This is a historical overview of digital.

1. The Changing World of Digital A look at Digital Past, Present, Future Amy Lieberman: amy@orangeinsights.com TerySpataro: tery@orangeinsights.com January 10, 2011

2. Overview Some experts believe that digital has been around since the mid-seventies, while others argue that its inception pre-dates the invention of television. There’s also the school of thought that sees digital as a revolutionary idea that defies the constraints of old-fashioned business theory.

3. About the Timeline As this timeline shows, digital history began well over 20 years ago. Note the amount of digital technology that has been created and employed ubiquitously over the past 10 years. At the same time, think of some of the web businesses in the past 15 years that are no longer available because adoption did not take place.

4. Overview of Digital History PreDigital Future 2009 1994 1999 2004 2014 Pre-Commercialization Presidential History Regan G.H.W. Bush 1981-1993 G.W. Bush 2001-2009 Clinton 1993-2001 Obama 2009 Consumer Hard Wired Me Media Now Passive Viewer Activator Participant Google IN Your Refrigerator Engager Broadcast Mobile Device Online Shopping Augmented Reality WWW Smart SMS computer Digital Shelf Talkers Shopping Bots SM Crisis Platform Product Info Digital coupons Dr. Watson Social Sharing Mobile Credit Cards (EU, Asia) Remote Control Internet TV Search Immersive Media Mobile Coupons Brain to computer iPad Media Shopping Cart Social Smart Mobile Aps Point & Click Dr. Google Behavior Digital Book Recommendations Listening to music Send to friend Watching videos PROCESSING Click Purchase linking participate Creating media ExplorationTest & Learn Comparison shopping socialize Share liking (c) Copyright 2010 Orange Insights Search blogging Shopping Digital Periods Renaissance Constructivism Innovation Introspection

5. Changes in Government Affect on Digital Because many people use presidential terms of office as historical reference points, they can be useful benchmarks for the evolution of digital. As you can see, much has changed over a mere four presidential periods.

6. Consumers Have Changed Viewers of “old” broadcast media were at one time completely passive, but then developed a measure of control through the introduction of the remote. Current consumers have taken a larger measure of control of digital media as activators, participants, and engagers. The newest generation of consumers is known as Me Media Now. These consumers of digital media are in complete control—they are creators, promoters, activists, entrepreneurs and entertainers. In 50 or 100 years consumers will be completely different. Digital may be wired into our very brains.

7. Devices Have Evolved Ferocious consumption of media CD, VCR, & Cable were common TV consumers once thought of the remote as powerful, but they had little control over the types of media they wanted to view. Computers and the Internet then created the means for engagement and participation. In the early days of the Internet, few were able to organize using digital bulletin boards. But now consumers can create and partake in any form of social networking, making it easier to share media and experiences. Mobile provides immediate access to anything a consumer wants within the palm of his/her hand. A digital device scenario of the future may be that your refrigerator lets your car know that you are out of milk. Your car may then factor a stop at the store into your route and the milk could be waiting for you at the drive through.

8. Evolution of Human Behavior The innovation of the point and click interface is now more than 30 years old. Soon even the touchscreens may be obsolete, with new intermediate-free interfaces we can link to whatever we want, search for the mysteries of life, show support by liking, shop till we drop, and then consult Dr. Google for what ails us. What’s next? The consumer brain of the future may directly process zeros and ones without the aid of a computer or integrated mobile device. In other words could be wired to our brains.

9. Past, Present & Future It’s possible to think of the digital evolution as progressing through four periods: The first twenty years, Constructivism, was focused on learning, understanding, sharing, creating, and adopting. From 1994–1999, digital entered a period of Renaissance. During this period, anyone could be a digital entrepreneur. Marketing strategies began to change significantly by allowing digital tactics. At the same time, a steep learning curve led to numerous failures and losses. From 2000–2009, the digital world entered a phase of Introspection, during which it took a step back to think about creating better business models that had a clear return on investment. During this period, consumers began to voice opinions and take control of brands. And finally, digital is entering a new cycle of Innovation. We are just beginning to see where these innovations are going to lead us.