ces 2017 | technologies fueling transformation: from the showroom to future-proofing your brand
TRANSCRIPT
Technologies Fueling Transformation: From the Showroom to Future-Proofing Your Brand
CES 2017
Insights from SapientRazorfish
Autonomous cars. Connected everything. Intelligent platforms that are taught rather than programmed. We are living in the future.
As personalization and connectivity are rapidly causing
consumer expectations to change, this year's Consumer
Electronics Show (CES) demonstrated how an increasingly
connected economy is transforming customer experiences.
With up to 50 billion devices set to connect to the Internet
by 2020 – many of which were visible on the CES show
floor – advances in data science, affordable electronics and
ubiquitous wireless service are enabling the integration of
intelligence into just about any product, across all industries.
Organizations continue to be faced with the impediment
of change, the pace of which is only accelerating, and must
now reimagine their business for a connected world.
From immersive technologies to intelligence everywhere, CES 2017 diminished the line between physical and digital.
The recurring themes at this year’s show reinforced our
belief that the future belongs to those willing to harness
value from data, connectivity, smart machines and artificial
intelligence (AI) in order to transform their businesses
and cont inuously exceed customer expectations. So
what should the C-suite and its leadership teams take
from CES 2017 as they plan for the next five to 10 years?
In this Insights piece, we decipher five emerging tech
trends – along with their implications on marketers – as we
guide you through future-proofing your brand.
Two technologies sure to power the future.E n a b l i n g ( w h a t s e e m e d l i k e ) hundreds of products at this year's CES, Amazon's Alexa was the obvious star of the show. Add to that the fact that i ts n a m e was used interchangeably with natural language processing, and it’s clear t h a t t h i s i n n o v a t i on was a CES 2017 winner.
And i f the wave of Alexa wa s n o t e n ough, 5G was a s trong undercurrent, promising 75 times the bandwidth of its predecessor. This new standard, expected to roll out in 2018, will change the way we all interface with cloud enablement services. As with A l e x a - e n a b l e d technologies , 5G-based work ing prototypes were found across the CES floor.
Connecting Technology and the Consumer
“Customers are moving faster than the technology today, and it's up to businesses to respond to their movements, using the customer journey to drive fundamental change to how silos connect and operate.”
NIGEL VAZ
CEO, EMEA & APAC,
PUBLICIS.SAPIENT
1. Shift from products to (eco)systems. For decades, marketing executives have been advised to position their brands to solve broad customer problems rather than point solutions, while many product leaders were focused on the latter. Now, we’re seeing a shift to platforms and ecosystems stressing the benefits of connectivity from single product features for solving end-to-end problems, not just for individuals but for groups (e.g., the family). At this year’s show, it seemed that every major consumer electronics company introduced a platform illustrating its intent to compete for the connected home.
LEADERSHIP PERSPECTIVE
SHANNON DENTON
CHIEF STRATEGY
OFFICER,
SAPIENTRAZORFISH
“Unprecedented levels of con-nectivity enable brands to shift their business models from product sales to integrated service providers.”
ExamplesLG previewed several smart appliances and robots, expertly
managed by its SmartThinQ hub and enabled by Alexa
via Echo-like countertop speakers and robots. Samsung’s
Family Hub 2.0 smart fridge can now not only provide you
with a view inside, but it can check your food supplies,
conjure up receipts and even order delivery from GrubHub
when no one feels like cooking.
TakeawaysThese examples don’t just i l lus t ra te new poss ibi l i t ies
of modern connectivity; they also stress the urgency of
building a layer of simplicity. Smart leaders realize they risk
making the lives of their customers more complex with
scores of connected products, many of which can come
off as gimmicky. They have to push real problem solving
and value above flash.
Brands will create new digital ecosystems of their own, but
it’s the collaboration of brands – including competitors –
that will deliver game-changing marketing solutions enabled
( initially ) by developments in 5G technology and natural
language processing.1
1 Razorfish. CIOs Seek Growth through API Programs. https://www.razorfish.com/arti-cles/2016/cios-seek-growth-through-api-programs.
2. Look to reduce friction to compete with complexity.Voice and other natural user interfaces abound as everyone seeks to help make technology easier to use and more human. There was plenty of evidence at this year's CES showing how computers will vanish into things as they become smaller and out of sight. Thanks to seamless experiences enabled by massive integration, consumers no longer move in and out of several apps to achieve their goals. It's a world where we are the master and technology is the servant.
LEADERSHIP PERSPECTIVE
JASON GOLDBERG
SVP, CONTENT
AND COMMERCE,
SAPIENTRAZORFISH
“Voice interface isn’t just an adjunct, it's a paradigm shift. And it's going to have a tremendous impact on the way brands market.”
ExamplesHolographic interfaces, such as BMW’s HoloActive in-
car display, feature haptic feedback in midair. A solution
from Knocki turns any surface into a connected device,
enabling users to turn on the TV (for example). GeniCan’s
WiFi-connected barcode scanner attaches to your trash
can and integrates with Amazon Dash to conveniently
order replenishment products. All of these technologies
underscore a movement toward friction-free experiences.
TakeawaysNatural user interfaces are resetting customer expectations,
and marketers need to choose their platforms wisely.2
Consumers are already showing a preference toward voice-
enabled products. It’s no longer a matter of it being a novel
feature – it’s a matter of meeting expectations that are
already there. The brands that have already brought voice-
enabled products to market are seeing returns. And in the
near future, the search industry, recommendations and
advertising will all be dramatically impacted by this trend.
2 Razorfish. Transformation in Travel & Hospitality. https://www.razorfish.com/arti-cles/2016/transformation-in-travel-and-hospitality.
3. Devices are being taught more than programmed. Natural user interfaces and other emerging trends at the show made one thing clear: artificial intelligence is in everything. This new era is marked by conversational commerce that integrates AI, natural language processing, gesture interfaces and bots – all of which are now more aggressively digitizing the customer experience. While one brand might use intelligence to offer a product right in the moment when a buyer realizes his/her need for it, a competitive brand can seize the advantage by using insights to get ahead of such awareness. One approach solves a problem after it has occurred; the other prevents the problem from happening in the first place.
LEADERSHIP PERSPECTIVE
JEREMY LOCKHORN
VP, EMERGING
EXPERIENCES
AND MOBILE LEAD,
SAPIENTRAZORFISH
“Instant gratification is going to feel slow. AI is going to get so good that users will begin to expect companies to predict what they want, before they even ask for it.”
ExamplesWhile Mercedes showed off how its 2017 infotainment systems learn your preferences and predict your destinations, startup ShadeCraft unveiled its creative solution called "The Sunflower." This umbrella robot follows the sun, adapts to wind and closes on its own. It also has programmable lighting, built-in speakers, a microphone and a camera, and is (of course) compatible with both Alexa and Siri.
A number of AI-powered, semiautonomous personal assistants were on hand, such as the Kuri home robot, which earned considerable buzz for a product that was shown only in a private suite. In the meantime, Emotech LTD’s robot OLLY won the CES Innovation Award for its use of machine learning in connected home solutions.
TakeawaysYet another platform battle is brewing as different components are powered by different AI platforms (e.g., Amazon/Alexa, Google, Microsoft and IBM). To capitalize on platforms that already exist, brands will have to decide to what extent they want to rely on – and yield data to – third parties. AI-powered personal assistants will radically increase consumer expectations for personalization. Instant gratification won’t be good enough; brands will have to predict and deliver proactively – without being intrusive on consumer privacy.3
3 SapientNitro. Artificial Intelligence: Combining Causal Reasoning, Machine Learning and Big Data for Business Results. http://www.sapientnitro.com/en-us.html#perspective/insights/insights-articles/artificial-intelligence-combining-causal-reasoning-machine-learn-ing-and-big-data-for-business-results.
4. Auto leads the way in transforming consumer behaviors. “Disruption” is a term that has become both overused and overstated. But in the transportation industry, connected cars and drones will fundamentally change how everything – and everyone – gets from point A to point B. As a result, this industry’s evolution will reshape consumer behaviors, transform business operations and impact the economy in a massive way. For the first time ever, CES felt as much an auto show as it did a consumer electronics show. This included two auto brands – FCA and Faraday – that introduced their major concepts of the year at CES instead of at the Detroit Auto Show just a few weeks later.
LEADERSHIP PERSPECTIVE
ZACH PARADIS
VP EXPERIENCE
STRATEGY,
GLOBAL RETAIL
STRATEGY LEAD,
SAPIENTRAZORFISH
“A decade from now, there will be a radically transformed auto-motive ecosystem that will disrupt many industries – well beyond automotive.”
ExamplesEvery automaker and p la t fo rm company brought i ts
version of autonomous car platforms to the showroom
f loor. In te l u n ve i led i ts GO In - Ve h i c l e D e ve lopment
Platform for Automated Dr iv ing, which purports to be
the world’s first 5G-ready platform for the auto industry.
The network allows massive amounts of data to move
at unprecedented speeds, thus connecting billions of
devices to the IoT, including smart cars and drones. Intel’s
data center also has machine learning capabilities, which
uses data to “teach” cars how to respond and react to an
ever- increasing set of obstacles on the road.
TakeawaysAs transportation continues to become smarter and more
efficient, cars and drones will become more than a simple
utility – they will be an integrated part of the connected
consumer’s ecosystem.4 However, while the technology
fueling these devices advances at a rapid rate, our regulatory
environment is expected to move considerably slower, which
means that driverless cars and drones may make their way
to market long after the technological capabilities exist.
Automotive and technology brands must not only focus on
innovating, but on shaping the safety rules and regulations
that will ultimately determine when and where they’re used.
4 SapientNitro. Service-Driven & Customer-Centric: A Network Orchestration Framework for the Au-tomotive Industry. http://www.sapientnitro.com/en-us.html#perspective/insights/insights-articles/service-driven-customer-centric-a-network-orchestration-framework-for-the-automotive-industry.
5. The lines between digital and physical worlds continue to blur for marketers and consumers. While virtual reality (VR) has long been seen as a geek favorite, especially in gaming and entertainment, many other organizations showcased the value of both virtual and augmented reality (AR) at CES this year. This blended reality is being used to transform training and education programs, provide helpful cues and instructions to workers, and share identifiers and reminders within the physical environment.
LEADERSHIP PERSPECTIVE
MATT ARNOLD
SENIOR MANAGER
OF TECHNOLOGY,
SAPIENTRAZORFISH’S
SECOND STORY
“At this point, there is a certain inevitability to VR and AR. Brands can no longer ignore their value or dismiss them as fads.”
ExamplesAt CES, Intel introduced DAQRI Smart Glasses, a wearable
technology tool that combines enterprise-grade computer
vision with software-defined light breakthroughs to create an
augmented world for users. Through the glasses, instructions
are superimposed over a worker’s field of vision, providing
valuable guidance to the user that potentially improves
performance and eff ic iency. The Google Tango enabled
phone al lows consumers to see products in physical
spaces, in a beautiful demonstration of mixed reality.
TakeawaysWhile AR and VR are l ikely to continue as consumer-
fo c use d m e d i a , b us ines s - to - b us ines s b r an d s a re
qu ick ly r e a l i z i n g t h e p ower o f t hese te c hn o l o g ies
to improve productivity, efficiency and safety. Though
these technologies h ave ye t to reach c r i t i c a l mass ,
brands should consider how to use them within their
organizat ions and customer relationships alike.5
5 SapientNitro. VR and AR Demand Long-Term Action from Innovative Brands. http://www.sapientnitro.com/en-us.html#perspective/insights/insights-articles/vr-and-ar-de-mand-long-term-action-from-innovative-brands.
Leverage connectivity to change the way you competeFor many brands, introducing connected products
that leverage advances in machine learning, AI, data
science, and even VR and AR feels like a competitive
advantage. While this may be true in the short term,
integrating the next-level connectivity that we
experienced at this year's CES will soon be required
to achieve competitive parity.
Business leaders must architect their own
connectivity strategies, complete with research and
development dollars set aside for experimenting,
building prototypes and pursuing joint projects
with partners from across our connected economy.
And while all brands should consider the future that
is ultimate connectivity, they should also remember
the age-old philosophy "just because you can,
doesn't mean you should." Connectivity should be
taken in stride, with the right platforms chosen for
the brand (and consumers) at hand.
Don’t underinvest in product designIntegrating the functional and emotional attributes of
a product that is smart, fun to use and intrinsically
valuable to customers is every designer's challenge.
Many brands will be tempted to focus on the
technology at the expense of human-centered
design, an approach that we do not recommend
(especially when that fascination with technology
leads to over-designed products). The same is
true for products that are sparsely designed.
Finding a magical balance will be critical for
success. Don't hesitate to seek external
partners that can help you deliver highly
functional and beautifully designed products
that actually provide value.
Prioritize quality integrationAccording to industry experts, half the cost of
getting a connected product to market will be
spent integrating various components with each
other and with external systems, both within
and outside the enterprise. However, integration
often gets less than its fair share of effort, due to
competing tasks such as user interface design,
hardware engineering or adding voice interfaces.
But if integration isn’t solidly enabled, then the
whole idea behind the connected product will
be compromised. This requires us to take a hard
look at how we architect our systems to leverage
both high security and microservices. Also,
remember that how we connect today will
change tomorrow, so the technical architecture
for your product needs to be both flexible for today
and adaptable for the future.
Looking Ahead
Interested in learning more about the implications of CES?
CONTACT: [email protected]