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Counsel - Immaterial World
 

Counsel - Immaterial World

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    Counsel - Immaterial World Counsel - Immaterial World Presentation Transcript

    • IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERSImmaterial World:A Dematerialized Future August 2010
    • IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERSThe dematerialization of possessionsis emerging as a significant new forcein consumer culture.
    • IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERSFrom the Real to the Virtual Attitudes to ownership are evolving in response to a shift in the value people attribute to physical objects. Friends, experiences and info-bites are replacing possessions as status symbols.
    • IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERSDrivers- Digitization- Speed of Change- Cloud Computing- Expansion of virtual worlds and trading- Convergence of digital worlds and devices- Burden of Ownership- Ethical and Environmental concerns http://www.storyofstuff.com/
    • IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERSA Dematerialized FutureWHILE IT CURRENTLY REPRESENTS THE ASPIRATION RATHER THAN THE REALITY, MANY PEOPLERECOGNIZE THAT DEMATERIALIZATION OFFERS A SOLUTION TO MANY OF THE COMMON ‘PROBLEMSOF MODERN LIFE’.SOME ECONOMISTS SEE THE MOVE TOWARDS DE-MATERIALISM AS PROVIDING THE NEXT STEP INHUMAN/ECONOMIC EVOLUTION, AS WELL AS A SOLUTION TO THE ISSUE OF SUSTAINABILITY ANDGROWTH.THE RISE OF DIGITAL MINIMALISM AND ‘THE CULT OF LESS’.“Dematerialization has enormous implications for how economies should continue to evolve to be successful; forhow wealth and incomes get distributed across and within societies; and for how prospects for economic successchange through time.” Jeremy Rifkin, The Age of Access: The New Culture of Hypercapitalism, [1]
    • IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERSThe Cloud RevolutionTHE CLOUD COMPUTING REVOLUTION IS STILL IN ITS INFANCY BUT WILL FUNDAMENTALLY AFFECTATTITUDES TOWARDS THE VALUE AND DESIRABILITY OF MATERIAL OBJECTS.THERE IS A SHIFT IN THE BALANCE OF POWER FROM THE MATERIAL OBJECT TO THE DIGITAL CLOUD OR‘GLOBAL DATA FIELD’.“Cloud computing is a paradigm shift following the shift from mainframe to client service in the early 1980s. Detailsare abstracted from the users, who no longer have need for expertise in, or control over the technology infrastructure‘in the cloud’ that supports them. Cloud computing describes a new supplement, consumption, and delivery model forIT services based on the Internet, and it is typically involved over-the-internet provision of dynamically scalable andoften virtualized resources.” [2]
    • IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERSThe Cloud RevolutionTHE RESULT OF REMOTELY CONTROLLED DEVICES, WHETHER IT BE AN INTELLIGENTFRIDGE OR WATER SPRINKLER SYSTEM WILL BE THAT THE DEVICE BECOMES ‘THESLAVE’, AND THE INTERFACE (APP) THAT CONTROLS IT WILL BECOME MORE IMPORTANTAND VALUED.THE TRANSITION FROM THE ‘MATERIAL WORLD’ OF DEVICES, TO THE ‘VIRTUAL WORLD’OF CLOUD COMPUTING IS ALREADY REVOLUTIONISING THE MOBILE DEVICE CATEGORY.IT IS TRANSFORMING THE WAY PEOPLE USE THEIR PC’S, HOME APPLIANCES AND MOBILETECHNOLOGY, FREEING THEM FROM THE CONSTRAINTS AND LIMITATIONS OF SPECIFICDEVICES OR LOCATIONS. “The dematerialization of devices is the most incredible thing. You have access to the same data from multiple devices.” [4] — I.T. Manager EMEA, Paris
    • IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERSBurden of OwnershipWE ARE SEEING A GRADUAL CHANGE IN ATTITUDES TO OWNERSHIP.AS MEDIA, MUSIC AND FILM GO ON-DEMAND WE WILL CONTINUE TO SEE A DECLINE IN THE‘STATUS’, AND VALUE OF COLLECTIONS. PEOPLE WILL SHIFT FROM WANTING TO OWN TOWANTING TO HAVE UBIQUITOUS ACCESS AND ENJOY AT THEIR PLEASURE.THIS PHENOMENA IS ALSO OCCURRING IN THE AUTOMOBILE AND HOUSING SECTORS.“Ownership is based on the notion that it’s worth the effort to keep physical items for a long period oftime…In market capitalism, ‘having’ and ‘collecting’ were important and cherished concepts. But they areincreasingly unimportant in an economy in which change is the only constant.” [5]
    • IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERSLiving GenerouslyMORE PEOPLE, ESPECIALLY THE SUPER RICH ARE PLACING GREATER VALUE ON MEMORIESAND LIFE EXPERIENCES OVER MATERIAL POSSESSIONS.THERE HAS BEEN A GROWTH IN PHILANTHROPY, WHICH IN ITS OWN WAY HAS BECOME THENEW WAY OF GAINING STATUS AND ADMIRATION – BILL GATES, PAUL ALLAN, WARRENBUFFETT.THE CASE OF THE AUSTRIAN MILLIONAIRE MR. RABEDER PROVIDES A GREAT EXAMPLE.“More and more I heard the words: Stop what you are doing now – all this luxury and consumerism –and start your real life," he said. "I had the feeling I was working as a slave for things that I did not wishfor or need.” [6]
    • IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERSPower of ExperiencesDEMATERIALISM IS ALSO SEEN AS A WAY TO INCREASE HAPPINESS LEVELS ACROSS DEVELOPEDECONOMIES BY REDUCING OUR OBSESSION WITH ACQUIRING MATERIAL POSSESSIONS.STUDIES SHOW THAT BUYING EXPERIENCES ALSO MAKE US HAPPIER THAN PHYSICAL THINGS.“We found that participants were less satisfied with their material purchases because they were more likely toruminate about unchosen options. That participants examined unchosen material purchases more thanunchosen experiential purchases; and that, relative to experiences, participants satisfaction with their materialpossessions was undermined more by comparisons to other available options. Our results suggest thatexperiential purchase decisions are easier to make and more conducive to well-being.” [7]
    • IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERSImplications
    • IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERSDeath of StuffMORE OF OUR TRADITIONAL POSSESSIONS WILL BECOME DEMATERIALIZED ORDIGITISED.MUSIC STREAMING WILL LIKELY SOON ECLIPSE MP3 PURCHASES IN POPULARITY.IT INVOLVES NO FILE. IN ESSENCE, USERS WILL BE BUYING PERMANENT ACCESSRIGHTS TO A SONG RATHER THAN BUYING AN ACTUAL FILE.KINDLE SALES ARE ALREADY OUTSELLING HARDBACK BOOKS ON AMAZON.“Kindles digital book sales overtake hardcover, device purchases triple after price drop.” [8]
    • IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERSExpansion of Virtual PlatformsACCORDING TO A RECENT SURVEY BY NPD, AROUND 8 MILLION iTUNES USERS WOULD HAVE‘STRONG INTEREST’ IN PAYING A MONTHLY FEE TO EITHER STREAM MUSIC OR TO ACCESSTHEIR MEDIA LIBRARIES ON MULTIPLE DEVICES. THIS COULD TRANSLATE AS A POTENTIAL$1BILLION DOLLAR ANNUAL REVENUE STREAM FOR APPLE.THE AMOUNT OF TIME AND MONEY SPENT VISITING AND INVESTING IN VIRTUAL WORLDS ISINCREASING. FROM FACEBOOK TO FLICKR PEOPLE ARE GROWING USED TO THEIRCONNECTIONS AND PRECIOUS MEMORIES EXISTING IN VIRTUAL SPACES. BACK-UPSERVICES AND REMOTE STORAGE WILL WITNESS HUGE GROWTH.A NEW $2 BILLION DATA CENTRE IN MAIDEN NORTH CAROLINA TO SUPPORT NEW ‘MOBILEME’ CLOUD SERVICES. EXPECT OTHERS TO FOLLOW SUIT.
    • IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERSVirtual GoodsMIRRORING THE SUCCESS OF ONLINE APPS, THERE HAS ALSO BEEN A HUGE RISE INVIRTUAL GOODS, EITHER THROUGH ONLINE GAMES OR THROUGH ADDICTIVEAPPLICATIONS THAT CONVERT HARD CURRENCY INTO ‘VIRTUAL GOODS’.FACEBOOK HAS INTRODUCED ITS OWN CREDIT SYSTEM OF ‘FACEBOOK CREDITS’ AND ISIN THE PROCESS OF REVAMPING ITS VIRTUAL GIFT SITE.“Now, people playing social games such as virtual agriculture simulation Farmville on Facebook areusing real cash to purchase game dollars for additions to their farm. Firms such as Zynga, Playdomand Playfish are all growing fast on the back of the rise in social gaming.” bbc news.com [10]
    • IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERSRise of Fractional OwnershipAS ATTITUDES TO OWNERSHIP EVOLVE THERE WILL BE A GROWTH IN SCHEMES LIKE FRACTIONAL LIFE.SHARED OR PARTIAL OWNERSHIP CAN PROVIDE GREATER OPPORTUNITIES FOR INCREASING LONG TERMCUSTOMER REVENUE STREAMS AS LONGER CONTINUOUS RELATIONSHIPS REPLACE SINGLE PURCHASES.RENT A COW - KUHLEASING, OFFERS BUYERS THE CHANCE TO BUY A COW, NAME IT, SEE IT BEING MILKED THENCHOOSE WHAT TYPES OF CHEESE THEY WANT MADE FROM THE MILK. http://www.kuhleasing.ch/ [11]HOME DESIGN - EVOLVING VOX PROVIDE TEMPORARY FURNITURE AND EQUIPMENT FOR COLLEGE STUDENTS.http://www.evolvingvox.com/ [12]
    • IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERSFrom Products to ExperiencesAS ATTITUDES TOWARDS PHYSICAL PRODUCTS EVOLVE WE WILL SEE A RISE INDEMAND AND VALUE FOR SERVICES, AS PEOPLE PREFER TO SPEND THEIR MONEYON NON-PHYSICAL PRODUCTS OR EXPERIENCES.WE HAVE ALREADY SEEN A CONTINUAL RISE IN THE PERCENTAGE OF HOUSEHOLDBUDGETS SPENT ON SERVICES IN COMPARISON TO DURABLE PRODUCTS OVERTHE LAST 20 YEARS IN THE UK. SEE TABLE.AS A RESULT MORE COMPANIES ARE ALREADY INVESTING IN BUILDING SERVICELED REVENUE STREAMS.- MERCEDES BENZ DRIVING ACADEMIES- GERBER BABY FOOD COMPANY OFFERING INSURANCE Source UK Gov statistics. 2009
    • IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERSFrom Products to ExperiencesPUBLIX SUPER MARKETS, INC. (A U.S. SUPERMARKET CHAIN RANKED NO. 9 ON FORBES2009 LIST OF AMERICAS LARGEST PRIVATE COMPANIES), IS EMBRACING THE PRODUCT TOEXPERIENCE IDEOLOGY.PUBLIX CURRENTLY OPERATES 5 COOKING SCHOOLS AS PART OF ITS APRONS FAMILY.CLASSES ARE DESIGNED FOR BEGINNERS TO THE EXPERIENCED COOKS WANTING TOEXPAND THEIR REPERTOIRE. FEATURING RENOWNED CHEFS, AUTHORS AND COOKINGCELEBRITIES, CLASSES ARE DESIGNED TO TEACH EVERYTHING FROM BASIC TECHNIQUESTO WINE PAIRING.http://www.publix.com/aprons/schools/cookingschools.do
    • IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERSDematerialism ServicesTHE SERVICE ECONOMY IS ADAPTING TO THE FRESH DEMANDS OF THE DEMATERIALIZEDWORLD.SERVICES LIKE’ IPODMEISTER’ PROVIDE A SERVICE WHICH WILL DIGITIZE YOUR RECORDCOLLECTION, ENABLING YOU INCREASED ACCESS AND FREEING UP PHYSICAL SPACE INTHE HOME.http://www.ipodmeister.com/ [13]
    • IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERSChanges in DistributionWE HAVE ALREADY WITNESSED HOW A CHANGE IN DISTRIBUTION OF PRODUCT MUSIC CANTURN AN INDUSTRY ON ITS HEAD.DEMATERIALIZATION IS CURRENTLY ‘GAME CHANGING’ THE VIDEO/DVD INDUSTRY WITH NEWPLAYERS LIKE NETFLIX MAKING LIVE STREAMING THE FUTURE DELIVERY CHANNEL FORFILM.CAN YOU FORESEE HOW A CHANGE IN THE DISTRIBUTION OF YOUR PRODUCT AND SERVICECOULD DRAMATICALLY ALTER YOUR INDUSTRY OR BUSINESS?ARE THERE OPPORTUNITIES THAT COULD ARISE FROM SUCH A POTENTIAL CHANGE?“Now its streaming only. That’s a big difference – no warehouse, no integration with Royal Mail…we are alot bigger when streaming means less operational complexity.” Reuters, Jan 2010 [14]
    • IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERSInsurance and Recovery ServicesAS OUR MOST VALUABLE POSSESSION DISAPPEAR FROM THE TANGIBLE WORLDINTO IN THE VIRTUAL REALM (PHOTOS, BOOKS, MOVIES, MEMORIES, MUSIC, ART…)WE NEED VIRTUAL STORAGE:WHAT HAPPENS IF YOU LOSE YOUR ‘DEMATERIALIZED’ POSSESSIONS?HARD DRIVES WILL BECOME SUPER-VALUED.THE INCREASE IN DEMATERIALIZED POSSESSIONS IS LIKELY TO FUEL A GROWINGDEMAND FOR BACK UP AND MANAGEMENT SERVICES.EXPECT TO SEE DIGITAL RECLAMATION AS A GROWTH SECTOR AS PEOPLE SEEK TORECOVER LOST FILES.“Responding to this change in habits is vital, and our research also shows that there has beenan increase in the number of people wanting cover for their digital downloads. Thats why, sinceJanuary 2009, our customers have enjoyed £2,500 digital download cover as standard.” MoreThan insurance company website [15]
    • IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERS1. Growth and Dematerialization: Why Non-Stick Frying Pans Have Lost The Edge, Danny Tyson Quah, (CEP’s Centre Piece 1996 October) http://lse.academia.edu/DannyQuah/Papers/25282/PDF3. Cloud computing http://en.wikipedia.org/wiki/Cloud_computing3. ‘The internet of Things’, IBM Social Media. http://www.youtube.com/watch?v=sfEbMV295Kk4. Counsel Thought Leader Research, Future of Mobile Devices, June 20095. The Age of Access: The New Culture of Hypercapitalism, Where All of Life Is a Paid-for Experience, Jeremy Rifkin (Tarcher, 2000)6. Daily Telegraph, 8 Feb 2010http://www.telegraph.co.uk/news/worldnews/europe/austria/7190750/Millionaire-gives-away-fortune-that-made- him-miserable.html7. Fraction Life organisation http://www.fractionallife.com/8. The relative relativity of material and experiential purchases. Carte TJ, Gilovich T, Department of Psychology, Cornell University. http:// www.ncbi.nlm.nih.gov/pubmed/200530399. Engadget, 19 July, 2010. http://www.engadget.com/2010/07/19/kindles-digital-book-sales-overtake-hardcover-device-purchases/10. bbc news http://news.bbc.co.uk/1/hi/technology/8320184.stm11. http://www.kuhleasing.ch/12. http://www.evolvingvox.com/13. Ipodmeister. http://www.ipodmeister.com/14. Reuters News, January 28, 201015. More Than insurance http://www.morethan.com/Pages/Products/Home/DigitalInsurance.aspx
    • IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERSTHIS PRESENTATION IS MADE TO YOU STRICTLY ON THE FOLLOWING UNDERSTANDINGS:ALL RIGHTS ARE RESERVED TO LOWE COUNSEL. NO PART OF THIS PRESENTATION MAY BEREPRODUCED, STORED IN A RETRIEVAL SYSTEM, OR TRANSMITTED, IN ANY FORM OR BYANY MEANS, WITHOUT THE PRIOR PERMISSION IN WRITING OF LOWE COUNSEL.THIS PRESENTATION CONTAINS MATERIAL WHICH IS OF A CONFIDENTIAL NATURE WHICHIS THE PROPERTY OF LOWE COUNSEL AND YOU WILL NOT DIVULGE ANY OF THECONTENTS TO ANY PERSON OTHER THAN TO YOUR EMPLOYEES OR ADVISERS WHO AREREQUIRED AS A MATTER OF NECESSITY IN THE COURSE OF THEIR DUTIES TO RECEIVEAND CONSIDER THE SAME FOR THE PURPOSES OF EVALUATING LOWE COUNSEL, ITSPRESENTATION AND ANY RELATED PROPOSALS AND THEY WILL BE INFORMED BY YOU OFTHE CONFIDENTIAL NATURE OF THE MATERIAL.YOU WILL NOT USE OR EXPLOIT ANY OF THE CONTENTS OF THIS PRESENTATION FOR ANYPURPOSE OTHER THAN TO EVALUATE LOWE COUNSEL, ITS PRESENTATION AND ANYRELATED PROPOSALS AND IN PARTICULAR ANY DESIGNS, IDEAS OR CONCEPTS PUTFORWARD BY LOWE COUNSEL MAY NOT BE USED BY YOU AS PART OF ANY SUBSEQUENTADVERTISING CAMPAIGN WITHOUT THE EXPRESS WRITTEN CONSENT OF THE LOWECOUNSEL.