Ok, so here we are today and we have significant convergence. We can’t just address or assess Big Data or the IoT or Machine Learning or Predictive Analytics as they are all being used together.
To begin let’s establish a base understanding of Big Data.
Base understanding
Positive application
Dangers
Now let’s look at how they can be abused and we’re led into an Ethics discussion.
Continuing on, did you know that some banks, upon account opening will look at the user’s facebook page and increase the interest rates they charge should the user listen to rap music? Did you know that some wireless pacemaker manufacturers will not release the information back to the customer that has the pacemaker (i.e. they won’t reveal what they’re collecting to the person they’re collecting it from). Consider this information is being collected and used by businesses and governments without our individual knowledge or control and we individuals have no democratic voice in the collection and use of Big Data.
Dangerous application
From the Colbert Report: Target’s marketing and predictive analytics which broke in a New York Times article… I apologize for his satirical humor as it is not for everyone but it is a very good presentation and illuminates not only the danger to personal privacy but the extent of what companies (and governments) can infer about us. Note the video is dated (e.g. 2012) and predictive analytics based on previously dark data and machine learning is advancing at a staggering rate.
Colbert’s Surrender to a Buyer Power
Target Ethics
Now let’s recall what we have learned to date:
We have spoken about the fiscal benefits of the “Long Term Value or LTV” of consumers as it is is better to keep your existing customers than to continually seek new customers. Target clearly embraces this.
There are also ethics involved but recall ethical perspectives can be based on “Stockholder Theory”, “Stakeholder Theory” or “Social Contract Theory” so while we may not agree with Target’s or any organization’s use of publicly available information and predictive analytics they are simply doing what’s best for their stockholders… and on that note let’s continue.