The Digital Trust Paradox: The Key to Product Innovation via Big Data

A Business Value Exchange Research Report

The Digital Trust Paradox: The Key to Product

Innovation via Big Data

businessvalueexchange.com

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A research report for CIOs and CMOs into consumer sentiment on data sharing

August 2014

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Contents

IntroductionExecutive summary

Five key takeaways for consumer sharing preferences

Research findingsWill they share?

The perceived benefits of sharing

Perceived barriers to sharing

Survey

ConclusionInnovation and digital trust in the health sector

Establishing digital trust as the platform for innovation

Methodology

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An abundance of data is allowing CMOs and CIOs to innovate

in new ways to create highly targeted, personalised products

and services. But what data are consumers willing to share?

And what are the terms of engagement?


Whether sharing is in-app or on-social, the aggregate provides organisations with new levels of insight on consumer profiles, preferences and activities. This can be mined and analysed to generate valuable new consumer experiences. For example, wearable technology, from companies such as Jawbone and Withings, is delivering both peace of mind and new marketing channels for supplementary products.

But these opportunities can only exist on a well-defined value exchange. Consumers will share their data when they receive something of concrete utility in return: either self-knowledge or new and helpful services. When utility is derived, a circle of trust is built and further sharing – and more opportunities to innovate – will ensue.

Future innovation may be based on notions of trust, not product features. The major stumbling block for companies wanting to create new products and services is privacy. People are concerned about who has access to their personal information and it’s the job of smart companies to put privacy assurances at the forefront of any strategy that uses consumer data for innovation.

Building digital trust is therefore both the challenge and the opportunity for all organisations – whether private or public sector.

The data is there – in huge volumes – but our research shows that people have concerns about the way it’s used and who has access to it.

This creates a paradox.

With this in mind, we have chosen the healthcare and well-being sectors for our analysis of consumer data sharing habits – it is here that questions of consumer privacy are most highly charged in relation to the wealth of personal data currently being generated.

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For the basis of this research, we listened to consumer conversations related to healthcare data sharing on social media across a 90-day period. We also conducted a survey of 1,000 UK respondents, asking consumers about their willingness to share health data.

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The industry viewpoint:

Kimberly Collins, Research VP for CRM at Gartner, frames the issue this way, in an interview with Computer Weekly: “It's really about trying to get them to realise there is a huge opportunity here, before we spiral out of control and wreak havoc with our customers and create a lot of privacy issues for our organisation.”

“Big data and CRM has the potential to deliver business value for an organisation. It is also high risk. The sooner people get out in front of it, the more successful their organisations will be.” [1]

[1] http://www.computerweekly.com/news/2240184467/Gartner-Big-data-will-transform- customer-relationship-management-technology

In order to examine the value exchanges and data sharing preferences between consumers and corporations, we have focused our study on the health market. This is where private healthcare companies such as Bupa and consumer businesses such as Jawbone have been active for many years in delivering advanced, data-focused services (and the creation of vast amounts of personal data in the process), and companies like Samsung are starting to make major inroads into the market.

In the case of private healthcare provider Bupa, the company uses health data to optimise its services, improving consumer choice and evolving preventative care.

Jawbone caters for the consumer lifestyle audience, with its UP band harvesting data from users’ daily activity and fitness. While users have access to the data to track their activity, Jawbone uses it to form insights into user behaviour in order to evolve its products to better serve its customers. For example, the company analysed data linking UP users’ sleep with their feelings of well being. Based on the results, Jawbone introduced a new app that provided UP users with individually tailored reports on how sleep and activity relate to each other.

Executive summary

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The health market as case study and pioneer

[2] http://content.jawbone.com/static/www/pdf/press-releases/pr-03062014.pdf

1,600 UP wearers was analysed

Data from

Jawbone's sleepbehaviour study

Wearable technology brand Jawbone conducted a comprehensive sleep behavioural study based on data from users of its UP band – a lifestyle activity tracker.

5,000 nights of sleep

This added up to more than

As a result of the survey Jawbone created the UP 3.1 app, which gives users tailored insights into how sleep and activity interrelate. [2]

[3] http://www.samsung.com/us/globalinnovation/innovation_areas/ 6


Samsung, on the other hand, is trying a different, but no less ambitious, route. According to the tech company, its S.A.M.I. (Samsung Architectural Multimodal Interactions) data repository has open APIs that enable it to “collect data from any type of wearable device or online source and deliver it to any other device or application in real time.” [3] This potentially means the end of data being held in silos by proprietary apps, allowing users, researchers and healthcare professionals to access a comprehensive overview of a person’s health data, no matter what device or app it originates from.

As such, in the healthcare sector the consumer value exchange is becoming more about the person and the user experience than the product – and many organisations are reframing their solutions around predictive measures rather than the reactive development strategies of the past. Data is key to this cultural shift and companies that gain insight through smart analytics are leading the field.

Giving people more data empowers them and allows them to be more proactive when tracking the state of their wellbeing. But, at the same time, people are hesitant to give more data than they feel is necessary to the companies that provide these products, potentially slowing down the evolution of the technology that’s helping them.

But therein lies the rub: while data is crucial for the C-Suite to create an effective innovation strategy, it’s also the one thing that consumers are most reluctant to part with – particularly in this field.

Our study suggests that if data usage policies were made more transparent and accessible to consumers, it would create a better environment for innovation. It would also stimulate further sharing and collaboration across devices and platforms and among organisations in the wider marketplace.

This research paper looks at the challenge CMOs and CIOs in the health sector face when trying to leverage people’s data, and gives insight into how these challenges may be overcome.

Five key takeaways for consumer sharing preferences

Here are the five key takeaways from our research:

Regardless of age, people are reluctant to share sensitive personal data

People are equally uncomfortable sharing particular personal data, regardless of who they are sharing with – whether it is the government, healthcare companies or lifestyle applications

Men are more comfortable than women when it comes to sharing sensitive data with the government or health companies – but not with devices or applications

People have the same privacy concerns, regardless of whether they are sharing basic data or sensitive personal data

Most people who are happy to share sensitive data are motivated by the general advancement of health services, suggesting they want something in return for their information. This could be innovation or simply better services

Our survey of 1,000 people asked consumers about their willingness to share health data, as well as their perceptions on the benefits, barriers and security risks to sharing said data.

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Research findings

How to effectively use personal data is a tricky topic for CMOs and CIOs, especially in the health sector. To get an idea of how difficult the situation is, we decided to find out how consumers really feel about sharing – with both public and private healthcare organisations and also consumer apps and devices.

There were two strands to our research. The first was a social conversation analysis, where we sourced social media data and used keyword searches to isolate consumer conversations related to healthcare, consumer health, and health data sharing. We selected keyword-matched social media posts from blogs, Twitter, forums, websites and consumers in EMEA.

Through this social monitoring we aimed to discover what kind of conversations people, particularly the end-users, were having about sharing personal data with public and private healthcare organisations and consumer apps and devices. We particularly wanted to find out what kind of sentiment was being expressed around this subject.

The results of the first strand informed the design of the second part of the research. We compiled and analysed the data on consumer conversations for key insights expressed sharing incentives, barriers and risks, and used these findings to create a Google consumer survey.

We then conducted a ten-question survey using Google Consumer Surveys, asking consumers about their willingness to share health data, as well as their perceptions on the benefits, barriers and security risks to sharing said data.

The results from this survey gave us a unique insight into what kind of actions people were taking, or would take, when it came to sharing personal data with public and private healthcare organisations and consumer apps and devices.

Through this data, CMOs and CIOs can get an insight into the pain-points and sentiment of their audience, giving them a better understanding of what makes people want to share their personal data.

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63%63%63%

Will they share?

62%15%

7%

9%7%

63%63%33%

11%14%

11%

31%

Very positive

Somewhat positive

Balanced/neutral

Somewhat negative

Very negative

Sentiment towards data sharing based onsocial conversations analysis

Public and private healthcare organisations

Consumer health and fitness apps and devices

If you think people are more willing to share their data with consumer health and fitness companies than they are with public and private healthcare organisations, think again.

Data drawn from social media conversations showed that 62% of conversations about sharing information with consumer health and fitness companies were very positive, compared to 33% of conversations around private and public health care organisations.

But when we delved deeper into the matter via our survey, consumer brands came off worse. Only 39.4% of people surveyed were against sharing data with public and private healthcare organisations, compared with 51.5% being against sharing their information with consumer health and fitness brands.

According to the Google consumer survey, people aged between 45-54 are the least likely to share their personal data, with 49% “not at all likely” to share their data with public and private healthcare organisations, and 65.1% “not at all likely” to share their data with consumer health and fitness applications and devices.

Of those who answered that they were “very likely” to share their data with public and private healthcare organisations, 25-34 year-olds led the way (14.9%). The same age group most commonly responded that they were “somewhat likely” to share their data with consumer health and fitness applications and devices.

62%

The top five incentives to share based on thesocial conversation analysis

Number of people not at all likely to share their databased on BVEx survey


Consumer health and fitnessapps and devices

1. Improve the healthcare system

2. Utility to researchers

3. Logistical ease

4. General help for others

5. Strengthen patient-physician relationship

1. Improve personal health

2. Reach personal goal/milestone

3. Sharing with friends/family

4. Strengthen patient-physician relationship

5. Utility to researchers


Consumer health and fitness apps and devices

39.4% 51.5%Vs

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The Google consumer survey

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Age breakdown for people who are not at all likely to share their

data with consumer health and fitness apps and devices

39.1% 42.6%

49%

43.8% 41.2%

25-34 35-44

45-54

55-64 65+

Age breakdown for people who are not at all likely to share their

data with public and private healthcare organisations

25-34 35-44

55-64 65+

49.6% 57.7%

61.2%

60.2% 62.1%

25-34 35-44

45-54

55-64 65+

14.9% 14.1%

7.9%

9.5% 10.6%

Age breakdown for people who are very likely to share their data with

public and private healthcare organisations

25-34 35-44

45-54

55-64 65+

Age breakdown for people who are very likely to share their data with

consumer health and fitness apps and devices

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9.7% 11.9%

5.4%

6.3% 3.8%

25-34 35-44

45-54

55-64 65+

Percentage of people willing to share data to advance medicine

The perceived benefits of sharing

Not all data is equal when it comes to sharing health information. Basic data (like weight, height, and fitness activity) is a very different prospect to sensitive data (psychological health and serious conditions). Of those surveyed, however, few could see the benefit of sharing either basic or sensitive data.

Those who did see value in sharing both basic (21.6%) and sensitive health data (22.1%) cited “advancing medicine/improve the health system” as the main reason for doing so. Altruism appears to be a driving factor.

The least popular answer was to “connect with people with similar health profiles”, with only 9.7% of people willing to share basic health data for this reason, and 9.9% of people ready to share sensitive health data.

Basic health data

21.6% 22.1%

Sensitive health data

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None of the above 58.2%

Which factors make you likely to share your basic health data?

Advancing medicine (scientific research) 21.6%

Improve doctor’s visits/insurance rates17.2%

Monitor personal health with apps/devices16.0%

Helping companies develop medicine13.3%

Connect with people with similar health problems9.7%

None of the above62.5%

Which factors make you likely to share your sensitive health data?

Advancing medicine (scientific research) 22.1%

Improve doctor’s visits/insurance rates14.1%

Monitor personal health with apps/devices11.0%

Helping companies develop medicine10.9%

Connect with people with similar health problems9.9%

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The top five barriers to sharing according to the social conversation analysis

Perceived barriers to sharing

So why are people unwilling to share their basic and sensitive health data? The main reason is “security and privacy concerns”. There’s still a level of mistrust concerning how organisations handle data. When it comes to basic data, 42% of people cited “security and privacy concerns” as the reason for not sharing. That figure grew to 43.4% when it came to sensitive data.

The older the respondents the more likely they were to pick “privacy or security concerns” as a barrier to sharing data, with the 65+ age group giving that reason for not handing over basic (53.1%) and sensitive (52.5%) health data. The 65+ year-olds also picked “distrust of private companies/organisation” far more than the younger age groups (36.9%).

When it comes to the risks of sharing data, the majority of people’s concerns centred on the fact that “data could be lost or used by third parties”. That said, 25-34 year-olds were far less concerned than other age groups about third parties misusing their basic health data (31.5% vs. 40% for all other groups).

1. Personal data used by third parties

1. General privacy concerns

2. Distrust of the government

3. No guarantee of anonymity

4. Distrust of company/organisation

5. Lack of consent

2. General security concerns

3. Personal data can be sold, shared or used by third parties

4. Distrust of company/organisation

5. No guarantee of anonymity

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Consumer health and fitnessapps and devices

Age breakdown of people who cite security and privacy concerns as the biggest barrier

to sharing basic health data

Age breakdown of people who cite security and privacy concerns as the biggest barrier to sharing sensitive health data

Percentage of people citing security and privacy concernsas the biggest barrier to sharing data

Basic health data

42% 43.3%

Sensitive health data

35% 39.3%

43.4%

40.4% 53.1%

25-34 35-44

45-54

55-64 65+

33.5% 33.1%

45.2%

49.5% 52.5%

25-34 35-44

45-54

55-64 65+

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The health industry has data in abundance. But its sensitive nature means that, more often than not, people are unwilling to share their information. This means the C-Suite, particularly CMOs and CIOs, have a balancing act on their hands when finding new ways to use data to engage with consumers.

The aggressive use of sensitive data and personalisation strategies will risk the erosion of digital trust and the alienation of their market. But if CMOs and CIOs are too reticent they may end up missing new opportunities to innovate and deliver value for their business or organisation.

CMOs and CIOs must collaborate on this issue. The CIO’s role has evolved rapidly to focus on more than just being a cost centre or a source of non-performing capital. It has become a key function to drive innovation and product. According to Accenture’s “CIO-CMO Survey”, nearly eight out of ten CIOs felt that there was a greater need for alignment with the marketing department.[4]

Gartner predicts that CMOs will spend more on IT than CIOs by 2017.[5] While, according to Ogilvy CommonHealth Worldwide’s Healthcare Marketers Trend Report,[6] 63% of healthcare companies have seen an increase in marketing budgets in 2013, and 64% of senior healthcare executives believe the industry needs to do a better job in leveraging big data to support its business strategy.

CMOs and CIOs are in a position to work together to deliver a new strand of innovation based on market and consumer know-how, and data and privacy excellence and governance. This “innovation collective” is best positioned to leverage data for the delivery of compelling new consumer experiences. But innovation through this kind of combined knowledge doesn’t come easily. To make it happen, CIOs and CMOs first need to build digital trust.

Conclusion

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Innovation through a CIO and CMO ‘collective’

[4] http://www.accenture.com/SiteCollectionDocuments/PDF/Accenture-2040-CMO-CIO.pdf [5] http://my.gartner.com/portal/server.pt%3Fopen%3D512%26objID%3D202%26mode%3D2%26 PageID%3D5553%26ref%3Dwebinar-rss%26resId%3D1871515

[6] http://www.ogilvychww.com/pdf/Healthcare-Marketers-Trend-Report-2013.pdf

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How the CIO and CMO can work together

When CMOs and CIOs collaborate, the organisation benefits. More and more companies are actively encouraging cooperation in the C-Suite to enhance business value. In the case of the Regal Entertainment Group, the CMO (Ken Thewes) and the CIO (Dave Doyle) were specifically told to forge a strong working relationship by the company’s CEO.

The two got their teams to work closer together, even to the extent of having combined morning meetings and sharing an office space. This created great synergy between the two departments and broke down cultural walls.

In turn, this approach started to breed success. Thewes and Doyle identified the company’s loyalty programme as a business priority and their teams led the project to overhaul the system. IT infrastructure, like the data warehousing and email processing systems, was enhanced, enabling the marketing team to more effectively and efficiently engage customers.

The result was a 261% increase in mobile commerce, a 41% increase in digital traffic and an 18.3% increase in membership levels.

Source: Forbes [7]

63% of healthcare companies have seen an increase in their marketing budgets in 2013

64% of senior healthcare executives believe the industry needs to do a better job in leveraging big data

64%63%

[7] http://www.forbes.com/sites/kimberlywhitler/2013/11/08/a-ceos-dream-team-cmo-and-cio-the-regal-entertainment-group-story/

Source: Ogilvy CHWW report [6]

Mobile connectivity is giving people access to more and more data about the way they exercise, the way they sleep and the way they eat. There are more than 43,000 health and fitness apps available on Apple’s iTunes App Store, and there have been an estimated 660 million downloads in this category as of June 2013.[8]

Wearable technology enables people to gain valuable insights into their daily activity. According to IMS Research, 56.2 million wearable sensors will be shipped globally in 2017.[9]

The data collected by these consumer apps has enabled brands like Nike, Jawbone and Fitbit to gather huge volumes of health data. This data can benefit the public and private healthcare sectors, providing them with insights that can enable them to create better experiences and lifestyles for people of every age and gender.

Products could be personalised and tailored to the end-user, combining daily lifestyle data with healthcare data. This would give both the patients and care providers a comprehensive overview of a person’s “wellness” and create a truly innovative platform for preventative action and ongoing treatment and services.

The public and private players in the health sector are edging closer and closer together, with technology and data being the hinges that join them. The problem is, the different data sets from these organisations are predominantly kept in silos – with many people hesitant to allow access to their data outside of any given product/service or user case.

Digital trust appears to be the main hurdle to broader marketplace innovation.


Innovation and digital trust in the health sector

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[8] http://www.forbes.com/sites/kimberlywhitler/2013/11/08/a-ceos-dream-team-cmo-and-cio-the-regal-entertainment-group-story/ [9] http://mobihealthnews.com/22447/report-56m-sports-fitness-monitors-to-ship-in-2017/


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Jawbone UP Users have

collectively clocked up over 35 million

nights of sleep

MyFitnessPal Users have lost a combined total of more than 100 million pounds

Withings Smart Blood Pressure

Monitor Users can monitor blood pressure on smartphones

Scanadu Scout Captures

physiological data to track personal

health trends

43,000 + 660 millionHealth and fitness apps available on Apple’s iTunes App Store

Estimated downloads in the health and fitness category[10]

A visual guide to consumer health and fitness products

The consumer health and fitness market is the source of vast amounts of data. Millions of people have uploaded data about themselves, their activity levels and their health. This data gives consumers insights into their fitness and lifestyle and they often share the results across their social media profiles.

[10] http://healthland.time.com/2013/10/31/bad-news-about-your-favorite-health-apps-they-dont-work/

Our research demonstrates that, while people are motivated to share their personal data, the potential for doing so is limited by perceptions of trust and privacy.

The health and personal well-being and fitness marketplaces make for an interesting showcase in this respect. This industry is on the leading edge of product and service innovation through data. It is also supplemented by a growing class of related consumer brand activity – from sports watches to tracking apps on smartphones. Each and every data set generated by consumers is by definition extremely personal and very often sensitive – and yet people are motivated to share if the value exchange and product experience is right.

Further sharing would be stimulated if consumer anxieties about data usage and security were addressed in practical and tangible ways – at the policy level. And, if CMOs and CIOs are able to tackle these concerns, then consumers would be happier to see their data used in new ways, for the delivery of new, innovative solutions and experiences.

The key to broader innovation is digital trust.


Establishing digital trust as the platform for innovation

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The social conversation analysisWe sourced social media data and used keyword searches to isolate consumer conversations related to healthcare, consumer health, and data sharing on these topics.

Posts were sourced from blogs, Twitter, and forums, and were based on websites and consumers in the EMEA region.

After reviewing the initial set of data, we sampled a set of 279 relevant social media posts on the healthcare and personal health conversation. We then analysed these posts for sentiment, topics, expressed sharing behaviours and incentives, barriers and risks.

The Google consumer surveyUsing the data gathered from social conversation analysis, we designed and conducted a ten-question survey using Google Consumer. We asked consumers about their willingness to share health data, as well as their perceptions on the benefits, barriers and security risks to sharing said data.

The questions were each designed to be stand-alone. Each question received 988 to 1,022 responses and was shown to a randomly selected participant, independently of the other nine questions.

The questions were shown across a network of premium online news, reference and entertainment sites, where it was directly embedded into content. On the web, respondents answered questions in order to gain access to specific content; on mobile, respondents answered questions in exchange for credits for books, music and apps.

Users either answered demographic questions themselves or the Google platform inferred it, based on the respondent's browsing history and IP address. The Google Consumer Surveys platform employed stratified sampling – using the most recent Current Population Survey (CPS) Internet use supplement as its target population – in order to maintain a representative allocation of respondents across survey questions. Upon survey completion, it used post-stratification weighting to compensate for sample deficiencies.


Methodology

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Nobody has all the right answers on how to stay ahead of the competition and be agile in the current market environment. In this increasingly uncertain world, what's required is combined wisdom. Business Value Exchange is the place where you can explore different perspectives on how digitisation is advancing today's enterprises - whether that's delivering a better experience for the customers, empowering employees, or enabling greater innovation. The Business Value Exchange research paper series offers you insights into audience behaviour and sentiment.

Read it, be inspired and deliver even greater value as the digital leader of your business.

Read it, be inspired and deliver even greater value as the digital leader of your business.

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The Digital Trust Paradox: The Key to Product Innovation via Big Data