the-impact-of-datafication-on-strategic-landscapes

6.2.1
SECURITY
AND PRIVACY
One <strong>of</strong> <strong>the</strong> most commonly discussed barriers in
<strong>the</strong> digital economy is <strong>the</strong> effective management <strong>of</strong>
security and privacy for corporations, individuals and
government institutions – <strong>of</strong>ten <strong>the</strong>se even appear to
be conflicting interests. In many <strong>of</strong> <strong>the</strong> new information-driven
value chains, however, users are required
to trust that <strong>the</strong>ir data is being used appropriately, in a
manner that <strong>the</strong>y would approve <strong>of</strong> and by entities that
<strong>the</strong>y would ensure such data to. Many <strong>datafication</strong>
solutions rely on cloud computing and data analytics
as core components – users are unlikely, <strong>the</strong>refore, to
ever have detailed knowledge <strong>of</strong> <strong>the</strong> exact location <strong>of</strong>
how and where <strong>the</strong>ir data is stored (and <strong>the</strong> legal
ramifications <strong>of</strong> <strong>the</strong> data being stored <strong>the</strong>re), or what
o<strong>the</strong>r data it is being stored with.
Many different methods have been proposed for solving
<strong>the</strong> issues <strong>of</strong> privacy – from creating private stores
for personal digital data to a broad variety <strong>of</strong> security
mechanisms. Each industry will need to implement
its own privacy standards and assess which technical
solution will work best within its industrial boundaries.
Failures to protect this privacy and security may lead
to legal issues, as discussed in Section 6.2.4.
The <strong>impact</strong> <strong>of</strong> <strong>datafication</strong> on strategic landscapes 22