Beware of Big Data Demonization, IBM Europe Chairman Says

One critique of technology comes from the German philosopher and neo-luddite Martin Heidegger, who saw technology as a mode in which natural entities, human beings for example, are viewed as resources to be exploited as a means to an end. Unlike full-bore luddites, the neo-prefixed variety do not oppose all forms of technology, rather the term refers to a “leaderless movement of passive resistance to consumerism and the increasingly bizarre and frightening technologies of the Computer Age,” according to a 1996 manifesto.

But you don’t need to be a luddite or even a neo-luddite to understand the potential dark side of big data. The US government’s privacy overreach being the most glaring example to come to light recently, but there are others, even in the more mundane world of big data analytics and market segmentation.

Harry van Dorenmalen, Chairman of IBM Europe

A recent opinion piece from Harry van Dorenmalen, Chairman of IBM Europe, points out how big data is in danger of becoming demonized because of security and privacy fears even though the realm of tools and technology encompassed by the term big data has enormous potential upside.

Big data is the natural resource of the modern age, claims van Dorenmalen, and its effecting deep positive changes in economic and social spheres. “Improved health care, enhanced effective water and energy management, more accurate weather prediction, more efficient supply chains and improved traffic flows are just some of the benefits of ‘big data,’” van Dorenmalen contends.

The IBM rep cites three main drivers for this big data revolution. First, humans are creating a staggering amount of data with about 90 percent of the world’s digital holdings created in the last two years alone. Second, remarkable advances in information technology have resulted in analytics tools that can turn data into information. Third, the Internet provides a virtual highway to route, capture, and aggregate all this data.

Despite the opportunities for virtuous use, data is in danger of becoming demonized, asserts van Dorenmalen. He calls for any airing of big data concerns, privacy and security issues for example, to be tempered by circumspection and the acknowledgment of the benefits of this new natural resource.

While some argue that big data poses a risk to privacy, it’s also true that privacy laws can jeopardize the free flow of data.

“Some are calling for walls to be built around the Internet at a regional level, to block cross border data flows and to force the localization of data in certain regions,” van Dorenmalen writes. “There are also demands for the suspension of international data transfer mechanisms that are essential for global commerce, such as Safe Harbour. Adoption of such measures would isolate entire countries and regions from the global digital economy and create a self-imposed economic handicap.”

The IBM Europe Chairman maintains that it’s essential to distinguish between government use of data for intelligence purposes and industry reliance on data to improve business. Like European Commission Vice-President Neelie Kroes, van Dorenmalen believes in saying ‘No’ to data protectionism and ‘Yes’ to data protection.

“Protectionism and restrictions on commercial use of data will not resolve the concerns that have been raised. Rather, such measures will seriously hamper innovation, rendering local economies less competitive, discouraging investment and job creation, reducing consumer choice, blocking access to services while increasing costs,” he writes.

On March 26, leaders of the European Union and the United States of America will take part in the EU-US Summit in Brussels, where trust and trade will dominate much of the agenda. The parties have been working on a Transatlantic Trade and Investment Partnership (TTIP), which aims to enhance the connectedness of the two economies, spurring innovation. An ambitious agreement could boost economic growth and create new jobs, yielding benefits of at least 0.5% of EU GDP and up to 1% if productivity gains are counted. This translates into €119 billion a year for the EU economy.

In the IBM rep’s view, the TTIP should serve as an example of a 21^st Century trade agreement that supports cross border data flow provisions and a strong digital economy.

“As a company active in the EU since 1914, IBM is committed to working with Europe to find a solution that enables data protection and generates trust while at the same time stimulates innovation, job creation and an open Internet,” states van Dorenmalen.