The business value of privacy-preserving technologies: the case of multiparty computation in the telecom industry
| DOI | https://doi.org/10.1108/DPRG-10-2021-0132 |
| Published date | 14 October 2022 |
| Date | 14 October 2022 |
| Pages | 541-557 |
| Subject Matter | Information & knowledge management,Information management & governance,Information policy |
| Author | Hosea Ofe,Harm Minnema,Mark de Reuver |
The business value of privacy-preserving
technologies: the case of multiparty
computation in the telecom industry
Hosea Ofe, Harm Minnema and Mark de Reuver
Abstract
Purpose –This paper aims to propose a framework for how privacy-preserving technologies (PETs)
create business value for organizations. The framework was developed by examining the literature on
privacy and information technology’s impact (symbolic and function). The authors evaluate the
framework’s applicability using multiparty computation (MPC) as an instance of PETs, with expert
interviewsin the telecommunication industry.
Design/methodology/approach –In an illustrative case of four telecommunication companies, the
authorsconducted semi-structured interviewswith experts and used MPC as an instance of PET.
Findings –The evaluation of theframework indicates that PETs create business valuefor organizations:
enhancing customer interactions, sales, personalized services, predicting market trends and
collaboration among organizations. The findings show that business value of PETs is mainly driven by
consumersand organizations willing to share dataand collaborate.
Research limitations/implications –This study was limitedto the telecom sector and focused on MPC
as an instance of PET. Further studies should be conducted to explore the benefits of other PETs and
MPC. Future researchcould find out if this framework is also helpful for implementing other PETs or even
other typesof technology. The authors’ framework providesfactors that future studies can use to quantify
the impact of PETs. The authors hope that this framework provides an overarching reference for
organizationsconsidering the adoption of PETs.
Practical implications –The authors’ findingsinform managers in exploring the businessvalue of PETs
for organizations. This study also provides insights into which costs and risks to consider when
implementingPETs.
Originality/value –This study is one of the few to propose a framework on how PETscreate business
value for organizations. Future research can use factors in the framework (e.g. customer interactions,
sales, personalized services and market trend prediction) to conduct a quantitative study on PETs’
business value. Managers adopting PETs can use the framework to identify areas where PETs impact
their organization.
Keywords Privacy, Business value, Symbolic value, Functional value, Cost, Trust, Risk,
Privacy-enhancing technologies, Multiparty computation
Paper type Research paper
1. Introduction
Controlling sensitive information about oneself is of societal and scholarly importance.
Privacy has long been a research focus (Acquisti et al., 2013;Acquisti et al.,2016;Posner,
1977;Smith et al., 2011;Zo
¨ll et al., 2021). A renewed interest in privacy is gaining traction
as more data collection techniques become widespread and less observable to users. For
instance, consumer preferences are tracked using cookies embedded in browsers. New
business models are emerging that rely on monetizing personal data collected across
platforms (Zuboff, 2015;van der Vlistand Helmond, 2021;Acquisti et al.,2016).
Hosea Ofe, Harm Minnema,
Mark de Reuver are all
based at Department of
Engineering, Systems and
Services, Faculty of
Technology, Policy and
Management Delft
University of Technology
Delft, The Netherlands.
Received 18 October 2021
Revised 14 July 2022
Accepted 1 September 2022
The research leading to these
results was supported by the
European Union’s Horizon 2020
Research and Innovation
Programme, under Grant
Agreement no 825225–Safe
Data-Enabled Economic
Development (Safe-DEED).
The work was also supported
by the European Union’s
Horizon 2020 Research and
Innovation Programme, under
Grant Agreement no
871481–Trusted Secure Data
Sharing Space (TRUSTS).
DOI 10.1108/DPRG-10-2021-0132 VOL. 24 NO. 6 2022, pp. 541-557, ©Emerald Publishing Limited, ISSN 2398-5038 jDIGITAL POLICY, REGULATION AND GOVERNANCE jPAGE 541
The emergence of pervasive techniques for data collection has fueled the interest in
privacy-preserving technologies (PETs). PETs are a broad range of technologies with
capabilities that can, for instance, anonymize, conceal, compute and encrypt sensitive
information (Smith et al., 2011). PETs are potentially valuable to attain compliance with
data privacy regulations and adopt privacy-sensitive business models (Li and Sarkar,
2014;Borking, 2011;Zo
¨ll et al., 2021). In addition, PETs could be valuable to address
increasing privacy concerns such as identity theft and misuse of sensitive data when
shared (Acquisti et al., 2016). The focus on privacy may pressure organizations to
consider adopting PETs. At the same time, the extent to which PETs are adopted and
effectively used depends, more importantly, on their business value for organizations. For
example, a study by Borking (2011) revealed that PETs’ adoption is problematic as they
are of relatively limited use without a concrete business case. Also, while there is an
increase in PETs’ development and capabilities, most initiatives are found to stall at the
pilot or experimentation phase without widespread commercial use (Goldberg, 2003;
Danezis and Gu
¨rses, 2010).
Despite PETs’ potential relevance, a concerted effort to examine PETs’ business value
and business cases for organizations remains lacking (Borking, 201 1). Most studies
highlight the potential benefits or harmful effects of privacy for consumers, e.g. in
marketing (Wang et al.,1998), protection of personal data in online transactions
(Malhotra et al.,2004;Van Dyke et al.,2007;Paine et al.,2007;Fogel and Nehmad,
2009) or sharing of individual location-based dat a (Chen et al.,2008). These studies
primarily seek to explain the motivation of PETs’ adoption through socially inclined
factors such as legal requirements and benefits of pr ivacy preservation from consumers’
perspectives. However, a holistic understanding o f PETs’ business value remains
lacking.
Investing in PETs can be highly complex and challenging when relatively limited research
and guidance on its potential business value exists for organizations. Fragmented and
partial insights are found across differentresearch streams. For example, economic studies
point to potential legal and implementation costs for organizations in PETs’ adoption
(Borking, 2011;Muris, 2004;Rossnagel, 2010). Technical research points to issues of
alignment and interoperability of PETs (Goldberg, 2007;Borking, 2011). Furthermore, the
concealment of relevant information by PETs is also argued to hinder the efficient allocation
of assets and the usefulness of PETs (Acquisti, 2014;Muris, 2004). PETs can reduce data
accuracy during processing (Zo
¨ll et al.,2021). However, whether privacy initiatives offer
clear business value has scarcelybeen addressed.
This paper proposes a framewor k for understanding PETs’ bu siness value. In particular,
the overarching research questi on is: How can we understand the busin ess value of
privacy-enhancing technolog ies? We do so by examining business literatu re on the
impact of privacy and information techn ology on organizational performance. We conduct
an illustrative case study using mu ltiparty computation (MPC) as a sp ecific instance of
PETs within the telecommunicati on industry to evaluate the frame work’s applicability.
MPC allows businesses to comput e functions without revealing th e underlying data
(Ghanem and Moursy, 2019). MPC is one of the most prominent emerging types of PETs
(Evans et al.,2017), with capabilit ies of anonymizing, computing and concealing sensitive
data.
This paper makes three contributions. First, we provide a framework for understanding how
PETs create business value. Second, by applying the framework to a case, we uncover
specific instances of how PETs create business value, risks and costs for organizations.
Third, we provide recommendations for organizations on how to complement the utilization
of PETs to enhance business value. Furthermore, we show how MPC as a specific instance
of PET fosters data sharing.
PAGE 542 jDIGITAL POLICY, REGULATION AND GOVERNANCE jVOL. 24 NO. 6 2022
To continue reading
Request your trial