Our Top 5 Business Trends: #2 Privacy

Trend: Privacy
The exponential growth of customer data has reached a new level. But customers are starting to question what data businesses have on them and what it is being used for. They will soon start to demand access to and control of their own data. The current business-centric data model is not sustainable. At some point privacy must be balanced by customer convenience. And the customer is the only one who can make that choice.

The pitfalls of lack of transparency on the privacy issue were expressed in the Harvard Business Review article “Beware Trading Privacy for Convenience”. As stated in the article, “… companies contending to win our trust to manage our digital identities all seem to have complementary (or competing) business models that breach that trust by selling our data.” The issue was further highlighted in several pointed articles by BBC, CNN and ZDNet (links provided).

In the short term, customers will stop knowingly providing their data, as they understand completely the value of their data.

In the longer term, governments will start to actively review the policies of businesses and whether the storage of customer data is fit for purpose. The original intent of use of data was to provide data for the purposes of providing a service to the customer.

References:

  • BBC, Mobile location data ‘present anonymity risk’
  • CNN, London to create airport of the future with ‘Internet of Things
  • ZDNET, Congress demands answers from Google over Glass privacy concerns
  • Harvard Business Review, Beware Trading Privacy for Convenience