Why and How Government CDOs Should Leverage Big Data for ‘Public Good’

Data is an immensely valuable asset, with both public and private organizations using it to design new products and services, create ground-breaking drug therapies, foster better decision-making, generate revenue, and ultimately, enhance financial returns.

The most valuable American companies, such as Apple, Microsoft, Alphabet, Amazon, and Tesla, have market capitalizations fueled by the immense volumes of personal and other data they collect and deploy. Private enterprises collect and harness data for purposes such as understanding consumer behavior, optimizing supply chains, and enhancing revenue.

However, the public sector has not fully realized the potential of Big Data (large, complex, and diverse data sets) in designing and delivering civic products and services that meet the needs of communities throughout the U.S.

As a result, there is a significant information asymmetry between the private and public sectors — with the private sector being able to leverage Big Data and use it to create monopolistic or monopsonistic forces in national and global markets for goods and services.

The information asymmetry and powerful market forces, which are not currently subject to meaningful regulation, are not easily countered. Addressing information asymmetries and harnessing the power of Big Data in the public sector is essential for the efficient functioning of markets and the improvement of civic products and services. Treating data as public infrastructure and ensuring ethical use can help create a more equitable and prosperous society.

Big Data-powered government agencies

To address this issue, government agencies should harness the power of Big Data generated and stored by private enterprises to improve various aspects of society, such as the goods and services that are provided by healthcare systems, justice and legal systems, and public utilities, all with the objective of progressing the communities in which we live.

Leveraging this vast reservoir of information could enable us to hone in on solutions to persistent problems ensuring our communities are nurtured with user-centric services and empowering individuals to lead fruitful and productive lives. Just as we probe into the accuracy of outcomes in our criminal justice systems, the reach of preventative medical care, and the literacy rates of our young children, there are yet more questions that Big Data can help answer.

For example, we could ask, "How effective are our current strategies for homelessness reduction, and how can these strategies be optimized?" By analyzing extensive datasets on homelessness, we could refine and tailor our interventions, making them more effective and targeted. Or, we could pose the question, "What is the rate of employment among recent graduates, and how can we boost their entry into the workforce?"

With Big Data, we could uncover correlations and trends in graduate employability, identifying the gaps and opportunities to support our future workforce. And, we could ask, "What are the contributing factors to the high rates of mental health issues in our society, and how can we address them proactively?"

Through analyzing relevant data, we can gain a holistic understanding of the triggers and trends in mental health, facilitating preemptive measures and targeted mental health support services. In essence, Big Data holds the potential to revolutionize the public sector, shaping a society that is adaptive, responsive, and resilient to its citizens' needs.

And, as we look to harness the value of data, or Big Data, as a public good and to drive progress and innovation in the public sector, we should consider three prime directives:

1. Safeguarding personal data and strengthening privacy frameworks

2. Adopting ethical uses of artificial intelligence

3. Deploying data as public infrastructure to improve the lives of all who live in our communities

By championing these directives, government agencies can better utilize Big Data to design and deliver user-centric civic products and services. Examples of private sector data-driven value include Amazon's recommendation engine, Alphabet's data-driven urban planning systems, and OpenAI's ChatGPT, among many, many other examples.

If the data collected by these companies were made available to government agencies and the public, it could bring about greater transparency and improve the planning, design, and fulfillment of civic services at federal, state, and local levels.

Information asymmetries between the private and public sectors have led to data-driven monopolistic forces in markets, with private companies possessing more knowledge about individuals than government agencies or the individuals themselves.

The need for civic-centered data collection and curation

To address this imbalance, we must develop civic-centered data collection and curation strategies, viewing Big Data as part of our public infrastructure. Data is as vital to our civic ecosystems as water is to natural ecosystems.

Data should be "open access" to the extent that it can inform advancements while protecting individual privacy rights. Planning for civic products and services that we all use and count on for the smooth operation of our everyday lives is less than optimal.

Public sector organizations have access to data but often lack the means to transform it into insights for better decision-making. We must change how we collect and use Big Data for the advancement of our nation and its citizens; we must collect and use data purposefully.

There are, of course, concerns about the misuse of Big Data in both government and private sectors; and, rightfully so. Companies have been fined for violating privacy laws, data breaches, and misusing AI-backed systems that are fueled by big data. To address these issues, we need to ensure that data is used ethically and responsibly, with a focus on benefiting the public good.

Chief Data Officers (CDOs) at federal, state, and local governments can play a crucial role in harnessing the power of data to improve public services. They can develop innovative ways of collecting, processing, and extracting insights from massive amounts of data, ultimately creating greater public value.

They can also spearhead and pave the way for private-public partnerships that provide for uses of Big Data for both public and private sectors, all the while optimizing ROI from its collection and use.

Addressing data privacy concerns

Many experts argue that having CDOs within companies or government agencies is not enough to protect privacy rights and prevent misuse of Big Data. Privacy is one of the most significant and far-reaching social, political, and economic issues of our time. In 2021, state legislatures proposed or passed at least 27 online privacy bills, regulating data markets and protecting personal digital rights.

Each state within the U.S. has a great interest in protecting the personal information of its residents and using Big Data to create the best possible environment for them. States could appoint a non-partisan Chief Privacy Officer (CPO) in a similar way to CDOs, with the role being housed within the State Attorney General's office.

California has already established a privacy protection agency as the foundation for its CPO. Governor Gavin Newsom created the California Privacy Protection Agency, a five-member agency empowered to protect individuals' privacy, with experts in privacy, technology, and consumer rights.

A state CPO, working in conjunction with a state CDO and a state Attorney General, could empower states to uncover and prevent violations of privacy laws. With such resources, states may have been better positioned to prevent Google's misleading geolocation-tracking practices that led to a US$ 392 million settlement with 40 individual states.

State and local CDOs are well-positioned to help other lawmakers navigate the difficult boundaries of privacy when aggregating Big Data. They are essential to establishing and maintaining Big Data as infrastructure for the greater public good.

Proactive engagement by states is critical until Congress can overcome the inertia preventing it from adopting a more comprehensive, nationwide privacy regulatory framework. With the right boundaries in place, we can facilitate data-fueled innovations within the public sector that are naturally occurring in the private sector.

About the Authors:

Karen M. Suber, Esq.

Karen Suber is co-founder and CEO of Attune Analytics where she leads the strategic and operational direction of Attune. Karen, and her co-founder, John, founded Attune with the primary objective of providing data-based insights to spark value creation. Karen is a strategic business and legal advisor, boasting over 25 years of experience in providing expert counsel to clients across various industries.

John Giraldi, Ph.D.

Dr. John Giraldi has 30 years of tech industry experience, with significant contributions to data science and digital advertising. After obtaining his Ph.D. in Electrical Engineering from Rutgers University, he held development, research and management positions in various tech companies, spanning data science, machine learning, and digital advertising. As a seasoned entrepreneur, John previously founded two adtech start-ups and currently serves as the CTO at Attune Analytics.