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Waikato Business News July/August 2017

Waikato Business News has for a quarter of a century been the voice of the region’s business community, a business community with a very real commitment to innovation and an ethos of co-operation.

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WAIKATO BUSINESS NEWS <strong>July</strong>/<strong>August</strong> <strong>2017</strong> 51<br />

New Zealanders ‘careful with personal data’<br />

Organisations need to address privacy<br />

and data security concerns and provide<br />

compelling reasons for Kiwi consumers to<br />

agree to share personal data.<br />

New Zealanders are selective<br />

about the circumstances<br />

in which<br />

they support sharing personal<br />

data with government agencies<br />

and commercial organisations<br />

via the Internet of Things<br />

(IoT), according to the <strong>2017</strong><br />

Unisys Security Index.<br />

These findings<br />

highlight that<br />

when it comes to<br />

personal data, there<br />

is a very delicate<br />

balance between<br />

privacy, security and<br />

convenience – even<br />

for organisations<br />

generally trusted by<br />

the public<br />

The Unisys Security Index<br />

is a global study that gauges<br />

the attitudes of consumers on a<br />

wide range of security issues.<br />

The <strong>2017</strong> study examined how<br />

willing New Zealanders are to<br />

share data with organisations<br />

via data analytics and the Internet<br />

of Things (IoT) – where<br />

devices can send information<br />

to other devices or systems via<br />

the Internet. The study polled<br />

1012 adults in New Zealand<br />

during April <strong>2017</strong>.<br />

The vast majority of New<br />

Zealanders, 84 percent, support<br />

using a button on their<br />

smartphones or smartwatches<br />

to alert police to their location<br />

during emergencies. Yet<br />

only 31 percent support police<br />

being able to monitor fitness<br />

tracker data anytime to determine<br />

their location at a certain<br />

time.<br />

The findings indicate that<br />

New Zealanders will embrace<br />

IoT when they see a compelling<br />

reason such as personal<br />

safety and medical emergencies.<br />

But concerns about privacy<br />

and data security suggest<br />

they want to be able to control<br />

which organisations can access<br />

their data.<br />

Most New Zealanders (74<br />

percent of respondents) support<br />

medical devices such as<br />

pacemakers or blood sugar<br />

sensors automatically transmitting<br />

significant changes to<br />

a patient’s doctor. And 70 percent<br />

support the use of sensors<br />

in luggage to advise passengers<br />

at airports if their luggage<br />

has been unloaded and what<br />

carousel it will be on.<br />

Yet many fewer New Zealanders<br />

(27 percent) support<br />

using a smartwatch app to<br />

make payments, or a health insurer<br />

accessing fitness tracker<br />

data to determine a premium<br />

or reward customers for good<br />

behaviour (20 percent).<br />

“These findings highlight<br />

that when it comes to personal<br />

data, there is a very delicate<br />

balance between privacy, security<br />

and convenience – even<br />

for organisations generally<br />

trusted by the public,” said<br />

John Kendall, director of border<br />

and national security programs,<br />

Unisys. “For example,<br />

people are happy to use their<br />

smartwatches to alert police to<br />

their location when they need<br />

help, but they don’t want police<br />

to freely access that data at<br />

any time – they want to control<br />

when they share their data.”<br />

What Are the Barriers to IoT<br />

Acceptance?<br />

Of the New Zealanders who<br />

say they do not support various<br />

IoT applications, most<br />

cited privacy and security concerns<br />

as key reasons. In particular,<br />

many say they would not<br />

support an IoT application if<br />

they do not see a compelling<br />

enough reason to share their<br />

data or if they do not want an<br />

organisation to have such data<br />

about them. Data security is<br />

the biggest barrier cited for<br />

not supporting a smartwatch<br />

payment app.<br />

Richard Parker, vice president<br />

financial services, Unisys<br />

Asia Pacific says: “To address<br />

consumer concern around data<br />

security of smartwatch payment<br />

channels, banks need a<br />

multi-pronged approach that<br />

spans technology and policies<br />

to secure the data, as well as<br />

reassuring customers by communicating<br />

the steps taken by<br />

the bank to protect them – a<br />

fine line in delivering a frictionless<br />

customer experience<br />

whilst making sure they are<br />

secure.”<br />

Which Wearable Biometrics<br />

Do Kiwis Support?<br />

Wearable biometrics technology<br />

that analyses human characteristics<br />

to confirm an identity<br />

or monitor critical medical<br />

data are part of the IoT phenomenon.<br />

The vast majority of New<br />

Zealanders support police or<br />

border security staff wearing<br />

facial recognition body cameras<br />

to identify criminals or terrorists<br />

who are on watch lists<br />

(78 percent) or medical sensors<br />

transmitting significant<br />

changes to a patient’s doctor<br />

(75 percent).<br />

The survey results also<br />

showed that fingerprint scans<br />

on smartwatches could address<br />

security concerns around<br />

payment apps. “Approximately<br />

half of Kiwis (51 percent)<br />

support a fingerprint scan to<br />

control access to data on a<br />

smartwatch or to authorise a<br />

payment from the smartwatch<br />

(47 percent), with support<br />

increasing with age. This is<br />

a clear signal to banks that<br />

biometrics could help alleviate<br />

consumer concerns about<br />

smartwatch payment channels,”<br />

says Mr Parker.<br />

While 49 percent of New<br />

Zealanders support airline<br />

staff wearing facial recognition<br />

glasses to verify the<br />

identity of passengers boarding<br />

aircraft at airports, only<br />

24 percent support the same<br />

glasses being used to identify<br />

VIP customers for special<br />

treatment.<br />

John Kendall explains:<br />

“Kiwis see it as a trade-off:<br />

‘Is there a compelling enough<br />

reason for that organisation to<br />

capture this information about<br />

me?’ The findings reveal law<br />

enforcement, national security<br />

and serious medical conditions<br />

are considered acceptable justification,<br />

but customer loyalty<br />

programs and employee tracking<br />

are not – the impact on privacy<br />

outweighs the personal<br />

benefit.”<br />

Support for Data Analytics<br />

Varies<br />

Support for analysis of data<br />

collected from a range of<br />

sources also varies – even<br />

among different government<br />

agencies. Fifty-seven percent<br />

of New Zealanders support<br />

border security officers analysing<br />

the travel history of<br />

passengers, and those whom<br />

they are travelling with, to determine<br />

if they are eligible for<br />

fast-track border clearance.<br />

Yet only 42 percent support<br />

welfare agencies accessing<br />

personal spending data from<br />

credit card records and insurance<br />

policies to verify if<br />

benefit claims are legitimate.<br />

And even fewer (21 percent)<br />

support the tax office using the<br />

same data to verify income tax<br />

returns.<br />

Furthermore, the majority<br />

of New Zealanders do not<br />

support data analytics being<br />

used to sell goods and services<br />

to them. Sixty-four percent do<br />

not support banks monitoring<br />

individual customer spending<br />

behaviour to offer related<br />

products such as insurance for<br />

items they have purchased.<br />

And 62 percent do not support<br />

shop assistants using facial<br />

recognition glasses to identify<br />

loyalty programme members.<br />

Richard Parker explains<br />

that organisations that use data<br />

analytics must be sensitive to<br />

customer concerns. “Customers<br />

expect businesses to know<br />

them based on the history of<br />

their relationship. In a world<br />

where interactions may cross a<br />

range of channels and not just<br />

in person, many organisations<br />

are turning to data analytics to<br />

provide extra insight. Ironically,<br />

while they may be trying<br />

to improve the customer experience,<br />

if businesses cross<br />

the line and appear to invade<br />

customers’ privacy by revealing<br />

that they know more about<br />

them than what the customer<br />

has knowingly shared, it just<br />

turns the customer off. Technology<br />

alone is not enough; it<br />

must be used in the context of<br />

understanding human nature<br />

and cultural norms.”<br />

TEDxRuakura<br />

returns in <strong>August</strong><br />

After a successful 2016<br />

event, TEDxRuakura<br />

returns this year with<br />

an outstanding line-up of<br />

speakers bringing ideas worth<br />

spreading to Hamilton <strong>August</strong><br />

20.<br />

From fire-breathing entrepreneurs,<br />

equality champions<br />

and storytellers, to cyber<br />

security legends and technology<br />

disruptors, the <strong>2017</strong><br />

programme is diverse but the<br />

speakers are all versed to present<br />

their unique ideas in the<br />

18-minute format.<br />

The event is to be held at<br />

the Gallagher Academy of<br />

Performing Arts, the University<br />

of <strong>Waikato</strong> with general<br />

admission tickets costing<br />

$100, and student concession<br />

tickets $80. Ticket availability<br />

is limited to create an intimate<br />

experience and spark deep discussion<br />

and connection with<br />

the ideas presented by the<br />

speakers.<br />

Now in its third year running,<br />

TEDxRuakura is curated<br />

and choreographed by a dedicated<br />

committee of local volunteers,<br />

led by license-holder<br />

and local business owner<br />

Quentin Weber.<br />

“To be able to offer Hamiltonians<br />

an authentic TEDx<br />

experience, with a cast of<br />

high-caliber thought-leaders is<br />

very exciting,” says Quentin.<br />

“Our hope is that through<br />

providing a knowledge-sharing<br />

platform for these innovative<br />

ideas, conversations<br />

will be sparked between<br />

like-minded people. We’d<br />

love to see both TEDx enthusiasts<br />

and those new to the<br />

TEDx movement come along<br />

and open their minds to new<br />

ways of thinking.”<br />

The full-day programme<br />

will run from 10am to 5pm<br />

with opportunities throughout<br />

the day to network with other<br />

attendees.<br />

Logan Elliott<br />

Linda Radosinska<br />

Videos of the TEDxRuakura<br />

talks will be made freely<br />

available online after the<br />

event, and all have the chance<br />

to be featured on TED.com<br />

Paloma Aelyon<br />

Sam Elton-Walters<br />

Rosie Bosworth<br />

Tania Jones<br />

and gain millions of views<br />

from world-wide audiences.<br />

The TEDxRuakura speakers<br />

for <strong>2017</strong> are:<br />

Michael Peters<br />

Victor Ahipene<br />

• Professor Michael Peters<br />

• Victor Ahipene<br />

• Paloma Aelyon<br />

• Sam Elton-Walters<br />

• Linda Radosinska<br />

Ryan Ko<br />

Andrew Judd<br />

• Associate Professor Ryan Ko<br />

• Andrew Judd<br />

• Tania Jones<br />

• Dr Rosie Bosworth<br />

• Logan Elliott<br />

Support for joint funding of critical infrastructure<br />

A<br />

government initiative to<br />

allow public and private<br />

investment in critically<br />

needed infrastructure is a significant<br />

step forward for the country,<br />

according to the Employers<br />

and Manufacturers Association<br />

(EMA).<br />

Crown Infrastructure Partners<br />

was launched in <strong>July</strong> and<br />

goes some way to addressing<br />

particular concerns raised by<br />

the EMA.<br />

"We have been pushing<br />

the need to look at different<br />

models to remedy our national<br />

infrastructure shortfall and<br />

we see today’s announcement<br />

as a clear win in this regard,"<br />

say EMA chief executive, Kim<br />

Campbell.<br />

"In our recently released<br />

Election Manifesto two of the<br />

key areas we highlighted have<br />

been somewhat addressed by<br />

this announcement. Our manifesto<br />

stated the importance<br />

of expediting critical national<br />

infrastructure and the pressing<br />

need to broaden funding options<br />

available to local authorities."<br />

The Government announced<br />

in <strong>July</strong> the re-purposing of<br />

Crown Fibre Holdings into<br />

Crown Infrastructure Partners<br />

in which it will co-invest $600<br />

million alongside local councils<br />

and private investors to fund<br />

road and water infrastructure<br />

for housing developments. The<br />

crown company will use the experience<br />

and skills gained in the<br />

fibre rollout to attract private investment<br />

in infrastructure necessary<br />

to open up large tracts of<br />

land for housing development.<br />

This will alleviate pressure<br />

on cash-strapped councils<br />

which are struggling to fund<br />

new long-term infrastructure.<br />

"This is targeted at enabling<br />

much needed housing development<br />

by resolving infrastructure<br />

shortfalls in the sector, although<br />

$600 million will not go<br />

far. However, we are more interested<br />

in how this model will<br />

be used to address broader infrastructure<br />

investment issues.<br />

"For example there are a<br />

number of major transport projects<br />

in the Golden Triangle or<br />

Auckland that require partial or<br />

complete funding by councils.<br />

When the new model is bedded<br />

in and successful it could easily<br />

be expanded to include these.<br />

"Investment in critical national<br />

infrastructure is vital to<br />

drive the uplifts in economic<br />

and social wellbeing that New<br />

Zealanders expect. We need action<br />

and today’s announcement<br />

certainly bodes well for the<br />

bold steps which need to be taken<br />

to address our infrastructure<br />

shortfall," says Mr Campbell.

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