The GDPR is the first step in the right direction in regards to empowering consumers, but there remain ethical and moral responsibilities for the industry.
Transparency is needed around the use of data and what value it brings the consumer in return. How people create and run businesses will fundamentally change in the future, especially given the rise of platforms and marketplaces.
As citizens become ever more aware of the power of their data, they will be increasingly reluctant to part with it – unless the benefits of that transaction are clear and without risk. This awareness, however, may also create personal opportunity: Services like DataWallet by Pnyks, Inc. offer consumers a personal data management platform, which enables them to govern and even monetize their data assets.
The growing data economy is at present dominated by B2B models. In exchange for highly personalized services, consumers are effectively treated as data providers. In spite of this, they often have little visibility or control over how their data is collected and used.
For data-driven enterprises, maximizing the value of consumer data is crucial to support innovation, reimagine services and expand into new segments. Personal data is also helping governments shape policy and deliver better public services. As an example, the Australian Treasury partnered with LinkedIn to gain better insight into future labor market developments.
The Australian Treasury teamed up with LinkedIn, using data analytics to predict future labor market developments and inform economic policy.
Consumer awareness of data value is now being met with an appreciation of its risks. On the 25th of May 2018, the European Union’s General Data Protection Regulation (GDPR) came into force, representing an important first step of the response to increasing public concern surrounding personal data privacy and usage. Simultaneously, continued data scandals are increasingly highlighting the social, economic, political and environmental disruption that data abuse can cause. Alongside the prominence of GDPR, these events are forcing governments worldwide to consider data privacy and data protection as a basic human right, and to implement legislation to enforce it as such.
“According to the European Commission, by 2020 the value of personalized data will be 1 trillion euros, almost 8% of the EU’s GDP. As this trend grows, there will be increasingly growing conflict between the value of data and individual privacy and consent.” - 'The value of data' World Economic Forum
Traditional B2B and B2C models will need rethinking. Increasing awareness among consumers of the value of their data may create new business opportunities, with consumers themselves becoming business partners. Our social and business lives are becoming ever more blurred – the individual may become a product or brand, and the data they create a valuable asset.
In the coming weeks, we’ll be sharing similar break-downs of each of the location trends. If you want to download the full report, get in touch with us.