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Trust:Tendigitaltrustchallenges:PwC
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Tendigitaltrustchallenges
NorbertSchwieters
GlobalLeader,ConsumerandIndustrialProducts&Services,PwCGermany
Dec04,2015
Weliveinanerawheretechnologyischangingourlivesataratethatevery
partofsocietyisgrapplingtokeepupwith.Technologycreatesenormous
opportunitiesandnewrisksalike.Manypeopleareworryingabouttheirprivacy
companiesareseeingtheirbusinessmodelscomeunderattackfromnew
digitalentrantsandtheircorporatebehaviourmagnifiedinrealtimethrough
socialmediaandgovernmentsarefacingdiminishedcontrolasnewformsof
communicationempowertheircitizenstomentiononlyafewchan
Itsnotjustthechallengeofkeepinguptospeedwithtechnological
developments.Itswhetherandhowthecurrentdesignofourprivateandpublic
institutionsneedstoadapttocopewiththesechangesandtorestorethetrustof
societydigitaltrust.InJune,tomarkthe800thanniversaryoftheMagna
Carta,welookedathowinstitutions(organisedandpurposefulinteractionsof
peoplebasedoncontract,laworculture)mustcreateandmaintaintrust
throughlegitimacy,effectivenessandtransparency,andhowglobal
megatrendsliketechnologyaredrivingtheneedforadesigntransformationandaboldnewcharterforourdigitalworld.
Herewetakealookat10digitaltrustissuesthatinourviewinstitutionsmustgrownewcapabilitiestoaddress.Theseissuescentrearoundtheethicsandcontrolof
dataaccessanduse,interactionthroughtheInternet,digitalriskresilienceandvaluecreationinthedigitalage.Theemergentandinterconnectednatureofthese
issuesandtheregulatoryresponsetothemhighlightthechallengesorganisationsface.Howandhowquicklywilltheyhavetoadapttheirdesigntocreate
trustagainstthisbackdropofdigitaltransformation?Weconsiderafewquestionsbelowinthecontextofthethreepillarsofatrustworthyinstitution.
Legitimacy
Howcanorganisationsbetteralignwiththeirstakeholdersinterests?
Whichstakeholderswillbeaffectedandhowshouldtheybeinvolved?
Shouldorganisationsfollowtheletterofthelaworbeguidedbyethicsbasedprinciples?
Effectiveness
Shouldorganisationsfollowtheletterofthelaworbeguidedbyethicsbasedprinciples?
Withtheimmediacyofsocialmedia,howcanrealtimeaccountabilitybeachieved?
Willnewpublicinstitutionshavetobecreatedinordertoensuredigitaltrust?
Transparency
Withsomanydigitalprocessesoperatingatalevelwecantseeorunderstand,whatleveloftransparencyisneeded?
Howwillinstitutionsneedtomonitorandreportondigitaltrust,bothinternallyandexternally?
Isauditingrequiredandhowshoulditbedone?
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Inthisbravenewworld,organisationsmustfundamentallyrethinkhowtheycreatevalue.Theexplosionofdigitaldataandthenewandinnovativewaysitsbeing
leveragedhavehugeimplicationsfortheeconomicvaluechain.Inaworldof(near)zeromarginalcostofproductionandrisingrelativevalueofintellectualproperty,
classicalcostbasedbusinessmodelsandtheimplicationsforincomegenerationanddistribution,inshortsocialwelfare,needtobereexamined.
Dataethicsandcontrol
(1)Dataprivacyandusagegettingthebalanceright
Towhatextentshoulddatabegathered,analysedandused?Thedigitalrevolutionhasgivencompaniesthetechnologiestocollectenormousamountsofdata
aboutconsumersandemployees.Itsalsoprovidedtheanalyticalcapabilitiestocreatenewknowledgeandinsights,affectinghowthisdataisused.Thepublic
hasbeenslowtorealisejusthowmuchpersonalinformationcompaniesarecollectingandusing,butastheybecomemoreinformed,managingandprotecting
privacyanddatausewillbecomeanimportantbarometerofhowmuchcompaniesaretrustedbytheirwiderstakeholders.
Isitsufficienttolegitimisedataaccessandanalysisthroughthelegaltermsandconditionsofacustomerapplicationforgoodsorservices,forexample?What
leveloftransparencyshouldthecustomerbeentitledto?Withpersonalinformationnowaneconomiccommodityinitsownrightandpotentiallythesolutionto
someofsociety'sgreatestscourgeslikedisease,howcanweachieveanacceptablebalancebetweenindividualprivacyrightsandthewiderinterestsofsociety?
Theethicaluseofdataisanotherissuethatneedstobeaddressedandsomethingthatregulatorsareincreasinglycallingtoquestion.Andwhatmeasuresare
neededtoeducatethepubliconrisksandbenefitsoftechnologyandactionsthatindividualscantaketomanagetheirtechnologyfootprint?Astheprivacydebate
isreframedbydigitaldisruption,organisationsmustlookatwhichdirectionandtowhatextenttheyevolvetheirinformationgovernancestrategiesandcapabilities,
andensurethatthemechanismschosentobalancecompetinginterestsareonesthatgeneratetrustandconfidenceamongsttheirstakeholdersandinthe
generalpublic.
Formoreinformation,pleasecontact:
DavidBurg|JointGlobalLeader,CybersecurityandPrivacy,PwCUS|Tel:+1(703)9181067|Email
PeterCullen|PrivacyInnovationStrategist,PwCUS|Email
StewartRoom|GlobalLeader,CyberSecurityandDataProtection,PwCLegal(UK)|Tel:+44(0)2072134306|Email
GrantWaterfall|JointGlobalLeader,CybersecurityandPrivacy,PwCUS|Tel:+1(646)4717779|Email
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(2)Thenewethicsofpeopledata
Theuseofpeopleanalyticsisallowingorganisationstoattract,developandretainkeytalentthroughtheuseofHRdata.Thisisturningtalentmanagementintoa
muchmorescientific,factbasedfunctionthaninthepast,andmorecloselylinkedtobusinessstrategyandperformance.Butwhiletechnologyhascompletely
alteredtheoperatingenvironment,rulesofbehaviorarestillplayingcatchup.Withsomuchdataaboutemployeeperformanceandactionsavailableto
organisations,whatgovernanceguidelinesandprocessesareneededtoensureethicalmonitoringanddatause?Areradicallynewpoliciesneededtomanage
trustissuesaroundmanagerialuseofinformation,ensuringandenforcinglegitimacy,complianceandtransparency?
Takewearabletechnologyforexample,whichcanexponentiallyincreasetheamountofinformationavailableaboutemployees.Howmuchofthisinformationis
necessaryoracceptable?Orconsiderhowdifficultitisnowadaysforemployeestokeeptheirpersonallivesseparatefromtheirworkingexistence:employersare
usingpersonalinformationsharedviasocialnetworkstomakecharacterdecisionswhenhiringandtoevaluatetherisksexistingemployeesposetothe
organisation.Moreover,asanincreasingamountofpersonalinformationbecomesmoreaccessible,cyberthreatscanshifttopersonalthreatsforemployees
suchasblackmail.Employersneedtobewaryaboutbothprotectingdataandchoosingwhatdatatheycaptureandtobeawarethattherearedemographicand
culturaldifferencesinwhatdataemployeesarewillingtohandover.
Formoreinformation,pleasecontact:
JonAndrews|JointGlobalLeader,PeopleandOrganisation,PwCUK|Tel:+44(0)2078049000|Email
JonWilliams|JointGlobalLeader,PeopleandOrganisation,PwCAustralia|Tel:+61(2)82662402|Email
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(3)Predictionsandprofilingofpeoplewhatarethelimits?
Usingbigdatatopredictbehaviourandprofileindividualsoffersobviousbusinessbenefits,forexampleinsegmentingcustomersandpredictingtheirspending
habits,instrategicworkforceplanningorinpreventingfraud.Butthesetechniquescancrossthelinewhenitcomestoindividualrightsandprivacy.Retailers,for
example,canmapindividualcustomerinformationtopatternstheyvedetectedintheirvastdatastorestoderivenewinformationabouttheseshoppersthatmay
makethemuncomfortableorjustifiablyornotinvokecountervailingmeasuresthatthecustomerisntawareof.
Profilingmethodsalsoopenthedoortodiscriminationandtopunishmentthatmaybeunfair.Ifwereabletopredictbehaviourtoagreatlevelofaccuracy,should
weactbeforethatbehaviourisexhibited?Shouldthemovementofindividualswithcertainprofilesforexampleberestrictedevenbeforetheycommitacrime?
Howshouldwebalancetheseconsiderationsintheinterestsofnationalsecuritywhenthreatsaregrowingacrosstheglobe,andwhereshouldthelinebedrawn
betweendataprivacyandsafety?Whileobviousareasfordebateincludepolicing,nationalsecurityandimmigration,theycanalsoimpacttheworkplace.
Consideremployerswhousepredictiveanalyticstoanticipatefuturerisksandshapepoliciesthatcouldhavepunitiveeffectsonspecificindividualsorgroups.Or
employeeswhoaregivenwearabletechnologytoencouragefitnessandwellbeingintheworkplace.Shouldtheytrustthattheiremployersarebeinggenuinein
lookingaftertheirhealthorworrythatdigitalhealthprofilingcouldleavethemoutofpocketforhealthinsurancecostsorevenoutofajobiftheydontconformto
certainstandardsofhealthandfitness?Whereshouldprofilingtechniqueslegitimatelybeused,howtransparentshouldtheybe,andwhatchecksandbalances
areneededkeepinginminddifferentcultures,outlooks,traditions,expectationsandlaws?
Formoreinformation,pleasecontact:
PaulBlase|GlobalandUSDataandAnalyticsAdvisoryLeader,PwCUS|Tel:+1(312)2984310|Email
AnandRao|BusinessAnalyticsInnovationLeader,PwCUS|Tel:+1(617)5304691|Email
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(4)Algorithmicregulationseeingthroughtheblackbox
Moreandmoreofourdailylivesarenowgovernedbyautomatedrulesalgorithmstoachieveparticularoutcomesthatareconstantlyadjustedasnew
informationcomesin.Thinkofsatnavsorcreditcardapprovalsorwebsitesthatsuggestwhatcontentyoumightliketoconsume.Inthedigitalworld,codeisthe
newlaw.Butunliketraditionallaws,thereisntthesamedegreeoflegitimacyletalonetransparency.Howcanwetrustsomethingwhenwedontunderstandhowit
works?Theenormouspowerofalgorithmsbringswithitaneedfortransparencyandaccountabilityandthelevelofscrutinythatorganisationswhowieldsuch
powerwillcomeunderfromtheirstakeholdersisonlygoingtoincrease.
Withouttransparency,howforexamplecanwebesurethatdecisionsarebasedoncausalrelationshipsasopposedtocorrelation?Orconsidertheblockchain
publicledgertechnologywhichunderliescryptocurrencieslikebitcoin:thetechnologycreatesdatathatbythenatureofitsorigincanbetrusted,butistrustbased
onlyoneffectivenessenough?Ortakethesharingeconomy.Itsnewbusinessmodelsenablebetteruseofexistingcapacitybuthavealsofuelleddebates,in
particulartheclashbetweenlegalregulationsthatbindexistingserviceprovidersversusthealgorithmicregulations(basedforinstanceonfeedbackloops)usedin
thesenewdigitalserviceofferings.Howcantrustandreputation,sovitaltosharingeconomy,bemaintainedwhensomeusersarewaryabouthowsomeofthese
rulesaredefinedandimplemented?Transparencyisalsoimportantfromtheviewpointofgovernance,riskandcompliance:towhatextentcanwetrustmachines
tocontrolmachines?Shouldweregulatealgorithmswithalgorithms,orhavehumansdoingthejobanddotheyhavetherighttechnicalskillsinsufficient
numbersandspeedtoregulateeffectively?Thisisparticularlyrelevantgivenforinstancetherapiddevelopmentofflashtradinginthefinancialmarkets.
Formoreinformation,pleasecontact:
PaulBlase|GlobalandUSDataandAnalyticsAdvisoryLeader,PwCUS|Tel:+1(312)2984310|Email
AnandRao|BusinessAnalyticsInnovationLeader,PwCUS|Tel:+1(617)5304691|Email
DavidBurg|JointGlobalLeader,CybersecurityandPrivacy,PwCUS|Tel:+1(703)9181067|Email
StewartRoom|GlobalLeader,CyberSecurityandDataProtection,PwCLegal(UK)|Tel:+44(0)2072134306|Email
GrantWaterfall|JointGlobalLeader,CybersecurityandPrivacy,PwCUS|Tel:+1(646)4717779|Email
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(5)Buildingsafeguardsaroundartificialintelligence
Theincreasinguseofdataandalgorithmstoautomateprocessesanddrivedecisionmakinginbusinesshasledtogreaterefficiencyandaccuracyacrossa
rangeofbusinessfunctionsandsectors.Andwiththecreationofalgorithmsthatcanlearnandmakepredictionsfromdata,independentofanyhumaninput,
machinesarebecomingsmarter.Buthowcanweensurethatouralgorithmsdontgorogueandtakeover?Towhatextentdoweneedtounderstandthese
algorithmsandultimatelyhavecontrolsoremergencybuttonstowrestcontrolbackfrommachines?
Theartificialintelligence(AI)debateshowsnosignoflevellingoff,withwidelydifferingviewsonwhencomputerswillhaveintelligentbehaviourthatsequivalentto
thatofhumans,ortheextenttowhichAIisanexistentialthreattotheveryfutureofthehumanrace.Butonethingisclear:theethicalandtrustimplicationsofAI
mustbeexplored.Onecrucialaspectwillinvolvebetterintegrationofhumanandmachinecollaborationsintheworkplace,tooverseeandmaximisetheefficiency
andeffectivenessofalgorithmicprocesses.Governanceframeworkswillalsoneedtobeassessedtoensurearobustsystemofchecksandbalances.While
manysocietiesareincreasinglycomfortablewiththegrowingroleofmachinesasanessentialtooltoimproveeverydaylife,suchmeasureswillbevitalinbuilding
agreaterdegreeoftrust.
Formoreinformation,pleasecontact:
PaulBlase|GlobalandUSDataandAnalyticsAdvisoryLeader,PwCUS|Tel:+1(312)2984310|Email
AnandRao|BusinessAnalyticsInnovationLeader,PwCUS|Tel:+1(617)5304691|Email
InteractionthroughtheInternet
(6)GoverningtheInternetwithoutbreakingitup
TheInternetconnectspeopleandharnessesinformationtoanextentneverseenbefore,buttodayitsunrecognisablefromtheegalitarianopenexchangeof
informationenvisagedjusthalfacenturyago.TakethesocalledNetNeutralitydebateintheUSpittingthemajorInternetServiceProviderswhowanttocreatea
premiumpricedsuperfastInternetforbusinessagainstconsumerrightsadvocateswhoarguethatthereshouldjustbeone,equalInternetforallusers.Inthe
internationalarena,anincreasingnumberofcountrieshaveenactedmorerestrictivelawsgoverningwebaccess,eitherforsecurityorprivacyreasons.Withtodays
businessworldcharacterisedbyaglobaldigitalpresenceanddataflows,thismeansmanymorecompaniesarebeingimpactedbylawsoutsideofeventheirmajor
markets.ContrastthesedevelopmentshowevertotheDigitalSingleMarketStrategybeingproposedinEuropewhichaimstobringdownregulatorybarriers.
TheInternethasalsobecomeanimportantsourceofcorporateandgovernmentpowerandinfluence,asevidencedbytheextenttowhichtheyhandleandmanage
ourdataraisingseriousquestionsforgreatersocietyaboutthetransparency,ethicsandlegitimacyofInternetusageinthefuture.Whatrulesneedtobe
establishedandwhoneedstoestablishtheminordertogovernthegatekeepersofourdigitalinformationandthosewhocontrolhowweaccesstheInternet?And
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howshouldregulatorybalancebeachievedtoaddressgrowingconcernabout
thefragmentationoftheInternetasmorecountriessetuptheirownstructures,
safeguardsandbarriers?
Formoreinformation,pleasecontact:
DavidBurg|JointGlobalLeader,CybersecurityandPrivacy,PwCUS|Tel:+1
(703)9181067|Email
MohamedKande|GlobalLeader,Advisory,Technology,Information,
CommunicationsandEntertainment,PwCUS|Tel:+1(202)7561700|Email
(7)Cybersecurityandcitizenprivacy
Cybersecurityisonlygoingtogrowinimportanceasweshiftmorecore
societalfunctionsonlineandweconnectmoreofourphysicallifetothe
Internet.Onamicroleveltheriskcouldcomefromhackerstakingcontrolof
ourconnectedcars,togivejustonerecentexample.Onthemacrolevel
theresthespectreofglobalcyberwarfaretargetingcrucialenergyorsecurity
infrastructure,commercialassetsormasstransportforexamplewith
businessescaughtinthecrossfireofrisinggeopoliticaltensions.Withthelack
ofinternationalconventionsaroundthistypeofwarfare,whathappensifyou
deployacyberweapon?
Ascybersecuritythreatsincreaseitslikely,ifhistoryisanyindicator,that
governmentswillseektoaccess,monitorandcontrolevenmoreofour
personaldata.Thesamewillnodoubtbetrueofcompaniesastheylookto
protecttheirvastdatabasesofconsumerandemployeeinformationalongwith
theirsystemsanddigitaloperationsfromhackersbentoncorporateespionage
orevensabotage.Shouldencryptionofinformationbeprohibitedincertain
cases?Orshouldtherebelimitstowhatdatacanbeaccessed?What
measuresareneededtoprotectinstitutionsagainstleaks,lossesand
manipulationofdatathattakeintoaccountconcernsaboutprivacyandethics?
Whatdogovernmentsandcompaniesneedtodoinordertoregainthetrustof
anincreasinglyscepticalpublicthatsdemandingmorecontrolovertheirdata?
Formoreinformation,pleasecontact:
DavidBurg|JointGlobalLeader,CybersecurityandPrivacy,PwCUS|Tel:
+1(703)9181067|Email
PeterCullen|PrivacyInnovationStrategist,PwCUS|Email
StewartRoom|GlobalLeader,CyberSecurityandDataProtection,PwCLegal(UK)|Tel:+44(0)2072134306|Email
GrantWaterfall|JointGlobalLeader,CybersecurityandPrivacy,PwCUS|Tel:+1(646)4717779|Email
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Digitalresilience
(8)Resilienceinthefaceofdigitaldisruptions
Ourrelianceontechnologytoenabledaytodayactivitieshasskyrocketed:wecheckintoflightsonline,accesshotelroomswithourmobiles,doonlinebanking.
Wedontreallythinkaboutuntilsomethinggoeswrong.Inthepast,companiescouldbeforgivenforoccasionalsysteminterruptions.Notanymore.Withso
muchofourlivesdependentontechnology,interruptionscanbedisruptiveandexpensive.Businessesacrosssectorshavebeenshakenbytheimpactofseveral
highprofileIToutagesandglitches,erodingdigitaltrust.Theabilitytokeepthelightsonisbecomingabusinesspriority.Butorganisationsarechallengedbythe
sheercomplexityoftheirITservices,withlayersofinfrastructureandmultipleserviceandprocessinterdependencies.Theyrealsounderpressuretodeliverwith
evergreaterspeedandlowercostandtospendmoretimeandresourcesongrowthandinnovation.Andtheyfacetheincreasingfrequencyandsophisticationof
cyberattacks.HowcancompaniesgainaholisticviewoftheITlandscapeandallitsrisks,anddesigntherightgovernanceandriskmanagementprocessesto
bettermanagethem?
Preparednessforthreatsanddisruptionsisoneaspectofdigitalresilience.Butthespeedandeffectivenessofresponsetoacrisis,andtheabilitytomanagethe
recoveryprocessarejustasvital.Considerthepowerofsocialmedia,whereanovernighttweetinAustralia,forexample,couldcauseaproductcrisisinBrazil.
Howcancompaniesensuretheycanreactoptimallytoeventsevenastheyreunfolding?Theirabilitytodosowillgreatlyinfluencetheirleveloftrustand
ultimatelytheirresilienceinaneverchangingworld.
Formoreinformation,pleasecontact:
DavidBurg|JointGlobalLeader,CybersecurityandPrivacy,PwCUS|Tel:+1(703)9181067|Email
PeterCullen|PrivacyInnovationStrategist,PwCUS|Email
StewartRoom|GlobalLeader,CyberSecurityandDataProtection,PwCLegal(UK)|Tel:+44(0)2072134306|Email
GrantWaterfall|JointGlobalLeader,CybersecurityandPrivacy,PwCUS|Tel:+1(646)4717779|Email
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Valuecreationinthedigitalage
(9)Redefiningownershipinavirtualworld
Digitalisationistransforminghowwethinkaboutownership.Asvalueincreasinglyshiftsfromphysicaltovirtualitscreatingalotofgreyareaswhenitcomesto
propertyrightsorwherevalueiscreated,increasingthescopefordisputesanderodingtrustintheprocess.Takethedigitaldistributionofworksforexample.
Whereprovidersdistributephysically,thecustomerasownerisfreetousetheproductshowandwhentheylike.Butwiththeshifttodigitaldistribution,theresthe
possibilitythatcustomerrightscouldbereducedorrevokedovertime.Ortakepersonaldata.Whoownsitcompaniesorconsumers?Mightpersonaldata
vaultswhichindividualsownandmanageasatransactionalcurrencycreateabusinessmodelforrealisingvalue,aswellasbolstertrustandaccountability
inthewaywesharedata?Cloudstoragealsoposesnewquestionsaboutpropertyrights.Forexamplewhatrestrictionsshouldtherebeontheabilityofcloud
serviceproviderstoshareinformationwiththirdparties?Shouldthelocationofthecloudserverdeterminewhichlawsarefollowed?
Theissueofwherevalueiscreatedalsohaslargeimplicationsforglobaltaxstrategies,ascorporateassetsbecomeincreasinglydigitalised.Accusationsthat
companiesarentpayingtherightamountoftaxintherightplacescanquicklyerodetrusteveniftheyrecompliantwithnationaltaxlaws.Whileproposedreformof
internationaltaxrulescanhelpaddresstheissue,perhapstheimmediatequestioniswhetherbusinesssimplywantstobetrustedtocomplywithregulationorfor
makingdecisionsbasedonprinciplesandvalues.Howcancompaniesbetterunderstandthewiderimpactoftheirtaxdecisions?Shouldtheyvoluntarilytakethe
leadintaxtransparency?Howcanbusinessesandgovernmentsworktogethertocreateworkablestandardsforaglobaleconomyincludingdigitalbusiness?
Formoreinformation,pleasecontact:
MaryMonfries|TaxPartner,PwCUK|Tel:+44(0)2072127927|Email
Dr.JanPeterOhrtmann|PwCLegal(Germany)|Tel:+492119812572|Email
StewartRoom|GlobalLeader,CyberSecurityandDataProtection,PwCLegal(UK)|Tel:+44(0)2072134306|Email
RickStamm|ViceChairman,GlobalTax,PwCUS|Tel:+16464711035|Email
(10)Managingthedarksideofworkplaceautomation
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Theresnodoubtthatautomationintheworkplacehasincreasedproductivity,
improvedproductqualityandreducedworkplaceaccidents.Its
alsocreatingjobsbothdirectly,intheprovisionofsuchtechnologiesand
throughredeploymentofworkers,andindirectly,throughthenontechroles
requiredtosupportandservicethisgrowingtrend,andtheeconomic
stimulationthatincreasedproductivitydrives.Atthesametime,however,
increasedautomationwillcontinuetoeliminatecertainjobs.Weveseenthisin
themanufacturingandlogisticssectors,andwillnextseeitsweepthroughwhite
collarsectorslikeaccountingandhealthcare.Ifnotmanagedeffectively,the
negativeimpactsofautomationonemploymentlevelsanddisposableincomes
couldaffecteconomicgrowth,aswellastheveryfabricofsociety.
Asourdigitalsocietycontinuestoevolve,businessandgovernmentwillhaveto
winbackthetrustofsectionsofsocietythatfeelmarginalisedbyanewtypeof
digitaldivide.Willitbeenoughtoretrainworkers?Shouldweseeeducationasa
lifelongprocess,withfundedschoolingforall,sothatworkerscancontinually
adapttheirskillstothechangingneedsoftheeconomyastechnology
advances?Thekeydifferencebetweenthepreviousagriculturalandindustrial
revolutionsandthecomingartificialintelligencerevolutionisthatjobswillbe
displacedatamuchfasterpacethanwhatitwilltakeforhumanstoreskill.
Butwhatcanwelearnfromhistoryaboutshapingnewlaws,chartersand
movementstoadapttothesocialchaoswroughtbyinnovation,asweconsideranagewherework(aswehaveknownit)maynolongerbethenorm?
Formoreinformation,pleasecontact:
JonAndrews|JointGlobalLeader,PeopleandOrganisation,PwCUK|Tel:+44(0)2078049000|Email
JonWilliams|JointGlobalLeader,PeopleandOrganisation,PwCAustralia|Tel:+61(2)82662402|Email
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Restoringtrustinthedigitalage
Againstthebackdropofthesedigitaltrustissues,institutionsarechallengedtoadapttheirgovernanceandorganisationaldesignbothrapidlyandeffectively,orface
riskstotheirlongtermsustainabilityasstakeholdertrustlevelserode.
However,thereisntaonesizefitsallsolutionacrosstheglobe.Aninstitutioncanachieveanoveralllevelofdigitaltrustwithvaryingcombinationsofthedegreeto
whichthethreepillarsoflegitimacy,effectivenessandtransparencyarerealised.Thepolitical,societalandculturalbackgroundofitsenvironmentplaysacrucialrole
here.
Organisationsprivateandpublicwillhavetobecomecomfortabledealingwithgreyareasandaconstantlyshiftinglandscape.Theyllhavetofindtheright
balancebetweenhowtheygetandusedataandthesocialconsequencesofthoseactionsandacceptthatthelineisalwaysmoving.Theyllhavetobuildagreat
dealofflexibilityintodatastrategiesandmodels.Andtheyllhavetocreateafoundationofvaluestoinformcompliance,governanceandethicaldecisionmaking.
Whichbringsusbacktotheneedforadesigntransformation.
Byitsverynaturedigitaltechnologylikeitssiblingsbiotechandnanotechhassetouttocreateanewdimensionofintelligencethatunderminesthecontrol
humanshadovertechnologyinthepastlikeneverbefore.Apartfromtheneedtorapidlyincreaseourcapabilitytounderstandtheimpactoftechnologythequestion
arisesastowhetherthecatalogueofhumanrightsneedstobeamendedinordertorestorecontrolandformtheconstitutionalbasisfordigitaltrust.Aswereright
onourwayintothemachineagethisisatthecoreofanewMagnaCartafortheDigitalAge.
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Whiletechnologyistransforminghowinstitutionsrelatetotheirstakeholders,digitaltrustisbutoneaspectoftrust.Inthecomingmonthswelllookfurtherintohow
organisationscantakeconcreteactiononembeddingchangesintheirdesigntoachievegreaterlevelsofoveralltrustworthiness.Thesewillcentrearoundthe
measurementoftrustandofthetrustimpactofincrementalchangesininstitutionaldesign.Thiswillformthebasisforinformedinvestmentsintotrust.
Contactus
NorbertSchwieters
GlobalLeader,ConsumerandIndustrialProducts&Services,PwCGermany
Tel:+492119812153
Email
Followus
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20152016PwC.Allrightsreserved.PwCreferstothePwCnetworkand/oroneormoreofitsmemberfirms,eachofwhichisaseparatelegalentity.Pleaseseewww.pwc.com/structureforfurtherdetails.
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