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Why Big Business Should Proactively Build for Privacy

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This article explores the rise of Privacy by Design (PbD) from the basic framework, to its inclusion in the GDPR, to its application in business practices and infrastructure especially in the wake of Artificial Intelligence.

We had the pleasure of sitting down with Dr. Ann Cavoukian, former 3-Term Privacy Commissioner of Ontario, and currently Distinguished Expert-in-Residence, leading the Privacy by Design Centre of Excellence at Ryerson University in Toronto, Canada to discuss this massive shift that will upend current business practices. We’ve also sought responses from top execs from AI start-ups, and enterprise to address the current hurdles and future business implications of Privacy by Design. This article includes contributions from Scott Bennet, a colleague researching privacy and GDPR implications on emerging technology and current business practices.

I call myself an anti-marketer, especially these days. My background has predominantly come from database marketing and the contextualization of data to make more informed decisions to effectively sell people more stuff. The data that I saw, whether it be in banking, loyalty programs, advertising and social platforms — user transactions, digital behaviour, interactions, conversations, profiles — were sewn together to create narratives about individuals and groups, their propensities, their intents and their potential risk to the business.

While it was an established practice to analyze this information in the way that we did, the benefit was largely to businesses and to the detriment of our customers. How we depicted people was based on the data they created, based on our own assumptions that, in turn, informed the analysis and ultimately, created the rules which governed the data and the decisions. Some of these rules unknowingly were baked in unintended bias from experience and factors that perpetuated claims of a specific cluster or population.

While for many years I did not question the methods we used to understand and define audiences, it’s clear that business remained largely unchecked, having used this information freely with little accountability and legal consequence.

As data becomes more paramount and as AI analyzes and surfaces meaning at greater speeds, the danger of perpetuating these biases becomes even more serious and will inflict greater societal divisions if measures are not put in place and relentlessly enforced.

Recently, I met my maker. Call it atonement for the many years I manipulated data as a marketer. We had the honour of talking Privacy with an individual I had admired for years. Dr. Ann Cavoukian, in my view, will drive a discussion across industry that will make business stand up and listen.

Remember when Canada’s Privacy Commissioner took on Facebook?

Ann Cavoukian has been an instrumental force in spreading awareness of Privacy, which brought her front in centre on the world stage, pitted directly against Facebook in 2008. Back then the federal Privacy Commissioner alleged that 22 practices violated the Canadian Personal Information Protection and Electronic Documents Act (PIPEDA). This eventually led to an FTC settlement with Facebook that mandated an increased transparency with its users, requiring their explicit consent before “enacting changes that override their privacy settings.”

Ann Cavoukian is a household name in technology and business. As a three-term Privacy Commissioner of Ontario, Canada, she has jettisoned the privacy discussion for a few decades. Today that discussion has reached a fever pitch as the EU General Data Protection and Regulation (GDPR), which came into effect May 25, 2018, includes Cavoukian’s long-advocated creation, Privacy by Design (PbD). This will raise the bar dramatically and any company or platform who does business with the EU, will need to comply with these standards. At the heart of GDPR are these guiding principles when collecting, storing and processing personal consumer information:

  • Lawfulness, fairness and transparency
  • Purpose limitation
  • Data minimization
  • Accuracy
  • Storage limitation
  • Integrity and confidentiality (security)
  • Accountability

Privacy by Design’s premise is to proactively embed privacy at every stage in the creation of new products or services in a way that’s fair and ethical. Cavoukian argues that by implementing PbD, companies would, in effect, be well on their way to complying with the GDPR.

What Makes this Moment Ripe for Privacy by Design?

In the 90’s the web was growing exponentially. Commerce, online applications, and platforms were introducing a new era that would dramatically change business and society. Ann Cavoukian, at this time, was in her first term as Privacy Commissioner of Ontario. She witnessed this phenomenon and was concerned it was going to grow dramatically, and in an era of ubiquitous computing, increasing online connectivity and massive social media, she surmised that privacy needed to be developed as a model of prevention, not one which simply “asked for forgiveness later.”

Imagine going to your doctor, and he tells you that you have some signs of cancer developing and says, “We’ll see if it gets worse and if it does, we’ll send you for some chemo”. What an unthinkable proposition! I want it to be equally unthinkable that you would let privacy harms develop and just wait for the breach, as opposed to preventing them from occurring. That’s what started PbD.

In 2010, at the International Conference of Data Protection Authorities and Privacy Commissioners in Europe, Cavoukian advanced the resolution that PbD should complement regulatory compliance, to mitigate the potential harms. It was unanimously passed. The reason?

Everyone saw this was just the tip of the iceberg in identifying the privacy harms, and we were unable to address all the data breaches and privacy harms that were evading our detection because the sophistication of perpetrators meant that the majority of breaches were remaining largely unknown, unchallenged and unregulated. As a result, PbD became a complement to the current privacy regulation, which was no longer sustainable as the sole method of ensuring future privacy.

These days the issue of data security has gotten equal, if not more, airplay. Cavoukian argues:

When you have an increase in terrorist incidents like San BernadinoCharlie Hebdo attacks in Paris, and in Manchester, the pendulum spins right back to: Forget about privacy — we need security. Of course we need security — but not to the exclusion of privacy!

I always say that Privacy is all about control — personal control relating to the uses of your own data. It’s not about secrecy. It drives me crazy when people say ‘Well, if you have nothing to hide, what’s the problem?’ The problem is that’s NOT what freedom is about. Freedom means YOU get to decide, as a law-abiding citizen, what data you want to disclose and to whom — to the government, to companies, to your employer.

Pew Research conducted an Internet Study post-Snowden to get a consumer pulse on individual privacy. Key findings cited:

There is widespread concern about surveillance by both government and business:
• 91% of adults agreed that consumers had lost control over their personal information;
• 80% of social network users are concerned about third parties accessing their data;
• 80% of adults agreed that Americans should be concerned about government surveillance.

Context is Key:

And while there are those who understand they are trading their information for an expectation of value, they should be fully informed of how that value is extracted from their data. Cavoukian cautions:

Privacy is not a religion. If you want to give away your information, be my guest, as long as YOU make the decision to do that. Context is key. What’s sensitive to me may be meaningless to you and vice versa… At social gatherings, even my doctors won’t admit they’re my doctors! That’s how much they protect my privacy. That is truly wonderful! They go to great lengths to protect your personal health information.

The importance of selling the need for privacy includes persistent education. Unless people have been personally affected, many don’t make the connection. Does the average person know the implications of IoT devices picking up the “sweet nothings” they’re saying to their spouse or their children? When they realize it, they usually vehemently object.

Context surfaces the importance of choice. It is no longer an all-or-nothing game subsumed under a company’s terms and conditions where one click, “Accept” automatically gives full permission. Those days are over.

And while some can object to analyzing and contextualization for insurance purposes, they may allow their personal health history to be included in an anonymized manner for research to understand cancers endemic to their particular region.

Context is a matter of choice; freedom of choice is essential to preserving our freedom.

Privacy Does Not Equal Secrecy

Cavoukian emphasizes that privacy is not about having something to hide. Everyone has spheres of personal information that are very sensitive to them, which they may or may not wish to disclose them.

You must have the choice. You have to be the one to make the decision. That’s why the issue of personal control is so important.

I extracted this slide from Ann Cavoukian’s recent presentation:

The <ahref=”https://www.wired.co.uk/article/china-social-credit” target=”_blank” rel=”nofollow noopener noreferrer noopener”>Chinese Social Credit System was created to develop more transparency and improve trustworthiness among its citizens. It’s a dystopia we do not want. China is a clear surveillance society that contradicts free society’s values. Cavoukian crystalizes the notion that privacy forms the foundation of our freedom. If you value freedom, you value privacy.

Look at Germany. It’s no accident that Germany is the leading privacy and data protection country in the world. It’s no accident they had to endure the abuses of the Third Reich and the complete cessation of their privacy and their freedom. And when that ended, they said, ‘Never again will we allow the state to strip us of our privacy — of our freedom!’ And they have literally stood by that.

Post-Snowden, I wrote this: The NSA, Privacy and the Blatant Realization: Nothing You Do Online is Private and referenced a paragraph written by Writynga in his response to Zuckerberg’s view at the time 2012 that privacy was no longer a social norm:

We like to say that we grew up with the Internet, thus we think that the Internet is all grown up. But it’s not. What is intimacy without privacy? What is a democracy without privacy?…Technology makes people stupid. It can blind you to what your underlying values are and need to be. Are we really willing to give away our constitutional and civil liberties that we fought so hard for? People shed blood for this, to not live in a surveillance society. We looked at the Stasi and said, ‘That’s not us.

The will of the people has demanded more transparency.

But we don’t want a state of surveillance that eerily feels like we’re living in a police state. There has to be a balance between ensuring the security of the nation and the containment of our civil liberties.

People will have Full Transparency… Full Control… Anytime

Since the passing of Privacy by Design (PbD) as an international standard in 2010 to complement privacy regulation, PbD has been translated into 40 languages. The approach has been modified to include the premise that efforts to ensure individual privacy can be achieved while developing consumer trust and improved revenue opportunities for business within a Positive Sum paradigm. Cavoukian is convinced this is the practical way forward for business:

We can have privacy and meet business interests, security and public safety … it can’t be an either/or proposition. I think it’s the best way to proceed, in a positive-sum, win/win manner, thereby enabling all parties to gain.

Privacy by Design’s Foundational Principles include:

  1. Proactive not Reactive: preventive not remedial
  2. Privacy as the default setting
  3. Privacy embedded into design
  4. Full functionality: positive sum, not zero-sum
  5. End-to-end security: full lifecycle protection
  6. Visibility and transparency: keep it open
  7. Respect for user privacy: keep it user-centric

Cavoukian contends that Principle #2, Privacy by Default is critical and, of all the foundational principles, is the hardest one since it demands the most investment and effort: with explicit requirements that change how the data is collected, used and disclosed, and will result in data policy and process alterations including new user-centric privacy controls.

Article 21 also states individuals have the “right to object” to the processing of their personal information at any time. This includes for use in direct marketing and profiling:

“The controller shall no longer process the personal data unless the controller demonstrates compelling legitimate grounds for the processing which override the interests, rights, and freedoms of the data subject.”

The business must be more explicit and go much further, beyond the traditional disclosure and terms of service. Purpose specification and use limitation require organizations to be explicit about the information it requires, for what purpose, and must elicit consent specifically for that purpose and that purpose alone. Later on, if a secondary use transpires, the organization will require the user consent once again. If disclosure is key to transparency, businesses will need to find a way to do this while mitigating consent fatigue.

Article 17 suggests a much stronger user right that belies current business practices: The Right to Erasure (“the right to be forgotten”)

The data subject shall have the right to obtain from the controller the erasure of personal data concerning him or her without undue delay and the controller shall have the obligation to erase personal data without undue delay.

While this statute will have exceptions like data that establishes the data subject as an entity: through health records and banking information, behaviour, transactions, future analysis in profiling, and contextual models are fair game for “the right to be forgotten.” The advent of the GDPR has provided business a glimpse of the potential impacts where companies experienced customer record volumes drop an average of 20% for customers who did not explicitly opt-in.

This is a truly user-centric system. Make no mistake, Privacy by Design will challenge current practices and upend current infrastructures.

This privacy UI simulation (IBM: Journey to Compliance) displays how potential user controls will work in real time and the extent to which the user can grant consent based on different contexts. This level of user access will require a data repository to purge user information, but must be configured with the flexibility to redeploy the data into systems down the road, should the user decide to revert.

 

Can Privacy by Design Create a Positive-Sum Existence for Business?
If you had asked me a year ago, I would have argued that Privacy by Design

is not realistic for business adoption, let alone, acceptance. It will will upend process, structure and policy. However, within the mandate of GDPR this is an inevitability.

We asked Ann Cavoukian to consider business practices today. Both Google and Facebook have received enormous fines in wake of the GDPR to the tune of $9.3 billion. Because of the recent Cambridge Analytica data breach, Facebook is investing millions in tools and resources to minimize future occurrences. It’s recent Q2 stock plummet took the market by surprise but for Zuckerberg, he made it clear they would be taking a performance hit for a few quarters in order to improve the platform for its users… not for its shareholders. While they are a beacon of how companies should behave, this clear “ask forgiveness later” model negated any appearance that this strategy was nothing less than altruistic.

Emily Sharpe, Privacy Policy Manager at Facebook contends that in preparation for the GDPR, they paid particular attention to the Article 29 Working Party’s Transparency Guidance:

We have prepared for the past 18 months to ensure we meet the requirements of the GDPR. We have made our policies clearer, our privacy settings easier to find and introduced better tools for people to access, download, and delete their information. In the run up to GDPR we asked people to review key privacy information which was written in plain language, as well as make choices on three important topics. Our approach complies with the law, follows recommendations from privacy and design experts, and is designed to help people understand how the technology works and their choices.

Cavoukian pointed to a study by IBM with the Ponemon Institutethat brought awareness to the cost of data breaches: It reports that the global average cost of a data breach is up 6.4 percent over the previous year to $3.86 million per incident. On a per record basis, the average cost for each record lost rose by 4.8% to $148. As Cavoukian points out, these costs will continue to rise if you maintain Personally Identifiable Information (PII) at rest.

The PbD solution requires a full end-to-end solution which includes both privacy and security:

  1. IT systems;
  2. accountable business practices; and
  3. networked infrastructure.

How Do You Address the Advertisers Who Successfully Monetize Data Today?

What do you say to advertisers and publishing platforms who play in this $560-billion industry? We can’t stop progress. The more data out there, the more demand from willing buyers to extract meaning from it. On the other hand, given the fallout from Facebook, some advertisers have been grey or black listed from advertising on the platform because of questionable practices or content. The platform changes have also significantly curbed ad reach opportunities for current advertisers. This domino effect is now compounded with mandates from GDPR to garner explicit consent and create greater transparency of data use. Ann Cavoukian said this:

The value of data is enormous. I’m sorry but advertising companies can’t assume they can do anything they want with people’s data anymore. I sympathize with them. I really do; their business model will change dramatically. And that is hard to take so I genuinely feel bad for them. But my advice is: that business model is dying so you have to find a way to transform this so you involve your customers, engage them in a consensual model where benefits will accrue to customers as well. Context is key. Give individuals the choice to control their information and gain their consent to exchange it for something they value from you.

Mary Meeker’s “Paradox of Privacy” points to the consumer’s increasing demand for products and services that are faster, easy, convenient and affordable. This requires systems that can leverage personal information to make this a reality for the consumer. Increased customization is the expectation but brings with it increased business risk. As long as current business practices persist, according to Cavoukian, it leaves their business vulnerable to, as we’ve witnessed, incessant data breaches and cyber attacks. Equifax and Target are two cases in point.

Communication with the data subject needs to be a win/win (positive sum). Can the business provide the necessary value, while respecting the choices dictated by the individual? When AI becomes more pervasive this will become even more challenging as streaming data will require more real-time interfaces and applications that allow access and individual configuration of data types across various contexts and vertical uses.

I asked a few executives from various data start-ups and from established enterprise businesses, who have had considerable business to consumer experience from advertising to social technology to network platforms, to weigh in on the privacy debate:

Josh Sutton, CEO of Agorai, was also former Global Head for Data and AI at Publicis.Sapient. In an advertising industry which drives hundreds of millions in revenue, the quest to build consumer relevance comes at a cost. This proliferates as more companies look to artificial intelligence to drive precision:

Data is clearly one of the most valuable assets in the world today — especially with the growing importance of artificial intelligence (AI) which relies on massive amounts of data. Data privacy needs to be incorporated into the fabric of how these technologies work in order for society to get the most benefit from AI. To me, data privacy means having the ability to control when and why data that you own is used — not the ability to keep it secret which is a far easier task. For that to happen, there needs to be open and transparent marketplaces where people and companies can sell data that they create, as well as a consistent set of regulations for how companies can use data.

Dr. Nitin Mayande, PhD, Chief Scientist of Tellagence, and former Data Scientist at Nike concurs with Josh Sutton. Nitin had been studying social network behavior for years and understands the need to transform current approaches:

Sooner or later I envision a data marketplace — a supply side and a demand side. Today, companies leverage data at the user’s expense and monetize it. The end user does not experience any real economic benefit. Imagine a time when data becomes so valuable the individual can have full control and become the purveyor of his/her own information.

For Dana Toering, Chief Revenue Officer at Yroo and former Managing Director at Adobe Advertising Cloud, his career saw the emergence of ad platforms, which heavily relied on treasure troves of data to gain increasing granularity for ad targeting:

As an entire ecosystem I feel we are just now coming to terms with the evolution of value exchange that was established between end users and digital publishers and software developers starting in October 1994 when Hotwired.com ran the internet’s first banner ad. The monetization of audiences through advertising and wide-spread data harvesting of the same audiences in exchange for ‘free’ content or software has enabled the meteoric growth of the internet and the businesses that are built around it but has also enabled massive amounts of fraud and nefarious activity. Thankfully we are at a tipping point where corporations/brands and users alike are taking back data ownership and demanding transparency, as well as consent and accountability. Defining and managing the core tenets of this value exchange will become even more important (and complex) in the future with the rise of new technologies and associated tools. So the time is now to get it right so both businesses and users can benefit long term.

I have had curious discussions with Dr. Sukant Khurana, Scientist heading the Artificial Intelligence, Data Science, and Neurophysiology laboratory at CSIR-CDRI, India. As an entrepreneur also working on various disruptive projects, he had this to say, echoing the above sentiments:

The debate between privacy and security is a misleading one, as the kind and amount of data shared with private companies and the government need not and should not be the same. AI has been vilified in data privacy issues but the same technology (especially the upcoming metalearning approaches) can be used to ensure safety while preventing unwanted marketing and surveillance. If the monitoring tools (by design) were made incapable of reporting the data to authorities, unless there was a clear security threat, such situation would be like having nearly perfect privacy. It is technologically possible. Also, we need to merge privacy with profits, such that by and large, companies are not at odds with the regulatory authorities. This means there needs to be smarter media and social platforms, which present more choices for data sharing, choices that are acceptable between the end customer and the platforms.

Alfredo C. Tan, Industry Professor, DeGroote School of Business at McMaster University has extensive experience on B2C advertising platforms, and understands the need for fair exchange, baked in trust:

If there was better control and understanding of how personal data is being used, I believe people would be willing to be more open. The balance is ensuring there is a fair value exchange taking place. In exchange for my data, my experiences become better, if not in the present but in the future. And as long as this is a trusted relationship, and people understand the value exchange then people are open to sharing more and more information. I am happy that Facebook, Amazon, and other platforms are aware that I am a male between 35–45 with specific interests in travel and pets, but no interest in hockey or skateboarding. Or that based on certain movies I watch, Netflix makes recommendation on what other types of content I would be interested in to keep me more entertained. And maybe that data is used elsewhere, with my permission to make experiences better on other platforms. The battle for data in an increasingly competitive consumer landscape is to increase engagement using personalized insight they have gleaned about their customers to ultimately create better experiences. I am certain many people do not want to go back to the anonymous web where all of us are treated largely the same and there was no differentiation in the experience.

Everyone agrees the regression to anonymity is not plausible nor tenable.

Privacy, Security, Trust and Sustainability

This is the future and it’s critical that business and government develop a stance and embrace a different way of thinking. As AI becomes more pervasive, the black box of algorithms will mandate business to develop systems and policies to be vigilant against the potential harms. Cavoukian understands it’s an uphill battle:

When I have these conversations with CEOs, at first they think I’m anti-business and all I want to do is shut them down. It’s the farthest thing from my mind. You have to have businesses operating in a way that will attract customers AND keep their business models operating. That’s the view I think you should take. It has to be a win/win for all parties.

Do you have a data map? I always start there. You need to map how the data flows throughout your organization and determine where you need additional consent. Follow the flow within your organization. This will identify any gaps that may need fixing.

TRUST: it takes years to build… and days to lose…

Perhaps this is the view that companies should take. Ann Cavoukian maintains that those who have implemented PbD say it builds enormous trust. When you have a trusted business relationship with your customers, they’re happy to give you additional consent down the road. They just don’t want the information flowing out to third parties unknown.

I tell companies if you do PbD, shout it from the rooftops. Lead with it. Tell your customers the lengths you’re going to to protect their privacy, and the respect you have for them. They will thank you in so many ways. You’ll gain their continued loyalty, and you’ll attract new opportunity.
I say to companies who see privacy as a negative, saying that it stifles creativity and innovation: ‘It’s the exact opposite: Privacy breeds innovation and prosperity, and it will give you a competitive advantage. It allows you to start with a base of trust, which steadily enhances the growth of your customers and their loyalty. Make it a win/win proposition!

Ann Cavoukian has recently launched Global Privacy and Security by Design: GPSbyDesign.org, an International Council on Global Privacy and Security. For more information on Ann Cavoukian, please go to Privacy by Design Centre of Excellence, at Ryerson University.

This article first appeared on Forbes: Part 1 and Part II.

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Growing world-class scaleup hubs through global lessons

Dean Hopkins

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Dean Hopkins, CEO at OneEleven, discusses how global scaleup hubs can learn from each other in order to build outstanding scaleups.

Any time a new global city or region emerges as a technology or innovation hub, the inevitable comparisons to Silicon Valley begin. New York as Silicon Alley, Israel as Silicon Wadi, and Toronto was recently dubbed Maple Valley to much scorn.

But it’s time for globally emergent innovation hubs to look beyond Silicon Valley as they work to build scaleup success, with each location learning from the specific lessons of one another to help all players in the community succeed.

Outside the original Valley, collaboration, diversity and connections into other ecosystems are major strategic advantages for any hub that wants to scale faster – more connections, more funding, more talent, more resources and more stories to share to teach others.

Just look at Stockholm: With a population of only one million, it has developed more Unicorns per capita than any other innovation ecosystem outside Silicon Valley. Among other things, connecting into other major hubs helped propel growth and seed opportunity.

With OneEleven now established in the UK, we’re applying lessons from two leading hubs — London and Toronto — to guide our strategy and propel our value. Both cities embody hard-earned scaleup lessons, like specialization, building ecosystem partnerships and leveraging the power of diverse leadership, that we believe are key to ecosystem and company success.

Focus on growing the greatest verticals

London has built an ecosystem around its strengths.

The city is by far the leading source of fintech innovation worldwide: it has the greatest concentration of fintechs and the largest workforce in fintechit dwarfs everywhere else even New York. In the first quarter of 2017, London saw $421 million invested in its fintech industry pushing New York out of the top spot for fintech investment. The City of London has worked with a variety of institutions to rally behind this emphasis on fintech, bringing together government, educational institutions and various sources of funding to embrace the fintech ethos.

The lesson to be learned from London’s focus on fintech is that innovation hubs need to concentrate their efforts in certain sectors where they already stand out as a global leader.

In Toronto, we’re starting to see a lot going on in the deep AI tech space, through the Vector Institute and other organizations building on a research base of over 30 years by Dr. Geoffrey Hinton and his colleagues. Of course, there’s room for improvement. While research labs are popping up regularly, with big partners involved, Toronto and Canada are lagging when it comes to patents and application of AI tech. As we build up this sector of our innovation ecosystem, we have to develop a well-rounded AI industry that includes a robust IP regime to keep AI innovation in Canada.

Diversity in leadership

Both London and Toronto also boast the highest demographic diversity of global cities, and demonstrate how valuable entrepreneurial leadership from all over the world can be. Forty percent of London residents classifying themselves as other than white according to a 2011 census, and that diversity powers the tech and innovation ecosystem in the city. Recent research shows that immigrants and people from minority backgrounds in the UK are twice as likely to be early-stage entrepreneurs.

Toronto is similarly diverse in its population, and talent is one of the reasons the city is seeing global recognition as an innovation hub.

Canada’s fast-track visa program prioritizes highly skilled workers and entrepreneurs  and was created as a talent magnet for Toronto especially – last year MaRS released survey results showing 45 percent of Toronto tech companies made international hires in 2017 alone, and 35 percent of respondents used the visas to hire.

Other scaleup hubs could build valuable leadership and collaboration from a similar approach to entrepreneurship: one which looks to bring in more diverse, global talent on the leadership side, as well as the wider talent side. Scaleup communities have to be competitive on the world stage by inspiring people from all over the world to come and build their businesses there, as a lack of immigration and global perspective can starve an ecosystem of oxygen.

Culture of collaboration

We’re very fortunate in Toronto to have a culture of collaboration that starts at the earliest stages of entrepreneurship, and continues throughout company growth. There’s a strong expectation that you will work together, and for that reason, forming a community in Toronto is almost a matter of course.

Hubs like MaRS, 111 and the DMZ, for example, have opened up prime real estate to provide space for young companies to grow and to foster their developing businesses. Canadians have proven they are wired differently and Toronto’s collaborative and inclusive culture is one of its strongest competitive advantages.

In London, there’s a hyper-competitive environment for businesses, and perhaps not as naturally collaborative of an environment. That might just be because the city has only just recently seen an effort made to boost that kind collaboration from organizations like the Scaleup Institute and Tech London Advocates.

But collaboration between government, academia and business is one of the things that makes London a world-class scaleup hub.

Collaboration between groups tends to be verticalized in the UK, with TheCityUK being a prime example; the industry-led body that represents UK-based financial and professional services companies showed that collaboration between financial institutions and fintech companies can speed up the process of creating innovative products and services. By looking at IP, regulatory compliance, data protection and privacy, TheCityUK provided seven possible models for collaboration between banks and fintech companies.

Big scaleup success stories can also influence the effort to increase collaboration in scaleup hubs — and London has some amazing stories to tell.

Renewable energy company Bulb grew from 85,000 customers to 870,000 in the space of 12 months, becoming one of the fastest-growing scaleups in the UK. The company’s founders Hayden Wood and Amit Gudka are immensely proud of their place in London’s ecosystem. This is how how big names in a scaleup hub can advocate for an entire community.

For our part at OneEleven, we’ll work hard to build up that kind of collaborative community and collective effort as we continue to expand into London’s innovation ecosystem. We want to ensure that the success of these companies continues past their early stage, into growth and on into the billion-dollar club. The middle chapter is currently not being written in London — despite early stage support for companies and big success stories — and that’s what 111 is here to address.

Global scale through collaboration

Innovation hubs around the world can also work together to take the friction out of companies expanding between markets. Furthermore, cooperating markets can increase their competitiveness by promoting an exchange of innovative business practices, and reap the economic benefits that scaleups can bring to innovation ecosystems.

London and Toronto are a good example of global collaboration, as they the two cities have begun to explore greater cooperation when it comes to facilitating expansion between hubs.

The Mayor of London’s promotional agency London & Partners has opened an office in Toronto to better encourage Canadian businesses seeking to expand to consider London for their next destination, and to support UK businesses seeking expansion into Canada’s market. Over the last decade, the organization says 44 London businesses have expanded into Toronto and 118 Canadian businesses have set up shop in London during that same period.

This is only the beginning when it comes to proper cooperation between these two cities: government, academia and innovation hubs should work together to encourage scaleups in their efforts to expand between international markets.

Greater than the global sum of our parts

At OneEleven, it seems to us that the unique evolution, and now collaboration, between the London and Toronto ecosystems signals the rise of a global network of innovation that is in its early stages.  Such a global network, powered by the diversity of each market, promises to have a dramatic effect on the ability for scaling companies to access talent, customers, investors and partners much more easily.  We are excited to be a part of the rise of this globally connected and collaborative ecosystem that builds on what was started in Silicon Valley, but brings innovation into the more global and highly connected digital present.

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Robots aren’t taking our jobs — just yet

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A robot may take your job one day, but so far there is little sign of this happening, according to analysis from the World Bank. While there are predictions about machines taking more jobs associated with humans, the pace is relatively slow.

The rise of automation has been reviewed by the World Bank chief economist, based on data collated from a number of industries. The news is mixed. Most advanced economies seen a decline in industrial jobs since the year 2000 and a rise of robots, in other parts of the world, notably East Asia, there has been a net gain of manufacturing jobs and little sign of robots replacing these types of roles.

Overall, estimations of the impact of automation have been less optimistic. For example, in 2017 Oxford University researchers Dr. Michael Osborne and Dr. Carl Frey interpreted data which suggested that over fifty percent of jobs in a developed economy are vulnerable in terms of humans being replaced by machines. Similarly, the World Economic Forum forecasts that machines and automated software will be handling fully half of all workplace tasks by 2025.

In contrast, some other predictions are overtly positive, such as a report from Siemens, that suggests the ‘fourth industrial revolution’ will add billions to economies and that, instead of fearing robots, the drive towards automation will actually generate more jobs.

In relation to the World Bank analysis, World Bank’s Chief Economist Pinelopi Koujianou Goldberg, interviewed by Bloomberg, states: “This fear that robots have eliminated jobs — this fear is not supported by the evidence so far.”

To support this she draws upon the analysis contained within the World Development Report 2019, subtitled “The Changing Nature of Work.” The report is considerably pro-technology, indicating: “Work is constantly reshaped by technological progress. Firms adopt new ways of production, markets expand, and societies evolve. Overall, technology brings opportunity, paving the way to create new jobs, increase productivity, and deliver effective public services.”

However, as Goldberg discusses in the World Bank report, the range of different work undertaken will alter, with employees far more likely to hold several different jobs over the course of their careers instead of holding down a position with the same employer for decades.

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Technology

Proptech set to disrupt real estate in 2019

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The real estate industry is not only the oldest but the biggest of our business entities, and today, technology is starting to disrupt it.

There’s a word for this kind of real estate technology. It’s called “proptech,” a technology developed specifically for the property market. Proptech brings together multiple facets of the industry — from planning and construction, to the sale of a property.

Proptech platforms allow realtors to remotely present on property development and sale information, but this is just one small part of what can be done with this technology. The platform also includes online services that transfer digitized documents to the cloud (which can then be digitally signed) and allow access to regulations pertaining to a particular property.

How proptech works

Devin Tu is the founder and CEO of MapYourProperty in Toronto, Canada. Tu’s company makes use of a digital tool that gives real estate developers a digital interface to access layers of important information about a property, including zoning bylaws and nearby proposals.

To show how the proptech app works, Tu described how it served one client. “We had a client looking at a site in North York that they thought was ideal. But then, they used our tool, which scanned 25 different regulations and checked developments in the area in real time,” said Tu. “It turns out they had missed a key floodplain regulation.”

Tu went on to say the client almost got stuck with a $10 million piece of property he would not have been able to develop. The area remains a parking lot today.

Regarding the developing trend of proptech, Tu notes that the recent growth of the property industry has come about because of necessity. There’s a shortage of land and competition is increasing, forcing realtors and clients to make quick decisions.

Property industry plays catch-up

Frank Magliocco, a partner at PwC Canada who specializes in the housing market, told Mortgage Broker News that the real estate industry has been historically slow to embrace new technology.

“I think what you’re going to see now is a fairly significant ramp up in embracing that technology once it becomes more mainstream,” said Magliocco. “It’ll be increasingly important to remain and be competitive in the marketplace. Once you see these technologies prove out, you’ll see more and more adoption.”

It looks like Canada is going to end up as one of the next major regions for property technology innovation. Besides MapYourProperty, several large Canadian organizations have made announcements of their move into the PropTech space, including Toronto-based Colliers International and Brookfield.

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