Harmonisation of digital life - Innovation in devices, mobility and connectivity continue to drive the way we use everyday services, socialise and communicate.

1. TECH HARMONISATION
TRENDS OF DIGITAL LIFE
Harmonisation Innovation in devices, mobility and connectivity
continue to drive the way we use everyday
of Digital Life services, socialise and communicate.
Consumers’ increasing desire to organise These requirements are no longer just
their digital content, access it seamlessly for the early adopters and technology
from different devices and to store enthusiasts. In fact, more than ever, with
everything in one place is transforming how the continuing popularity of smartphones
we live. Introducing connected consumers and other connected devices, this year will
who demand: be all about bringing the technology to the
masses. Here we present five consumer-
• To be online, and for their connection
led trends and their influences on the
to be seamless and integrated across
technology solutions that are enabled by
all devices
the digital ecosystem.
• Excellence as standard in terms of
available content and user experience
• Effortless access to content and
recommendations, safely and securely
• Harmonisation of their digital life, cross
platformisation throughout their entire
digital world

2. Harmonisation of Digital Life
ECOSYSTEM 2.0
This year the shift in focus will be from device
platform (OS) to accessing content via cloud-based
services. Device and OS are still important but
cloud-based services, the user experiences that
allow cross-device access to your digital life and digital
content, will play a vital role in managing people’s
digital life and driving greater loyalty. New entrants
to the market, providers who don’t necessarily own
an operating system, are presenting solutions to
consumers from a cloud perspective and changing
the face of the industry.
Mass market consumers are arguably even more
demanding than early adopters in terms of needing
solutions to work ‘straight out of the box’. Often
they are less engaged and less willing to customise
and manage the integration of their digital lives
themselves. Understanding the needs of these
consumers and their expectations of technology
solutions is paramount.

3. Harmonisation of Digital Life 7
1
Redefining Value
REACHING
THE CLOUD
Consumers increasingly realise that it’s not
just about best price – it’s about best value.
2012 is finally the year that cloud-based solutions Future Implications will tie consumers into digital ecosystems
will creep into the mainstream. This trend is driven but we may see the rise of a new business
by the ever-increasing use of smartphones, connected Most consumers still have a fragmented opportunity around the management of
devices and other advanced mobile applications, management of digital content. For these digital life for a fee.
customers simplicity and value are key. This The market for cloud-based mobile
in addition to the vast amount of content that has
year demand for cloud-based solutions will applications is expected to boom but the
become integral to consumers lives. As digital increase and the industry needs to educate big question is going to be usability versus
content increases consumers will seek services that consumers, not just high tech early adopters security. Consumers may be willing to pay
can dive into their personal data and effortlessly but everyday digital users, and explain how for peace of mind and guidance thereby
deliver content. they can organise their digital lives. providing an opportunity for premium
Cloud solutions offer internet-based computing The opportunity to target consumers secure and personalised service.
where shared information, software, and resources with cloud-based solutions is not just about
are accessible on demand. This is an essential shared content; it’s about ease of access.
35% of people globally say they would be
development to complement the ecosystem as it
prepared to pay more for products that
facilitates consistent service usage and storage make their lives easier (Source: GfK Roper
across any device. Cloud computing gives consumers TrendKey™ 3.1). For cloud-based services,
ease of access to all of their information without ‘easier’ means running in the background,
having to update all devices to one OS. a service that syncs content without the
consumer having to deal with complicated
settings or an unreliable service. Most
advances in technology are not widely
understood and, as such, tech companies
need to translate technology solutions into
consumer benefits. Cloud-based solutions

4. Harmonisation of Digital Life 9
2
Satisfaction
EXCELLENCE
AS STANDARD
In a world where consumer is king, they expect
to feel like one now and again, and demand royal
treatment from companies.
Not only do consumers want to buy perfect devices to Future Implications However, there are some key benefits
access their well-managed, easily-accessible content. that come from the traditional app store
They also want consistent high quality and a seamless In a world of never-ending new devices, screen such as discoverability and seamless ‘push’
user experience no matter what the device, where sizes and increased cross-platformisation, notifications. These functions improve
HTML5 is worth its weight in gold for the availability of content, the usability of
they are or what they are doing. Perceived satisfaction
consumer experience. Even better, it is simple products and services, and most importantly
of experiences and services will drive future purchase for developers and therefore easily-accessible. the quality of the experience. Big players will
decisions and, therefore, customer value. It will give everyday consumers the chance also compete against this model by offering
With smartphone penetration reaching new to have an excellent user experience as developers greater integration into their
highs and ownership of tablet computers becoming standard, without all the hassle and expense operating system in return for not doing
increasingly mainstream, more consumers are of having to update all of their devices. The web-enabled Web apps.
accessing content from a greater range of devices. introduction of HTML5 has already led to the The high expectations of consumers
demise of Flash which has become obsolete in should not be taken lightly. It is important to
HTML5 can offer a dynamic experience, incorporating
the mobile market. remember that we’re all influencers now. 34%
visuals, pictures, video and menu systems allowing
A further development of HTML5 is the of people globally agree with the statement
the user to control their experience of online use of the code alongside cloud technology ‘I go out of my way to tell other people about
content as opposed to being pushed through a to create app-like functionality for browsers. products and services that I really like’ (Source:
more traditional linear format. The code also allows This is significant as apps continue to be GfK Roper TrendKey™ 3.1).
developers to create visuals that use the same design, popular and integral to transforming the The use of blogs, forums and review sites
layout, and functionality across different platforms by user experience and driving consideration provide consumers with a whole new world
automatically adjusting to the screen size. and loyalty to operating systems, thereby of influence. The power of ‘word-of-mouth’
dictating device choice. With these new is well-documented but when the message
app stores, smaller players could enter the is negative the impact can make or break
market to compete with the traditional OS a product, brand or service in an instance,
app model. whether based on fact or not.

5. Harmonisation of Digital Life 11
3
Experience
SEAMLESS
EXISTENCE
As consumers become more sophisticated, the
focus turns from “what I’ve got” to “what I do.”
The internet has emerged as the key enabler in a Future Implications Not only are people using their PC’s
wireless ecosystem based on mobile devices being in the home but even laptops and tablets
connected to facilitate real-time communication. Differentiation for operators to monetise the are increasingly housebound and used as
Data-heavy services providing content & lifestyle smartphone market has been tough but in localised mobile devices, becoming part of the
the coming months value add will hold the home ecosystem. Developments in internet-
offerings are capitalising on this trend, but operators
key. There is an opportunity for operators enabled TVs are also growing rapidly and they
are finding it difficult to manage the increasing to take advantage of their relationship are quickly becoming the fourth screen in the
gap between data growth and data revenue. The with the consumer. Offering enhanced data ecosystem of connected devices.
importance of being connected socially and the need connectivity by subscription rather than by
to share experience in real-time is a significant driver device will be the operators’ business model
of augmented data usage. in the future – one connection for all devices,
The importance of being connected socially and all access points, whatever the location.
having a constant connection has implications for Consumers don’t care about data size, 3G
and 4G, switching between Wi-Fi etc. They
providers. Operators have introduced mobile-to-
simply want a seamless service. That’s a big
Wi-Fi roaming as a stopgap until 4G is rolled out challenge for operators because even 4G may
which enables automatic switching when a Wi-Fi not be able to cope as technology advances,
hotspot is located. This relieves pressure on current there will always be an upper threshold as
networks and provides an improved seamless service data demands continue to grow.
in terms of managing that data connection. It is not just mobile connections. The
desire for fully integrated in-home experience
is set to rise this year. 53% of females and
46% of males agree with the statement ‘I
enjoy spending a lot of my free time at home’
(Source: GfK Roper TrendKey™ 3.1).

6. Harmonisation of Digital Life 13
4 RIGHT HERE
RIGHT NOW
Instant Everywhere
What do I want? Everything.
When do I want it? Now!
Demand for instant gratification is not a new trend, Future Implications Providers will be able to piece together your
but advances in technology enabling tailored, instant exact location at any point, your purchase
and relevant information means that expectations are LBS will change the way we buy. Impulse history, your profile, your life every day,
on the rise for instant everywhere. The demand for purchases won’t be inspired by at-the- every year, and essentially they will be able
counter deals but from technology that to map your life.
deals and discounts has also been a widespread trend,
provides relevant content to consumers
no longer a sign of parsimony but something to be based on geo-marketing. This will
celebrated and shared. be further enhanced by Near Field
A location-based service (LBS) is an information or Communication (NFC), a technology that
entertainment service which is accessible through the allows devices to instantly and securely pass
mobile network and utilises the geographic position of information over a short distance, enabling
the mobile device. Location adds relevance for users, payment by simply ‘tapping’ a reader.
which is a key consumer trend, and offers a new way to Increasingly advertisers will use
location-based services to offer relevant
advertise products and services based on location.
discounts to get consumers into a store.
If payment is made through NFC the
purchase information is fed back to the
provider. This two-way activation of data
will mean that rather than just being a
mechanism for payments, NFC could also
be a data collection tool that holds the key
to targeted advertising towards customers
offering personalised benefits. However,
the main concern for many people will be
the detail of the information collected.

7. Harmonisation of Digital Life 15
5
Streamlined
GATE
KEEPERS
Less is more for some, but others just want to
bring a little order to their cluttered lives.
Consumers increasingly expect a convenient streamlined Future Implications providers, both established and new players
concierge service – someone to push personalised, in the market, will pose a real threat.
interactive content and recommendations. But on the The trade-off between the consumer The EU is currently revising its privacy
flip side people are also waking up to the reality of how advantages of personal data aggregation policy and wants to introduce a ‘right to
and the heightened level of ‘intrusion’ will be forgotten’. This could have a significant
much personal information they store online and the
be a growing concern this year. Trusted impact on online companies so consumer
privacy issues it presents. While consumers will continue brands will be in a strong position to privacy issues need to be managed
to embrace seamlessness, many will also place a premium balance ease of access and usability with effectively or face strict regulation as well
on feeling safe and secure. growing security concerns. 37% of the as a consumer backlash.
The data privacy concern for consumers is that global population agree with the statement
individually, pockets of data with different hosts may feel ‘It is better to buy well-known brands
safe and anonymous (e.g. your bank to hold your personal because you can rely on their quality’. This
details, your internet provider to collect online activity, is particularly true of men. (Source: GfK
Roper TrendKey™ 3.1).
your social network to monitor your behaviour). However,
Operators may have an opportunity to
if this information is brought together it paints a rich go beyond data and network connection
picture that could potentially breach personal privacy. to realise a whole new revenue stream. By
There must be an evolution in how customers capitalising on their image as a ‘trusted
approach technology as a response to the threat posed advisor’, and providing the seamless
by digital footprints to personal privacy. Consumer focus connection consumers so desire, operators
may currently be geared towards content and experience, will be in a strong position to affiliate
but security will be a key driver of loyalty in the future. with partners who will help to streamline
Produced by GfK in association with GfK Roper Consulting
consumer experience whilst providing
People will eventually want to set permissions with one TrendKey™ 3.1 is a Roper Consulting product that provides a set
customers with a safe and secure solution
‘gate keeper’ to manage their digital lives to their digital lives. However, other service
of actionable and research-based trends. For more information
please contact techtrends@gfk.com