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Unlocking the EconomicValue of Personal Data
Balancing Growth andProtection
Rethinking Personal Data Project, Workshop Summary, Brussels, 8 October 2012
October 2012
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World Economic Forum
2012 - All rights reserved.
No part of this publication may be reproduced or transmitted in any form or by any
means, including photocopying and recording, or by any information storage and
retrieval system. The views expressed are those of certain participants in the
discussion and do not necessarily reflect the views of all participants or of the
World Economic Forum.
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SummaryPersonal data can drive innovation,investment and sustainable economicgrowth, and greatly improve socialwelfare. There is a risk, however, thatthis value will not be realized givenconcerns about security, privacy,control and trust.
The World Economic Forum convened a half-day
workshop as part of the ongoing Rethinking PersonalData project (www.weforum.org/personaldata).More than 70 participants from different stakeholder
communities, including government, industry, academia,
think tanks and civil society, took part in the workshop.
Participants came from multiple countries from across
Europe, the US and the Middle East. Government
representatives included European parliamentarians, the
European Commission, data protection regulators, EU
member states and more. There were also
representatives from a wide range of industries, including
healthcare, financial services, logistics, automotive, IT andtelecommunications.
Some of the high-level messages that emerged from the
day included:
There is a need to ensure that rules governingpersonal data flow are flexible enough to enable new
business models, accommodate technology
evolution, enable user trust and meet the
requirements for user transparency
There was an acknowledgement that the basic dataprotection principles are not flawed and are still
applicable in many ways. However, the challenge is
that they do not work in todays world; they are not
being effectively implemented. In particular, notice
and consent was highlighted as not delivering real
effective choice to individuals to ensure
permissioned, trusted flow of data
There was broad agreement on the need to refreshand update existing privacy principles given the
significant shifts in technology and the way data is
collected and used; it has been decades since the
original Fair Information Practice Principles (FIPPs)
were written
Within the existing principles, the focus should be onfive principles grouped in two areas
- The openness and individual participationprinciples are key, but need to be refined and
strengthened; it may be possible to interpret
other principles through these
- The principles concerning collection limitation,purpose specification and use limitation need to
be redefined given they are based on the old
approach of data having a single purpose
Individuals are now both producers of data as wellas consumers; the old, somewhat paternalist,approach of viewing the individual exclusively as the
data subject and the organization as the data
controller is no longer valid
Use of codes of conduct could help enable flexibilityin the regulatory framework, and a potential
mechanism for a globally interoperable policy
framework
There was agreement on the importance ofgathering better evidence on how personal data is
used to create and at times destroy value; several
ideas on what should be measured and how to
measure it were discussed Participants highlighted the importance of
considering different applications of personal data
across different sectors; deeper and more
transparent knowledge exchange about the manner
in which data flows through the ecosystem could
lead to better decision-making by all stakeholders
Participants discuss how to strike the balance between growth and
protection over lunch
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Balancing Growth andProtectionOver lunch, participants discussedhow to strike the balance betweenusing personal data to create socialand economic growth opportunitiesfor all and the need to protect
individuals.
The discussion was stimulated by three introductory
comments from different stakeholder perspectives
government, industry and civil society.
From the government perspective the following issues
were identified:
A one-size fits all approach does not reflect therealities of how individuals use data
It is important to reflect different sectoral uses ofdata, which is why case studies prepared for this
event were so useful It is important for policy-makers to apply a reality
check and to try to square the circle of not halting
business use of data, but also protecting the citizen
Definition of personal data should not cover all dataabout an individual as that would prevent lots of
positive uses
Consent should not always be explicit, but can oftenbe implied as part of delivering the service
Clarify liabilities between data controller and dataprocessor as data moves
Given the complexity, it is important not to rush thediscussions on the EU data regulation
From the perspective of industry, the following points
were addressed:
The massive increase in the amount of datagenerated, particularly from mobile (always
connected real-time data) and social media, is a
significant megatrend
This creates potentially significant opportunities tocreate new value for individuals, companies and
society, but also poses challenges to data privacy
and protection
Experts from academia and civil society noted:
This is a very complex issue that requires a nuancedapproach to resolve
There is an emerging consensus that there shouldnot be a rebalancing of rights these should remain
absolute
However, the process/governance requiresimprovement to ensure confidence of all
stakeholders this needs to be open, transparent
and clear.
Alexander Alvaro, Vice-President of the European Parliament, discusses
the EU Data Protection Regulation
Challenges of privacy andprotection
Privacy law was established with the assumptionthat the sharing of personal information was harmful
- notice and consent is a reflection of this.
For many new services (e.g. Twitter, Foursquare,Yelp and Facebook), the presumption is individuals
want to share; the value comes from sharing
Personal data lockers allow the individual to be boththe data subject/creator and controller; organizations
and laws need to reflect this shift
Challenge of applying a nuanced social concept ofprivacy, which in the offline world is clearly
contextual to the online world where context is more
difficult to define
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Challenge to ensure organizations that can createdramatic social benefits (e.g. in healthcare) by using
data for secondary purposes other than the original
purpose of collection are able to do so
Challenge is to find ways to do data collectionwithout creating bureaucracy and without turning
consumers into liars (e.g. asking consumers to say
they have read and understood T&Cs)
Very different views were expressed on whetherregulatory attempts to protect individuals would help
facilitate or restrict the flow of data; resolving this
challenge is key to unlocking value of data
Socioeconomic benefit of data flow
Participants highlighted some examples of how datais being used to create value:
- Healthcare for research and better patientcare to save thousands of lives
- Automotive telematics/sensors in car to helpauthenticate owner to improve efficiency and
reduce theft, reduce driver fatigue, prevent road
accidents, improve fuel efficiency, etc.
- E-commerce and logistics to deliver productsefficiently and offer better service to customers
Distinction was drawn between the free flow of dataand free flow of knowledge. New approaches can
create ways for organizations to access and use
data to generate insight and knowledge without
having to own or store data. This could be potentially
facilitated by the individual having more control over
use of data through opt-in
However, many argued that while this new approachmight work in some circumstances, it could also lead
to a tragedy of the data commons where individuals
will not opt-in because of transaction costs the
time and effort required to understand and make this
decision. A key question is how do we enable free
flow of data in those circumstances where user
control may not be effective or appropriate?
Potential for a harm minimization approach wheredata could be used to create value without explicit
consent unless there specific harm to an individual
William Hoffman, World Economic Forum, outlines the three key
questions for discussion
Role of trust
Trust is something that regulation itself will notachieve; it comes in part from effective enforcement
of rules that are appropriate to different contexts
The possible role for co-regulation with effectiveenforcement was suggested as a good way to build
trust; this would be one way to take into account
context and complexity of the challenge but still build
trust
Key to building trust is to acknowledge that mostpersonal data has multiple rights holders. While
some data is "owned" by the individual, most data
has lots of stakeholders who have rights to it
including individuals, the private sector andgovernments. By establishing joint rights and trading
rules to exercise these rights, we can help build trust
Ensuring effective security of data is key to buildingtrust; government and the private sector needed to
work together
It is also important to address trust betweenorganizations (including companies and
governments) when exchanging data and particularly
to ensure data can cross borders effectively
One way to build trust is through the use of safeharbour provisions that allow field trials with
hundreds, thousands of people, and work out whatworks and what doesnt through experiment
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Principles for Trusted Flowof Personal DataShared principles were seen as theanchor points for global governanceand a way of strengtheningaccountability, predictability and trust.
Principles have been a core part of the governance of
personal data, but the manner in which they are
implemented needs to be updated to reflect how much
the world has changed.
Principles for personal data can be grouped into three
areas protection and security, rights and responsibility
for using data and accountability/enforcement.
There was an acknowledgement that the basic data
protection principles are not flawed and are still
applicable in many ways. However, the challenge is that
they do not work in todays world; they are not being
effectively implemented. In particular, notice and consentwas highlighted as not delivering real effective choice to
individuals to ensure permissioned, trusted flow of data
Participants were in general agreement on the need to
revisit privacy principles given the significant shifts in
personal communications technology, the adoption of
cloud-based services, and the manner in which data is
collected, stored and analysed. Since the privacy
principles were written in the 1970s and 1980s, the value
of connecting, sharing and analysing data has grown
significantly.
Within the existing principles, there are five which create
the most tension in the ecosystem (specified in Figure 1).
These are the ones participants felt should be clustered
into two areas.
The openness and individual participation principles were
viewed as the primary two principles to revisit and re-
conceptualize given the increased role of individuals as
both producers and consumers of data. With this
structural change in data flows, the shift in control to the
individual should be more thoroughly reviewed and
understood. With a refresh on a more user-centric
approach on control and openness, it was suggested
that these models could then serve to inform new
approaches to limits on collection, use specification and
consent.
Figure 1: The OECD Privacy Principles grouped according to the three
key areas for dialogue provided a framework for discussion
With broad recognition that a move away from the
traditional notice and consent models was needed,
participants suggested individuals simply do not have
agency over the secondary uses of personal data
throughout the ecosystem. To address this lack of
visibility on the relational aspects of data (What is its
provenance? Who is it related to? What are the
associated permissions for using it?), it was noted that a
broader use of metadata may serve as a technological
means to address this current deficiency.
Additional ideas in this area of discussion included
grouping the principles of collection limitation, purpose
specification and use limitation, together under a cluster
of Processing Principles. This grouping could be aimed
at maintaining the contextual integrity in the use of data
as it flows through the value chain.
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One of the key points of discussion was around how to
deal with different types of data the principles
predominantly apply to data that is actively collected.
How do we deal with data that is passively collected orobserved? With inferred data created by proprietary
algorithms?
Consistent with discussions held in other regions of the
world, there was also recognition of a class of use cases
aimed at serving the larger public good. This issue
continually arises as a key uncertainty requiring additional
discussion. The challenge lies in how to achieve a
balance between the engagement of individuals yet
establishing a sufficiently large pool of anonymous data
for analysis that would avoid a tragedy of the data
commons. One of the consistent points of discussionwas that models built on leveraging anonymous data to
create this data commons were highly problematic.
While conceptually there is a need for a rich data
commons, the design and implementation of this concept
requires a great deal more debate and discussion.
Anonymous data and its increasing ability to be de-
anonymized were also topics receiving much attention.
Because of the de-anonymization risk, approaches which
considered virtually all data types to be linked to an
individual would lead to significant reductions in value
creation.
Instead, a focus on ensuring de-anonymization did not
take place through both technological and policy
approaches was seen as being more appropriate and
sustainable. The point was made that the continual
advances in technology to re-identify data (and the
incentives of multiple actors in the ecosystem to do so)
should not be underestimated. A combination of
technical innovations (more robust permissions via
metadata), legal innovations (adoption of legally binding
system rules with strict non-compliance penalties) and
improved data literacy by individuals so they could make
effective choices were factors that all needed to be morefully developed.
In addition, participants emphasized the importance of
strengthening accountability and enforcement. This is
perhaps one of the critical areas needed to ensure a
balanced ecosystem. While the principle as it stands is
fine, there needs to be further work on how to make this
a reality.
The need to more fully explore co-regulatory approaches
utilizing binding corporate rules (BCRs), which are
currently used for international transfers, was seen as ameans for developing a more flexible, contextually
relevant and efficient approach for implementing the
principles.
Participants discuss principles for personal data in breakout groups
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The Need for BetterEvidenceOverall, there was widespreadagreement that a deeper, cross-sectoral understanding of how datacan used to either create or destroyvalue is needed in the marketplace.
With a deeper and more robust evidence base, a positive
feedback loop could be established between individuals,
civil society, governments and private sector
stakeholders. Deeper and more transparent knowledge
exchange about the manner in which data flows
throughout the ecosystem, could lead to better decision-
making by all stakeholders
Figure 2: The positive feedback loop from gathering better evidence on
how personal data is used
What is already being measured?
Overall, participants felt relatively limited evidence was
being systematically captured on how personal data is
being used to create value. There is also a perception
that there is a bias towards things that are easy to
measure and are easily seen.
Participants highlighted some of the areas where
evidence is being measured, including anecdotes and
stories, some measures of individual behaviour (both
actual measures and survey or polling measures), data
access requests, data breaches and market value of
companies collecting and using data.
To help structure the conversation around what is already
being measured in terms of case studies, the World
Economic Forum presented a simple framework for
discussion.
At the workshop, participants shared 10 case studies on
how personal data is being used to create (and in some
cases destroy value), what the scale of the impact is and
what issues or concerns such applications raised. By
considering a range of applications, participants
discussed how principles and rules needed to reflect the
range of different contexts in which personal data is being
used.
Figure 3: Framework for capturing use cases for how personal data
creates or destroys value
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What should be measured?
There are a number of areas where suggestions were
made on what should be better measured to increase
understanding and ensure better decision-making by all
stakeholders.
Some of the main areas include:
Benchmark status quo measurement where arewe at the moment in terms of costs of current
approaches to data protection which can then be
used to monitor trajectory and direction of change
Producer surplus and consumer surplus of differentofferings (e.g. OBA)
Social attitudes and consumer understanding Quality of service and user experience Regulatory compliance and cost/benefits Measurement of risk, harm and trust Contextual analysis of data data types, harms,
value for diff industry sectors
Marginal costs/benefits of opt-in vs opt-out
How should we measure in anadaptive, iterative way?
The possibility of creating a dynamic always on approachto measuring how data is being used was discussed. In
effect, the view is that it would be helpful to start using
big data to measure the impact of big data.
In addition, a crowd-sourcing approach that involves
individuals in the collection of data about how data is
used and to enforce and monitor good and bad uses is
seen as particularly effective.
Lastly, participants discussed collaborative
methodologies of capturing evidence, for example
through trust frameworks.
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Further Reading onEvidence and PrinciplesBarth-Jones, Daniel C., The 'Re-Identification' of Governor William Weld's Medical Information: A Critical Re-Examination of
Health Data Identification Risks and Privacy Protections, Then and Now(June 4, 2012). Available at SSRN:http://ssrn.com/abstract=2076397orhttp://dx.doi.org/10.2139/ssrn.2076397Brynjolfsson, Erik, Hitt, Lorin M. and Kim, Heekyung Hellen, Strength in Numbers: How Does Data-Driven Decisionmaking
Affect Firm Performance?(April 22, 2011). Available at SSRN:http://ssrn.com/abstract=1819486orhttp://dx.doi.org/10.2139/ssrn.1819486Halvorson, George, Goldsbrough, Peter, Kennedy, Simon, Kent, James, Close, Karalee and Becker, Daniel, The Digital
Dimension of Healthcare, Report of the Digital Innovation in Healthcare Working Group 2012, Global Health Policy Summit.
Available athttp://www.globalhealthpolicyforum.org/docs/GHPS_Digital_Innovation_Report.pdfInternational Institute of Communications, Personal Data Management: The Users Perspective, Executive Summary.
(October 9, 2012). Available athttp://www.iicom.org/resources/open-access-resources/doc_details/226-personal-data-management-the-users-perspectiveRubinstein, Ira, Big Data: The End of Privacy or a New Beginning?(October 5, 2012). Available at SSRN:http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2157659
Tene, Omer and Polonetsky, Jules, Big Data for All: Privacy and User Control in the Age of Analytics(September 20, 2012).
Northwestern Journal of Technology and Intellectual Property, Forthcoming. Available at SSRN:http://ssrn.com/abstract=2149364World Economic Forum, Rethinking Personal Data: Strengthening Trust, (May 2012).http://www.weforum.org/personaldata
http://ssrn.com/abstract=2076397http://ssrn.com/abstract=2076397http://dx.doi.org/10.2139/ssrn.2076397http://dx.doi.org/10.2139/ssrn.2076397http://dx.doi.org/10.2139/ssrn.2076397http://ssrn.com/abstract=1819486http://ssrn.com/abstract=1819486http://ssrn.com/abstract=1819486http://dx.doi.org/10.2139/ssrn.1819486http://dx.doi.org/10.2139/ssrn.1819486http://www.globalhealthpolicyforum.org/docs/GHPS_Digital_Innovation_Report.pdfhttp://www.globalhealthpolicyforum.org/docs/GHPS_Digital_Innovation_Report.pdfhttp://www.globalhealthpolicyforum.org/docs/GHPS_Digital_Innovation_Report.pdfhttp://www.iicom.org/resources/open-access-resources/doc_details/226-personal-data-management-the-users-perspectivehttp://www.iicom.org/resources/open-access-resources/doc_details/226-personal-data-management-the-users-perspectivehttp://www.iicom.org/resources/open-access-resources/doc_details/226-personal-data-management-the-users-perspectivehttp://www.iicom.org/resources/open-access-resources/doc_details/226-personal-data-management-the-users-perspectivehttp://papers.ssrn.com/sol3/papers.cfm?abstract_id=2157659http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2157659http://ssrn.com/abstract=2149364http://ssrn.com/abstract=2149364http://www.weforum.org/personaldatahttp://www.weforum.org/personaldatahttp://www.weforum.org/personaldatahttp://ssrn.com/abstract=2149364http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2157659http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2157659http://www.iicom.org/resources/open-access-resources/doc_details/226-personal-data-management-the-users-perspectivehttp://www.iicom.org/resources/open-access-resources/doc_details/226-personal-data-management-the-users-perspectivehttp://www.globalhealthpolicyforum.org/docs/GHPS_Digital_Innovation_Report.pdfhttp://dx.doi.org/10.2139/ssrn.1819486http://dx.doi.org/10.2139/ssrn.1819486http://ssrn.com/abstract=1819486http://ssrn.com/abstract=1819486http://dx.doi.org/10.2139/ssrn.2076397http://ssrn.com/abstract=2076397 -
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Workshop Participants
John Jolliffe Senior Manager Adobe Systems France
Gerald Deck Director and Lead Counsel, Europe Middle-East and
Africa
Akamai Technologies Germany
Jasper Meyers Senior Corporate Counsel Alcatel-Lucent The Netherlands
Dirk Linnenbruegger Executive Vice-President, IT Strategy & EnterpriseArchitecture
Allianz SE Germany
Karim A. Lesina Executive Director, EMEA Government Affairs AT&T Belgium
Stefan Scholer Head of Strategic Corporate Planning AUDI AG Germany
Kostas Rossoglou Senior Legal Officer BEUC, The European Consumer Organisation Belgium
Ian Emond European Affairs Policy Officer British Airways Belgium
Tilmann Kupfer Vice-President, Trade and International Affairs BT Group Plc Belgium
Cecile Plaidy Lawyer BT Group Plc Belgium
Bjarne Rasmussen Vice-President CA Technologies Switzerland
Richard Thomas Adviser, Global Strategy Centre for Information Policy Leadership United Kingdom
Leszek Izdebski Managing Director, IBSG Cisco USA
Willem Debeuckelaere President Commission for the Protection of Privacy Belgium
Jean-Philippe Moiny Research Fellow Council of Europe Belgium
Alan Mitchell Strategy Manager Ctrl-Shift United Kingdom
Alexandra Krenzler Senior Manager, European Affairs Deutsche Telekom Germany
Jacques Bus Secretary General Digital Enlightenment Forum Belgium
Cameron Craig Partner DLA Piper UK LLP United Kingdom
Marie-Hlne Boulanger Head of Unit, Data Protection European Commission, DG Justice Belgium
Nicole Dewandre Advisor to the Director-General European Commission, DG Connect Belgium
Rosa Barcelo Policy Coordinator - Data Protection European Commission, DG Connect Belgium
Achim Klabunde Head of Sector IT Policy European Data Protection Supervisor Belgium
Anne-Christine Lacoste Head, International Cooperation and Legislative
Policy
European Data Protection Supervisor Belgium
Sean Kelly Member of the European Parliament European Parliament Belgium
Alexander Alvaro Member of the European Parliament European Parliament Belgium
Erika Mann Director, European Affairs Facebook Belgium
Nicolas de Cordes Vice-President, Marketing Vision France Telecom France
Titus Goll Consultant Public Affairs German Dialogue Marketing Association (DDV) Germany
Marisa Jimenez Senior Counsel, European Privacy Policy Google Belgium
Pat Walshe Director Privacy GSM Association United Kingdom
Reehan Sheikh Senior Information Officer Health Authority of Abu Dhabi (HAAD) United ArabEmirates
Daniel Pradelles Privacy Officer, Europe Middle East and Africa HP France
John H. Clippinger Chief Executive Officer ID3, MIT USA
Ira Rubinstein Senior Research Fellow, Adjunct Professor Information Law Institute, NYU School of Law USA
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Ken Anderson Senior Research Scientist, Vibrant Data Portfolio
Manager Intel Labs
Intel USA
Geoffrey A. Manne Lecturer in Law International Center for Law & Economics, Lewis& Clark School
USA
John Grumitt Vice-President International Diabetes Federation United Kingdom
Frdric Donck Director, European Regional Bureau Internet Society Belgium
Robin Wilton Technical Outreach Director - Identity and Privacy Internet Society United Kingdom
Jamie Ferguson Vice-President, Health IT; Fellow, Institute for HealthPolicy
Kaiser Permanente USA
David Jacoby Senior Security Researcher Kaspersky Sweden
Chris Hutchins Vice President of European Affairs Liberty Global Belgium
Simon G. Davies Information Systems and Innovation Group,Department of Management
London School of Economics United Kingdom
Marc Davis Partner Architect, Microsoft Online Services Division Microsoft Corporation USA
Jean Goni Director, Privacy Microsoft Corporation Belgium
John Bowman Head of EU and International Data Protection Policy Ministry of Justice of the United Kingdom United Kingdom
Alex Fowler Global Privacy and Public Policy Leader Mozilla USA
William Heath Co-Founder Mydex CIC United Kingdom
Daniela Fabian Masoch Global Head, Data Privacy Novartis International AG Switzerland
Timothy Edgar Senior Legal Advisor Office of the Director of National Intelligence USA
Brendan Van Alsenoy Directorate for Science, Technology and Industry;
Information and Communications Policy
Organisation for Economic Co-operation and
Development (OECD)
France
Kaliya Hamlin Executive Director Personal Data Ecosystem Consortium USA
Alin Stanescu Senior Public Policy Strategist, Government Affairs
Europe
Qualcomm Belgium
Cynthia O'Donoghue Partner Reed Smith LLP United Kingdom
Christopher Mikkelsen Co-founder Refugees United Denmark
Aurlia Debru European Affairs Officer Renault Nissan Alliance Belgium
Chris Sundermeier General Counsel, Chief Privacy Officer Reputation.com, Inc. USA
Simon Torrance Chief Executive Officer, Telco 2.0 Initiative STL Partners United Kingdom
Luk Vervenne Chief Executive Officer Synergetics nv, TAS3 Belgium
Berin Szoka President Tech Freedom USA
David Dean Senior Partner and Managing Director The Boston Consulting Group Germany
Kenneth Neil Cukier Data Editor The Economist United Kingdom
Penelope Naas Vice-President Public Affairs UPS Belgium
Scott L. David Executive Director, Law School University of Washington USA
Rob Conway Chief International Affairs Officer VimpelCom Ltd Netherlands
Russell Schrader Associate General Counsel and Chief Privacy Officer Visa USA
Antonella Galetta PhD Researcher Vrije Universiteit Brussel - LSTS Belgium
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Contact
Sincere thanks are extended to the industry experts who
contributed their unique insights to this workshop. We
are also grateful for the commitment and support of The
Boston Consulting Group (BCG) in their capacity as
project adviser.
Visit www.weforum.org/personaldata
Contact:
William HoffmanAssociate Director
Information Communication and Technology Industries
Tel.: +1 212 703 2332
E-mail:[email protected] Kalapesi
Project Manager (BCG Secondee)
Information Communication and Technology Industries
Tel.: +1 917 392 0789
E-mail:[email protected]
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected] -
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TheWorld Economic Forum isan independent international
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