Emergence of Data Driven Organizations

Changes across world

The economies across world are going through churning due to Technological Changes that have transformed the whole business paradigm in last several decades. It is being  predicted for quite long that Internet is going to change the world, and the information will be a key aspect of valuation & marketplace. And it is very evident today by way of organizations like Amazon, Facebook, Google, Alibaba being dominant in the market place.

Market Leaders and data-based dominance

If you see the fast rise to dominant place, one thing is clear, it has happened because of the way these organizations have utilized data as key currency. And Personal Information is soul of data.

  • Google and Facebook have platforms that provide targeted marketing infrastructure to its customers. Google key offering has been online advertising (over Google and YouTube), but it has diversified to offering to provide software suites, cloud services, map & traffic services. For lot of services like Google Maps, crowd sourcing of data from users has played a key role.
  • Amazon has not only become a market place offering its products and services, it has created an ecosystem offering products & services for which the underlying supply chain and logistics has been enabled by it only. Through this, it has taken on & beaten both traditional Brick & Mortar competitors like Walmart, and tech organizations like Google and Facebook despite being consistently low on profits.
  • If one compares other media platforms, capturing user’s base & behaviour patterns data, most of them have already been acquired, LinkedIn by Microsoft, Instagram by Facebook. Few organizations like Twitter and Pinterest are still operating independently, though their only way of making money is through advertisements (Citation needed).
  • Comparatively pure tech companies (IBM, HP, Dell, and likes) that don’t have general user penetration though at stable level, don’t have valuations like earlier ones.
  • In few cases, an approach for valuation of user data based on market capitalization of organizations and corresponding user base has been used, which estimate the size of per user data to be around $120 per year on an average.

source: https://www.forbes.com/sites/tristanlouis/2013/08/31/how-much-is-a-user-worth/#6490c1891c51

Accelerating Factors

The following factors have impacted the pace of change:

  • The relative ease with which information can be captured about end users (Social Media, electronic input on web / mobile, cross-validation (Auth2)
  • Commerce possibilities among entities across the world have become easy with the push of a button. Digital payments, payment gateways, ACH / ECS, digital Signature, etc have further accelerated the pace.

(Bio-metric based authentication platforms provided by state bodies.)

  • Location independence of processing that is taking place, and the ease with which data can be transported across the world.
  • The emergence of big data and analytics that support faster and accurate decision making for commercial decisions.

Impacts on the end user

While these changes have helped end users to some extent, these have led to serious side-effects through significant exposure of user’s contents and behavior patterns to Corporate and State bodies and has a potential to impact them more seriously if not taken care of. To cite, look at a few of factors:

  • Both general and sensitive data of world citizens is lying with Big Corporates, Government bodies, that if mis-utilized can lead to serious consequences. (This includes credit card summary, purchase transactions and related patterns etc.) Few organizations like Facebook are targeting the financial data of customers.
  • Crowdsourcing of data has increased the possibility of a lot of personal data being made public with services like truecaller. Further, any breach into this data can have serious consequences. A security incident was reported by truecaller on 18-July-2013.
  • Level of interference into citizens day to day life has increased significantly. (Unsolicited calls, behavioral retargeted marketing)
  • In a number of cases, data inaccuracies lead to citizens being devoid of services in day to day life (financial rating, government services, Health facilities, devoid access to premises etc)
  • Further level of commitment of providing organizations (both Private and Government) is not clear, leading to various scandals coming to lime-light across multiple timezones. (Facebook / Cambridge Analytica scandal, UIDAI data leakage in India ).
  • Control of few leading nations over world economics. Though not talked openly, nations have apprehension over losing control or edge in world market by consolidation of user data with big corporates of select countries. Few leaders have already quoted as Big Data becoming such an important aspect, that nation states will fight over it. The example given above could be tip of iceberg

Data Protection Regimes

Nations across whole world are gearing up for creating an environment to provide protection and privacy to its citizen regarding their personal data. The need has been realized as early as around 1970s, and effort started gradually to provide privacy to citizens. The impact on such data has got significant with the proliferation of mobile technologies game casumo review.

The evolution has been gradual and following could be observed regarding laws:

  • Several codes, standards and acts (laws) have evolved across nations for covering the privacy domain.
  • Few regulations have emerged that are suggestive in nature and at some places prescriptive in nature.
  • Few laws covered private entities, while several other were created for public & governance bodies.

While US has been traditionally on liberal side for Data Privacy regulations that leads to organizations (Data controllers, processors) being able to utilize the opportunity, EU has been at other end being tilted heavily towards citizens, with recent GDPR setting bench mark for expectations from Data Controllers & processors. . The  Personal Data Protection Bill introduced in India on 27th July 2018 seem to strike a balance between US & Europe point of views.

We can expect significant changes due to ripples of new Privacy regulations getting introduced across world. Visit https://www.paydaynow.net/ to learn more on how you can invest in this field.


[1] https://www.forbes.com/sites/tristanlouis/2013/08/31/how-much-is-a-user-worth/#6490c1891c51

[2] https://en.wikipedia.org/wiki/OAuth#OAuth_2.0

[3] https://www.iol.co.za/saturday-star/news/facebook-now-after-users-financial-data-16560895

[4] https://en.wikipedia.org/wiki/Crowdsourcing

[5] https://en.wikipedia.org/wiki/Truecaller#Security_and_privacy_issues

[6] https://en.wikipedia.org/wiki/Behavioral_retargeting

[7] https://en.wikipedia.org/wiki/Facebook%E2%80%93Cambridge_Analytica_data_scandal

[8] http://www.iasparliament.com/blogs/pdf/leak-of-aadhaar-data

[9] https://www.businessinsider.in/alphabets-eric-schmidt-big-data-is-so-powerful-nation-states-will-fight-over-it/articleshow/57559460.cms


Indian IT Companies are not ready for GDPR Compliance 2018

The General Data Protection Regulation is a regulation that passed by the European Union that requires businesses and IT Companies to protect the personal data and spell out how they manage and share personal data.

GDPR new data privacy rules will come into force on 25th May 2018 and set a new standard for data privacy and protection. Under GDPR, you will need to prove that you can list backed up data, manage data storage media, locate data and manage your data. However, any audited organization without a genuine data backup plan could be penalized. Non-compliance with GDPR regulations would cost huge financial penalties to the IT Companies.

According to the media report The Economic Times, “Only 30-35 percent of all IT/ITeS companies have started their journey to work towards GDPR compliance,” said Jaspreet Singh, Cyber Security Partner at EY.

Indian IT firms are struggling to comply with new data protection rules and finding it difficult to understand the GDPR data policies. EY’s Data Analytics Survey 2018 shows that 56 percent of Indian respondents are unfamiliar with the new regulation GDPR. For the Indian IT sector, almost 30% revenue of IT Services is from European Clients.

Top Indian IT Companies like Tata Consultancy Services, Infosys, Wipro and Tech Mahindra have declined to comment. BPO firm Genpact has identified “GDPR as a risk” in their 10K filing with the SEC with potential fines for violations of certain regulations. Data Analysts Warning states GDPR non-compliance and potential damages of breach of privacy of user data from EU could cost firm 4% of revenue.

We are only a few days away from GDPR enforcement, and IT firms are likely to take actions to comply with GDPR. Before it is too late, companies should be prepared for these data regulations.

Choosing Atempo solutions can help in getting you safely through a GDPR audit. Atempo’s Data Backup Solution (ALN and ATN) and Archiving solution (ADA) fully comply with GDPR and respect industry norms related to data backup, data recovery, data storage and accessibility.

For any query for GDPR compliances or data backup services, feel free to call us at +91-120-4155477.