. 2022 Mar 5;50(6):1299–1323. doi: 10.1007/s11747-022-00845-y

Table 3.

Integrated data strategy framework and case studies

Company and Sources	Tenets and themes	Data Strategy	Effect on Firm Performance
*Facebook* Patterson (2020); FTC (2019); Lapowsky (2019); Shapiro (2019); Weisbaum (2018); Wong (2018)	*Tenets 1 and 2* Data monetization; Data sharing; Privacy regulation; Privacy risks; Customer privacy protection behavior; Firm performance	Facebook extensively monetizes user data through extended data wrapping, such that it provides data analytics-based features to its clients (e.g., advertisers), for example, targeted advertising based on users’ activity, and measuring the ad effectiveness by tracking users’ digital footprints. Facebook shares substantial data with partners such as app developers; it had allowed third-party apps to access data on Facebook users’ friends for years, which led to an infamous scandal in which Cambridge Analytica acquired data on millions of customers to build comprehensive personality profiles without their knowledge in 2018.	Data monetization fuels Facebook’s profitability. In 2018, the value of Facebook users’ personal information was equal to $35.2 billion, or 63% of Facebook’s revenues. However, Facebook has come under scrutiny due to its data practices. After the Cambridge Analytica scandal, Facebook was fined US$5 billion by the Federal Trade Commission, and £500,000 by the UK’s Information Commissioner’s Office for their role in the scandal. The event sparked heated debates about consumers’ privacy rights, prompting policy makers to increase the stringency of data regulations. The privacy scandal resulted in a decrease in overall trust in the company, falling daily active user counts in Europe, and stagnating growth in the US and Canada.
*Apple* Apple (2021); Leswing (2021); O’Flaherty (2021)	*Tenets 1 and 3* Data monetization; Proactive privacy responses; Privacy risks; Firm performance	Apple uses digital technologies to gather and make sense of data for internal monetization purposes, such as optimizing marketing and business performance, developing prediction analytics to improve user experiences, and innovating new products and services. Apple also engages in data wrapping, such as through the Apple Health App, which tracks users’ physical activities and biometrics and create alerts if health issues arise. Apple shares data with partners such as suppliers and app developers. Apple has adopted privacy-by-design principles and used enormous digital resources to develop privacy innovations, such as Intelligent Tracking Prevention in Safari, Privacy Labels on the App Store, and App Tracking Transparency.	Apple performs exceptionally; its revenues soared by 54% to $89.6 billion in the first quarter of 2021. While engaging in monetization practices, privacy initiatives have reduced the perceived risks of using Apple products and positively influenced customer responses. More than two-thirds of Apple customers agree with its privacy policies and 92.6% of Apple users stating they would never switch to an Android. The App Tracking Transparency privacy innovation encourages advertisers to use Apple’s own Search Ad in the App Store, further strengthening the impact of data monetization on firm performance. This data privacy innovation thus is changing industry norms, shaping new customer privacy behaviors, and reinforcing existing data regulations.
*BMW* BMW (2021); Nica (2020); Wilkie, 2020	*Tenets 2 and 3* Data sharing; network effectiveness; firm performance; data privacy regulation; proactive privacy responses	BMW has engaged extensively in data sharing and but imposed strict limits on how those data can be used for monetization. To detect and rectify product defects, it is essential for its partners and suppliers to obtain data assigned to a specific vehicle, on a case-by-case basis. BMW has adopted innovative privacy approaches, including pseudonymization to encode personal information, that establishes smooth procedures while preventing other parties from tracking customers. In 2020 BMW and automotive manufacturers and suppliers, dealer associations and equipment suppliers joined a data-sharing alliance to build a cloud-based data exchange platform.	Data sharing enhances the effectiveness of the business network, which improves BMW’s performance. It can proactively monitor product functions, increase value chain efficiency, and enhance customer experiences. Data sharing enables BMW and its suppliers, to pinpoint production bottlenecks or parts shortages, which can boost in-network effectiveness and the performance of all firms involved. The new cloud technology is designed with privacy and security in mind, allowing European car manufacturers to maintain control over their own data. This initiative helps them formulate effective responses to potential scenarios, such as the coronavirus lockdown that imposed serious pressures on the supply chain.

Company and Sources

Tenets and themes

Data Strategy

Effect on Firm Performance

Facebook

Patterson (2020); FTC (2019); Lapowsky (2019); Shapiro (2019); Weisbaum (2018); Wong (2018)

Tenets 1 and 2

Data monetization; Data sharing; Privacy regulation; Privacy risks; Customer privacy protection behavior; Firm performance

Facebook extensively monetizes user data through extended data wrapping, such that it provides data analytics-based features to its clients (e.g., advertisers), for example, targeted advertising based on users’ activity, and measuring the ad effectiveness by tracking users’ digital footprints. Facebook shares substantial data with partners such as app developers; it had allowed third-party apps to access data on Facebook users’ friends for years, which led to an infamous scandal in which Cambridge Analytica acquired data on millions of customers to build comprehensive personality profiles without their knowledge in 2018.

Data monetization fuels Facebook’s profitability. In 2018, the value of Facebook users’ personal information was equal to $35.2 billion, or 63% of Facebook’s revenues. However, Facebook has come under scrutiny due to its data practices. After the Cambridge Analytica scandal, Facebook was fined US$5 billion by the Federal Trade Commission, and £500,000 by the UK’s Information Commissioner’s Office for their role in the scandal. The event sparked heated debates about consumers’ privacy rights, prompting policy makers to increase the stringency of data regulations. The privacy scandal resulted in a decrease in overall trust in the company, falling daily active user counts in Europe, and stagnating growth in the US and Canada.

Apple

Apple (2021); Leswing (2021); O’Flaherty (2021)

Tenets 1 and 3

Data monetization; Proactive privacy responses; Privacy risks; Firm performance

Apple uses digital technologies to gather and make sense of data for internal monetization purposes, such as optimizing marketing and business performance, developing prediction analytics to improve user experiences, and innovating new products and services. Apple also engages in data wrapping, such as through the Apple Health App, which tracks users’ physical activities and biometrics and create alerts if health issues arise. Apple shares data with partners such as suppliers and app developers. Apple has adopted privacy-by-design principles and used enormous digital resources to develop privacy innovations, such as Intelligent Tracking Prevention in Safari, Privacy Labels on the App Store, and App Tracking Transparency.

Apple performs exceptionally; its revenues soared by 54% to $89.6 billion in the first quarter of 2021. While engaging in monetization practices, privacy initiatives have reduced the perceived risks of using Apple products and positively influenced customer responses. More than two-thirds of Apple customers agree with its privacy policies and 92.6% of Apple users stating they would never switch to an Android. The App Tracking Transparency privacy innovation encourages advertisers to use Apple’s own Search Ad in the App Store, further strengthening the impact of data monetization on firm performance. This data privacy innovation thus is changing industry norms, shaping new customer privacy behaviors, and reinforcing existing data regulations.

BMW

BMW (2021); Nica (2020); Wilkie, 2020

Tenets 2 and 3

Data sharing; network effectiveness; firm performance; data privacy regulation; proactive privacy responses

BMW has engaged extensively in data sharing and but imposed strict limits on how those data can be used for monetization. To detect and rectify product defects, it is essential for its partners and suppliers to obtain data assigned to a specific vehicle, on a case-by-case basis. BMW has adopted innovative privacy approaches, including pseudonymization to encode personal information, that establishes smooth procedures while preventing other parties from tracking customers. In 2020 BMW and automotive manufacturers and suppliers, dealer associations and equipment suppliers joined a data-sharing alliance to build a cloud-based data exchange platform.

Data sharing enhances the effectiveness of the business network, which improves BMW’s performance. It can proactively monitor product functions, increase value chain efficiency, and enhance customer experiences. Data sharing enables BMW and its suppliers, to pinpoint production bottlenecks or parts shortages, which can boost in-network effectiveness and the performance of all firms involved. The new cloud technology is designed with privacy and security in mind, allowing European car manufacturers to maintain control over their own data. This initiative helps them formulate effective responses to potential scenarios, such as the coronavirus lockdown that imposed serious pressures on the supply chain.