A new approach to personal data is needed in order to strike a balance between protecting individuals and unlocking innovation, according to a new World Economic Forum report released today. "Unlocking the Value of Personal Data: From Collection to Usage," a collaboration with The Boston Consulting Group (BCG), explores how the principles for using personal data may need to be refreshed to ensure the trusted flow of data for individuals, businesses, and governments.

The report highlights outcomes from a nine-month dialogue on personal data — part of a multiyear initiative called Rethinking Personal Data that was launched in 2010. (A community of top executives from AT&T, BCG, Kaiser Permanente, Microsoft, VimpelCom, and Visa serves on the Rethinking Personal Data steering board.) This report includes insights from business, civil society, and government on new ways to unlock social and economic value. Additionally, it discusses key government initiatives — particularly the proposed European Commission Data Protection Regulation and the U.S. Consumer Privacy Bill of Rights.

"The world has changed, yet our current approaches to managing personal data have not kept pace," said Alan Marcus, senior director of IT and telecommunications at the World Economic Forum. "We need to shift away from trying to control the regulation of data itself and to focus on the management of how data is used."

A key insight from the report notes that the age of Big Data creates new opportunities and risks, especially as they relate to the privacy of individuals. A richer appreciation for context and new ways for engaging individuals beyond current notice and consent practices are key priorities on which global leaders should focus. In addition, policy frameworks that focus on how data are used — rather than preemptively governing data — are seen as critical for a balanced and sustainable personal-data ecosystem.

"To unlock the value of data, we need to shift to a usage-based, contextual approach to managing rights and permissions," said John Rose, senior partner at BCG. "Companies will have to establish principles and codes of conduct, develop tools and processes to manage compliance with them, and rethink the way they engage consumers to ensure their trust."

The report calls for establishing an updated set of principles and the means to uphold them in a hyperconnected world. In this light, there is a need to raise awareness about how technology can play a role in upholding principles by allowing permissions to flow with data. Lastly, the report calls for greater evidence and "learning labs" for understanding the impact policies will have.