Innovation Insights is a monthly series on research world looking at all thing’s technological innovation. The series is based on several recent surveys with Arm (semi-conductor company valued at £23.4 billion) and will cover topics such as:
- Security – will security concerns stifle technological and product innovation or simply lead to more secure products?
- Insight driven innovation – what processes can be used to turn insight into innovation and how can insights into the way youths interact with technology be used to prototype software that assists and empowers them to tackle cyberbullying?
Security concerns more important than ever
The struggle between computer hackers and security experts is constant. As technology becomes increasingly ingrained in our everyday lives, our device’s security becomes ever more important.
Technological security issues are visible even now amidst the current global pandemic. Technology firms are developing contact tracing apps to aid government’s fight against COVID-19. These apps will use Bluetooth (or GPS in some countries) to alert people if they’ve been in close contact with someone who has tested positive for COVID-19 or is displaying symptoms. These apps have raised security concerns, especially in countries unfamiliar with such draconian measures. People are concerned the tracking efforts by governments will continue after the pandemic or that the data could be hacked to reveal the identities of positive cases.
Moreover, as working from home becomes commonplace, video conference platform’s security has been questioned. Many large companies and governments have banned the use of Zoom after a high profile breach. Over 500,000 Zoom accounts were hacked and placed on the dark web containing ‘victims’ email addresses, passwords, personal meeting URLs and their HostKeys’.
The security of technological devices and services is important. However, it’s also important to consider consumer’s perspective:
- Are consumers concerned about security?
- Do they think companies are sufficiently protecting them from hackers?
Therefore, this article, explores:
- Consumer’s privacy concerns with technology
- How these concerns impact innovation
Device security a concern for consumers
71% of people[i] are somewhat or extremely concerned that the more technology they have, the more exposed they are to privacy breaches. Additionally, 20% of people[ii] believe that the biggest drawback of a future in which Artificial Intelligence (AI) significantly impacts human life is that more data will be shared and potentially stolen. This is seen to be a bigger drawback vs. giving some control to AI machines and AI becoming independent and sentient.
However, does that concern translate when considering technological purchases? 50% people[iii] say that personal data privacy and security is a major consideration when purchasing smart technology or AI powered devices. 39% say it’s a small consideration. Moreover, this is increasing. 52% of people state that personal data privacy factors into their purchasing decisions more now than in 2018.
It’s difficult to identify a secure device
Consumers are looking for secure products. But how easy is it to tell what’s secure and what isn’t? Only 20% of people would be extremely confident in knowing what to look for when shopping for a secure smart device. Moreover, 33% wouldn’t pay more for a device that was proven to be completely secure, believing this should be standard.
There’s clearly a demand for secure smart devices, but how do consumers perceive the success of companies in protecting them? Only 24% of people state that they think companies are doing enough to ensure their devices are keeping personal data secure. Most people believe companies have slight or significant room for improvement in this area.
In summary,
- Consumers are concerned about security
- Security is factoring into purchase decisions and will do so more in the future
- Secure devices are difficult to identify, and some are willing to pay a premium for them
- Companies aren’t perceived to be doing enough to protect consumers
A dangerous mix for data heavy innovations
If personal data collection increases such that security can’t keep up with it, companies risk facing a consumer backlash if data security is breached. Companies must also clarify how their innovations are secure and what they’re doing to protect consumer data.
Many new innovations, such as contact tracing apps, rely on more data being collected from consumers. That data contributes to the service, often leading to more personalised experiences for the consumer, such as Netflix recommendations. Data is being used as currency and if people don’t think their data is secure, they won’t provide it. Data security rarely gets consumers excited about a product. However, it has become a hygiene factor that must be considered by technological innovators.
The next instalment in the Innovation Insights series explores current smart technology device ownership and which devices will grow fastest. Moreover, we’ll reveal which smart technology appeals most to consumers, and therefore will guide future innovation.
[i] From a global sample of 750 people across 6 regions
[ii] From a global sample of 3,800 people across 8 regions
[iii] All following %s from the same global sample of 750 people across 6 regions
