Balancing a digital dilemma
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When looking at the flood of personal data that is being created daily, there is no disputing that a unique opportunity lies in front of us. Leveraging this new asset class can unlock significant social and economic opportunity for individuals, enterprise
However, we are faced with a dilemma when it comes to personal data. How can we both protect against its abuses yet benefit from the returns and value it creates by sharing and analysing it? Finding this balance, and the governance structures that support it, will be critical for achieving a sustainable digital economy.
A new World Economic Forum report, “Rethinking Personal Data: Strengthening Trust”, explores how we might begin to find that balance. The report identifies some of the key points of tension within the ecosystem and provides insights on how this global dialogue could advance in a more constructive and user-centric way.
The report reminds us that, unlike tangible assets such as oil or gold, personal data operates under the economics of abundance. Personal data is a renewable resource – the more it is used, the more valuable it becomes.
Along with how value is being created, the report notes that a shift in power is also occurring. You and I and billions of other connected individuals are poised to play a significant role in how the personal data ecosystem evolves and how value is distributed.
However, a declining sense of trust between individuals, governments and enterprises is fragmenting and polarising the dialogue. There is too much talking and not enough listening. Individuals are increasingly frustrated by a lack of transparency and control in how their personal data is used and commercialised. Businesses are uncertain of their legal liabilities and are under-investing. Governments are struggling to establish harmonised legal frameworks that account for the velocity and complexity of the issue.
Given this situation, a new set of policies and governance frameworks are needed to stabilise the situation and to improve the accountability of all stakeholders. The approaches must recognise the central importance of the individual and maintain the integrity of the context in which personal data is used.
We need to design these policies around a shared set of principles to deal with the ambiguities of today’s hyperconnected reality. We no longer live in a world of binary, black or white choices. We need safeguards and compliance mechanisms equipped for a world of increasing shades of grey, rapid change and complex interdependencies. One notion is to establish a series of living labs – akin to clinical trials of the pharma industry – where these new technological and societal dynamics could be better understood.
Establishing these new mindsets and approaches will not be easy. Stakeholders have different cultural norms, timeframes for action and solution paths But the global nature of the opportunity suggests that the rewards far outweigh the risks.
William Hoffman is associate director, Telecommunications Industry, World Economic Forum. For more information, visit http://www.weforum.org/personaldata.
