Big Tech refers to the technology companies that dominated global commerce throughout the 2010s, or major technology companies such as Apple, Google, Amazon, Facebook and Microsoft. Rana Foroohar, a global business columnist at the Financial Times, describes what is unique about big tech:
“Their business models rely on capturing as much data as possible and tweaking it via algorithms to allow for hyper-targeted advertising.”
However, businesses across all sectors are under pressure to enter the business of data monetization. For instance, connected vehicles depend on the collection, and use of a wide range of data. Automakers could use this data to provide a range of services to car owners and drivers. In November 2020, GM announced they would begin aggregating and analyzing on-vehicle data to gain a greater competitive advantage in insurance. A 2020 KMPG report indicates that the value of vehicle-generated data is estimated to be USD 450 to 750 billion by 2030.
At the same time, however, this brings significant new challenges and obligations relating to collecting, using, and protecting such data. Studies show that if car manufacturers capture exclusive control of the data of connected cars, there could be “negative effects on competition, innovation and consumer choice on the markets for aftermarket and other complementary services in the ecosystem of connected and automated driving.”
All of this is to say that the problem of data governance isn’t isolated to big tech. The future world of the “Internet of Things” will require appropriate data governance frameworks across industries.