Big Data Meets Data Nationalism
Peter Evans, PhDVice PresidentCenter for Global Enterprise
March 20, 2015
Global data residency trends and implications
2015 Georgia Tech Business
Analytics and Big Data Forum
https://twitter.com/pevans_c
Domestic content/ industrial policy
2
From manufacturing big data?
Rules and regulations aimed at localizing manufacturing jobs and value added by restricting trade in goods
Trade friction 1980s-present
Restrictions on free flow of data designed to protect, favor, or promote domestic companies over foreign companies
Next battle ground?
Digital trade
3
Industrial Asset Monitoring
Track fleets, quickly find assets, inspect their status and acquire more detailed information.
Consumer data
Tracking, analyzing and storing consumer data around the world.
Field Service Collaboration
Share information and supplement existing communication channels.
Transaction Management
Growth in data to support cross-border shoppers, expected to spend over $80 billion by 2018
To be of value data must often flow across national borders
Information and international competition
4
“Information is power, and economic information is economic power. Information has an economic value and the ability to store and process certain types of data may well give one country political and technological advantage over other countries.”
Longstanding concerns over sovereignty and electronic data flows
Louis JoinetFrench Justice Ministry OfficialSeptember 1977
What’s changed?Growing value of the data layer… “new oil”
Age of
Platforms
Platform business models leverage digital networks to achieve new levels of global speed and scale
Age of
Networks
Mesh networks linking physical, digital and social
Digital Age
Delivery of goods and services increasingly
depend on digital streams of data
Consumer+
Industrial Internet
$$
New battle ground?
Mandated local data storage
Local financial transaction requirements
Restrictions on remote monitoring of industrial equipment
Local content requirements on procurement of digital products by government and/or private sector entities
Growth in LBTs- Localization barriers to trade
Growing Value Competition to Capture Value of Data
Creeping data residency requirements
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Source: Trade press and “Promoting Economic Growth through Smart Global Information Technology Policy: The Growing Threat of Local Data Server Requirements”, Business Roundtable, June 2012
Data Residency Rules
Surveys point to more restrictive data trade policies
Many industries adversely impacted
Future of LTBs and data nationalism
8
Key questions for today and the next decade
• Where is data nationalism becoming or likely be most acute?• Countries--- advanced, emerging?• Industries/ sectors--- retail, banking, health, mobility, energy, others?
• What strategies will firms adopt?• Adapt--- accept local requirement and/or deploy evasive technology• Exit--- leave or avoid countries with onerous requirements• Advocate--- form coalitions to press for global rules
• What strategies are countries likely to adopt?• Live and let live--- accept balkanized internet• Retaliation & reciprocity--- shift to a world of managed data trade• Collaborate--- join in building international rules and governance
mechanisms that ensure the free cross-border trade in digital information
Big Data Meets Data Nationalism
Peter Evans, PhDVice PresidentCenter for Global Enterprise
March 20, 2015
Global data residency trends and implications
2015 Georgia Tech Business
Analytics and Big Data Forum
https://twitter.com/pevans_c