The example of that retail boutique provides a glimpse into how easy it is for a company to derive and use the personally identifiable information (PII) of customers in everyday transactions. Firms that deploy analytics will need to determine how derived data might fit into the goals, culture, and standards of their organization. Indeed, there’s a fine balance that must be struck by companies wanting to utilize advanced analytics in their organizations (Figure 7.2).

Of course, the urge to innovate will always push boundaries. Firms need to determine how to develop projects that work within their comfort zones with respect to privacy and confidentiality issues. Often, such concerns can be mitigated through algorithmic transparency, open standards, simplified permission and privacy statements, and the implementation of policies that support security and customer privacy. In the future, governments may become increasingly involved in these areas....