Hardly a firm today can afford not to engage in electronic commerce if it does not want to be swept out of business by competitors. "Information is everything" has become something like the Lord's prayer of the New Economy. But how do you get information about your customer online? Who are the people who visit a website, where do they come from, what are they looking for? How much money do they have, what might they want to buy? These are key questions for a company doing electronic business. Obviously not all of this information can be obtained by monitoring the online behaviour of web users, but there are always little gimmicks that, when combined with common tracking technologies, can help to get more detailed information about a potential customer. These are usually online registration forms, either required for entry to a site, or competitions, sometimes a combination of the two. Obviously, if you want to win that weekend trip to New York, you want to provide your contact details.
The most common way of obtaining information about a user online is a
But cookies record enough information to fine-tune advertising strategies according to a user's preferences and interests, e.g. by displaying certain commercial banners rather than others. For example, if a user is found to respond to a banner of a particular kind, he / she may find two of them at the next visit. Customizing the offers on a website to the particular user is part of one-to-one marketing, a type of
One-to-one marketing can create very different realities that undermine traditional concepts of demand and supply. The ideal is a "frictionless market", where the differential between demand and supply is progressively eliminated. If a market is considered a structure within which demand / supply differentials are negotiated, this amounts to the abolition of the established notion of the nature of a market. Demand and supply converge, desire and it fulfilment coincide. In the end, there is profit without labour. However, such a structure is a hermetic structure of unfreedom.
It can only function when payment is substituted by credit, and the exploitation of work power by the exploitation of data. In fact, in modern economies there is great pressure to increase spending on credit. Using credit cards and taking up loans generates a lot of data around a person's economic behaviour, while at the same restricting the scope of social activity and increasing dependence. On the global level, the consequences of credit spirals can be observed in many of the developing countries that have had to abandon most of their political autonomy. As the data body economy advances, this is also the fate of people in western societies when they are structurally driven into credit spending. It shows that data bodies are not politically neutral.
The interrelation between data, profit and unfreedom is frequently overlooked by citizens and customers. Any company in a modern economy will apply data collecting strategies for profit, with dependence and unfreedom as a "secondary effect". The hunger for data has made IT companies eager to profit from e-business rather resourceful. "Getting to know the customer" - this is a catchphrase that is heard frequently, and which suggests that there are no limits to what a company may want to about a customer. In large online shops, such as
But there are more advanced and effective ways of identification. The German company
Bu there are much less friendly ways of extracting data from a user and feeding the data body. Less friendly means: these methods monitor users in situations where the latter are likely not to want to be monitored. Monitoring therefore takes place in a concealed manner. One of these monitoring methods are so-called
Bugs monitoring users have also been packaged in seemingly harmless toys made available on the Internet. For example,
The cursor image technology relies on what is called a GUID (global unique identifier). This is an identification number which is assigned to a customer at the time of registration, or when downloading a product. Many among the online community were alarmed when in 1999 it was discovered that
However, in the meantime, another possible infringement on user anonymity by Microsoft was discovered, when it as found out that MS Office documents, such as Word, Excel or Powerpoint, contain a bug that is capable of tracking the documents as they are sent through the net. The bug sends information about the user who opens the document back to the originating server. A document that contains the bug can be tracked across the globe, through thousands of stopovers. In detailed description of the bug and how it works can be found at the
Of course there are many other ways of collecting users' data and creating appropriating data bodies which can then be used for economic purposes. Indeed, as Bill Gates commented, "information is the lifeblood of business". The electronic information networks are becoming the new frontier of capitalism.
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In the phrase "the rise of the citizen as a consumer", to be found on the
When the citizen becomes a consumer, the state must become a business. In the data body business, the key word behind this new identity of government is "outsourcing". Functions, that are not considered core functions of government activity are put into the hands of private contractors.
There have long been instances where privately owned data companies, e.g. credit card companies, are allowed access to public records, e.g. public registries or electoral rolls. For example, in a normal credit card transaction, credit card companies have had access to public records in order to verify identity of a customer. For example, in the UK citizen's personal data stored on the Electoral Roll have been used for commercial purposes for a long time. The new British Data Protection Act now allows people to "opt out" of this kind of commercialisation - a legislation that has prompted protests on the part of the data industry:
While this may serve as an example of an increased public awareness of privacy issues, the trend towards outsourcing seems to lead to a complete breakdown of the barriers between commercial and public use of personal data. This trend can be summarised by the term "outsourcing" of government functions.
Governments increasingly outsource work that is not considered core function of government, e.g. cooking meals in hospitals or mowing lawns in public parks. Such peripheral activities marked a first step of outsourcing. In a further step, governmental functions were divided between executive and judgemental functions, and executive functions increasingly entrusted to private agencies. For these agencies to be able to carry out the work assigned to them, the need data. Data that one was stored in public places, and whose handling was therefore subject to democratic accountability. Outsourcing has produced gains in efficiency, and a decrease of accountability. Outsourced data are less secure, what use they are put to is difficult to control.
The world's largest data corporation,
Technically the linking of different systems is already possible. It would also create more efficiency, which means generate more income. The question, then, whether democracy concerns will prevent it from happening is one that is capable of creating
But what the EDS example shows is something that applies everywhere, and that is that the data industry is whether by intention or whether by default, a project with profound political implications. The current that drives the global economy deeper and deeper into becoming a global data body economy may be too strong to be stopped by conventional means.
However, the convergence of political and economic data bodies also has technological roots. The problem is that politically motivated surveillance and economically motivated data collection are located in the same area of information and communication technologies. For example, monitoring internet use requires more or less the same technical equipment whether done for political or economic purposes. Data mining and data warehousing techniques are almost the same. Creating transparency of citizens and customers is therefore a common objective of intelligence services and the data body industry. Given that data are exchanged in electronic networks, a compatibility among the various systems is essential. This is another factor that encourages "leaks" between state-run intelligence networks and the private data body business. And finally, given the secretive nature of state intelligence and commercial data capturing , there is little transparency. Both structures occupy an opaque zone.
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Also called microcircuit, the integrated circuit is an assembly of electronic components, fabricated as a single unit, in which active semiconductor devices (