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In an organization, it's human nature to resist change and to stick with the status quo that's often more comfortable and safe. Some of your teammates in your company may be devil's advocates who claim they want what's best for the business while they oppose initiatives for Innovation. As a leader and innovator-in-chief of your company, it is critical to drive the culture of Innovation throughout the organization even in the face of opposition.

I was at an advertising conference last week. Some folks are concerned that privacy advocates will press the government to regulate the most common of tracking technologies: behavioral targeting. That's the system that drops a cookie onto our computers to record many of our wanderings through the Web in hopes of targeting us with relevant ads. I had just written The Next Net, about how we'll be tracked on the mobile Internet. And I was thinking that if behavior targeting worries people, the data cascading from our phone use will terrify them. But there are also plenty of reasons to worry about regulation. First, there's a divide in our society between people extremely worried about erosion of privacy and others who appear, with their Web postings, videos and Tweets, to celebrate it. Which group wins? They both can. Take a look at this new friend-finding location-based application for Facebook, Locaccino. It comes out of Carnegie Mellon. The idea is that people can fine-tune their privacy profiles, deciding who can see where exactly they are, and who gets a blurrier vision, or none at all. The point is that millions of people are clearly eager to exchange all sorts of data. It's a way for them to learn, make friends, find things, and have fun. What's more, it supports a vibrant and innovative software market in a gloom-infested tech industry. Some of the innovation will go toward protecting privacy. Because privacy is something that both sides of this debate want and need, even if they don't agree on what it is. Regulations? The most important privacy regs, in my view, should mandate clear communications on how customer data will be used, and will limit tracking to those who have chosen to participate.

The Air Force is seeking an entrepreneurial innovator to develop technology to analyze the conduct of insiders to determine if they pose a threat to government IT systems. In a call for proposals aimed at small businesses, posted on Tuesday, the Air Force is asking outside developers to "define, develop and demonstrate innovative approaches for determining 'good' (approved) versus 'bad' (disallowed/subversive) activities, including insiders and/or malware." For their initial efforts, the Air Force will pay up to $100,000. The proposal says current techniques that monitor illicit activities only address the most blatant violations of policy or the grossest deviations from accepted behavior. Most systems concentrate their resources on repelling attacks at the network borders with little attention devoted to threats that evade detection and/or emanate from within. The proposal states: "As such, there currently exists a great need across the federal, military and private sectors for a viable and robust means to provide near-real-time detection, correlation and attribution of network attacks, by content or pattern, without use of reactive previously-seen signatures. Many times, these trusted entities have detailed knowledge about the currently-installed host and network security systems, and can easily plan their activities to subvert these systems."

In the 2002 film Minority Report, video billboards scanned the irises of passing consumers and advertised to them by name. That was science fiction back then, but today's marketers are creating digital signs that can display targeted ads based on information they extract from examining the contours of individual human faces. These smart signs are proliferating in commercial establishments and public places from New York's Times Square to St. Louis area shopping malls. They are a powerful innovation in advertising, but one that raises compelling privacy issues - issues that should be addressed now, before digital signs that monitor our behavior become the new normal. The most common name for this medium is digital signage. Most digital signs are flat-screen TVs that run commercials on a continuous loop in airports, gas stations, and anywhere else marketers think they can get your attention. However, marketers have had difficulty determining exactly who sees the display units, which makes it harder to measure viewership and target ads at specific audiences. The industry's solution? Hidden facial recognition cameras. The tiny cameras can estimate the age, ethnicity and gender of people passing by and can track how long a given person watches the display. The digital sign can then play an advertisement specifically targeted to whomever happens to be watching. Tens of millions of people have already been picked up by digital signage cameras. While camera-driven systems are the most common, the industry is also utilizing mobile phones and radio frequency identification (RFID) for similar purposes. Some companies, for example, embed RFID chips in shopper loyalty cards. Digital kiosks located in stores can read the information on the cards at a distance and then display ads or print coupons based on cardholders' shopping histories. Facial recognition, RFID and mobile phone tracking are powerful tools that should be matched by business practices that protect consu

In the 2002 film Minority Report, video billboards scanned the irises of passing consumers and advertised to them by name. That was science fiction back then, but today's marketers are creating digital signs that can display targeted ads based on information they extract from examining the contours of individual human faces. These smart signs are proliferating in commercial establishments and public places from New York's Times Square to St. Louis area shopping malls. They are a powerful innovation in advertising, but one that raises compelling privacy issues - issues that should be addressed now, before digital signs that monitor our behavior become the new normal. The most common name for this medium is digital signage. Most digital signs are flat-screen TVs that run commercials on a continuous loop in airports, gas stations, and anywhere else marketers think they can get your attention. However, marketers have had difficulty determining exactly who sees the display units, which makes it harder to measure viewership and target ads at specific audiences. The industry's solution? Hidden facial recognition cameras. The tiny cameras can estimate the age, ethnicity and gender of people passing by and can track how long a given person watches the display. The digital sign can then play an advertisement specifically targeted to whomever happens to be watching. Tens of millions of people have already been picked up by digital signage cameras. While camera-driven systems are the most common, the industry is also utilizing mobile phones and radio frequency identification (RFID) for similar purposes. Some companies, for example, embed RFID chips in shopper loyalty cards. Digital kiosks located in stores can read the information on the cards at a distance and then display ads or print coupons based on cardholders' shopping histories. Facial recognition, RFID and mobile phone tracking are powerful tools that should be matched by business practices that protect consu

Federal Communications Commission Chairman Julius Genachowski will unveil in a speech on Monday new proposals that would force Internet providers to treat the flow of content equally, sources familiar with the speech said on Friday. The concept, referred to as net neutrality, pits open Internet companies like Google Inc against broadband service providers like AT&T Inc, Verizon Communications Inc, and Comcast Corp, which oppose new rules governing network management. Advocates of net neutrality say Internet service providers must be barred from blocking or slowing traffic based on content. Providers say the increasing volume of bandwidth-hogging services like video sharing requires active management of their networks and some argue that net neutrality could stifle innovation. "He is going to announce rulemaking," said one source familiar with his speech about broadband, to be delivered at the Brookings Institution, a public policy think tank. "The commission will have to codify into new regulations the principle of nondiscrimination." The FCC could formally propose the rules aimed at applying to wireless and landline platforms at an open meeting in October.

"We all know that Internet and communications technology is changing rapidly, creating huge opportunities for business innovation and individual self-expression. Most people are probably not aware, however, that privacy law is not evolving nearly as quickly. It is time to update legal protections to reflect the impact the digital revolution is having on modern life. Cloud computing -- a bit of tech-jargon meaning the use of remote servers to store and process data -- is a great example. The movement of personal and proprietary data off desktop computers and into "the cloud", which is made up of server farms and broadband connections, is a major disruptive trend in computing. Unless our laws change to account for cloud computing and other equally momentous technology developments, the Constitution's protection against unreasonable search and seizure will become a relic of the past. The federal law setting standards for government access to personal communications -- the Electronic Communications Privacy Act (ECPA) -- was written more than two decades ago, before the Internet took off. "

"Drug store chain Walgreens now enables its pharmacy patients to download their prescription history from the Walgreens.com Web site to a personal health record on the Microsoft HealthVault platform. The Deerfield, Ill.-based chain announced last June it would link to HealthVault. Patients registered on Walgreens' site already can access their complete prescription history. Now, that history can also reside in a HealthVault PHR and be automatically updated. Patients can enroll with HealthVault directly from the Walgreens site. The partnership will promote stronger collaboration among patients, pharmacists, physicians and other providers, says Don Huonker, senior vice president of health care innovation at Walgreens. More information is available at walgreens.com/pharmacy and healthvault.com. "

Think twice before giving MicroSoft your personal health care information.

"The Federal Trade Commission will host a series of day-long public roundtable discussions to explore the privacy challenges posed by the vast array of 21st century technology and business practices that collect and use consumer data. Such practices include social networking, cloud computing, online behavioral advertising, mobile marketing, and the collection and use of information by retailers, data brokers, third-party applications, and other diverse businesses. The goal of the roundtables is to determine how best to protect consumer privacy while supporting beneficial uses of the information and technological innovation."

"The ubiquity of online advertising is a product of its importance to the internet economy, said a group of consumer advocates Wednesday during a debate on the future of online advertising. But the impact of new targeted advertising methods on consumer privacy and its potential to manipulate online experiences was the subject of heated argument at the event, sponsored by the Information Technology and Innovation Foundation. Privacy does not mean the same thing to all consumers in all situations, said Progress and Freedom Foundation Senior Fellow Berin Szoka. Advertisements are attempts to capture user attention - the "great currency of the Internet" - and when successful support a wide range of valuable content, he said. But in online life, "consumers have many values," Szoka added. "Privacy is one of them," he said, but it is not an absolute. Consumers must sometimes trade privacy for content, he said. "There is no free lunch." As more information and entertainment migrates to the internet, Szoka said it is "critical…that we find a way to support this media." Targeted advertising can fit the bill, he suggested - especially if technology gives users more control over their own preferences. Most consumers don't understand that advertising is a necessity for today's internet, he said. New technologies like targeting need to be given a try, he said, so content providers can recoup the value of their advertising - down 25 percent since 2000, he noted. Center for Digital Democracy founder Jeff Chester said Szoka's ideas about advertising's future represented a "false dichotomy." The real debate should be over the rules that regulate advertiser content, he said. Chester warned of a "Targeting 2.0″ system in which neuroscience combined with massive databases not only serve ads, but target content to users. "It's about influencing our behavior without our consent," he said. Chester pointed to the subprime lending cr

The federal U.S. Federal Sentencing Guidelines calculator was developed by an innovative lawyer who was looking to develop a tool to help lawyers do the calculation for their clients.

Clayton Christensen first identified the concept of the disruptive innovation in the Innovator's Dilemma. The basic idea is this: a new technology slowly undermines an existing, dominant technology, by starting out cheaper and "worse," then slowly improving until it is a full replacement for the dominant one, but with newer, more flexible capabilities, and usually a lower cost basis. Classic examples of disruptive technologies include the PC (which disrupted mainframes and minicomputers) and desktop publishing (which disrupted the print industry).

Is the price to safeguard America's information systems and networks on a collision course with efforts to rescue the economy? One would hope not, but the $789 billion stimulus package that contains nearly $10 billions for IT-related projects offered very little for cybersecurity. Still, the president sees protecting government and private-sector information systems as crucial to the economic vitality of the country. So, when Acting Senior Director for Cyberspace Melissa Hathaway hands the President her recommendations on securing the nation's information infrastructure later this month, a sharper picture should emerge on how much money the government will need to spend to do just that. What Price Security? The government isn't a spendthrift in protecting its IT networks; it earmarked $6.8 billion a year on cybersecurity this fiscal year, up from $4.2 billion five years ago, according to the White House Office of Management and Budget. But is that enough? Appropriating money to find new and innovative ways to protect our critical information infrastructure doesn't seem to be a government priority, at least not yet. Of the $147 billion the government planned to spend on all types of research and development this fiscal year, only $300 million or 0.2 percent was slated for cybersecurity, according to the Securing Cyberspace in the 44th Presidency report issued by the Center for Strategic and International Studies. By comparison, the budget contained five times as much money $1.5 billion for nanotechnology R&D.

In a world of increasingly savvy and inter-connected customers, an organization's approach to information privacy may offer precisely the competitive advantage needed to succeed. Privacy is essential to creating an environment that fosters trusting, long-term relationships with existing customers, while attracting opportunity and facilitating the development of new ones. Spend the morning with me and nine privacy leaders from major corporations: Intel; IBM; Sun Microsystems, Inc.; Microsoft; Facebook; HP; Privacy Analytics Inc.; Ontario Lottery and Gaming Corporation; Peratech Limited; and GS1 Canada as they present their latest innovations in Privacy-Enhancing Technologies (PETs). You will appreciate how "Privacy by Design" - embedding PETs into the architecture of new systems - protects privacy, without compromising performance or security - a positive-sum not zero-sum outcome.

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There is an old axiom in marketing circles that it costs more money to acquire new customers than to retain and service your old ones. In this precarious financial environment, the focus for many companies is now on keeping the existing customers satisfied, rather than worrying only about adding new ones to the fold. Since the business environment has slowed for now, showing your clients additional "value added" services rather than simply a lower price, for example, will be critical. Companies should be taking an introspective look for differentiating factors in the areas of security and privacy "value," and how they can leverage what they uncover - a competitive advantage. How can an organization best position their privacy and security programs to be used as a competitive advantage? First, of course, you need to ensure that your privacy and security program is robust, well-tested, formally documented and meets or exceeds whatever legislation that your company is subject to or regulated against. It is also important to give your customers a point of reference about the validity of your programs so they easily translate the value into a currency they recognize. Further, you should take advantage of any other internal and external audits, assessments and oversights that you can reasonably share with external parties by crafting the results of these documents as a consumable for external parties. It has been my experience that clients, especially their security teams, really appreciate this effort. Another innovative way to deliver a competitive advantage today is in the realm of vendor management. This discipline is quickly becoming an increasingly high-profile topic of discussion and interest between clients, customers and their service providers. The onus is on you anyway to demonstrate oversight of your third-party service provider(s). This is where you should also have the "value add" conversation and validate why your clients placed their trus

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Chris Nolter Department store proprietor John Wanamaker is famously said to have quipped, "Half the money I spend on advertising is wasted; the trouble is, I don't know which half." The founder of Wanamaker's department store is known as the "father of modern advertising." His innovations, in late 19th-century and early 20th-century Philadelphia and New York, included publishing reliable prices in advertisements, copyrighting pitches, offering money-back guarantees and hiring a full-time writer to produce ad copy. A century later, advertising professionals have gotten more sophisticated and adapted to radio, television, outdoor and digital media. Wanamaker's observation about the value and effectiveness remains profound for merchants and manufacturers, as well as for media outlets that have seen broadcasting or print-advertising dollars reduced to digital pennies. The Internet has made the amount of space that can be filled with advertising virtually infinite, while the recession has all but emptied the advertising coffers of automakers, financial services firms and real estate companies. While digital media has disrupted the traditional ad business, it also presents the tantalizing promise to answer Wanamaker's question. Prior generations of digital advertising gave us spam and banner ads that tempted us with animated mortgage holders wildly dancing on the roof of their home or prizes for whacking a mole. The new proposition is that digital ads will allow advertisers to target audiences and track their returns on investment, and provide users with advertising and content that is more relevant. More than 400 advertising networks have come into existence to sell ad space on the expanding inventory of Web sites and pages. These networks connect advertisers with online publishers, often shopping ad space that a Web site's own sales staff cannot fill. Many of the networks cater to niches, such as food, wine, cars or sports. Increasingly, they are selling access to a

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The Federal Trade Commission today announced that it has approved a Federal Register notice seeking public comment on a proposed rule that would require entities to notify consumers when the security of their electronic health information is breached. The American Recovery and Reinvestment Act of 2009 (the Recovery Act) includes provisions to advance the use of health information technology and, at the same time, strengthen privacy and security protections for health information. Among other things, the Recovery Act recognizes that there are new types of Web-based entities that collect or handle consumers' sensitive health information. Some of these entities offer personal health records, which consumers can use as an electronic, individually controlled repository for their medical information. Others provide online applications through which consumers can track and manage different kinds of information in their personal health records. For example, consumers can connect a device such as a pedometer to their computers and upload miles traveled, heart rate, and other data into their personal health records. These innovations have the potential to provide numerous benefits for consumers, which can only be realized if they have confidence that the security and confidentiality of their health information will be maintained. To address these issues, the Recovery Act requires the Department of Health and Human Services to conduct a study and report, in consultation with the FTC, on potential privacy, security, and breach notification requirements for vendors of personal health records and related entities. This study and report must be completed by February 2010. In the interim, the Act requires the Commission to issue a temporary rule requiring these entities to notify consumers if the security of their health information is breached. The proposed rule the Commission is announcing today is the first step in implementing this requirement. In keeping with the Recover

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As health care providers determine how they will take advantage of the $19 billion allocated in the stimulus package to help jumpstart advances in health information technology (HIT), consumer appetite for electronic health records (EHRs), online tools and services is also growing, according to the results of the 2009 Deloitte Survey of Health Care Consumers (www.deloitte.com/us/2009consumersurvey). While only 9 percent of consumers surveyed have an electronic personal health record (PHR), 42 percent are interested in establishing PHRs connected online to their physicians. Fifty-five percent want the ability to communicate with their doctor via email to exchange health information and get answers to questions. Fifty-seven percent reported they'd be interested in scheduling appointments, buying prescriptions and completing other transactions online if their information is protected. Technologies that can facilitate consumer transactions with providers and health plans, like integrated billing systems that make bill payment faster and more convenient, are also appealing to nearly half (47 percent) of consumers surveyed. The survey of more than 4,000 U.S. consumers 18 and over was released today at the Healthcare Information and Management Systems Society (HIMSS) Annual Conference held in Chicago. It is the second annual study examining health care consumers' attitudes, behaviors and unmet needs conducted by the Deloitte Center for Health Solutions offering health care industry leaders and policymakers a timely look at how health care consumerism is evolving. "Consumers are increasingly embracing innovations that enhance self-care, convenience, personalization and control of personal health information," said Paul H. Keckley, Ph.D., executive director, Deloitte Center for Health Solutions. "Consumers want a bigger say in their health care decisions. Consumer demand for HIT and its potential impact on reforming the system has never been stronger." Despite strong con

A Microsoft-led group set up three years ago has backed away from its original goal of pushing for comprehensive U.S. privacy legislation. Originally, the Consumer Privacy Legislative Forum was set up to bring a diverse array of consumer companies, technology vendors and even advocacy groups together and help drive privacy legislation. But now the group has been renamed the Business Forum for Consumer Privacy and is instead being billed as "an organization focused on fostering innovation in consumer privacy governance," according to the group's new mission statement. The Forum has released a white paper at the International Association of Privacy Professionals conference held in Washington this week. "What the organization is doing is developing the framework that would make new governance possible," said Martin Abrams, an adviser to the Forum who is executive director with the Centre for Information Policy Leadership at Hunton & Williams, an international law firm. Two of the Forum's original members, Symantec and the Center for Democracy and Technology, say they have dropped out. Eastman Kodak has also dropped out, according to Abrams. He was not authorized to say who the current members are, but the group appears to include Microsoft, Hewlett-Packard, eBay and Google. U.S. consumers are covered by a patchwork of state and federal laws that are confusing for companies, and which often force consumers to work hard to protect their own data. Many of the Forum's members would like to change things, but it appears that coming up with legislative proposals was too much.

A leading technology advisor to President Obama said in a research note for his investment firm today that privacy and net neutrality will be among the biggest telecommunications issues facing the Federal Communications Commission and the administration going forward. Analyst Blair Levin, who was the co-lead of Obama's technology and innovation team along with nominated FCC Chair Julius Genachowski, wrote in a Stifel Nicolaus research note that the economic crisis and change of administration will shift the focus of telecom policy away from traditional phone companies to "Internet/edge" players. Indeed, Google and other Web video and voice companies like Skype have been increasingly active in recent years at the FCC, pushing particularly for net neutrality rules that would prevent carriers from blocking or charging more for certain content that travels over the Web. Levin said in a note that net neutrality will emerge again as an issue in the new administration for wireless networks. On the other hand, there won't likely be a push for new net neutrality rules for cable, DSL, and fiber network carriers at the FCC. "(There is a) consensus emerging that disputes about whether a wireline network management tool is 'reasonable' (or is actually blocking or degrading traffic) to be resolved on a case-by-case basis," Levin wrote in the note with analysts Rebecca Arbogast and David Kaut. It would be a tough climb to impose rules that force wireless carriers to open their networks. Apple and AT&T successfully argued to lawmakers and regulators to keep their exclusive iPhone contract. Skype's petition to the FCC to force carriers to allow any handset or software to operate on any network was shot down by former FCC Chairman Kevin Martin. He said the biggest "sleeper" issue will be privacy. With a major overhaul of healthcare records to the Web, the rise in behavioral advertising and cloud computing, where information is stored in computers strung across many geographies

The dark figure of fraud drove the development of best practices at Memolink. I harnessed the fear of the unknown and used basic change management to gather support internally. I knew the approach would indefinitely change how we did business and alter our company's culture. Like many dot coms, my company has an entrepreneurial spirit, and like not-so-many dot coms, we have been in business for 15 years. The culture is well established and the work we do is exciting and fun. Would a company with an innovative and "don't-box-me-in" mentality openly receive a new set of standards and expectations? The implementation of the Best Practice approach required two important change management tactics: consistent messaging and constant and varied communication. It was not enough to tell associates that the proposed transition, which included separating processes that traditionally had been managed by a sales team, would benefit the company in the long term. The main component of the message had to be the "What's in it for me?" value proposition. At the time, the sales associates had nothing to gain, and, in fact, they would lose commission. For example, when my department rolled out the Best Practice approach to partner vetting, fewer partners would meet the standard and be accepted, which meant incremental commission loss for the sales team. Money matters create major stress and tension, so it was important that this conflict be addressed early in the implementation process. Management responded by restructuring commissions so that employee motivations were aligned with business goals. This move also made the adoption period for other processes and procedures shorter and less chaotic. In essence, align the money motivators and people will buy in more quickly. Associates were not reeling about their payment structure, but were they and other stakeholders, who were originally unaffected by the commission structure, truly behind the idea? In order to gain the