Based on over 20 years of experience consulting on how best to align a company’s product roadmap with its business strategy, Theo will share a set of design guidelines that can be adopted to bolster brand equity and customer engagement using real world case studies. Theo will present a framework for understanding where UX designers need to innovate for the next generation of computing. He will then discuss opportunities for UX designers to influence how products and services can push the boundaries of how we interact with the world around us and how to make digital interactions more intuitive, frictionless and seamless with the physical world, to drive competitive advantages for businesses.

1. © 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
theodore.forbath@cognizant.com
@theoforbath

2. | © 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

3. © 2014 Cognizant
We are The Digital Revolution
3
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

4. © 2014 Cognizant
The
world of products, brands and personal
data is going through a
radical transformation…
4

5. © 2014 Cognizant
5
FROM:
A World
of Things

6. © 2014 Cognizant
A World of
Smart,
Connected,
Programmable Things
TO:
6

7. © 2014 Cognizant
7
The first wave was About (IM) Personal
Computing
typified by computing experiences that were immobile and lacked contextual awareness

8. © 2014 Cognizant
•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
8
Nature of Personal Data in the 1st Wave

9. © 2014 Cognizant
The Second wave Got Personal
Now it is about being mobile, always connected and always “on”
9

10. © 2014 Cognizant
10
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

11. © 2014 Cognizant
The third wave will be VERY personal and completely different…
11
Credit: Frog

12. The third wave is about much more than BYOW…it’s about the dematerialization of processes

13. 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

14. © 2014 Cognizant
14
It’s about technology diffusion, democratization and de- capitalization…
14

15. © 2014 Cognizant
15

16. © 2014 Cognizant
16
Airwaves connected
mask –
3rd wave is surrounding us
16
Credit: Frog

17. © 2014 Cognizant
17
The Third Wave will adhere to us…

18. © 2014 Cognizant
Is your boss giving you a wake up buzz on your wearable?
18

19. © 2014 Cognizant
19
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

20. © 2014 Cognizant
Will leveraging rich personal data
be the new differentiator
20

21. © 2014 Cognizant
21
Brands are no longer only defined by logos, slogans and artifacts…
but by shaping personalized experiences

22. 22 © 2014 Cognizant

23. © 2014 Cognizant
23
Credit: Frog

24. © 2014 Cognizant
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

25. 25 © 2014 Cognizant 25
A billion dollar investment for Disney: Next Generation Experience
Credit: Frog

26. © 2014 Cognizant
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
26

27. © 2014 Cognizant
Digital Transformation is re-shaping your business…
27

28. © 2014 Cognizant
28
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

29. © 2014 Cognizant
The Digital Revolution Started in the “Industrial-Media-Entertainment Complex”…and we get to decide where it goes from here…
29

30. © 2014 Cognizant
30
Americans are watching more movies at home than ever, yet the curtain has closed on Blockbuster
Something big is happening …

31. © 2014 Cognizant
Dislocation at the “Shift Point”
Widget Winners
Digit Winners
31

32. © 2014 Cognizant
32
UPON FURTHER REFLECTION…
SOMETHING MIGHT BE WRONG

33. © 2014 Cognizant
•Many firms are configured for the past and not unleashing their potential value
•Many will face an extinction event unless they adapt
33

34. © 2014 Cognizant
34
A NEW TYPE OF DIGITAL ENTERPRISE IS EMERGING
NEW TECHNOLOGIES ARE TRANSFORMING WORK

35. © 2014 Cognizant
SMAC it to me! The transformational industry trends we see all around us …
1.Social Computing
2.Mobility
3.Advanced Analytics
4.Cloud
35

36. © 2014 Cognizant
“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
36
“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

37. © 2014 Cognizant
37

38. © 2014 Cognizant
38
We’re beginning to expect (and differentiate) on the sublime…

39. © 2014 Cognizant
…and find the ridiculous, well, ridiculous
39

40. © 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

41. © 2014 Cognizant
41
Revolution in UX: “Designed by engineers” versus…

42. © 2014 Cognizant
“Designed by designers”…
42

43. © 2014 Cognizant
43
THE 50 – 50 MARKET of 2020

44. © 2014 Cognizant
44
50 – 50
Billion Devices
Times the Data
IoT
IoI (The Internet of Information)

45. © 2014 Cognizant
45
Companies are now competing on “code” and UX — the data and information surrounding people, organizations and devices; and how they create meaningful experiences…

46. © 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
46

47. © 2014 Cognizant
So, when you next walk into a store...
47

48. © 2014 Cognizant
How do you want to connect?
48
• With basic demographics?
• How you look?
• Like a cold call?

49. © 2014 Cognizant
Or can user experiences be tailored around digital footprints?
49

50. © 2014 Cognizant
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.
50

51. © 2014 Cognizant
51
“Now any Noun… any person, place or thing…has a virtual self as well a physical self.”

52. © 2014 Cognizant
52
Starting Points:
THE USER EXPERIENCE

53. © 2014 Cognizant
53
From “always be closing”…

54. © 2014 Cognizant
…To “always be suggesting”
•Algorithms based on user activity
•Personal ratings
•Collaborative filtering
54

55. © 2014 Cognizant
Personalized, curated, in-context
55

56. © 2014 Cognizant
…to “always be recommending”
56
“Ya gotta see it!”

57. © 2014 Cognizant
Dematerialization in the customer service process
57
Whom do you trust for a movie recommendation?

58. © 2014 Cognizant
Virtual communities best professional critics
Source: Carnegie Mellon University
58

59. © 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
59

60. © 2014 Cognizant
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

61. © 2014 Cognizant
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.
61

62. © 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)
62

63. 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….”

64. third wave. Confidential and Proprietary 2013
64

65. © 2014 Cognizant
65
Thanks to the SMAC stack, identifying and finding the Tsaarnaev’s brothers took five days

66. © 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
66

67. © 2014 Cognizant
Starting Points for Business Stakeholders: RETHINK PRODUCT DESIGN Create A Beautiful Experience
67

68. © 2014 Cognizant
68
#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.

69. © 2014 Cognizant
69
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

70. © 2014 Cognizant
70
#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.

71. © 2014 Cognizant
71
#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.

72. © 2014 Cognizant
72
#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.

73. © 2014 Cognizant
73
“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…

74. © 2014 Cognizant
74
For designers, finding meaning in Code means innovation from insight

75. © 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
75

76. © 2014 Cognizant
Musical preferences and political preferences
76
If you like Madonna…
Chances are you vote Democrat

77. © 2014 Cognizant
Musical preferences and political preferences
77
If you like Jimi Hendrix…
Chances are you like Science Fiction

78. © 2014 Cognizant
Your taste in music shows your intelligence???
78

79. © 2014 Cognizant
Music
79
Source: http://musicthatmakesyoudumb.virgil.gr/

80. © 2014 Cognizant
Who guessed that music libraries…provide rich customer insight?
80

81. © 2014 Cognizant
81

82. © 2014 Cognizant
Pandora uses your music tastes to connect you to:
a)LinkedIn colleagues
b)Political candidates
c)The NSA
d)Justin Bieber
82

83. © 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….
83

84. © 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
84

85. © 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.”
85

86. © 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…

87. © 2014 Cognizant
87
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

88. © 2014 Cognizant
Thank You
Theo Forbath
theodore.forbath@cognizant.com
@theoforbath