Lemon Lime and Data: How Sprite Has the Secret to Data Security

It’s cold, it’s refreshing and it pairs well with spicy food, but what can Sprite teach the world’s biggest tech companies?

In the raging debate about companies’ use of personal data for profit, people often think there are only two choices: Hand over all your personal data, or stop using online services like Facebook or Google Maps completely.

But this puts the burden of responsibility on consumers, who may not have the resources or information available to make the right decision. Instead, companies handling personal data should take proactive steps for better, safer products. And they only have to look to the soda industry for inspiration.

For decades, soda titans like Coca-Cola and Pepsi enjoyed uninterrupted growth, building global beverage empires and becoming household names. While there were always concerns linking soda to health problems, they didn’t start hitting the mainstream consciousness until the end of the 20th century. By then, soft drinks makers were often fingered as the sole culprits for rising obesity rates.

Today, dozens of countries around the world, including the UK, France and Norway, have slapped a tax on sugary drinks. While the tax has not yet been introduced in the Netherlands, Coca-Cola took an unprecedented step there to stay ahead of regulations.  

Coca-Cola’s game-changing decision

In 2017, the company pulled normal Sprite from the market, replacing it with the no-sugar Sprite Zero. This means when you order a Sprite in Holland, you will be served the sugar and calorie-free version by default. It has become the “regular” Sprite.


Coca-Cola said Sprite had been performing well, so it wasn’t just another move to boost sales. Instead, the beverage giant was making an important step to future-proof its business and provide a healthier product, without forcing customers to choose. Although they eliminated the bad choices, they were still able to offer variety to consumers, with new flavors like lemon lime and cucumber. 

So what if we take the same step for data? 


While businesses handling our personal data assure us that our privacy matters to them, the news headlines tell a radically different story. How can consumers trust companies when there are high-profile data breaches and incidents of companies misusing our data on a regular basis?

Most firms handling personal data are unlikely to make a change unless they feel the noose of legislation tightening. But as we’ve seen before, legislation is not a magic bullet. Consider Europe after new data and privacy protections (grouped under GDPR) went into effect in 2018. According to the International Association of Privacy Professionals, almost 100,000 privacy complaints have been filed but only a few have led to meaningful penalties.

In the case of soft drinks, Dutch experts have questioned whether a sugar tax would even make a serious dent in consumption unless the tax was a substantial one. 

Even when there are stricter rules in place, they can still fail to change consumer behavior or address the loopholes that allow companies to conduct business as usual. The ubiquity of those consent forms on websites have only encouraged people to adopt a click-and-ignore mentality, so that they can just make the pesky pop-up disappear as quickly as possible.

When it comes to data privacy, there are those who argue that people can actively choose not to use the services of companies that exploit their data. Well, maybe they shouldn’t have to make that choice themselves. 

Facebook Zero 

Just like how Coca-Cola offers only the zero-sugar Sprite in the Netherlands, zero personal data could also be the norm. Companies may need to collect some user data in the course of doing business but there should be limits as to how much information they can amass on an individual. Why does a social network even need to know your gender, in the first place?

It has become untenable for firms to say they value consumer privacy while collecting and hoarding user data, putting it at greater risk of breach or misuse. The same way it was impossible for soft drinks makers to say they care about their customers’ health while shilling beverages loaded with sugar.

More importantly, instead of trying to defend their key sales driver, the soda companies innovated and looked for new opportunities. They reformulated, they introduced smaller packages and they made it easier for consumers to embrace a healthier lifestyle. As a result, Coca-Cola’s revenues have stayed sweet even if their drinks haven’t.

Finally, what could be the most interesting parallel between sodas and personal data monetization is their innocuous beginnings. 

The first fizzy drinks were marketed as health drinks. If you were ordering a Sprite occasionally to wash down your meal, then soft drinks weren’t going to send you to an early grave. But over the years, with growing prosperity and the convenience of technology like vending machines, people started guzzling unhealthy amounts of soda.

It’s much the same with the harvesting of personal data. Initially, receiving services for free in exchange for your data didn’t seem like a bad trade-off. But increasingly, consumers are beginning to realize they are getting the raw end of the deal. A tectonic shift has occurred and companies, especially Big Tech, need to make major changes to their approach. 

This is already happening in the world of alternative data – for instance, Suburbia tracks sales of consumer products like Sprite, with zero personal information. It shows there can be real value in non-personal data and it is how we harness it that matters.

Can today’s companies follow in the footsteps of the soda giants, and come up with a new formula for monetization? It might seem impossible, but Sprite shows lemon, lime and consumer benefits can win together. 

Data Monetization in a Pro-Privacy World

(First published on Dataconomy)

For over the last decade, some of the most successful companies on earth have made their riches by mining user data and selling it to advertisers. The big question is whether this will continue to be a sustainable business model with the ever-mounting scrutiny on data privacy and if not – what’s the alternative?

Many say the Cambridge Analytica scandal sparked a great data awakening by bringing to light the ways in which some companies were amassing and monetizing personal data about their users. As a result, Facebook was recently slapped with a record $5 billion fine and new privacy checks.

This isn’t a problem that is exclusive to the giants of Silicon Valley. In Europe, hefty fines have also recently been meted out to British Airways and Marriott for data breaches. As data protection complaints have doubled year-on-year, regulators will be getting tougher on companies to ensure their compliance with GDPR (General Data Protection Regulation).

Meanwhile, GDPR has driven a global movement as governments outside the EU, from Australia to Brazil, are set to introduce similar data protection regulations.

In addition, GDPR has helped to create greater awareness about data protection among the general public. The European Commission’s March 2019 Eurobarometer survey showed that about 67% of European citizens surveyed know what GDPR is.

The convergence of a compliance culture within organizations, stricter data privacy regulations globally, and consumers becoming more aware of their rights will continue to have a huge impact on businesses that profit from personal data, and even any business which collects it.

The situation demands urgency as the stakes have never been higher. According to a report by Gartner, by 2020, personal data will represent the largest area of privacy risk for 70% of organizations, up from 10% in 2018.

But better privacy for individuals doesn’t mean it’s bad for business. On the contrary, companies can use this opportunity to establish trust with customers while becoming more thoughtful and innovative about their approach to data monetization.

For many firms, data monetization has been inextricably linked with the personal data of their customers. However, they could be collecting, generating or archiving other types of non-personal data that could be valuable to certain end users. That is, the alternative data that may even be overlooked by the business generating it.

This data might be structured or unstructured, but new tools and technologies have made it easier to mine and process such data into insights. These insights could serve as timely intelligence to those in other sectors, like economists, analysts or investors looking to identify patterns and trends.

In fact, there are many use cases for such alternative data in the world of investing when every bit of timely information helps to gain an edge. This is where anonymized and aggregated data matters most and personally identifiable information has zero value. What economists and asset managers most want to know is how many soft drinks Coca Cola is selling across Europe this quarter, not whether John Doe bought a Coke.

The growing focus on privacy doesn’t mean data monetization has been taken off the table. Data will always be an important and valuable asset for any organization, but it needs to be harnessed with the full respect of individual rights to privacy. 

Valuing Your Data: A Checklist For Companies Looking To Monetize

Not all data is created equal.

When companies make their tentative first steps on the road to direct data monetization (that is, selling non-personal data they own), they have to start by understanding the value of their data. They need to assess what types of data they are collecting or generating in the course of business, and whether these could potentially be a new driver of revenue.


It’s often said that data is an important and valuable asset in any organization, but there’s a reason why it never appears on a balance sheet. Data valuation is a complex and challenging exercise. But knowing what their data is worth can help companies explore monetization, allocate resources and properly structure their technology infrastructure. 

In addition, they have to understand the market’s perception of value. Some firms might be overestimating the monetary value of their data, while others are unaware that their data is valuable, often to people in sectors and industries they may not have even thought of. A Forbes contributor compared the latter to the instance when companies realize they’re sitting on patents they don’t really need, but actually have value to someone else.

So what are the fundamental characteristics of high-quality data that organizations need to consider when trying to measure its value? Or more simply put – what makes data valuable and how much is your data worth?

1. Does it tell a story?

Does the data tell you something about the economy or market trends? Does it track which brands are growing or which products are in high demand? The better your data reflects real world behavior, the higher its value.

2. Is it unique? 

Generally, the more exclusive the dataset, the more lucrative it is. Do you have data that nobody else has, or is it already widely available from other sources? 

3. Is it anonymized and compliant?

If you are planning to share raw data, it needs to be stripped of all personally identifiable information (PII) to protect the privacy of individual customers. This is critical in order to monetize data responsibly, as data privacy is not optional but essential.

4. Is it timely? 

Is your dataset updated on a weekly, monthly or a near real-time basis? The latter is most desired, especially for economists and institutional investors that are looking for faster insights to stay ahead of the market. 

5. Is it specific? 

The more granular and detailed the data, the more valuable it is. (Though to reiterate, personal details should definitely be excluded!) For example, data showing a million smartphones were sold last week is valuable. But its value grows significantly if it also indicates how many of those smartphones were iPhone X or Samsung Galaxy, etc.

6. Is it complete?

Do you have data for every day, without any gaps? Missing data could be as bad as inaccurate data, as it provides only a partial view of the real trends. 

7. Is it reliable and consistent? 

If there are multiple servers where data is collected or stored, do they all add up properly? Or do they contradict with one another? Are there potential duplicates or other data errors?

8. Do you have archives of historical data? 

The further back your data goes, the better. Historical information is used in all kinds of analytics. In most use cases, two or more years of data are important to see how trends are changing over time. 

Can Data Monetization and Privacy Co-Exist?

Spoiler alert: Yes, they can.

The media often makes it sound like a choice has to be made between monetizing business data and maintaining privacy. But it’s not an either/or situation, it’s possible to do both at the same time.

Since the EU rolled out sweeping data protection directives through the General Data Protection Regulation (GDPR) in 2018, firms have been questioning how to leverage their data while being compliant.

Indeed, the Business Application Research Center (BARC) found the issue of data security is one of the major stumbling blocks for organizations in monetizing their data. If they fail to find a way past these barriers, they are not only missing out on a valuable opportunity, but they could also end up eating the dust of more agile competitors.

In its report, BARC stated that, “for many the risk of using data for internal and external monetization seems to outweigh the potential benefits.”

Maybe it is because businesses have been so unnerved by negative headlines regarding data privacy scandals that they fail to truly grasp what is possible under these regulations. 

Let’s focus on external monetization, which is basically about leveraging your internal operational data to create a new revenue stream. But today, the mere mention of “selling data” creates a fear of reputational risk. 

Ensuring data privacy should rightly be a chief concern for every company that is dealing with highly sensitive customer data. It’s not important just from a compliance perspective, but essential for building customer trust and loyalty. 

However, there are ways of monetizing non-personal data and this is often an opportunity that is overlooked. Companies may ask, “How can my data be valuable if it’s missing certain pieces of the puzzle?” That is because they assume the personal details form the critical components. But in fact, even an aggregated, anonymized form of the data could still form a complete picture for others. These could be people in different markets and industries, like economists, analysts or investors looking to identify patterns and trends. 

In addition, new tools and technologies have made it easier and faster to extract, refine, enrich and anonymize this data. It is this process, enabled by technology, that helps to wring the maximum value out of a company’s data. 

The early adopters in the use of alternative data, institutional investors, are rapidly increasing spending to acquire information that helps them make better decisions. Unlike advertisers, they have absolutely zero interest in personally identifiable information (PII). What they want is empirical, anonymized data that tells them how companies and markets are performing. How many beers are being sold by Heineken across Europe this quarter? Is Deliveroo seeing more orders than UberEats? Economists and analysts  have strict compliance procedures and actually demand that the data they buy are stripped of consumer-level data.

Service providers are well-positioned to capitalize on the rapidly growing opportunities to leverage their data in the digital economy. But there shouldn’t be a tug-of-war between monetization and privacy. Forward-thinking firms will understand how they can turn their data into profit while having the utmost respect for privacy. 

Disrupting payments and unlocking the value of data

(First published on Instapay Today)

PSD2: the latest tightening of data regulations will require strategic, operational and infrastructural changes for banks and financial institutions. 

Is it an opportunity or a threat though? Judging from current opinion, it appears the financial industry hasn’t quite made up its mind. If there’s anything worse for the sector than a clear and present threat, it’s uncertainty.

In a recent survey conducted by open banking platform Tink, one thing is clear, financial institutions dislike regulation. They named it as the biggest threat to their current business models. With the final PSD2 deadline looming on the horizon, there is little time for firms to get wrapped up in an existential crisis though. Most are soldiering on, despite their doubts, to ensure they can comply with the new directive. They are investing in digitization, greater security and privacy. 

However, it’s clear that they need to do more than the bare minimum in order to not only survive, but thrive, in this new ecosystem. For banks, payment service providers (PSPs) and other players, PSD2 unearths an opportunity for them to innovate and compete.

Data should increasingly be viewed as a natural resource like oil. Yes, data is the new oil is a somewhat tiresome cliché, but sitting on an oilfield is not much use unless you have the right tools, infrastructure and capabilities to make something out of it. In that sense, firms need to grapple with how they can turn what is essentially a commodity, into a competitive advantage.

To benefit from the opportunities that will arise from PSD2, there are two key approaches any financial or payments services firms can take in the new landscape:

1. Monetize their data – Increasingly, no one party will have a monopoly on data. This means firms will need to start thinking about how to leverage their distinctive data sets as part of a data monetization strategy – without compromising sensitive personal information.

When it comes to monetizing data, many are enticed by the opportunity, but they may view it as a challenge. They may raise questions over data ownership and privacy. 

However, there is great value in anonymized, aggregated information that is used for business or investment insights. In finance, the interest is in identifying broad trends and patterns – the focus is never on the who but the what and how much. That means it’s possible to extract value from this data while preserving privacy.

Outside finance, there are other examples of how sensitive data can be used in a way that benefits the public. For instance, Uber shares anonymized data aggregated from billions of trips taken by its users in order to help urban planning around the world. 

Transparent and responsible use of this data can open the door to new revenue streams. Data might not be the core business for many of these firms, but revenue from this can quickly become meaningful as the quantity and quality of data grow over time. 

The value of their data can also increase when combined with multiple sources for consumption by third parties.

It can sound counterintuitive to deal with the threat posed by open data by sharing it even more widely. But this allows firms to strengthen existing data and play a more important role in the transactional ecosystem. Payments providers are well-positioned because they have unique insights into both merchants and consumers. 

2) Get better customer insights – The changes that will be brought on by PSD2 will show that no incumbent can afford to rest on their laurels. The classic mindset of getting all your financial services from one provider is going to change. Many payment experiences will change and become more seamless.

One hot topic is instant payments. While consumers are the biggest benefactors of this trend, merchants can also benefit from it in a number of ways. Instant payments are data-rich so they can leverage real-time data like never before. 

What does this mean for firms in this industry both big and small? Well, it will become more important than ever to convert data to actionable insights. They can use such insights to improve the customer experience, drive loyalty and even introduce better offerings.

This can help incumbents become much more data-driven and customer-centric in their approach, leading to better decision-making. Meanwhile, smaller players that can nimbly respond to these insights can outmaneuver bigger competitors and eat away at their market share. 

Ultimately, firms need to tackle PSD2 from a strategic perspective and not just from a compliance perspective. The ones that proactively capitalize on these opportunities can future-proof their business and disrupt, rather than be disrupted.