Australian Productivity Commission finalises big data inquiry

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The outlook for big data and analytics is being tracked by the Australian Productivity Commission – with a new inquiry report due this November.

The Australian Productivity Commission is finalising a major inquiry into improving the availability and use of big data for public sector agencies.

Findings from this inquiry, due for release this November, examine ways to enhance individuals’ and businesses’ confidence and trust in the way data is collected, stored and used. This focus is on privacy and data security.

The commission is collating public and private sector submissions, and seeks to clarify the use of big data to tailor services, and engage more readily with constituents.

The amount of data being generated, collected and stored is growing exponentially, says a commission report. This data is generated from a multitude of transactions, production activities and communications.

This data flow encompasses ICT networks, including the internet, as well as the billions of sensors that capture activities in the physical world. Increasingly, the internet of things and mobile apps is driving the conversation.

“Data is increasingly integral to how economies function,” notes the commission. “Increases in computing power, data storage, data capture and matching technologies are increasing the scope for businesses, individuals and governments to make use of large databases.”

 

New perspectives

Analysing large volumes of data drives improvements and the development of products, processes, organisational methods and markets. “For example, big data analytics is enabling new perspectives to be gained on the human genome, with potential spin offs for health and medicine.”

Much of the data generated globally remains under-utilised. One estimate notes that around 22 per cent of data generated in the ‘digital universe’ is potentially useful for analysis. But less than 5 per cent of this data has actually been analysed.

 “For governments, the pace of change strengthens the need for monitoring, reviewing and adapting policy settings to ensure they do not unnecessarily or inadvertently constrain the capacity of businesses — and public sector service providers — to be innovative in their use of data.”

Governments must be mindful about the legitimate privacy concerns of individuals, and how the ‘digital universe’ enables detailed profiles to be built and used.

However, efficient data management requires more than just setting privacy standards. Planners need to be responsive and flexible about the way public and private sector data is managed.

“One hardy perennial is the suggestion that governments should substantially improve their own service provision by using data to strengthen the evidence base for their policies and to improve regulatory implementation and enforcement.”

Streamlining data management enables governments, businesses and innovators to reshape markets and alter previously-accepted paradigms of disadvantage and societal need.

The commission’s report to government analyses the costs, benefits and risks of increasing access to data. It also examines ways to increase data availability and use.

This latest inquiry draws on recent studies and reviews, including last year’s ‘Public Sector Data Management Project’ from the Department of Prime Minister and Cabinet.

The review takes into account recent policy announcements to improve availability and use of public sector data. This incorporates the Commonwealth’s ‘Innovation Statement and ‘Public Data Policy Statement.’

Overseas experiences are examined, together with a closer look at jurisdictions, including New Zealand’s integrated data infrastructure, and the Midata program in the UK.

“Where possible, the commission will also draw on learnings from overseas debates, such as issues around individuals’ access to, control over and retention of data about them, as well as issues experienced with and lessons learned from data security, data breaches and data sharing.”

Additionally, the commission will benchmark Australia’s data protection laws, privacy principles and protocols against leading overseas jurisdictions.