2014 Dublin Web Summit by Jeff Haynie
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The document discusses how mobile is replacing the web and driving an evolution towards an "experience economy". Some key points made include: - Mobile penetration now exceeds 93% globally, with mobile built for intuitive user experiences - There is no longer a distinction between business-to-consumer, business-to-business, etc. but rather a focus on "business-to-user" - Companies need to build great user experiences across any device quickly to succeed in this new mobile environment - The "device explosion" has eliminated the Windows monopoly, with 81% of companies now building for multiple operating systems
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2014 Dublin Web Summit by Jeff Haynie
- 1. Mobile & The New Experience Economy JEFF HAYNIE, CO-FOUNDER & CEO @jhaynie
- 2. Mobile is replacing the web. THE ELEPHANT IN THE ROOM What the business will pay for.
- 3. 7,095,476,818 TOTAL WORLD POPULATION 2,484,915,152 INTERNET USERS 6,572,950,124 MOBILE SUBSCRIBERS 52% 48% URBAN RURAL 35% INTERNET PENETRATION 93% MOBILE PENETRATION JANUARY 2014 SOURCE: We Are Social. wearesocial.sg.
- 4. WHY?
- 5. “Do as I say.” “Do as I say.” MOBILE IS BUILT ON INTUITIVE USER EXPERIENCES
- 6. DEAD DISTINCTIONS C B2C B B2B E B2E
- 7. THERE’S ONLY ONE “U” C B2C B B2B E B2E U BUSINESS-TO-USER
- 8. “Delight is the new normal.” –GEOFFREY MOORE AUTHOR, CROSSING THE CHASM AND ESCAPE VELOCITY
- 9. THE PROGRESSION OF ECONOMIC VALUE 1 0 MARKET PREMIUM PRICING Extract commodities Make goods Deliver services Stage experiences DIFFERENTIATED COMPETITIVE POSITION UNDIFFERENTIATED SOURCE: Pine, B. Joseph, and James H. Gilmore. Welcome to the Experience Economy. Harvard Business Review, July 1998.
- 10. A revolution in experience is driving an evolution in the stack CLIENT SERVER Early 1990s One-to-one Rich UX (GUI) Distributed computing Local Network WEB Late 1990s One-to-many Weak UX (HTML-Based) Server-centric computing Global network MOBILE Today Many-to-many Rich UX (driven by mobile OSs) Distributed computing Internet of Things 1990s TO TODAY
- 11. Data orchestration Optimized payloads Online/offline sync Elastic scale Secure access Great UX across platforms Openness to any device Apps, not applications Performance metrics Usage patterns Adoption rates Lifecycle efficacy Real-time data to drive actions THREE A’S OF WINNING MOBILE EXPERIENCES
- 12. “Apps and applications are two very different expressions of software…. The defining characteristic of an app is its reduced functional presence. Apps do less than applications. That is their goal.” –GARTNER PRENTICE, BRIAN. "THE APP AND ITS IMPACT ON SOFTWARE DESIGN." GARTNER. 18 MAY 2012.
- 13. SIMPLICITY WINS.
- 14. WHAT THE “DEVICE EXPLOSION” REALLY MEANS… THE WINTEL MONOPOLY IS DEAD 81% Companies build for more than one operating system
- 15. “Mobile is pushing aging web architectures to the brink.” – FORRESTER FACEMIRE, MICHAEL, TED SCHADLER, & JOHN C. MCCARTHY. ”MOBILE NEEDS A FOUR-TIER ENGAGEMENT PLATFORM: WEB ARCHITECTURES CAN’T HANDLE THE NEW DEMANDS OF ENGAGEMENT.” FORRESTER RESEARCH. NOV. 2013.
- 17. WANTED: THE MEANS TO BUILD GREAT EXPERIENCES ACROSS ANY DEVICE, QUICKLY
- 18. WHAT DO THEY MAKE OF IT?
- 19. ACQUISITION ENGAGEMENT RETENTION CONVERSION QUALITY OWNING THE EXPERIENCE The five mobile metrics no company should be without.
- 20. PAST: PLANNED ECONOMY PRESENT: FREE-FOR-ALL
- 21. PRESENT: PAST: PLANNED FREE-FOR-ECONOMY ALL FUTURE: ???
- 22. PRESENT: PAST: I.T. AS ENABLER OF EXPERIENCES PLANNED FREE-FOR-ECONOMY ALL FUTURE: “INNOVATION EXCHANGE”
Editor's Notes
- I want to start with a statement that may be controversial.
- Mobile is replacing the web. You may agree, disagree, or violently disagree But I think this is the elephant in the room. It’s happening right in front of our eyes, but many of us are simply ignoring it.
- The natural question is why is this happening and why is it happening at such an unprecedented pace How is it possible that the iPad, a completely new device, could singlehandedly wipe out the entire netbook market overnight and exceed PCs shipments in less than 5 years.
- The truth is that the PC was never “personal”. It requires users to conform to it. Both the computer and it’s applications are not intuitive. Training is often required. Contrast that with new mobile devices. They conform to us. They are truly personal devices that are an extension of “me”. They are always with us and they offer seamless, intuitive user experiences The key point is that we mobile is driving a fundamental shift in user experience. The impact of this shift cannot be overstated. The picture on the right is a sign of what’s coming. I have a two year old daughter. When she was 1 she wanted to play with our iPad. I was completely astonished when I saw that she was able to unlock the iPad with a swipe, and she immediately started swiping through the pages of apps and touched the one that looked interesting. For her generation and even those slightly older, this is the world they expect. This is a generation that does not use email at all except to write thank you notes to friend’s parents.
- We are all familiar with these distinctions: B2C, B2B and B2E. And we’ve always viewed things differently within these contexts, and typically the best experiences have been reserved for the B2C persona. But it’s clear that mobile is at a minimum blurring these lines, but more likely destroying them. At the end of the day, these are all people and they carry the same expectations with them regardless if they are at home or at work. These in effect have become dead distinctions
- Mobile is driving an entirely new distinction: B2U I think this is an important mind shift that we all need to make. The old distinctions will lead to the same old results and simply will not fly in the world of mobile. A B2U mindset is one that works to create exceptional experiences for all interactions, internal or external. It’s a mindset that applies fresh thinking to all existing processes even the boring ones.
- I think this quote from Geoffrey Moore says it all. Delight is the new normal. Exceptional experiences are quickly becoming table stakes. For those that take this seriously, mobile will prove to be an amazing opportunity. For those that don’t, it will prove to be an significant threat.
- I’ve talked about how mobile is replacing the web and experience has become critically important, but I think there’s a broader shift taking place. Fifteen years ago, B. Joseph Pine and James Gilmore predicted the rise of the Experience Economy in a Harvard Business Review article. The basic premise is that business are facing a commodification of almost every kind of good or service, which will drive companies to offer exceptional experiences as it becomes the only means of differentiation We are beginning to see this play out today. Apple is arguably the best when it comes to delivering exceptional experiences and they have gone from near bankruptcy to the most valuable company on the planet. The other interesting thing to note is that winning in the experience economy does not require a company to be large. Look at Instagram, Square, Uber and WhatsApp. These are all small companies each worth billions of dollars. While these are all consumer companies, they serve as leading indicators of what’s to come for the broader market. One of the things that is making this possible is that scale itself has largely been commoditized. In fact, in many cases, size has become a competitive disadvantage, so larger companies need to figure out ways to act like smaller companies. To innovate, and to innovate quickly. So mobile is driving something much deeper than the need to create great apps. It’s changing what companies must do to be successful. The next question is what does all of this mean for IT?
- The other thing that IT must grapple with in addition to changing macro landscape Is that mobile is fundamentally driving an evolution in the enterprise stack
- So let’s talk about the first “A” apps a little bit and some of the changes that are being driven by mobile. First, we need to understand that apps are fundamentally different from traditional applications. While applications tend to be large and complicated Mobile apps are focused and do less. This is necessary because it’s the only way to deliver a great user experience.
- The bottom line: Simplicity wins We have to learn to do less and accept that we are going to have more apps not less.
- Our recent IDC survey echoes Forrester’s view with nearly 35% saying their existing web architectures will not work for mobile. Let’s take a closer look at some of the mobile-specific needs that companies are struggling with: #1. Data format is not mobile optimized. Many existing web APIs return data in XML or SOAP, but JSON is the format of choice for Mobile #2. Data payloads are not mobile optimized. Web APIs were built for desktop apps, so their payloads are much larger than what’s needed for mobile. #3. Mobile connectivity can be spotty, so offline and sync use cases must be supported #4. Mobile is driving new usage patterns. Since our devices are always with us, usage tends to be 2-5x higher than desktop web. This means elastic scale is even more critical The other requirement not mentioned in the survey results is data orchestration. Mobile apps often leverage many data sources often residing in different locations. APIs need to do this orchestration. You certainly do not want your mobile apps doing it.
- Now let’s explore the third A – analytics. Once you have mobile apps in the field. You need to think about how you measure ROI and how you determine what features to add, what bugs to fix and features to remove
- From a business metrics standpoint, I would focus on 5 key metrisc: Acquisition. This metric represents reach or how many users have used your app Engagement. How engaged are your users. How long do they stay in the app. What features do they use/not use Retention. Do you users come back. How often do they come back: daily, weekly, monthly Conversion. This is about the % of users that complete key use cases in your app. This is absolutely critical to measuring ROI and identifying where and why users do not convert Quality. Does your app crash. If so, how often and on which platforms. What is causing the crash. What is the load time of the app. If it’s too long users will simply delete your app. IT should be thinking about how to offer these metrics to their customers
- So back to our original state of IT slide. We know where IT has been and we know where it is today.
- The question is what is the role of IT in the emerging experience economy that is being driven by mobile
- I think the future state of IT looks something like an innovation exchange or hub. Where IT does not necessarily deliver everything. Instead they serve as an enabler of experiences By offering a set of common reusable services that enable the line of business, internal developers, and third parties like ISVs, other businesses and developers to innovate. And as we discussed the key to enabling great experiences in the mobile age is to have a robust offering centered around Apps, APIs and Analytics.