book, Newman clearly includes some elements of concept model and architecture as well as p...
Mar. 31, 2015 10:15 AM EDT Reads: 2,202
Microservices, for the uninitiated, are essentially the decomposition of applications into multiple services. This decomposition is often based on functional lines, with related functions being grouped together into a service. While this may sound a like SOA, it really isn't, especially given that SOA was an object-centered methodology that focused on creating services around "nouns" like customer and product. Microservices, while certainly capable of being noun-based, are just as likely to be v...
Mar. 31, 2015 10:00 AM EDT Reads: 1,972
You hear the terms “subscription economy” and “subscription commerce” all the time. And with good reason. Subscription-based monetization is transforming business as we know it. But what about usage? Where’s the “consumption economy”? Turns out, it’s all around us. When most people think of usage-based billing, the example that probably comes to mind first is metered public utilities — water, gas and electric. Phone services, especially mobile, might come next. Then maybe taxis. And that’s ab...
Mar. 31, 2015 10:00 AM EDT Reads: 892
SYS-CON Events announced today the DevOps Foundation Certification Course, being held June ?, 2015, in conjunction with DevOps Summit and 16th Cloud Expo at the Javits Center in New York City, NY. This sixteen (16) hour course provides an introduction to DevOps – the cultural and professional movement that stresses communication, collaboration, integration and automation in order to improve the flow of work between software developers and IT operations professionals. Improved workflows will res...
Mar. 31, 2015 10:00 AM EDT Reads: 1,766
As a group of concepts, DevOps has converged on several prominent themes including continuous software delivery, automation, and configuration management (CM). These integral pieces often form the pillars of an organization’s DevOps efforts, even as other bigger pieces like overarching best practices and guidelines are still being tried and tested. Being that DevOps is a relatively new paradigm - movement - methodology - [insert your own label here], standards around it have yet to be codified a...
Mar. 31, 2015 10:00 AM EDT Reads: 911
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch ...
Mar. 31, 2015 09:15 AM EDT Reads: 2,305
An explosive combination of technology trends will be where ‘microservices’ and the IoT Internet of Things intersect, a concept we can describe by comparing it with a previous theme, the ‘X Internet.' The idea of using small self-contained application components has been popular since XML Web services began and a distributed computing future of smart fridges and kettles was imagined long back in the early Internet years.
Mar. 31, 2015 09:00 AM EDT Reads: 2,240