Bandwagon Economics

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Bandwagon Economics

• The necessary ingredient for success on the
  Identity Internet

Nick Ragouzis, Enosis Group
Internet Identity WorkshopBerkeley CA, October ,
2005
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Reinterpreting Identitys Economics
The Little Bay at La Ciotat Georges Braque, 1907
The Road from Versailles to Saint-Germain Alfred
Sisley 1875
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The Discussion
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Return on Investment

• Operational Efficiencies in Provisioning
• Productivities in service consolidation
• Help desk offsets
• Compliance management
• Platform interoperation
• Export of risks
• Reduction in identifiers

False foundation?
Tacit agreement with a party having the power
to escalate or change requirements and alter
the agreement
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Changing Face of Personalization

• Information collecting enough, using
  intelligently

• Personal greeting and targeted presentation
  insufficient
• More than personalization morphed into mass
  customization
• Significant disruption
• Continually alter offerings
• Allow customers to arbitrarily create
  products(Auctions, recommenders, folksonomies,
  game worlds, shopping bots )

Personalization is now product innovation,
sharing all demands for investment and exposures
to risks. McKinsey, Accenture, Gartner

• Major overhaul to entire technology platform and
  product marketing, enterprise resource planning,
  and management systems.
• Now selling Trust.

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Foreshadowing for Identity

• Users wield significantly more control than weve
  accounted
• Rather than preservation of status quo, were
  facing a substantial systemic upheaval

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Identity Internet

• The stack issue

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Idealized
(Following Stevens, 2004)
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Practical Considerations

• Integrating real-time services
• Defining a parallel, multimedia Internet
• Divide Internet according to services rqmnts Set
  stage for RSVP
• Required pervasive stack change
• Abandon idea appls could simply adopt to lower
  layers or lower layers could infer upper-layer
  needs
• Throughout stack align semantics extensive to
  apps
• Possible in IPv4 in IPv6 reshaping of IP header
• Introduction of 20 bits for the experimental Flow
  field
• An explicit reorientation of upper-layer
  semantics into IP
• 250 increase in bits dedicated to these
  semantics

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DSCP
ECN
Flow
IPv6 Header

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Identity in IPv6 Transport Mode

• Defining Authentication Header
• Ground work Application-domain Identity
• E.g., IKEv2 Security Assoc for IPv6 IPsec
• More
• SAML DNA has a role here too
• Joining email addresses or X.509v3 certificates
• Similar work in EAP and PANA, SIP, and Mobile
  IPv6 Bootstrap

IPv6 Header
Authentication Extnsn Header
IPv6 Transport mode
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Bandwagon Economics
Broad Interlinking, and Third-Party Complementary
Bandwagon Services

• Do markets using digital identity exhibit these
  effects?
• Do users have this kind of influence?
• If so, lends credibility to Identity Internet,
  and importance of certain kind of identity tech.

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Bandwagon Economics Basics

• Political Movements Player Pianos
• Facsimile Mobile SMS
• PCs TV-Anytime

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Bandwagons and Identity InternetTV-Anytime

• Background TV-Anytime Forum
• Europe, Asia, North America
• Targeting personal video recorder and related
• Really, all electronic media very broad scope
  well beyond EPG
• Test bed, adoption processes, Japan Europe
• crid//bbc.co.uk/Eastenders/
• Launch this summer of demonstration at BBC TV and
  Radio service open source JavaAPI

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Scenario Players

• DVB-Tv a digital video content company
• NDRS a partner offering content recording svcs
• PDR Co. TV-Anytime-enabled equip
• Telefan family

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Moving the Bandwagon

• DVB-Tv and NDRS walled-garden interlinking
• Enable personalization and recommender
• User Publish Subscribe
• Focused attention to identity, nothing grand
• Compare to
• Friendster (audience makes own services
  in-domain)
• LinkedIn (less of that other drivers)
• Facebook (satisfies other needs)
• Good reason for not doing more
• Uncertain biz model
• Identity technology is more challenging

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Accelerating the Bandwagon

• DVB-Tv, NDRS, and PDR Co move forward
• Competing services, allow user interlinking
• Third-party complementary services
• Enhanced preferences-based schedule searching
• The globe over (out of market)
• Integrating with other content (out of media)
• Enable full integration by all parties (beyond
  pub/sub)
• Cant get far unless Identity-enabled

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TV-Anytime Impact Vision (part of)
(From A. Mornington-West, EBU Technical Review,
Apr 2005)
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Identity-Enabling in TV-Anytime

• Compose and intertwine bunch of identity
  standards, then invent an application layer?
• or
• Implement identity architecture prepared to deal
  with
• End-user services
• Offering bandwagon-like interlinking build it
• Liberty Alliances Web Services Framework (WSF)
  for Personal Profile (PP) service, more
  significantly
• WSF Data Services Template
• Any other end-user service understanding DST and
  its identity service can interlink for
  identity-enabled services of any kind

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Telefan Family

• Interlink information from a Geolocation Services
  provider
• With information from Presence Services provider
• Look for content related to PP-managed
  preferences
• Titles, previews for genre, actors, characters
• Including inducements related to linking
• Publish these to family, friends, strangers
• Even outside Telefans service providers env.

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Same Conclusion at OMA

• WSF DST and more
• OMA Web Services Enabler Releases
• Network Identity Technical Specifications
• Demonstrated more than year back
• OMAs critical objectives
• End-to-End Interoperability
• but their bars much higher than technical
  consid.
• the customer-to-customer end-user experience

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Obvious? Not so much ATSC

• Consider ACAP and ICP
• ASTC executed classic layer-and-compose
• Reinventing systems not Identity-extensible
• And not conducive to bandwagon effects
• Compare to what the DVB Project defined
• Broadly integrating TV-Anytime as above
• Almost seems an attempt to build system thats
  difficult for broad interlinking, or 3rd-party
  complementary bandwagon services.
• Even having full awareness of TV-Anytime (AdvEPG)

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More User Power Disruptive Tech

• User creates identities and gains leverage
• Over identifiers, credentials and attributes
• Through direct action, agency
• In response to internal needs and inducements
• Digital identity as a new currency
• Compete for it
• Offering marketplace-negotiated value
• Use it strategically

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Disruptive Technology Basics

• Power to separate firm from customers
• Initially a supply not in firms business model
• Similar, but
• Doesnt act like other inputs
• Likely from a different supplier
• Primary attributes arent match to firm business
  model
• A few firms make these attributes central
• Suddenly the basis of competition
• Firms belated adoption customers already lost
  to rivals
• Looking back Looks obvious!

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Pre-Disruptive Identity

• Firms aligned on basic, intrinsic, personally
  identifying attributes Biometrics, life events
• Enhanced with global, local, contextual attribs
• Issued credentials, relevant affiliations, mutual
  t-actions
• Believe them useful to hold
• Contributing to a firms valuation
• We manage them to produce returns
• Efficiencies and productivity
• Further processing, mining generate attributes
  useful
• Customer gets indirect returns, future
  transactions

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Pretty Expensive, and Risky

• Risky in dependence on further transactions
• For customers relatively low costs, but nearly
  infinitesimal return
• Once theyve provided the information with one
  firm, and created a history engagements and
  transactions
• Theres no way to leverage, consolidate, export,
  generalize, bring agency to bear, enable others
  to offer value in exchange
• Indirect returns through further transactions
  with firm

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Identity Internet as Disruption

• Among firms
• External interlinking, 3rd-party complementary BW
  Svcs
• For customers
• Significant resources for leveraging identity
• Identity now includes
• Current location destinations past and future
• Proximate and remote friends and associates
• Transaction history, broad range of vendors,
  psychographics (drivers, desires, doubts)
• Variation and conflicts explicitness, details,
  rights

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New Partners New Terms

• Less like money more like time
• Identity Hold Mine ? Short time to leverage
• Highly contextual others short lived
• Velocity/Freshness is one of most important
  attributes
• Attributes available only through third parties
• Many previously irrelevant or unavailable (no
  agency)
• Firm can only lease this
• And secure a license (users partnership!)
• Aggressively, in real time, lease their info to
  others

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Evolution of Valued Attributes
Dominant paradigm
Disruptive paradigm
Price
Firms Efficiencies
Convenience
Users Single Sign-on
Reliability
Firms Security and Compliance
Performance
Users Generate and leverage identity-related
attributes and transactions Firms Mechanics and
connectivities
Christensen
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IdINets Disruptive Value Network
Dominant paradigm
Disruptive paradigm
Delivering attributes to local or foreign
identity-conditioned services
Operations and Marketing, in direct transactions
and offsets
Harvesting
Enabling those transports and amplified agency to
effect connectivity
Identity and Account Management machine for
efficiencies and customer relationship management
etc, for personalization
Machinery
Users Creating attributes and efforts to
interlink relationship with firm and other
providers and users
Users Basic demographics and attributes
Inputs
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Informing Laws of Identity?

• Above factors more pervasive in these Laws?
• Transform from Laws of Identity Security
• Framework for controlling and remembering for
  clarifying, conditioning, creating and deleting,
  leveraging and projecting
• More power from metaphorical alignment with other
  Internets we know?
• Mobile Internet, Multimedia Internet
• Really not so much like device drivers and
  backplanes
• Less like ISA to MCA to EISA
• More like top-to-bottom PCI

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Explorations for Laws

• Law 1 User Control and Consent
• More explicitly move beyond Mothers Milk
  semantics of user consent
• Larger domain of user-control, user-leveragability
  Extensive and broad conceptualization of
  control, of consent
• Law 2 Minimal Disclosure for a Constrained Use
• Expand beyond identity security remove shifting
  foundation (firms can adhere to this law by
  aggregation)
• Express more important characteristics
• Responsibility for assisting users/all in
  disclosure and use

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Explorations for Laws

• Law 3 Law of Justifiable Parties
• Consider what people do rather than their
  explanations
• People justify many odd practices with identity
• Membership cards information barter for trifles
• Not aberrations cant discount or legislate or
  subvert
• They control these assets this is what they do
• Discounts risks inflate value
• Underestimates speed of use lifetime impact of
  breach

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Passport A Different Lesson?

• Bandwagon economics suggest future where
• Many companies will be involved in a firms
  customer relationships
• Driven by firms needs, and behaviors of
  customers
• And customer do allow, seek, controllers for
  identity
• Passport was itself a disruptive technology
• Bandwagon stalled various reasons, incl
• Didnt early- and widely-enough allow
  interlinking on identity, and among complementary
  suppliers
• Didnt offer users the power they desire to be
  suppliers of their own disruptive technology

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Explorations for Laws

• Law 4 Directed Identity
• Cannot be exclusive or absolute
• Not characteristic of system per se, but of user
  controls
• Recall Branding works just the opposite way
• Project a global contextualization (variability)
• To create a local fixedness with customer
  (invariability)
• Such as multiple distinctively-different branded
  websites
• Implication consistent with other Laws, this law
  might make explicit the necessity to be able to
  correlate and promote/demote a global beacon
  for any aspect of identity.

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Explorations for Laws

• Law 5 Pluralism of Operators and Technologies
• From new perspective theres a non sequitur here
• We need a simple encapsulating protocol
• Of course Need to ways for many, multiple,
  potentially very different, identity technologies
  to interoperate.
• Path of innovation depends on Enable inventions
  of incompatible systems and services
• Maybe same name, same polytheistic quality
• Every identity technology incorporate (perhaps
  by reference)
• The means for deployers (without substantial acts
  of invention)
• To realize for users full external interlinking
  and 3rd-Party Svcs

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Explorations for Laws

• Law 6 Human Integration
• Awareness and tone here of unanswered questions
  is about right temper tone of identity security
• Awareness that identity is something users create
  and distribute
• Attention to human experience dimension
• Temper the communications metaphor need for
  predictable ceremony
• Over a very limited aspect of that domain
• Recognize
• Consistency in principles, not manifestation

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Explorations for Laws

• Law 7 Consistent Experience Across Contexts
• Again
• Consistency in principles, not manifestation
• Temper or balance the Law of Identity Security
  aspect
• Issued identities Avoid Any color as long as it
  is black
• Reverse conflation of identity and identifier and
  credentials
• Identity requires only that parties agree on how
  the relying party will verify the identifier for
  that purpose not that identifier be issued by
  3rd-party
• Our bandwagon will be stuck if users cant
  monetize their actions with all identities
• Thingifying In as many forms as today in user
  documents and actions.

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The Identity Internet

• New identity fundamentally a new, disruptive
  technology
• Controlled by new providers, under new terms
• Necessitates need to develop bandwagon economics
  around identity
• Otherwise identity limited to operational and
  risk domains
• Bandwagon returns from broad interlinking,
  3rd-party complementary bandwagon services
• Requires, then, a particular kind of identity
  technology
• Integral approach in stack through to user level

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Thank you
Nick Ragouzis, Enosis Group http//identityeconom
ics.com/resources/identitybandwagon.iiw05.pdf http
//identityeconomics.com/resources/identitybandwag
on.iiw05.ppt