Identity Information: You Are the Product

by Andy Land, Vice President of Marketing

I recently read a very interesting article from AdWeek titled, “Whose Life Is It Anyway? Consumers are learning their data is currency and new companies are betting they can help them cash in.” There were several interesting points in the article that stood out to me:

Identity Information is fundamental to business: Identity and the sharing of our personal data is already a multi-billion dollar business.

Identity Information is the “new oil”:  All buying and selling relies on a human to make a purchase decision. Knowledge of the human gives sales a leg up, thus identity information becomes highly valuable. Users must see value in sharing their information – if not, it can become a scarce commodity.

The User Is Not Explicitly In the Value Chain:  Currently, the user is being treated as an afterthought. However, companies and services are being created that address the needs of the customer by helping them manage their digital identity and become part of the value chain.

With those interesting points in mind, I’ve been thinking about the role of identity in our world, and I see three critical roles that identity will play in the flow of commerce:

1. Identity as the Enabler – Identity information will enable new products and services that a company can launch and monetize.  Richer, more personalized products will ultimately be created.
2. Identity as the Currency – Identity information will become a form of currency as users offer up their identity information in exchange for value.
3. Identity as the Product:  Identity information will be what is bought and sold just like we sell products today. Companies will build businesses around brokering identity information.

As identity becomes more and more important to commerce, Identity Management professionals will need to look differently at their role in the ecosystem. They will need to become active participants that help all members of the value chain receive value in a trustworthy way. The goal should be to make the ecosystem open, transparent, and highly valuable to all parties. The current market around the buying and selling of identity information seems very shadowy, and it seems that users are duped into giving away their valuable identity information without a clearly articulated value. I hope this scenario changes and I feel hopeful when a business like Commonwealth Bank in Australia clearly states that if you share your personal data, they will give you monetary benefits.

We are entering a brave new era where all kinds of new products and services will be specifically tailored to the wants and needs of the user.  This highly personalized world can only happen if we get all the key constituents aligned and working as trusted partners.