Technologies Fueling Transformation: From the Showroom to Future-Proofing Your Brand

CES 2017

Insights from SapientRazorfish

Autonomous cars. Connected everything. Intelligent platforms that are taught rather than programmed. We are living in the future.

As personalization and connectivity are rapidly causing

consumer expectations to change, this year's Consumer

Electronics Show (CES) demonstrated how an increasingly

connected economy is transforming customer experiences.

With up to 50 billion devices set to connect to the Internet

by 2020 – many of which were visible on the CES show

floor – advances in data science, affordable electronics and

ubiquitous wireless service are enabling the integration of

intelligence into just about any product, across all industries.

Organizations continue to be faced with the impediment

of change, the pace of which is only accelerating, and must

now reimagine their business for a connected world.

From immersive technologies to intelligence everywhere, CES 2017 diminished the line between physical and digital.

The recurring themes at this year’s show reinforced our

belief that the future belongs to those willing to harness

value from data, connectivity, smart machines and artificial

intelligence (AI) in order to transform their businesses

and cont inuously exceed customer expectations. So

what should the C-suite and its leadership teams take

from CES 2017 as they plan for the next five to 10 years?

In this Insights piece, we decipher five emerging tech

trends – along with their implications on marketers – as we

guide you through future-proofing your brand.

Two technologies sure to power the future.E n a b l i n g ( w h a t s e e m e d l i k e ) hundreds of products at this year's CES, Amazon's Alexa was the obvious star of the show. Add to that the fact that i ts n a m e was used interchangeably with natural language processing, and it’s clear t h a t t h i s i n n o v a t i on was a CES 2017 winner.

And i f the wave of Alexa wa s n o t e n ough, 5G was a s trong undercurrent, promising 75 times the bandwidth of its predecessor. This new standard, expected to roll out in 2018, will change the way we all interface with cloud enablement services. As with A l e x a - e n a b l e d technologies , 5G-based work ing prototypes were found across the CES floor.

Connecting Technology and the Consumer

“Customers are moving faster than the technology today, and it's up to businesses to respond to their movements, using the customer journey to drive fundamental change to how silos connect and operate.”

NIGEL VAZ

CEO, EMEA & APAC,

PUBLICIS.SAPIENT

1. Shift from products to (eco)systems. For decades, marketing executives have been advised to position their brands to solve broad customer problems rather than point solutions, while many product leaders were focused on the latter. Now, we’re seeing a shift to platforms and ecosystems stressing the benefits of connectivity from single product features for solving end-to-end problems, not just for individuals but for groups (e.g., the family). At this year’s show, it seemed that every major consumer electronics company introduced a platform illustrating its intent to compete for the connected home.

LEADERSHIP PERSPECTIVE

SHANNON DENTON

CHIEF STRATEGY

OFFICER,

SAPIENTRAZORFISH

“Unprecedented levels of con-nectivity enable brands to shift their business models from product sales to integrated service providers.”

ExamplesLG previewed several smart appliances and robots, expertly

managed by its SmartThinQ hub and enabled by Alexa

via Echo-like countertop speakers and robots. Samsung’s

Family Hub 2.0 smart fridge can now not only provide you

with a view inside, but it can check your food supplies,

conjure up receipts and even order delivery from GrubHub

when no one feels like cooking.

TakeawaysThese examples don’t just i l lus t ra te new poss ibi l i t ies

of modern connectivity; they also stress the urgency of

building a layer of simplicity. Smart leaders realize they risk

making the lives of their customers more complex with

scores of connected products, many of which can come

off as gimmicky. They have to push real problem solving

and value above flash.

Brands will create new digital ecosystems of their own, but

it’s the collaboration of brands – including competitors –

that will deliver game-changing marketing solutions enabled

( initially ) by developments in 5G technology and natural

language processing.1

1 Razorfish. CIOs Seek Growth through API Programs. https://www.razorfish.com/arti-cles/2016/cios-seek-growth-through-api-programs.

2. Look to reduce friction to compete with complexity.Voice and other natural user interfaces abound as everyone seeks to help make technology easier to use and more human. There was plenty of evidence at this year's CES showing how computers will vanish into things as they become smaller and out of sight. Thanks to seamless experiences enabled by massive integration, consumers no longer move in and out of several apps to achieve their goals. It's a world where we are the master and technology is the servant.

LEADERSHIP PERSPECTIVE

JASON GOLDBERG

SVP, CONTENT

AND COMMERCE,

SAPIENTRAZORFISH

“Voice interface isn’t just an adjunct, it's a paradigm shift. And it's going to have a tremendous impact on the way brands market.”

ExamplesHolographic interfaces, such as BMW’s HoloActive in-

car display, feature haptic feedback in midair. A solution

from Knocki turns any surface into a connected device,

enabling users to turn on the TV (for example). GeniCan’s

WiFi-connected barcode scanner attaches to your trash

can and integrates with Amazon Dash to conveniently

order replenishment products. All of these technologies

underscore a movement toward friction-free experiences.

TakeawaysNatural user interfaces are resetting customer expectations,

and marketers need to choose their platforms wisely.2

Consumers are already showing a preference toward voice-

enabled products. It’s no longer a matter of it being a novel

feature – it’s a matter of meeting expectations that are

already there. The brands that have already brought voice-

enabled products to market are seeing returns. And in the

near future, the search industry, recommendations and

advertising will all be dramatically impacted by this trend.

2 Razorfish. Transformation in Travel & Hospitality. https://www.razorfish.com/arti-cles/2016/transformation-in-travel-and-hospitality.

3. Devices are being taught more than programmed. Natural user interfaces and other emerging trends at the show made one thing clear: artificial intelligence is in everything. This new era is marked by conversational commerce that integrates AI, natural language processing, gesture interfaces and bots – all of which are now more aggressively digitizing the customer experience. While one brand might use intelligence to offer a product right in the moment when a buyer realizes his/her need for it, a competitive brand can seize the advantage by using insights to get ahead of such awareness. One approach solves a problem after it has occurred; the other prevents the problem from happening in the first place.

LEADERSHIP PERSPECTIVE

JEREMY LOCKHORN

VP, EMERGING

EXPERIENCES

AND MOBILE LEAD,

SAPIENTRAZORFISH

“Instant gratification is going to feel slow. AI is going to get so good that users will begin to expect companies to predict what they want, before they even ask for it.”

ExamplesWhile Mercedes showed off how its 2017 infotainment systems learn your preferences and predict your destinations, startup ShadeCraft unveiled its creative solution called "The Sunflower." This umbrella robot follows the sun, adapts to wind and closes on its own. It also has programmable lighting, built-in speakers, a microphone and a camera, and is (of course) compatible with both Alexa and Siri.

A number of AI-powered, semiautonomous personal assistants were on hand, such as the Kuri home robot, which earned considerable buzz for a product that was shown only in a private suite. In the meantime, Emotech LTD’s robot OLLY won the CES Innovation Award for its use of machine learning in connected home solutions.

TakeawaysYet another platform battle is brewing as different components are powered by different AI platforms (e.g., Amazon/Alexa, Google, Microsoft and IBM). To capitalize on platforms that already exist, brands will have to decide to what extent they want to rely on – and yield data to – third parties. AI-powered personal assistants will radically increase consumer expectations for personalization. Instant gratification won’t be good enough; brands will have to predict and deliver proactively – without being intrusive on consumer privacy.3

3 SapientNitro. Artificial Intelligence: Combining Causal Reasoning, Machine Learning and Big Data for Business Results. http://www.sapientnitro.com/en-us.html#perspective/insights/insights-articles/artificial-intelligence-combining-causal-reasoning-machine-learn-ing-and-big-data-for-business-results.

4. Auto leads the way in transforming consumer behaviors. “Disruption” is a term that has become both overused and overstated. But in the transportation industry, connected cars and drones will fundamentally change how everything – and everyone – gets from point A to point B. As a result, this industry’s evolution will reshape consumer behaviors, transform business operations and impact the economy in a massive way. For the first time ever, CES felt as much an auto show as it did a consumer electronics show. This included two auto brands – FCA and Faraday – that introduced their major concepts of the year at CES instead of at the Detroit Auto Show just a few weeks later.

LEADERSHIP PERSPECTIVE

ZACH PARADIS

VP EXPERIENCE

STRATEGY,

GLOBAL RETAIL

STRATEGY LEAD,

SAPIENTRAZORFISH

“A decade from now, there will be a radically transformed auto-motive ecosystem that will disrupt many industries – well beyond automotive.”

ExamplesEvery automaker and p la t fo rm company brought i ts

version of autonomous car platforms to the showroom

f loor. In te l u n ve i led i ts GO In - Ve h i c l e D e ve lopment

Platform for Automated Dr iv ing, which purports to be

the world’s first 5G-ready platform for the auto industry.

The network allows massive amounts of data to move

at unprecedented speeds, thus connecting billions of

devices to the IoT, including smart cars and drones. Intel’s

data center also has machine learning capabilities, which

uses data to “teach” cars how to respond and react to an

ever- increasing set of obstacles on the road.

TakeawaysAs transportation continues to become smarter and more

efficient, cars and drones will become more than a simple

utility – they will be an integrated part of the connected

consumer’s ecosystem.4 However, while the technology

fueling these devices advances at a rapid rate, our regulatory

environment is expected to move considerably slower, which

means that driverless cars and drones may make their way

to market long after the technological capabilities exist.

Automotive and technology brands must not only focus on

innovating, but on shaping the safety rules and regulations

that will ultimately determine when and where they’re used.

4 SapientNitro. Service-Driven & Customer-Centric: A Network Orchestration Framework for the Au-tomotive Industry. http://www.sapientnitro.com/en-us.html#perspective/insights/insights-articles/service-driven-customer-centric-a-network-orchestration-framework-for-the-automotive-industry.

5. The lines between digital and physical worlds continue to blur for marketers and consumers. While virtual reality (VR) has long been seen as a geek favorite, especially in gaming and entertainment, many other organizations showcased the value of both virtual and augmented reality (AR) at CES this year. This blended reality is being used to transform training and education programs, provide helpful cues and instructions to workers, and share identifiers and reminders within the physical environment.

LEADERSHIP PERSPECTIVE

MATT ARNOLD

SENIOR MANAGER

OF TECHNOLOGY,

SAPIENTRAZORFISH’S

SECOND STORY

“At this point, there is a certain inevitability to VR and AR. Brands can no longer ignore their value or dismiss them as fads.”

ExamplesAt CES, Intel introduced DAQRI Smart Glasses, a wearable

technology tool that combines enterprise-grade computer

vision with software-defined light breakthroughs to create an

augmented world for users. Through the glasses, instructions

are superimposed over a worker’s field of vision, providing

valuable guidance to the user that potentially improves

performance and eff ic iency. The Google Tango enabled

phone al lows consumers to see products in physical

spaces, in a beautiful demonstration of mixed reality.

TakeawaysWhile AR and VR are l ikely to continue as consumer-

fo c use d m e d i a , b us ines s - to - b us ines s b r an d s a re

qu ick ly r e a l i z i n g t h e p ower o f t hese te c hn o l o g ies

to improve productivity, efficiency and safety. Though

these technologies h ave ye t to reach c r i t i c a l mass ,

brands should consider how to use them within their

organizat ions and customer relationships alike.5

5 SapientNitro. VR and AR Demand Long-Term Action from Innovative Brands. http://www.sapientnitro.com/en-us.html#perspective/insights/insights-articles/vr-and-ar-de-mand-long-term-action-from-innovative-brands.

Leverage connectivity to change the way you competeFor many brands, introducing connected products

that leverage advances in machine learning, AI, data

science, and even VR and AR feels like a competitive

advantage. While this may be true in the short term,

integrating the next-level connectivity that we

experienced at this year's CES will soon be required

to achieve competitive parity.

Business leaders must architect their own

connectivity strategies, complete with research and

development dollars set aside for experimenting,

building prototypes and pursuing joint projects

with partners from across our connected economy.

And while all brands should consider the future that

is ultimate connectivity, they should also remember

the age-old philosophy "just because you can,

doesn't mean you should." Connectivity should be

taken in stride, with the right platforms chosen for

the brand (and consumers) at hand.

Don’t underinvest in product designIntegrating the functional and emotional attributes of

a product that is smart, fun to use and intrinsically

valuable to customers is every designer's challenge.

Many brands will be tempted to focus on the

technology at the expense of human-centered

design, an approach that we do not recommend

(especially when that fascination with technology

leads to over-designed products). The same is

true for products that are sparsely designed.

Finding a magical balance will be critical for

success. Don't hesitate to seek external

partners that can help you deliver highly

functional and beautifully designed products

that actually provide value.

Prioritize quality integrationAccording to industry experts, half the cost of

getting a connected product to market will be

spent integrating various components with each

other and with external systems, both within

and outside the enterprise. However, integration

often gets less than its fair share of effort, due to

competing tasks such as user interface design,

hardware engineering or adding voice interfaces.

But if integration isn’t solidly enabled, then the

whole idea behind the connected product will

be compromised. This requires us to take a hard

look at how we architect our systems to leverage

both high security and microservices. Also,

remember that how we connect today will

change tomorrow, so the technical architecture

for your product needs to be both flexible for today

and adaptable for the future.

Looking Ahead

Interested in learning more about the implications of CES?

CONTACT: info@sapientrazorfish.com