There’s an argument that goes like this:
- Companies are making money with personal data, and
- They are getting this data for free. Therefore,
- People should be able to make money with that data too.
This is not helpful framing, if we want to get full value out of our personal data. Or even to understand what the hell personal data is.
Stop and think about this for a second:
- Everything on your hard drives is personal data.
- So is every thing you own, if you bother to put it in the Internet of Your Things
- So is everything that comes into your life. For example, the pothole in the road in front of your house.
That data has far more use value than sale value. This use value is almost entirely untapped. Thinking about its sale value requires that you think the same way big companies do. This is as big a mistake in 2013 as it was —
- in 1980 to think about personal computing in terms of what big enterprises did with mainframes; and
- in 1993 to think about personal networking in terms of services provided by phone and cable companies.
In 1982 the IBM PC came along, and MS-DOS. And then the Macintosh in 1984. By 1985 there were tens of thousands of personal apps running on personal computers, doing far more than any company could do with its own computers, no matter how big those computers were. This turned out to be good for everybody, including the big companies with the big computers.
Likewise, in 1995 the Internet came along in a big way (ISPs, email, browsing, dial-up, e-commerce), and within months it was clear than anybody could network together with anybody else in the world at a cost that rounded to zero, and with a degree of freedom that was unimaginable within the systems controlled by phone and cable companies. (Eighteen years later, the phone and cable companies, with help from the copyright maximalists in Hollywood, are still trying to corral the Net’s horse back into the old barn.)
What companies are doing with your personal data today is all happening inside a B2B — Business-to-Business — context. That context is as limited as mainframe thinking in 1980 and telco/cableco thinking in 1993.
The other day in London we were talking with Nic Brisbourne about the massive quantity of opportunity and ready-to-spend money on the demand side of the marketplace — and the ironic absence (outside the still-small VRM world) of interest by developers in equipping demand to engage and drive supply. The market seem stuck inside the same old supply-driving-demand mentality. That’s what you hear coming from the mainframe-think world of Big Data mongering and analytics today.
Mind these words: Big Data talk today is as clueless about what people can do for themselves as mainframe talk was in 1980 and networking talk was in 1993. It’s big business-as-usual, in its big B2B bubble, talking itself into ever-ripening stages of vulnerability to massive disruption by the C’s of the world.
Speaking of which, we also met in Europe with Qiy, MesInfos, Midata, Intently, Mydex, Privowny and other VRM efforts (who will be insulted that I haven’t yet listed them here, but we can correct that). All of them are laying the groundwork required for unlocking the full use value of personal data — and not just its sale value, which is tiny at best anyway. Bravo for them, and for us as the beneficiaries of their good work.
Hi Doc – as with those other revolutions it may take a community of hackers working together for fun, or in pursuit of side project, to pull together the protocols and connections that will liberate the value locked in our data.
When I asked you how I could recognise a VRM startup that is taking off you said I should look at the number of interested developers. I think that’s great advice, for investors and, in a roundabout way, for entrepreneurs.
Was great meeting you and Joyce, and thanks for the mention.
I just came across this today. Kaliya has been mentioning you to me for some time. We met through my efforts to launch a data-sharing platform that helps business owners use their private and public data to take charge of commercial credit. Now I’m signed up for the VRM and IIW events later in October. Really looking forward to meeting you!