Perspective: The Global Opportunities of the Age of Data

by: Jeanette Fitzgerald, Chief Privacy Officer, Epsilon

Sixty years ago, the first transatlantic cable was laid across the Atlantic Ocean, heralding a new era in communications between the U.S. and the European continent. Today, billions of bits of data are transferred between continents every minute, fostering the growth of global commerce and a worldwide economy.

This transfer of data is essential to continued innovation that impacts every American or European business in some way, and it’s essential to building programs and delivering results for our clients. When you focus in from the broad view, you see that behind many of these bits of a data is a person.

This connection to the individual is what drives Alliance Data’s cultural imperative to respect and protect data. Our businesses use data to market products and present offers to individuals who have indicated an interest in a product or category. Increasingly, this requires us to transfer data across borders.

In the U.S. alone, the data-driven marketing economy added $156 billion in revenue to the economy and fueled more than 675,000 jobs in 2012. And sharing data is essential to the marketing industries, with $110 billion associated with the ability to exchange data. These figures only reflect the data sharing and free flow of only the marketing industry in one country. Globally, the value of free flowing data is immense, bringing value to not only those countries that allow data to leave the original jurisdiction, but also those countries receiving the data.

The U.S. generally operates under an “opt-out” framework.  Responsible marketers collect, analyze and use information for marketing purposes, providing transparency and choice to consumers if they prefer to opt-out of the process. The EU, on the other hand, generally operates under an “opt-in” framework. Consumers there must opt-in to allow the collection, analysis and use of information. To facilitate the transfer of information across borders, the two areas are operating under the U.S.-EU Safe Harbor Framework, a self-certification process that ensures companies are meeting privacy standards.

As the role and amount of data continues to grow as a driver of the economy, both the European Union and the United States government continue to take a closer look at how data is used and protected. Our view at Alliance Data and Epsilon has been consistent: the free flow of data is essential to a healthy economy, provided companies operate within an ethical and responsible framework. For our part, this ethical responsibility is a foundation of our company, and we will always operate with the best interests of our clients while providing consumers with a choice.

Keeping the free flow of data moving across borders helps to ensure companies around the globe are able to increase productivity and continue global economic growth.

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As the Chief Privacy Officer, Jeanette Fitzgerald leads Epsilon’s government affairs, legislative and regulatory initiatives related to data protection and privacy. With her extensive knowledge of data privacy issues, she has spoken before domestic and international industry associations about the implications of data privacy for businesses and consumers, and has provided testimony before U.S. Congressional committees.

Data for Good: Secrets of Successful Nonprofits

by Dana Beckman, Senior Manager of Corporate Affairs at Alliance Data

We’re generating information, resulting in the creation of data, at a never-before-seen-pace. When I say “we”, that’s you and me, young and old, business and industry, and with increasing necessity, nonprofits… Yes, even nonprofits.

 As a data-driven marketing company, and supporter of countless nonprofit organizations and programs, we understand the vital need nonprofits have to collect, analyze and use data to drive positive outcomes in our communities.

“Nonprofits understand the important role of data in making sure their programs are effective and in securing funding for their services. Today and going forward, data will be even more essential to nonprofits as funders and prominent charity evaluators are beginning to require that they report outcomes, and the real impact they are having, not just how many are being served.” – Tina Weinfurther, President and CEO CNM Connect, an organization that provides management training, certificate programs, executive recruiting and consulting services to nonprofits.

We are part of a data-driven economy and data-driven society. Savvy nonprofits recognize that leveraging data makes them more sustainable – both in terms of program outcomes and future fundraising. I have seen the success of these organizations and evidence-based programs. They innovate, evolve and grow. Supporting this type of evidence-based work is not only a good investment, but it helps to shine a light on the positive impacts “data for good” can have on society.

“The Injury Prevention Service at Children’s Health System of Texas uses data as the bedrock of our in-hospital and community programs. Not only do we use data to target our outreach, but we also use the research into how and why children get injured to tailor our awareness campaigns. For example, last year we launched an evaluation into our water safety program. We delved into how and why children drown and how well they understood particular water safety messages. Our project revealed that a large percentage of children drown in pools that are not in their own backyard, which will be incorporated into our awareness campaign and education efforts.” – Marisa Abbe, PhD. CPST, Program Manager, Children’s Health System of Texas.

As the conversations around responsible use of data continue, I see the use of data differently. I see data as doing a whole lot of good. Smart nonprofits are looking at data the same way we look at data for our clients. Collecting it, analyzing it, and using it to drive decision-making to enhance their programs and demonstrate their social impact.

“As an organization that reaches out to elected officials advocating for changes to child protection policy, accurate data is essential to our success. It informs our decision-making and helps demonstrate to lawmakers where funding is most needed. Data also allows us to monetize our program outcomes. When you can tell someone that every dollar invested returns $5 back to taxpayers in reduced need for social services, that is a powerful tool.” – Madeline McClure, Founder and CEO, TexProtects

A tool – data is a tool. A tool, that when used wisely, responsibly and effectively, can help organizations address any issue plaguing society. And that’s data for good.

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Dana Beckman is a Senior Manager of Corporate Affairs at Alliance Data, where she oversees the corporate responsibility activities across the enterprise. “Alliance Data and our three businesses have always operated responsibly, but as we grow so does the expectation that we continually advance and communicate our efforts in a way that corresponds with the needs of the business and our various stakeholders.”

Moving Beyond the Headlines: A Framework for Cybersecurity

by Brian Wrozek, Chief Security Officer, Alliance Data

Food, water, clean air: the basics. We all need these to survive.  For businesses, next on the ladder of basics needs is security. These days, our sense of safety and security is being battered by steady waves of headlines. Large data breaches at reputable companies remind all of us that nation-state cyber terrorism, hacktivists and other threats are negatively impacting our digital world.

In response to this rising tide of public unease, the White House hosted its Summit on Cybersecurity and Consumer Protection on February 13^th in conjunction with Stanford University. Business leaders also gathered at related local events in several States where public sector agencies from Washington, D.C., as well as local county and city officials echoed the President’s call for increased information sharing. Alliance Data’s Epsilon business sponsored one of the largest regional events at the University of Texas at Dallas, bringing together hundreds of public and private sector members and local authorities. Importantly, the President took executive action to reinvigorate key agencies, create new information hubs and reiterated his call for the adoption of the National Institute of Standards and Technology (NIST) Framework for Improving Critical Infrastructure Cybersecurity.

The President signed an Executive Order, ‘Promoting Private Sector Cybersecurity Information Sharing,’ wherein he expanded the National Cybersecurity and Communications Integration Center’s authority to share information with the private sector. The President is encouraging the development of information sharing and analysis organizations to promote private sector information sharing around geographic centers, relevant industry sectors, or even specific cybersecurity threats. The intent is to make information sharing open to more companies and to develop automation mechanisms via common standards.

The President’s actions are intended to spur more relevant, timely and more applicable information sharing to allow both the government and the private sector to react more quickly to cybersecurity incidents, and more importantly to mitigate and minimize the possibility of these incidents happening in the future. Several of the Framework’s components are leveraged as part of our cybersecurity strategy and we are taking action by assessing where opportunities may exist to enhance our security protocols based on the NIST Framework. Alliance Data is active in the Financial Services – Information Sharing and Analysis Center. This enables us to take proactive measures to protect our information based on credible threat intelligence shared by industry peers.

Alliance Data supports strengthening public-private sector collaboration on this matter and are encouraged by the myriad of local, State and national agencies that are bolstering their cybersecurity efforts to enable companies to model responsible corporate citizenship.

Alliance Data will continue its commitment to safeguarding data and our systems. As the topic of cybersecurity continues to be an important matter, Alliance Data and its businesses are committed to continue to build trust and our reputation among our stakeholders.

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Brian Wrozek is the Chief Security Officer for Alliance Data, where he has enterprise responsibility for the Corporate Security Office including information security, physical security and life safety, business continuity and disaster recovery, and information management and privacy. Brian is also an adjunct professor at the University of Dallas teaching Cyber Security in the College of Business Graduate School.

Q&A with our 4 Top Privacy Experts — Part 2

Author: Annabelle Baxter, Senior Manager, corporate affairs, Alliance Data

If you missed the first part of our Q&A, you can catch it here.

I recently sat down with Kellie Watts, corporate ethics officer for Alliance Data, Jeanette Fitzgerald, chief privacy officer for Epsilon, Lori Mininger, chief privacy officer for Alliance Data Retail Services, and Mitchell Merowitz, vice president, corporate affairs and chief privacy officer, LoyaltyOne, to get their unique perspectives on data privacy.

	Kellie Watts, Corporate Ethics Officer, Alliance Data: In her role as the top ethics officer for Alliance Data and its three businesses, Kellie Watts developed and oversees all aspects of the Company’s global corporate ethics policy, which has received one of the highest ratings by a leading ethics and compliance consulting firm against nearly 1500 ethics policies.
	Mitchell Merowitz, Vice President Corporate Affairs, LoyaltyOne: Mitchell Merowitz is responsible for the corporate reputation, global privacy practices, regulatory and legislative affairs of LoyaltyOne. As Chief Privacy Officer, Mitchell also oversees the company’s database governance and international consumer privacy and data protection policies.
	Lori Mininger, Senior Director, Chief Privacy Officer, Compliance, Alliance Data Retail Services: Responsible for Regulatory Program Compliance initiatives including Data Privacy, Fair & Responsible Banking, Fair Credit Reporting, and Anti-Money Laundering/Bank Secrecy, Lori is also a contributor to the IAPP publication ‘Building a Privacy Program: A Practitioner’s Guide.’
	Jeanette Fitzgerald, Chief Privacy Officer, Epsilon: As Chief Privacy Officer, Jeanette leads Epsilon’s government affairs, legislative and regulatory initiatives related to data protection and privacy. With her extensive knowledge of data privacy issues, she has spoken before domestic and international industry associations about the implications of data privacy for businesses and consumers, and has provided testimony before U.S. Congressional committees.

Question: What is the biggest misconception about data privacy?

Fitzgerald:  Perhaps the biggest misconception is that data privacy is one person’s or one department’s job.  While I have the title of Chief Privacy Officer, every employee at Epsilon understands that they also are privacy officers – on behalf of the company and of our clients.  The core of our business centers around the responsible collection and use of data – offering transparency, notice and choice to consumers – so safeguarding data is just an everyday part of the way we do business.

Mininger: Often times when one thinks about privacy he/she thinks of the negatives such as inappropriate surveillance, unwanted marketing communications and data breaches.  However, there are as many positives as there are negatives if information is used responsibly.  Responsible use of personal information can result in personalized and tailored experiences for the customer, enable better customer service and customer awareness of products and services that may be meaningful to them, as well as increase efficiency and convenience.

Merowitz: Privacy vs. Security. It is not an either or matter. Security or the use, protection and responsible destruction of data is an element of privacy.  There are generally 10 internationally-recognized privacy principles. Safeguards – or security – is just one of the 10 principles.

Question: What can consumers do to learn more about data privacy?

Merowitz: Be accountable. In 2011, LoyaltyOne released the results from a privacy study in which among other very notable facts, just 22% of U.S. and Canadian consumers said they always thoroughly read the terms and conditions of data collection and use policies, contracts and agreements. Slightly more, 30%, said they often thoroughly read such terms and 28% said they sometimes read the terms thoroughly. Consumers need to better understand, and take responsibility for, the information they choose to provide and with whom they share it, and understand and agree to what is being done with the data, how to access it, challenge its accuracy and the terms for its retention and destruction.

Mininger: There are numerous online resources for consumers. My personal favorite is staysafeonline.org.  Stay safe online has a section dedicated to breaking down the privacy settings for popular applications. This provides tremendous value for users who are not as tech-savvy.  The Federal Trade Commission (FTC) also offers a number of resources for consumers at ftc.gov.

Fitzgerald:  As Lori mentioned, there are any number of government and non-profit organizations that offer information and advice about data privacy, but I also like to direct people  to the Consumer Knowledge Center on Epsilon.com.  We’ve spent considerable time developing resources for consumers, including an easy-to-understand guide related to marketing-related data privacy, FAQs, a glossary, and links to external resources as well.

Watts: As the Corporate Ethics Officer for Alliance Data, I’m acutely aware of the importance of maintaining the highest standards of data protection and proper data usage. As a consumer myself, that professional background means that I am vigilant and cautious before I download apps on my smart phone or tablet. I always make sure that the companies behind the apps I download are responsible users of data as well. Many consumers, who might be cautious about spam and avoid clicking on suspicious links in emails on their laptops, might not be aware that malware and viruses can also impact smartphones and tablets. Apps are one way hackers are getting access to mobile devices and their data, and protecting my data, at the end of the day, begins with me.