INNOVATION TRENDS SERIE

WEARABLES

REVOLUTION TRENDS

MOBILE: NOW

YOU WEAR IT

01 Much more than just work gadgets 03

Wearable devices

in banking

04 INFOGRAPHIC

The rising value

of wearables

05 CASE STUDIES

Companion to chronic patients

02 Millennials, potential customers

Wearables, much more than just work gadgets

01

Over seven out of ten people believe there is at least one

benefit to using some type of technology at work… but what

about wearable technology? ( )

Efficiency. Productivity. Safety.

These are not only three of the pillars of the workplace but also three

of the areas where wearable technology can benefit the workers that

use them, according to data collected by the Workforce Institute at

Kronos Incorporated and Harris Poll after conducting a questionnaire

to find we are using this wearable technology in our everyday work.

INNOVATION TRENDS SERIE · FEBRAURY 2015 · www.centrodeinnovacionbbva.com/en

“There’s a strong belief that wearable

technology will take off in the workplace before

the home because devices such as smart

watches and even fitness and health monitors

can provide organizations with uncharted data

collection points to greatly improve safety,

productivity, collaboration, and overall

workplace effectiveness”, notes

We can therefore say that wearables are a new opportunity

to obtain data about a worker's daily routine, so if the

company analyzes these data (Big Data analysis), you can

improve the output and efficiency of that routine ( ).

Joyce Maroney,

director of Kronos'

Workforce Institute.

INNOVATION TRENDS SERIE · FEBRAURY 2015 · www.centrodeinnovacionbbva.com/en

Security and privacy

Workflows and productivity can

be measured using the data

collected from wearable

devices worn by the workers.

This application is considered

by many to be invasive, as

corporate policy is somewhat

unclear, and there are no

processes in place to protect

both the employee's privacy

and the company's security.

This is the balance that has to

be achieved.

In fact privacy and possible

security failures are the two

main concerns when asked

about the "buts" of this

technology. 44% of US workers

questioned by the Workforce

Institute consider that privacy

could be a issue, whereas 35%

believe there could be security

failures that make the use of

these devices a problem.

But let's take a look at the data

found by this survey:

Use of wearables at work

Fuente: The Workforce Institute at Kronos “Wearables at Work” survey

Over seven out of ten

respondents believe that

wearables could benefit or

improve their work. Many

workers agree that it could help

them achieve the much desired

balance between personal life

and work and even favor

collaboration and "friendly"

competition in workplace ( ).

INNOVATION TRENDS SERIE · FEBRAURY 2015 · www.centrodeinnovacionbbva.com/en

According to the data shown

in the graph, the potential of

this type of technology is clear,

as many of the respondents

mention improved efficiency

and productivity and improved

safety among the benefits they

find when using these

wearable devices in the

workplace.

Safety is one of the most

commonly mentioned reasons

for using this technology,

particularly in countries like

India (56%), Mexico (54%) and

China (49%). However

improving profitability,

competition and customer

experience and satisfaction are

other reasons for using this

type of wearable device.

What are the leading devices

in the workplace?

Headphones, watches and

armbands or smart

wristbands are the three types of

wearable devices considered most

useful at work.

Although there's something for

everyone… Around 20% of

workers in the US, United

Kingdom, France and Germany

believe that they would find

smartwatches useful at work,

whereas this percentage is higher

in China (56%), India (49%),

Mexico (40%) and Australia (33%).

Among the main benefits to be

obtained with these devices is

a improved attendance at

of workersfind smartwatchesuseful at work.

INNOVATION TRENDS SERIE · FEBRAURY 2015 · www.centrodeinnovacionbbva.com/en

devices like Fitbit promote

exercise and enable data

tracking, for example to

correct a worker's posture at

their workplace or suggest

using the stairs to get more

exercise after a certain

number of hours sitting down,

or eating something healthy

after a few days of fast food.

The company can reward the

healthiest decisions.

Source: Techcrunch and The

Workforce Institute at Kronos

“Wearables at Work” survey. This

online survey was sent to

respondents aged

over 18 in Australia,

China, France,

Germany, India,

Mexico, United

Kingdom and

United States..

meetings, based on analyzing

people's preferences and habits

from data collected with the

wearables.

For example, another use being

made of this real-time

information and the analysis

extracted from the devices is

the improvement in the process

of integrating employees in new

departments by providing them

with orientation and training

manuals preloaded in a device

which is issued to the employee

and adapted to their needs.

And naturally wearables related

with health and sport are also

winners at work. Taking care of

their employees' health is vital

for a company that wishes to

reduce absenteeism, and

INNOVATION TRENDS SERIE · FEBRAURY 2015 · www.centrodeinnovacionbbva.com/en

The Millennials, potential customers of wearables

02

Although many people have already bought or

used wearable devices, the truth is that most

admit they soon stop using them. That is why the

market is looking closely at the so-called

Millennium generation (aged between 18 and 34):

they are the consumers who could provide the

final breakthrough in the use of wearables.

Wearables are a (r)revolution of the mobile trend that

has in recent years has seeped into practically all the

socioeconomic sectors. These wearable devices are a

step beyond smartphones and mobility: they mean

carrying this mobile technology on you, whether

as a watch, a bracelet, an item of clothing or even

as contact lenses...

And those who are driving its use are young

people from the millennium generation (aged

between 18 and 34), who want to be different and

to test all the technologies available, such as 3D

and wearables. These are two examples they are

prepared to include in a variety of environments in

their everyday life and use them to the full: from

work to leisure time and entertainment.

INNOVATION TRENDS SERIE · FEBRAURY 2015 · www.centrodeinnovacionbbva.com/en

In fact, 7 out of 10 say that they will buy a

wearable device. And one of the main reasons

why they are destined to become potential

customers for these devices is that they are more

inclined to share personal information, so their

barrier to intimacy is much lower.

"The traditional thinking is that consumers would

never agree to share information like location, with

brands and the like, but this research shows that

consumers, particularly the millennials, would

share their location and much more," insists Luis

Felipe Rincón, managing director of

Wearables.com, following the publication of the

study The Unexpected State of Consumer

Wearable Technology.

According to the research data, these young

people feel much more comfortable sharing

information anonymously with the government

(40% vs. 25% of other adults), anyone on the

Internet (35% vs. 20%) and their employer (30%

compared with 16%).

INNOVATION TRENDS SERIE · FEBRAURY 2015 · www.centrodeinnovacionbbva.com/en

These data may be key for pushing big companies

to these devices, as they can become a business

opportunity on which advertising has already set its

sights. In fact, wearables are expected to be a

turning point for the new mobile advertising: better

targeted advertisements thanks to the data offered

by these devices about how their owners use them

and their habits in specific activities, such as sports,

games, consumption of entertainment... And it is

the millennials who are the targets of this type of

advertising of the future.

That is why one of the answers that all those

involved in the world of wearables want to know is

how to boost the use of wearables. A study by

PwC, Wearable Future, asked the millenniums for

the keys that would make them increase their use

of these kinds of devices.

INNOVATION TRENDS SERIE · FEBRAURY 2015 · www.centrodeinnovacionbbva.com/en

Media and leisure:

These devices offer a more

immersive and fun experience

in leisure activities. In this case,

79% of the expectations had

high expectations in the leisure

factor, such as more visual and

attractive games. It is not a

case of creating new genres,

but rather of improving the

gaming experience in existing

ones.

Social media:

The interaction between

wearable devices and social

media profiles is one of the

keys to their boom among the

millennials, as it allows them to

update their profiles in real

time.

Information in real time:

If you use your wearable device

for exercise, to follow a diet or

access medical records, one of

the advantages of this

technology is that it offers this

type of information through an

improved, simpler and more

attractive user experience.

Loyalty:

if the devices had applications

that rewarded their use, the

millennials believe they would

increase the frequency with

which they used them.

And the reasons these users give

for showing their enthusiasm

for devices of this kind are:

Safety: 9 out of 10

consider that wearables

can offer the safety many

people are looking for

Healthier living:

8 out of 10 firmly believe

that with the help of these

devices they can eat

healthier and do exercise

smarter

Simplicity: 8 out of 10

cite this quality in

wearables: they are

simpler to use than other

types of technology. .

INNOVATION TRENDS SERIE · FEBRAURY 2015 · www.centrodeinnovacionbbva.com/en

The first steps for wearable devices in banking

03

The mobile aspect is the current fashion trend in banking 2.0: the

apps already available in the iOS and Android stores allow us to

perform all kinds of procedures and transactions from our

smartphones, but the push by technology companies for such

services is outstripping the boundary of smartphones and tablets,

bringing banking to the next step: wearable devices.

According to Juniper Research,

100 million wearable devices will

be manufactured per year by

2017, including glasses,

bracelets and smart watches,

among others. And the banking

sector has already turned its

attention to this market.

First applications for

wearable devices

While awaiting the arrival of

the Apple smartwatch (which

could be a turning point in the

implementation of

wearable banking), companies

such as the Australian Westpac

or the US firm Wells Fargo are

already working with

software for Google Glass, and

PayPal PayPal launched an app

for the Samsung Galaxy Gear 2

during the summer. Several

months beforehand, eBay had

launched another app for this

model that made it possible to

buy and sell items from

anywhere. The case of the app

INNOVATION TRENDS SERIE · FEBRAURY 2015 · www.centrodeinnovacionbbva.com/en

being developed by Westpac

New Zealand is much more

interesting. It will allow Google

Glass to access information on

special offers as you move

around establishments as well

as check your bank balance on

the fly by using peripheral

vision.

If banks are already preparing

for the wearable market, it is

because they believe that the

growth of banking in this niche

could be much faster than that

seen in mobile banking and, of

course, online banking. An

example is the case of Wells

Fargo that was reported

by The Wall Street Journal: the

bank took 12 years to reach 10

million active users for its online

banking service, while it has

only taken six years to add the

same number of mobile users

Apple's disruptive innovation

According to the Mongan

Stanley executive and specialist

in Apple, the company expects

to sell between 30 and 60

million smartwatches in their first

12 months on the market, some

estimates that could increase if

the outlook for wearable banking

continues to progress.

Furthermore, in a kind of

'virtuous circle', this new device

could drive the mass adoption of

this new channel of banking

services.

Apple already knows what it is to

boost mobile payments: in the

first 73 hours after launching its

service in Apple Pay users added

data on a million credit cards to

the platform.

INNOVATION TRENDS SERIE · FEBRAURY 2015 · www.centrodeinnovacionbbva.com/en

If we analyze this phenomenon

in perspective, we cannot

forget that wearable devices are

only a part of a much greater

revolution – the Internet of

Things –, which is capable of

revolutionizing the use we give

to our data in real time... and

we cannot forget the fact that,

so far, banking has been one of

the main data repositories, but

also one of the least likely

players to do something

innovative with that data,

because of a combination of

external elements (legal

regulation) and internal

(mentality of the sector). But this

is a status quo that consumers

will no longer put up with once

they see the advantages of

"quantified self" in many other

more dynamic sectors.

It is all part of the Internet of Things

INNOVATION TRENDS SERIE · FEBRAURY 2015 · www.centrodeinnovacionbbva.com/en

Wearable devices are

just another form factor

for smartphones.

Consumers will quickly

embrace these devices

without the need to

educate them on the value

they bring.

First to market is a can't-

miss winning formula.

Power consumption

will not be a big issue. Wearable devices

are secure.

In an Accenture study several misconceptions about wearable

devices were identified, which are all widespread in several sectors,

including banking. The most noteworthy include:

Myths about wearable technology

INNOVATION TRENDS SERIE · FEBRAURY 2015 · www.centrodeinnovacionbbva.com/en

The rising value of wearables

04/INFOGRAPHIC

Is it just a fashion trend or will be a now mobile revolution? The wearable devices

begin to be gradually in some of our daily uses: at work, doing sports or playing, in

health centers ...

Map wearable

devices uses

For work uses

For personal use

Share Pinterest

INNOVATION TRENDS SERIE · FEBRAURY 2015 · www.centrodeinnovacionbbva.com/en

Wearable devices uses

Users value more the followings advantages

Advantages

Make us more efficient

Help us get more out of our time

Relieve stress

Improve customer service

Strengthen my connection

77%

76%

74%

72%

72%

While users show the following drawbacks

Drawbacks

Vulnerability to security breaches

Invade my privacy

Hurt our ability to relate humans

Dependence on technology

86%

82%

72%

68%

INNOVATION TRENDS SERIE · FEBRAURY 2015 · www.centrodeinnovacionbbva.com/en

This year we buy

If you buy a wearable this year, what device would be?

… although people sceptic do not

think they’ll actually use these products:

Consumer

willingness to

adopt wearable

tech when

INNOVATION TRENDS SERIE · FEBRAURY 2015 · www.centrodeinnovacionbbva.com/en

Patient

monitoring

Wearables can improve

Improved access

to medical

information

Higher clinical trial

participations

More accurate

diagnosis

Improve customer

experience

Improved payments

Improved loyalty

programs

More targeted advertising

health retail

INNOVATION TRENDS SERIE · FEBRAURY 2015 · www.centrodeinnovacionbbva.com/en

The potential of wearables as a companion to chronic patients

05/CASE STUDIES

Wearable devices like smartwatches and wristbands have found a

goldmine in the sports and health sector. These accessories that are

able to constantly monitor the user's physical activity can be extremely

valuable to people who suffer from chronic diseases like diabetes.

Diabetes is a chronic disease that affects more than 347 million people

all over the world, according to the World Health Organization. It is

calculated that this figure will skyrocket to 592 million in the next 20

years, as sedentary lifestyles and poor diet are the main causes of the

disease. In Spain there are more than 5.3 million diabetics and 25,000

people die each year from the disease, according to the Spanish

Diabetics Federation (FEDE). Diabetes, along with obesity ( ), is one of

the great pandemics of the 21st century ,

INNOVATION TRENDS SERIE · FEBRAURY 2015 · www.centrodeinnovacionbbva.com/en

This ailment can cause damage

to the heart, blood vessels,

kidneys and nervous system.

Sufferers need to monitor their

levels of blood insulin and their

blood pressure. They also need

to follow a healthy diet, watch

their weight and take regular

physical exercise.

According to a report on ICT

and personal health published

by the Telefónica Foundation in

2013, tools to monitor health

are set to become the key to

“raising awareness among the

population that the evolution of

their health is in their own

hands”. The document

sees wearable devices ( ) as a

major step forward in controlling

chronic health problems such as

diabetes and hypertension.

Diabetes is a disease that appears

when the pancreas does not

produce sufficient insulin, the

substance that regulates the

quantity of sugar in the blood.

Failure to control the amount of

sugar in our organism

produces hyperglycemia, which

can ultimately affect many of our

organs. This is the reason it is

essential for diabetics to monitor

their glucose levels frequently.

The report highlights that thanks

to its connectivity with

smartphones this technology

enables patients to monitor their

condition much more effectively,

and even to automatically send

alarms whenever necessary. It

also points to the usefulness of

this technology for reminding

patients when they need to

receive treatment, as one in

every three diabetic patients

occasionally misses a dose of

medication. These devices

include particularly

the glucose meters Glooko

and iBGStar, that are

synchronized with an app on

your cell phone.

INNOVATION TRENDS SERIE · FEBRAURY 2015 · www.centrodeinnovacionbbva.com/en

Google lenses

Recent months have seen the

appearance of a number of

other wearable technology

projects aimed at diabetics. The

most widely publicized thanks

to their futuristic design

are Google's lenses. In July

2014, the search engine

announced an alliance with the

pharmaceutical company

Novartis to develop and market

smart contact lenses designed

to help diabetics. These lenses,

which are still under

development, will analyze the

levels of glucose in tears

through a small antenna finer

than a human hair. This

information will be sent to

patients' phones and enable

them to constantly monitor

their condition.

Apple climbs

on the bandwagon

Watch, Apple's smartwatch

goes on sale in April and will

feature diabetes-related

applications. Dexcom, a

company that develops

packages to monitor glucose

levels is working on an

application for Watch and iOS

devices timed to coincide with

the launch of the watch.

Dexcom's patches will send the

data to a device for processing,

but from April they will offer the

option of managing this task via

the Apple watch, phones and

tablets.

The interest shown by these

titans of the technology sector

in the health industry highlights

the potential of wearable

technology in this field. Indeed

a number of specialized

INNOVATION TRENDS SERIE · FEBRAURY 2015 · www.centrodeinnovacionbbva.com/en

publications have recently

reported that the Watch was

originally designed as a device

targeted more specifically to

personal healthcare. Apple is

thought to have decided to

eliminate functions on the watch

such as heart-rate, blood-pressure

and stress-level monitors after

finding they were not sufficiently

accurate. Apparently, the sensors

did not work well on excessively

hirsute arms, on dry skins or on

users who did not tighten the

watch strap sufficiently, which

decided the makers to discard

certain features.

The wearable devices launched

by Microsoft to accompany their

Windows Phone operating

system also follow this trend:

they are accessories for sport

and fitness, but also for

monitoring health.

INNOVATION TRENDS SERIE · FEBRAURY 2015 · www.centrodeinnovacionbbva.com/en

In Spain, the Valencia-based

company imasD began

developing a smartwatch

intended for diabetics

called imasD Health, according

to a blog specializing in

technology applied to diabetes.

On the back of the watch there

is a reagent that comes into

contact with the skin and allows

the glucose concentration to be

measured every four minutes.

The device receives these data

and monitors them constantly.

It also offers geolocation

options and enables the wearer

to make an automatic call to

the emergency services when

necessary.

The project was already at an

advanced stage of

development and was due to

be completed between

November 2015 in February

2016; however the Valencian

company recently ceded it to

an American company.

INNOVATION TRENDS SERIE · FEBRAURY 2015 · www.centrodeinnovacionbbva.com/en

A watch for diabetics made in Spain

Wearables continue to grow ( )

The latest report by Telefónica on the information society in Spain (2014)

shows that wearable devices have made major inroads in our country in

recent months. Gadgets that monitor physical activity such as the smart

wristbands known as smartbrands and smartwatches have become high-

fashion items in recent months. According to the study, in the first quarter

of 2014, 2.7 million smartbrands were sold, with the brands Pebble

Technology, Sony andSamsung como leading the field.

The report indicates that the wearables market will continue to grow in

coming months. It is calculated that 50 million wearable devices were sold

in 2014 and sales are expected to hit 90 million in 2015. The

accumulated sales predicted through to 2017 could be as high as 250

million devices.

In fact, 39% of Spanish users have expressed interest in accessing Internet

through their watch. However, this is not the element that most interests

Spanish Internet users: 42% would like to access the web through glasses,

whereas 57% would like to do so through their car.

INNOVATION TRENDS SERIE · FEBRAURY 2015 · www.centrodeinnovacionbbva.com/en

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