The plastic card invasion

The plastic card invasion.

The tendency of modern data-driven economies is to structure economic activity in such a way that an increasing amount of data is generated. For example, the fact that only a few years ago few people in continental Europe used a credit card, and that now almost everybody who has a bank account also has a credit card, shows that payment by credit card is preferred to anonymous cash transaction. If somebody pays by credit card, there are computers that register the transaction. They record who paid what amount where, and for what purpose. This is valuable information. It allows businesses to "better know their customers". Credit card companies today belong to the largest data repositories anywhere. However, credit card companies have tried to introduce cash cards, or "electronic purses", plastic cards which can be used in lieu of cash in shops - a type of payment, that is not really catching on. In the small town of Ennis, Ireland's "information age town" a field test carried out by Visa, found that people are extremely reluctant to change their cash into bits. "It is just too modern", was the conclusion of an Ennis shopkeeper.

Credit cards may be the most common, but certainly not the only way in which an economic activity produces a data surplus. In the end, the data surplus generated by a credit card is limited to just a few indicators. The tendency of the data body industry is to collect as much data as possible from each single transaction. Therefore, a range of new plastic card applications is emerging.

Most big retailers or service industries, offer customer cards which reward customers with certain discounts or gifts when used frequently. However, the cost of these discounts is easily set off by the value consumer data that is generated each time a card is pulled through the magnetic reading device. Frequent-flyer cards are among the most common plastic data-collecting devices. Often such frequent-flyer cards are also credit cards, in which case travel and consumption data are already combined at the point of sale, creating further rationalisation of the process.

Electronic networks have created a general tendency to move to move marketing decisions to the point of sale, rather than locating them in central locations. This way, the marketing process becomes cheaper and more efficient for the company.

The ideal situation for the data body industry and for government bureaucracy would be a complete centralised storage and management of people's data, and a collection process the pass unnoticed and ensures that the data in question are always current. Many efforts in this direction have been undertaken. One of the most recent such projects is called the smart card. Also referred to as chip cards (because it operates not just with a magnetic stripe but also an computer chip) smart cards are multi-application "intelligent" plastic cards that carry a lot more than the usual information about its holder. For example, a smart card can carry details about right of access to facilities, credit information, social security, and electoral status all in one. Technically there are no limits to the type of information stored on smart cards. In principle it is possible to store an individual's entire data body on a card. Not surprisingly, smart card technologies have been most readily accepted in places with a lack of a privacy protection culture, such as the US, the UK, Spain, and some Latin American Countries.

The Irish town of Ennis, although striving to become "one of the technologically most advanced towns in the world" may have frustrated the expectations of the plastic card industry. Yet this is only a minute, if embarrassing, setback on the path towards global rationalisation of data collection. The economic benefits which the plastic card data collection technologies promises for retailers, E-commerce, marketing and bureaucracies all over the world have given rise to a wealth of research programmes, field tests, projects and government policies, all aimed at promoting the data body economy and adopting it as the business model of the future.

Links to plastic card trade associations:

Card Europe - Association for Smart Card and Related Industries

AIM - Global Trade Association for Automatic Identification and Data Collection

Card Forum

Smart Card Industry Association

Links to plastic card research programmes:

MIT (Massachusetts Institute of Technology)

Ohio University

Pittsburgh University

Cranfield University

Links to publications:

Card Technology Magazine

Links to EU research programmes

ADEPT2

COCLICO

COST219

DISTINCT

SAMPO

SATURN

SOSCARD

Producers

Schlumberger

Gemplus

Bull

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1961: Installation of the First Industrial Robot

Industrial robotics, an automation technology relying on the two technologies of numerical control and teleoperators, started to gain widespread attendance in the 1960s. The first industrial robot was installed at General Motors in 1961. Developed by Joe Engelberger and George Devol, UNIMATE obeyed step-by-step commands stored on a magnetic drum and with its 4,000 pound arm sequenced and stacked hot pieces of die-cast metal.

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Copyright Management and Control Systems: Metering

Metering systems allow copyright owners to ensure payment to or at the time of a consumer's use of the work. Those technologies include:

Hardware Devices

Those have to be acquired and installed by the user. For example under a debit card approach, the user purchases a debit card that is pre-loaded with a certain amount of value. After installation, the debit card is debited automatically as the user consumes copyrighted works.

Digital Certificates

Hereby a certification authority issues to a user an electronic file that identifies the user as the owner of a public key. Those digital certificates, besides information on the identity of the holder can also include rights associated with a particular person. Vendors can so control access system resources, including copyrighted files, by making them available only to users who can provide a digital certificate with specified rights (e.g. access, use, downloading).

Centralized Computing

Under this approach all of the executables remain at the server. Each time the executable is used, the user's computer must establish contact with the server, allowing the central computer to meter access.

Access Codes

Access code devices permit users to "unlock" protective mechanisms (e.g. date bombs or functional limitations) embedded in copyrighted works. Copyright owners can meter the usage of their works, either by unlocking the intellectual property for a one-time license fee or by requiring periodic procurement of access codes.

Copyright Clearinghouses

Under this approach copyright owners would commission "clearinghouses" with the ability to license the use of their works. A user would pay a license fee to obtain rights concerning the intellectual property.


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Think Tanks and Corporate Money

Looking at the financial situation of think tanks, different funding patterns can be found. While financial contributions from foundations play an important role especially for conservative think tanks, also contributions from governments are made to certain institutions. Yet one of the most important funding sources are corporate donors and individual contributors. Although the extent to which - in most cases conservative - think tanks rely on corporate funding varies, from the US$ 158 million spent by the top 20 conservative think tanks, more than half of it was contributed by corporations or businessmen.

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INTELSAT

INTELSAT is in business since 1964 and owns and operates a global communications satellite system of 17 geostationary satellites providing capacity for voice, video, corporate/private networks and Internet in more than 200 countries and territories.



http://www.intelsat.int/index.htm

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German Bundeswehr

The German contribution to the Western defence system, apart from playing host and contributing to the continued presence of allied troops on its soil, takes the form of its combined arm of defence known as the Federal Armed Forces (Bundeswehr). Constituting the largest contingent of NATO troops in Europe, the armed forces are divided into an army, navy, and air force. From its inception it was envisioned as a "citizens' " defence force, decisively under civilian control through the Bundestag, and its officers and soldiers trained to be mindful of the role of the military in a democracy. Conscription for males is universal, the military liability beginning at 18 and ending at 45 years of age.

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Europe Online

Established in 1998 and privately held, Europe Online created and operates the world's largest broadband "Internet via the Sky" network. The Europe Online "Internet via the Sky" service is available to subscribers in English, French, German, Dutch and Danish with more languages to come.

http://www.europeonline.com

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AT&T

AT&T Corporation provides voice, data and video communications services to large and small businesses, consumers and government entities. AT&T and its subsidiaries furnish domestic and international long distance, regional, local and wireless communications services, cable television and Internet communications services. AT&T also provides billing, directory and calling card services to support its communications business. AT&T's primary lines of business are business services, consumer services, broadband services and wireless services. In addition, AT&T's other lines of business include network management and professional services through AT&T Solutions and international operations and ventures. In June 2000, AT&T completed the acquisition of MediaOne Group. With the addition of MediaOne's 5 million cable subscribers, AT&T becomes the country's largest cable operator, with about 16 million customers on the systems it owns and operates, which pass nearly 28 million American homes. (source: Yahoo)

Slogan: "It's all within your reach"

Business indicators:

Sales 1999: $ 62.391 bn (+ 17,2 % from 1998)

Market capitalization: $ 104 bn

Employees: 107,800

Corporate website: http://www.att.com http://www.att.com/
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