This expedited period has created vehicles with advanced capabilities but few protections. Estimations transpires that 104 million cars will have some form of connectivity by 2025. The considered issue is taking the first priority in agendas of all the leading manufacturers, associations and of the Governments' as well !

1. Digital Transformation and Data Protection
in Automotive Industry
Av. Özlem Kurt Karayürek, LL.M. – Av. Serter Öztürk, MCSE, MCT

2. The Digital Enterprise Wave
• Big Data & Analytics
• Internet of Things
• Artificial Intelligence
• 3D Printers
• Industry 4.0..
«..the "car of the future" will be intelligent, inter-connected and instrumented and will
c o m m u n i c at e, s o c i a l i ze a n d c o l l ab or at e with other vehicles, traffic lights, parking bays,
billboards, (self-tailored ads) and retailers..»

3. Title and Content Layout with List
• Add your first bullet point here
• Add your second bullet point here
• Add your third bullet point here
• Adopting a new mindset @
• adding value means considering
customer experience, connectivity &
mobility benefits.
• Age of Doing More with Less
Less Time +
Less Cost +
Less Error
= More..

4. How the «Auto» Digitally Transforms
• Digital Service Planning - Remote Diagnostics
• Digital Showroom Experience – «Showrooming»
• Customers are using smart apps & gadgets when visiting
• «Info-tainment» : Customers expect their car to be an extension
of their home, office, club etc.
• «..the fear of OEMs is that a car will become a smartphone on
wheels, with cars built around their entertainment value rather
than their hardware value.. P. Fielden – IBM»
• Augmented Reality glasses create new driving experience:
• New Gadgets create a «Want to have and «Want to Use»
feeling!

5. Today Connected World Presents New Security Issues
• significant new opportunities vs a set of security issues
• requires new ways of thinking that can defend the customers against attackers
and privacy abuses
• Executives list cyber-attack vulnerability as their most important privacy
concern
• Previously closed & secure dosed systems now offer remote access and control
• Press reports indicate hackers have already breached everything from major
corporate databases to thousands of everyday consumer devices
« . . F o r t h e i n d u s t r y t o s u c c e e d t h i s t r a n s f o r m a t i o n , o r g a n i za t i o n s a n d
c o n s u m e r s n e e d t o b e l i e v e t h a t i t s b e n e f i t s o u t w e i g h i t s r i s k s . . »

6. OEMs and dealers need to offer new consumer services
« . . t h e f e a r o f O E M s i s
t h a t a c a r w i l l b e c o m e
a s m a r t p h o n e o n w h e e l s ,
w i t h c a r s b u i l t a r o u n d
t h e i r e n t e r t a i n m e n t
v a l u e r a t h e r t h a n t h e i r
h a r d w a r e v a l u e . . »
P. Fielden, IBM

7. You are already connected !
3 yet reported cases – OEMs have to adequetaly be prepared
• Fiat Chrysler Automobiles recalled 1.4 million vehicles in US over a
vulnerability in dashboard computers that allowed hackers to disable
the vehicle
• White hat hackers broke into General Motor's Onstar system
• White hat hackers plugged into a Tesla Model S to implant malware
into the car's central computer
« . . e s t i m a t i o n s t r a n s p i r e s t h a t 1 0 4 m i l l i o n c a r s w i l l h a v e s o m e f o r m o f
c o n n e c t i v i t y b y 2 0 2 5 . . »

8. LAW : Updates are needed to secure the risks coming
with the new revolution
• This expedited timeline has created vehicles with advanced capabilities but few protections!
• Governments are very sensitive about car safety and cyber security issues. For 2017,
connectivity is already prioritized on lawmakers’ agendas. It is obvious that
the automotive industry’s growth trajectory does not leave much time for reflection.
• Data privacy and cybersecurity will become a strong selling point for car buyers. The key
will be providing a smooth communication in an easy to understand way despite such
protective features .
N e w c a t e g o r i e s o f f i l e s w i l l f o r m i n l e g i s l a t i o n s ; D r i v e r le s s / A u t o n o m o u s
Ve h i c l e s a n d C r a s h Av o i d a n c e Te c h n o l o g i e s - i n c a s e o f a n a c c i d e n t - w h o
w i l l b e t h e f a u l t y, w h o w i l l b e p u n i s h e d : )

9. Five Principles of Data Protection
in-the-car to which the Industry will Adhere
• Transparency
• Customer Choice
• ‘Privacy by Design’
• Data Security
• Proportionate Use of Data
« . . E u r o p e a n A u t o m o b i l e M a n u f a c t u r e r s ’ A s s o c i a t i o n ( A C E A ) h a s j u s t
p u b l i s h e d t h e industry’s strategy paper on connectivity , w h i c h
a d d r e s s e s i s s u e s s u c h a s d a t a p r o t e c t i o n a n d a c c e s s t o v e h ic l e
d a t a b y t h i r d p a r t i e s . . »

10. Automobile Law
Data Protection in the Car
• Geolocation Information, must be in the form of a
warrant or court order or applicable statutory
authority;
• Data Minimization, De-Identıification &
Retention (..Covered Information should retain no
longer than they determine necessary for
legitimate business purposes..)
• Data security (.. commit to implementing
reasonable measures to protect Covered
Information against loss and unauthorized access
or use..)

11. DATA: New Currency or New Headache ? -I
• COMPANIES ARE NOT TRANSPARENT OR RESPONSIVE
• Over half of the organizations surveyed (57%) are not transparent about what they do with
personal information collected.
• Most (%61) say they are not quick to respond to customer privacy complaints.
• COMPANIES ARE LAX ON REGULATORY COMPLIANCE
• Many companies struggle to comply with increasing and evolving regulatory requirements around the
globe.
• 6 out of 10 companies (61%) do not strictly enforce compliance regulations

12. DATA: New Currency or New Headache ? -II
• COMPANIES FAIL TO ENGAGE EMPLOYEES
• The ePRl found a majority of companies fail to address the potential risk presented by poor
employee education.
• Over half (57%) of companies think their employees do not understand the importance of
security and privacy.
• 2 out of 3 companies surveyed do not proactively educate employees on privacy and security
issues
• COMPANIES FAIL TO PRIORITIZE
• 53% Believe a data breach would not adversely impact company reputation
• 60% Do not consider privacy and protection of personal information a corporate priority
• 61% Don't have a high level executive managing privacy programs

13. The Current Situation in Turkey -I

14. The Current Situation in Turkey -II

15. Questions
Answers

16. Thank You !