As
our technology advance, big data is now a multibillion-dollar business
opportunity. Business organizations from retailers to manufacturers are fast
discovering the power to transforming consumer information and behaviors into
strategic-profit generators through database systems, or “big data”. For
example, McKinsey Global Institute, the research arm of McKinsey & Co.,
estimated a profit increase of 60% in their retail sector by incorporating big
data. Furthermore, a recent Boston Consulting Group study also revealed that
consumer data could help companies achieve greater business efficiencies and
customize new products. However, while harnessing the power of data analytics
is clearly a competitive advantage, overzealous data mining can easily backfire.
In her article, “Big data blues: The Dangers of Data Mining,” Cindy Waxer discusses
the danger of privacy invasion from database mining and analytics.
As
companies become experts at extracting information and data mining, the
valuable consumer insights tends to overshadow individuality privacy. For example,
the upscale retailer Nordstrom used sensors from analytics vendor to obtain
shopping information from customers' smartphones each time they connected to
Wi-Fi service. As a result, the move drew widespread criticism due to privacy advocating.
Furthermore,
the clothing retailer, Urban Outfitters, also faced a class-action lawsuit for
allegedly violating consumer protection by unknowingly obtaining customers’
address from their credit card and ZIP code information. Facebook is also often
in the discussion of data privacy controversy; whether it's defending its privacy
policies or justifying its actions of sharing information with the National
Security Agency (NSA).
In
general, although the big data strategy promotes business prosperity, but the
consequences of big data abuse is also detrimental. Researches shown that 1 out
of 3 Internet users said they have stopped using a company's website or have
stopped doing business with a company altogether because of privacy concerns.
According to Kord Davis (A digital
strategist and author of Ethics of Big
Data: Balancing Risk and Innovation), "The values that you infuse into
your data-handling practices can have some very real-world consequences". These
days, the seemingly solution to the privacy concerns are honesty, "Organizations
that are transparent about their use of data will be able to use that as a
competitive advantage," predicts Davis. "People are starting to
become very interested in what's going on out there with their data, so
organizations that have practices in place to share that information ethically
are going to be in a much better position to be trusted," he added. Though
honest business organizations are more prone to sustainable success, many CIOs
and data scientists are struggling with the balance between deriving valuable
information and insights from confidential data while respecting consumers'
rights and even earning their trust.
Overall, techniques for manipulating
data progressively multiply. As the technology advances, database systems have
become one of the most valuable assets for businesses. Nowadays, data
acquisition and mining tools have proved to enhance business efficiency, and
ultimately profitability. However, although a large portion of informational database
concerns are focused on cyber security, the controversy surrounding big data
abuse should also not be taken lightly. IT professionals are discovering that
balancing the power of sophisticated algorithms with consumer rights is about
more than avoiding bad publicity or lost sales. In sum, it is very important
for businesses to acknowledge the importance to respect consumer privacy and invest
in innovative approaches to prevent data abuse.
Waxer, Cindy.
"Big Data Blues: The Dangers of Data Mining." ComputerWorld.
ComputerWorld, 04 Nov. 2013. Web. 12 Apr. 2014.
<http%3A%2F%2Fwww.computerworld.com%2Fs%2Farticle%2F9243719%2FBig_data_blues_The_dangers_of_data_mining>.
No comments:
Post a Comment