Tech regulation; learn the lessons of the past…

The Badger has just arranged for a headstone to be erected at the grave of a relative who passed-away some years ago. The process started with using Google to research the different types of  headstone, suppliers, pricing, and graveyard regulations. Having done the research, the Badger engaged a provider and arrangements were made using to the providers preferred business methods, namely good old fashioned telephone calls, letters and forms by post, and cheques for payments. Everything went smoothly and the headstone is now in place.

There was only one thing that was an irritant in the whole process – the flood of content, adverts, and unsolicited marketing that appeared in the Badger’s news, email, and social media feeds following the Google search queries!  Receiving unsolicited and unwanted suggestions about funeral plans, care homes, equity release, life insurance, will writing, and donating to charity via a will was just tiresome and a reminder that the big  tech giants track and use our behavioural data. If there was a single, simple, ‘Big Red Button’ that turned all that stuff off, then the Badger would have pushed it!  

Recent news that a Digital Markets Unit is being formed under the UK Competition and Markets Authority (CMA) (see here, here and here) to start limiting the power of big tech firms in the UK seemed like welcome news and a sign that politicians are starting to wake up.  In the USA, of course, Google is already in the cross-hairs of the US government for alleged anticompetitive abuses. At long last, governments around the world seem to be very slowly addressing regulation of the big tech giants which, let’s face it, are enormously powerful as well as being at the heart of the functioning of today’s modern society.

Sceptical about the need for regulation? Read the Financial Times article here. It points out that the 2008 banking crisis showed that careful oversight is needed when the public interest depends on businesses that exist to meet the needs of private capital providers. Before 2008, the approach of regulators to the way banks behaved was ‘principles based’, i.e. deliberately light touch. This relied too much on the banks’ abilities to govern themselves, and it failed. Similarities with the current approach with big tech are striking.  We should learn the lessons from the past! After all, isn’t that what the leaders of all corporations and governmental institutions are forever telling their employees and everyone else to do?

When speaking to the headstone provider, the Badger asked why – apart from a basic website – they hadn’t fully embraced the digital world. Simple, they answered. ‘We’ve stayed in business for over a century because we learn our lessons, one of which has been to always steer a cautious path through periods of innovation and change’. How very refreshing!     

Cyber attacks on the ‘Middleman’…

Elexon announced last week that their internal IT had been impacted by a cyber-attack. Specific detail about the attack was not, understandably, released although there has been some speculation in the media. Elexon plays an important role in the UK electricity market by operating the Balancing and Settlement Code (BSC) and facilitating payments between generators, suppliers and brokers. Although the ‘critical national infrastructure (CNI)’ systems at the heart of electricity market operations were unaffected, the incident is nevertheless embarrassing for this ‘middleman’ organisation.

Coincidentally, the incident caught the Badger’s eye just after reading the UK Department of Digital, Culture, Media & Sport ‘s March 2020 Cyber Security Breaches Survey. Broadly, the report concludes that with Board attention on cyber security and the advent of GDPR, organisations are becoming more resilient to cyber-attacks and faster at recovering from breaches, but less likely to report the negative impact and cost of breaches. The report also reiterates that the nature of cyber threat is continuously evolving and that organisations are experiencing attacks more frequently than 5 years ago. Essentially, progress is being made but there is still lots to do and no organisation can be complacent.

The Elexon incident is yet another reminder that organisations and the public in today’s digital world can never be immune to cyber threat from ‘bad actors’ of any type. It is a reminder that personal and organisational cyber security awareness, diligence, discipline, and professionalism are essential if threats are to be minimised, attacks repelled, and security, data, and privacy preserved. The fact that the Elexon incident did not impact the electricity market systems per se, or the ability to keep the country’s lights on, is not surprising because CNI systems are obvious targets for ‘bad actors’ and their protection is taken very seriously by complying with good advice and guidance from national authorities.

A couple of days ago, a conversation with an acquaintance about the Elexon incident took an unexpected turn. They said if they were a ‘bad actor’ like Blofeld out to destabilise an entire country, they would unleash a simultaneous cyber-attack on all ‘middleman’ organisations similar to Elexon and DCC (for Smart Meters) in all key sectors. Why? It would be easier and simpler than going after CNI systems per se, because the ‘middleman’ is likely to have more weaknesses in their cyber defences. National turmoil would ensue without damaging the CNI itself. Just think, they said, what knocking out all ‘middleman’ organisations simultaneously would lead to in terms of pressure on the government, business frustration, social media backlash, loss of national confidence, political turmoil, international embarrassment and so on. The door would be open for a new regime!

The acquaintance sensed the Badger becoming concerned and suspicious. They quickly pointed out that they were not, of course, actually Blofeld! And, just in case you are wondering, neither is the Badger…

The 6 Cs – Control, Care, Commerce, Community, Consumption & Communications

Long days of pandemic-related lockdown do strange things to your thoughts. We obviously think about our personal circumstances and fears, but simple things can trigger thoughts that can take you to unexpected conclusions. The Badger, for example, has noticed that simple observations trigger thoughts that meander to a conclusion that barely relates to the observation itself, as illustrated below.

The Badger recently noticed his wife’s growing irritation with mainstream TV News. She increasingly asserts ‘TV News has more dinner party chat dressed as analysis, complainers and people with an axe to grind, spin, and scaremongering speculation than straightforward factual news.’ Hmm. ‘A Story’ is what drives journalists, which in today’s instant communication era suggests that no TV broadcasters, print or social media/internet platforms can really provide reliable, factual, spin-free news.

Anyway, that’s a digression, because observing the wife’s rising irritation triggered the Badger to think about what he would do if he were leader of a country when the current crisis has abated! The Badger cogitated under a fruit tree in full blossom over a couple of cups of coffee. The answer – to initiate an independent ‘lessons learned’ review to identify improvements and inform the country’s future policies and direction – soon emerged.

The review would cover six pillars:

  •  Control – What improvements in command, control and logistics mechanisms are needed to be better prepared for this type of future crisis?
  • Care – What are the lessons for the country health and social care system and how can weaknesses be addressed in an economically viable way?
  • Commerce – What are the economic and operational lessons for Public Services and Business? What do these mean for future workforce planning, productivity, business activities, financial prudence, and supply chain policy?
  • Community – How has the crisis changed social attitudes, behaviours and the priorities and demands of the general public? How has the public mood changed regarding nationalism versus internationalism and globalisation? How does this compare between demographics and with other countries?
  • Consumption – What have consumers and businesses learned about what their demand for goods, commodities, and services has on life, the climate, the environment, and sustainability? What impact will greater consumer enlightenment have on country priorities and wealth?
  • Communications – What lessons emerge from crisis communication direct from government to the general public? What can change to reduce misinformation in printed, broadcast, and internet-based media, and on social media platforms? How have public attitudes to regulation and privacy changed due to the pandemic?

Tech crosses all 6 pillars. It has mostly been a saviour in this crisis, especially when you realise that if this pandemic had happened 10 to 15 years ago when tech was less mature, the impact on our lives would have been orders of magnitude worse.

So, there you have it. A simple observation can trigger an unexpected train of thought. Fortunately, the Badger’s not a country leader. One thing’s certain, however. The world has changed and things really can’t be same as they were. Our leaders must know that?

Crisis! A time that always exposes ‘True Colours’…

A week ago, on a sunny UK Spring day, the Badger sat in his conservatory reflecting on how COVID-19 has emptied the streets and impacted lives and livelihoods. The birds and creamy yellow clumps of self-seeded polyanthus in the garden provided a reminder of nature’s glory as the Badger thought about the pressures on those leading the response to the pandemic. The Badger knows from coordinating his employer’s business continuity responses to events like the 7th July 2005 London terror attacks and the 2010 volcanic ash clouds from Iceland, that decisions must be taken and a course of action set even if the information available is conflicting or fuzzy. Some will always challenge the decisions and course of action, but the Badger learned that it’s important not to become distracted or defensive. Proper lessons to be learned come from a proper post-crisis review in calmer times.

As the Badger cogitated, Cyndi Lauper’s song ‘True Colours’ came on the radio. The ‘true colours’ idiom comes from the 18th century when ships showed their country flag (‘colours’) when going into battle. Many showed a flag of a different country to make opponents think they were friendly, only to show their real flag (‘true colours’) as they attacked. The song reminded the Badger that, in his experience, the ‘true colours’ of leaders, business executives, suppliers, clients, and staff quickly move into plain sight during a business continuity crisis, sometimes producing unexpected surprises. As leaders tackle COVID-19, the Badger thinks ‘true colours’ are being exposed everywhere and the picture they paint of the modern world isn’t pretty.

The Badger decided that a few points captured his opinion on what the pandemic has exposed about the world so far, namely:

  • Modern tech is both a help and a hinderance, but without it and the resilient IT supporting institutions, businesses, individuals and economic activity, things would be apocalyptic.
  • When government, businesses, and people come together to ‘do the right thing’ awesome things of complexity and scale can be achieved in a short time.
    • In the digital age people are more profligate, selfish, impatient and prone to panic than they were 20 years ago.
  • Doctors, nurses, health care and emergency service workers do what we have always known they do – selflessly put patients first.
  • Governmental chief scientific and medical advisers are excellent, clear, and credible (at least in the UK). It is scientists, technologists, engineers and mathematicians who are at the heart of finding solutions to our problems.
  • Which news sources do you trust? Social media and broadcast news appears to dwell on negatives, spin, and those who want to complain about something. Journalists need stories not necessarily facts, but at times like this balance and trustworthiness rather than bias is crucial.
  • Life will be different when the pandemic is over. Public tolerance of globalisation, over-reliance on global supply chains, inaction on climate change, executive excess, businesses that operate with little prudence, and any resistance to ‘working from home’ for sections of society is at a low ebb and will force the hand of politicians over the coming years.

That was a week ago. Would the Badger change anything after another week of lockdown? No. Why? Because the ‘true colours’ of the pre-COVID-19 world are even more evident on a daily basis. Things must change…