The HAT (hubofallthings.com): Research
Insights, the Present & the Future of the
Personal Data Economy
Irene C L Ng
Professor of Marketing & Service Systems, WMG
irene.ng@warwick.ac.uk
@ireneclng
http://uk.linkedin.com/in/ireneclng
bit.ly/vcssblog
www.warwick.ac.uk/go/sswmg
www.ireneng.com
http://hubofallthings.com
Play video
https://www.youtube.com/watch?v=y1txYjoSQQc
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Background – the HAT Project
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A £1.2m multi-disciplinary research project funded by the RCUK led by
Professor Irene Ng at the University of Warwick
Six other collaborators from Cambridge, UWE, Surrey, Edinburgh,
Nottingham universities, and Warwick Economics
It has created the HAT: a multi-sided market platform that takes data
from connected services and devices
The research project will finish at end November 2015 with the
production of an alpha release of the HAT platform
£480k HARRIET continues the demonstration conducting live pilot
HATs in Birmingham
HAT project passes on to HAT foundation
HAT Project objective
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to demonstrate the opportunity for new
multi-sided markets for personal data, and
emerge new economic and business
models leveraging on IoT
Economic Model
• An economic model is the model of an ecosystem (like a
market) that distributes rents (ie revenues) either through
the pricing mechanism or regulation, according to what the
entity (such as a firm) does to stay within the ecosystem.
NEW economic models, often arising from new business
models and/or new entrants, redistributes rents within the
ecosystem occasionally resulting in the exit of existing
entities (disruption)
• Who does what, who gets what
• Examples systems with economic models - a retail mall, a
market, a multi-sided market (e.g. eBay, Amazon)
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What do you need for a market
• Value proposition (an offering, a good or service)
– Something that satisfies a need
• Value creation (the experience, consumption or
interaction with the good or service)
• Demand (customers)
• Supply (usually firms)
• A place to trade (e.g. a physical place, a tech
platform) for value capture (revenues/payments) to
occur
– With Accepted Regulation
– With Accepted Price mechanisms
What do you need for a multi-sided
market
• Analogy: A singles bar
• You need the boys, and you need the girls
• You need the reason why they will come to YOUR bar
The Market for personal data
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No
No
No
No
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value proposition (no product)
value creation (no experiences)
demand
supply
place to trade
• Reason: personal data is an externality (side effect)
of the current digital economy e.g. Pollution and it is
both a positive and negative externality
The Multi-sided Market for personal
data
• No value proposition (firms have personal
data, but can't exchange it)
• No value creation (no experiences of personal
data usage - data does not belong to
individuals)
• No boys
• No girls
• No bar
(And so the research began…….)
Instrumentation: DP0s, Toiler roll sensor, beauty box,
HAT house
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Fibaro (www.fibaro.com) home
system
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Fitbit (fitbit.com)
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Netatmo (netatmo.com)
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Beauty box (HAT team
Cambridge)
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Toilet roll holder (HAT team
Edinburgh)
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Facebook (www.facebook.com)
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Google calendar (https://
www.google.com/intx/en_my/
work/apps/business/products/
Consumption in terms of Use Visibility Measures (Parry
et al., 2015) and Intrusion (Speed, 2015)
Hyperdata - the need for a human centric ontology
Research Insights
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On behaviours with data
• Potential for personal data is still untapped, but huge (EU
reports)
• Ownership of personal data is challenging. Only access is
possible for individuals
• Still more generativity to come as individuals learn to use
their own data
• The link of data to decision must be made
• Privacy and confidentiality concerns - real and hyped
• Augmentation/amplification is key to adoption of data
empowerment and control for consumers
• Data is now sat in verticals
• Ontology for human centric data and Data transformation to
'horizontal' is key to its value to individuals
Research Insights
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On markets
• There are FOUR sides to the personal data market
• firms where the individual can acquire data,
• firms where the individual can give data to,
• firms where the individual can buy services to use their own
data for themselves
• Individuals
• There is no 'solution'. All sides of markets are too heterogeneous
• The need for a multi-sided platform to absorb variety and
heterogeneity and to emerge a market
• The externality of personal data - both positive and negative for
both firms and individuals
• The role of intermediaries in opening up new markets
• Tangential disruptive integration (instead of vertical or horizontal)
becomes possible
Lessons from the HAT project
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On privacy:
• The regulatory role of the state for personal data - under
resourced, slow and ineffective (Neuberger, 2015)
• Can the market or private contracts take on a larger role? Esp
when firms e.g. Tesco have more rights over its data when
partnering other firms than individuals have as users
Applying the lessons
Creating the HAT
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The HAT value proposition
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C – a Container – to securely store personal data;
O – an Ontology and database schema – allowing data to be
flattened and liberated from vertical silos;
D – a Data bundling tool – so data can be contextualised by the
individual and integrated to inform action;
E – an Exchange platform – a community owned for the exchange of
personal information with other individuals or with firms supporting
future P2P and P2B (people-to-business) services such as
Blockchains
Supported by the HAT technology
- The database schema
- APIs and middleware
- An application code of practice for PCST
http://hub-of-all-things.github.io/HyperDataBrowser/
A new multi-sided market putting individuals at the hubof-all-things, powered by the HAT technology
Firms, entrepreneurs sell
services to help individuals
uses, visualise and
analyse their own data
Firms, entrepreneurs
selling IOT devices ,
wearables and data
supply technologies
Personal HAT
Personal
ownership &
control of data
HAT2HAT sharing
Firms sell personalised
goods and services &
discounts in exchange
for data for discounts and
customized products and
services
• Individual curiosity, and an
interest in protecting and
benefitting from personal
data drives the supply
market
• And hence the use market,
generating Disruptive
business models and
opportunities for firms and
entrepreneurs
• Supported by open source
technology
Research Insights - market configurations and economic
model
HPP
Host
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Cloud
HATs
The need to evolve user
contracts on personal data
into private contracts,
whatever the configuration,
for maximum choice (for
privacy, exchange and
security) and scalability for
personal data
HPP
HATs
Microcloud
HATs
Hard
HATs
HPP
Host
HPP
Cloud server
HATs Host
HPP
Straw HATs
Research Insights
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On economic/business models for the future
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'Match' requires transformed data (horizontal) that to be retransformed back to a
vertical
Achieving network effects is key to emerging the market:
• Rollout plan - which market first? The interest of both sides and the
scalability of both sides
• may not need a use case for monetization. Just the use case for adoption
and scale ie focusing on the girls ONLY
• Revenue alignment is key to network effects
• Choice and Diversity is key to network effects - choice of applications, of
HPPs, of privacy standards, control, security and confidentiality
Achieving self regulation and self reinforcing ecosystem is key
Open innovation, open sourced is important for non-captivity & market
development. License for HAT database schema, API, logic - free from
proprietorship
Revenue models aligned to stakeholders value
All sides must have a stake in the quality of data generated, used and exchanged
Applying the insights and
going live.......
Launching the
HAT Foundation
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HATs are coming
http://nogginasia.com
http://enableid.com
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The need for scale and the HAT Foundation
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To work, the multi-sided market needs a large ecosystem of users –
millions of users, exchanging data in a regulated environment
Warwick University/WMG has agreed to gift the baseline technology to
a HAT Foundation to enable development of the ecosystem –
expected to comprise millions of HATs by 2020
The HAT Foundation will be a social enterprise
- Regulating the ecosystem
- Operating the ecosystem
- Scaling the ecosystem
- Delivering benefits back to
the community
Objectives of the HAT Foundation
1. Enabling the provision of freemium HATs to
individuals through licensed and certified
commercial platform providers and developers,
issuing and maintaining unique Identities for users
worldwide
2. Enabling and supporting the open-innovation
(non-commercial) HAT community of innovators
(that download the free HAT database schema)
3. Regulating the commercial ecosystem on behalf
of the community
- In terms of privacy, confidentiality, security
and trust (PCST)
- In terms of data transactions (to buy, rent,
use personal data) as instruments of value –
analogous to a bourse
4. Enabling R&D and continuous innovation within
the entire commercial and non-commercial HAT
ecosystem
HAT Foundation – constitution
Company limited by Guarantee:
•Regulates the exchange – as the
“Scheme Authority” (1)
•Guards the community interest
•Commissions new research thro’
Warwick University
Company limited by Shares:
•Operates the exchange – as the
“Scheme Operator” (1)
- Community development
- Provisioning / GUIDs
- Member service, including compliance
•Community-based technology
development
(1) – terms to align with the Digital Catapult’s Trust Framework Initiative
HATDeX delivering on the objectives under regulation
from a Members’ Company Limited by Guarantee
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The Scheme Operator – HAT Data Exchange Ltd (HATDeX) – has been
established as CLS for agility and to encourage investment
- Beneficial ownership limited to <20%
- 60% dividends being returned to the community
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Enabling provision of freemium HATs into the commercial ecosystem:
- Rolling out HATs to individuals world-wide through choice of licensed
and certified HAT platform providers (HPPs)
- Maintaining the public listing service and issuing GUIDs
Enabling the non-commercial open-sourced HAT eco-system
- Kick starting the community of users with an initial roll-out of
development platforms
- Providing developer support and technology forums
Providing data clearing services
Commissioning new R&D and validating updates for release
Governance of the HAT Foundation in the interests of
the community
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Expected that users will be Members of the CLG who will:
- Form an Advisory Board for the Foundation, advising both the
CLG and CLS Boards on community needs and concerns
- Appoint the Directors of the CLG
The CLG Board will maintain codes of practice and any formal
standards to be followed by the ecosystem to assure users:
- That data exchanges are “PCST compliant” and
- Of value from their exchange (buy, rent, use) of personal data
- (HATDeX will provide a certification service for HPPs and HAT
Apps)
The CLG Board will administer the rights conferred on Members by
the golden share in HATDeX
As the HAT Foundation matures it is expected that the Members of the
CLG will organize on a regional basis
Governance structure & management team
Members
Appoint
Board at launch
Chair: TBC
CEO: TBC
Head of Compliance
TBC
Non-Executives
TBC
Members’
Advisory Board
Appoint
Influence
HAT Community Trust
CLG Board
Golden Share
Shareholders
Appoint
HAT Data Exchange
CLS Board
Board at launch
Chair: Irene Ng
CEO: Paul Tasker
CTO: Xiao Ma
HofE: Andrius Aucinas
Non-Executives
Jon Crowcroft
Roger Maull
Glenn Parry
Mark Skilton
HAT Foundation business model
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Revenues will be from low and high scalable sources
(to be agreed by the community and set to incentivize
ecosystem development)
To the CLG:
- Membership fees to commission member services
- Donations, grants and 20% dividend from HATDeX
To HATDeX (the CLS):
- Member services such as certification and training
- A small annual HAT2HAT transaction fee for HATs in
active use and
- Metadata middleware services to HPPs
Launch funding
CLG (HAT Community Trust Ltd – to be confirmed)
•Founding Members of the CLG
CLS – HAT Data Exchange Ltd (Registered in England no. 9821157)
•Founders’ round share capital to establish HATDeX Ltd
•Community round share capital to operationalize HATDeX Ltd
•Indiegogo crowd-sourced funding to build and distribute an initial noncommercial platform release
Your data, your way, with you at the hub of all things
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