Developers See the Need for Best Practices in Data Sharing ...

Developers See the Need for Best Practices in Data Sharing & Security Spring 2018 Data Survey of 100+ Developers and Appreneurs Over the past two years the Developers Alliance, a non-profit organization that advocates on behalf of the developer workforce, has demonstrated that the mobile app economy is competitive, stable, mature, and thriving. Developers are an integral part of a complex ecosystem that includes platforms, telecoms, manufacturers, and users, spanning all verticals and industries from broad to niche. It has been barely a decade since the launch of the Apple iPhone; now in the year 2018 the mobile industry has cemented its place in the global economy, with developers leading the way. What used to be considered the Wild West now has projectable outcomes. This is the signature of a matured industry, as it creates incentives for good behavior and consequences for bad behavior. However, the rapidity of growth in the mobile space has resulted in high-profile growing pains, as evidenced by privacy breaches like Cambridge Analytica. The debate over the future of the digital economy has arrived. Developers, who are on the front lines of trends and innovation, are ringing the alarm on what they see in the industry. The Developers Alliance recently launched a survey of developers in our network, and 57% of developers and appreneurs say that the industry doesn’t take the issue of data security and data privacy seriously enough. The lingering question remains: how do we address this?

From March 12 to March 30, the Developers Alliance surveyed 102 developers, CEOs, and others involved in the coding and writing of software in the mobile industry. The majority of responses came from coders working in companies of 50 employees or fewer, though 17% work at companies with over 1,000 employees. Over 40% are CEOs or Founders of their company and another 36% are currently developers. The Importance of Data Sharing in Building Products & Companies As we’ve established in our previous reports on competition within the industry, regulators and policymakers are technologically far behind the current pace of innovation. As a result, it’s more important than ever to carefully weigh the economic consequences of potential actions, which can be far-reaching in such an interdependent ecosystem. It’s not an overstatement to say that regulator overreach could threaten a foundation pillar of the entire industry. One of those pillars is the use of data in the creation of new products and services. Gallons of ink have been spilled on questions like “Is user data a currency?” (clearly it is not), but suffice to say that users sharing data is integral to the mobile industry and any disruption would have monumental consequences. Developers agree – 89% say that shared data is an indispensable part of building a successful product or company.

Given such far-reaching implications, it is understandable why developers are wary of regulation. Our 2016 global survey of developers showed that only 11% viewed government regulation as the best way to handle problems in the industry, with 54% preferring a system of best practices developed and enforced by the industry.

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As one developer responded to us: “Changes have come around due to feedback from developers, but perhaps more important [those changes] have come from commercial pressures they face as an entity in the marketplace.” This remains the most efficient and effective way of discovering sensitivities. For example, the concern over users as being mere targets for advertising has led to a decrease in the use of shared data for monetization purposes. Only 36% of developers report using shared data to sell ads, even as the public perception lingers. Our survey results show other examples of how commercial pressures impact data strategy. An overwhelming majority (82%) say that they are familiar with the regulations regarding using data shared by users. (The remaining 18% may be unconnected to that process, whether they’re a backend developer or not involved in day-to-day coding). When deciding what data to use, around two-thirds (65%) say that they only seek data that they find valuable. Still, 29% still seek as much data as possible – while this approach may lead to unanticipated discoveries and applications for that data, it can bog down developers, overload databases, and erode user trust. We found consensus on the output of data shared by users. Almost all developers report that user data helps them fix bugs and make improvements to their existing products and services. This is the most basic and common use of data – knowing how an app is being used (including the device it is running on, the networks used to connect, and how other tools and apps with which the product interact), provides a bounty of information on how to improve the customer experience. Other common uses include providing detailed customer service (65%), creating new products (63%), and communicating with users (51%). As discussed above, one of the least common uses for data is monetization.

Looking Ahead: Machine Learning and Artificial Intelligence Artificial intelligence and machine learning are rapidly becoming the biggest beneficiaries of shared data. By examining thousands or millions of points of information, AI can identify patterns, draw conclusions, solve complex problems, and generate new data and metadata. These data are

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part user data, part proprietary property, and exemplify the difficulty of creating a broad regulatory framework on the sharing and use of data. Widespread use is a ways off, but around 40% of developers say they commonly use some form of machine learning or AI with the data shared by users. Overall, 58% say they use it “often” or “sometimes,” with only 17% saying they never use the approach.

Other ways that users share data are much more commonplace. The following percent of developers gather data from users in the following ways: ● ● ● ● ● ●

82% from the downloading and use of the app; 81% from data generated by user inputs; 70% from the device and/or browser used to run the app; 49% from the network the device is connected to; 49% from the location of the user at the time of using the app; and 40% from data derived by algorithms, using any or all of the above types of data.

Not only are these methods common, but they are broadly understood by the general public as the mechanism that enables them to use products and services at a low cost (or no cost at all). Developers have strong economic and ethical incentives to build and maintain trust between their products and their users to maintain this dynamic. That trust is maintained in two primary ways: transparency and security. Developers can generate more trust by being upfront about what data their users are sharing and how they use it. With most data being used to fix bugs and improve the product, this is typically non-controversial. Other, more involved methods like machine learning may require a more nuanced approach. However, even in these instances, a developer can still tell users the fact that their data is being

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aggregated and derived for the purpose of product improvements, even if they don’t reveal proprietary secrets on how that process is done. Conclusions In the wake of ongoing debate in the European Union and Facebook founder Mark Zuckerberg’s testimony in front of Congress, it’s clear that the potential for regulation on data sharing has never been greater. Developers see the need for the industry to take the issue more seriously. However, they also recognize that a series of codified best practices can be just as effective as government regulations, and without the potential for massive unintended economic consequences. We believe that developers are in the best position to help create, disseminate, and abide by these best practices. As such, developers themselves are the key to mitigating this issue and creating real change and progress, and should be at the forefront of this discussion. No one knows the risk and pitfalls of data breaches better than those who are in the trenches every day especially the difficulty of earning back consumer trust once it’s lost. The strong economic incentives for building and maintaining trust are a great start, but it’s also true that consumers don’t know what they don’t know – and often when they find out, they can feel uneasy even if no violation has occurred. As a result, we encourage a proactive industry response that is focused first and foremost on transparency. We believe that the marketplace will respond in kind, with consumers responding well and rewarding companies that are the most proactive about revealing when and how they use consumer data. Data drives innovation in the digital ecosystem, providing insights that allow developers to solve complex problems and offer world-changing products and services. We look forward to working with developers, consumers, and policymakers alike to maintain that innovation while offering consumers the protection they expect and deserve.

This report is produced by the Developers Alliance, a non-profit global membership organization that supports developers as creators, innovators, and entrepreneurs. We promote the continued growth of the industry and advocate on behalf of our members on public policy and industry issues. Our membership includes a global network of tens of thousands of developers with diverse skills, expertise, and interests, and hundreds of companies that depend on and work with developers. Learn more at DevelopersAlliance.org

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