The end of the Wild-West of Data - Relevance and Regulation – Chris R. Hauth director strategy &...

The end of the Wild-West of Data- Relevance and Regulation –

Chris R. Hauthdirector strategy & corporate dev.

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?

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)

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

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

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

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

Vizualization – The right visualization of Data is the key for meaningful interpretation

Source: LinkedIn Maps, 2012

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)

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

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

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

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)

The Privacy Directive and its implementation in the UK and NL – Key points


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

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

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

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)


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

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"


The implications for your daily work

Regulation – What does it mean now for you??? Document, Document, Document!!!


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

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

Collaborative, cross-segment solutions currently focused on Behavioral Advertising

Industry Board Solution Private Solution


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!

The end of the Wild-West of Data - Relevance and Regulation – Chris R. Hauth director strategy &...

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