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Google’s strategy unveiled: a little bit of everything you do

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Schmidt’s blind spot is that he does not really see privacy as an issue. He mentions it from time to time; but he is clear that he regards the trade-off, that we give our personal data to Google in return for these cool services, as worth it. I posted a remarkable quote yesterday. Here’s another one, from late on in the address:

"Google will know more about the customer because it benefits the customer if we know more about them."

What Schmidt fails to do is to extrapolate the implications for stuff other than cool services. One is what happens if that huge database is used dishonourably. Another is the huge competitive advantage it gives to Google versus everyone else; Google has this data, but rest of us do not. A third is how that data could be used in ways that disadvantage us. An example is in insurance. Insurance is about pooling risk. The more data insurance companies have about you, the more accurately they can assess the risk, which means a wider range of premiums. If by some mechanism insurance companies are able to analyse Google’s data to assess risk, they can refuse to insure, or charge high penalties, for the higher risks. We won’t necessarily enjoy that, because it means more us may find it impossible to get the insurance we want at a price we can afford.

Google’s business strategy

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