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Sue Daley

Head of Big Data, Cloud and Mobile

sue.daley@techuk.org

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www.techuk.org

techUK Submission to the inquiry on ‘The Big Data Dilemma’

House of Commons Science and Technology Select Committee

September 2015

techUK submission to inquiry on ‘The Big Data Dilemma’

House of Commons Science and Technology Select Committee

2

Summary of Key Recommendations Outlined In The Submission

techUK recommends the establishment a UK Big Data Capability Audit. This audit should

address understanding of Big Data, identify best practice examples of Big Data exploitation

across all sectors and create a long term vision for the use of Big Data in the UK. The audit

should also identify key challenges to be addressed, consider what is needed to increase

public sector organisations’ awareness and understanding of the potential value of Big

Data and encourage the adoption of Big Data technologies as and where appropriate.

techUK recommends the audit follows a similar structure and focus of the recent reviews

conducted by Sir Mark Walport, Government Chief Scientific Advisor, Office of Government

Science into the Internet of Things1 and the future of UK FinTech2.

To ensure the benefits of Big Data are realised in the public sector, both in the delivery of

services and in driving better policy-making, techUK has previously recommended that a

specialist ‘Advanced Data Analytics unit’ should be set up to “leverage data analytics

across government”. This unit would include a mandate to increase understanding of the

opportunities of Big Data technologies within Government, experiment with emerging Big

Data technologies, and make advanced data analytics capabilities widely accessible

across Government3.

The current review of the Tier 2 (skilled) migration visa route should make it easier not harder

for firms to get the talent they need particularly for the tech sector and Big Data roles which

are in short supply. Many in the tech industry are concerned that reforms to Tier 2 will hurt

the ability of tech companies to recruit talent, which ultimately harms the UK economy. This

echoes a recent call from the Institute of Directors4.

Government should reinstate the post-study work visa or an equivalent route for the UK to

ensure that UK universities remain globally competitive and that talented graduates can

flow into the UK workforce, including into Big Data roles.

Consideration should be given to how Government and industry can work together to

rebalance the public debate and highlight the positive role of Big Data.

Additional resources should be allocated to the Information Commissioners Office (ICO) to

support public awareness raising activities in light of the increased volume and role of data

across all aspects of our lives.

A workable and harmonised data protection legal framework should be introduced that

includes a requirement to gain ‘unambiguous’ rather than “explicit” consent and maintains

1 HM Government (December 2014). Internet of things: making the most of the second digital revolution. Retrieved from

https://www.gov.uk/government/publications/internet-of-things-blackett-review 2 HM Government (March 2015). FinTech futures: the UK as a world leader in financial technologies. Retrieved from

https://www.gov.uk/government/publications/fintech-blackett-review 3 techUK (September 2014). Securing our Digital Future: The techUK Manifesto for growth and jobs 2015 – 2020, Retrieved

from https://www.techuk.org/insights/reports/item/2099-techuk-manifesto 4 City AM (August 2015). Business Warns Tories over Migration Curbs. Retrieved from

http://www.cityam.com/sites/default/files/edition/frontcover/Cityam%202015-08-14.pdf

techUK submission to inquiry on ‘The Big Data Dilemma’

House of Commons Science and Technology Select Committee

3

legitimate interest in order to ensure consumer’s privacy is protected and organisations

have a clear legal basis for benefiting from Big Data.

As recommended in the techUK Manifesto, a long-term funding base for science and

innovation should be ensured with set 10 year budget cycles to support the development of

a long term capital investment plan ensuring the continued support of Big Data R&D.

Future capital investment in Big Data R&D should focus on supporting projects and initiatives

that enable growth SMEs to get involved in Big Data R&D.

Consideration should be given to introducing Big Data R&D tax credits for SMEs and where

possible, results of Big Data R&D conducted by Government funded institutions should be

made public.

techUK submission to inquiry on ‘The Big Data Dilemma’

House of Commons Science and Technology Select Committee

4

Introduction and Executive Summary

techUK welcomes the opportunity to provide written evidence to the Science and Technology

Committee inquiry on “The Big Data Dilemma”. techUK is the industry voice of the UK tech sector,

representing more than 850 companies who collectively employ over 700,000 people, about half of

all tech jobs in the UK. These companies range from innovative start-ups to leading FTSE 100

companies. The majority of our members are small and medium sized businesses.

The UK has a fantastic opportunity to be a world-leader in the development, adoption and

exploitation of advanced Big Data analytics technologies, and is making steady progress to date.

However, as the Committee recognises in its call for evidence, there must be further attention given

to the scale of the social and economic opportunities for the UK. The Committee’s inquiry will play a

valuable role in shining a light on UK strengths in Big Data and techUK welcomes a balanced and

informed debate on how to mitigate risks and overcome challenges facing the development of Big

Data technologies in the UK.

techUK’s written evidence builds upon a number of the points raised previously in evidence to the

Science & Technology Committee on ‘Social Media Data and Real Time Analytics’5. techUK

provided oral and written evidence to the Committee under its previous Chair and would be

pleased to similarly engage during the course of this inquiry.

Our top-level points for the Committee are as follows:

Big Data allows us to see the world differently, to unlock, explore and utilise valuable insights

and knowledge previously hidden within large datasets. Big Data is fundamental to

innovation in the twenty-first century global digital economy.

Big Data is a UK success story – Big Data is underpinning the digital transformation across

sectors and industries including retail, media and fintech and is a key driver in enabling

digital entrepreneurialism. We are only at the beginning of the evolution of Big Data

technologies and must make concerted efforts to be a global leader to 2020 and beyond.

Big Data Analytics can play an important role in achieving Government objectives – The

harnessing of Big Data not only makes a considerable economic contribution to the UK in

terms of GDP and employment, but can also play a role as a driver of productivity right

across the private sector (an objective laid out by the Chancellor and Business Secretary in

the recent ‘Productivity Plan’6). Big Data should also play a fundamental role in improving

quality and efficiency in the delivery of public services in a parliamentary cycle which will

likely see sustained reductions to public sector expenditure.

However, a number of challenges remain – and government and industry must work

together to solve them in a positive and collaborative way. An era of accelerated

technological advancement puts an imperative on policy-makers to keep pace with the

latest market developments, moving in small successive steps rather than looking to overly

regulate nascent industries such as Big Data.

5 techUK (April 2014). techUK response to inquiry into Social Media Analytics. Retrieved from

http://www.techuk.org/insights/reports/item/1294-techuk-response-to-inquiry-into-social-media-analytics 6 HM Government (July 2015). Fixing the foundations: creating a more prosperous nation. Retrieved from

https://www.gov.uk/government/publications/fixing-the-foundations-creating-a-more-prosperous-nation

techUK submission to inquiry on ‘The Big Data Dilemma’

House of Commons Science and Technology Select Committee

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The digital skills gap is a major concern for industry, and if not overcome will impede the

UK’s ability to be a world-leader in Big Data development, adoption and exploitation. Tech

employers are crying out for more Big Data talent. Government must get the domestic skills

pipeline right for the future, and commit to a ‘smart migration’ policy which makes it easier

for tech firms to access the Big Data talent they need right now in order to grow.

Another potential barrier is the level to which the public understand and value Big Data

tools and technologies. More can be done to improve consumer understanding of the

benefits of Big Data. Too often public debate is conflated with discussions on social media

analytics, which is but one type of many types of data that can make up a Big Data set.

Communicating success stories that have positive social and economic outcomes should

be a priority for Government and industry alike.

Tech companies take data privacy and security concerns incredibly seriously – consumers

need to be confident and informed about how their data is used, and this holds true for Big

Data. Public discourse on Big Data often overlooks important aspects of how companies

keep data secure and will anonymise and pseudonymise data relating to individuals when

gathering analytical insights. The goal for policy-makers and industry alike must be for a

secure, widely-accepted and trusted legal framework for privacy that allows for business

innovation and monetisation while also offering individuals choices for protecting their

personal information in easy-to-use formats. Policy-makers can struggle to keep pace with

advancing technologies such as Big Data, and poor legislation that doesn’t adhere to this

goal threatens the future potential of Big Data in the UK. Our submission makes reference to

the draft General Data Protection Regulation currently being agreed in Brussels on which

techUK has a number of concerns.

Encryption technologies are fundamental in keeping Big Data sets secure. The coming

months will see increased focus on the role of encryption as part of wider debates on the

Investigatory Powers Bill. It is imperative for the UK’s economic security that encryption is not

undermined by introducing a single point of vulnerability. Similarly, access to data held by

tech companies by intelligence agencies must be undertaken in a clear, legal framework in

order to ensure public confidence.

techUK would be pleased to provide the Committee with further information on any of the points

made in the following submission.

techUK submission to inquiry on ‘The Big Data Dilemma’

House of Commons Science and Technology Select Committee

6

1 The opportunities for Big Data and the risks

1.1 In answering the first question posed by the Committee, techUK has structured our answer as

follows:

- A definition of Big Data and Big Data Analytics

- The scale of the economic opportunity for UK plc

- Opportunities for Private Sector Adoption

- Opportunities in Public Sector Adoption

- Risks to realising the benefits of Big Data

Defining Big Data

1.2 Before considering the Committee’s questions, techUK believes it is important that the

Committee sets out with a strong and workable definition of Big Data and Data Analytics.

1.3 ‘Big Data’ is a term used to describe very large data sets used and analysed to reveal trends

and patterns. Big Data has five defining characteristics: volume, velocity, variety, variability

and complexity7. It includes both ‘structured’ (such as traditional databases or spreadsheets)

and ‘unstructured’ data (such as photos, videos, and social media updates). While personal

identifiable information can be involved in Big Data, not all Big Data will be personal data.

Big Data will also involve technical data, such as traffic or ‘meta’ data as well as anonymized

data.

1.4 Data analytics is the examination of raw data through qualitative and quantitative

techniques and processes to uncover hidden patterns, unknown correlations and other useful

information and draw conclusions and drive decisions and actions to make better business

decisions. According to IBM there are five types of data analytics tools; predictive,

prescriptive, descriptive, diagnostic and cognitive89.

1.5 techUK believes Big Data offer great opportunities for both UK Plc, and the public sector to

unlock, explore and utilise valuable insights and knowledge previously hidden within large

datasets.

7 SAS (accessed August 2015). Big Data – What it is & Why it Matters. Retrieved from http://www.sas.com/en_us/insights/big-

data/what-is-big-data.html 8 IBM (accessed August 2015). Analytics Technology – overview. Retrieved from

http://www.ibm.com/analytics/us/en/analytics-technology/ 9 SAS (accessed August 2015). Big Data Analytics: What it is and Why it Matters. Retrieved from

http://www.sas.com/en_us/insights/analytics/big-data-analytics.html

techUK submission to inquiry on ‘The Big Data Dilemma’

House of Commons Science and Technology Select Committee

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The economic opportunity for UK Plc

1.6 Big Data is already making a significant contribution to the UK economy but we are at just

the beginning of that opportunity. The Centre for Economic and Business Research estimated

that by 2017 Big Data could contribute £216 billion and generate 58,000 new jobs in the UK

and Ireland10. It is also predicted that the market for Big Data technologies, software and

solutions will grow significantly in the next five years at a much faster rate than the overall IT

market. According to a recent information management market forecast report published by

Ovum, the global Big Data market will double in size by 2019 from its current estimated worth

of £10.9 billion to £20.1 billion11. This market growth will be driven by business adoption and

public sector use as the value of Big Data in providing insight and knowledge needed to

achieve core organisational needs and objectives is realised.

The opportunity for Private Sector adoption

1.7 Big Data analytics provide UK businesses with the opportunity to combine, consolidate and

then analyse large datasets to find previously hidden insights and knowledge. For example by

identifying patterns in customer behaviour, common customer likes and dislikes and

previously unknown customer requirements businesses can develop personalised goods and

services based on consumers’ needs and wants.

1.8 The opportunities for private sector adoption extend right across sectors and industries. For

example, retailers such as Argos12, John Lewis13 and Tesco14 are using Big Data and data

analytics to increase customer interaction, develop personalised services and reduce costs

and increase operational efficiency. Similarly, media companies such as Netflix15 are using Big

Data technologies every day to provide its users with a service that is personalised and

responsive, in real time, to customer needs.

10 Centre for Economic and Business Research (2012). Data Equity: unlocking the value of big data. Retrieved from

http://www.sas.com/en_us/insights/articles/big-data/big-data-big-value-huge-opportunity.html 11 Ovum (July 2015). Press release: Ovum Forecasts big data software to grow by 50%. Retrieved from

http://www.ovum.com/press_releases/ovum-forecasts-big-data-software-to-grow-by-50/ 12 ComputerworldUK (May 2014). Argos invests in big data to personalise customer experience. Retrieved from

http://www.computerworlduk.com/news/data/argos-invests-in-big-data-personalise-customer-experience-3514755/ 13 Splunk (accessed August 2015). John Lewis: Operational Intelligence Supporting Online Growth for a Billion Pound Website.

Retrieved from http://www.splunk.com/view/splunk-at-john-lewis/SP-CAAAM7C 14 Splunk (accessed August 2015) Tesco.com Accelerates Development Through Deep Understanding of Customer Behavior.

Retrieved from http://www.splunk.com/view/splunk-at-tesco/SP-CAAAHVG 15 Wired.com (accessed August 2015). Big Data Lessons from Netflix. Retrieved from

http://www.wired.com/insights/2014/03/big-data-lessons-netflix/

techUK submission to inquiry on ‘The Big Data Dilemma’

House of Commons Science and Technology Select Committee

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1.9 Financial institutions are adopting Big Data Analytics to provide same-day banking services to

corporate customers,16 enhanced services to credit card customers 17 and as a tool for

combating insurance fraud18

1.10 Overall the adoption of Big Data by UK businesses, of all size and sector, is being driven not

only by the ability to be more responsive to customers but also as a driver of operational

efficiencies, cost reductions, increased agility and as a tool for gaining a single view of the

lifecycle of data across an organisation and its supply chain.

1.11 Given the value of Big Data to UK businesses techUK believes the technology sector is well

placed to provide the technological tools and solutions that will underpin and enable the UK

Government’s current productivity agenda. Key to realising the objectives outlined in the

recently published Productivity plan Fixing the foundations: creating a more prosperous

nation19 will be the ability of organisations across industries to manage, understand and utilise

vast amounts of information in real time both quickly and accurately. Whilst Big Data receives

little mention in the Productivity plan, Big Data and data analytics will enable data to drive

the next wave of the UK’s digital revolution. As McKinsey stated in a recent report, “The use

of big data will underpin new waves of productivity growth and consumer surplus. For

example, we estimate that a retailer using big data to the full has the potential to increase its

operating margin by more than 60 percent”20.

Opportunities in the Public Sector

1.12 Big Data and data analytics have an important role to play in the digital transformation of

public service delivery. In particular, intelligent data analytics can help public service

organisations to increase the operational efficiency of public service delivery, reduce

expenditure and costs whilst delivering increasingly personalised services to citizens. This is

particularly important at a time when further budget cuts to public sector organisations are

expected whilst the demands on public services continue to rise.

16 InformationWeek (July 2014). 5 Big Data Use Cases to Watch. Retrieved from http://www.informationweek.com/big-

data/big-data-analytics/5-big-data-use-cases-to-watch/d/d-id/1251031?page_number=2 17 Accenture (2014). Big Success with Big Data. Retrieved from https://acnprod.accenture.com/us-

en/~/media/Accenture/Conversion-Assets/DotCom/Documents/Global/PDF/Industries_14/Accenture-Big-Data-POV.pdf 18 techUK (June 2015). Insurers increasingly realising the value of big data. Retrieved from

http://www.techuk.org/insights/meeting-notes/item/4611-insurers-increasingly-realising-the-value-of-big-data 19 HM Government (July 2015). Fixing the foundations: creating a more prosperous nation. Retrieved from

https://www.gov.uk/government/publications/fixing-the-foundations-creating-a-more-prosperous-nation 20 McKinsey and Company (2011) Big data: The next frontier for innovation, competition, and productivity. Retrieved from

http://www.mckinsey.com/insights/business_technology/big_data_the_next_frontier_for_innovation

techUK submission to inquiry on ‘The Big Data Dilemma’

House of Commons Science and Technology Select Committee

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1.13 Healthcare is a prime example of an area where the benefits of Big Data can be realised.

Speaking at a recent techUK event on realising the potential of Big Data in the Health and

Social Care, Dr Geraint Lewis, Chief Data Officer for NHS England, outlined the opportunity of

using large data sets to address the NHS' "Triple Aims" of improving the experience of care,

advancing health and care, and reducing the cost of care. Dr Lewis highlighted how

predictive risk modelling can start to predict and prevent incidences. However, he also

acknowledged that challenges remain as there can be false negatives and false positives

highlighting the fact that we are still in the early stages of the Big Data revolution.21

1.14 Civil servants more widely recognise the potential for Big Data to have a transformational

impacts on their work. In a recent techUK survey of civil servants, Big Data and analytics

came out as the most important factor for improving the efficiency of their work amongst

those in key digital roles (e.g. Chief Technology Officers, Chief Digital Officers, Chief

Information Officers, etc. – referred to as ‘Key role’ in the graph below)22.

21 techUK (July 2015). Realising the potential of Big Data in the Health and Social Care Sector. Retrieved from

https://www.techuk.org/insights/meeting-notes/item/5277-realising-the-potential-of-big-data-in-the-health-and-social-care-

sector 22 Data drawn from techUK Civil Servants Survey conducted by Dods Research, May 2015.

44%

51%

59%

37%

27%

63%

51% 52%

41%

22%

53% 53%

58%

46%

33%

Mobility Cloud technology Big Data and Data

analytics

Automation of

knowledge work

Internet of things

Which of the technologies listed below could help you become more efficient in

your work? Key roles

Senior staff

IT procurement or design

techUK submission to inquiry on ‘The Big Data Dilemma’

House of Commons Science and Technology Select Committee

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1.15 If Big Data is to play a role in enabling public service efficiency, and help Government to

“achieve more with less”, it is important that civil servants are equipped with a level of

understanding and awareness of how Big Data technologies and solutions can be used, as

and when appropriate, to address the challenges being faced by public sector

organisations. As techUK highlighted in its evidence to the Committee on ‘Social Media Data

and Real Time Analytics’, public services need to 'come of age' in adopting these

technologies.23

1.16 There is also a key opportunity for the public sector to drive better policy making within

Government through the effective use of Big Data, alongside the delivery of its services. The

insights and information that can be gained from Big Data in the public sector could be used

to ensure that policy decisions and Government action are made in response to the real time

needs of citizens. The potential for Big Data to address the NHS' "Triple Aims", outlined above,

is an example of the potential for Big Data to assist in real time policy making that could

affect individuals’ lives.

1.17 To ensure the benefits of Big Data are realised in the public sector, both in the delivery of

services and in driving better policy-making, techUK has previously recommended that a

specialist ‘Advanced Data Analytics unit’ should be set up to “leverage data analytics across

government”. This unit would include a mandate to increase understanding of the

opportunities of Big Data technologies within Government, experiment with emerging Big

Data technologies, and make advanced data analytics capabilities widely accessible across

Government24.

Risks to the full potential of Big Data being realised

1.18 If the UK is to achieve the full economic and social opportunities Big Data has to offer,

challenges remain that must be overcome. techUK wishes to highlight the following risks and

barriers to the development, adoption and exploitation of Big Data in the UK:

the existence of a Big Data skills gap (addressed in Question 3), covering the ability of tech

companies to recruit the talent they need for new products and solutions

the ability of the wider private sector and the public sector to adopt and exploit those tools

– this is in part also an issue of companies having people with the right skills to exploit the

benefits of Big Data, but this is more broadly connected to organisational culture and

leadership capabilities which identify the opportunities that Big Data bring in the

commercial context

an increased volume and complexity of cyber security threats and the need to maintain a

high level of cyber security (addressed in Section 6)

public debate that does not explain the social and economic benefits of Big Data

(addressed in Question 4)

consumer privacy and data protection concerns (addressed in Question 4)

23 techUK (November 2014). Parliamentary Committee Report on Social Media Analytics. Retrieved from

http://www.techuk.org/insights/news/item/2855-parliamentary-committee-publishes-report-on-social-media-analytic 24 techUK (September 2014). Securing our Digital Future: The techUK Manifesto for growth and jobs 2015 – 2020, Retrieved

from https://www.techuk.org/insights/reports/item/2099-techuk-manifesto

techUK submission to inquiry on ‘The Big Data Dilemma’

House of Commons Science and Technology Select Committee

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a legislative framework that curbs the ability to exploit the benefits of Big Data (addressed in

Question 4)

debate on the role and use of data to ensure the safety of the UK both in terms of cyber

security and national security (addressed in Section 6)

1.19 It must be remembered that the full opportunities of Big Data will only be realised if

consumers feel confident to share their data. Therefore ensuring Big Data is secure and

personal information is handled in an appropriate and transparent way are key to

maintaining consumer trust and therefore the future of Big Data in the UK. Later in this

submission techUK highlights the importance of ensuring the current Data Protection Act 1998

is reviewed in a way that ensures consent continues to play an essential role in empowering

consumers to make informed decisions about data.

1.20 While it is important that appropriate legal frameworks relating to data protection and

privacy are in place it is equally important that policy makers do not attempt to over-

regulate such a nascent and high-potential growth area. Given the speed in which the Big

Data market is maturing, techUK encourages policy-makers to keep pace by working with

industry on emerging Big Data best practice. Overarching legislation designed to curb the

maturation of Big Data should be resisted, and policy-makers should be clear on what is at

risk, both socially and economically, in such proposals. techUK provides further detail on the

legislative framework in question 4.

1.21 These potential risks to the development of Big Data in the UK are explored in more detail in

response to the questions below raised by the Committee.

techUK submission to inquiry on ‘The Big Data Dilemma’

House of Commons Science and Technology Select Committee

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2 Whether the Government has set out an appropriate and up-to-date path for the continued

evolution of Big Data and the technologies required to support it

2.1 The recognition by UK Government of Big Data as one of the “Eight Great Technologies”25

essential to achieving the UK’s economic growth and the allocation to date of significant

funding has been welcomed, particularly in a time of austerity.

2.2 In particular techUK would like to highlight the following Government initiatives that have

made a positive contribution to the development of Big Data:

Government funding of £189 million allocated to Big Data research in January 201326

Data Capability Strategy in October 201327

An additional £42 million for the creation of the Alan Turing Institute in March 201428

Publication of horizon scanning research paper29 in December 2014 exploring key trends

driving the development of Big Data.

2.3 18 months has now passed since the last Government analysis of the UK’s Big Data

capabilities. techUK believes now is the time for the UK to consider how the long term

economic and social value of Big Data can be fully realised. Government, industry and other

key stakeholders must come together to consider the future direction of Big Data in the UK,

identify possible challenges that need to be overcome and a strategy for how this can be

achieved to ensure the UK can realise the full value of Big Data.

Recommendations

techUK recommends the establishment a UK Big Data Capability Audit. This audit should

address understanding of Big Data, identify best practice examples of Big Data exploitation

across all sectors and create a long term vision for the use of Big Data in the UK. The audit

should also identify key challenges to be addressed, consider what is needed to increase

public sector organisations’ awareness and understanding of the potential value of Big

Data and encourage the adoption of Big Data technologies as and where appropriate.

techUK recommends the audit follows a similar structure and focus of the recent reviews

conducted by Sir Mark Walport, Government Chief Scientific Advisor, Office of Government

Science into the Internet of Things30 and the future of UK FinTech31.

25 HM Government (June 2014) Eight great technologies: Big data. Retrieved from

https://www.gov.uk/government/publications/eight-great-technologies-big-data 26 HM Government (January 2013) £600 million investment in the eight great technologies. Retrieved from

https://www.gov.uk/government/news/600-million-investment-in-the-eight-great-technologies 27 HM Government (October 2013) Seizing the data opportunity: a strategy for UK data capability. Retrieved from

https://www.gov.uk/government/publications/uk-data-capability-strategy 28 HM Government (December 2014) New Turing Institute at London’s Knowledge Quarter announced by Chancellor.

Retrieved from https://www.gov.uk/government/news/new-turing-institute-at-londons-knowledge-quarter-announced-by-

chancellor 29 HM Government (December 2014) Emerging Technologies: big data. Retrieved from

https://www.gov.uk/government/publications/emerging-technologies-big-data 30 HM Government (December 2014). Internet of things: making the most of the second digital revolution. Retrieved from

https://www.gov.uk/government/publications/internet-of-things-blackett-review 31 HM Government (March 2015). FinTech futures: the UK as a world leader in financial technologies. Retrieved from

https://www.gov.uk/government/publications/fintech-blackett-review

techUK submission to inquiry on ‘The Big Data Dilemma’

House of Commons Science and Technology Select Committee

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3 Where do gaps persist in the skills needed to take advantage of the opportunities, and be

protected from the risks, and how these gaps can be filled

3.1 A key challenge facing the UK in realising the full economic value and social opportunities of

Big Data is ensuring there are enough people with the right skills to fill the increasing number

of Big Data and data analytics vacancies. There are currently vacancies both in the tech

companies that are developing cutting-edge products and services, and also in those

businesses and public sector organisations looking to adopt and exploit the benefits of Big

Data.

3.2 The digital skills gap is one of the most urgent policy challenges facing the UK. Digital

technologies such as Big Data will be at the heart of growth and jobs creation in the next five

years and beyond. With recent estimates suggesting the UK is already losing a potential £2bn

per year32 from unfilled roles requiring digital skills, the scale of the gap over the next decade

cannot be underestimated. Indeed, a techUK survey33 of a cross-section of tech companies

undertaken in October 2014 suggested that 93% of tech companies believe the digital skills

gap affects their commercial operations and talent acquisition. 62% of techUK members

surveyed required more Big Data skills capabilities over the next five years. This figure rose to

71% of medium and large firms, suggesting that larger companies are more aware of the

scale of the opportunity and the need for talent to exploit the benefits. Similarly, Nesta

recently noted that two thirds of all companies struggle to fill at least one Big Data

vacancy34. Tech Partnership have predicted that by 2020 there will be 56,000 Big Data jobs in

the UK, a rise from 21,400 in 201335.

3.3 Having the right people with the right talent is key for ensuring the UK remains a leader in

Europe for Big Data. For the UK to realise the full potential of Big Data, techUK sees it as vital

that UK organisations have access to skilled professionals that can fill the following roles:

Data Infrastructure Engineer

Data Platform Engineer

Big Data Developer

Solutions Architect

Data Scientist

Data Analysts and Visualisation Expert

32 O2 and Development Economics research (2013). ‘Three quarters of a million digitally-skilled workers needed to power UK

economy by 2017. Retrieved from http://news.o2.co.uk/?press-release=three-quarters-of-a-million-digitally-skilled-workers-

needed-to- pow 33 Data drawn from private techUK Members Survey, October 2014 34 Nesta (July 2014) Skills of the Datavores. Retrieved from http://www.nesta.org.uk/publications/model-workers-how-

leading-companies-are-recruiting-and-managing-data-talent 35 Tech Partnership (October 2014) Big Data Analytics: Assessment of Demand for Labour and Skills 2013-2020. Retrieved from

https://www.e-skills.com/Documents/Research/General/BigData_report_Nov14.pdf

techUK submission to inquiry on ‘The Big Data Dilemma’

House of Commons Science and Technology Select Committee

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3.4 There are many roles involved in the extraction of insight from large quantities of data.

techUK can provide the Committee with more detailed input on each of these roles if

requested. In addition it is important to highlight the importance of leadership capability to

understand and identify the opportunities of Big Data when discussing the skills required to

optimise Big Data.

3.5 More broadly, a population with increased levels of digital skills will be better placed to

understand the social and economic benefits of Big Data, and the positive impact it can

have every day. It is important that Government is focused on boosting wider digital

understanding, particularly in an era when new technologies such as the Internet of Things

and Big Data are developing rapidly.

How these gaps can be filled

3.6 In July 2015, techUK published We’re Just Not Doing Enough: Working together to meet the

digital skills challenge which outlined 11 recommendations for Government, industry and

wider players to overcome the broader digital skills gap. The report identified the need for a

strategy to boost the domestic Big Data talent pipeline and address the immediate skills

shortage through a smart migration policy environment in the short term.

3.7 To foster a domestic pipeline of Big Data talent, techUK believes the skills shortage should be

tackled at all levels including schools, colleges, vocational education, apprenticeships,

universities and within industry. techUK has welcomed a recent policy briefing published by

Nesta and Universities UK outlining the state of supply and demand for analytical skills in the

UK and its recommendations on how to upgrade data analysis education and skills

provisions36.

Recommendations

3.8 A number of the recommendations in techUK’s paper We’re Just Not Doing Enough have

particular pertinence in solving the digital skills gap:

In creating more apprentices, we must ensure they are geared toward the high-value jobs

of the future, such as Big Data.

The introduction of the new Computing Curriculum in schools is to be welcomed, but

Government must ensure that both the quality and quantity of teachers are available to

meet the demands of the new curriculum. This will be a key route for sparking interest in Big

Data roles.

At present we do not have a realistic assessment of how initiatives to boost the digital skills

domestic pipeline will meet the level of vacancies anticipated by 2020 – techUK

encouraged the Government’s Digital Economy Unit to lead on a dynamic skills mapping

exercise to understand the level of digital skills, including in Big Data, that will be created by

36 techUK (July 2015). Nesta and Universities UK launch joint policy briefing on big data skills. Retrieved from

https://www.techuk.org/insights/news/item/5114-nesta-and-universities-uk-launch-joint-policy-briefing-on-big-data-skills

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2020 if we stay the course on current initiatives, and whether that will be sufficient to fill

shortages.

3.9 Where domestic talent is not currently available, techUK has repeatedly called on the UK to

adopt a ‘smart migration’ approach which allows firms to access the international talent they

need to grow. In techUK’s submission to the Government’s independent Migration Advisory

Committee (MAC)37 last year, techUK encouraged that Big Data specialists be added to the

Government’s Shortage Occupation List. We were pleased to see the MAC put forward this

recommendation to Government, and hope that the Government adopt this

recommendation in their response to the MAC this Autumn. However, adding Big Data

Specialists to the Shortage Occupation list alone will not solve the talent shortages faced by

tech companies.

3.10 Only through a joined-up approach to Big Data skills, by both developing the domestic skills

of the UK workforce and a ‘smart migration’ approach to fill urgent needs, can the UK

continue to be a global player in the development, adoption and exploitation of Big Data

products and services. techUK therefore recommend the following actions are taken.

The current review of the Tier 2 (skilled) migration visa route should make it easier not harder

for firms to get the talent they need, particularly for the tech sector and Big Data roles,

which are in short supply. Many in the tech industry are concerned that reforms to Tier 2 will

hurt the ability of tech companies to recruit talent, which ultimately harms the UK economy.

This echoes a recent call from the Institute of Directors38.

Government should reinstate the post-study work visa or an equivalent route for the UK to

ensure that UK universities remain globally competitive and that talented graduates can

flow into the UK workforce, including into Big Data roles.

37 techUK (December 2014). techUK calls on Migration Advisory Committee to address digital shortages. Retrieved from

https://www.techuk.org/insights/reports/item/2931-techuk-gives-evidence-to-migration-advisory-committee 38 City AM (August 2015). Business Warns Tories over Migration Curbs. Retrieved from

http://www.cityam.com/sites/default/files/edition/frontcover/Cityam%202015-08-14.pdf

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4 How public understanding of the opportunities, implications and the skills required can be

improved, and ‘informed consent’ secured

4.1 In this section, techUK raises the following issues:

Raising greater public awareness and understanding of the role of Big Data

Ensuring consumers have access to data protection information and tools

Getting the legal framework right

Raising public awareness and understanding of Big Data

4.2 Every day Big Data technologies are enabling UK consumers to enjoy increasingly

customised, personalised and innovative digital products, goods and services that make

daily life that little bit easier. Whether it’s an app to tell you when the next bus is due or real

time hotel reviews before booking a family holiday, consumers are increasingly experiencing

the benefits of innovative Big Data services.

4.3 However, the current commentary around Big Data in the UK is often driven by negative

media stories of unfortunate incidents where data is breached or stolen. Unfortunately the

current online threat environment poses a threat to the UK. It is estimated that cyber-attacks

cost UK businesses £34 billion per year39 with data continuing to be a valuable target for

cyber criminals. Technology companies in the UK are leading the world in the fight against

cyber criminals with significant investment being made in developing innovative

technological tools, solutions and services to ensure consumers can protect the ongoing

confidentially, integrity, availability and security of data. For example encryption already

plays an essential role in empowering consumers to take proactive measures to ensure their

data is secured and protected (which our submission covers further in Section 6).

4.4 There is real concern in industry that a focus only on negative data stories could jeopardise

the UK’s ability to benefit from Big Data by creating fear over the security of data, uncertainty

over Big Data use and doubts over ownership and control of data. An example of this

uncertainty was seen with the Care.data programme which was delayed by six months due

to a lack of sufficient engagement with the public to gain their confidence and trust40.

4.5 techUK understands that Big Data is a complex issue and consumer concerns relating to data

privacy and security must be discussed and addressed. However, it is also suggested that

there is a need to change, or rebalance, the public debate on the role of data. There is a

need to refocus the discussion by drawing attention to the real examples of how Big Data

and data analytics are making a positive difference to people’s lives in the UK.

39 CEBR (June 2015). Cyberattacks Cost UK Businesses Over £34 billion. Retrieved from http://www.cebr.com/reports/60-of-

british-ctos-say-uk-government-is-performing-poorly-in-protecting-firms-from-cyberattacks/ 40 BBC news (February 2014). Giant NHS database rollout delayed. Retrieved from http://www.bbc.co.uk/news/health-

26239532

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4.6 For example, in 2012 areas of Somerset were hit by serious flooding resulting in nearly 350

people affected at a cost of £600 million. However, predictive Big Data is now being utilised

to mitigate the risk of UK flooding by providing real time flood warnings and alerts to flood risk

communities around the UK41. West Sussex County Council are also using Big Data

technologies to provide citizens with increased transparency about how taxes are being

spent and the success of local programmes42.

4.7 techUK recommends consideration be given to how government and industry can work

together moving forward to raise understanding of the positive role being played by Big Data

in people’s lives, highlight the value of Big Data across the public and private sector and

promote the UK as a good place for European and international companies to adopt Big

Data technologies to locate and grow.

Ensure consumers have access to data protection information and tools

4.8 The UK’s digital future will also be dependent on UK consumers feeling confident to share their

data. In order to build and maintain consumer trust and confidence in Big Data, techUK

believes we must ensure consumers have access to appropriate information, advice, support

and technological tools. techUK supports the work of the Information Commissioner’s Office

(ICO) in providing data protection and privacy information that is user friendly and accessible

to both consumers and companies and advice and support when data protection and

privacy concerns are raised.

4.9 Recent research published by the Digital Catapult entitled “Trust in Personal Data43”

highlighted a lack of public understanding about data rights with only 1 in 10 respondents

confident with what personal data is being shared and how. Education of consumers around

personal data rights and the value of their data in the Big Data eco-system are seen as

essential as meaningful legislation. As an independent and trusted regulator, the ICO has an

important role to play here, and techUK would therefore like to see additional resources

being given to the ICO to continue its important work particularly given the growing

importance of data to the UK economy.

Getting the legal framework right

4.10 Having a workable data protection legal framework is key to ensuring public trust and

confidence that Big Data is being handled in an appropriate way. techUK therefore

welcomed the review of the current EU Data Protection Directive (95/46) which has been in

place since 1995. It is expected that there will be agreement on the introduction of a new

General Data Protection Regulation (GDPR) by the end of 2015.

41 Out-Law.com (December 2014). Environment Agency to release flood risk information as part of UK government’s ‘open

data’ push. Retrieved from http://www.out-law.com/en/articles/2014/december/environment-agency-to-release-flood-risk-

information-as-part-of-uk-governments-open-data-push/ 42 Socrata (accessed August 2015). Case Study: Open Data Brings West Sussex Benefits Beyond Their Expectations. Retrieved

from http://www.socrata.com/case-study/open-data-brings-west-sussex-benefits-beyond-expectations/ 43 Digital Catapult (July 2015). Trust in Personal Data: A UK Review. Retrieved from

http://www.digitalcatapultcentre.org.uk/pdtreview/

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4.11 The GDPR has the potential to underpin consumer trust and confidence by providing legal

clarity and transparency that will be key to moving the Big Data market forward. However, if

European policy-makers do not properly think through certain aspects of the GDPR pertaining

to the development of Big Data, then this could have a substantial chilling effect on the

maturation of Big Data industries in Europe.

4.12 One of the key issues in current GDPR negotiations is the definition and role of consent.

Consent provides citizens with a clear and positive indication of their desire to allow their

personal data to be used in specific ways and an ability for organisations to establish a real

conscious decision by individuals to share their personal data for particular purposes. It is

important that the GDPR discussions do not result in the introduction of a narrow consent

requirements that are not adaptable to citizens’ expectations nor to their online behaviour

across different digital platforms and technologies. techUK believes that the introduction of

‘explicit’ consent, as favoured by the European Parliament, would undermine the value of

consent. Such a move would risk ‘consent fatigue’ or worse ‘meaningless consent’ whereby

overly burdensome requirements on consumers, akin to the ‘Cookies Directive’, could

undermine the willingness of consumers to navigate preferences and understand how their

data is being used. Instead techUK supports the European Council’s proposed requirement

for ‘unambiguous’ consent. Unambiguous consent is preferential as it would benefit

consumers by ensuring organisations use appropriate means to provide information for

consumers to make an informed and active consent decision.

4.13 Data processing, which lies at the heart of Big Data technologies, is not only based on the

notion of consent. Organisations can also process data based on legitimate interest which

has, for over twenty years, provided a strong and well understood legal basis for data

processing. However, techUK is concerned that the principle of legitimate interest could be

undermined by the GDPR which would significantly inhibit much data processing, severely

limiting the ability of UK and EU organisations to innovate through the use of Big Data. The

ICO’s Big Data report highlighted the role of legitimate interest, alongside consent, as

relevant to Big Data processing and analytics 44. It states that “most likely to be relevant to

big data analytics, particularly in a commercial context, are consent, whether processing is

necessary for the performance of a contract, and the legitimate interests of the data

controller or other parties.”45 The concepts of unambiguous consent and legitimate interest

are fundamental to the ability of UK and EU businesses and public sector organisations to

harness the huge potential of Big Data. Overly restrictive legislation will lead to consumers

being overwhelmed by requests for consent and will ultimately mean that European citizens

miss out on the many and diverse benefits that data driven innovation can bring.

44 Information Commissioner’s Office (accessed August 2015). Big data and data protection. Retrieved from

https://ico.org.uk/for-organisations/guide-to-data-protection/big-data/ 45 Information Commissioner’s Office (accessed August 2015). Big data and data protection. Retrieved from

https://ico.org.uk/for-organisations/guide-to-data-protection/big-data/

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4.14 techUK therefore urges the Committee to call on the UK Government to ensure that current

GDPR negotiations ensure the current definition of legitimate interest is maintained in order to

ensure consumer’s privacy is protected and UK businesses can be world-leading in their

development and use of Big Data. techUK would be happy to provide the Committee with

further technical detail on the GDPR.

Recommendations

Consideration should be given to how Government and industry can work together to

rebalance the public debate and highlight the positive role of Big Data

Additional resources should be allocated to the Information Commissioners Office (ICO) to

support public awareness raising activities in light of the increased volume and role of data

across all aspects of our lives.

A workable and harmonised data protection legal framework should be introduced that

includes a requirement to gain ‘unambiguous’ rather than “explicit” consent and maintains

legitimate interest in order to ensure consumer’s privacy is protected and organisations

have a clear legal basis for benefiting from Big Data.

techUK submission to inquiry on ‘The Big Data Dilemma’

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5 Further support needed from Government to facilitate R&D on Big Data

5.1 Investment in Big Data research and development (R&D) is well established in the UK and is

being driven by both government, industry and academia. For example:

Additional Government investment of £128 million to support Big Data research at the

Hartree Centre

A £313 million partnership between the Hartree Centre and IBM46

Alan Turing Institute research partnerships with both GCHQ and Cray Inc.47

5.2 For the UK to realise the full opportunities from Big Data and Data Analytics it is important that

the UK Government and industry continues to fund Big Data R&D. Given more countries

around the world are beginning to recognise the competitive advantage to be gained from

exploring and unlocking Big Data48, investment in R&D is key to ensuring the UK remains

globally competitive. For example investment in R&D relating to the development of

supercomputers is seen as particularly important.

5.3 As the amount of Big Data created increases supercomputers will be needed more and

more by organisations of all sizes to process vast data sets in order to find that data needle in

a data haystack, quickly and effectively. The ability to process vast quantities of data could

mean the difference between the UK gaining and losing our competitive edge. Therefore

techUK sees it as important that the current investment in the work on supercomputers lead

by the Hartree Centre continues.

5.4 However, while investment in supercomputers is important it is equally important to support

initiatives that enable SMEs to benefit from Big Data R&D. Consideration should be given to

the development and funding of Big Data R&D initiatives or projects that can support digital

entrepreneurs and SME’s looking to scale up their adoption of Big Data. For example the

introduction of tax credits for SME’s that are involved in Big Data R&D projects could provide

an incentive for SME’s to get involved in R&D and foster Big Data entrepreneurialism in the UK

that could drive the adoption and implementation of Big Data tools and solutions forward.

5.5 Consideration should also be given to finding ways for the results of Big Data R&D carried out

by capital invested bodies, such as the Alan Turing Institute and the Hartree Centre, to be

made publicly available, as and where appropriate. This could assist SMEs and digital start-

ups to benefit from the finding of Government funded Big Data R&D.

46 http://www-03.ibm.com/press/uk/en/pressrelease/47061.wss 47 EPSRC (August 2015). The Alan Turing Institute announces new director. Retrieved from

https://www.epsrc.ac.uk/newsevents/news/alanturinginstituteprogress/ 48 BBC News (July 2015) Supercomputers: Obama orders world's fastest computer. Retrieved from

http://www.bbc.co.uk/news/technology-33718311

CNET (July 2015). Supercomputer power gains tail off as China’s Tianhe-2 leads the pack. Retrieved from

http://www.cnet.com/uk/news/supercomputer-power-gains-tail-off-as-chinas-tianhe-2-leads-the-pack/

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5.6 As outline above according to a recent information management market forecast report

published by Ovum, the global Big Data market will double in size by 2019 from its current

estimated worth of £10.9 billion to £20.1 billion49. techUK believe the UK has the potential to

become the leader in Europe for Big Data. However, for this vision to be achieved techUK

believe a long term, ten-year, R&D strategy and investment plan is needed to support the

further development and maturity of the UK Big Data market.

Recommendations

As recommended in the techUK Manifesto, a long-term funding base for science and

innovation should be ensured with set 10 year budget cycles to support the development of

a long term capital investment plan ensuring the continued support of Big Data R&D.

Future capital investment in Big Data R&D should focus on supporting projects and initiatives

that enable growth SMEs to get involved in Big Data R&D.

Consideration should be given to introducing Big Data R&D tax credits for SMEs and where

possible, results of Big Data R&D conducted by Government funded institutions should be

made public.

49 Ovum (July 2015). Press release: Ovum Forecasts big data software to grow by 50%. Retrieved from

http://www.ovum.com/press_releases/ovum-forecasts-big-data-software-to-grow-by-50/

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6 Big Data in wider policy debates on Cyber Security, Encryption and Investigatory Powers

6.1 techUK recognises that the volume and variety of data being created and processed is

increasing at the same time as a number of debates on the role and use of data to ensure

the safety of the UK both in terms of cyber security and national security. In light of the timing

of this inquiry alongside a number of high-profile recent data breaches and also discussions

on the role of encryption technologies and the forthcoming Investigatory Powers Bill, techUK

would like to bring several points to the Committee’s attention.

Safeguarding Encryption is essential for the future of Big Data, and for the UK

6.2 Encryption technologies are fundamental in keeping Big Data sets secure. The coming

months will see increased focus on the role of encryption as part of wider debates on the

Investigatory Powers Bill. It is imperative for the UK’s entire economic security that encryption is

not undermined by introducing a single point of vulnerability.

Access to data sets held by companies

6.3 Access to communications data by law enforcement agencies can play an important part in

helping the authorities to protect the UK’s national security. As the Anderson review on

Terrorism Legislation50 makes clear, the existing legal frameworks for oversight which underpins

the relationship between the technology industry and Government, is no longer fit for

purpose.

6.4 It is vital that consumers understand and have confidence that the security services and

companies are required by law to work together, where appropriate and proportionate,

within a clear and strict legal framework.

6.5 techUK has consistently argued for a clear legal framework when it comes to surveillance

legislation, including in our responses to ‘A Question of Trust’ by the Government’s

Independent Reviewer of Terrorism Legislation David Anderson QC51 and to the Intelligence

and Security Committee’s recent report ‘Privacy and Security: A modern and transparent

legal framework’52 . The Government has had excellent inputs from the three reviews it

commissioned as part of its work in preparation for the forthcoming Investigatory Powers Bill,

and there is now an opportunity to create a world leading legislative framework that can re-

build public trust.

50 techUK (June 2015) techUK Response to 'A Question of Trust' by David Anderson QC. Retrieved from

https://www.techuk.org/insights/news/item/4589-techuk-response-to-a-question-of-trust-by-david-anderson-qc 51 techUK (June 2015) techUK Response to 'A Question of Trust' by David Anderson QC. Retrieved from

https://www.techuk.org/insights/news/item/4589-techuk-response-to-a-question-of-trust-by-david-anderson-qc 52 techUK (March 2015) techUK responds to Intelligence and Security Committee report. Retrieved from

https://www.techuk.org/insights/news/item/2818-techuk-responds-to-isc-report