Driving Behavioral Change for Information Management through Data-Driven Gree...
Â
Charting Your Digital Agenda: Six Technology Trends Driving Competitive Advantage, Now and in Years to Come
1. âą Cognizant 20-20 Insights
Charting Your Digital Agenda:
Six Technology Trends Driving
Competitive Advantage, Now and
in Years to Come
Executive Summary explore the world. Somewhat more slowly, but just
as surely, these consumer-oriented technologies
Whether they serve consumers, businesses or
are forcing traditional business models to mutate,
both, companies today need to create an agenda
presenting both unprecedented opportunity and
that outlines how they will capitalize on the latest
massive disruption in affected industries.
developments in the consumerization of infor-
mation technology. In particular, organizations Organizations of all sizes are grappling with how
need to consider how to incorporate six technical best to leverage these consumer technologies
developments for profitable use: to advance business objectives and experience
âą Mobile devices breakthroughs in competitive advantage. The six
technologies discussed in this report are not nec-
âą Game dynamics
essarily new in terms of having just appeared, but
âą Augmented reality companies are beginning to use them in innovative
âą Social currency ways that will drive profits for years to come.
âą Location-based applications
Now more than ever, technology reflects that
âą Virtual goods we are social creatures, whether interacting for
business or pleasure. No matter which industry
These technological developments first emerged
you operate in, your organization needs to outline
in the consumer world, but business applications
how it will use mobile platforms, social capabili-
are becoming prevalent. This white paper will
ties and virtualization to achieve its potential in
discuss the six key technologies that will work
the digital economy.
individually and in concert to engage and delight
customers and prospects. In our view, there are six key technologies and
developments that businesses should embrace
Embracing Consumer Technologies to stay competitive in the near term. Leading
Consumer technologies such as smart devices, companies are already infusing these technolo-
social networks and intuitive Web interfaces gies into the core of their digital agenda â singly
began in the consumer world and quickly trans- or in combination â using them to offer richer,
formed the way we socialize, interact, shop, relax, more interactive user experiences that will keep
consume entertainment and reading material and customers coming back for more.
cognizant 20-20 insights | september 2011
2. 1. Mobile devices. Mobile devices have exploded tive collaboration requires a breaking down
in the last five years due to widespread of barriers such as inertia and mistrust,
consumer adoption of smartphones (notably which is difficult to achieve without offer-
the iPhone) and tablets (chiefly ing participants an incentive for doing so.
the iPad). In fact, according Many organizations are now applying game
to IDC, sales of smartphones dynamics to influence collaboration and com-
surpassed those of PCs last year, munity with employees, partners and even
with smartphone shipments customers, both within and outside their cor-
growing 87% from 2009 to porate boundaries. Companies have created
2010, while PC shipments rose platforms to incorporate game dynamics so
only 3%.1 Consumers now people can engage more effectively with their
expect to be able to consume content and also to motivate desired behav-
data anywhere, any time, iors among their constituencies.
on any device, and business
For example, with its Humana Games for
user expectations are only slightly behind
Health (HG4H) site, health insurance giant
consumersâ.
Humana Health Insurance has used games â
A notable B2B example: The real estate arm video games, among others â to encourage its
of the insurance and financial services giant members to exercise their minds and bodies
Prudential recently launched a listing app for for better health. Members can participate
the iPad.2 Forward-thinking companies are in challenges, earn points toward rewards
offering their own mobile apps stores a la and engage in friendly competition with
iTunes so both internal and external users can friends and family. Theoretically, Humana will
download and use their applications. Any orga- reduce healthcare claims from its members,
nization that has not already enabled mobile while members benefit from being healthier.
consumption of its data (or does not have Another potential health application: a daily
an active project in the works to do so) is in game that prompts patients to take their
danger of failing to provide a critical aspect of medications while engaging them in enter-
customer experience. taining play.
This does not imply, of course, that the mobili- Gamification enables organizations to make
zation of data is a straightforward proposition, their content more compelling â and fun â
especially in a B2B context. On the data con- so people want to come back. Research has
sumption side, organizations are grappling with shown that online users are highly motivated
creating processes and governance policies by the prospect of earning currency â money,
for employees to use mobile devices like the rewards points or social currency. Companies
iPad in the workplace. Security and privacy could harness this concept to encourage
are major concerns that must be addressed employee interaction. Beyond tangible rewards,
sooner rather than later. most people appreciate recognition of their
Get ready: Every future IT project or program expertise, whether shared via reviews, online
will build in smartphone and/or tablet integra- bulletin boards or an e-knowledgebase. Users
tion as the primary means for consuming data. could earn points in these venues, allowing
Organizations that have not considered this them to make a name for themselves by being
should revisit their IT roadmaps. a frequent reviewer or commentator.
2. Game dynamics or âgamificationâ tech- In a B2B context, customer service personnel
niques involve the application of game design could earn recognition for sharing product-
techniques and mechanisms to create compel- quality information with the product devel-
ling, interactive content. Game opment team, enabling ongoing collaborative
dynamics will be a large part of process improvement. Entrenched corporate
strategies that involve consum- cultures have created roadblocks to collabo-
er engagement. The use of such rating; gamification may be the lubrication
game dynamics will be the next that greases the wheels. And gamification
wave of generating loyalty and platforms (such as Nitro from Bunchball4) will
advocacy among consumers. make it easier for companies to inject game
techniques into their content and applications,
Business applications will
whether B2B or consumer-oriented.
come, as well. After all, effec-
cognizant 20-20 insights 2
3. 3. Augmented reality (AR). AR has enormous dimensions.8 The simulator will quickly and
potential in both the consumer and business elegantly say whether or not the userâs goods
worlds. Advanced companies are already will fit in the box. Augmented reality has
putting AR to countless innovative uses â enormous potential for both fun and practical
everything from a virtual mirror to check business and consumer uses.
out how clothes and hairstyles
4. Social currency. Related to the âgamifica-
would look on you, to virtual
tionâ trend noted previously, social currency
worlds on your smartphone that
involves a form of currency (points, ratings
orient you to your surround-
and the like) that users earn in an online social
ings using floating icons. AR
context. The rewards points that credit cards
is a natural for the consumer
offer in exchange for meeting
world, but enterprises will also
certain purchasing levels were
embrace AR-based applications
an early form of social cur-
and solutions en masse in the
rency. E-community sites are
next few years. Vendors offering
already offering social currency
AR platforms will be in high
in exchange for posting user-
demand.
generated content. Sites like
For consumer applications, AR can add much Amazon.com could offer cur-
sizzle to the user experience. Visitors to the rency to influential reviewers;
BMW Web site, for example, can explore their these elite users could then use
desired model, for example the Z4, in a highly points to pay for or reduce the
realistic way and can even configure their cost of purchases. Many companies that have
dream car via an AR-powered configurator.5 employed games to sweeten the use of their
But AR need not be confined to luxury goods; content also offer social currency as a reward
it can be used effectively for simple goods, too. for participation.
Children, for example, can scan the code from
In addition to virtually limitless consumer
their Doritos Sweet Chili chips package on the
application possibilities, businesses can offer
Doritos Web site to access a special cartoon,
social currency to motivate their employees
a fun experience that has a cache of exclusiv-
toward preferred behaviors, such as collabora-
ity.6 Another example: the Topps â3D LIVEâ
tion. Consumer and B2B marketplaces will be
baseball card line features a baseball that
built on social currencies.
leaps from the card onto the userâs desk, as
viewed via a webcam.7 While viewing miniature Enterprises will increasingly adopt strategies
holographic representations of a player, users that tap into the geo-social behavior of
can control the playerâs signature moves via consumers to maintain the loyalty of their
the keyboard. consumer base. Social currency will become
one of the most popular and lucrative
Beyond the fun of exploring a virtual world,
approaches.
AR has a highly practical side. A business
that buys a high-end printer, for example, 5. Location-based applications. Yelp, Four-
might get up to speed on its features via an square and the like have been on the scene
AR application. Field service personnel could for years now, but they will come to greater
access AR tutorials to better understand how prominence (even ubiquity)
to repair a piece of equipment. Virtual agents in coming years. Many orga-
already welcome visitors to a variety of Web nizations, especially those
sites, in hopes of making users feel a personal serving consumers, are
connection with the material presented there. examining how they can use
location-based applications
It is only a matter of time â and not much time,
to delight their customers.
at that â before AR applications will become
entirely routine for consumer and business Location-based apps require
experiences, from the sublime to the mundane. a particularly thoughtful
The U.S. Postal Service now offers a âvirtual approach, as they neces-
box simulatorâ that allows users to scan the sarily impact the userâs privacy. Many people
items they want to ship on a PCâs camera and are not comfortable with letting an applica-
then virtually place them in a box of certain tion use their current physical location as the
cognizant 20-20 insights 3
4. basis for serving more information. We believe Insurance Group, offers insurance to secure
this concern will lessen, however, especially virtual property.9 Many consumers have built
among millennials and their younger counter- extensive collections of virtual goods â with
parts, as users see the value of swapping some the associated online status â and they do not
privacy rights for information (such as the want to risk losing them to a computer crash or
nearest Indian restaurant) and value (including other mishap. According to the Inside Virtual
immediate coupons for the very item the Goods report, the U.S. virtual goods market
shopper seeks). Organizations will do well to will reach $2.1 billion this year.10
implement location-based applications with With such a significant market size, virtual
sensitivity to privacy concerns and to embed goods are an increasingly viable way of earning
ways to mitigate those concerns (for example, revenue. One possibility is for companies to
allowing users to turn location-based capabili- offer virtual and physical goods in a market-
ties on and off at will). place. At this moment, it is hard to fathom that
6. Virtual goods. Unimaginable just a few short there is equal potential for B2B virtual goods,
years ago, virtual goods are just that â online but the emotional lure is such that this may
incarnations of things that people want in the come to pass.
real world (flowers, clothing,
jewels, pets and cars are a Enterprises of all types and sizes must build a
few), as well as entities that digital agenda to remain competitive today and
exist only virtually (such as survive in tomorrowâs marketplace. The six tech-
avatars). Online consumers nologies and developments in this white paper
have embraced virtual goods work together or separately to engage consumers
with a passion. Ephemeral as and workers, now and in the future. Most of the
they are, virtual goods clearly technologies have a playful aspect that does not
have emotional meaning for preclude their use in business applications â far
consumers. from it. The future of work will look much like play
at present, with enhanced virtual interactivity to
Case in point: This year for the first time, a make work compelling for all types of users and
Chinese insurance company, the Sunshine applications.
Footnotes
1
âSlowing Consumer Demand Reduces PC Growth for 2011 While Longer Term Growth Will Remain in
Double Digits,â IDC, June 6, 2011, http://www.idc.com/getdoc.jsp?containerId=prUS22861211; âAndroid
Rises, Symbian 3 and Windows Phone 7 Launch as Worldwide Smartphone Shipments Increase 87.2%
Year Over Year,â IDC, Feb. 7, 2011, http://www.idc.com/about/viewpressrelease.jsp?containerId=prUS2268
9111§ionId=null&elementId=null&pageType=SYNOPSIS
2
âCheck Out the Prudential iPhone/iPad App,â Real Estate Connect, Feb. 11, 2011, http://realestateconnect.
wordpress.com/2011/02/11/check-out-the-prudential-iphoneipad-app/
3
Humana Games Web site, http://www.humanagames.com/
4
Bunchball Web site, http://www.bunchball.com
5
BMW Z4, BMW Web site, http://www.bmw.co.uk/bmwuk/augmented_reality/homepage?bcsource=vanity
6
Doritos Web site, http://www.doritos.com.br/sweetchili/site/
7
Topps Web site, http://www,toppstown.com
8
U.S. Postal Service Web site, https://www.prioritymail.com/simulator.asp
9
Jeremy Hsu, âVideo Game Property Insurance Protects Virtual Goods,â Innovation News Daily, July 7,
2011, http://www.innovationnewsdaily.com/insurance-virtual-items-games-2105/
10
Dean Takahashi, âU.S. Virtual Goods Market to Hit $2.1 Billion in 2011,â GamesBeat, Sept. 28, 2010,
http://venturebeat.com/2010/09/28/u-s-virtual-goods-market-to-hit-2-1-billion-in-2011/
cognizant 20-20 insights 4