Do we care about our privacy?

21

October

2016

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How many times did you uninstall an app on your phone for privacy reasons? Because you didn’t want to share your details and personal data? I guess it is not that often. It seems like nobody really cares about their privacy, because almost everyone agrees on the terms and conditions offered by large firms like Facebook. Or even the terms and conditions of a simple flashlight app that asks for permission to access your photos, videos and Wi-Fi.  (Schellevis, 2014)


“I got nothing to hide” is an often heard statement.  That is in my opinion definitely not true, we got things ‘to hide’. Due to the technological developments regarding big data, commercial companies can know more about you than you should want. For example that someone is pregnant before her father knows. (Hill, 2012) And more important, they can influence you more than you want with this information. Personal information is an important aspect of the choices we make, so this information can be used to influence our behaviour. Privacy is also related to personal development, we make mistakes when we are young, and because these mistakes can stay private, we are able to adjust our behaviour or opinion. Privacy enables us to develop ourselves without definitely being confronted with our wrong choices from the past. Privacy is of vital importance.  (Solove, 2014)

To my surprise, research shows, the Dutch do care about their privacy. Four out of ten Facebook users in the Netherlands consider quitting Facebook due to privacy concerns. More than half of the Facebook users claim to be somehow aware of the ways of Facebook collecting our personal data. For 86% of the users, this is the reason to act reserved on Facebook. (NU.nl, 2016)

The problem we face is that we only have 2 options: you either stay on Facebook and accept you have less privacy, or quit you Facebook. The same research shows that two out of three users would like to stay on Facebook to be updated about their friends. Therefore, for a lot users, quitting is not really an option. This mechanism is true for almost all the application/websites we use.  I would suggest that either the governments should pressure these big organizations to stop collecting our personal data on this scale, or make laws to force companies like Facebook to stop. Because privay is of vital importance.


Hill, K. (2012). How Target Figured Out A Teen Girl Was Pregnant Before Her Father Did. [online] Forbes.com. Available at: http://www.forbes.com/sites/kashmirhill/2012/02/16/how-target-figured-out-a-teen-girl-was-pregnant-before-her-father-did/#368944d934c6  [Accessed 21 Oct. 2016].

Nu.nl (2016). ‘Vier op tien Facebook-gebruikers overwegen te stoppen om privacyzorgen’. [online] Available at: http://www.nu.nl/internet/4339451/vier-tien-facebook-gebruikers-overwegen-stoppen-privacyzorgen.htm l [Accessed 21 Oct. 2016].

Schellevis, J. (2014). Privacywaakhonden: veel apps onduidelijk over privacy. [online] Tweakers. Available at: https://tweakers.net/nieuws/98366/privacywaakhonden-veel-apps-onduidelijk-over-privacy.html  [Accessed 21 Oct. 2016].

Solove, D. (2014). 10 Reasons Why Privacy Matters. [online] Linkedin Blog. Available at: https://www.linkedin.com/pulse/20140113044954-2259773-10-reasons-why-privacy-matters?_mSplash=1  [Accessed 21 Oct. 2016].

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A digital driver’s license in the Netherlands: do we really want that?

6

October

2016

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On the first of October 2006, the paper driver’s license got replaced by a plastic card in the Netherlands. Main reason for the replacement: better security against fraud and forgery. Besides, the Netherlands was following other EU-countries, and in this way all the identity documents could be produced at one single factory. Fourteen years after the launch of the plastic card, the card will be unnecessary, since the RDW (Dienst Wegverkeer – ‘department road traffic’) is planning on developing an app for your driver’s license in 2020.

In a few years, the app should function as a replacement of the plastic card and serve as legal identification, according to the RDW. Next to this ambitious goal, not much is clear about the way the app will work, the RDW itself doesn’t even know how it will work. May be it won’t be an app, but another method with a smartphone. The core will be ‘Remote Document Authentification’, a method that is  already tested on another project: Idensys. With this method, smartphones can read data from the current plastic driver’s license which are produced after the end of 2014. These driver’s licenses contain a chip from the Dutch company Gemalto. The RDW states that the option for a plastic card will remain, as not everyone has a smartphone.

One of the reasons for digitalizing the driver’s license is efficiency. For example, it won’t be necessary to renew your driver’s license every ten years. Personally, I doubt if the improvement in efficiency, outweighs the cost of such IT-project. Another reason for this app is of course the safety: better security against fraud and forgery. But if we take a look at other big IT-projects of governmental organizations, one could doubt if it really will improve the security against fraud and forgery. I will discuss a few examples that will explain my doubts about the added value and safety of the digital driver’s license.

The OV-chipcard for public transport got hacked easily, which meant that with a simple NFC-reader, one could travel for free. Second example: a huge automation project at the ministry of security in 2013 failed. 25 million euro was budgeted, but in the end it costed over a 100 million and the system was not used by its users. Another example, the electronic patient record, took 15 years and costed 300 million euros before it was cancelled. The development of the C2000 communication system for the emergency services costed 1 billion euros, but the communication system failed at crucial moments. If you aren’t convinced yet that the Dutch government and IT are a horrible combination: More than 30% of the big IT-projects fail in a way that the system that is developed will not be used at all.  The cost for society? Between 1 and 5 billion euros a year, according to the parliamentary committee.

Of course I believe it is important as government to make processes as efficient and safe as possible. But will our digital driver’s license be more safe in 2020? And are these kinds of digitalisations really necessary, do they add enough value, compared to the price the IT-projects have?

Sources:

http://www.bnr.nl/nieuws/10128802/weer-mislukt-een-ict-project-bij-de-overheid

https://tweakers.net/nieuws/95618/een-derde-van-grote-ict-projecten-overheid-faalt-zodat-systeem-wordt-geschrapt.html

http://www.joop.nl/economie/detail/artikel/5907_justitie_investeert_in_falend_ict_systeem_voor_politie/

http://www.ad.nl/binnenland/rijk-faalt-bij-ict-projecten-het-gaat-mis-op-alle-niveaus~a354c62f/

https://tweakers.net/nieuws/95618/een-derde-van-grote-ict-projecten-overheid-faalt-zodat-systeem-wordt-geschrapt.html

https://androidworld.nl/apps/rdw-applicatie-fysiek-rijbewijs-vervangen/

https://tweakers.net/nieuws/116331/rdw-werkt-aan-app-die-rijbewijs-kan-vervangen.html

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Technology of the Week – From buying to stealing to streaming, an analysis of the music industry – Group 46

22

September

2016

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When was the last time you bought a CD? Have you actually ever bought a physical album from an artist? The music industry is a perfect example where technological innovations disrupted the market and led to new business models.

Here you can find our video

The traditional business model of the music industry is very simple. If people have heard a nice song, they could go to a nearby shop to buy the CD. This model includes mass production and distribution of the physical information goods. Sunk costs will arise because of mass production (or economy of scale).

Renegade business model
The music industry changed when internet became popular in the living room of families. It was possible to download illegal from p2p platforms. Because of the digitalization and the internet, information goods were still costly to produce, but extremely cheap to reproduce. Due to the availability of almost every song on the internet, music became commoditized, pushing the prices to zero for companies that sold the music legally.

New business model
Because artists and record labels didn’t earn money with the renegade business model a new business model had to be invented. The new business model includes legitimate online digital music services. This business model became a success in 2003, when Itunes was launched with a new pricing strategy, where consumers could just buy one song for 99 cents. A few years ago, music streaming services developped into a more popular way of consuming music with a different pricing and business model.

Spotify and Deezer
To make the technological innovation in the music industry as selling information goods online we have chosen two examples to make it more clear. Consumers don’t have to purchase physical CD’s where they can pay a monthly fee and stream all the music wherever and whenever they want. However, Spotify and Deezer they haven’t been able to make a profit out of it yet.

Both Spotify and Deezer offer two account options for users; the free-user account and the paid-user account. For the last one both streaming providers has a fixed monthly fee of €9,99.For the free-user account you only have to regristrate and you can already listen to music. The disadvantage of the free-user account is the advertising you have between the songs.

To gather revenue the companies have two different models for the two different options. For the free user account they have to gather revenue through advertising. With the paid-user account they generate money through the monthly fee of the users.

Future
We expect that less and less compact discs will be sold by unit. Streaming services will compete and prices will fall, since it’s hard to differentiate as music streaming company selling comoditized information goods. Artists and record labels will focus more and more on live performances, because in that way they can differentiate by delivering a more intens experience.

Selling music as an information good, is going to be hard.

Bibliography
Spotify for Artists. (2016). Spotify Explained. [online] Available at: https://www.spotifyartists.com/spotify-explained/#how-is-spotify-contributing-to-the-music-business [Accessed 22 Sep. 2016].
Tong, M. (2015). PwC Forecasts Music Industry Through 2019. [online] Music Asia. Available at: http://www.music-asia.com/2015/07/pwc-forecasts-music-industry-through-2019/ [Accessed 22 Sep. 2016].
Vaccaro, V. and Cohn, D. (2004). The Evolution of Business Models and Marketing Strategies in the Music Industry. International Journal on Media Management, 6(1-2), pp.46-58.

Written by group 46: Anne Merel Tolsma, Lotte van Lier, Puck van de Ven and Leon Graveland

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