Sitra webinar 4 February 2021: The sustainable use of data – the European competitive advantage

1. Data as a new dimension
for CSR – What, Why and
How?
Heli Parikka, Specialist
Sitra
04/02/2021

2. The part of the economy that focuses
on creating services and data-based
products in an ethical manner.
Fairness means that the rights of
individuals are protected and the
needs of all stakeholders are
taken into account

3. But how do we get there?
Evolving
the
business
Designing innovative services &
building innovative business
models
Ethical principles, codes of conduct,
tools and practices
Regulation, standards, technology
§ § §
Involving
the people

4. Fair data economy is built on the
sustainable use of data
- Data has become the world’s most valuable raw material, but only a few can use
it to the full. Currently, personal data is used under unfair rules and human-
centricity is still missing.
- In the fair data economy data is shared between different parties with
individuals' consent in a seamless and transparent way. People use services that
improve their well-being and everyday life, companies achieve growth through
innovation, and the well-being of society increases.
- The vision is that Europe has a well-functioning data market, where companies
that use data responsibly succeed and make fair data use their competitive
advantage.

5. COMPETENCE
Fair data economy
favours leadership and
culture of
experimentation and
the organisational
culture and practices
are actively developed.
Companies foster deep
understanding and
drive to create new
services and products
ACCESS
provide users with
easy access to data
collected about them
and offer easy and
comprehensive tools
for controlling the
reuse of their data.
…which is built on fair data principles
TRUST
Organizations are
transparent in their
use of data. There are
sustainable rules for
the sharing and use of
data. The data that is
shared is of high
quality, data is
collected and used
ethically and it creates
added value for all
parties
SHARING
Organisations share
data with their
stakeholders, which
makes a functional
data market possible.
By default access to
essential data of each
sector is provided on
fair, reasonable and
non-discriminatory
terms.
VALUE
On Fair data economy
market, the best
services win regardless
of who has developed
them. Value is
delivered through
data-driven services
where raw data from
multiple sources is
combined and refined
HUMAN-
CENTRIC
APPROACH
Organizations respect
the rights of
individuals, customers,
end users and
employees
The company offers
functionalities that are
required to enable data
sovereignty for both
individuals and
organizations.
The company
understands its data
repositories and has the
competence required to
use them.
The company’s
consideration of the
rights of
individuals and
organisations exceeds
statutory requirements .
Company is transparent
about the collection,
management, use, sharing
and erasure of data. The
company has defined
ethical principles for
developing and using
algorithms and artificial
intelligence.
The company
creates value with the aid
of data – even gratuitously
– not only for its own
operations but also for
people, society and the
environment.
Fair data practices can be
implemented internally
but sharing data with
other actor is opens up new
value for the organization
and drives fair data
ecosystem as a whole.
The principles of a fair data economy are based on the principles of a data economy, defined during
Finland’s EU Presidency in 2019: Share, Trust, Innovate, Access, Learn and Act
The mandatory characteristics of the organizations using data in fair manner are following.

6. But what is human-
centricity in this
equation?
- Focus on (self-)sovereignty, self-
determination, self-governance,
autonomy – “people involved with
the generation of data.”
- Human-centric business models (be
they B2C, B2B, or B2G) take
people’s and societies’ interests
as a guiding principle; regulation
is designed in a way that assumes
and guarantees that data about
people is being used for their and
their communities’ benefit, and
technology prioritises humane values
(including social and ecological
ones).
Vs. Organisation-
centric approach
- Organisation-centric approaches turn
data into resources for companies
(business), control what
organisations can and cannot do with
data (regulation) and aim to enable
the most efficient possible data use
for data-controlling organisations
(technology) — without fully taking
into account the interests of people
and of society.
Source: http://www3.weforum.org/docs/WEF_On_the_Importance_of_Human_Centricity_2021.pdf

7. Data sovereignty as the key
“A capability of an individual or an organization to have control over their personal and business
data. Individuals and organizations should be able to know and control which party holds their
data, under what conditions (purpose, duration, reward), where the data is kept, and who are able
to re-use the data respectively.” https://datasovereigntynow.org/
Four key aspects need to be met holistically,
which means fundamentally combining
human interests with commercial interests.
Data sovereignty Pre-study. Sitra, Futurice (2021)

8. Data sovereignty from the individual point
of view

9. Data sovereignty in practice -
organisation approach
CONNECTIONS
We can offer “application
roaming” that preserves
existing data and
connections
TRANSACTIONS
We can offer our customers
more comprehensive
services
DATA DONATIONS
We can practice our data
strategy effectively and legally
SHOPPING
We can offer customers
tailored shopping
experiences
INFORMATION
We can offer personalized search
engine support
LOGISTICS
We can offer our customers
end-to-end view on net
purchases
COMMUNICATION
We can support app-to-app
communication channels
MAINTENANCE
We can offer effective and
timely maintenance services
Based on Innopay depiction in https://datasovereigntynow.org/

10. But we still have some gaps
Despite of GDPR…
– There is a lack of adequate ways for companies to prove they are operating in an
ethical manner in using customer data
– Individuals and customers lack ways to distinguish trustworthy digital businesses
and tools that reinforce data sovereignty
Companies do not yet make an explicit link between privacy and sustainable
use of data. Focusing on managing data securely and transparently will
drive value for business:
– Greater efficiency
– Greater possibilities for innovation through responsible data sharing
– Greater customer trust

11. “Data is more than just a valuable business asset; principled, moral data
practices are a corporate responsibility. In the long run, companies that
build trust through principled uses of data – even when there is a short-
term cost – will be best suited to thrive in a data-driven economy.”
- Jules Polonetsky, Chief Executive Officer of the Future of Privacy Forum

12. Human-Centricity in action - Making Data
Part of Corporate Social Responsibility
CSR, data privacy and trust are increasingly important for companies in differentiating
in the market, but there is a need for joint understanding of the topic.
- Workshop series organised by Sitra and FIBS in the spring of 2020 to create
competitive advantage from the fair data economy and understand the business
perspective
- Together with some 30 pioneering companies we set out to identify and define the
responsible use of data – what would this mean in practice?
- As a result the memorandum was published: CSR encompasses Data – Perspectives
and proposals for promoting the responsible use of data (10/2020)

13. - Proposals for companies on different
ways to ensure fair and responsible
use of data
- The key distinguishing
characteristics of a data responsible
company
- Tools and tips for companies
- Good practices
Three Aspects of
Sustainable Use of
Data
Sitra’s publication “Corporate
Social Responsibility
Encompasses Data” entails

14. And human-centricity in using the data
Trust
Transparency
Company Service/Product
How is the company developing
its data practices?
- What kind of development activities are implemented
- What values are they based on?
- How are my data needs taken into account and what is my
role?
- How is my sovereignty over data developed?
- How can I participate and influence on development?
- What knowledge and skills do I need?
- What kind of value the company creates with my data?
What kind of data is being collected
and how?
- How can I exercise my rights to my data?
- How can I manage my data?
- How is my data protected and governed?
- How do I produce the data myself?
- How can I participate in data collection?
For what and why is the data used?
- What is the purpose of the use?
- In what part of the service is data needed
and used?
How is my data being transferred, shared or
reused and by whom?
- How can I control the use of my data?
- How can I use the data myself?
How does the business communicate about
their data policies and practices?
- What is being informed?
- How are the data practices communicated to me?
- Where can I find information about the data used?
- How are my data requests answered?
- How can I give feedback and development ideas?
- Customer experience – What do other customers say
about their data experiences?
© 2021 Taru Rastas

15. COMPETENCE
Fair data economy
favours leadership and
culture of
experimentation, and
the organisational
culture and practices
are actively developed.
Companies foster deep
understanding and
drive to create new
services and products.
ACCESS
Organisations provide
users with easy access
to data collected about
them and offer easy
and comprehensive
tools for controlling
the reuse of their data.
TRUST
Organisations are
transparent in their
use of data. There are
sustainable rules for
the sharing and use of
data. The data that is
shared is of high
quality, data is
collected and used
ethically, and creates
added value for all
parties.
SHARING
Organisations share
data with their
stakeholders, which
makes a functional
data market possible.
Access to essential
data of each sector is
provided on fair,
reasonable and non-
discriminatory terms
by default.
VALUE
On the Fair data
economy market, the
best services win
regardless of who has
developed them. Value
is delivered through
data-driven services
where raw data from
multiple sources is
combined and refined.
HUMAN-
CENTRIC
APPROACH
Organisations respect
the rights of
individuals, customers,
end users and
employees.
The company offers
functionalities that are
required to enable data
sovereignty for both
individuals and
organisations.
The company
understands its data
repositories and has the
competence required to
use them.
The company’s
consideration of the rights
of individuals and
organisations exceeds
statutory requirements.
Company is transparent
about the collection,
management, use, sharing
and erasure of data. The
company has defined
ethical principles for
developing and using
algorithms and artificial
intelligence.
The company
creates value with the aid
of data – even gratuitously
– not only for its own
operations but also for
people, society and the
environment.
Fair data practices can be
implemented internally, but
sharing data with other
actors opens up new value
for the organisation and
drives the fair data
ecosystem as a whole.
The principles of a fair data economy are based on the principles of a data economy, defined during
Finland’s EU Presidency in 2019: Share, Trust, Innovate, Access, Learn and Act
The mandatory characteristics of the organisations using data in a fair manner
Fair Data Economy maturity model and criteria for evaluation

16. sitra.fi/en/
@sitrafund