The End of the Wild-West of Data – Relevance and Regulation: the Cornerstones for Leveraging Big Data
The end of the Wild-West of Data- Relevance and Regulation –Chris R. Hauthdirector strategy & corporate dev.
The questions we will address today… What is BIG DATA and how BIG is it? When does data become relevant? An analytical grid. Why is privacy so important and what do we NEED to do about it? Page 2
Data is getting bigger and bigger… Worldwide Digital Data Volume(created and stored each year) 90 2015: 7,910 EB 80 70 ExaByte 60 x 61 50 40 BIG DATA 2011: 30 1,800 EB 20 2005: 130 EB 10 - 2000 2002 2004 2006 2008 2010 2012 2014 Note: The data of 2015 estimated by IDC Page 3 Source: 2011 IDC Digital Universe Study (2011/6); MIC "Information Distribution Cencus"
How big is your data??? Company size is nolonger a determinant Size DataWarehouse Revenue 2011 (in TB) (in €) VS. Page 4 Source: Data Unser – Wie Kundendaten die Wirtschaft revolutionieren (2012), affilinet
There is no reason why growth of (unstructured)data should decrease in the future! Social media boom The Mobile Revolution Facebook - Active users (04-11) Mobile Data Connections (04-11) 160% CAGR 20% CAGR E-Commerce transactions "Internet of Things" Global eCommerce Sales (04-11) Connected Devices 2015 (excl. PC/Mobile) Industrials 23% CAGR Utilities Retail Security Automotive Travel&Log HealthCare Page 5 Source: Facebook Prospectus 2012, YankeeGroup Topline Data Forecast 2011, JPMorgan eCommerce Forecast
The questions we will address today… What is BIG DATA and how BIG is it? When does data become relevant? An analytical grid. Why is privacy so important and what do we NEED to do about it? Page 6
But Size doesnt necessarily matter: Big Data isa complex ecosystem, navigate it wisely Customer Focus - Enrichment Profitability - Vizualization - Biz Intelligence - New Storage - Normalization - Categorization ( - ) Amount of Data Quality ( - ) Quality ( - ) Regulation Amount of Data Page 7 Source: affilinet
Enrichment – enrich and link your Big Data to increase the quality and make it valuable Example Fit predictors Evaluations Shares Weather Social Recommendations Likes Product Data Holidays Environmental Info OpinionsGeo-locations Special Promotions Connect to other players of the Value Chain Page 8 Source: affilinet
Vizualization – The right visualization of Data isthe key for meaningful interpretation Page 9 Source: LinkedIn Maps, 2012
The questions we will address today… What is BIG DATA and how BIG is it? When does data become relevant? An analytical grid. Why is privacy so important and what do we NEED to do about it? Page 10
Too often we see big data as a way to improveour productivity, but thats just part of the story What are you using Big Data for???Increase Operational Efficiency 51% No wonder that government gets Inform Strategic Direction 36% it all wrong and Better Customer Service 27% tries to curb Data AnalyticsIdentify New Products/Services 24%Enhance Customer Experience 20% Identify New Markets 11% Big Data should be Faster Go-To-Market 8% about better Comply with Regulations 6% services for our customers FIRST Other 3% Page 11 Source: The Economist - Harnessing a game changing asset (2011)
Privacy and end-user trust perception is key:BUT privacy perception differs substantially What is privacy? (EU 27) The good news is: The information Visited Websites 25% our industry is interested in is not Taste & Opinions 27% considered private by the end- customer Photos of me 48% Mobile Number 63%Medical Information 74% BUT: Thats just one part of the Financial Info 75% picture… Page 12 Source: EU -SPECIAL EUROBAROMETER 359, 2011
The start and the end of big data is the complexconsumer, dont forget that…! Your Opinion of Personalized Search? (U.S.) Total 65% 29% Obviously we BAD Good other communicated something wrong! >50 70% 24%Age <29 56% 38%High Salary 75% 19% Big Data should be >75k about privacy and Low Salary 45% 49% protecting <30k individual needs Page 13 Source: PEW Institute – PIP Serach Engine Use 2012, U.S.
E-Privacy Directive and the Data ProtectionRegulation E-Privacy Directive Data Protection Regulation§ Local Implementation § Local Implementation W3C Proposal on DNT initiative Page 14 Source: EU, W3C, affilinet
The Privacy Directive, DNT and Data Protectionshould be seen in conjunction Step I Full Transparency Privacy Directive Do Not Step II Track Full Control Initiative (W3C) Data Protection Step III Regulation Right to be Forgotten Page 15 Source: EU, affilinet
The Privacy Directive and its implementation inthe UK and NL – Key points UK implementation NL implementation Clear and Comprehensive Information Cookie is stored Purpose of Cookie Duration of Cookie "Implicite" Consent Prior Informed Consent Consent can be revoked at all times Cookie = Personal Data Inform DP authority Secure Data Handling Check & Correct tool for 3rd party processing end-users agreements Page 16 Source: EU, affilinet
A very first step excluding proactive cookiemanagement 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 Page 18 Source: company information, affilinet
Best Practice Basic - Simple & smart solutionexcluding proactive cookie management Persistent Nav Item Initial 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) Page 19 Source: company information, affilinet
Best Practice Advanced - Cookie hierarchy andsegment specific cookie control - General Explanation - Explicit privacy and cookie setup - Affiliate cookies potentially grouped under "strictly necessary and performance" Pop-up on first page landing & persistant cookie settings link Page 21 Source: company information, affilinet
Regulation – What does it mean now for you???Document, Document, Document!!!The implications for your daily work 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) Current timeplan suggest Growing Importance and necessity of well final date for documented "Customer Consent" implementation in 2016 More and easier accessible user rights, will mean for Currently the draft you to offer customers access and controll (e.g. means significant "Right to be forgotten", personal data portability) strains on our Profiling will be harder as the definition of "personal operations, increase in data" is significantly broadened bureocracy and in certain cases the death of whole business models Page 22 Source: EU, affilinet
Collaborative, cross-segment solutions currentlyfocused on Behavioral Advertising Industry Board Solution Private Solution Page 24 Source: company information, affilinet
What are the key take aways… Big Data is the key decision point for our industry and we will need to…. Put the end-customers on Prio 1 will be decisive for the industry 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 Page 25 Source: affilinet
… thanks for time! Enjoy the rest of your day @ a4u Barcelona! affilinet GmbH T. +49 89 435710 170 Chris R. Hauth M. +49 151 Jospeh-Wild-Str. 20 E.m. firstname.lastname@example.org 81829 München www.affili.net