This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Trusted Applications Of Personal Data Could Boost Innovation And Growth In The European Economy

The effective and trusted deployment of personal data could be a boon to consumers and a source of massive growth in the European economy, but only if public- and private-sector organizations ensure that consumers are aware of the benefits while assuring adequate privacy controls, according to a new study, "The Value of Our Digital Identity," conducted by The Boston Consulting Group (BCG) and sponsored by Liberty Global, Inc, (NASDAQ: LBTYA, LBTYB, LBTYK), which included a poll of 3,000 European consumers.

The report quantifies for the first time the current and potential economic value of a person's "digital identity" or the sum of all digitally available information about an individual—everything from what consumers reveal about themselves on social media to data produced by online transactions and other sources.

Economic value

The economic value of applications built on the use of digital identity for both public- and private-sector organizations is expected to reach €330 billion in Europe by 2020, according to the report. BCG estimates that the consumer benefit will be more than double the organizational value—€670 billion annually by 2020—mainly stemming from reduced prices through data-driven cost synergies, time savings through self-service transactions, and the high value individuals place on free online services and mobile apps, supported at least in part by the sharing of their personal data.

Two thirds of potential value generation, €440 billion in 2020, is nevertheless at risk if stakeholders fail to establish a trusted flow of data.

"The opportunities presented by the responsible sharing of a person's digital identity are enormous, but can only be gained if digital identity is handled in a safe and transparent way," says Manuel Kohnstamm, Senior Vice President and Chief Policy Officer of Liberty Global, Inc. "It is critical that industry takes the lead to establish a trusted platform for the flow of personal data, otherwise, significant value for consumers and industry alike will be lost."

John Rose, Senior Partner at BCG and co-author of the report, adds: "Leveraging personal data and digital identity can be a key growth driver in an overall stagnant European economy—potentially worth up to 8% of GDP by 2020. Yet our research shows that two-thirds of this value is at risk given current consumer concerns about privacy and lack of control. Our survey also suggests that it will be critical for companies, governments, and non-profit organizations to establish and execute personal data applications against crystal-clear, transparent principles of use and easy-to-use controls that are tailored to the context in which the data will be used, and for industry and regulators to collaborate on solutions that balance adequate levels of protection with practical approaches that allow for the greatest social and economic value creation."

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs