“the opportunities digital identity presents, when managed carefully, are enormous.”
Last year Liberty Global, an “international cable company” who “connect people to the digital world [enabling] them to discover and experience its endless possibilities” released a study, ‘The Value of Our Digital Identity’, as part of its “Public Policy Series”. The study was conducted by The Boston Consulting Group, a “global management consulting firm and the world’s leading advisor on business strategy”.
Liberty Global described the study as:
“provid[ing] a new perspective on consumer attitudes and behaviors regarding the use of their Digital Identity and the resulting economic value across traditional industry sectors, web 2.0 players as well as the public sector.”
The study (accessible below) is the most detailed on Digital Identity ever released and it makes some fascinating observations not least about ‘conditions under which consumers are willing to share personal data’ and the impact of Digital Identity on economic growth. They describe “Digital Identity” as:
“the sum of all digitally available information about an individual”
They observe that “a quarter of the world‘s population will be members of online social networks by 2015” resulting “not only in increased information volume, but also completely new types of data.”
In terms of the evolution of human communication, we have long argued that we are at the very beginning of historical change. The combined advent of social, Web-based technology and smart mobile/cell phones has created global free speech but we are still in the infancy of fully comprehending what that truly means and the value of Digital Identity:
From an economic standpoint the report shines some positive light:
“digital data is already a growth driver in an otherwise flagging economy. While traditional industries shrank by up to 3.6% from 2008 through 2011 in Europe, data-intensive sectors – where the use of digital identity is a key component of business – thrived with annual growth rates between 15% (e-commerce) and up to 100% (Web 2.0 communities).”
“the value created through digital identity can be massive – at a 22% annual growth rate, applying personal data can deliver a €330 billion annual economic benefit for organisations in Europe by 2020.”
Even more substantial is their assertion that:
“Individuals will benefit to an even greater degree, as the consumer value will be more than twice as large: €670 billion by 2020. The combined total digital identity value could amount to roughly 8% of the EU-27 GDP.”
Follr Profile Websites solve the problem that “few individuals are in control of their digital identity” but the more exciting consideration is how we can help a bigger, global audience; “Digital identity is relevant not just to Web 2.0 companies, but to the economy as a whole.”
Another question is how does an individual, an organisation or a Government “embrace the new digital identity paradigm of responsibility, transparency and user control?”
To access the report in it’s entirety click here: The Value of Our Digital Identity.