Privacy Trends for 2014

Consultations by E&Y have led to the identification of several trends evident in emerging and growing technologies which have privacy implications. These trends include the anonymization of big data without gaining permissions, growing numbers of cloud providers, and new memory techniques in computer usage, among others. For a summary of their findings, check out the E&Y website.

The Quest for Talent Points to Changes Needed in our Educational System

There is no question that data analytics is taking a front row seat in business management and strategy. Last October a group of top executives from leading companies in this field met to discuss a number of important issues of concern to them. The following five issues topped the list:

• Are data and analytics overhyped?
• Do privacy issues threaten progress?
• Is talent acquisition slowing strategy?
• What organizational models work best?
• What’s the best way to assure adoption?

A good deal of attention was given to the issue of finding talent - i.e, qualified staff. "Talent is a hot issue for everyone", they said. They added that "they need more “translators”—people whose talents bridge the disciplines of IT and data, analytics, and business decision making. These translators can drive the design and execution of the overall data-analytics strategy while linking IT, analytics, and business-unit teams. Without such employees, the impact of new data strategies, tools, and methodologies, no matter how advanced, is disappointing."

"A widespread observation among participants was that the usual sources of talent—elite universities and MBA programs—are falling short. Few are developing the courses needed to turn out people with these combinations of skills. To compensate, and to get more individuals grounded in business and quantitative skills, some companies are luring data scientists from leading Internet companies; others are looking offshore."

This is a major failing of our education system. Most young people go to university to be able to get a good job (The universities are not the best one to do the job, but then that is the way society has organized itself over the past number of years), they spend very large sums of money to get that education, and then find that their degrees and courses are out of touch with the needs of the business world. 

One of the problems is that the world is changing very quickly and the universities, not being geared for rapid change, can't keep up. They need help, primarily from the communities for which they are trying to provide "talent". That doesn't mean more advisory boards. There are lots of those and they are not helping. It means more active help, in terms of joint ventures, active involvement in program delivery and a strong say in curriculum delivery. Some if this is anathema to the educational establishment. But they need to change. We need to change the system to place less reliance on the universities in delivering the skilled people that businesses need. The best way to do that is to extend the deliver system beyond the universities.

That's not only in the interests of business and the students, it is in the interests of society generally. A summary of that meeting of executives is on this website.

The World Wide Web - An amazing 25 Years.

Last month, the World Wide Web had its 25^th birthday. It was in 1989 that Sir Berners-Lee came up with the idea that has changed the world in ways that would have been unimaginable then. It’s hard to believe the massive extent of change that has taken place in those short 25 years, which is an incredibly short period of time in the grand sweep of history.

Prior to 1989, the Internet existed without the World Wide Web. Many people think the two are the same, but they are not.  The Internet is a large network of computers and other devices, that enables computer files to be stored and shared with others on the network. Prior to the Web, the files were stored under various hierarchical arrangements, mostly the old tree form, which required going to specific servers and searching for a particular file. And they didn’t have Google then to do the searching.

Berners-Lee’s idea was to connect the access to the various files by using links to enable direct access to them. With those links, the resulting system would resemble a spider web. The idea now seems very elementary and basic but then it was revolutionary. And of course, it wasn’t as simple as all that when you got down to actual implementation.

It was in 1989 that Berners-Lee submitted a proposal to CERN management on the subject, entitled “Information Management: A Proposal”.  The paper is still available on the CERN site. While Berners-Lee laid the groundwork, the Web didn’t really take off until 1990, when the Browser Mosaic was released. It was the first graphical browser and made the navigation of the Web easy and intuitive. And the Pew Research Centre has done some great research on the growth in the Internet since that time, showing, among other things, that the percentage of American adults who use the internet has grown from 14% in 1995 to 89% in 2010. They catalogue why that has been a good thing. And it has. Check it out.

The Internet epoch has been quite a ride! Just imagine what will happen in the next 25 years!

Companies Missing the Boat on Using Big Data to Control Fraud

An analysis by Ernst & Young shows that most companies are not even aware of techniques in analyzing big data that can be used to help them prevent fraud and other forms of corruption. Techniques known as Forensic Data Analytics (FDA), focus on risk analysis and mine the data for indications of illicit behaviour. These techniques are known to forensic specialists but are not widely known to companies generally. However, companies could be using them and should be considering them for inclusion in their control oriented big data analyses. For a copy of the E&Y study, follow this link.

Mesh Networking - A Disruptive Technology?

A new chat facility - FireChat - makes use of a new feature in IOS7, Apple's new operating system, that enables phones to communicate directly without the use of cellular networks using Bluetooth or Wifi. To do so, they must be within range, which means for Bluetooth about 12 feet and for Wifi about 100 feet, depending on the strength of the network.

However, phones beyond range can connect using a technique called mesh networking, where phones can connect through a series of devices within range of each other. Such mesh networks could theoretically extend for very long distances.

Since cell phone charges can be quite expensive, some would say exorbitantly so, there is a good chance that if mesh networking works well, it will be popular. For those companies, it could be disruption to their comfortable lives - a true disruptive technology.

Check here for a story on FireChat.

Google Bringing Back the Wristwatch

Google is bringing back the wristwatch and reinventing it at the same time. Check it out:
http://www.theglobeandmail.com/life/home-and-garden/design/five-reasons-the-new-google-watch-will-do-wonders-for-your-life/article17577604/#dashboard/follows/

Those Click-throughs Don't Mean Much

The metrics we use to measure the success of our websites are coming under attack. That's not entirely new. People have for some time have realized that the number of hits on a website is a misleading metric. A single person can generate dozens of hits in a few seconds and never read a word. Number of visits is less misleading, but nevertheless not a great indicator of whether the content was actually consumed.

Research is now showing that the situation is even worse than we thought. The average attention span of a visitor to a web page is 15 seconds. And the curve tends to bell out at the bottom.

Yet companies spend vast amounts of money on trying to make their websites interesting and attractive. They add in advertising that is designed to grab attention. One thing we know, banner ads don't work.  They aggravate. And people don't click through them to the content. There's even a name for it - banner blindness.

A recent trend in website design is being called the attention web. It focuses on new metrics that measure attention rather than clicks. On finding ways to get readers to actually consume the content. Less attention is being paid to attention grabbers - an apparent contradiction. And more attention is being paid to design, on developing quality content. These are healthy trends and should lead to better websites. For more on the attention web, check out this article.

Audit Committees Increasingly Uncomfortable About Cyber Threats

Audit committee members are becoming increasingly concerned by cyber threats but the quality of information they receive has declined over the last year, according to a new survey by KPMG. 

KPMG’s Audit Committee Institute survey of nearly 1500 audit committee members worldwide, including over 120 in the UK, found that cyber is one of the areas audit committees feel least comfortable about. 

Globally, 45% of respondents did not feel that their committee devoted enough agenda time to the issue. But this rose to nearly six in 10 (58%) in the UK.

Indeed, KPMG’s survey found that concern about cyber has doubled amongst UK audit committees in the last year. Whereas a year ago a quarter of UK respondents (24%) were not satisfied with the quality of information received about cyber risks, now nearly half (47%) believe that cyber information needs improvement.- See more at this website.

Volume, Velocity, Variety - The Hallmarks of Big Data

Analytics are needed to make use of big data. That's no news. But the importance of analytics can be fully appreciated when you consider its the beginning, not the aim of big data usefulness. Big data is characterized first by volume. Tremendous volume. That's usually the thing people think of first. It's also characterized by velocity, which is marked by real time. Much big data is real time data. High velocity calls for fast analysis. Finally there's variety. Some big data is structured and a lot is not. Classification is critical to further analysis.

So big data in itself is not particularly useful. The three - v attributes must be addressed first, and then the real use analysis can begin. For more, check it out.

Mobility in Global Markets

Going global is an old story. but there's a newer twist when it involves moving into the emerging markets of the world. In many of those markets, which of course are growing rapidly, there has been a classic lack of infrastructure, making transportation and communications difficult. This applies particularly in many of the growing countries of Africa, as well as larger more advanced countries like India. For any company interested in global markets, these countries are an essential part of their strategy.

One of the interesting characteristics of these countries is that they have essentially leapfrogged the traditional infrastructure development cycle, through the advent of wireless, mobile products like smartphones. While such linkages such as landline connections are relatively low in many areas of emerging countries, the numbers of mobile phones in use is large. For example, recent surveys by Pew Research reveal that only 23% of people in emerging countries have landline connections (and in some African countries it's as low as 1%), while over 90% on average have a mobile phone. That's a staggering finding, and one that is shaping the marketing strategies of global countries everywhere. For an interesting article on this subject, check it out here.

The Board's Role in Big Data Strategy

EY has issued a report dealing with the very timely issue of the Board of Directors' role in determining how their company should approach big data. What questions the Board should ask. What the risks and benefits might be.

Big Data analytics are all the rage in corporate strategy, from marketing to product development, product support, customer relations, and more. How the data are obtained and analyzed is critical to the objectives. It can be done in a way such that the benefits exceed the costs or it can be a tremendously expensive boondogle. Ultimately the Board will have to take some responsibility and the kinds of questions raised in this report are important to help the company head in the right direction. For the report go to the EY website here.

2014 XBRL International Conference

Governments and businesses worldwide are collecting more and more data in a structured format that makes it more usable, timely and actionable. Accelerating developments in standards-based reporting are opening up significant new opportunities for regulators, accounting professionals and financial market participants alike. These and other themes will be the focus of discussion at the XBRL International Conference to be held in Orlando on June 9 - 11, 2014. Check it out at http//conference.xbrl.org.

Security for the Internet of Things

Your toaster could be used by a hacker to burn down your house. Think about that.

As our home and business networks begin to expand to our toasters and overs, we need to give a thought to the security implications of the internet of things. Whenever new devices get added to a network, it brings in new security vulnerabilities. What kind and how serious they might be varies, and the point is they need to be evaluated.

The source of the vulnerabilities can be found in the nature of the technology being used, what kind of operating system software the devices have, how they communicate with other devices and the internet (Wifi, Bluetooth, etc.) and what, if any, security safeguards have been built in.

We're at an early stage and there are lots of questions that can't be answered. But the questions still need to be asked.

Here's a bit of a roadmap.

Big Data Helps us Define Cities

The analysis of big data continues to tell us more about ourselves. Location based data, which identifies the location of mobile users, is being used to examine various attributes about the population, including population densities, commuting patterns, growth patterns and mobility.

One of the outcomes of this research is to define the boundaries of existing cities, a classic problem of city planners. After all, the political boundaries are often almost arbitrarily determined, with the result of, for example, rural and urban dwellers having little in common being clustered together under one central urban government. The determination of the natural boundaries also helps city planners to evaluate the dynamics of proposed development schemes, by knowing where the city is likely to grow.

For more on the study of population using big data, check out these references:
http://www.technologyreview.com/view/523926/how-a-new-science-of-cities-is-emerging-from-mobile-phone-data-analysis/
http://www.technologyreview.com/view/524381/natural-cities-emerge-from-social-media-location-data/

Swipe and Sign Credit Cards to be Gone

The traditional swipe and sign credit cards are all but gone in most countries, including Canada, but in the US they still dominate. However, this is about to change, and the switch to pin-based credit cards is expected to lead to a significant reduction in credit card fraud.
Check this article on the subject.

The Internet of Everything

The Internet of Things involves connecting all kinds of objects to the internet such that the can yield and receive data. This would include cars, motorboats, televisions, coffee makers, roads, - you name it.

The Internet of Everything (IoE) extends this to include the connectivity and systems that enable those things to be integrated, monitored and managed. So says Cisco, the purveyor of connectivity and proponent of the Internet of Everything.

The IoE has a lot of potential. For example, consider interconnecting all the infrastructure of a city, including the water, sewer, power, roads, parking spots, bridges, garbage cans, dumpsters, - everything. Then think about the efficiencies that could be achieved by having real time data from those things to analyze so that resources can be directed to them when needed - and only when needed. Garbage can be collected only when the containers are full to a certain level, sewers pumped clear in areas where they start to back up, emergency crews given the best route to their destination on a moments notice. People could find the best parking spot when they need it. (And the cars will be able to drive themselves there and park themselves).

The Internet of Everything will revolutionize the way we live in cities. Some of it is already here, but the IoE extends the degree of connectivity and the ability to manage the components such that they become integrated into our daily lives. We will see IoE strategies being adopted by cities over the next few years. It's already started, given the example of Barcelona, Spain which has begun implementation with interesting results. Others are sure to follow. For more on Cisco's vision, check out this report.

Ignoring Social Media Not an Option for Companies

A survey conducted by Grant Thornton and Financial Executives Research Foundation on the uses that companies are making of social media found that 55% feel social media will be an important component of corporate marketing efforts going forward and 66% see their company's use of social media increasing over the next 12 months. Most agree that social media is a fact of life for companies and must be addressed. On the other hand, most do not yet have policies on its use.

Companies are using Linkedin the most, with Twitter and Facebook following closely.

Use of social media extends well beyond marketing now, into all areas of corporate communications, including recruiting, customer care and investor relations (the latter is not mentioned in the report).

Social media is an integral part of some companies' communications strategy, and ultimately this will be the norm.

For the report, please go to the Grant Thornton site.

Your Newest Android Device - The Automobile

Google has announced the formation of the Open Automotive Alliance (OAA), which is a consortium to advance the automation of automobiles. Their prime objective is to have their Android operation system adopted as the technological backbone for cars.

The OAA initially has representation from the automobile industry; specifically General Motors, Honda and Hyundai and Audi.

The potential is enormous. Cars already have extensive technology, but that technology is diverse and not necessarily coordinated. For example, the engines and drive trains are extensively automated. Just try finding out what's wrong with your car without a diagnostic machine from the dealership. it's expensive and inconvenient. Just think if you could use your phone of tablet to access your car and do your own diagnostic.

Or how about linking together the GPS, road sensors, telephone and entertainment systems? All on a system that is standard, upgradable and widely used.

it would actually reduce the risk of hacking because a standardized automotive system could be built so as to forestall the known hacker threats.

And Google is the leader in self drive autos, which are the future, and the Android system could play a role in operating these systems. For example, you could plot your route the night before on your android device, and then upload it to your car. when you leave the next day, lean back and read a good book along the way - on your Android.

The OAAs website is at http://www.openautoalliance.net

SDCs on the Way

Self Driving Cars (SDCs) have been announced for production by some of the big car makers by 2020 and are being predicted to reach the mainstream by 2035 with around 12 million cars on the roads by that year. There are various kinds of SDC in the planning stage, basically ranging in the degree to which they are actually capable of driving without driver intervention. Gradually, of course, they will proceed to the point where little or no intervention is required. A recent study also predicts that by 2050, most of the cars and commercial vehicles on the road will be SDCs.

Kind of scary when you think abut it - eighteen wheelers charging down the road without a driver on board. But then we already have jumbo jets that can fly and land themselves and we don't worry much about that -don't even think about it much. One difference however is that the jets have pilots on board to take over when things go wrong. With the trucks, this would be the situation for quite a while as well, but there is a likelihood that eventually the drivers will be phased out.

Lots of implications of SDCs, social, business and otherwise. Here's one article on the subject.  

The Nightmare of Cell Phones on Planes

Anyone who travels very much shudders at the thought of being stuck on a long flight beside a chronic cell phone user. For North America, that has been banned by the authorities because calls on planes could interfere with ground based cell stations. However, newer technologies have changed all that. It is now possible to avoid such interference and it is likely that the bans will come down.

However, the good news is that the airlines need to invest in the technology for their planes and allow voice calls to be made. Many of them are reluctant to do that because of the customer service nightmare that could result.

Cell service is already allowed on planes in various other parts of the world, notably in parts of Europe, the Middle East and Asia. The experience there is that most cell phone users use text and email rather than voice, at least in part and maybe largely because voice calls are treated as international data roaming charges and anyone who has been stuck with an international data roaming cell phone bill knows what that is all about. The rates are scandalously high.

Airlines will be able to allow texting and other data usages of cell phones and block voice communications. There's a pretty good chance that they will do just that. There's a very strong demand for texting, internet and other data usage on flights, but a lot of resistance about voice calls.

So right now we are entering into a time of change and many travellers will be watching what happens with bated breath. Here's a great article on the subject.