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India must embrace Data Democracy - Nandan Nilekani, 2017


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India needs a strategic view on Data. This presentations outlines the triple threat represented by Data Domination : Privacy, Data Colonization and winner-take-all. It also explains why India has a unique opportunity to leapfrog the rest of the world and establish a Data Democracy

India must embrace Data Democracy - Nandan Nilekani, 2017

  1. 1. Nandan Nilekani, 2017 India must embrace Data Democracy
  2. 2. Half the world now uses Smartphones Out of 5.5 Bn people above age 14 2.5 Bn have smartphones Nandan Nilekani, 2017 2Source : Ben Evans, 2016
  3. 3. Newer devices are on the way 1960 40:1 1990 4:1 2005 1:1 2020 1 Person 4 Devices Nandan Nilekani, 2017 3
  4. 4. IoT will bring 50 Billion devices online ARM sold 15 billion chips in 2015, expected to sell 1 trillion chips/year in 2035. Source : ARM Press release, 2016 Nandan Nilekani, 2017 4
  5. 5. Everyone and everything will be connected Source : Foundation IoT report, 2017 Nandan Nilekani, 2017 5 Generating massive amounts of data
  6. 6. Platforms chase Data over profit Nandan Nilekani, 2017 6 Mobile OS Social N/W Health e-Commerce Platforms enable products that solve problems, but also capture and claim ownership of data produced by user interaction. The world’s largest businesses are building platforms
  7. 7. Because controlling data creates more of it • The virtuous cycle of data feeds itself, growing bigger like an avalanche • With no reason to do otherwise, it encourages capturing more data • A winner-takes-all model emerges MoreData createsbetter products Better products attract more users MoreUserscreate moredata Nandan Nilekani, 2017 7
  8. 8. Source : Mary Meeker, Internet Trends, 2017 Nandan Nilekani, 2017 8 Data Controllers tend to outgrow competition China Mobile Payment Market Share - Q1:17 In 2016, AliPAy & WeChat dominated 93% of total mobile payments a $5.5 Tn market US Digital Ad Spend Market Share - 2015-16 In 2016, Google & FB dominated 71% of total digital ad spend & 89% of total growth $59.5 Bn $72.5 Bn
  9. 9. Source : The Hollywood Reporter, FT Nandan Nilekani, 2017 9Nandan Nilekani, 2017 9 Data + AI disrupt adjacencies with great speed 2013 2016 Reached $90B in ten months Became world’s largest, reaching a total amount of $165 billion in 4 years Netflix started creating its own content Netflix's first self-commissioned original content series House of Cards was released in 2013 Yu’e Bao, “leftover treasure”, an app-based money market fund started in 2013. Netflix released an estimated 126 original series or films in 2016, more than any other single American network or cable channel 93 emmys, 2nd only to HBO’s 110
  10. 10. Data is a new kind of resource Social Commerce Location Search Data Producers Self-Driving Cars White label retail Content & Media Bots Data Consumers Nandan Nilekani, 2017 10 Data is an unlimited non-rivalrous resource Yet, it isn’t shared freely are becoming Bundling Data into Silos
  11. 11. “ Platforms that accumulate user data rapidly disrupt industries, outgrow competition, & create silos. This is Data Domination Nandan Nilekani, 2017 11
  12. 12. The world is just waking up to the problem Can the Tech Giants Be Stopped? THE WALL STREET JOURNAL US UK EU CH JP Japan considers tough anti-monopoly rules on data FT, Jul 16, 2017 EU gives companies two years of comply with sweeping new privacy laws PCWorld, April 14, 2016 China cyber-security law will keep citizen’s data within the Great firewall By John Leyden, June 1, 2017 The U.S. Needs To Step Up To Fight Abuse of International Antitrust James, Rill, June 28, 2017 The UK’s largest nine banks have been given a year to develop & adopt an Open Banking API interface for customer data Finextra, Feb 2, 2017 Nandan Nilekani, 2017 12
  13. 13. Jan Dhan Bank Account 290 Mn Enrolments in 6.75 yrs since launch 1.16 Bn Jan Dhan Aadhaar 350 Mn Smartphones Mobile 1060 Mn Phone Numbers Meanwhile Indians are rapidly adopting digital ... Mobile Every second, 3 more Indians experience the internet for the first time 77% of urban, 92% of rural use the mobile phone as their primary device to connect to the internet Nandan Nilekani, 2017 13Source : UIDAI, NPCI, TRAI Website, Conversations with NPCI, eMudhra, Deity officials
  14. 14. … and choosing it as their preferred mode of transacting e-Sign in 24 months >21 Mn Digilocker users, 2 years 4.8 Mn 340 Mn >800 MnUPI Transactions in June alone! 10M+ 500 Mn 6.9 Mn Uploaded docs 1+ Bn Issued Docs eKYC in 3 years 75 Mn unique ids Authentications/month > 500M unique ids so far APB Accounts Linked 2.0 B Transactions worth 9.2 B USD in 3 years Nandan Nilekani, 2017 14Source : UIDAI, NPCI, TRAI Website, Conversations with NPCI, eMudhra, Deity officials
  15. 15. India will go from data poor to data rich in 3 years Digital Identity Paperless Process Commerce Payment Social Machine Learning & Algorithms We need to think about how this data wealth will translate to real wealth for users Nandan Nilekani, 2017 15
  16. 16. We’re running out of Time Nandan Nilekani, 2017 16 If unchecked, the problem of Data Domination will repeat in India in 3 years
  17. 17. India needs a strategic position on Data We must Invert the Data Data Domination represents multiple risks Nandan Nilekani, 2017 17 It is not just a technology challenge, It is ALSO a policy one.
  18. 18. ?Invert the Data Nandan Nilekani, 2017 18 What is WHAT, WHY, WHO, HOW
  19. 19. Invert usage of data Data is used to sell things to the user Data to be used to empower the user Nandan Nilekani, 2017 19
  20. 20. UPI GSTN BBPS Search Flow-Based Credit Skilling & Recruitment Content & Media Bots Invert ownership of data Data Producers Data Consumers Nandan Nilekani, 2017 20
  21. 21. Companies, both foreign and domestic, are still free to collect and operate on data as long as they follow the laws of the land Inversion is not protectionism Nandan Nilekani, 2017 21
  22. 22. Inversion is not protectionism Inversion is only about empowering the user with Choice & Freedom Choice of multiple providers Freedom to share their data Nandan Nilekani, 2017 22
  23. 23. ?Invert the Data Nandan Nilekani, 2017 23 Why WHAT, WHY, WHO, HOW
  24. 24. 29 Nov 1995 Since we don't trust anyone with it, put the users in control of their own data! Nandan Nilekani, 2017 24Source : Calvin and Hobbes, Bill Watterson, 1995
  25. 25. If user is the rightful owner of data, data is not locked in silos Inversion means Data + AI is used to extract value for user Inverting the data prevents Colonization 0 1 0 1 0 0 0 1 1 1 0 1 0 0 0 0 1 1 1 1 0 0 0 0 0 0 1 0 1 0 0 0 1 0 1 0 1 0 0 0 0 1 1 1 1 0 0 0 Nandan Nilekani, 2017 25
  26. 26. Inverting the data defends privacy Currently, only user choice is either ‘take it’ or ‘leave it’ Inversion lets the user negotiate her own terms with service providers through consent Privacy Data based on Consent Services Value added based on data The privacy tradeoff : Companies provide services for free in exchange for your data. Nandan Nilekani, 2017 26
  27. 27. Inverting the data enables competition and innovation Sharing of data between services even if owned by same company should happen by consent. Inversion creates unbundling, real user choice & negates winner-take-all Nandan Nilekani, 2017 27
  28. 28. ? Nandan Nilekani, 2017 28 WHAT, WHY, WHO, HOW Invert the Data Who benefits if we
  29. 29. Indians will be data rich before being economically rich In India, Ads will not subsidise products Business models cannot be copy-pasted from US to India India needs to rethink data companies for the Indian context We’ve done it for Aadhaar, for payments, time to do it for data in India Nandan Nilekani, 2017 29Source :, This Year Next Year, GroupM
  30. 30. 30 Devi the farmer can use data to navigate the 7 stages of farming She creates a 360° profile of her farm through personal & public data Increasing trust and decreasing friction in her interactions with banks, insurers, input vendors, market buyers, etc. Data is the new Soil
  31. 31. Lack of credit is due to lack of Data Nandan Nilekani, 2017 31 Bottleneck of lending is trust Knowledge asymmetry creates usurious money lenders Data measures capacity and intent to pay back a loan Ramesh (Mechanic) Earns Rs 20,000 p.m. Mohan (Shopkeeper) Earns Rs 20,000 p.m. 0 1 0 10 0 0 1 1 1 0 1 0 0 0 0 1 1 1 1 0 0 0 0 1 00 0 01 1 1 10 0 0
  32. 32. Creates virtuous cycle of credit to small businesses ... Digital Footprints Consented Data Sharing Business Micro-Credit Business Growth GST Filing BBPS Statement If data is inverted, Mohan can demand ● His GST returns & ● His Bill Payments on BBPS be shared with NBFC Thus, creating a richer digital footprint, and securing a loan. Nandan Nilekani, 2017 32
  33. 33. … and virtuous Cycle of skills for people Training, Apprenticeship & Certification Trusted Credentials Employment Credible History Differentiated Earnings Guru-Shishya Parampara Ecosystem of institutes/agencies Aadhaar, Digital Locker for portability and trust Market places like LinkedIn, Babajobs, etc. Nandan Nilekani, 2017 33
  34. 34. Data is used to eliminate knowledge asymmetry at scale Skills Trust & Formalization Health Cannot work if data is in silos. Data with ML/AI will be used to reduce information asymmetry & provide benefits Jobs Education Nandan Nilekani, 2017 34
  35. 35. ? Nandan Nilekani, 2017 35 WHAT, WHY, WHO, HOW Invert the Data How to
  36. 36. India has unique digital infrastructure... A set of serendipitously developed open APIs, built as public good 2 31 54 6 eSign Digi- Locker UPI BHIM GSTNAadhaar Auth FastTag ETC 7 Bharat Bill Pay (BBPS) 2 eKYC India Stack for consumers National Platforms for Businesses Nandan Nilekani, 2017 36
  37. 37. … and a robust authentication infrastructure AADHAAR (Biometric) MOBILE (OTP) BANK (UPI PIN) DL PAN ... PCs Smartphone Cards PoS ... Employee ID Access Channels Domain Identity Foundational Identity Nandan Nilekani, 2017 37
  38. 38. India is uniquely positioned to implement inversion Data Consumers Data consumers must seek consent from user before sharing data Consent Collection, Storage and Audit can be managed efficiently over Open APIs Introducing the Data Empowerment & Protection Architecture 1. Consent Flow Digitally signed consent artifact 2. Data Flow Secure data sharing based on consent Nandan Nilekani, 2017 38
  39. 39. “ Data is empowering when it is in the hands of the people. We must invert the data, thus ensuring freedom and choice. This is Data Democracy Nandan Nilekani, 2017 39
  40. 40. Managing the economy with Data 8 million businesses uploading line item level GSTN data can track GDP consumption / inflation in real-time. ETC/ e-way bills data of every truck crossing every toll booth can help understand supply chains NPCI has Payments Data of transactions done digitally can tell us about real time shift to cashless Real-time Macroeconomics Implement incremental policy changes, and track immediate effect Targeted policy interventions Nandan Nilekani, 2017 40
  41. 41. A no-cost, immediate and viable solution for the triple threat of Data Domination! 3 Simple Steps to a Data Democracy Government Regulated Markets Private Enterprises 01. Legal Right of public over public data Govt to unlock public data such as Income Tax, GSTN, Drivers License etc 02. Require standard protocols and formats for release of Bank statements, Loans, Mutual Funds, Stocks, Investments, Insurance 03. Liberate private data via policy Digital footprints, Health data - medical records, labs, etc. Business data- Transactions, Nandan Nilekani, 2017 41
  42. 42. India can leapfrog History has shown time and again, that the best way to check power is to distribute, not accumulate it. India can only solve its hard problems by empowering its users with their data. Nandan Nilekani, 2017 42
  43. 43. Thank You