Category: Knowledge article

The expansive value of data no longer needs an explanation. This ‘new asset’ continues to become more valuable for organisations over time. Regulations that force us to handle sensitive, personal data in a proper way helps us to protect what is valuable.

Background

With all current attention focused on privacy and the possibly new Intelligence and Security Services Act (WIV), people tend to forget other regulations also came into force: the General Data Protection Regulation, GDPR for short. This new law brings high expectations: is this going to be the new millenium bug, or will this be just another law thatlaw, that slowly slips into oblivion?oblivion.

For whom relevant?

GDPR became effective on the 25th of May, 2018 and in the Netherlands replaced the Personal Data Protection Act (WBP). The latter was implemented back in 2001 and was based on (95/46/EG) European guidelines.

The GDPR bears direct consequences for both processors and controllers. These terms lead to two other important definitions: Personal data(1) and processing(2).

The most important changes for processors

Afraid of deciphering the complete European lawbook when trying to process personal data? No worries. In factin fact; the new GDPR shows many similarities with the old WBP. The three most important changes are:

The data processor agreement

When a responsible third party appoints a third party processor, a processor agreement has to be signed. This is not anything new; this obligation already existed, but purely for the main responsible. After the 25th of May 2018, the third party processor will become partly responsible and therefore also has to sign the data processor agreement. What does such an agreement entail exactly? It must contain agreements in terms of the subject, duration and the goal of the processing, but details on securing personal data as well. The latter is a commitment made by the processor and therefore has to include certain terms on the confidentiality of the data, partaking in audits, acting when data leakage occurs and must include details on technical and organisational measures. This also was part of the traditional WBP; the GDPR mainly concretizes this.

Territorial boundaries

One of the major changes the new GDPR entails compared with the traditional WBP is the size of the scope. For example, even when the concerned processing party and responsibles are not physically located in the EU, they have to comply with this law. This is determined by examining whether the party in question delivers goods and/or services to parties located within the EU, or if they monitor the behaviour of these parties for sales purposes. It doesn’tdoes not matter if they use datacenters or other resources within the EU.

Liability

The consequences of breaking the GDPR law are clear: breaking=paying. This regulation too, is much like the old one, apart from the fact that the processor has additional responsibilities, meaning that the scope of the liability has grown. In case of not properly applying GDPR, compensation money can be demanded by any party that was both materially or immaterially harmed as a consequence of a breach. Additionally, a fine can be levied by the regulatory body (Autoriteit Persoonsgegevens in the Netherlands). New is the amount of the fine. As of now, this fine can reach amounts of up to €20 million or 4% annual global turnover of the company the legal person belongs to  – whichever is higher.

Most important changes for the responsible party:

Bottom line: remain calm, as this law is just an extension of an already existing law and its main purpose is to protect our most valuable data.

• Officer responsible for data collection
• Documentation requirements
• Obligation to report data breaches

It may be unexpected, especially concerning a hot topic like privacy, but many of the new regulations are similar to the old ones. The ‘new’ regulations are in line with what we have seen before in the Netherlands, meaning there is no question about it being a millenial bug. When we wake up on the 26th of May 2018, the world will be exactly the same as today.

Further clarification of definitions:

1) Personal data entails all information regarding an identified or identifiable natural person. This means an individual that can be identified by his/her name, identification number, location information or other aspects that characterize the physical, economical, cultural or social identity of a natural person. Beware of the fact that a company  is not a natural person.

2) Processing is understood to mean an operation or a set of actions concerning personal data or a set of personal data (e.g. by means of automated processing) such as collecting, recording, storing, deleting or destroying data. The processor is the one that processes this data. A processor often does this for another person, the controller. This is the legal person that is determining the actual purpose of the data processing. As an example, one could think of a hospital that hires an IT company  to store their personnel data in such a way that it is easily accessible for the financial department to pay their wages. In this case the hospital is responsible, within the IT company the processor.

As soon as processing of personal data comes into play, the GDPR applies. This is due to the fact that the GDPR is effective in all of the EU member states. This saves regulatory bodies the task of converting the laws into national legislation. In case of conflict with the national law, the GDPR overrules.

The relationship between a customer and his supplier is sometimes compared to a marriage. Besides the formal aspects, which are contractually defined in the prenup, both partners have several implicit expectations towards one another. Regardless of the nature of the service: albeit the development of a custom application, the implementation of a large commodity product, or something else entirely.

The expectations of the customer concern issues such as quality, costs, and the realisation of the business case. The supplier experiences a similar interplay of interests. Next to providing the delivery of a qualitatively good service, his concerns regard revenue, margins, and further development of the account. A lot of these affairs can and will be addressed during the sales process, however ample remains implicit in the relationship.

Seeking the conversation

As for any relationship, the customer-supplier relation is built upon mutual trust and sometimes a healthy dose of suspicion. When the honeymoon is over, small annoyances will always arise: issues about which you did not make any contractual agreements in your prenup. Another factor that can generate irritations is the fact that both partners will walk a different path of personal development during the relationship.

What is the course of action in such a situation? Will you be pointing fingers? Will disillusion rule? Are all suppliers the same? Do you not deserve better? Or will you seek the conversation to find bottlenecks and solve the issues? Talking is always the best option. The sooner you indicate which part of the collaboration does not meet your expectations, the higher the chances of success. Where one might be missing passion, the other might be looking for stability. If you know what is dysfunctional in your relationship, you know what can be done to fix it.

In a business relationship it is useful to share the initial goals of the collaboration: was the relation initiated for cost reduction purposes, to maximise profit or growth, or to achieve operational excellence? Making the intention and mutual expectations explicit will draw the solution nearer, even when intentions and expectations are changing. Do not forget to take a close and critical look at yourself, when calling the bottlenecks in the relationship.

Extract the emotions

In such conversations you sometimes are in desperate need of a third party. An objective relationship therapist, who is able to extract the emotions from a conflict. Together with a mediator you investigate whether the agreements should be renewed. Starting with the people who are directly involved, often executive management, and subsequently with the remainder of the customer- and supplier organizations. Compare this to a family therapy session or mending a family feud. Sometimes even neighbours get involved to solve the conflict! A disrupted relationship has an impact on multiple levels. These all need to be aligned again. Sometimes it can help to simply admit that, despite everything that is happening, you still love each other.

The more your partner plays a key role in the core of your existence, the more important solving the dispute is. In that case, the other party is a part of you. In a classical arranged marriage, where others have determined at forehand how you and your partner will collaborate, you might even consider a divorce.

Fit-for-purpose

Whether you continue your relation as customer and supplier, both will start working on the relationship, or agreeing to go your separate ways: in terms of future perspective it is always of utter importance that the interplay keeps meeting the original and developing intentions and goals of the collaboration.

It is not for nothing that we at Anderson MacGyver attach great importance to the ‘fit-for-purpose’-principal: suppliers and their solutions should match the business activity of the customer that they support. Once you have found each other, it is important to align the relationship to the goal you want to achieve together, and to maintain a mutual understanding.

We want to help with that. Sometimes by briefly standing between the parties and again clarifying the mutual intentions and goals.

Last week, we spoke to a director of ICT & Logistics regarding a smart boiler that, for instance, is able to automatically refill the selected water pressure. In case this occurs too often, the owner of the boiler receives a warning signal via the corresponding app on his phone and a mechanic can be contacted automatically. This way, severe malfunctioning of boilers is reduced to a minimum, which comes in handy in these cold winter days.

Imagine living in a world where devices know what we need and fulfil those needs completely automatically, without us having to give them any order. This might sound very science fiction, but the opposite is true. Despite it not being applied on a large scale yet, such applications are already available for consumers, businesses, and governments.

All sorts of connected devices can be found on the market today, such as Toon from our client Eneco and the Nest thermostat that recognizes your favourite home temperature and lowers it when you leave the house, to optimize the energy consumption. Another example is the car connector made by the ANWB (the Dutch organization for traffic and tourism) which uses data sharing for improved roadside assistance, automated paid parking services, and discounts on car insurances for drivers who demonstrate safe driving behaviour.

The city of Santander in Spain is the most progressive ‘smart city’ in Europe. Thousands of sensors have transformed the city into a high-tech laboratory. Sensors to guide visitors of the city to the nearest available parking spot via the shortest route. Sensors in trash containers that send a signal to the municipality when they are almost filled up. Damp sensors in public parks to optimize their irrigation. Movement sensors to ensure street lights are only switched on when a person is nearby. These are only a handful of examples of the application of sensors.

These are all examples of the Internet of Things (IoT). IoT provides organizations with new opportunities to integrate data by using a network of devices, to optimize human decision-making and process execution. Both are key to gaining an understanding of the broad digital context when formulating a digital strategy, as described in our white paper “Digital Strategy – Building your company’s vision and journey towards being digital”.

The added value of IoT devices and services will increase rapidly over the coming years due to the rise of their sector-transcending applications. An example could be a real-time service network in which devices are monitored at a distance. Using an algorithm, it can be forecasted which part of a device will soon be in need of replacement. Subsequently an automatically generated service request is placed on the marketplace, and the best offer is accepted. The service mechanic is granted access to the specific building via a special code so that the repair can be executed. After the part has been replaced, a message explaining the repair and providing the invoice is sent to the organization automatically.

A practical example of IoT can be found in the Port of Rotterdam. Each day the number of active sensors in the port increases. Not only sensors that measure streams, temperature, and the groundwater levels, but also sensors that detect movements and forces on the quay wall. Usage of these data allows for more adequate maintenance and development of new walls by the Port of Rotterdam.

IoT is thus considered to be the world’s digital nervous system, gaining strength by the collective connection of devices to the network. However, by solely connecting devices to a network, the device will not generate business value for an organizational chain. The challenge with IoT is to discover the true added value of the data it generates and to subsequently develop new and improved products and services from that data.

The applications and added value of IoT are of such great importance present day that analysis of their potential is a standard item in the strategic analysis of the digital context of an organization that we perform for our clients. Are you interested in knowing more about IoT and the development of a digital strategy for your organization?

What intrigues me most is the human element of digital transformation

31 oktober 2017 – In the era of rapid technological developments such as big data, artificial intelligence and robotics, ‘RightBrains thinking’ is needed more than ever. Success is largely determined by creativity, intuition, adaptability and an open mind. It is a field with many career opportunities for women. Unfortunately, the share of women is still extremely low. RightBrains is a platform for professional women with one shared passion: digital technology. As knowledge partner of RightBrains, Anderson MacGyver’s Esther Splinter acts as a role model to inspire and motivate young women to pursue a career in the world of digital technology.

Together we show that digital technology offers many career opportunities for men and women.

The Disaster

Stockholm 1628. It is warm and sunny on this day in August. Everyone who can, makes it to the piers to witness the historic event. Many even travelled for days to be part of the moment when the proud of the Swedish nation setsets sail. The Vasa is the most powerful navy vessel that the Swedish navy ever took into service. It has an unmatched firepower and might be the decisive factor in the raging war with Poland-Lithuania. Considering its costs, it better be! The 64 massive bronze cannons and the rich decoration with hundreds of painted and gilded sculptures cost a fortune and make the Vasa a huge asset to the Swedish Kingdom.

On this clear and sunny summer day, the Vasa sinks on her maiden voyage, 1300 meters after setting sail, when the first light gust of wind fills part of her sails. Some 30 people drown.

What Happened?

How could this moment, which was supposed to be triumphal, turn into a devastating catastrophe?

The answer is shockingly simple. The design of the ship was not suitable for the heavy weight of the large number of canons that set the ship’s centre of mass too high for the ship to be stable.

Another Golden Age

388 years later, history repeats itself once again. Just like during the days, the Dutch refer to as “the Golden Age”, we are living in the middle of a time of adventures and opportunities. The ships of the VOC (Verenigde Oost-Indische Compagnie) brought back not only precious goods from their journeys to distant lands, but also not to be underestimated insights on discovered cultures, flora and fauna as well as important naval knowledge.

Today, most companies find themselves surrounded by an ocean of data. Just like in the past, sailing this ocean can be an adventure leading to new fantastic business opportunities. In addition, new insights and trends can be obtained from the journey for the management to facilitate the right decision making. Another Golden Age! However, the journey is tricky and requires knowhow and skills. Just like for the Vasa it is easy to capsize and sink with missing knowhow and the wrong approaches.

Less Is More

There is another lesson to be learned here: less is sometimes more. Even for data analysis! While it is widely believed that more data gives you necessarily more and more reliable insights, this is in most cases a dangerous assumption and more often than not simply wrong! If you have sufficient large statistics, i.e. huge datasets, modern algorithms can create reliable insights even with polluted and incomplete data. But the vast majority of companies do not have enormous datasets like Google or Facebook. They do not analyse hundreds and thousands of Terabyte of data per day to deliver internet-search results or analyse their clients’ behaviour. Their datasets are a thousand and even million times smaller. Here, a good data quality is essential. ‘’Garbage in, garbage out” remains a valid statement for the vast majority of analyses. The most effective and efficient approach is usually a ‘light’ and transparent analysis that is easy to verify and understand, based on a few but powerful variables. Trying to ‘squeeze’ all your data and variables in a black box and leaning on the results is a risky enterprise and in most cases doomed to fail without prior knowledge and thorough understanding of the data. Less is sometimes more, the predictions of a predictive model, based on a machine-learning algorithm, for example, might be significantly worsened by the addition of irrelevant variables.

The Vasa might have played an important part in the war with a few cannons less on board.

Prevent yourself from the risk of sinking and ask for our advice on your (potential) data analysis.

…or: For Hard Results, You Need to Get Soft!

The Neglected Side of Big Data

“Big data is not about data! It is not even about technology!” – Quite a bold statement, especially if you follow the public debate on this topic. Most articles and discussions are centred on technical developments like Hadoop, cloud computing or self learning algorithms. This leads to the impression that big data projects are successfully accomplished by just finding the right technical tool. But this point of view falls utterly short of a fundamental characteristic of big data. You might call it the soft side of big data. This recklessly neglected side more often than not is the decisive factor that determines whether a big data project or programme succeeds, or fails.

So, what is this mysterious soft side of big data? In the style of the 3 V’s (Volume, Velocity and Variety) often used to define big data, you may summarize it as the 3 C’s: Creativity, Collaboration and Culture.

Creativity

At the beginning of each big data project stand creative ideas on how to take advantage of data. These ideas typically are formulated in questions that start with “What if we would/could…..?”. Think for example of a logistics company that could ask “What if we would combine our own data with open data, such as weather data or traffic data? Could we improve our daily delivery predictions and routing? And if so, by how much?”. But also during the data analysis, the core of each big data project, creativity is essential. With some creative ideas and programming, the analysis code can be optimized in performance and new and often unexpected insides can be revealed, like e.g. that an inefficient use of the operation theatre in a hospital is not caused by emergencies but by the long scheduled surgeries.

Working with big data involves a lot of experimentation, since most of the times you are exploring uncharted territory. You need to be creative to overcome and solve the challenges you are facing during a big data project and analysis, and creativity is an essential ingredient to succeed. Without creativity every big data project is doomed to fail already from the beginning.

Collaboration

To take full advantage of the possibilities that come with big data one needs the collaboration of multiple departments of a company. The focus of the analytics part of a big data project is provided by the business, commonly by sales, marketing or operations. The technical elements themselves are under the responsibility of IT or an autonomous data department. Essential for a fruitful collaboration is that the interdisciplinary members develop a common language. This is not trivial, seeing that most collaboration members typically come from very different backgrounds. A proven approach to swiftly support the development of a common language is through visualizations that act as a common basis of understanding. As part of our day-to-day business we often support the creation of a common language for business and IT using our proven operating model canvas. The same technique can be used to enhance the communication in big data projects.

Next to this internal collaboration, the collaboration with external partners such as research institutes, universities or consultants can help to deliver the desired value of a big data project.

Culture

Successful big data projects and programmes require a change in culture for many organizations. The related projects and programmes are very dynamic and the necessary approach is an agile one. A lot of experimentation is involved with iterative cycles. This requires a dynamic, creative and inspiring environment where people dare to try something new and unconventional, an environment often found at start-ups. This is why various large companies like ING approach the big data challenges by first founding, and later on integrating start-ups. However, also the creation of company internal, interdisciplinary teams for big data projects can be very successful.

It pays off to pay close attention to the 3 C’s of big data. It will not only support the project and help to reach the defined goals faster and more efficiently but it is also likely to create higher quality results with a higher impact. For hard results, you need to get soft.

Do your big data ambitions need more creativity, collaboration or a more inspiring cultural environment? Do not hesitate to contact Anderson MacGyver.

A Huge Chunk of Marble!

About 6 meters high, over 7 tons heavy and not of the best quality. A few, well-known artists of the time, the beginning of the 16h century, accepted contracts to turn this enormous chunk of marble into one of the twelve statues which were meant to decorate the buttresses of Florence’s cathedral. None succeeded. Finally, it was a 26 years old genius that turned this massive block of Carrara marble into one of the world’s most admired sculptures.

Data Science and the Fine Arts

On the first sight, data science and sculpturing have little in common. The former uses advanced computers and code to generate insights and knowledge while the other relies on hammer and chisel to create art. But viewed in a different light, quite intriguing similarities are revealed.

Faced with a large raw-database, the data scientist commences his work in a similar way to a sculptor who starts by carefully examining his chunk of marble. Possible cracks and the type and condition of the stone determine the tools and feasibility of the project. However, after this initial check, both data scientist and sculptor need to proceed with great care. Hidden, microscopic cracks in the stone can have similarly devastating effects as unnoticed biases in the dataset or small bugs in the analysis code. While the damage in case of the sculpture is clear to the eye, errors and bugs in a data analysis cause false results that are often hard to identify. It is all about experience, the right tools and the right ideas. “A man paints with his brain and not with his hands.” (Michelangelo Buonarotti). The same holds true for sculptors, I suppose.

Who Said Anything About Creation?

The results can often be surprising! “How could they possibly make this?!” is a question that comes to my mind whenever I admire a sculpture that is made of cold stone and yet looks so realistic, almost alive!

Also the results of an advanced data analysis can lead to astonishment. Newly discovered insights, as for example “three quarter of your customer profiles are wrong”, or the high accuracy of a devised predictive model, for example to predict the number of orders or delivered goods for the coming days, trigger questions like “How did you do this?”, “How could you create these insights?”.

But a data scientist does not create the insights. The ‘created’ insights have always been there, in the data, waiting to be revealed. A data scientist’s task is simply to provide the access.

It is said that when Michelangelo was asked how he was possibly able to create his ‘David’ out of this chunk of marble, he answered: “I did not have to create him. He was always there, in the stone. I just had to remove the marble around him.”

In the end, ‘David’ did not end up on top of Florence’s cathedral but found a more prominent place right in front of Palazzo Vecchio (and since 1873 in the Galleria dell’Accademia), to be admired by Florence’s citizens and tourists alike.