26
A Democratic Licence to Operate
•
As a means of verifying information that was obtained through other sources
(for example, from human or other signals intelligence).
Data and Industry
1.75
The private sector plays multifaceted roles in regards to data; as creators and generators
of data; as victims of breaches, hacks and misuse; and as consumers of data for their
own commercial purposes. Collecting and analysing significant volumes of data now
forms a key aspect of modern commercial enterprise. Many companies will not allow
consumers to access their services without providing certain personal information,
while other companies automatically log online activities to generate data on consumer
behaviour and spending patterns. One of the first major retailers in the UK to recognise
the potential commercial benefits of collecting customer data was Tesco. In return for
discounts and offers, the Clubcard loyalty-card scheme proved a useful way for Tesco
to track how customers used its services. This model has since been adopted by the
majority of large British retailers.
1.76
In many cases, companies outsource the use of big data to intermediary entities, known
as data brokers, that collect, analyse and sell consumer information; this may include
highly personal details like marital status, religion, political affiliation and tax status.
Businesses are able to exploit these vast quantities of data to further their business ends
in a variety of ways – from sophisticated market analysis that allows precisely targeted
advertising, to tailoring of services for customers and the real-time analysis of financial
trends for investment decisions.78
1.77
Companies now have the ability to profile and segment customers, based on
socioeconomic characteristics, in order to target precisely the people they want to reach.
The compilation of consumer databases, which are matched, mined, shared, rented and
sold commercially, has become a central feature of business activity.79
Conclusion
1.78
As the Internet becomes more integrated into the daily routines of citizens, businesses
and governments, the vast amount of digital information produced within our digital
society grows at a rapid rate. Some of this data, and the ability to filter and analyse
significant volumes of this data, can be immensely valuable to both governmental and
commercial organisations. Data has become a commodity to be bought and sold to the
extent that many services can be offered to consumers for free.
1.79
Not all uses of data raise dangers to privacy or rights; data analytics to generate insights
about large populations are likely to pose relatively less risk than analysis that is aimed
78. ICO, ‘Big Data and Data Protection’.
79. House of Lords Select Committee on the Constitution, Surveillance: Citizens and the State.
Vol 1: Report (London: The Stationery Office, 2009), p. 18.