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Putting a Value on User Data

The Atlantic has a brief but excellent analysis of the economic value of an internet user's data; see here. This is important - a lot of business models, and hence valuations of businesses, are dependent on the successful exploitation of data gathered about internet users. However, the article also points out a possible idiosyncrasy of human nature that may encourage businesses to erode customer privacy. Put simply, customers may put less value on protecting their personal information if they think businesses will obtain it anyway. Time will tell if commercial drivers will necessarily result in more and more private information being revealed about all of us. If it does, the companies gathering and managing that data might think themselves better off, but that is not assured - where customers do not act to protect themselves, governments have a habit of intervening.

The Atlantic has a brief but excellent analysis of the economic value of an internet user’s data; see here. This is important – a lot of business models, and hence valuations of businesses, are dependent on the successful exploitation of data gathered about internet users. However, the article also points out a possible idiosyncrasy of human nature that may encourage businesses to erode customer privacy. Put simply, customers may put less value on protecting their personal information if they think businesses will obtain it anyway. Time will tell if commercial drivers will necessarily result in more and more private information being revealed about all of us. If it does, the companies gathering and managing that data might think themselves better off, but that is not assured – where customers do not act to protect themselves, governments have a habit of intervening.

Eric Priezkalns
Eric Priezkalnshttp://revenueprotect.com

During his career, Eric has been a Director of Risk Management for a national telco, the Chief Executive of the Risk & Assurance Group, a Chief Marketing Officer for a software business, a consultant, a public speaker and the publisher of Commsrisk since its launch in 2006. Look here for more about the history of Commsrisk and the role played by Eric.

The comms providers that Eric has worked for include Qatar Telecom, Cable & Wireless, T‑Mobile, Sky and Worldcom. In addition to his proficiency at speaking about the current scamdemic, Eric is also a qualified chartered accountant and a subject matter expert in consumer protection, enterprise risk management, fraud prevention, data integrity and billing accuracy. Eric was the lead author of Revenue Assurance: Expert Opinions for Communications Providers, published by CRC Press. He can be reached through the contact form on this website.

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