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© 2010 Razorfsh LLC. All rights reserved



Technology IS your customer

experience in 2010

As technology continues to become more of a force in our everyday lives, it is clear

that technology is your customer experience. Leveraging that knowledge can help

you innovate in ways you’ve never dreamed of 2010 is the year many technologies

we’ve been watching move from science ction to reality.

The adoption of cloud services and cloud infrastructure will allow us to do more

faster. It used to take six weeks to provision a server; now it will take 15 minutes.

Scaling on demand used to mean having servers sitting around wasting money.

Bringing a social network to your site used to mean months of coding; now you

can do it in hours using Facebook Connect. These cloud services are enabling

applications like never before, whether it’s for your HP printer or new Chrome OS-

based device. Application innovation will come at a blistering pace.

In 2010 we are nally going to see the reality of experiences like those in “Minority

Report.” The gap between science ction and reality has signicantly decreased.

With the release of Windows 7 having multi-touch built in and the Wii leading the

way on new experiences, imagine new ways to delight your consumers with these

technologies in your stores and on their personal computers and other devices.

With the exciting competition going on in mobile brought about from the success of

the iPhone and the introduction of Android, we are going to see mobile be a standard

part of your Web application development. The days of it being nice to have budget

for such efforts are gone. Not only will a cool iPhone application bring marketingvalue, it’ll bring power users—just the zeitgeist you want to tap.

Lastly, Agile makes a comeback in 2010. I know we’ve been talking about iterative

and Agile practices for years, but moving from traditional slow-moving waterfall,

xed-time contracts has been difcult. People have convinced themselves they

can get it all right even before they start using the product. Not only will Agile help

you innovate faster, but it will also help you deliver by leveraging better communi-

cation practices for distributed and offshore development.

Technology can transform your business and this report explores the technologies

that are making that possible. From the opportunities cloud computing presents,

to the innovation Agile processes can produce, these technologies will shape thebusiness landscape in 2010 and beyond.

1





Social brands are enabled through cloud services anddistributed application technologiesShiv Singh @shivsingh & Ray Velez @rvelez

pg 5

Why the Cloud Infrastructure Is Crucial to Your ExperienceTobias Klauder @tklauder & john cunningham @j_j_cunningham

pg 11

Multi-Touch Transforms Retail in 2010Steve Dawson @stevedawson & Luke Hamilton @lhamilton

pg15

Mobile: You Say You Want A Revolution? You got onePaul Gelb @paulgelb & Michael Scafidi @mdscafidi

pg 19

Feeling Agile: in 2010, Its time has finally come for goodJohn Ewen @johndewen & Ray Velez

pg 25 Key trends in 2010 that will change your business

pg 32

3





Social Brands are enabled

through cloud services anddistributed applicationtechnologies

Shiv Singh, VP & Global social media lead, New York &Ray velez, Chief techonology officer, New York

We know for a fact that the most successful brands in 2010 will be the social

brands with social voices operating in real-time. The notion of social voices impliesreal people participating, talking and guiding consumers on behalf of their compa-

nies in an engaging and conversational manner across every consumer touchpoint,

digital or traditional. But a social voice alone is not going to be enough. A key ingredient will be working in real-time across the spectrum. That means

real-time in terms of the campaigns that are launched and executed, the mini- applications that are developed and pushed out, the products launched in response

to changing needs, the targeted consumers and the customer services offered. Cloud services are a necessity to deliver on the promise of social brands. You simply

cannot launch a digital product, run an online marketing campaign cost effectively

or reach new users quickly unless you are using cloud services. Nor can you

integrate your own marketing efforts into the broader social Web without leveraging

cloud services in the same way as Facebook, Twitter and LinkedIn. Why? Because

once integrated, these social applications can drive immense trafc to your digital

product, Website or microsite when you least expect it, resulting in you needing to

scale your infrastructure up quickly and roll out new features to capitalize on the

increased attention.

Social brands will know how to leverage technologies like Facebook Connect to

drive trafc and eyeballs to the brands. Open APIs will help brands get their word

out on platforms like Twitter. Building small distributed applications will make sure

people interact with your brand anywhere they are, whether it’s on an iPhone, Android or HP Printer. While these social cloud services are broad and far reaching,

you do need to proceed with caution.

5



Cloud services power social brands

At its heart, cloud services are made for real time social applications. The cloud

has all the necessary capabilities, it’s open and highly available, and built to handle

unexpected peaks and valleys of trafc. We dene cloud services as open capabilities

available through open API’s or direct access. Everything from Salesforce.com to

Twitter’s open APIs to Google maps fall in the realm of cloud services.

One of the earliest and most powerful examples of cloud services are authentication

services like Windows Live ID or Facebook Connect. These services enable users

to log in and register to any site, without having to re-register. Leveraging their open

APIs, we can integrate them to our site automatically, providing a way for peopleto start sharing the brand. Just years ago, your brand would have had to build this

functionality for each of your sites and ask users to register. Those days are long

gone and with even broader open standards like Open ID and OAuth growing,

locking in to one vendor will potentially go away as well.

Moving past authentication services are the incredibly powerful portable social

graph services. Think of portable social graph services as the ability to pull your

social graph (sometimes called a network) to any branded site that integrates that API. Facebook, LinkedIn, and MySpace are all great examples of cloud services

that let you pull your social identity and social graph to a participating site.

For example, a user logs into your site, posts back to their Facebook wall aboutyour site, and drives three more unique visitors to your site. It can literally put your

brand on the map. People don’t have to search to nd your brand when they can

trust their friends to sell your brand.

Following and responding in real-time helps get your message out instantly. It

creates a mechanism to drive trafc to your site without depending only on people

searching for your keywords or happening upon your display ads.



Without the cloud, real-time interactions would not be available. Twitter’s open API

enables your content to travel across followers’ social graphs instantly. Tapping

into real-time cloud services through open APIs is becoming easier and easier as

standards and capabilities evolve with impressive results.

There are even cloud services to aggregate other cloud services. For example,

Yahoo’s Yahoo Query Language (YQL), allows you to pull together multiple Web

services.. That service can power your application or designed to power any

application. For example, imagine a mashup that pulls from a Twitter list andcombines it with another cloud service from Google Maps. We are just beginning

to tap the possibilities.

Even enterprises that are more tentative than consumers are adopting cloud

services to enable better collaboration across their base. Salesforce.com will likely

launch Chatter, which will better share data with Twitter and Facebook. We use

Yammer a bunch internally, it’s at the point where we need one place to go with

better ltering on microblogging social technologies. Applications like Tweetdeck

will help as well.

Lastly, there’s a key factor that will keep cloud services ahead of the curve. That’sthe ease of change. Since these cloud services are accessed remotely, upgrading

and changing the technology behind the services doesn’t require reaching into

people’s computers—it all happens in one place at one time. This is a strength, but

also a caution for people taking advantage of cloud services.

7



Social brands demand the power of open APIs

Open APIs are catalysts for amazing growth. It may seem like eons ago, but

remember this little phenomenon called blogging. What helped growth to skyrocket

was a very simple idea of an open API called RSS and ATOM that enabled sharing

of lists of content. Without RSS and ATOM, we wouldn’t have blogs.

Adding to that success is another simple idea, called microblogging, fueled in large

part by Twitter and its open API. The Twitter API has spawned over 50,000 different

applications, with many more coming. Open APIs have always been the power

behind innovation and will continue to be. Another great example is Facebook’sapplication API, enabling people to build applications on the Facebook platform. Look to 2010 to bring more and more commerce to the Facebook ecosystem with

innovations like Payvment’s shopping cart service, leveraging Facebook’s open API.

Areas to watch out for

Building on a cloud service is kind of like those trust exercises where you fall

backwards and someone catches you. We can all know what happens when that

person looks away for a second. The point is to avoid depending on one service.

Luckily there are many services to choose from, so in addition to FacebookConnect, consider Windows Live authentication service. The redundancy will help

insulate you down the road.

The same is true with cloud infrastructure. If you put everything on one service

right now, there isn’t interoperability across vendors. This means weak business

negotiation positioning and weak redundancy. When building Web application

architectures, one of the core tenants is two of everything. Efforts like the Cloud

Computing Manifesto and companies like Rightscale will help keep you moving

across the cloud, but it’s not without forethought and planning.



Beware the FTC. With the wholesale changes to privacy that Facebook has been

making without helping users understand the implications, it won’t belong before

the FTC steps in to try and x things. That could mean trouble for cloud services

users. The point is for your site to be clear and transparent with users on how you

are using their data, even if you don’t think they care.

Lastly, be responsive to API upgrades, even if they happen without any notice.

That means your development team needs to follow all the means that companiesuse to announce upgrades, whether it’s following the Facebook Connect blog or

following the Twitter API twits. This is critical—many sites have been burned when

Twitter changed their API. Be ready for those changes because they aren’t going to

ask your permission rst.

•AmazonwillimplementFacebookConnectontheirsite.Seeour

messagetoAmazonaboutthis.

•FacebookConnectbecomesmorepowerfulthanFacebook.com.

FewerpeoplewillgotoFacebook.combecauseit’llalready

beonyoursite.

• Industryleadingcompanieswillleveragecloudservicesenmasse

in2010.

•Brandmanagerswillusethelanguageofcloudservicesand

APIs pushing their IT departments to help them take their brands

real time

key predictions

9





Why the cloud infrastructure

is crucial to your experience

Tobias Klauder, VP Information Technology, Seattle& john cunningham, VP Technology, Europe

Understanding and adopting cloud infrastructure in 2010 will be a necessity to

remain competitive in today’s business landscape. Razorsh has been working

with most cloud infrastructure providers since their inception and is extremely well-

positioned to help you realize the potential that cloud infrastructure offers.

When speaking about cloud infrastructure, we are referring specically to Infrastruc-

ture As A Service (IAAS). Some industry-leading examples of IAAS are Amazon’s

Web Services (AWS), Terremark’s Enterprise Cloud and The Rackspace Cloud.

The biggest reason that you should take a very hard look at when and where to

leverage cloud infrastructure is that you can be sure that your competitors are.

The most efcient IT operations boast a ratio of one administrator per 2,500 servers.

For the vast majority of IT shops, the only way to achieve anywhere near that

level of efciency is to leverage IAAS. While cloud infrastructure ROI will vary, you

can expect a savings of 25 to 60 percent over running the same infrastructure

internally. (Notably, many IAAS vendors are passing the same type of securityaudits (SAS 70 Type II for example) that previously were a barrier to considering

these platforms.)

Time to market is vital, and the ability to procure IAAS is an unprecedented

capability for business. The ability to be agile and have reference and performance

environments that match production up and running quickly and efciently are a

major advantage of cloud infrastructure. Long purchase and procurement cycles,

installation of software, conguration and setup all take time and increase costs

either in terms of additional license dollars or time or both.

These tasks have been shortened from weeks or months into less than a day with

the arrival of cloud infrastructure. Innovation demands the ability to quickly procure

systems, and cloud infrastructure now makes this available at an unprecedented

low price point. What’s even more appealing is that if you want more power, you

11



simply add it and only pay for what you use. If your requirements change, or thepeak passes you can auto scale down to normal or zero operating levels. Once the

job is done, you revert back to your baseline SLA and computing capacity.

It’s worth noting that it is especially important for IT organizations to take thelead on understanding the various cloud offerings and helping their organizationsto leverage the opportunities. If employee’s start to utilize the cloud without IT’sinvolvement, it is likely the company as a whole will lack a comprehensive picture ofwhere data is stored, who is accessing it and lack the ability to ensure compliancewith policies.

Amazon Web Services: Success stories

Here are a few recent examples of how a forward-thinking pharmaceutical, travel,

and communications company have leveraged Amazon’s AWS cloud infrastructureofferings with great success.

Power at your fingertips

A researcher at pharmaceutical giant Eli Lilly and Co. needed to analyse a lot ofdata quickly. If the results turned out, as he believed, the company could have aworld-beating drug on its hands.

First the challenge, the researcher needed 25 servers to crunch the data, and

he knew it could take up to three months to get approval for the investment. Inan industry where the cost of delaying a product is high, $150 per second, threemonths’ wait would be very expensive. The researcher went to an IT guy who’dbeen playing around in this thing called ‘the cloud’. The guy got out his credit card,plugged it into Amazon Web Services, and had 25 servers up and running in thecloud within an hour.

Within two hours, they were crunching the data. The research time had suddenlycollapsed from three months to hours. They completed the task and were given abill from Amazon for $89. At $150 per second, a three-month wait could have costmore than $1 billion.



The ability to be agile

As Virgin’s eet of airliners takes off into the clouds, so does the company’s

new Website: Vtravelled.com runs entirely on the Amazon Web Services cloud- computing platform.

“We’ve undoubtedly saved a lot of time and money that we would normally have

had to spend on setting up, installing servers and maintaining servers,” says Dave

Tharp, head of development on the Vtravelled project. “In addition to this, we’ve

not had to deal with the headache of organizing the hardware – we can just log in

and start up instances as and when we require them.”

AWS also made ongoing development, testing and deployment much easier. “Wewere able to try out major conguration changes separate to the main site and

then switch over, with the ability to switch back, if necessary; normally this requires

the purchase of a lot of additional physical hardware, which was not the case with

Amazon Web Services.”

Is your company ready to take advantage of cloud infrastructure?

13

•Applicationpartitioning(anyonerememberForte?)willmake

itsreturntotechnologyarchitectures.Applicationpartitioning

and hybrid traditional/cloud solutions will enable more

cloudadoption.

•Morebusinesswillbeconductedthroughthecloud.Perhapseven

stocktradingwillgothroughFacebookandTwitter.

key predictions





Multi-Touch Transforms

Retail in 2010

Steven Dawson, technical lead, emerging experiences,atlanta & Luke Hamilton, creative/experience lead,emerging experiences, atlanta@razorfishee

Engaging a customer in a retail environment and delivering an exceptional in-store

experience is becoming increasingly difcult. The use of interactive-touch technology

is an excellent way to attract the customer to the retail environment and deliver a

multi-channel experience while guiding the customer through the purchase process.

The reason behind the difculties in reaching customers is that as the number

of product offerings grows, customers are being faced with increasingly complex

buying decisions.

In addition, the customer experience takes place across multiple channels—many

purchasing decisions start with online research and end at the retail location.

A recent Forrester report noted that less than two-thirds of consumers are

satised when researching product and services on a company’s Website and then

purchasing in store.

Driving Traffic

Delivering simple and engaging interactive experiences is a great way to drive trafc

in-store. Touch technology can be installed in storefronts and deliver simple and

delightful experiences that engage the customer. The use of motion sensors, cameras

and augmented reality can quickly engage a shopper by delivering storefront experi-

ences that react to movement and gestures. These types of experiences are quick and engaging, triggered simply by walking by

a display. The goal is to grab the attention of the task-oriented shopper and drivethe customer into the store, online or to a mobile Website.

15



Recently, Razorsh installed an interactive touch experience in an abandoned

storefront in a mall to help drive trafc into the client’s store. This pilot program was

a huge success and the client saw a measurable lift in store trafc.

Simplifying Buying Decisions Customers are being faced with increasingly complex buying decisions, especially

with technology and services. As a result, increased pressure is being placed on

store associates to provide knowledgeable service to customers. Training store associates about these products and services can be expensive and

ineffective. In addition, the employee turnover rate in retail can have a negative effect

on the number of knowledgeable store associates. In an assisted-sales scenario, the

store associates can focus on being brand ambassadors while the touch experience

provides the information the customer needs to make informed decisions about the

products or services. Our Emerging Experiences team developed the Razorfone application to demon-

strate how an immersive multi-touch experience can assist customers and store

associates with complex buying decisions in a retail setting.

Personalization

Customers expect products and services to be personalized. It is important to

deliver a retail experience that accommodates the customer desire to express

individuality. Allowing customers to personalize and customize their product in the

store through the use of interactive touch experiences is one way to deliver on the

promise of personalization. An additional benet of personalization is combating

buyer’s remorse: A customer leaving a store with a personalized product is far less

likely to return the product. An example of in-store personalization can be found at the recently launched

Microsoft retail stores—customers can create personalized skins for their devices

through an in-store multi-touch experience.

Extending Inventory

Retailers can overcome the issue of limited shelf space by offering their customers

a wide assortment of products through the use of interactive in-store technology.

Touch experiences can help bring the online catalog into the retail environment.

It is important for retailers to create immersive experiences that are “built for touch”



rather than simply running their pre-existing website in-store. Integration of printers,barcode scanners and QR technology can help streamline the purchase process.

For instance, consider the scenario where a customer nds a clothing item that

ts perfectly but the retail location does not have the desired color. The customer

can scan the barcode on the clothing item, select the desired color and print out a

sales slip to bring to the register for checkout. The product is then shipped directly

to the customer.

Delivering Connected Multi-Channel Experiences

Customers are increasingly using their mobile device in-store to access ratings andreviews on products. Applications like ShopSavvy and RedLaser allow customers

to quickly zap the barcode of a product and nd ratings and reviews on their mobile

device. Mobile devices are quickly becoming the “glue” that connects online and

retail experiences. Retailers can capitalize on this trend by embracing touch and

mobile technology to better integrate the online and retail shopping experiences

during the customer experience journey.

Touch experiences that offer value-added content, ratings, reviews and social

integration can be used to assist customers with purchase decisions. Consider

the scenario where a customer is interested in purchasing a movie. However, the

customer isn’t sure which one to choose. Integrating an in-aisle experience that

allows a customer to quickly scan the barcode on a product and access movie

trailers, ratings from their favorite movie critics and recommendations on similar

movies can help the customer make the correct decision. Extending the experience

further, a customer could create a wish list in-store and send it out online via email

and SMS or download it to their mobile device using QR technology.

17

•Anationwideretailerwillhavenewmulti-touchexperiencesin

everystore.Multi-touchexperiencesandseamlesscross-channel integrationarethefutureofretail.

•Windows7willenablemoremulti-touchrolloutsinpublicspaces.

•Multi-touchexperienceswillbemorefun,liftbrand,engage customersanddrivesales.

key predictions





Mobile: You Say You Want aRevolution? You Got One

Paul Gelb, manager, emerging media, new york &Michael Scafidi, technology director, new york

In 2009, industry conferences and trade magazines were preoccupied with a heated

debate about a singular question: Has the iPhone nally ushered in the “Year of

Mobile”?

Arguments in favor cited countless usage and application production growth statistics.

Conversely, arguments against described the iPhone as a fad due to its limited

market share and previous premature exaltations about mobile.

Both sides of this debate are wrong. The narrowly focused logic obscured a slow

convergence of seemingly disparate technologies that, in aggregate, are driving the

latest in a series of technological revolutions.

The impact of a mobile revolution has the potential to reverberate beyond cell

phones, media and marketing to catalyze deep structural economic changes. Fol-

lowing the pattern of the previous technology revolutions, including the computer

revolution and the internet revolution, businesses that leverage these new tech-

nologies effectively and efciently will be the greatest beneciaries. However, rms

that fail to adapt will become casualties of the disruptive change.

Even though the iPhone is just a piece of the mobile revolution, it is undoubtedly a

signicant innovation. The device, the software, the ecosystem it has created and

its small yet rapid user adoption provide the model for new infrastructure and dem-

onstrate how large an opportunity mobile can be for businesses.

However, technology revolutions are often slow to develop, because they require

the aggregation of technologies, development of new operational processes and

new ways to organize businesses.

Despite the advances forged by the iPhone,significanttechnologychallengeslingered.

19



MOBILE TECHNOLOGY-BASED CHALLENGES

Application development

While some brands have developed and launched successful iPhone apps, many

businesses have found developing mobile applications challenging. The iPhone

and iTouch market shares are still limited. It is expensive to develop for multiple OS

platforms and the amount of downloads on non-Apple devices is only a fraction of

the downloads from iTunes. Apple’s application store is highly competitive as any

application must differentiate itself from over 100,000 other applications offered.

Thus many applications with awed concepts or user experiences fail to generate

enough downloads to provide an attractive ROI on the production.

Mobile WAP and browser development

Many businesses have been reluctant to invest in mobile WAP or browser-optimized

sites. The recent growth in usage has coincided with the economic downturn and

resources have been allocated elsewhere. A simple site can be developed inex-

pensively. However, QA across all devices and updating content on an additional

digital channel is time consuming and often costly.

Recent radical mobile technology innovations

have removed limiting factors and broken down

oldassumptions...

TECHNOLOGY-ENABLED REACH AMPLIFICATION AND COST REDUCTION Mobile is rapidly becoming more open, accessible and collaborative as technology

providers are looking to drive growth through sharing and network effects instead

of monopolization.

Open source rendering engine WebKit is used as the rendering engine within Safari on Windows, Mac OS X

and iPhone OS. New web browsers have been built around WebKit, including

Palm’s WebOS (Palm Pre being the rst phone device to carry the OS), Symbian’s

S60 on Nokia mobile phones and Google’s Chrome browser on the web and on

Android Phones

ActionScript 3-based native applications Adobe aims to empower device manufacturers, system-on-chip vendors, content

providers, and service providers to deliver engaging experiences that run

consistently across desktops, mobile phones, and digital home and consumer



electronic devices by leveraging the Adobe Flash Platform. Adobe’s upcoming

release of Flash Professional CS5 will include a Packager for iPhone that developers

can use to publish ActionScript 3 projects to run as native apps on the iPhone.

Nearly all the AIR 2.0 and Flash Player 10.1 APIs will be available to developers.

Adobe Flash was used to develop the South Park application for the iPhone.

Open source cross OS and platform-development tools Appcelerator is an open source application-development tool that enables modular

cross-OS application development from a single codebase. Developers now can

use PHP, HTML, CSS, JavaScript, Python or Ruby to produce at Web developmentspeed. Using Appcelerator’s Titanium platform, developers can leverage existing

skills and open industry-standard technologies to create and commercialize mo-

bile, desktop, net book and Web apps from a single platform, signicantly decreas-

ing both time to market and development costs while increasing exibility and con-

trol. The platform also offers native support for social APIs, including Yahoo YQL,

Facebook Connect and Twitter. Over 12,000 developers have used the platform to

launch applications for Android and Apple. Lone Star Beer and Razorsh’s Holiday

Greeting iPhone applications were developed using the Titanium platform.

Web proxy mobile enablement Useable Net’s fully managed service uses a proprietary proxy to extend any company’s

Web site functionality and content to a customized, dynamic mobile view for mobile

WAP and browsers. Usablenet Mobile dynamically builds each mobile page based on

the exact capabilities of the mobile phone accessing the client’s site. The proxy can

mobile-enable an organization’s entire Web site, and support all features and functions

available on the site, including full e-commerce. UseableNet detects the device

type (make and model), dynamically re-directs to the mobile view and then auto-

optimizes the view for the specic mobile phone. While creative and UX consultative

input is required for aesthetics and user experience, UseableNet has supported

the mobile sites for thousands of brands, including Jet Blue and Crate & Barrel.

This solution has four unique characteristics:

(1) Support for all mobile phones.(2) Zero impact to client IT resources.

(3) Six to eight week implementation.

(4) Ability to mobile-enable all functionality

B2B Web-based mobile site development software Netbiscuits operates the world’s leading B2B Web software platform for the

creation, operation and monetization of mobile Websites. It serves the mobile

21



Internet programs for premium brands such as Yahoo, MTV and eBay, and

leading agencies such as Razorsh and ad networks like AdMob. Globally,

Netbiscuits delivers more than 1.5 billion mobile page impressions each month.

Netbiscuits is available as a Web-based software service, which decreases

development time and costs. At www.netbiscuits.com all tools, interfaces and

mobile-enabling technologies are provided to develop, publish, monitor andmonetize professional mobile Web services.

The platform allows developers to bring content to mobile and create next generation

mobile Websites and services with seamless integration of advertising, media

and commerce features—easier, faster and more cost-efcient than ever before.

Mobile Websites created by the Netbiscuits Developer Community range from

simple advertising landing pages and micro sites to complex dynamic mobile Web

portals with audio/video, social networking, mapping and commerce features.

By leveraging new mobile technologies, creativebusinesses can generate unprecedented benefitsfrom mass consumer engagement on this uniquelyexperientialtechnology.

BENEFITS FROM MASS MOBILE CONSUMER ENGAGEMENT Mobile has nally delivered on the true promise of digital by removing physical

constraints. Improved hardware and connectivity have transformed mobile devices

into cloud-based universal remotes that allow for highly engaging interactions in

real time.

Touch interface

The touch screen not only kicked off this revolution in mobility, but as mobile device

functionality becomes more malleable their inputs will as well. The touch screen is

the key to this exible interface. It will continue to enable applications to innovate

their interface. It allows the user to more directly interact with the content on the

device and provides an adaptable interface for limited screen space. Connectivity to the cloud Always-connected phones are continually reaching to the cloud to deliver con-

text to the mobile user. In the cloud, information services are integrated to deliver

information relevant to the user’s situation. Yahoo’s YQL (http://developer.yahoo.com/

yql/) is making it easier to integrate these services and distribute them in a standard

way. Integrating a users location from the phone with the real estate market, maps,Wikipedia entries and social networks will be powered by services such as this.

Mobile camera Higher quality cameras capable of ve megapixels or higher resolution will not

only allow parents to take better pictures of their kids, they will empower shop-

pers to compare prices while they are in the store. Applications like Red Laser



(http://redlaser.com/) utilize these better cameras to scan bar codes and reach outto the cloud to compare prices. Google Goggles (http://www.google.com/mobile/ goggles/) uses pictures to search the web for landmarks and contacts as well forlogo recognition.

Location and direction For years mobile phones have had GPS and cellular triangulation to determinethe location of the phone, but recently manufacturers have been including digitalcompasses. The addition of a digital compass into phones is more than a tool fortechnophile Boy Scouts. The compass enables the phone to know what directionits camera is facing. Wikitude (http://www.wikitude.org/) was the rst mainstreammobile application to utilize the compass found in the G1 for augmented reality. Asthis functionality becomes standardized pedestrians will commonly look throughtheir cameras at storefronts to see what sales are individually available to them.

Key mobile statistics demonstrating that the mobile revolution has begun • 100,000 applications offered on iTunes as of 09/2009• 57 million iPhone and iPod touch units sold as of 09/2009• 3 billion number of applications download through iTunes as of 01/2010• 3% of shoppers used their phone to make a purchase on Black Friday 2009• 20% of shoppers intended on using their phone to shop during the 2009 holiday

season• 40% of smart phone owners made non-mobile content related purchases in 2009

Key statistics of brands successfully using mobile • $500 million estimated spend by shoppers on mobile application in 2009• $1 million in sales for Pizza Hut through their iPhone application in 2009• 50% of Pandora’s 80,000 daily registered user acquisitions were from

mobile in 2009• 4 of the top 10 iPhone games were developed by EA

23

•Geo-triggeredSMSplatformswillenabledeliveryofmessages basedontheuser’stimeandlocation,significantlyincreasingthe

relevance of message

•CloudcomputingandaugmentedrealityAPIswillexponentially increase the amount and types of information that can be

deliveredthroughmobiledevices.

key predictions





Feeling Agile: in 2010, its time

hasfinallycomeforgood.

John Ewen, Program director, New York &Ray Velez, Chief technology officer, new york

2010 is going to bring about a renewed focus on continuous innovation and busi-

ness benet, lowering costs with distributed teams and better collaboration with

experience, creative, technology. Razorsh’s Agile is ready to show the way.

Agile is built for business benet and continuous innovation

Agile and iterative Web development was built to solve business issues by focusing

on enabling change and learning from real world feedback.

Commonly used waterfall processes assumed that the business would stop changes

when development entered the design process. That’s why commonly used

processes fail—they require business and product owners to lock in decisions

before they start using the technology. It’s an outdated approach based on rigid

manufacturing and not digital exibility and unknowns.

Assuming that innovation stops after the concept and design phase, this approach

locks your business and users away from your product during the build phase.

What is needed for success is an iterative ongoing process, taking a hard look at

the concept and product as designed and continuously innovating.

Business priorities change as users get their hands on your digital products.

Incorporating those changes back into the product as soon as possible builds trust

with your consumers and creates opportunities for innovation. Often, it’s a difcult

reality to swallow, but nothings speaks more loudly than real world analytics. With

studies from respected companies like The Standish Group are showing that 64

percent of designed functionality rarely or never gets used, it’s easy to see that the

big bang approach to building digital products wastes a lot of time and money.

25



Following an iterative approach enables our focus on the highest priority items in

every release with the goal that we never get to the lowest impact, 64 percent. A

constantly changing product backlog will ensure we are continuously reprioritizing. Agile has its roots in constantly improving and innovative processes shown to be

successful by companies like Toyota and their “Kanban” system. Traditional soft-

ware-development processes expect a document to mean the end of innovation,

basically send the document over the wall and hope for the best. Agile processes

have at their heart communication and people. Agile’s four simple principles solve

business needs:

Individuals and interactions over processes and tools Focus on the ability to communicate and review work as opposed to getting

document signoffs. Traditional processes assume rigid change order

processes and documentation. Agile focuses on constant communication

over working software as opposed to low business value documentation.

Working software over comprehensive documentation Since communication is at the heart of Agile, comprehensive documentation

isn’t needed. Light documentation with constant communcation will enable

more business value and ability to change. While some documentation is

always needed, focus on what is absolutely necessary as opposed to detailed

documentation that is out of date before it’s published.

Customer collaboration over contract negotiation This does require extensive customer involvement, but that’s a lot more useful

focus than haggling over whether a feature was in the original statement of

work. With Agile, the customer is prioritizing all potential features at the

beginning of every sprint. Agile won’t build all the features on the list and

that is the value. Why build the 64 percent of features that are never used?

Responding to change over following a plan By breaking up what traditionally would be a six- to nine-month detailed design

and development process into one- to three-week sprints the process allows

for drastic changes in direction. A good example of this is a project we did forFord Motor Co. At the beginning of the project, one of the key features was



responding to high gas prices that soon become a lower priority because

of the falling economy. Using Agile, we were able to respond to that change

without building a wasted set of features around high gas prices.

Lowering cost and making it work with distributed

teams and offshore development

While everyone would like to have the entire team in one room, it’s not possible

these days. One reason that teams often need to work from distributed locationsis the increasing need to leverage the lower rates charged by developers in other

parts of the world. Global delivery and offshore certainly has its cost benets, but

there are other reasons why distributed teams are needed. Computer science

graduation rates have slowly been decreasing over the last 10 years and the needs

have not been shrinking accordingly. That’s only part of your team, with business,

user experience, creative and delivery all likely to be in multiple locations.

Using a process that affords enough communication to ensure success is required.

For teams that are attempting to take advantage of the many benets of Scrum*

while also trying to meet offshoring targets, these initiatives may at rst appear

to be at odds with one another. However, when you consider some of the most

important components of successful offshore relationships, the principals of Scrumalign very well.

Communicate, communicate, communicate

The rst thing many project managers will point to when discussing working

with offshore teams are ways to stay in touch as continually as possible. E-mail,

IM, video conferencing, conference calls and collaboration tools all have their

role, but at their core needs to be clear communication in which everyone on the

team knows what they need to do and everyone else knows what they are doing.

Two core tenets of Scrum that help tremendously in these areas are the sprint

backlog and the daily stand-up. An updated sprint backlog, preferably hosted

so a real-time version is available to all team members at all times, keeps theentire team up to date on what everyone else is working on. Not only does this

help from a management perspective but also helps the team know exactly who

to contact to troubleshoot problems, offer assistance or take over work if other

issues or needs arise.

Scrum is a set of guidelines and processes for managing complex projects often

used in Agile development. 27



The daily stand-up, possibly the most borrowed component of Scrum, gives the

team the chance to not only know what everyone is currently working on, but

what was accomplished the previous day, what the members of the team have

planned and if there is anything preventing them from completing their work.

Ensure that requirements are clear, work is reviewed frequently and that

issues are resolved quickly Hand in hand with communication is ensuring that rapidly changing

requirements are understood by the team at all times. Waiting for

documentation to be updated or waiting for time with the stakeholders

to communicate changes to everyone involved often comes at theexpense of development efciency.

Sprint Planning at the beginning of each sprint or iteration ensures that the

team has the time not only to plan the work that will achieve the desired out

comes, but also gives the team time with the Product Owner to clarify

requirements and solve potential issues early.

Another risk associated with working with offshore resources is potentially

not knowing the quality of the work until it is completed—when it’s too late.

Scrum not only divides the development cycle into small enough units to help

mitigate this risk, but it also provides within its core processes a way to handle

those situations upon review of functionality. If the acceptance criteria is notmet, the issue is returned to the backlog to be addressed in the next sprint.

When the approach isn’t working, change it Successful project approaches maintain enough exibility to change over

time to leverage new ndings and team strengths. This is especially true

when working with offshore resources when the developers may be new to

the organization or process. Scrum provides recurring reviews of not only

the work, but the process.

Sprint Retrospectives allow the team to highlight what is working well

and what needs improvement. These improvements, when they can be

implemented, can have an enormous impact on the team’s productivity.

Changes can bring about a better way to accomplish something, but

they can also signicantly raise morale when team members know that

feedback is valuable.



Solutions to these common challenges can be found through a variety of

approaches, methodologies and processes. However, avoiding using Agile

methods such as Scrum when the team is distributed around the world is not

necessary. In fact, it might turn out to be the best option available.

Aligning user experience, creative anddevelopment - the Razorfish Agile approach

Aligning Design and Development

The Razorsh Agile approach is a recommendation for incorporating the Agile

methodology within a consulting-based project framework. It allows for a period

of project denition and contract negotiation, a visioning phase where the project

strategy is dened and nally, the iterations for designing and building the product.

The following diagram represents a sample schedule for these activities: During the Foundation sprint, while the core technology tasks are being performed

(infrastructure code, environment set-up, etc.), the design team is establishing

the visual design language and sketching the wireframes that correspond to the

29

sow phase

1-4 weeks

Visioning phase

6-12 weeksfoundation sprint 1 sprint 2 sprint x

agile build phase

4 week sprints



highest prioritized user stories. This allows the design team to establish the

headstart needed to ensure that the build team has the elements needed for

subsequent sprints. Maintaining this pace produces the desired cycle of design

leading development but allowing development to inuence design.

Iterative Design

One of the biggest challenges of adopting an iterative project process is removing

enough of the traditional patterns to realize all benets. The ability to “release early

and often” requires that the product be able to provide value at stages previously

considered “incomplete.” In other words, if the outcome of a sprint requires addi-

tional sprints before the product functions, then you may not ultimately release anyearlier. One part of the process that must adapt to prevent this from happening is

the product design.

Products are designed with a particular end state in mind. They adhere to a vision

of ultimate value. But what happens when the vision changes, the product must

release earlier or the project loses funding? The approach used to reach that vision

will largely dene the success of the project. Ideally, the sequence of the product

design activities will allow the work that has been completed to remain viable.

When a product is designed in phases, related features typically are grouped and

designed concurrently. But if you can’t release a product with only one phase com-

plete then you’re committing the process to a lack of interruption that might not

be sustainable. But what if that phase stretched across all critical features? This

approach allows the product to be released at the completion of any phase. The full

vision of functionality will not yet be realized, but it can be added over time.

In the spirit of Steve McConnell’s “Cone of Uncertainty,” we’ll refer to this process

as the Cone of Complexity. When the product is divided from simplest to

most complex, rather than by feature, the benets of an iterative process can

really materialize.



simplest

functional

state

intermediate

state

desired

end

state

The clearest benet to this approach is that features are more likely to be com-

pleted by the end of a sprint. This allows for several highly desired benets:

1. Ability to release early.

2. Ability to release more frequently.

3. Ability to test the product with users in time to inuence subsequent design cycles.

4. Opportunity to evolve the vision of the product as functionality comes to life.

5. Opportunity to only build what is valuable instead of what is designed.

This last benet is really the culmination of the others. When a product can be

used, tested, refactored and conform to an evolving vision, then the likelihood of

only building what users need and want increases substantially.

31

•Agilewillpushbusinessestothinkofsoftwaredevelopmentasa solutiontoinnovation.

•TherewillbegreaterAgileadoptionbyoffshoredevelopment shops,enablingglobaldistributivedevelopment.

key predictions



Technologyisagamechanger–notjustanenabler.Ifyou’reaCMO,you’reembracingthissimpletruthorpreparingforanothercareer.

The technologies discussed in this report are leading the way t0businesstransformationin2010andbeyond.BasedonthefindingsofRazorfish 5, Razorfish predicts the following:

Cloud services will be everywhere

• Amazon will implement Facebook Connect on their site. See our message to

Amazon about this.

• Facebook Connect becomes more powerful than Facebook.com. Fewer people

will go to Facebook.com because it’ll already be on your site.

• Industry leading companies will leverage cloud services en masse in 2010.

• Brand managers will use the language of cloud services and APIs pushing their

IT departments to help them take their brands real time

The cloud will be a crucial business tool

• Application partitioning (anyone remember Forte?) will make its return to

technology architectures. Application partitioning and hybrid traditional/cloudsolutions will enable more cloud adoption.

• More business will be conducted through the cloud. Perhaps even stock

trading will go through Facebook and Twitter.

Multi-touch will transform retail

• A nationwide retailer will have new multi-touch experiences in every store.

Multi-touch experiences and seamless cross-channel integration are the

future of retail.

• Windows 7 will enable more multi-touch rollouts in public spaces.

• Multi-touch experiences will be more fun, lift brand, engage customers and

drive sales.

Mobile will continue its revolution

• Geo-triggered SMS platforms will enable delivery of messages based on the

user’s time and location, signicantly increasing the relevance of message

• Cloud computing and augmented reality APIs will exponentially increase the

amount and types of information that can be delivered through mobile devices.

Agile will boost innovation

• Agile will push businesses to think of software development as a solution

to innovation.• There will be greater Agile adoption by offshore development shops, enabling

global distributive development.

Technology is innovating rapidly, and we encourage you to continuelearning how these advances will impact your business. A great place to start would be a conversation with Razorfish’s ChiefTechnologyOfficerRayVelez,@rvelezonTwitter.

Inthemeantime,getreadyformoretransformation.

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this now!









About RazorfshRazorsh creates experiences that build businesses. As one of the largest interactive marketing and

technology companies in the world, Razorsh helps its clients build better brands by delivering business

results through customer experiences. Razorsh combines the best thought leadership of the consulting

world with the leading capabilities of the marketing services industry to support our clients’ business

needs, such as launching new products, repositioning a brand or participating in the social world. With

a demonstrated commitment to innovation, Razorsh continues to cultivate our expertise in Social

Inuence Marketing, emerging media, creative design, analytics, technology and user experience.

Razorsh has ofces in markets across the United States, and in Australia, China, France, Germany,

Japan, Spain and the United Kingdom. Clients include Carnival Cruise Lines, MillerCoors, Levi Strauss

& Co., McDonald’s and Starwood Hotels. Razorsh is part of the Publicis Groupe (Euronext Paris:

FR0000130577) VivaKi organization. Visit razorsh.com for more information. Follow Razorsh on Twitter

at @razorsh.

For Additional Information:

Raymond Velez

Chief Technology Ofcer

+1 212.798.6610

[email protected]

@rveleztechnologies.razorsh.com

Media Inquiries:

Katie Lamkin

Public Relations

+1 312.696.5241

[email protected]

@ktlamkin

Thought Leadership:

Lauren Nguyen

Marketing Communications

+1 415.369.6454

[email protected]

@ltnguyen

Design:http://www.fresh-sf.com

Europe

neue-digitale.com

@neuedigitale

Berlin +49 (0) 30 2936388 0

Frankfurt +49 (0) 69 704030

London +44 020 7907 4545

@razorshlondon

wysiwyg.net

Madrid +34 91 308 11 30

duke-interactive.com

@dukerazorsh

Paris +33 (0) 1 53 44 19 00

Asia/Pacifc

Hong Kong +852 3102 4512

Shanghai +86 21 5237 8811

amnesia.com.au

@amnesiash

Sydney +61 2 9380 9317

dentsu-razorsh.com

Tokyo +81 3 5551 9885

Osaka +81 6 6360 1461

United States@razorsh

Atlanta +1 678.538.6000

Austin +1 512.532.2000

Chicago +1 312.696.5000

Los Angeles +1 310.846.5400

New York +1 212.798.6600

Philadelphia +1 267.295.7100

Portland +1 503.423.2900

San Francisco +1 415.369.6300

Seattle +1 206.816.8800



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