Saturday, April 21, 2012

Proof That New EU Privacy Directive Conflicts With Mattersight's Business Model -- From Mattersight, Itself

I've finally been able to directly download public domain .TIFF images -- from the USPTO.gov site -- of the two US patents Mattersight was granted on its business methods. As I've said earlier, these patents are of scant value, in terms of being able to actually preclude competitors from providing similar call analysis services to Fortune 500 clients. [See this post, and this post, for more on that.]

The patent page images are very useful, however, for clearly explaining what it is that Mattersight does, in terms of call-recording, to operate its business. And it is clearer than ever, now that the new EU Privacy Directives will -- in my opinion -- make Mattersight's core business line unworkable in the EU Member-States. Click to enlarge:



Note that each of the highlighted steps in Mattersight's business model will require the "disengagement" of already-collected and analyzed customer data -- if any EU Memeber State citizen decides to opt out of the data, and exercises his or her right to be "forgotten" and "erased" from the Mattersight databases.

That makes for a real problem, in any drive by Mr. Conway, et al., to grow Mattersight's behavioural analytics offering in the EU, proper. And so, Mattersight may be more than fully-valued at $9 per share (current NASDAQ-quoted price), in my opinion.

Do stay tuned.

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