This document discusses how consumers are the legal owners of their own data and outlines a framework for building trust with consumers based on this principle. It notes that regulations like GDPR are strengthening data privacy laws and consumers are increasingly concerned about how their personal information is collected and used. The document argues that companies should view consumers as partners rather than just as sources of data and revenue, and that a new "Personal Economy" could emerge where consumers are compensated for the value of their own data.
3. GAFA – Gang of Four
281.8 306.1 479.5 538.6
Market capitalisation ($bn)
*Source: Thomson Reuters.
Stock prices as of 28/04/2016.
1,606
Combined market
capitalisation
The combined market capitalisation* of these companies is higher than
Spain’s GDP for 2015, which reached the level of c.$1.42tn**.
**Source: World Bank
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4. Property Rights – Hernando De Soto Polar
De Soto assigned property rights to
Peruvian farmers and demonstrated that
behaviour changed as a result.
“When people have assets, they can build wealth. Data is the
most fundamental asset.”
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5. Shape your industry by changing your business model
Everything is network-based, not linear – Everything is Multi-stakeholder
Company’s ability to shape
industry dynamics
Company market
power increases
Company valuation
increases
Step 1
Micro
Step 2 Step 3
Macro
Business model/Transaction
Goliath/
David
Partnership
Building Net
New
Revenue
Industry > Ecosystem
Distribution > Platform
With Network Effects
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6. Individuals should own their own data – it’s a question of timing
“We believe that consumers are going to take ownership of information about
themselves and demand value in exchange for it. As a result, negotiating with
consumers for information will become costly and complex. That process has already
begun to unfold, but it could take several years to play out across broad segments of
customers and products.” – John Hagel
https://hbr.org/1997/01/the-coming-battle-for-customer-information: A version
of this article appeared in the January–February 1997 issue of Harvard Business
Review. John Hagel III is Founder and Chairman of the Deloitte Center for the
Edge, a research centre based in Silicon Valley.
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Trusting/Unconcerned - consumers who are happy to share their personal information if they trust the company
Cautious/Fundamentalists - consumers who would prefer not to share their personal information unless they have to
Rationalists/Pragmatists - consumers who will share personal information if the reason is explained clearly