Andre Durand and others have been creating a classification of identity. Roger Clarke has been working on models for privacy. Brian Blaser has a breakdown of types of reputation (i.e. trusted identity). These are useful classification systems. But I feel there is a need to have another axis on our map, that links the type of identity data to its potential economic value. Any organization with ambitions to become an identity broker utility (think: struggling telco) can then do an inventory on its identity data and see where the unrealized value may lie in those customer data assets.
The model I am proposing has some similarities to the “mydentity” model which runs on the X-axis. That model (in my favorite form) has increasing levels of “personalization”, to recycle and over-abused buzzword. These scale through the following:
Some people combine layers 0 and 1 (which loses an important distinction, in my opinion). Some think that layer three should be called the “marketing identity”, but that seems too narrow and prejudicial a definition to me.
My value classification extends this to include a Y-axis, with increasing levels of certitude:
What do these mean? Read on.
Level 0
The base level is “untraceable in space and time”. That means it cannot be traced to me, and I can supply different data at different times without the fact being detected. So the fact that I am 32 and male can be revealed to any 3rd party, and as long as they can’t see me in person or hear me then I can equally claim to be a 23 year old woman tomorrow. There are no consequences of lying repeatedly.
Level 1
Level one data is as anonymous as level zero, but is traceable over time. Essentially, you have acquired a pseudonym. Cookies are the classic example of this. A web site like Priceline that wants to prevent you from submitting multiple identical bids (themselves level 0 data) uses a cookie to track you. You can lie, just not over and over.
Level 2
At the next level the data is at least traceable back to someone. You can lie, but it has consequences. You might also not be lying, but could unintentionally give inaccurate data. You can give your name, employee number, previous address. Someone may act on this data, for example by cutting a pay check or shipping a book to you.
Level 3
We add in validation to the data, also known as data quality. This is subtly different from level 2, and moving identity data from level 2 to level 3 is already big business. If I store my data in a profile, and keep giving it out, then it is more likely to be correct than if I have to enter it fresh each time. If someone checks my ZIP code against an address database, the data may not change one iota, but the meta data now starts to take on value.
Level 4
This is the ultimate level, where we add in verification. A trusted third party asserts that the data is true to some degree, in the context of some liability relationship for that assertion. The American Express logo on my credit card acts as an assurance to a merchant that they will be paid in return for entering my credit card number into their system. The assertion is relatively weak, since traditional magnetic stripe cards are easily forged. The credit card number has a check digit and is printed on a card, which at least makes for strong level 3 data.
It is interesting to observe that “theirdentity” is incompatible with a value beyond level 1. At best they can know a product was pitched to you last week. This value model helps us understand why mass market advertising is in such trouble. It also shows up the weakness in Google’s identity model: they are stuck at level 0 (what do you want to search for today?), and haven’t yet made it to level 1 (what should I return to you based on what you searched for before)? A next-generation search engine might look to exploit stronger identity data about both the searcher and the data sources.
So, what’s the link to the future of the telecommunications industry? Ah, I’ll keep that for the next installment…
Posted by Martin Geddes at 11:38 PMTrackBack URL for this entry:
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Just today found your space here from a mention on 'The Feature'. Educational and clarifying, to say the least.
I was fascinated by the above entry, and wonder if you could direct me to the next installment that you mention at the end of it. What is the link to the future of the telecommunications industry?
Posted by: at September 1, 2004 06:17 PM