UX STRAT 2014: Theo Forbath, "The Role of UX in Defining the Future of Products, Brands and Business...

© 2014 Cognizant

The Revolution Will be Digitized! The Role of UX in Defining the Future of Products, Brands and Business Strategy

Theo Forbath, Global Vice President, Digital Transformation September 2014

[email protected]

@theoforbath

mailto:[email protected]

| © 2014, Cognizant

1960 1970 1980 1990 2000 2010 2020

My career – managing innovation in businesses

through technology shifts…

Mainframe

Minicomputer

Distributed PC

Internet PC

The Digital

Enterprise

We are here dot…..

Business Productivity

http://www.goodlogo.com/images/logos/compaq_logo_2447.gif

© 2014 Cognizant

We are The Digital Revolution

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How businesses view the evolution

of technology, and its impact on

products, brands & personal data

How personal data and digital

exhaust shapes brands, businesses

and experiences

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The

world of products,

brands and personal

data is going through a

radical transformation…

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FROM:

A World of Things

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A World of Smart, Connected, Programmable Things

TO:

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The first wave

was About

(IM) Personal

Computing

typified

by computing

experiences

that were

immobile

and lacked

contextual

awareness

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• What’s personal and valued by users

– Their username

– Their password

– Their email address

– Their access rights

• What the network knows

– Their corporate social graph (aka their role in the organization)

– Their usage patterns based on logon and log off times

– Their privileges and access rights

• Jobs being done

– Linking people with IT assets

– Securing corporate information

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Nature of Personal Data in the 1st Wave

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The Second

wave Got

Personal Now it is about

being mobile,

always connected

and always “on”

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Nature of Personal Data in the 2nd Wave

• What’s personal and valued by users

– Their phone number

– Their social graphs (aka their contact lists,

FB friends, LinkedIn contacts, Twitter followers, etc.)

– Their photos

– Their apps

• What the network knows

– Where you are (demographics, personal likes and dislikes)

– Who you are interacting with throughout your day

– Your web footprints; search and web history

– Where you have been and where you are going to be

• Jobs being done

– Linking people together via social bonds and contact points

– Enabling digital advertising

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The third wave will be

VERY personal and

completely different…

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Credit: Frog

The third wave is

about much

more than

BYOW…it’s

about the

dematerialization

of processes

third wave. Confidential and Proprietary 2013

Credit: Frog

The third wave is about great UX design and the

seamless, contextually relevant interactions of things &

people

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4

It’s about technology diffusion, democratization and de-

capitalization…

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6

Airwaves

connected

mask –

3rd wave is

surrounding

us

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Credit: Frog


The Third Wave will adhere to us…

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Is your boss giving you a wake up

buzz on your wearable?

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Nature of Personal Data in the 3rd Wave

What’s personal and valued by users • Pre-emptive decision making based on networks of smart, connected, programmable things

• Personalized brand experiences that shift advertising to content

• Their data! Expectation that personal data has value for service providers and can be used as collateral for next generation services

• We are seeing the first examples of this trade-off of personal data for new forms of value

What the network knows • Personal metadata: likes, dislikes, preferences

• Your complete profile; medical, financial, politics, education, professional, and your face.

• The intersection of physical and digital worlds

• That there is value in arbitrating personal data

• Location information is more expensive so consumers expect higher value

• That there is value in arbitrating personal data

Jobs being done • Making activities visible and measurable in space and time

• Enhancing every action with rich context

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Will leveraging rich personal data

be the new differentiator

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Brands are no longer only defined by logos, slogans and

artifacts…

but by shaping personalized experiences


Credit: Frog

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Brand Equity is translating into Brand Trust and re-imagining

of the “Disney Magic” as park guests are sharing more

personal data than eve before…Disney’s Digital Oil

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A billion dollar investment for Disney: Next Generation Experience

Credit: Frog

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If Disney can drive more value from

existing infrastructure by layering on

technology, that is extremely powerful.

They can’t just compete by building

new rides; it’s already a theme-park

arms race out there.” The New York Times, 2013

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Digital Transformation is re-shaping your business…

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Hyper-connectivity creates hyper-disruption

as industry boundaries blur, partners become

competitors and vice versa, and ecosystems emerge

as the critical advantage

Logo mash-ups by artist Mario Amaya

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The Digital Revolution Started in the

“Industrial-Media-Entertainment Complex”…and we

get to decide where it goes from here…

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Americans are watching more movies at home than ever, yet the curtain has closed on Blockbuster

Something big is happening …

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Dislocation at the “Shift Point”

Widget Winners Digit Winners

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UPON FURTHER REFLECTION…

SOMETHING MIGHT BE WRONG

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• Many firms are configured for the past and not

unleashing their potential value

• Many will face an extinction event unless they adapt

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A NEW TYPE OF DIGITAL ENTERPRISE IS EMERGING

NEW TECHNOLOGIES ARE TRANSFORMING WORK

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SMAC it to me! The transformational industry trends we see all around us …

1. Social Computing

2. Mobility

3. Advanced Analytics

4. Cloud

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“Every business is a digital business.

Every customer is a digital customer.

AIG must evolve to compete.”

Robert Benmosche, CEO, AIG

Some client voices on Digital: CXOs

“Advances in technology and shifts in customer

expectations show no signs of abating. They bring in

their wake both disruption and opportunity. We need

to recognize that banking is a digital business.”

Simon McNamara, CAO, RBS

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“We increased our target for digital to 40%-45%

of our business. If you asked — what do I regret

about the past five or ten years? We didn't go

fast enough.”

Martin Sorrell, CEO, WPP


We’re beginning to expect

(and differentiate) on the sublime…

We’re beginning to expect

(and differentiate) on the sublime…

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…and find the ridiculous, well, ridiculous

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© 2014 Cognizant

Source: https://contractiq.com/Internet_Of_Things_Report_2014

And then there are all of those things coming online…

40

World

Population

Connected

Devices

6.3 Billion

500 Million

6.8 Billion

12.5 Billion

7.2 Billion

25 Billion

7.6 Billion

50 Billion

Connected

Devices

Per Person 0.08

2003

1.84

2010

3.47

2015

6.58

2020

More

connected

devices

than

people


Revolution in UX: “Designed by engineers” versus…

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“Designed by designers”…

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THE

50 – 50 MARKET of 2020


50 – 50

Billion Devices Times the Data

IoT IoI (The Internet of Information)


Companies are now competing on “code” and UX — the data and information surrounding people, organizations and devices; and how they create meaningful experiences…

© 2014 Cognizant

Amazon, Netflix, Apple, or Google see

our code when they “look” at us

Married, father of two

college age daughters

1st generation American

of Hungarian &

South African heritage

Lives in the People’s

Republic of Cambridge, MA

Loves jazz, world

music

“Extreme” traveler (aka 3

million mile flier)

Passionate sailor

Active collector of music

& vintage watches

Avid reader of WWII spy

novels Vegetarian

Drives jalopies

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So, when you

next walk into

a store...

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How do you

want to

connect?

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• With basic demographics?

• How you look?

• Like a cold call?

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Or can user experiences be tailored around digital footprints?

49

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Re-code UX interactions and customer relationships: “You Had

Me At 0100100001000101010011000100110001001111”

If we are online, we are creating

our own digital exhaust.

Maybe counter-intuitive, but

the digital world can create more

authentic experiences.

• Build affinity

• Externalize values

• E.g., Nike, Disney, GE, Starbucks,

Apple, P&G, etc.

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“Now any Noun… any person, place or thing…has a virtual self as well a physical self.”


Starting Points:

THE USER EXPERIENCE


From “always be closing”…

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…To “always be suggesting”

• Algorithms based on user activity

• Personal ratings • Collaborative filtering

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Personalized, curated, in-context

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…to “always be recommending”

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“Ya gotta see it!”

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Dematerialization in the customer service process

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Whom do you trust for a movie

recommendation?

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Virtual communities best professional critics

Source: Carnegie Mellon University

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© 2014 Cognizant

Market leaders are recommendation algorithm

champions – our digital guides & curators

Consumers => Prosumers

Better – Faster – Cheaper

Applications in:

• Retail

• Retail Banking

• Healthcare

• Insurance

• Life Sciences

• Media & Entertainment

• Manufacturing

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Netflix “knew” House of Cards could succeed

“In any business, the ability to see into the future is

the killer app, and Netflix may be getting close with

House of Cards. The series…is already the most

streamed piece of content in the United States and 40

other countries, according to Netflix. The spooky part

about that? Executives at the company knew it would

be a hit before anyone shouted ‘action.’”

The New York Times, February 24, 2013

AFTER

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But how? Netflix recognized the power of code

Netflix had the data, and they

crunched the numbers

• 27 million subscribers in the US;

33 million worldwide

• The director of The Social

Network, David Fincher, was

already streamed often

• Films featuring Kevin Spacey had

done well

• The British version of House of

Cards did well.

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© 2014 Cognizant

The power of code and UX insights can drive

successful new products and services

Sales

• 3 million new

subscriptions

• Passed HBO

Netflix Shares at release:

$180 Netflix Shares last

Friday: $475.68

Critical Acclaim

• 9 Emmy Nominations

(and some wins)

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www.cognizant.com

Copyright © 2013 Cognizant 63

Cognizant Confidential

• “Social” jet engine

Real-time social community with engine, GE and Airline

• 1% efficiency gain = $2 billion annual savings for airlines

200+ engine parameters per flight record

18MM parameters per month

Maintenance savings to customer

Reputation “savings” to GE

Full-loop engineering

GE is changing the game for jet engines through UX & the myEngine app

http://www.gereports.com/meeting-of-minds-and-machines/; http://www.computerweekly.com/news/2240176561/Interview-with-GEs-head-of-

software-William-Ruh

“Customers of GE engines are now buying a brand promise of no unplanned down- time….”

http://www.gereports.com/meeting-of-minds-and-machines/










http://www.computerweekly.com/news/2240176561/Interview-with-GEs-head-of-software-William-Ruh
















third wave. Confidential and Proprietary 2013 64

© 2014 Cognizant

“The digital and physical worlds are starting to come together more seamlessly — it’s only the tip of the iceberg in terms of what’s coming.” Mark Parker, CEO, Nike

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#1. Engage, communicate and interact in a simple, delightful way.

Customers are increasingly

demanding:

• World-class interface design

• Modern and sleek appearance

• Freshness and high-level of design to signify:

– Quality

– Up-to-date content / relevance

Businesses that don’t have the design capabilities in-house

succeed by partnering with world-class design firms, and

embracing the kind of deep collaboration and partnerships

necessary to make great products and services.


Customers are increasingly

demanding:

• To flow easily between the digital

and physical worlds

• To bridge devices and channels

with no borders

If retailers once had to first engage a customers with a warm

greeting, they now need to engage them before the first

salutation as they approach each product in the store.

#2. Organize your business and online user experiences to work seamlessly across every touch point


#3. Communicate in a consistent and relevant tone

Beyond a consistency in look, feel and

tone, relevancy is achieved:

• With investment in gleaning into their

customers’ preferences

• Tailoring targeted interactions accordingly

The first step is to listen to your customers, without making too

many preconceived assumptions. When successful, such a

process should leave space for new forms of discovery,

serendipity and exploration as well as targeted suggestions.


#4. Always strive to anticipate needs, and

constantly improve

Leading brands already:

• Are constantly improving their offerings

• Offer regular software updates that happen “automagically” (The era of annual version upgrades and renewals for software is coming to an end)

Learning how predict user needs, and often incorporate the

“unexpected” into a user experience by providing seamless

customer support or making the purchase process as easy

and effortless as possible will ensure relevance.


#5. Earn Trust and Keep

Customers must: • Be comfortable with exchanging personal data

for more curated online experiences

• Entrust storing financial, medical, demographic, professional, and other types of private information

• Be certain that the value delivered by these experiences significantly outweighs the perceived loss of privacy

Companies that can make consumers comfortable with the

trade-off of sharing personal data for tailored services will

earn their trust and brand loyalty.


“Industrial companies — not just GE but

all industrial companies — are no longer

about just the big iron. All of us are going

to seek to interface with the analytics,

the data, the software that surround our

products. The reason for this is that it

drives tremendous productivity benefits.”

Jeff Immelt, CEO, GE

Creating great UX is HOT on the CxO agenda…


For designers, finding meaning in Code means innovation from insight

© 2014 Cognizant

Musical preferences and political preferences

If you like Garth Brooks… Chances are you vote Republican

http://notes.variogr.am/post/26869688460/how-well-does-music-predict-your-politics

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© 2014 Cognizant

Pandora uses your music

tastes to connect you to:

a) LinkedIn colleagues

b) Political candidates

c) The NSA

d) Justin Bieber

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© 2014 Cognizant

Pandora uses your music

tastes to connect you to:

b) Political candidates

http://www.marketplace.org/topics/business/pandora-uses-data-your-musical-taste-lure-political-advertisers

Candidate….

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© 2014 Cognizant

By looking at your posting

pattern, Facebook can

predict when you are:

a) Buying a house

b) Taking a vacation

c) Falling in love

d) Falling in love with

Justin Bieber

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© 2014 Cognizant

Facebook can watch you fall in love….

http://www.theatlantic.com/technology/archive/2014/02/when-you-fall-in-love-this-is-what-facebook-

sees/283865/?utm_content=buffer3c0dd&utm_source=twitter.com

“During the 100 days before the relationship starts,

we observe a slow but steady increase in the number

of timeline posts shared between the future couple.”

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© 2014 Cognizant

If it costs more than $50 and you can’t eat it, it will be connected and will be generating meaningful data that can shape a better User Experience…


We are inside the third wave and it is all around us

Weather Health and Fitness

25

MAR

Calendar Other Services Public Transport Shopping

The third wave is going to be about designing for

the Internet of Information, curating its user

experiences, and it will require new strategies for

products, services and branding which will be driven

by new economics

UX STRAT 2014: Theo Forbath, "The Role of UX in Defining the Future of Products, Brands and Business...

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