Digital Transformation and Data Protectionin Automotive Industry

Av. Özlem Kurt Karayürek, LL.M. – Av. Serter Öztürk, MCSE, MCT

The Digital Enterprise Wave

• B ig Da ta & Ana l y t i c s

• I n t e rne t o f Th ings

• Ar t i f i c i a l I n t e l l i gence

• 3D P r i n te r s

• I ndus t r y 4 .0 . .

«..the "car of the future" will be intelligent, inter-connected and instrumented and will

c o m m u n i c a t e , s o c i a l i z e a n d c o l l a b o r a t e with other vehicles, traffic lights, parking

bays, billboards, (self-tailored ads) and retailers..»

Title and Content Layout with List

• Add your first bullet point here

• Add your second bullet point here

• Add your third bullet point here

• Adop t i ng a new m indse t @ • adding value means considering customer

experience, connectivity & mobility

benefits.

• Age o f Do ing More w i t h Less

Less Time +

Less Cost +

Less Error

= M o r e . .

How the «Auto» Digitally Transforms

• Digital Service Planning - Remote Diagnostics

• Digital Showroom Experience – «Showrooming»

• Customers are using smart apps & gadgets when visiting

• «Info-tainment» : Customers expect their car to be an extension of

their home, office, club etc.

• «..the fear of OEMs is that a car will become a smartphone on

wheels, with cars built around their entertainment value rather

than their hardware value.. P. Fielden – IBM»

• Augmented Reality glasses create new driving experience:

• New Gadgets create a «Want to have and «Want to Use»

feeling!

Today Connected World Presents New Security Issues

• significant new opportunities vs a set of security issues

• requires new ways of thinking that can defend the customers against attackers and privacy abuses

• Executives list cyber-attack vulnerability as their most important privacy concern

• Previously closed & secure dosed systems now offer remote access and control

• Press reports indicate hackers have already breached everything from major corporate databases to thousands of everyday consumer devices

« . . F o r t h e i n d u s t r y t o s u c c e e d t h i s t r a n s f o r m a t i o n , o r g a n i z a t i o n s a n d

c o n s u m e r s n e e d t o b e l i e v e t h a t i t s b e n e f i t s o u t w e i g h i t s r i s k s . . »

OEMs and dealers need to offer new consumer services

« . . t h e f e a r o f O E M s i s

t h a t a c a r w i l l b e c o m e

a s m a r t p h o n e o n w h e e l s ,

w i t h c a r s b u i l t a r o u n d

t h e i r e n t e r t a i n m e n t v a l u e

r a t h e r t h a n t h e i r

h a r d w a r e v a l u e . . »

P. Fielden, IBM

You are already connected !

3 yet reported cases – OEMs have to adequetaly be prepared

• Fiat Chrysler Automobiles recalled 1.4 million vehicles in US over avulnerability in dashboard computers that allowed hackers to disable thevehicle

• White hat hackers broke into General Motor's Onstar system

• White hat hackers plugged into a Tesla Model S to implant malware into thecar's central computer

« . . e s t i m a t i o n s t r a n s p i r e s t h a t 1 0 4 m i l l i o n c a r s w i l l h a v e s o m e f o r m o f

c o n n e c t i v i t y b y 2 0 2 5 . . »

LAW : Updates are needed to secure the risks coming with the new revolution

• This expedited timeline has created vehicles with advanced capabilities but few protections!

• Governments are very sensitive about car safety and cyber security issues. For 2017,

connectivity is already prioritized on lawmakers’ agendas. It is obvious that

the automotive industry’s growth trajectory does not leave much time for reflection.

• Data privacy and cybersecurity will become a strong selling point for car buyers. The key will be

providing a smooth communication in an easy to understand way despite such protective

features .

N e w c a t e g o r i e s o f f i l e s w i l l f o r m i n l e g i s l a t i o n s ; D r i v e r l e s s / A u t o n o m o u s

Ve h i c l e s a n d C r a s h A v o i d a n c e Te c h n o l o g i e s - i n c a s e o f a n a c c i d e n t -

w h o w i l l b e t h e f a u l t y , w h o w i l l b e p u n i s h e d : )

Five Principles of Data Protection in-the-car to which the Industry will Adhere

• Transparency

• Customer Choice

• ‘Privacy by Design’

• Data Security

• Proportionate Use of Data

« . . E u r o p e a n A u t o m o b i l e M a n u f a c t u r e r s ’ A s s o c i a t i o n ( A C E A ) h a s j u s t

p u b l i s h e d t h e i n d u s t r y ’s s t r a t e g y p a p e r o n c o n n e c t i v i t y , w h i c h a d d r e s s e s i s s u e s s u c h a s d a t a p r o t e c t i o n a n d a c c e s s t o v e h i c l e d a t a b y t h i r d p a r t i e s . . »

Automobile LawData Protection in the Car

• Geolocation Information, must be in the form of a warrant or court order or applicable statutory authority;

• Data Minimization, De-Identıification & Retention (..Covered Information should retain no longer than they determine necessary for legitimate business purposes..)

• Data security (.. commit to implementing reasonable measures to protect Covered Information against loss and unauthorized access or use..)

DATA: New Currency or New Headache ? -I

• COMPANIES ARE NOT TRANSPARENT OR RESPONSIVE

• Over half of the organizations surveyed (57%) are not transparent about what they do with personal information collected.

• Most (%61) say they are not quick to respond to customer privacy complaints.

• COMPANIES ARE LAX ON REGULATORY COMPLIANCE

• Many companies struggle to comply with increasing and evolving regulatory requirements around the globe.

• 6 out of 10 companies (61%) do not strictly enforce compliance regulations

DATA: New Currency or New Headache ? -II

• COMPANIES FAIL TO ENGAGE EMPLOYEES

• The ePRl found a majority of companies fail to address the potential risk presented by poor employee education.

• Over half (57%) of companies think their employees do not understand the importance of security and privacy.

• 2 out of 3 companies surveyed do not proactively educate employees on privacy and security issues

• COMPANIES FAIL TO PRIORITIZE

• 53% Believe a data breach would not adversely impact company reputation

• 60% Do not consider privacy and protection of personal information a corporate priority

• 61% Don't have a high level executive managing privacy programs

The Current Situation in Turkey -I

The Current Situation in Turkey -II

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