Sean Cho
shdcho@gmail.com

Key Trends 2014
This presentation demonstrates
key trends 2014.
Report contains understanding of con
sumer, marketing, technology trends,
and Recommendations.
I. Marketing Trend
II. IT Trend
III. Recommendation

1. Top 10 hot consumer trends
City life will be
transformed by 2016
Users prefer fingerprints
To passwords
40% want to log their
physical activities
Quality of experience
when using internet is
falling behind that of voice
The smartphone is the
primary internet device
The rise of streaming services
allows people to view content
on the movie
60% believe sensors will be
commonplace by 2016
48% use apps. to check
their data consumption
38% watch video clips
recommended by their
friends several times a week
People minimize risk by
being more cautious online
Source : Ericsson Consumer lab

2. 7 Marketing trends 2014
Trends Description
The second Screen 88 % of consumers use their mobile phones while watching television*, and
savvy marketers are already designing campaigns with this 2nd screen in mind.
All hail the images
Between Facebook’s redesigned News Feed ads and the emergence of
Instagram and Pinterest ads, it’s clear that highly visual content is driving the
future of digital advertising
Video is the new King The # of online video watchers is expected to double to 1.5B by 2016, yet just
24 % of national brands are using video to market to consumers.
The rise of the feed
Social media now accounts for the majority of time spent on the internet, with
60 percent of that time being spent on mobile devices. The primary format for
engaging on these social networks? The news feed.
Small data is the new
big data
Small data is timely, meaningful, & actionable without a lot of in-depth analysis.
It’s comprised of all the bits of information that consumers send out both on/off
line, such as search traffic, shopping habits, and social media interactions
Go Hyper-local or
go home
Small businesses have relied on hyper local for years to pull in traffic and
consumer dollars. But with Facebook and Twitter both stepping into
the game, larger companies are starting to pay attention, too.
Mobile still matters The number of mobile broadband connections worldwide is expected to hit 2.1
billion in 2013, nearly three times the total of fixed-line Subscriptions

3. Digital marketing trends
US digital marketing spending is $50B, 28% of marketing spending.
Digital marketing trends to watch in 2014….
Trends Trends
Content is a king - Regular,
interesting and personalized
Content targeting!
Video consumption will still grow
thus create many for your brands.
Rise of video based landing pages!
Search marketing is still #1 tool to
invest in (Google+ will help to get
better ranking)
Real-time marketing in action
Social marketers must act & react
according to current situations
“Mobile optimized” is a must.
“Designed for mobile” is trend
Hashtags will become a leading
search tool.
Email is not dead!
Email with social sharing will rock!
Rise of responsive Email design
Increase in geo-targeting and location
based services.
Push : opt-in, Pull : users interact with mobile
Pictures, pictures, pictures – use
everywhere! Choose different
format depending on the platform.
Bot
traffic
Bot traffic reaches 62% of all internet
traffic & advertisers waste $9.5B (‘13)
– 34% of online & 38% of mobile ad
inventories are fraudulent (IAB1)
1. Form of metadata tag for msg., social text etc, 2. interactive advertising bureau

4. 7 eCommerce trends 2014
Trends Recommendations
1 True, real-time personalization for everyone Adapting marketing campaigns,
site language
2 Mobile payment gets easier
($235 → $325 38%↑,‘14)
Mobile payment friendly, integrating
with 3rd party apps like PayPal
3 Multi-device redefines point of sales
→ 32% of e-Commerce traffic by tablet in US
Apply for responsive design &
optimize mobile site for browsing
4 Multi-channel selling (39% of AMZ sales, merchant)
→ BBY & Tesco use eBay
Alternative places to additionally sell
your products (eBay & Amazon)
5 Data + Analytics (Walmart, Target, Amazon)
→ Core biz. practice & investment
Customer data analytics can improve
up-sell, cross-sell & retain customers
6
Shopping gets social (Tumblr, Facebook)
→ Content marketing is to attract & retain customers
by creating & curating valuable content
Use analytics to understand the ROI
on social activity & the channels with
highest conversion
7 Delivery 2.0 (20M Prime users spent 53% more)
→ Next day delivery, Amazon Prime, eBay shutl
Evaluate the importance of delivery
Consider outsourcing fulfilment

5. US eCommerce market
US eCommerce sales $265B in 2013, computer & CE is the largest category in
sales ($57.4B), mobile commerce becomes 16% of retail eCommerce sales
US e-Commerce Market Growth US e-Commerce forecast by category
US e-Commerce sales growth (‘12 ~ ’18, CAGR) : 13.9%
source: exclude travel & event tickets, eMarketer, April 2014
US retail e-Commerce sales, 2012 ~ 2018, $ billions

6.US eCommerce key players (1/2)
The top 10 merchants accounted for 50% of all top 500 sales.
$133B out of $263B(30%↑: Walmart, Macy’s, 20%↑: Apple, Amazon
Growth rate in 2013 US e-commerce sales
How much the Top 500 grew in 2013 ?
$216.2 B → $ 263 B
Amazon’s 2013 growth rate (27.1% → 30.4%)
Source : The internet Retailer 2013 top 500 guide
13.4%
21.6%
30.4%
Top 10 online retailer ($ Billion)
Amazon
($56.4 → $67.9)
Apple
[3 → 2↑]
($14.7 → $18.3)
Staples
[3 → 2↓]
($10.3 → $10.4)
Wal-Mart
($7.7 → $10)
Sears
[6 → 5↑]
($4.2 → S4.9)
Liberty
Interactive
[5 → 6↓]
($4.3 → $4.8)
Netflix
[10 → 7↑]
($3.6 → $4.4)
Macy’s inc
[14 → 8↑]
($3.2 → $4.2)
Office Depot
[7 → 9↓]
($4.1)
Dell
[8 → 10↓]
($3.9 → $3.5)

6.US eCommerce key players (2/2)
Retailers invest eCommerce & hire marketing/IT staffs.
leaders move to mobile commerce & leveraging Omni-channel
Case Description Revenue
▪ Amazon leading US e-Commerce
- Digital e-Commerce innovator (Digital = Cash Flow = Low price)
- Data Driven Automation, Dominates Digital goods market
$67.9 B (‘13)
1st online
▪ Commerce guided by human accommodation
- 800 M iTune accounts (3X amazon, 7X eBay accounts)
- Integrate 2 ecommerce sites (iTunes,apple.com) and apple store
$14.7 B (‘12)
→ $18.3B (‘13)
2nd online
▪ Digital innovation & Transformation : Walmart.com (1,600)
- Build own shopping search engine “Polaris”
- Build warehouse for web order, acquires 12 digital tech ventures
$7.7B (‘12)
→ $10B (’13)
4th online
▪ 50% of total revenue generated by online
- e-Commerce expert (Faisal Masud EVP), focus on ecommerce $10.4B (‘13)
▪ Macy’s (8th online) hires IT staff and invest for ecommerce
- average 30% online growth past 3 years (14th → 8th)
- Omni-channel success (aligning inventory offline with online)
$3.2B (’12)
→ $4.2B (‘13)
▪ Expand sales product from PC/CE to athletic product
- Own fulfillment (2013), Partnership with Puma for china
- Open B2B marketplace (2014)
$2.7B (‘13)

7. Amazon vs. BBY history
Amazon Sales surge while Best buy stalls & declines
Annual* revenue, billions of dollars.
BBY reaches
250 stores
BestBuy.com
launches
BestBuy acquires
Geek Squad.
BestBuy opens
first china store
iPhone
launch
Circuit City
closes
Kindle
Launches
Amazon Prime
Launches
Amazon Web
service launches
1-click
shopping
Fire phone
Launches
Buy KIVA
Systems2)
Kindle fire
launches
Price Check
apps. Launches
4G LTE starts in US
US Smartphone market
saturates in 20151)
∙ Innovator 1st 2.5% (‘07),
∙ Early adopter 13.5% (‘10),
∙ Early majority 34% (‘12),
∙ Late majority 34% (‘15)
App store
Launches
Instant
video
Launches
Sell books
Sell music
& movie
Sell HA &
digital goods
Sell other goods3)
Sell office products
& starts free shipping
MP3 Launches
*BBY’s 2013 revenue really represents the 12 months ending March, 2014,
1) Business Insider, Aug. ’13, 2) KIVA : Warehouse Robotics Company, 3) CE products, toys, games, SW etc.

8.Amazon “show rooming” risk
Male show roomers retail index : Computer & CE relevant retailers
Female show roomer retail index : Home goods & clothing
Amazon Show rooming – Retailer Risk Index
showroom visitor index, index of 100 = average representation

1. IT trend outlook 2014
Source Trend 1 Trend 2 Trend 3 Trend 4 Trend 5 Trend 6
Gartner Mobile Devices
battle
Mobile Apps. &
application
The Internet of
Things (IOT)
Hybrid Cloud &
Personal cloud
S/W defined
Anything
Smart
Machines
IDC Mobile platform
/OS battle
Smartphone/
Tablet vs. others
Social
networking/Biz.
IOT (Internet of
Things) Big Data Cloud Service
Deloitte Cognitive
Analytics
Digital
Engagement
Social
activation/
Crowd source
Cloud
orchestration
In-memory
revolution
Real-time
DevOps.
Accenture Digital-physical
blur
Data supply
chain
Architecture
Resilience
Business of
Application (S/W)
Harnessing Hyper
scale Crowd source
IBM Big Data Mobility Cloud
Computing Social Networks Security
PWC Business
Analytics
Socially enabled
biz. processes
Mobile customer
engagement Cybersecurity On-demand biz. &
technology service
Sensors/3D
print/wearable
Insights
1. Mobile computing & Service, 2. Cloud computing & on-demand service,
3. Social Network for biz. Adoption, 4. Data analytics & Big data,
5. IOT (Internet of Things), 6. Security

2. IT shifts from back office to front office
Moving back office to the front office lines. CIOs are focusing on
technologies that support closer customer engagement.
CIOs focus on customer side topics
New turf: CIOs spend more time on
customer-related activities
Frontal assault: CIOs adopt technologies
for connecting with customers
CIOs, three specific issues (top of mind),
are....
• Engage with digitally enfranchised customers
• Excel at the basics
• Boost internal and external collaboration
Insight story: CIOs are shifting their focus
to tools that turn data into intelligence
Source : IBM CIO survey

3. Case study : Walmart (1/3)
Walmart invested heavily in back end systems, now focus on front
end digital marketing to understand consumers
Back End (~ 2010) Front End (2010 ~ )
Invested in Data driven IT & communication
- Track sales and merchandise inventories in stores
- Owned the largest & most sophisticated computer
systems in the private sector (incl. MPP1)
- All information related to sales &inventories was
passed on through an satellite comm. System
Key Back End Systems
Retail Link System ($4 B)
- Monitor the sales of goods at stores & replenish
inventories of 10,000 suppliers
- Details of daily transactions (10 m↑/day) were
processed via this system
CPFR2, TPS3 (Transaction Process System)
DSS4, Satellite System, EDI5, UPC6 code, RFID7
Hub(distribution center) & Spoke(store) system
Moves from Big Box retailer to
e-Commerce Innovator (CEO drive)
▪ Handles consumer data
- 1 million customer transaction data/hr.
- 245M customers walk in store/week
▪ Walmart.com grows CAGR 30% since 2011
- 4th US online commerce in 2013
- Expecting $13B of e-Commerce in 2014
▪ Walmart uses big data analytics
- Walmart labs use social media analytic platform
→ taxonomy : products, people, locations, events,
and interests
- Halloween and black-Fridays
▪ Acquires 12 digital/analytic firms since 2011
- mobile, social, big data, e-commerce etc
1.Massive Parallel Processor, 2. Collaborative planning, forecasting & replenishment, 3. Transaction process systems,
4. Decision support system, 5. Electronic Data Exchange, 6. Universal Product Code, 7. Radio Frequency Identification

3. Case study : Apple (2/3)
Apple has achieved biz. Success through the use of IT & invested
not only core tech., but also front end system for consumer service
Product Core technology Customer-centric Front End service
Invested in key technology for product
differentiation1 (39 out of 61 in M & A)
- Platform : iOS, iTunes, iCloud, iWork, iAd, iBook
- Application : music, picture, video, voice, map,
data, internet, search engine etc.
- H/W : Chipset, micro LED display, Flash memory,
firewiire chipset
IT aligned business strategy
▪ iPod : iTunes music service platform
▪ iPad : App Store launched to support device
▪ All devices : iOS is standard OS platform
▪ iCloud : support All apple product support and
web service (incl. email/file share/storage)
Build up consumer service infrastructure
▪ Evolution of consumer service in apple
- iTools (2000) : Internet S/W service for apple
- .MAC (2002) : email, disk storage service
- MobileMe (2008) : expand service to mobile
- iCloud (2011) : $1B to build consumer service
cloud data center
▪ Expand data center for future service (4 → 72)
- Plan 3 more DCs in NC, Reno, China
- Plan to buy internet infrastructure to boost
performance and future TV content service
▪ Acquires 31 digital/Web tech. firms since 1988
- 513% of total M&A in apple since 1988
- 714% of total M&A in apple since 2010
1.Core technology H/W + Core technology S/W, 2. 7 Data Centers : Cupertiino, Newark, Santa Clara (CA), Maiden (NC), Reno (NV),
Prineville (OR) , Beijing (China) 3. 31 out of 61, 4. 22 out of 31

3. Case study : Amazon (3/3)
Amazon leverages IT & digital technology to make BMI1 of online store
→ eMarketplace → Web service (AWS2, MT3) → Digital content service
→ OEM manufacturer → Logistics & distribution (1 hr. Drone delivery)
1 Great execution & business innovation by digital technology
Data driven automation & digital technology provides a significant advantage to outperform one’s
competitors
▪ Digital enables limitless inventory : starts 1 category (books) to 16 main categories
▪ Digital boosts customer care
- Invest data & human driven customer service
- Acquires Zappos (#1 customer care know-how, new audience – young women)
▪ Customer centric e-Commerce innovation (Invest IT to create seamless & integrated shopping experience)
- 1-click ordering, multi-device support, price check, next day delivery for prime
2 Invest 6% of revenue focus on Distribution & Logistics
Amazon’s secret recipe : Leverage its digital advantage to optimize supply chain & logistics
▪ Buy KIVA systems : Warehouse robotics & automation technology
▪ Digital driven supply chain : hires C-level from Walmart (CIO, CLO4)
- Computerized supply chain, supply & distribution network (50 fulfillment centers over 8 countries)
▪ Developing Drones delivery : US delivery within 60 minutes
1. Business Model Innovation, 2 Amazon Web Service, 3. Mechanical Turk : Human Intelligent Service
4. Chief Logistics Officer

4. Big Data trend 2014
1. Big Data Grows Bigger: The growth of social media, mobile devices, & machine sensors is
generating a wealth of bits that either didn't exist or weren't accessible a few years ago.
2. Support for New Analytic Apps: Demand for new analytic apps (incl. automated reports,
dashboards, predictive analytics, & decision support) putting on Data Scientists & Developers.
3. Hadoop Matures: With the open source projects like YARN, Hadoop functionality improves &
enables new capabilities, such as real-time analysis. Now consider it for mission critical apps.
4. Security/Privacy: CEOs want security. Users want privacy. CIOs make a greater effort to build
security, privacy, and governance policies into their big data systems and processes.
5. Designing for Cognitive Computing: Data Scientists begin to design for cognitive capabilities
such as sense-finding, natural language, decision-automation & semantic search functions.
6. Big Data in Marketing: Marketing is a sweet spot for adoption, but CMOs and their staffs
are not able to handle all the big data and analytics requirements
7. Chief Data Officer: Expect more companies focus on developing a corporate data strategy &
a data-driven culture with an emphasis on data security & LOB self service capabilities.
8. Data Scientists: Big data demands a new breed of data scientists who can make sense of the
data coming in from mobile, social, and sensing that require design & architecture of applications
9. Data Quality: Data quality is at the heart of all data initiatives. The old saying garbage in =
garbage out still holds true today.
Source : http://practicalanalytics.wordpress.com/2011/12/12/big-data-analytics-use-cases/

2014 trends summary
Key Trends Recommendations
▪ Personalization : content targeting, User
experience, responsive design etc
▪ Marketing : email → multi media
Front end investment tops for
Mobile, social, big data, cloud etc
3
Marketing/Digital Marketing Trend
→ Digital engagement & adoption
1
▪ Mobile/Social dominance, cloud based service
▪ Big Data : Data ↑ (social/media, mobile, IOT)
▪ Security : cyber security, security of IOT etc
1
Sell the holl, not the drill
Focus on front end system for business
▪ Apple invests on cloud center ($B’s)
▪ Amazon invests on warehouse &
logistics (6% of total revenue)
2
Digital marketing adoption is popular
Digital Marketing practices are soaring
▪ outsourcing → in-house among leaders
Ensure core competency & performance
▪ Increase bot traffic by faulty marketing
3
Set up digital transformation strategy
Walmart : Bigbox retailer → ecommerce innovator
Apple : Manufacturer→ retailer & content service
Amazon : e-commerce (direct sales → marketplace),
IT infra. Service (AWS), OME manufacturer
with service (Kindle, TV, Phone)
e-Commerce Trend
→ consumer interface & insights 2
▪ Personalization, multi device, Social
▪ Omni channel selling, Data analytics

Digital marketing trend
Rise of responsive email design Rise of Video based landing design
SOCIAL MEDIA IS
BECOMING MORE
VISUAL

Digital marketing analysis

Bot traffic
Global advertisers are expected to waste $9.5B on bot traffic in 2013
- Some publishers create or buy fraudulent bot traffic to increase ads revenue
Bot traffic 2013 Using Data to prevent traffic fraud
Collecting Metadata
There are hundreds of pieces of metadata
tied to every click & conversion that provide
valuable information about the identity of
the person behind the click
Spotting Patterns
Using advanced pattern recognition
technology, we can analyze click lead &
downstream sales data to identify trends that
indicate bot traffic
Sorting Traffic
Traffic sources for each campaign are
categorized as low intent or high intent based
on the presence of bots & the likelihood of
conversion
Optimizing Spend
Campaigns can then be optimized for hight
intent traffic only. Allowing advertisers to
reach real consumers with high lifetime value
Theft of content/email
Data(Credit cart) theft, Malware infection, site hijack
Marketing intelligence gathering, Performance down
Posting of irrelevant content, Search Engine blacklisting
Source : Incapsula

Digital = Cash Flow = Low price
Amazon use digital technology to leverage its high positive cash flow
- Average a product stays : 70 days BBY’s shelf vs. 33 days on Amazon
Average a product stays; 70 days on Best Buy’s shelf
33 days on Amazon’s one
Leveraging its high positive cash flow, Amazon is able to maximize margins and
beat all other retailers when it comes to pricing.

Amazon : Digital goods dominating underway?
In each Digital market, Amazon fights for its monopoly

Walmart : Digital goods dominating underway?
Walmart has been building an internet technology company with world-best-class
ecommerce capabilities inside the world largest retailer
Walmart digital technology acquisition history
Kosmix : Walmart Labs
Web search & data analytics
OneRiot
Social/mobile media campaign
Grabble
Mobile receipts technology
Set Direction
Mobile commerce app dev.
Tasty Labs
Social S/W incubator
OneOps
Cloud computing PaaS
Inkiru
Predictive Data Analytics
Torbit
Web acceleration technology
2011 2012 2013 2014
Small Society
iOS mobile app development
Social Calendar
Facebook social reminders app.
Yumprint
Recipe & meal planning
Adchemy
ecommerce product search
(12 acquisitions since 2011)

Apple M & A history
Acquires 61 technology firms since 1988, 39(64%) are core technology for business
and 22 (36%) of M&A are front end service for consumer
Network Innovation
Orion Network Sys.
Styleware
Nashoba systems
NeXT
Power Computing
Corp.
Bluefish Labs
√Bluebuzz (ISP)
Spruce technologies
√PowerSchool
√Nothing Real
Zayante (Firewire)
√Silicon Grail Corp.
√Propel Software
√Prismo Graphics
√Emagic
(music production S/W)
√Quattro Wireless (iAd)
Intrinsity (SoC)
√Siri (Voice control S/W)
√Poly9 (Web based map)
Polar Rose
IMSense
√Placebase
√Lala.com
SnappyLabs
√Burstly (app test)
LuxVue technology (LED)
√Spotsetter (Social Search)
√Swell, √BookLamp
√Beats Electronics
1988 1989 1997 1999 2000 2001 2002 2005 2006 2008 2009 2010 2011 2012 2013 2014
Coral S/W
Xemplar education
Raycer Graphics
Schemasoft
FingerWorks
√NetSelector
Astarte-DVD
authoring SW
√SoundJam (MP)
P.A Semi
√C3 Technology
Anobit
(Flash Memory)
Silicon Color
Proximity
√Chomp (Search)
√Redmatica
Authen Tec
√Particle (web)
√Novauris Technologies
√WiFiSlam (location)
√Locationary (Maps)
√HopStop.com (Maps)
Passit Semiconductor
PrimeSense (Chipset)
√Matcha (Media discovery)
√Embark (Maps)
Algo Trim (Data Comp.)
√Cue, √Topsy(Analytics)
√BroadMap, √Catch.com
core technology H/W (11), core technology S/W (28), Front end application/platform/service (22), √ Digital/Web tech (31)

Gartner IT prediction 2014

IDC predictions 2014
The IT Industry's 3rd Platform for Innovation & Growth
Trends
Mobile platform/OS battle
Smartphone/tablet vs. others
Social networking/Social
business
IOT (Internet of Things)
Big Data
Cloud service
Data Center Transformation
Innovative Industry solutions

Deloitte Tech. Trend 2014
Enablers Disruptors
CIO as venture capitalist
- CIOs should manage IT portfolio in
a way that drives enterprise value
and evaluate portfolio performance
Social activation
- The focus of social business has
shifted from measurement to
monitoring sentiment & perceptions
Cognitive analytics
-Cognitive analytics bridge the gap
between the intent of big data
and the decision making.
Cloud orchestration
- Tactical adoption of cloud is giving
way to the need for a coordinated,
orchestrated strategy
Industrialized crowdsourcing
- Enterprise adoption of the crowd
allows special skills to be sourced
from anyone, anywhere & anytime.,
In-memory revolution
- Move from analytical to transactional
systems, the potential to fundamentally
reshape biz. processes grows
Digital engagement
- Enterprise core products become
augmented or replaced with digital
intellectual property
Real-time DevOps
- By standardizing & automating envr.,
build, release & configuration – tools
like deployment mgrs, auto build etc
Wearables
- Wearable computing has many
forms such as glasses, watches,
smart badges, and bracelets

Accenture technology vision
Description
Digital-Physical Blur
- Wearable devices, smart objects and machines are providing us with
real-time intelligence that is changing how we live and how biz. operate
From workforce to crowdsource
- Using advanced digital tools and platforms, organizations can now tap
into pools of people across the world (immense, agile, even for free)
Data Supply Chain
- Data needs to be something that is transported through a supply chain,
is shared, used and repurposed – just like other products.
Harnessing Hyperscale
- Hardware world is now a hotbed of innovation with demand soaring for
performance in storage, processors and specialized servers.
Business of Applications
- Software as a core competency in the digital world
Architecting Resilience
- “Built to survive failure” - the mantra of the nonstop business

PWC top 10 tech. trends for business
Trends Description Trends Description
Business Analytics Sensors
Socially enabled
business processes
Robotics
Mobile customer
engagement
Battery and power
technologies
Cybersecurity 3D printing
On-demand business
and technology services
Wearable
computing

Rise of social commerce
75% of social generated eCommerce sales came from top 3 players. Social traffic of
eCommerce led to increase a revenue (17.8% 1st half, 2013)
Social Media Fact in 2013 Tips to get started for Social Media
Source : mobstac, Feb 2014
75% of social generated
e-Commerce sales from
Facebook, Twitter, Pinterest
39% of Facebook users like
brand pages to research
products
74% of consumers rely on
social media to guide their
purchases
40% of social media users
have purchased an item after
sharing it on Facebook,
Twitter or Pinterest
▪ Build brand awareness
▪ Reply to customer queries
▪ Promote seasonal sales
▪ Drive fan engagement
▪ Create sharable hashtag
▪ Provide exclusive
merchandise
▪ Organize previews

Consumer Journey
Marketing opportunities exist in shopper’s journey through various touch points
when analyzing the different phases in the MOT1
Shopper Marketing
ENGAGEMENT/PLAN SHOP
PURCHASES
AWARENESS
INFLUENCES USAGE
Consumer Marketing
Shopping
plan
Channel /
Retailer
choice
Category
conversion
SKU
selection
Product
Brand image experience
Media &
other
influence
Discover
Pre-shop
information
Get help
Trust
Use
Friend Evangelize
Share
Personalize
Search Research Compare
Decide
Web
Company website
Mobile
Branch/store
Call center
Social
Purchase
1. Moment of Truth

IOT ecosystem and landscape