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Consumers’ increasing desire to organise their digital content, access it seamlessly from different devices and to store everything in one place is transforming how we live. Introducing connected consumers who demand: To be online, and for their connection to be seamless and integrated across all devices Excellence as standard in terms of available content and user experience Effortless access to content and recommendations, safely and securely Harmonisation of their digital life, cross platformisation throughout their entire digital world These requirements are no longer just for the early adopters and technology enthusiasts. In fact, more than ever, with the continuing popularity of smartphones and other connected devices, this year will be all about bringing the technology to the masses. Here we present five consumer- led trends and their influences on the technology solutions that are enabled by the digital ecosystem. Innovation in devices, mobility and connectivity continue to drive the way we use everyday services, socialise and communicate. HARMONISATION OF DIGITAL LIFE TECH TRENDS Harmonisation of Digital Life

Tech Trends 2012

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Harmonisation of digital life - Innovation in devices, mobility and connectivity continue to drive the way we use everyday services, socialise and communicate.

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Page 1: Tech Trends 2012

Consumers’ increasing desire to organise their digital content, access it seamlessly from different devices and to store everything in one place is transforming how we live. Introducing connected consumers who demand:

• To be online, and for their connection to be seamless and integrated across all devices

• Excellence as standard in terms of available content and user experience

• Effortless access to content and recommendations, safely and securely

• Harmonisation of their digital life, cross platformisation throughout their entire digital world

These requirements are no longer just for the early adopters and technology enthusiasts. In fact, more than ever, with the continuing popularity of smartphones and other connected devices, this year will be all about bringing the technology to the masses. Here we present five consumer-led trends and their influences on the technology solutions that are enabled by the digital ecosystem.

Innovation in devices, mobility and connectivity continue to drive the way we use everyday services, socialise and communicate.

HARMONISATION OF DIGITAL LIFE

TECH TRENDSHarmonisationof Digital Life

Page 2: Tech Trends 2012

Harmonisation of Digital Life

ECOSYSTEM 2.0

This year the shift in focus will be from device platform (OS) to accessing content via cloud-based services. Device and OS are still important but cloud-based services, the user experiences that allow cross-device access to your digital life and digital content, will play a vital role in managing people’s digital life and driving greater loyalty. New entrants to the market, providers who don’t necessarily own an operating system, are presenting solutions to consumers from a cloud perspective and changing the face of the industry.

Mass market consumers are arguably even more demanding than early adopters in terms of needing solutions to work ‘straight out of the box’. Often they are less engaged and less willing to customise and manage the integration of their digital lives themselves. Understanding the needs of these consumers and their expectations of technology solutions is paramount.

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1REACHING THE CLOUD

Redefining ValueConsumers increasingly realise that it’s not just about best price – it’s about best value.

2012 is finally the year that cloud-based solutions will creep into the mainstream. This trend is driven by the ever-increasing use of smartphones, connected devices and other advanced mobile applications, in addition to the vast amount of content that has become integral to consumers lives. As digital content increases consumers will seek services that can dive into their personal data and effortlessly deliver content.

Cloud solutions offer internet-based computing where shared information, software, and resources are accessible on demand. This is an essential development to complement the ecosystem as it facilitates consistent service usage and storage across any device. Cloud computing gives consumers ease of access to all of their information without having to update all devices to one OS.

Future Implications

Most consumers still have a fragmented management of digital content. For these customers simplicity and value are key. This year demand for cloud-based solutions will increase and the industry needs to educate consumers, not just high tech early adopters but everyday digital users, and explain how they can organise their digital lives.

The opportunity to target consumers with cloud-based solutions is not just about shared content; it’s about ease of access. 35% of people globally say they would be prepared to pay more for products that make their lives easier (Source: GfK Roper TrendKey™ 3.1). For cloud-based services, ‘easier’ means running in the background, a service that syncs content without the consumer having to deal with complicated settings or an unreliable service. Most advances in technology are not widely understood and, as such, tech companies need to translate technology solutions into consumer benefits. Cloud-based solutions

will tie consumers into digital ecosystems but we may see the rise of a new business opportunity around the management of digital life for a fee.

The market for cloud-based mobile applications is expected to boom but the big question is going to be usability versus security. Consumers may be willing to pay for peace of mind and guidance thereby providing an opportunity for premium secure and personalised service.

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2EXCELLENCE AS STANDARD

SatisfactionIn a world where consumer is king, they expect to feel like one now and again, and demand royal treatment from companies.

Not only do consumers want to buy perfect devices to access their well-managed, easily-accessible content. They also want consistent high quality and a seamless user experience no matter what the device, where they are or what they are doing. Perceived satisfaction of experiences and services will drive future purchase decisions and, therefore, customer value.

With smartphone penetration reaching new highs and ownership of tablet computers becoming increasingly mainstream, more consumers are accessing content from a greater range of devices. HTML5 can offer a dynamic experience, incorporating visuals, pictures, video and menu systems allowing the user to control their experience of online content as opposed to being pushed through a more traditional linear format. The code also allows developers to create visuals that use the same design, layout, and functionality across different platforms by automatically adjusting to the screen size.

Future Implications

In a world of never-ending new devices, screen sizes and increased cross-platformisation, HTML5 is worth its weight in gold for consumer experience. Even better, it is simple for developers and therefore easily-accessible. It will give everyday consumers the chance to have an excellent user experience as standard, without all the hassle and expense of having to update all of their devices. The introduction of HTML5 has already led to the demise of Flash which has become obsolete in the mobile market.

A further development of HTML5 is the use of the code alongside cloud technology to create app-like functionality for browsers. This is significant as apps continue to be popular and integral to transforming the user experience and driving consideration and loyalty to operating systems, thereby dictating device choice. With these new app stores, smaller players could enter the market to compete with the traditional OS app model.

However, there are some key benefits that come from the traditional app store such as discoverability and seamless ‘push’ notifications. These functions improve the availability of content, the usability of products and services, and most importantly the quality of the experience. Big players will also compete against this model by offering developers greater integration into their operating system in return for not doing web-enabled Web apps.

The high expectations of consumers should not be taken lightly. It is important to remember that we’re all influencers now. 34% of people globally agree with the statement ‘I go out of my way to tell other people about products and services that I really like’ (Source: GfK Roper TrendKey™ 3.1).

The use of blogs, forums and review sites provide consumers with a whole new world of influence. The power of ‘word-of-mouth’ is well-documented but when the message is negative the impact can make or break a product, brand or service in an instance, whether based on fact or not.

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3SEAMLESS EXISTENCE

ExperienceAs consumers become more sophisticated, the focus turns from “what I’ve got” to “what I do.”

The internet has emerged as the key enabler in a wireless ecosystem based on mobile devices being connected to facilitate real-time communication. Data-heavy services providing content & lifestyle offerings are capitalising on this trend, but operators are finding it difficult to manage the increasing gap between data growth and data revenue. The importance of being connected socially and the need to share experience in real-time is a significant driver of augmented data usage.

The importance of being connected socially and having a constant connection has implications for providers. Operators have introduced mobile-to- Wi-Fi roaming as a stopgap until 4G is rolled out which enables automatic switching when a Wi-Fi hotspot is located. This relieves pressure on current networks and provides an improved seamless service in terms of managing that data connection.

Future Implications

Differentiation for operators to monetise the smartphone market has been tough but in the coming months value add will hold the key. There is an opportunity for operators to take advantage of their relationship with the consumer. Offering enhanced data connectivity by subscription rather than by device will be the operators’ business model in the future – one connection for all devices, all access points, whatever the location.

Consumers don’t care about data size, 3G and 4G, switching between Wi-Fi etc. They simply want a seamless service. That’s a big challenge for operators because even 4G may not be able to cope as technology advances, there will always be an upper threshold as data demands continue to grow.

It is not just mobile connections. The desire for fully integrated in-home experience is set to rise this year. 53% of females and 46% of males agree with the statement ‘I enjoy spending a lot of my free time at home’ (Source: GfK Roper TrendKey™ 3.1).

Not only are people using their PC’s in the home but even laptops and tablets are increasingly housebound and used as localised mobile devices, becoming part of the home ecosystem. Developments in internet-enabled TVs are also growing rapidly and they are quickly becoming the fourth screen in the ecosystem of connected devices.

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4RIGHT HERE RIGHT NOW

Instant EverywhereWhat do I want? Everything. When do I want it? Now!

Demand for instant gratification is not a new trend, but advances in technology enabling tailored, instant and relevant information means that expectations are on the rise for instant everywhere. The demand for deals and discounts has also been a widespread trend, no longer a sign of parsimony but something to be celebrated and shared.

A location-based service (LBS) is an information or entertainment service which is accessible through the mobile network and utilises the geographic position of the mobile device. Location adds relevance for users, which is a key consumer trend, and offers a new way to advertise products and services based on location.

Future Implications

LBS will change the way we buy. Impulse purchases won’t be inspired by at-the-counter deals but from technology that provides relevant content to consumers based on geo-marketing. This will be further enhanced by Near Field Communication (NFC), a technology that allows devices to instantly and securely pass information over a short distance, enabling payment by simply ‘tapping’ a reader.

Increasingly advertisers will use location-based services to offer relevant discounts to get consumers into a store. If payment is made through NFC the purchase information is fed back to the provider. This two-way activation of data will mean that rather than just being a mechanism for payments, NFC could also be a data collection tool that holds the key to targeted advertising towards customers offering personalised benefits. However, the main concern for many people will be the detail of the information collected.

Providers will be able to piece together your exact location at any point, your purchase history, your profile, your life every day, every year, and essentially they will be able to map your life.

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5GATE KEEPERS

StreamlinedLess is more for some, but others just want to bring a little order to their cluttered lives.

Future Implications

The trade-off between the consumer advantages of personal data aggregation and the heightened level of ‘intrusion’ will be a growing concern this year. Trusted brands will be in a strong position to balance ease of access and usability with growing security concerns. 37% of the global population agree with the statement ‘It is better to buy well-known brands because you can rely on their quality’. This is particularly true of men. (Source: GfK Roper TrendKey™ 3.1).

Operators may have an opportunity to go beyond data and network connection to realise a whole new revenue stream. By capitalising on their image as a ‘trusted advisor’, and providing the seamless connection consumers so desire, operators will be in a strong position to affiliate with partners who will help to streamline consumer experience whilst providing customers with a safe and secure solution to their digital lives. However, other service

providers, both established and new players in the market, will pose a real threat.

The EU is currently revising its privacy policy and wants to introduce a ‘right to be forgotten’. This could have a significant impact on online companies so consumer privacy issues need to be managed effectively or face strict regulation as well as a consumer backlash.

Consumers increasingly expect a convenient streamlined concierge service – someone to push personalised, interactive content and recommendations. But on the flip side people are also waking up to the reality of how much personal information they store online and the privacy issues it presents. While consumers will continue to embrace seamlessness, many will also place a premium on feeling safe and secure.

The data privacy concern for consumers is that individually, pockets of data with different hosts may feel safe and anonymous (e.g. your bank to hold your personal details, your internet provider to collect online activity, your social network to monitor your behaviour). However, if this information is brought together it paints a rich picture that could potentially breach personal privacy.

There must be an evolution in how customers approach technology as a response to the threat posed by digital footprints to personal privacy. Consumer focus may currently be geared towards content and experience, but security will be a key driver of loyalty in the future. People will eventually want to set permissions with one ‘gate keeper’ to manage their digital lives

Produced by GfK in association with GfK Roper Consulting

TrendKey™ 3.1 is a Roper Consulting product that provides a set of actionable and research-based trends. For more information please contact [email protected]