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1/4 .Me Editorial OUT OF THE BLUE iAM 1/4 .ME EDITORIAL The Digital Revolution is all around us. The impact of digitization on Under the overarching theme iAM, we have developed four established businesses, institutions, and start-ups is profound, and different concepts. is opening up new dimensions to deliver products and services and .me: How individualism and personalization take on new to interact with customers. dimensions with digital. However, perhaps even deeper than the industry changes are .now: How digital is changing our perception of time and our use the underlying changes that digital is having on our personal of resources and professional lives. In a positive feedback cycle, users foster the development of innovations and, at the same time, change .here: How digital is broadening the concepts of place behaviors and preferences upon using them. The expectation of and presence technology to make our lives easier and faster is growing. As digital continues changing what we do, the question arises: is digital .mind: How digital is affecting our minds and our attention changing who we are? The material is crowdsourced and linked for further reference Out of the Blue digs into these changes: new behaviors, new and reading. We are only scratching the surface and invite you to preferences, and new social mores that are emerging with such a join us on this journey. Both .here and .mind are scheduled for a strength and transformative power that we could be witnessing the January release. dawn of a new concept of the self: the i.AM. Knowing how individuals evolve in the digital revolution will be – Oliver Wyman’s Communications, Media and Technlogy practice critical for business and institution. Out of the Blue’s purpose is to contribute to this knowledge. 2 “ Are our devices turning us into a new kind of human?” – Amber Case, cyborg anthropologist, TED Radio 3 iAM Digital is an integral part of our lives. Technology is blurring the lines between the digital, physical and biological spheres while reshaping our perception of space and time and even the concept of our identity or persona. The expectation of technology to make our lives easier and faster is growing. As digital continues changing what we do, the question arises: is digital changing who we are? 4 iAM INDEX .ME How individualism and personalization take on new dimensions with digital. .NOW How digital is changing our perception of time and our use of resources .HERE How digital is broadening the concepts of place and presence .MIND How digital is affecting our minds and our attention Ogilvy & Mather China Center For Psychological Research, Shenyang Phone Wall Campaign. Used under permission 5 How individualism and personalization .ME take on new dimensions with digital Digital is reinforcing an overall trend towards individualism. Over the past decade, the smartphone has become our digital umbilical cord, the physical support and connection with our digital selves. It has made computing truly personal. Now, technological advancements in artificial intelligence, machine learning, voice- based interactions, and emotional tracking technologies promise to capture the “digital me”: to deliver customized content and personalized interaction in ways that can scale to reach millions. 6 “ Our goal is to build a personal Google for each and every user. Not a single Google that we all can use, but an individualized Google for everyone.” – Sundar Pichai, CEO Google, introducing Google Assistant 7 In the UK, adult smartphone users spent nearly 2 hours online each day using a smartphone compared to just over an hour on laptops and PCs In the US, smartphones make up the largest share (37%) of connected devices in the home. M-commerce contributes about 1 in every 6 dollars spent via digital commerce In China, 92.5% of Internet users use their smartphones to pay rent, buy things, and even monitor school home work around the clock. On average web users spent 3.8 hours a day on Internet Within the EU, there are 75 mobile broadband SIM cards per 100 people; up from 34 in 2012 In July 2016, Apple announced that it has sold its one billionth iPhone 8 ME AND MY MOBILE HOW THE MOBILE MADE COMPUTING PERSONAL More people get online using mobile than any other technology: In 2015, mobile messaging Between 2010 and 2014, the number of apps outgrew usage of social media. unique mobile subscribers increased by 120% worldwide. In Q216, more than 90% of Facebook’s 1.71 billion users At the end of 2015, 3.24 billion people were on mobile devices. 84% (44% of the global population) were of the company’s $6.2 billion connected to the Internet. advertising revenue came from mobile. Our smartphone is the first device that is 100% personal, and it is becoming our primary computer: We are spending more time on our smartphones – even at home and in the office – and we increasingly use our mobiles manage our personal and professional lives, including purchasing products and services, consulting information and making payments. Sources: CNNIC, Ofcom, ComScore, European Commission, Business Insider 9 IT IS ALL ABOUT ME HOW INTERNET IS EVOLVING INTO THE “INTERNET OF ME” Ubiquitous information, connectivity, social networks, and an overall trend towards individualism have given people of all ages the freedom to construct their identities more freely than ever, and to share what they do and who they are with others online. Our willingness and appetite to share who we are and what we like is changing the nature and traffic of the Internet. The “Internet of we,” in which we went online primarily to find information on certain topics, has evolved into the “Internet of me,” where individuals are primarily the topic of interest and the hub of data flows. We are sharing our personal experiences and information like never before, and we spend several hours a day uploading, tweeting, and curating digital information about ourselves. Our online behaviour is amassing a wealth personal information that offers companies and organizations endless possibilities to track, analyse, and predict individual behaviour. By using data to unveil our inner identities companies are offering highly customized and personalized services. “ What we've learned over time is: it's not who they are in a superficial sense – like gender, age, even geography. It's not even what they tell you. It's what they do.” – Todd Yellin, VP, Product Innovation, Netflix 10 Looking to the future, the next big step will be for the very concept of the “device” to fade away. Over time, the computer itself – whatever its form factor – will be an intelligent assistant helping you through your day. We will move from mobile first to an AI first world.” – Sundar Pichai, CEO Google DISCOVERING THE NEW .ME (1/2) THE REVIVAL OF ARTIFICIAL INTELLIGENCE TO CUT THROUGH THE CLUTTER Among digital abundancy we are drowning in too many apps and too much data. We are always connected, toggling between different devices. Our THE DAWN OF A POST DEVICE ERA? photo collections keep growing, music and media is available at a click, and Global PC shipments reached their historical high messaging apps buzz for our attention. of 95.4 million units in 2011. Since then, global In this setting, contextual awareness and predictive analysis – underpinned demand has gradually declined. by artificial intelligence and machine learning fed by the wealth of personal Smartphone sales recorded their highest growth information stored in the cloud – point toward more intuitive, personal, and in 2010. Double digit growth followed in the relevant “information discoveries” as they are needed. period between 2011-2015. Gartner estimates the Although it might be difficult to envision today, the central role of the smartphone growth for 2016 to slow down to 7%. in our lives might fade away. According to Bob Donell of Techanalsyis, we are entering a new era of computing where the role of hardware and devices becomes secondary, and where voice-based interactions, driven by deep-learning algorithms in the cloud will enter the main stage. Sources: Fastcompany, Gartner, Statista.com 11 DISCOVERING THE NEW .ME (2/2) THE REVIVAL OF ARTIFICIAL INTELLIGENCE FOR PERSONALIZATION AT MASS SCALE Advancements in artificial intelligence and machine learning are Over the past year, tech companies have raced to open up their also opening up the doors for personalization at an unprecedented artificial intelligence software as open source and integrated scale, potentially reaching millions of customers. machine learning capabilities within their cloud service offerings. Companies of all sizes now have an increasing set of tools to use Use cases for artificial intelligence range from personalized artificial intelligence to create personal and smart experiences at recommendations for discovery, customer segmentation, mass scale. programmatic advertising, marketing forecasting, and prediction to helping customers navigate vast amounts of information, customer service, acquisition, and retention. TECH COMPANIES AI TOOLS and OFFERINGS Google: In November 2015, Google Facebook: In January 2015, Facebook IBM: offers a wide range of cognitive released open source machine learning made several of its AI tools available on the computing services, including Watson software package TensorFlow Torch open source library Microsoft: In April 2016, Microsoft added IBM: In November 2015, IBM transferred AirBnB: In June 2015, AirBnB released “Cognitive Services”, a series of 22 APIs its SystemML machine-learning software Aerosolve, its open-source
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