namic 2015 - consumer and technology trends
TRANSCRIPT
Tech Statistics that Drive Consumer Behavior.
Phil Reynolds
Phil Reynolds CEO
BriteCore / IWS
Springfield, MO
Technology is Moving Faster Than Ever!
Moore’s Law • Gordon Moore co-founder of Intel
• “Transistor density will double every 2 years” • 1965 prediction has held true for 50 years
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Kurzweil’s Law of Accelerating Returns
“The returns of an evolutionary process increase exponentially over time.”
Kurzweil’s Law of Accelerating Returns
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Gen 1 Gen 2 Gen 3 Gen 4 Gen 5 Gen 6
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Exponen4al
Kurzweil’s Law of Accelerating Returns
0 2,000,000 4,000,000 6,000,000 8,000,000
10,000,000 12,000,000 14,000,000 16,000,000 18,000,000
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Exponen4al
16,777,216 x
512 x 524,288 x
1969 NASA Apollo Missions • IBM System/360 Model 75 • $3,500,000 • 200,000 FLOPS • 64,000 bytes memory • 43kHz processor
2015 Modern Smartphone • iPhone 6 • $750 • 115,000,000,000 FLOPS • 1,000,000,000 bytes memory • Dual Core 1.38 GHz processor
2015 Modern Smartphone • 576,000 Times Faster • 8 Watts Power • Super Computer, Internet
Access, GPS, Camera, Communications, Sensors, etc.
Trends in Consumer Behavior
1. Mobile Device Adoption 2. Frictionless User Experience 3. Internet of Things 4. Pay Per Use
1. Mobile Device Adoption
Go Mobile
Mobile technology has risen FASTER than ANY other technology in recorded history.
Go Mobile
Mobile device adoption is growing
8 TIMES FASTER Than internet adoption did in the
1990s and early 2000s.
Go Mobile
Smartphones have integrated into our lives faster than any technology in history. Ownership has grown by 71.1% year over year.
64% of Americans now own smartphones.
Go Mobile
39%
50%
56% 61%
64%
72%
78%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2011 2012 2013 2014 2015 2016 2017
Percentage of Population with Smart Phone
US Smart Phone Adoption
207m
Mobile and Remote Access Tablet ownership is currently exploding as the power of these devices grows. Ownership has grown by 78.9% year over year.
40% of adults now own tablets.
Go Mobile
11%
29%
40% 43%
48%
54%
60%
0%
10%
20%
30%
40%
50%
60%
70%
2011 2012 2013 2014 2015 2016 2017
Percentage of Population with Tablet
US Tablet Adoption
106m
Go Mobile
At 7.5 billion units, there are more active
mobile devices on Earth than people.
Go Mobile
The average smartphone user
spends 4.7 hours a day using their mobile device.
Go Mobile
of all web traffic now comes from mobile devices.
33%
Go Mobile
of all Google Searches now originate from a mobile device.
51%
Go Mobile
of smartphone users will not recommend a business with a poorly designed mobile site.
57%
Go Mobile
of smartphone users view brands with mobile apps more favorably.
64%
Go Mobile
Of mobile device users make direct purchases or research purchases regularly using their mobile device.
90%
Go Mobile
Mobile is Big.
Go Mobile
“How do I engage mobile?”
Go Mobile
1. Responsive Design
Responsive Design • Page layout adapts to the size of the screen. • Elements remain large and targeted • Frequently filter unneeded elements • Bootstrap is a popular framework.
Go Mobile
2. App vs Mobile Web
Definitions
• Mobile Web – Applications delivered over the internet that are viewed through a mobile web browser.
• Mobile Apps – Applications downloaded to a mobile device that install and run natively on the device
Mobile Web
(Pro) Distribution – Universal Through Browser (Pro) Cost – 25% to 50% of Native App Cost (Con) Features – Limited Access to Device (Con) Internet – Online Required (Con) Exposure – Competing for 20% of Users Time
Mobile Apps
(Con) Distribution – App Store (Con) Cost – 200% to 400% of Mobile Web Cost (Pro) Features – Full Access to Device (Pro) Internet – Offline Usage with Background Sync (Pro) Exposure – Competing for 80% of Users Time
Which is for you?
• Mobile App – If you want to deliver a rich user experience and can afford it.
• Mobile Web – If you want to offer mobile access on a budget.
• The best companies offer BOTH.
Go Mobile
3. Target Mobile Moments
Mobile Moments
When a user is on the go and wants to know or accomplish
something in the moment
there is an opportunity to build trust, and loyalty.
Example Mobile Moments Whose Moment? What’s their Motivation? Example
Insured Learn about a product What does it cost to add an ATV to my insurance policy?
Insured Receive service assistance A tree fell on my house. I need to file a claim with my insurance company.
Agent Check on Policy Status Is that policy issued or do I need to give the insured feedback?
Agent Review Income What was my commission payment last month?
Staff - Underwriter Efficiency What policies do I need to review tomorrow?
Staff - Claims Adjuster Serve Customer Better Submit authority override request in the field.
Opportunities • Build mobile interactions targeted at device capabilities. • Keep apps simple and focused on user needs. • Target functionality to create mobile moments for insureds,
agents, and employees.
2. Frictionless User Experience
Consumers want interactions to feel quick and effortless.
Frictionless UI
of people expect a web page to load in 2 seconds or less.
47%
Frictionless UI
of people will abandon a page that takes longer than 3 seconds to load
40%
Frictionless UI
of people cited a website or app’s design as the number one factor in
deciding the credibility of a business
48%
Frictionless UI
of online shoppers claim that quick page loads are important for their loyalty to a site.
52%
Frictionless UI
of online consumers are less likely to return to a site after a bad experience.
88%
Frictionless UI
Conway’s Law “Any organization that designs a system will produce a design whose structure is a copy of the organization's communication structure.”
-- Melvyn Conway, 1967
Conway’s Law
Conway’s Law
Conway’s Law
Conway’s Law
User needs come first. Organizational design is secondary.
Frictionless User Experience
User Experience “How it Works”
• Layout • Interaction • Information Architecture • Wireframing • Prototyping • Research • Testing
Mozilla UX Redesign
70% Reduction in Support
Frictionless User Experience
User Interface “How it Looks”
• Typography • Color • Form • Illustration • Photography • Detail
7 Principles of Usability • Simple – Don’t make me think! • Minimal – What you need, only what you need • Clean – Margins, white space, typography • Focused – Primary actions should be big and easy to find • Familiar – Use and recycle familiar patterns • Responsive – Offer feedback for every action
Great UX Example: UBER
1,000,000 rides per day
API Economy
API Economy • API stands for Application Program Interface. • Allows services to communicate with each other
programmatically. • Runs over standard and universally accessibly http.
API Economy http://www.myapp.com/v1/getUser?userId=1a554ddf2
{“id”: “1a554ddf2”,“firstname”: “Phil”,“lastname”: “Reynolds”
}
API Economy • Public APIs - 5,000 in mid 2013 to 10,000 in 2015. • Netflix API receives over 5 billion requests per day • Over 1,000,000 sites and apps use the Google Maps API. • Since 2002, Amazon Web Services. $6.2 billion in revenue
and 5x the capacity of next 14 competitors combined. • 2013 - 1.5 billion API calls. Up from 500 million in 2012.
350 million endpoints globally.
API Economy • APIs are emerging and maturing at an incredible pace. • There are tremendous business opportunities for
businesses that connect services via API to deliver a seamless User Experience.
APIs you can leverage today • Location Services • Property Valuation • Payment Gateways • Credit Scoring • Tax Records • Protection Class • VIN and DMV lookups
• Mortgagee Notification • File Storage • Telecommunications • Screen Share and Video • Help Desk • Social Media • Hundreds More……
Opportunities • Offer a great User Experience that addresses customer
needs intuitively. • Build beautiful, clear User Interfaces. • Offer an API that allows other services to connect to you. • Connect APIs to add value to your services. • Automate and bridge everything you can to offer a
smooth, intuitive experience for insureds, agents, and employees.
3. Internet of Things
Internet of Things • Cloud of devices connected to the internet
• Sensors everywhere on everything
• Connected devices can access information
• Connected devices can publish information
• Convert information into action
Internet of Things • 2 Billion Embedded Systems – 2012
• 4.9 Billion Embedded Systems – 2015
• 25 Billion Embedded Systems – 2020
*Source: h"ps://www.ncta.com/pla:orm/industry-‐news/infographic-‐the-‐growth-‐of-‐the-‐internet-‐of-‐things/
Many Companies Built on IoT
Categories • Commercial Buildings • Energy Management • Consumer and Home Automation • Industrial Equipment • Transportation • Retail • Security and Safety • IT & Networks
Smart Devices are coming to homes and businesses.
Nest Thermostat
Samsung Smart TV
Amazon Dash Button
Awair: Air Monitor
Netatmo Welcome (Face Recognition)
Roost Smart Batteries
Nest Cam
Insteon Hub Pro (Siri)
Kinsa Smart Thermometer
Deeper Portable Fish Finder
Rachio Home Watering
Click & Grow Indoor Planter
Withings Blood Pressure Monitor
Fitbit Surge Fitness Tracker
Tagg Plus Pet Tracker
August Door Lock
Nest Protect Smoke Alarm
PeebleBee Tracker
Apple Watch
LeakSmart Water Shutoff
Wally Moisture Sensor
LG Washer / Dryer
Samsung Refrigerator
Kohler OnCue Generator
AgaMatrix Blood Glucose Monitor
Withings Body Scale
Nuvant ECG
Smart Concrete
Roomie
Microsoft Hololens
Amazon Echo Gateway (Alexa)
Using APIs to Connect Devices • IF moisture is detected THEN shutoff water main
• IF motion is detected THEN send message and alarm
• IF Carbon Monoxide detected THEN turn off fireplace
• IF I leave the house THEN lock the doors
• IF temperature drops THEN send message and shutoff water
Opportunities • Rating Discounts / Surcharges
• Segment Risks Better
• Exclusions Based on Conditions
• Loss Prevention via Sensors
• Correlations in Data
• Develop Entirely New Products and Services
4. Usage Based Pricing & Membership Culture
Usage Based Pricing & Membership Culture • The Traditional American Dream isn’t the Millennial Dream.
• Ownership, retirement, stability are not valued like they were by previous generation.
• Community, experiences, sharing, and sustainability are much more important.
• Value experiences over things.
• Frequently prefer membership over ownership.
Entertainment
Netflix Subscribers
Hulu Plus Subscribers
Pandora Users
Spotify Users
Vacation Rentals
Vacation Rentals • 32% of travelers have stayed in a vacation rental in 2012
• 59% of travelers plan to stay at a vacation rental in 2016
• Online travel climbed from $99 billion in 2010 to $144.7 billion in 2015 fueled by vacation rental growth
AirBNB
SaaS Software
SaaS Market
$43.00
$56.00
$72.00
$87.00
$106.00
$0
$20
$40
$60
$80
$100
$120
2012 2013 2014 2015 2016
Billion
s
SaaS Revenue By Year
SaaS Softaware Revenue
SaaS Software • Global SaaS revenue projected to be $106b in 2016
• By 2018, 59% of the total computer workloads will be SaaS workloads, up from 41% in 2013
• SaaS is replacing most traditional software models
Transportation
Zipcar Members
673,000
777,000 818,000
860,000
930,000
500,000
600,000
700,000
800,000
900,000
1,000,000
2011 2012 2013 2014 2015
Members
SaaS Softaware Revenue
Lyft
Lyft passed 100,000 drivers in 2015.
Spinlister
Spinlister anticipates 1,000,000 bike listings by end of 2015.
Uber
• Over 8,000,000 users • 1,000,000 rides a day • 160,000 Drivers • 290 Cities
IT Infrastructure
IaaS Statistics • 93 percent of organizations are running applications that
reside within an infrastructure-as-a-service network.
• 82 percent of enterprises have a hybrid cloud strategy, up from 74 percent in 2014.
• 88 percent of organizations are using public cloud while 63 percent use private cloud.
• 22 percent of organizations run more than 1000 VMs in private cloud.
Microsoft Azure • $15B spent on Cloud infrastructure
• 1,000 new Azure customers per day
• 400B authentications on Azure AD
• 10 Trillion objects stored on Azure
• 1 Million servers in Data Centers
• 50% of Fortune 500 Companies use Azure
Amazon Web Services • AWS adds enough new server capacity daily to support all
of Amazon’s global infrastructure n 2004. ($7b revenue)
• AWS offers 5x the compute capacity of the other 14 cloud providers combined.
• AWS revenue is now $6b a year. More than the next 4 providers combined.
• AWS 5 million servers spread across 87 data centers.
Auto Insurance Telematics
Snapshot
Drivewise In-Drive
Onboard Advisor
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Telematics Statistics • Telematics study at ISO reveals the riskiest 20% of
operators’ claim costs were 10x higher least risky 20%.
• 36% of auto insurance carriers expected to utilize telematics by 2020.
Pay Per Mile
Opportunities • Point of Sale at the Moment of Decision (Mobile Moment!) • Charge Per Mile, Day, Rental Hour, etc. • Use Connected Devices to Measure and Track • Adversely Select Against Competitors Using Generic Data
Models • Offer Entirely New Products
Recap 1. Engage mobile 2. Offer well-designed user experiences that connect
services via API 3. Build infrastructure to consume and model the data
streaming in from embedded devices 4. Connect all the pieces to offer true experience-based
products and services.
Questions? [email protected]