This week on NVTC’s blog, Kathy Stershic of member company Dialog Communications shares her final thoughts of her Brand Reputation in the Era of Data series.


Over the past few weeks, I’ve outlined 8 Principles that will help marketers protect and strengthen their brands in an era of radical change, where there is great temptation (and quite likely management pressure) to push boundaries further than ever before. Throughout this time and many preceding months, I’ve had countless conversations with people about the state of their data as well as the modern conveniences upon which they’ve come to rely. I’ve heard a Big Data expert actively advocating for stretching the law (or hinting at crossing the line) for the sake of competitive advantage. I’m sure he is not alone in that opinion. We are, all of us, currently in the Wild West.

While technology is accelerating what’s possible, the ideas outlined in the 8 Principles come back to common fundamental and timeless human needs that will outlast every wave of technology: People protecting what’s theirs, seeking respect and dignity, wanting control of their lives, enjoying freedom and avoiding harm. The brands they will choose for anything more than a one-time experience will be those who understand those concerns, and actively work to enable them.

There is more to brand reputation than being the app of the moment. Not every new thing will be transformational. But businesses who innovate as well as who truly respect their customers and actively work to earn trust stand a far greater chance of longevity than those who rely on buzz about the shiny new object, or who exploit to maximum advantage thinking the ‘sheeple’ won’t notice. It will take work. It will take awareness. It will take intention. It will take courage. And it will take leadership.

Eventually today’s Wild West will give way to a more mature market dynamic. Embracing these 8 Principles may help ensure your company is there when that time comes – or even leading the way.

Brand Reputation in the Era of Data – Principle 1: Empower Customer Control
Brand Reputation in the Era of Data – Principle 2: Be Clear and Accountable
Brand Reputation in the Era of Data – Principle 3: Do Everything You Can to Protect Customer Data
Brand Reputation in the Era of Data – Principle 4: Mind Your Partners!
Brand Reputation in the Era of Data – Principle 5: Practice Customer Empathy
Brand Reputation in the Era of Data – Principle 6: Comply with All Applicable Laws and Regulations. Then Exceed Them.
Brand Reputation in the Era of Data – Principle 7: Apply Technology Thoughtfully
Brand Reputation in the Era of Data – Principle 8: Actively Demonstrate Respect for Your Customers

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This week on NVTC’s Blog, Host in Ireland’s President and Founder Garry Connolly discusses Safe Harbor, a policy agreement that regulated the way that U.S. companies export and handle the personal data of European citizens.


 In Nov. 2000, the United States Department of Commerce and the European Union established Safe Harbour, a policy agreement established between that regulated the way that U.S. companies export and handle the personal data of European citizens. This enabled American technology companies to compile data generated by their European clients in web searches, social media posts and other activities online.

In 2015, a major issue with the agreement is the collection of personal data that people create when they post something on Facebook or other social media, when they conduct searches on Google, or when they order products or buy movies from Amazon or Apple. Such data is invaluable to companies, which use the information for a broad range of commercial purposes, including tailoring advertisements to individuals and promoting products or services based on users’ online activities.

Safe Harbour, regarding data transfer, does not apply solely to tech companies or online retail, however. It also affects any organization with international operations, such as when a company has employees in more than one country and needs to transfer payroll information, or allow workers to manage their employee health benefits online.

So how did we get from data concerning your preference for wool socks over cotton or your interest in purchasing season four of “Game of Thrones” to controversial issues concerning Europeans’ privacy rights and U.S. national security interests?

As Helen Dixon, Ireland’s Data Protection Commissioner, pointed out in a statement issued by her Office, the issues dealt with in the decision by the Court of Justice of the European Union (ECJ) to invalidate the “Safe Harbour” system, under which companies transfer customer data from Europe to the United States, are “complex.” She elaborated, saying that the issues “will require careful consideration” and “what is immediately clear is that the Court has reiterated the fundamental importance attaching to the right of individuals to the protection of their personal data. That is very much to be welcomed.”

The ruling by the ECJ found that the Safe Harbour agreement is flawed because it allowed American government authorities to gain access to Europeans’ online information. The court said leaks from Edward J. Snowden, the former contractor for the National Security Agency (NSA), made it clear that American intelligence agencies had access to the data, infringing on Europeans’ rights to privacy.

The issue came to head when Max Schrems, a 27-year-old graduate student living in Austria, argued that Europeans’ online data was misused by Facebook because it cooperated with the NSA’s Prism program. Prism, in part, involved the U.S. Federal government’s collection of information on Europeans, gathered from the world’s largest Internet companies, in search of national security threats. An interesting side note is that Schrems originally filed his complaint with the Irish Data Protection Commissioner, since it is the privacy regulator for Facebook outside the U.S. because the Company’s European headquarters are located in Dublin. He eventually took his case to the Irish High Court, which referred it to the ECJ in July of last year. Following the ECJ judgment, the Irish court is expected to rule that the Irish Data Protection Commissioner must investigate his complaint properly and decide whether to suspend such data transfers.

As many large American tech companies have set up their overseas headquarters in Ireland, the Irish government has been supportive of Safe Harbour. However, Helen Dixon has begun discussions with her data protection counterparts in other European Union member countries to best determine how the ECJ’s judgment can be “implemented in practice, quickly and effectively” as it impacts European to U.S. data transfers, Host in Ireland is confident that procedures can be established that continue to support the thriving digital economy, respects individuals’ right to privacy, and ensures the safety and protection of our global community, both home and abroad.


 Interested in learning more about data protection? Join NVTC, Host in Ireland, and Helen Dixon for an event on April 7, 2016 at the National Conference Center. Please email marketing@hostinireland.com for details.

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This week on NVTC’s blog, Kathy Stershic of member company Dialog Communications continues her Brand Reputation in the Era of Data series by sharing principle eight: actively demonstrating respect for your customers.


The final of these 8 Principles clarifies a concept implied across the other seven. To become and remain a successful brand, businesses must actively demonstrate customer respect. Just saying ‘We respect our customers!’ is not enough. Prove it.

This can take many forms, from being transparent and honest about data collection and sharing practices to moderating your outreach below the annoyance level to integrating this attitude into your culture and policies – and many other opportunities mentioned through these posts.

Disrespectful practices were often brought up in the comments I’ve gotten. One respondent noted that “I want to feel like a vendor respects my data as much as I do.” People do not like bait-and-switch, confusing changes to privacy policies or anything that feels sneaky. They don’t like the burden of responsibility to stop something, like too much email or too many pop-ups. When everyone is tired or busy from their own lives, wearing people down or hoping they won’t notice might produce a short term win, but not long-term loyalty.

Having a straightforward dialog with your customers – even the ones who are unhappy with you – is another way to show respect. Everyone messes up – own it! Apologize, make it right and move on. If it wasn’t your fault, but there’s a small cost to making someone feel respected anyway – do it! Nordstrom figured this out a long time ago.

Nothing about customers wanting to feel respected and treated fairly is new. What is new is the exponential increase in vendor relationships enabled through technology. With the tremendous choice the modern customer enjoys, utility, benefit, quality and value are now table stakes. A differentiated and trusted experience, that includes feeling respected, is what will stand out. Someone’s choice of your product or service is a privilege. One of the best quotes from the respondent feedback sums it up: “Respect the customer and the customer will respect you.”

Brand Reputation in the Era of Data: 8 Principles for Responsible Data Stewardship That Won’t Kill Your Customer Relationships
Brand Reputation in the Era of Data – Principle 1: Empower Customer Control
Brand Reputation in the Era of Data – Principle 2: Be Clear and Accountable
Brand Reputation in the Era of Data – Principle 3: Do Everything You Can to Protect Customer Data
Brand Reputation in the Era of Data – Principle 4: Mind Your Partners!
Brand Reputation in the Era of Data – Principle 5: Practice Customer Empathy
Brand Reputation in the Era of Data – Principle 6: Comply with All Applicable Laws and Regulations. Then Exceed Them.
Brand Reputation in the Era of Data – Principle 7: Apply Technology Thoughtfully

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Growth Companies Benefit From Final Crowdfunding Rules

December 8th, 2015 | Posted by Sarah Jones in Guest Blogs - (Comments Off)

This week on NVTC’s blog, Alex Castelli of NVTC member CohnReznick shares how the SEC’s adoption of new crowdfunding rules could be a game changer for growth-focused businesses and investors.


The SEC’s adoption of new crowdfunding rules could be a game changer for growth-focused businesses and investors

On Oct. 30, 2015, the SEC approved final rules that permit companies to offer and sell securities through crowdfunding. The new rules provide another capital raising option for growth-oriented companies and offer additional options for investors who want to get in on the ground floor of in what could be a very successful business.

Benefits to Companies and Investors

Some of the key benefits of the SEC’s rules permitting crowdfunding or, simply put, the ability of companies to raise capital from the general public through the Internet are listed below.

  • Early-stage and growth companies that may be unable or unwilling to raise capital from institutional or private investors have access to another source of capital.
  • By offering and selling equity in their company through the Internet, companies gain a wider and more efficient distribution of the offering to a larger audience when compared to traditional sources.
  • Using the Internet to offer and sell securities should decrease the cost of capital
  • Non-accredited individual investors, previously excluded from equity crowdfunding investments, are now invited to become investors with certain limitations.
  • Investors have a level of protection since companies raising capital through crowdfunding will be required to utilize funding portals or registered broker dealers and will have certain disclosure requirements to investors. Additionally, funding portals that wish to participate in the crowdfunding process as an intermediary will be required to register with the SEC and become a member of FINRA.

Launching Your Crowdfunding Campaign

Even if you are a tremendously successful owner or executive, a successful crowdfunding effort will require expert marketing surrounding your efforts to raise funds. You and the members of your management team will assume the responsibility of formulating a marketing campaign to create interest in your offering. You’ll need a good story to tell investors complete with business plans, financial statements and projections.

In the crowd, you’ll be competing for investment dollars with other companies so you need to engage in strategies to elevate your offering over all others. Earning the trust and confidence of investors can lead to a successful offering. Consider activities that could strengthen your relationships with clients, customers, and even vendors. These relationships may help to support a successful crowdfunding campaign and could represent your future investors.

To launch your crowdfunding campaign, you’ll be using the services of an SEC registered broker/dealer or SEC registered crowdfunding platform or funding portal. Each will probably offer different services and fee structures. Once your customers, clients, and vendors have invested in your business, you may want to reach out to a broader base of potential investors. Getting your offer in front of the right investors will be critical to achieving your capital raising goals.

As a private company, you may not be accustomed to sharing operational and financial information publically. A successful crowdfunding campaign may require additional transparency if you are to build trust and confidence in prospective investors. If you are not comfortable sharing company information with the world, you may want to explore a more proprietary method of raising capital.

Once you have executed a successful crowdfunding campaign, you will need to have a plan on how you will continue to communicate to your new investors. How much information are you willing to share? Which rights to information will investors have? Consider creating an investor-only section on your company’s website where you can post periodic information about your company’s progress, financial results, etc. Transparency is the key if you want to keep your investors informed and hungry to make additional investment in the future.

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This week on NVTC’s blog, NVTC member company Kathy Stershic of Dialog Communications continues her Brand Reputation in the Era of Data series by sharing principle seven: applying technology thoughtfully while preserving customer data. 


Recently, Chapman University published the results of its survey America’s Top Fears 2015. Respondents were asked their fear level about different factors ranging from crime to disasters to their personal futures. FIVE OF THE TOP TEN THINGS PEOPLE FEAR ARE RELATED TO MIS-USE OF THEIR DATA! That includes cyber-terrorism, corporate tracking of personal information, government tracking of personal information, identity theft and credit card fraud. That’s out of 88 possible things to be afraid of!

There is a tidal wave of automation being applied to data collection and usage practices. I suggest that just because you can do something doesn’t always mean you should. We are approaching a tipping point around the creep factor of having everything that one does be tracked. People are tired of constant advertisements, witnessed by the increased adoption of ad blocking technology, and especially Apple’s recent iOS 9’s robust blocking capability for Safari – which has been heralded as the potential death of online advertising. As ads are blocked, marketers need to find other ways to get their message through, such as direct contact with mobile devices. That will require permission from each user. And that means you have to be delivering a lot of value while also showing some restraint in the level and frequency of contact.

Another interesting wrinkle is the October 6 ruling by the EU Court of Justice that struck down what is called Safe Harbor, a policy that allowed self-certification by U.S. companies to say their data protection standards were sufficient for EU citizens, who are protected by strict privacy law. Israel followed suit on Oct. 20. What happens next is yet to be determined, but everyone is scrambling to figure out how to protect their international business by the end of January grace period.

When practices get abused, people fight back or tune out. It’s human nature. In e-chatting during a webinar this week with its moderator Chris Surdak, a big data expert, (who I thought discussed unbridled capitalism more extremely than anyone I have ever heard), he noted regarding privacy that “The backlash will be epic, if we ever get there.” Hmmm. A thoughtful approach to what you collect, how you collect and use it, how long you keep what you collect, with whom you share it and what they do with it will better serve and protect your business and your brand through changes in customer sentiment and the regulatory environment.

Brand Reputation in the Era of Data: 8 Principles for Responsible Data Stewardship That Won’t Kill Your Customer Relationships
Brand Reputation in the Era of Data – Principle 1: Empower Customer Control
Brand Reputation in the Era of Data – Principle 2: Be Clear and Accountable
Brand Reputation in the Era of Data – Principle 3: Do Everything You Can to Protect Customer Data
Brand Reputation in the Era of Data – Principle 4: Mind Your Partners!
Brand Reputation in the Era of Data – Principle 5: Practice Customer Empathy
Brand Reputation in the Era of Data – Principle 6: Comply with All Applicable Laws and Regulations. Then Exceed Them.

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This week on NVTC’s blog, NVTC member LMI shares how emerging technology is making it easier for agencies and their partners to share essential data, even when the organizations have different security policies and protocols.


Last week’s Virtualization in a Collaborative Information Sharing Environment Forum, sponsored by the Intelligence and National Security Alliance (INSA), shed light on how emerging technology is making it easier for agencies and their partners to share essential data, even when the organizations have different security policies and protocols.

Network virtualization, also known as software-defined networking, uses cloud-based principles and technology to provide a more efficient IT infrastructure while opening the door for different types of users to seamlessly access information for which they are authorized by law and policy.

Kshemendra Paul, who oversees the Information Sharing Environment (ISE), noted that the original vision of a single, universal cloud providing services to all federal agencies has changed. Today, ISE’s emphasis is to establish common policy to “federate trust.”

Groups with different security and access controls share many common elements around trust (i.e., business rules for issuing credentials, individual attributes, data retention), so there is a framework for a diverse range of professionals to come together and share data. Paul noted Alabama already has developed a trust framework to enable the medical and law enforcement communities to share casework data.

To move agencies to a state where users share information without being hampered by technology, the panel discussed the following.

Network virtualization

  • Is gaining momentum—already, the National Geospatial-Intelligence Agency is fast-tracking implementation of network virtualization and wants other agencies to join.
  • Could automate security policy—by using the National Institute of Standards and Technology (NIST) framework for trusted identities in cyberspace, XML could be used to translate thousands of access control policies into machine-executable code.
  • Offers flexibility and immediacy—agencies will be able to expand and contract networks, as needed, as well as create them and move them around rapidly.
  • Creates efficiencies—alongside enhancing mission capabilities, virtualization lowers costs and improves end-user service through faster configuration and instant upgrades.
  • Tightens security—patches are quickly applied, since IT departments know all the users and applications for a given network.

Key challenges for implementing virtualization include change management and security. Seamlessly sharing sensitive information between organizations often goes against the grain of agency culture. Making virtualization scalable requires a culture change.

Security remains a constant challenge. As the data grow, IT departments will need to analyze bigger and bigger data sets to find insiders behaving badly. The right security investments need to be set aside for virtualization projects.

Keith Nelson is a member of LMI’s Organizational and Human Capital Solutions group, supporting human resources IT, workforce management, succession planning, and performance management for the State Department, the Department of Homeland Security, and the General Services Administration. Mr. Nelson holds an MBA from UCLA and a Master of Journalism from UC Berkeley.

 

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