GOLDEN MEANS: CANNIBALS AND RAMPANT COMMERCIALISM
by Inderpal Bhandari, executive editor at large

In an interview with Network Computing last year, I was asked to comment on the privacy issues involved in data mining. My response: "The problem is not so much with data mining as it is with the availability of personal information. Something really has to be done, especially in regard to certain kinds of information that identify the individual, like Social Security numbers -- there's just so much scope for misuse."

While the problem may indeed be the widespread availability of personal data, those of us who make a living by creating or using data technologies such as data mining do run the danger of being tarred with the same brush. Misuse of personal data, if it becomes pervasive, will inevitably bring about a public backlash. Part of that backlash will equally inevitably be directed at data technologies. Stanislaw Lec once inquired whether it was progress if a cannibal used a knife and fork, an unkempt thought that leaves one feeling more than a little ambiguous about the role of cutlery in civilization. There will be individuals with the same bent of mind as Mr. Lec who will express similar reservations about data technologies.

But what can one do about this situation? There are several influences at work in today's environment that complicate the issue of privacy and the use of data technologies. It is important to realize which influences are beyond our control and which are not. I describe three such influences below and examine what, if anything, we can do about them.

Personal data are a commodity. Today, personal data are bought and sold, treated like a commodity. It is not a surprise that data can fall into the hands of unscrupulous operators. We have all read the news reports of personal data being exposed to incarcerated criminals, who then, upon release, use it to target their next victims. Two twists on this scenario indicate that what seems to be a simple instance of someone being plain stupid in allowing prisoners access to personal data, may not really be that simple.

Consider the party that exposed the data to the criminals to be a company that outsourced its data entry operations to the prison system in order to cut costs. The executives of the company knowingly assumed the risk of exposing such data to felons, feeling that having purchased the data legitimately, they were free to use it as they wanted. In a further twist, consider instead that the company outsources its data entry operation to a not-for-profit entity whose objective is to rehabilitate prisoners by introducing them to work that builds skills in technology. The not-for-profit has a system in place to screen candidates from local prisons for data entry jobs and its program enjoys overwhelming success in reforming the majority of those admitted. Unfortunately, that system is not perfect. Once in a while, it errs.

To what extent would you hold the parties that exposed the data to the prisoners responsible for the crimes committed? I am not a legal expert but I think you will agree that assigning blame in the above situations can be a tricky matter. What about a company that sells its data mining program to the not-for-profit, which is then used by the prisoners to more efficiently target their next victims? It is hard to argue that sale should have been prevented. The point is that in an environment where personal data are a commodity to be bought and sold, such situations can emerge out of the pursuit of legitimate business interests.

Criminal investigation or Big Brother? Recently, Independent Counsel Kenneth Starr subpoenaed the records of purchases made by Ms. Monica Lewinsky in two bookstores, namely, Kramerbooks and Barnes and Nobles. Both stores have maintained that they keep such business data as a matter of record, i.e., they do not make it available to other parties. Both stores are now contesting the subpoena. Mr. Starr proponents argue that he is within his rights to make such a request in the course of a criminal investigation. His opponents argue that it is really Big Brother in disguise. If Mr. Starr eventually succeeds in getting the records he wants, should that suggest that Kramerbooks and Barnes and Nobles were somehow errant in violating the privacy of a customer? Of course not. This is another example of an influence that is beyond our control.

Data Mining or Rampant Commercialism. George F. Will once expressed an unflattering view of commercialism, describing it as follows. "Commercial society regards people as bundles of appetites, a conception that turns human beings inside out, leaving nothing to be regarded as inherently private". Those of us who are involved in data-intensive activities such as target marketing, campaign management, upselling and cross-selling, will appreciate that view. We may not agree with it but we can understand it. If there is an adverse reaction of the public to data technologies, that viewpoint will ring true. It is that image we must strive to change.

But how is that to be done? One simple way is to let the customer know that he or she is sharing in the spoils. Two weeks ago I wrote in this column that data mining today is largely restricted to improving the marketing and sales effort of a business. Such a focus will lead to a stronger business (shareholder value) but may or may not lead to an improvement in the core products of the business (customer value). We can make sure that the focus is indeed on improving the core products of the business and to ensure that people understand how their data leads to those improved products.

In conclusion, there are several influences that underlie the issue of privacy and data technologies, many of which are beyond our control. An influence that can be addressed is the image of rampant commercialism. One way to improve that image is for data mining efforts to optimize customer value. People must clearly understand the tangible value returned for surrendering their data.

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