clip_image002Corporate data breaches and security incidents pose a growing threat to businesses around the world. Such events are increasingly common, with companies and organizations from Google to Sony to the Stanford University Hospital falling prey to data breaches, news of which was subsequently splashed across national headlines.

Incidents like these, combined with the increasing number of ways to track what people are doing online, are affecting consumer attitudes. Edelman’s new global study, Privacy & Security: The New Drivers of Brand, Reputation and Action Global Insights 2012, reveals that seven in ten people globally are more concerned about data security and privacy than they were five years ago, and a full 68% believe that consumers have lost control over how online personal information is shared and used by companies.

Businesses, however, are not doing enough to meet these concerns. A majority of people (57%) report either no change or a decline in the security of their personal information in the last five years. This is problematic, because consumers think that businesses should be grappling with these issues and that it is their responsibility to do so. The vast majority (85%) say businesses must take data security and privacy more seriously, and a plurality say businesses – as opposed to governments or individuals – are responsible for protecting the security of their personal information.

Edelman’s study also indicates that data security and privacy issues have the potential to affect a businesses’ bottom line. Customers are taking data security and privacy into account at the checkout counter; surprisingly, when it comes to smartphones, personal computers and tablet computers, data security and privacy are as important to them as a product’s design, style and size.

Businesses are also suffering from a trust deficit due to peoples’ concerns about data security and privacy, particularly in the financial and retail sectors. While 92% of people say security is important to them in when doing business with the financial sectors, just 69% trust the industry to protect their personal information – trust lags by 23 points. In online retail, the gap is even more dramatic. While security is important to 84% of those doing business with online retailers, just 33% trust them to protect personal information – a 51 point gap.

To earn people’s trust in their ability to protect data security and privacy, businesses must manage these issues like a core competency, engaging with them in a meaningful way on a daily basis. Businesses that ignore data security and privacy do so at their own peril, because consumers will abandon companies they do not trust to protect their personal information. Those that prove willing and able to manage data security and privacy effectively, however, will bring unexpected value to consumers around the world by demonstrating that they understand the importance of protecting the information people hold most valuable.

Read the full study here. We’re keen to hear your thoughts…

@pete_pedersen

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At the close of Mobile World Congress in Barcelona, I took some time away from the show floor to recap some of the key mobile industry trends, developments and themes that have emerged at this year’s show.

Matthew_Whalley

Edel_Telecom

Last year’s Mobile World Congress was greeted with cautious optimism that has since been replaced by real enthusiasm within an industry that continues to explore its potential

In preparing for this year’s Mobile World Congress I’ve been taking a look at the trends and insights that emerged from last year’s congress and seeing how far the mobile industry has come since then.

Edelman’s Kevin Bossi noted that last year’s event was approached with a kind of cautious optimism that was understandable after a year in 2009 that showed growth in mobile data services but financial instability around the world.

In 2011, this cautious optimism has given way to real excitement around a mobile market that is continually pushing its boundaries and seen as a driver for social and economic development. As ever the scope of the industry continues to grow and this offers up opportunities at the same time raising questions about how businesses define themselves.

The trends and themes from last year’s Mobile World Congress point to an industry that is reaching deeper into the lives of consumers while still exploring how far existing and new technologies can be pushed.

New Enthusiasm, Old Challenges

There has been excitement around new developments in devices with tablet computing taking hold in the market and new networking technologies like LTE hopefully solving mobile data challenges. Apps and gaming have also shown that the opportunities within the mobile market are still vast and not always easy to predict.

From looking at these innovations and the trends from MWC10, the question of the operators’ role in the mobile ecosystem is still one that has yet to be answered. It isn’t an easy question and one that is becoming even more difficult to answer. Pricing, bundled services and increased penetration won’t be generating buzz in the exhibition hall but they are all very real for operators as they try to convert network traffic into revenue gains. Operators have an uncertain future as they watch a vibrant market and seek to carve out a leadership role in it.

What is certain is that the mobile industry as a whole is being seen as a force for good. Mobile Money services are expanding as operators partner across verticals, mHealth is bringing efficiency to healthcare while the increased depth of wireless networking and affordable handsets bring more people online. While the buzz amongst technology journalists has been about the role of mobile phone and social networking in uprisings in Egypt and Tunisia, they are already being used in the democratic process in Africa particularly in Uganda as well as regions across the continent.

Lessons to Learn

Emerging markets aren’t just taking advantage of new services as we saw at MWC10. Some of the largest brand presence at the event were from vendors and operators from outside of Europe and North America. Expect to see Huawei , ZTE, HTC on the hardware side and China Telecom, Bharti Airtel and Turkcell to be well represented again this year. Revelations about the Chinese government’s aid to its equipment vendor was not surprising and will not slow these companies down as they continue to take market share from Western mainstays in the equipment market.

What will be exciting is to see what lesson both operators and manufactures from emerging markets have to teach the industry about new services and what they see sustaining growth in the future. Players in emerging market will have some distinct lessons to share and it plays into an overall theme of this year’s congress. While technology is certainly at the core of the mobile industry, meeting the unique needs of different markets, communities and ultimately consumers is its goal.

A User-Centric Congress

Since last year’s congress there has been an increasing shift toward the user with a stronger emphasis on how people are using new technologies not just the technologies themselves. Consumers are more frequently asking themselves, “What can this technology do for me? What need does it meet and how does it improve the way I’m living my life?”

The tablet computing market has shown just how important it is to explain the usage scenarios of a device, not just the device capabilities. That is at least for competitors to the iPad that need a strong rational for why their device is superior and best meets the needs of the consumer.

Nowhere is the user more important than in the app market. MWC10 was awash with talk about apps ranging from mHealth to social media and what will be the next Angry Birds. The proliferation of apps and smartphones have allowed for greater levels of customization and allowed devices to offer suites services that can define a user’s experience.

More than ever it feels like the consumer is able to shape the future of the market and we’ll see this theme play out along side announcements around tablet computing, near field communications, LTE and gaming. All facets of the mobile industry from devices, the network and apps are all showing us something new and hopefully we’ll see a few surprises at this year’s event.

@Matthew_Whalley

@Edel_Telecom