The big news at the end of this last week was that the US
government has been collecting internet and telephone data in order to combat
terrorism. Is anyone really
surprised?
I have been involved in what can be done with big data since
1987. I never worked with government
but only commercial businesses that had large amounts of data in industries
that were undergoing tremendous change.
Our biggest customers were telephone companies, large retailers,
airlines, and banks. As you may
recall, the 1980’s began a period of deregulation. AT&T agreed to be broken up into separate units in order
to foster competition. The Airline
Deregulation Act of 1978 took the federal government out of setting fares and
determining routes. The financial
sector saw the consolidation of banking and insurance and the repeal of
Glass-Steagall. The change in
retail can be attributed to one firm: Wal-Mart dominated its category and
influenced all of the industry with a big-box format, sourcing from low-cost
manufacturers across the world, every day low prices and aggressive expansion.
What did all the firms in these industries do with all this
data? Typically they figured out
who their customers were. Prior to
these changes either they didn’t care because they were operating in a monopoly
environment and didn’t need to cater to customers. Or, they operated at a small enough scope that the managers of
the stores knew who their customers were from personal interaction. However, once deregulation and
consolidation occurred they couldn’t rely on personal knowledge; these
businesses had to rely on data.
The volume of data and the speed with which they processed
it kept increasing. They modified
the capturing of the data at the customer touchpoint so that it could be collected
in more detail. They also
introduced loyalty cards to induce customers to continue shopping or flying
with them; but, more importantly, the loyalty cards allowed them to know when a
customer came back and what they were buying; and, they got contact information
for these individuals.
In other words, they could identify their customers; they
knew where they lived, what their demographic are, who lived with whom. Companies knew what they bought and
when they bought it. With
telephone customers, they knew who was calling whom, how long they
communicated, how often, and at what time of day these communications
occurred. The financial
institutions knew your assets and how you spent your money. The transportation firms knew where you
traveled, when, and how long you stayed.
Then in the 1990’s the mobile phone became ubiquitous and
the internet became consumer oriented with the changes derived from
telecommunications deregulation.
We could communicate anywhere with the phone, web, email, text and
tweet. We could find out about
anything from anywhere. We could buy
anything from anywhere. The amount
of data exploded and the amount of change to our lives was massive. As Thomas Friedman stated so well in The World is Flat, the world became
globalized.
The second thing these firms evolved to doing with all this data
was predicting and then influencing what a customer was going to do. They know what products and services
you will likely buy. They know
when you’ll make this transaction. They predict how much bandwidth,
airplane seats, teller machines, etc. will be needed. Retailers know how much inventory they
will likely need for a product that has never been sold. On Black Friday they know within a few
hours of stores opening on the East coast whether their predictions about
retail customer behavior is accurate or not and then modify pricing before
Denver stores even open. They can
instantaneously customize the webpage and the products offered to you based on
what they know about you and your past behavior. Online advertisements are
presented instantly to you because of where you’ve browsed in the past, who
you’ve friended, and what you’ve liked.
Which leads me to my first question to you. We have given very personal information
about ourselves to the businesses we choose to interact with. They know us intimately and seem to
adapt to our whims instantaneously.
Now, place yourself in the federal government
as someone responsible for defending us against terrorism. Since the Oklahoma City bombing almost two decades ago, we
have had a torrent of people who want to fly airplanes into iconic buildings,
bomb public events and disable our digital economy. Would you not want to use this information available about individuals
to determine their nefarious whims?
Why should you be surprised that it has occurred?
When this kind of information is available and used openly
in the commercial sector for twenty-six years, I can only assume that a
government would use it, as well. I
admit I don’t like the thought of it with my libertarian ideal of privacy. However, I like my frequent flyer miles
and the discounts from using my loyalty card at supermarkets; I sell stuff on
Craig’s List and I buy from Amazon; I use LinkedIn to market myself. I use these things because I perceive
them to be in my interest. But, if
I knowingly relinquish my privacy to an internet search engine, I am
relinquishing this information to government, too.
In some ways, its similar to the argument I made in my post
on
GMOs; in that case, if genetic material is made available to the
environment, it will spread and you cannot predict how or where.
Genetic material is a code; it is
information.
Likewise, any digital
information, once disclosed on the internet, is going to spread; you cannot
predict how its going to be used nor where it will be used.
Maybe it’s a law of nature that
information, genetic or digital, cannot be contained.