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The scramble is on to ensure compliance with CCPA

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California companies are struggling to prepare for the impending implementation of the California Consumer Privacy Act (CCPA). To address this, new ways of workting are needed, says Tom Pendergast of the company MediaPRO.

Such is the extent of the challenge faced by businesses, one survey finds that 86 percent of U.S. companies describe CCPA compliance as a “work-in-progress.” Adding to that, MediaPRO’s 2019 “Eye on Privacy Report” found that half of U.S. employees have never even heard of the regulation.

In terms of what businesses need to to do to meet the CCPA January 2020 implementation date, Digital Journal caught up with Tom Pendergast, MediaPRO’s Chief Learning Officer for strategic advice.

Digital Journal: What is the idea behind the CCPA?

Tom Pendergast: At a glance, the big idea of the CCPA sounds simple: give individuals control over the use and sale of their personal information. The bill acknowledges that times are changing, and that it’s basically impossible to “apply for a job, raise a child, drive a car, or make an appointment” without sharing personal information.

And because technology plays such a big role in daily life, consumers are practically being held hostage by businesses: the self-appointed custodians of their data. In many cases, these businesses don’t always have the best interests of consumers in mind; for example, the bill cites the Cambridge Analytica scandal of March 2018 as a primary factor in motivating the public’s desire for privacy controls and transparency. So the big idea is to put control in the hands of the consumer or data subject.

DJ: What are the main requirements of the CCPA?

Pendergast: There are countless ways that the CCPA will impact a businesses’ policies and procedures, depending on how well it has already incorporated policies and practices around the handling of personal data. So at a micro-level, the requirements of the CCPA are too many to count and too diverse to accommodate readers from across different industries. However, there are five very clearly stated rights that the CCPA grants to Californian consumers which will guide compliance requirements. In other words, the CCPA’s requirements are to do whatever an organization needs to in order to grant consumers these five rights.

Those rights are, in brief: 1) consumers can know what data is collected about them; 2) consumers can know if their information is being sold, and to whom it’s being sold; 3) consumers can say “no” to sale of their information; 4) consumers can access their data (and amend/delete it, if desired); 5) consumers get equal service and price, even if they exercise their rights. The implications for how a company builds the capacity to respect those rights is pretty huge.

DJ: To what extent is the CCPA based on European GDPR?

Pendergast: I think it’s safe to say that the CCPA is inspired by the GDPR but it might be going too far to say it’s “based” based on the GDPR. Consumer rights granted by the CCPA are similar to the GDPR’s rights for EU citizens, but they aren’t copy-pasted from the GDPR’s text.

The CCPA differs in handful of significant ways. One notable way is that the CCPA doesn’t focus the “legal basis” for collecting and processing personal data, which is essential to the GDPR. In effect, the CCPA gives affected businesses more authority over why they process data, so long as they do so with consumer rights in mind. But zoom out a level, and I’d say that both the CCPA and the GDPR are motivated by a desire to shift the power dynamic around the control of personal data from corporations back to the individual.

DJ: What are the key challenges businesses face?

Pendergast: It will all depend on the businesses existing maturity around data protection. If they’ve already done all the work to get prepared for the GDPR, for example, then there will be relatively minor improvements or additions to both policy and technology. But if the business is just getting started on solid data protection and handling practices, the lift could be very heavy in terms of changes to internal data handling practices, business policies, etc. A recent report on GDPR showed that smaller businesses have gone out of business rather than taking on the costs of compliance, and I suspect similar things will happen with CCPA.

DJ: What should businesses be doing?

Pendergast: One could write whole books answering this question. It comes down to assessing what it will take to meet the requirements in terms of impact on technology, process, and people, and then building a systematic plan to get into compliance. For many businesses without the expertise to do that assessment, the first thing will be to hire an experienced privacy professional to help them make a game plan.

One element that businesses don’t consider frequently enough is the need to develop an educated population. Starting a privacy awareness program that informs employees about what constitutes personal information, how it should be handled and protected, and what they should do if they suspect there is a privacy incident is an important but often overlooked component of meeting regulatory guidelines.

DJ: Will the CCPA fully address consumer concerns over privacy?

Pendergast: The answer to this question is immensely complex because it ventures into the area of the human psyche, which is about as weirdly complicated a place as we could possibly investigate. First it’s important to consider whether consumers really want their privacy protected. This varies by individual and by what scandal is in the news cycle; regardless, people’s actions don’t seem to follow the assumption that people want privacy (the famous “privacy paradox.”)

For example, in the wake of Facebook’s various scandals and the “delete Facebook” campaign … Facebook’s user base is essentially unchanged (well, Facebook monthly deletes more fake accounts than there are consumers in most countries, but that’s another issue). Basically, people want the benefits that our modern technology provides while still wanting to remain “private.”

Wouldn’t it be nice to eat pizza and friend chicken and tacos and ice cream for every meal and stay at your ideal weight? Get out of here. Consumer concerns about privacy won’t be fixed by CCPA, in fact, most consumers probably won’t even notice it or take advantage of their rights. However, whether or not consumers realize it: they need those rights to protect them from abuse and collateral damage to our society, often without our knowledge.

The CCPA is 100 percent better than what we have now: nothing. The bill is an essential first step towards amending the Wild-West landscape of big data that exploits our personal info all the time and, as we’ve seen, complicates our domestic and international politics. It’s a problem that needs to be solved, and maybe CCPA will get the ball rolling.

DJ: Will there be a US wide roll out of CCPA type legislation?

Pendergast: It’s possible, but most people place the odds of federal privacy legislation getting enacted pretty low in the short term. In February, Congressional House and Senate hearings discussed the subject from various angles. Lawmakers are eager to avoid a “grab bag” of state laws percolating across the country, and such legislation is a mostly-sort-of-probably-bi-partisan issue. However, predicting whether legislation will make it to the president’s desk before the 2020 elections has about as much success as predicting the outcome of the election itself. My opinion is that we’ll be dealing with the multiplication of state laws mimicking the CCPA until after the next presidential election.

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Technology

Purolator to design tech-driven courier hub in Toronto

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A new national technology hub is being designed and built by courier service provider Purolator in Toronto, reflecting growth in the area’s e-commerce sector. The $339 million project will extend to 60 acres.

Purolator Inc.’s new super-hub in Toronto is set to open in 2021 and the expectation is that it will triple the capacity of the courier provider’s network. The development of the hub forms part of a wider $1-billion investment the company intends to inject into Canada across the next five years. Included in the plans is the intention to upgrade the vehicle fleet, taking advantage of more advanced technology. The central hub will help to coordinate Purolator’s 172 operations facilities and 111 shipping centres.

Also included in the scheme are plans to focus on the customer. This includes improving the online experience by making the main website easier to navigate. There will also be innovations in automation and the hub will be designed to meet environmental standards, meeting the Toronto Green Standards program (which details Toronto’s sustainable design requirements).

Quoted by Bloomberg, Purolator CEO John Ferguson says that the announcement “is one of the most ambitious in our company’s history and will future-proof our business. Purolator has experienced record growth over the past three years. We picked up and delivered over one quarter of a billion packages in 2018 and we expect our growth trajectory to continue.”

The Purolator hub is just one of several innovations making use of Toronto’s growing technology infrastructure. E-commerce company Shopify plans to increase its operations and to employ more staff over the next three years in the city.

Toronto’s cultural and economic diversity has fueled the city’s rapid growth in a number of high-tech areas, particularly for startups and developments in areas like artificial intelligence. This reflects the Canadian government’s plans to build and keep successful startup ecosystems, especially in the Toronto area.

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Connecting with ‘US:’ The necessity and value of the Internet of Things

Done right, the Internet of Things is the Internet of Us, connecting the physical and digital in a human-centered way that improves the world intelligently.

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By Frank Antonysamy, Vice President of Cognizant’s Global IoT and Engineering Services

U.S. food safety has been a concern since the days of Upton Sinclair’s classic novel about the stockyards and meatpacking industries in Chicago. Public reaction to The Jungle compelled Teddy Roosevelt and the U.S. Congress to pass food safety laws and establish the U.S. Food and Drug Administration in 1906.

More than a century later, threats clearly remain to the safety of domestic and global food supplies and the purity of water sources. Recently, we’ve learned about significant, ongoing, even deadly threats to our food and water. Food recalls have ranged from romaine lettuce to beef in the last 12 months; the tragedy in Flint, Mich., reminds us that poisonous chemicals still make their way into our water, as well. Faulty equipment or poorly executed processes often are to blame.

[Read more: The State of the Union for IoT Intelligence]

Solving Safety Challenges with Internet of Things

It doesn’t have to be this way. As the Internet of Things (IoT) begins to permeate our global infrastructure, sensor-equipped devices will soon outnumber the global population. There’s no reason to wait until communities face a food- or water-borne threat before fixing malfunctioning equipment or improving safety procedures.

Today we can automatically and rapidly glean information from IoT-enabled devices – about temperatures in IoT-equipped food storage and transportation equipment, for example, or the chemicals sensed by the pumps that filter and move our water, or the monitoring capabilities of the medical devices we increasingly rely on in hospitals and the home. With such intelligence, communities and businesses can address problems before they become a threat.

[Download]: Advancing Smart Manufacturing Operations Value with Industry 4.0

Increasing Food Safety on a Massive Scale

Recently, I had a conversation with Internet of Things maven Stacey Higginbotham on one of her Stacey on IoT podcasts. We discussed Cognizant’s work with Internet of Things adoption, and the ways in which these solutions can help businesses and the people they serve.

We talked about how one of the world’s largest sellers of fresh and frozen foods uses IoT-enabled refrigerators and freezers to reduce food spoilage across its global supply chain. Such spoilage not only results in financial losses due to food waste, but can also present risks to consumers. Although the business had already implemented alarms on the refrigeration systems in its distribution centers to signal malfunctions, it could take 36 hours for the maintenance operations team to respond – clearly too long when it comes to food safety and waste. There was also no mechanism to proactively monitor the refrigeration units and ensure timely service calls.

Our solution minimizes energy consumption and seeks to ensure consumer safety. It ties together sensors, cloud-based monitoring, algorithms that trigger alerts and warnings, reminders in handheld applications and a direct link of performance data to individual employees to encourage compliance with the company’s internal food safety protocols. The system covers hundreds of freezers, thousands of deliveries, 600 million data points and millions of pounds of food.

The results have been impressive. After rolling out the system to 100 of its stores, the business reduced priority response times from 36 hours to four hours, and decreased food loss by 10% in the first year by predicting refrigeration failures. The company aims to expand the system to 5,300 stores, with the potential to reduce operating costs by up to $40 million while ensuring the safe storage of food. (Hear more about this solution in the three-minute podcast recording below.)

[Download]: Designing Manufacturing’s Digital Future

From Providing Pumps to Offering Insights

These same principles guided our solution for a global manufacturer of high-technology industrial water pumps used in a range of applications, from providing drinking water for cities and villages, to processing waste water, to clearing and filtering the huge volumes of water moved during deep-sea drilling.

With the movement of all that water through its sensor-equipped and self-monitoring pumps, the manufacturer had access to a flood of information on everything from performance-based data on pressure and volume to the chemical composition of the water. By collecting and analyzing this information, the company could leverage and monetize its insights into not just equipment performance but also the safety of the water it delivers. If a certain chemical spikes in the water supply, for example, alerts are triggered, and municipalities can investigate. If water pressure or volume falls outside set parameters, precautions can be taken, including automatic alerts and even preemptive shutdowns.

Buyers of the pumps want this information. So, while using this data to improve the performance of its products, the business can also share insights with its clients on a subscription basis, opening up new revenue streams. The business is no longer just providing world-class high-tech pumps; it’s offering customers critical insights from the pumps it sells, as a value-added service. (Hear more about this solution in the three-minute podcast recording below.)

[Download]: Advancing Smart Manufacturing Operations Value with Industry 4.0

Connecting Things; Connecting to Our Needs

What links these two examples is their prioritization of real human needs as part of the solution. Clean and safe food and water are vital to human health, and companies that help provide themadd value.

For many years, large industrial enterprises have lived in two separate worlds: the world of all their physical assets (factories, equipment, buildings, people) and the world of their digital assets (software, workflows, algorithms, reports). Through sensor technology, network capability, security advances and IoT platforms, these two worlds are now becoming seamlessly integrated like never before.

Today, the shorthand for this ongoing integration is the Internet of Things. In reality, though, it’s the Internet of Us. Technology offers us a path to connect our physical world with a digital one, in which we occupy a new space and a new future: a place where the physical and digital come together, enabling businesses to transform their operational and business models, in a scalable way, through intelligence. (Hear more on the Internet of Us in the three-minute podcast recording below.)

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Healthcare

AI technology from IBM detects breast cancer risk before it happens

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IBM has taken a step forward in disease prevention by designing an artificial intelligence technology that can predict the risk of breast cancer developing up to one year before the first signs of cancer appear.

With this new step in medical diagnosis, IBM has developed an artificial intelligence model which is capable of predicting malignant breast cancer within a year with an 87 percent accuracy rate (when the output from the machine is compared with expert radiologists.) In addition, the technology could correctly predict 77 percent of non-cancerous cases.

The prediction methods uses both mammogram images and medical records in order to make the assessment, based on a data review of the medical evidence. This is the first application of AI to draw upon both images and data to make a prediction in relation to breast cancer.

At the heart of the deep neural network technology is an algorithm, which was trained by IBM technologists along with medical professionals from Israel’s largest healthcare organizations. The training of the artificial intelligence took place using anonymized mammography images which were linked to biomarkers (like patient reproductive history) together with clinical data. The training data-set consisted of 52,936 images from 13,234 women who underwent at least one mammogram between 2013 and 2017.

The aim of the medtech is not to replace the physician, but to act as a ‘second pair of eyes’, providing a backup in the event that something has been missed through conventional patient assessment. This could prove especially useful in areas with staff shortages where a second medical professional is not available to provide a second assessment.

An assessment of the technology has been published in the journal Radiology. The research paper is titled “Predicting Breast Cancer by Applying Deep Learning to Linked Health Records and Mammograms.”

In related news, IBM is applying artificial intelligence to catch Type 1 diabetes much earlier. IBM’s other health technology project could help identify patients at risk and help chart a course for tracking the condition. The predictive tool is a joint project between IBM and JDRF (formerly known as the Juvenile Diabetes Research Foundation).

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