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IMMATERIAL WORLD   FUTURE SIGNS   LOWE COUNSEL   LOWE AND PARTNERS




Immaterial World:
A Dematerialized Future




     ...
IMMATERIAL WORLD   FUTURE SIGNS   LOWE COUNSEL   LOWE AND PARTNERS




The dematerialzation of possessions
is emerging as ...
IMMATERIAL WORLD    FUTURE SIGNS      LOWE COUNSEL      LOWE AND PARTNERS




From the Real to the Virtual


             ...
IMMATERIAL WORLD         FUTURE SIGNS         LOWE COUNSEL           LOWE AND PARTNERS




Drivers

-  Digitization
-  Spe...
IMMATERIAL WORLD                  FUTURE SIGNS                      LOWE COUNSEL                       LOWE AND PARTNERS

...
IMMATERIAL WORLD                   FUTURE SIGNS                        LOWE COUNSEL                        LOWE AND PARTNE...
IMMATERIAL WORLD          FUTURE SIGNS                      LOWE COUNSEL                       LOWE AND PARTNERS




The C...
IMMATERIAL WORLD                   FUTURE SIGNS                       LOWE COUNSEL                         LOWE AND PARTNE...
IMMATERIAL WORLD                     FUTURE SIGNS                           LOWE COUNSEL                          LOWE AND...
IMMATERIAL WORLD                    FUTURE SIGNS                         LOWE COUNSEL                        LOWE AND PART...
IMMATERIAL WORLD   FUTURE SIGNS   LOWE COUNSEL   LOWE AND PARTNERS




Implications
IMMATERIAL WORLD                    FUTURE SIGNS                         LOWE COUNSEL             LOWE AND PARTNERS




De...
IMMATERIAL WORLD          FUTURE SIGNS               LOWE COUNSEL                LOWE AND PARTNERS




Expansion of Virtua...
IMMATERIAL WORLD                  FUTURE SIGNS                        LOWE COUNSEL                   LOWE AND PARTNERS



...
IMMATERIAL WORLD          FUTURE SIGNS               LOWE COUNSEL               LOWE AND PARTNERS




Rise of Fractional O...
IMMATERIAL WORLD          FUTURE SIGNS              LOWE COUNSEL        LOWE AND PARTNERS




From Products to Experiences...
IMMATERIAL WORLD                 FUTURE SIGNS            LOWE COUNSEL            LOWE AND PARTNERS




From Products to Ex...
IMMATERIAL WORLD               FUTURE SIGNS           LOWE COUNSEL              LOWE AND PARTNERS




Dematerialism Servic...
IMMATERIAL WORLD                  FUTURE SIGNS                       LOWE COUNSEL                          LOWE AND PARTNE...
IMMATERIAL WORLD                   FUTURE SIGNS                        LOWE COUNSEL                LOWE AND PARTNERS




I...
IMMATERIAL WORLD                        FUTURE SIGNS                           LOWE COUNSEL                            LOW...
IMMATERIAL WORLD          FUTURE SIGNS               LOWE COUNSEL              LOWE AND PARTNERS




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Counsel immaterial world

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Transcript of "Counsel immaterial world"

  1. 1. IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERS Immaterial World: A Dematerialized Future August 2010
  2. 2. IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERS The dematerialzation of possessions is emerging as a significant new force in consumer culture.
  3. 3. IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERS From 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.
  4. 4. IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERS Drivers -  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/
  5. 5. IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERS A Dematerialized Future WHILE IT CURRENTLY REPRESENTS THE ASPIRATION RATHER THAN THE REALITY, MANY PEOPLE RECOGNIZE THAT DEMATERIALIZATION OFFERS A SOLUTION TO MANY OF THE COMMON ‘PROBLEMS OF MODERN LIFE’. SOME ECONOMISTS SEE THE MOVE TOWARDS DE-MATERIALISM AS PROVIDING THE NEXT STEP IN HUMAN/ECONOMIC EVOLUTION, AS WELL AS A SOLUTION TO THE ISSUE OF SUSTAINABILITY AND GROWTH. THE RISE OF DIGITAL MINIMALISM AND ‘THE CULT OF LESS’ “Dematerialization has enormous implications for how economies should continue to evolve to be successful; for how wealth and incomes get distributed across and within societies; and for how prospects for economic success change through time.” Jeremy Rifkin, The Age of Access: The New Culture of Hypercapitalism, [1]
  6. 6. IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERS The Cloud Revolution THE CLOUD COMPUTING REVOLUTION IS STILL IN ITS INFANCY BUT WILL FUNDAMENTALLY AFFECT ATTITUDES 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. Details are 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 for IT services based on the Internet, and it is typically involved over-the-internet provision of dynamically scalable and often virtualized resources.” [2]
  7. 7. IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERS The Cloud Revolution THE RESULT OF REMOTELY CONTROLLED DEVICES, WHETHER IT BE AN INTELLIGENT FRIDGE OR WATER SPRINKLER SYSTEM WILL BE THAT THE DEVICE BECOMES ‘THE SLAVE’, AND THE INTERFACE (APP) THAT CONTROLS IT WILL BECOME MORE IMPORTANT AND 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 MOBILE TECHNOLOGY, FREEING THEM FROM THE CONSTRAINTS AND LIMITATIONS OF SPECIFIC DEVICES 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
  8. 8. IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERS Burden of Ownership WE 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 TO WANTING TO HAVE UBIQUITOUS ACCESS AND ENJOY AT THEIR PLEASURE. THIS PHENOMENA IS ALSO OCCURING 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 of time…In market capitalism, ‘having’ and ‘collecting’ were important and cherished concepts. But they are increasingly unimportant in an economy in which change is the only constant.” [5]
  9. 9. IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERS Living Generously MORE PEOPLE, ESPECIALLY THE SUPER RICH ARE PLACING GREATER VALUE ON MEMORIES AND LIFE EXPERIENCES OVER MATERIAL POSSESSIONS. THERE HAS BEEN A GROWTH IN PHILANTHROPY, WHICH IN ITS OWN WAY HAS BECOME THE NEW WAY OF GAINING STATUS AND ADMIRATION – BILL GATES, PAUL ALLAN, WARREN BUFFETT. 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 wish for or need.” [6]
  10. 10. IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERS Power of Experiences DEMATERIALISM IS ALSO SEEN AS A WAY TO INCREASE HAPPINESS LEVELS ACROSS DEVELOPED ECONOMIES 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 to ruminate about unchosen options. That participants examined unchosen material purchases more than unchosen experiential purchases; and that, relative to experiences, participants' satisfaction with their material possessions was undermined more by comparisons to other available options. Our results suggest that experiential purchase decisions are easier to make and more conducive to well-being.” [7]
  11. 11. IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERS Implications
  12. 12. IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERS Death of Stuff MORE OF OUR TRADITIONAL POSSESSIONS WILL BECOME DEMATERIALIZED OR DIGITISED. MUSIC STREAMING WILL LIKELY SOON ECLIPSE MP3 PURCHASES IN POPULARITY. IT INVOLVES NO FILE. IN ESSENCE, USERS WILL BE BUYING PERMANENT ACCESS RIGHTS TO A SONG RATHER THAN BUYING AN ACTUAL FILE. KINDLE SALES ARE ALREADY OUTSELLING HARDBACK BOOKS ON AMAZON. “Kindle's digital book sales overtake hardcover, device purchases triple after price drop.” [8]
  13. 13. IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERS Expansion of Virtual Platforms ACCORDING 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 ACCESS THEIR 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 IS INCREASING. FROM FACEBOOK TO FLICKR PEOPLE ARE GROWING USED TO THEIR CONNECTIONS AND PRECIOUS MEMORIES EXISTING IN VIRTUAL SPACES. BACK-UP SERVICES AND REMOTE STORAGE WILL WITNESS HUGE GROWTH. A NEW $2 BILLION DATA CENTRE IN MAIDEN NORTH CAROLINA TO SUPPORT NEW ‘MOBILE ME’ CLOUD SERVICES. EXPECT OTHERS TO FOLLOW SUIT.
  14. 14. IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERS Virtual Goods MIRRORING THE SUCCESS OF ONLINE APPS, THERE HAS ALSO BEEN A HUGE RISE IN VIRTUAL GOODS, EITHER THROUGH ONLINE GAMES OR THROUGH ADDICTIVE APPLICATIONS THAT CONVERT HARD CURRENCY INTO ‘VIRTUAL GOODS’. FACEBOOK HAS INTRODUCED IT OWN CREDIT SYSTEM OF ‘FACEBOOK CREDITS’ AND IS IN THE PROCESS OF REVAMPING ITS VIRTUAL GIFT SITE. “Now, people playing social games such as virtual agriculture simulation Farmville on facebook are using real cash to purchase game dollars for additions to their farm. Firms such as zynga, playdom and playfish are all growing fast on the back of the rise in social gaming.” bbc news.com [10]
  15. 15. IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERS Rise of Fractional Ownership AS 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 TERM CUSTOMER 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 THEN CHOOSE 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]
  16. 16. IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERS From Products to Experiences AS ATTITUDES TOWARDS PHYSICAL PRODUCTS EVOLVE WE WILL SEE A RISE IN DEMAND AND VALUE FOR SERVICES, AS PEOPLE PREFER TO SPEND THEIR MONEY ON NON PHYSICAL PRODUCTS OR EXPERIENCES. WE HAVE ALREADY SEEN A CONTINUAL RISE IN THE PERCENTAGE OF HOUSEHOLD BUDGETS SPENT ON SERVICES IN COMPARISON TO DURABLE PRODUCTS OVER THE LAST 20 YEARS IN THE UK. SEE TABLE. AS A RESULT MORE COMPANIES ARE ALREADY INVESTING IN BUILDING SERVICE LED REVENUE STREAMS. -  MERCEDES BENZ DRIVING ACADEMIES - GERBER BABY FOOD COMPANY OFFERING INSURANCE Source UK Gov statistics. 2009
  17. 17. IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERS From Products to Experiences PUBLIX SUPER MARKETS, INC. (A U.S. SUPERMARKET CHAIN RANKED NO. 9 ON FORBES 2009 LIST OF AMERICA'S LARGEST PRIVATE COMPANIES), IS EMBRACING THE PRODUCT TO EXPERIENCE IDEOLOGY. PUBLIX CURRENTLY OPERATES 5 COOKING SCHOOLS AS PART OF ITS APRON'S FAMILY. CLASSES ARE DESIGNED FOR BEGINNERS TO THE EXPERIENCED COOKS WANTING TO EXPAND THEIR REPERTOIRE. FEATURING RENOWNED CHEFS, AUTHORS AND COOKING CELEBRITIES, CLASSES ARE DESIGNED TO TEACH EVERYTHING FROM BASIC TECHNIQUES TO WINE PAIRING. http://www.publix.com/aprons/schools/cookingschools.do
  18. 18. IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERS Dematerialism Services THE SERVICE ECONOMY IS ADAPTING TO THE FRESH DEMANDS OF THE DEMATERIALIZED WORLD. SERVICES LIKE’ IPODMEISTER’ PROVIDE A SERVICE WHICH WILL DIGITIZE YOUR RECORD COLLECTION, ENABLING YOU INCREASED ACCESS AND FREEING UP PHYSICAL SPACE IN THE HOME http://www.ipodmeister.com/ [13]
  19. 19. IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERS Changes in Distribution WE HAVE ALREADY WITNESSED HOW A CHANGE IN DISTRIBUTION OF PRODUCT MUSIC CAN TURN AN INDUSTRY ON ITS HEAD. DEMATERIALIZATION IS CURRENTLY ‘GAME CHANGING’ THE VIDEO/DVD INDUSTRY WITH NEW PLAYERS LIKE NETFLIX MAKING LIVE STREAMING THE FUTURE DELIVERY CHANNEL FOR FILM. CAN YOU FORESEE HOW A CHANGE IN THE DISTRIBUTION OF YOUR PRODUCT AND SERVICE COULD DRAMATICALLY ALTER YOUR INDUSTRY OR BUSINESS. ARE THEIR 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 a lot bigger when streaming means less operational complexity.” Reuters, Jan 2010 [14]
  20. 20. IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERS Insurance and Recovery Services AS OUR MOST VALUABLE POSSESSION DISAPPEAR FROM THE TANGIBLE WORLD INTO IN THE VIRTUAL REALM (PHOTOS, BOOKS, MOVIES, MEMORIES, MUSIC, ART…) WE NEED VIRTUAL STORAGE: WHAT HAPPENS IS YOU LOOSE YOUR ‘DEMATERIALZSED’ POSSESSIONS. HARD DRIVES WILL BECOME SUPER-VALUED. THE INCREASE IN DEMATERIALIZED POSSESSIONS IS LIKELY TO FUEL A GROWING DEMAND FOR BACK UP AND MANAGEMENTS SERVICES. EXPECT TO SEE DIGITAL RECLAMATION AS A GROWTH SECTOR AS SEEK TO RECOVERY LOST FILES. “Responding to this change in habits is vital, and our research also shows that there has been an increase in the number of people wanting cover for their digital downloads. That's why, since January 2009, our customers have enjoyed £2,500 digital download cover as standard.” More Than insurance company website [15]
  21. 21. IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERS 1.  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/PDF 3.  Cloud computing http://en.wikipedia.org/wiki/Cloud_computing 3. ‘The internet of Things’, IBM Social Media. http://www.youtube.com/watch?v=sfEbMV295Kk 4. Counsel Thought Leader Research, Future of Mobile Devices, June 2009 5. 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 2010 http://www.telegraph.co.uk/news/worldnews/europe/austria/7190750/Millionaire-gives-away-fortune-that-made-him-miserable.html 7. 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/20053039 9. 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.stm 11. http://www.kuhleasing.ch/ 12. http://www.evolvingvox.com/ 13. Ipodmeister. http://www.ipodmeister.com/ 14. Reuters News, January 28, 2010 15. More Than insurance http://www.morethan.com/Pages/Products/Home/DigitalInsurance.aspx
  22. 22. IMMATERIAL WORLD FUTURE SIGNS LOWE COUNSEL LOWE AND PARTNERS THIS PRESENTATION IS MADE TO YOU STRICTLY ON THE FOLLOWING UNDERSTANDINGS: ALL RIGHTS ARE RESERVED TO LOWE COUNSEL. NO PART OF THIS PRESENTATION MAY BE REPRODUCED, STORED IN A RETRIEVAL SYSTEM, OR TRANSMITTED, IN ANY FORM OR BY ANY MEANS, WITHOUT THE PRIOR PERMISSION IN WRITING OF LOWE COUNSEL. THIS PRESENTATION CONTAINS MATERIAL WHICH IS OF A CONFIDENTIAL NATURE WHICH IS THE PROPERTY OF LOWE COUNSEL AND YOU WILL NOT DIVULGE ANY OF THE CONTENTS TO ANY PERSON OTHER THAN TO YOUR EMPLOYEES OR ADVISERS WHO ARE REQUIRED AS A MATTER OF NECESSITY IN THE COURSE OF THEIR DUTIES TO RECEIVE AND CONSIDER THE SAME FOR THE PURPOSES OF EVALUATING LOWE COUNSEL, ITS PRESENTATION AND ANY RELATED PROPOSALS AND THEY WILL BE INFORMED BY YOU OF THE CONFIDENTIAL NATURE OF THE MATERIAL. YOU WILL NOT USE OR EXPLOIT ANY OF THE CONTENTS OF THIS PRESENTATION FOR ANY PURPOSE OTHER THAN TO EVALUATE LOWE COUNSEL, ITS PRESENTATION AND ANY RELATED PROPOSALS AND IN PARTICULAR ANY DESIGNS, IDEAS OR CONCEPTS PUT FORWARD BY LOWE COUNSEL MAY NOT BE USED BY YOU AS PART OF ANY SUBSEQUENT ADVERTISING CAMPAIGN WITHOUT THE EXPRESS WRITTEN CONSENT OF THE LOWE COUNSEL.
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