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TRE

NDS
2017
CON T E N TS

Fjord Trends 2017 p02

No 01 - EPHEMERAL STORIES p05


Where next now everyones a storyteller?

No 02 - SHINY API PEOPLE p17


Rewiring for Innovation

No 03 - BLURRED REALITY p29


Beyond AR vs. VR vs. MR

No 04 - WORLD ON WHEELS p41


Go Slow to Go Fast

No 05 - HOMES WITHOUT BOUNDARIES p53


Domestic Help Finds Its Voice

No 06 - HOURGLASS BRANDS p65


Dont Get Stuck in the Middle

No 07 - ME, MYSELF AND AI p77


Humanizing Chatbots

No 08 - UNINTENDED CONSEQUENCES p89


Customer-Centric Cannibals

References p101

01
ABOUT
Twelve months of research, 1000+ cups of coffee, and probably an entire forests
worth of Post-its (dont worrywe recycle). Thats what it took for us to compile
our Trends 2017 report, which offers an in-depth look at the eight most important
developments we believe will influence and impact design and innovation for
business, government and society in the coming year.

After the seismic political shockwaves of 2016a tumultuous 12 months in which


many long-held assumptions, practices and rules were challengedits easy to
question the role and value of predictions. However, we believe that now more
than ever there is a need for Trends and the sparks of insight and innovation they
can ignite.

When we produced our first Trends report in 2008, Fjord consisted of 80


designers in four European studios. Weve since grown to 800+ designers and
developers across 22 studios, spanning five continents, which offers us a truly
unique perspective and the ability to view the world and the way its changing
from every angle.

We still apply the same process to creating and curating our trendsby running
workshops in all of our studiosand now were more perfectly positioned than
ever to explore and explain emerging technologies and to identify and tackle
important issues. We hope our annual report is a guide to the challenges,
experiences and opportunities your organization, employees, customers and
stakeholders are likely to face in 2017 and beyond.

Already, a number of emerging meta themes for the new year are clear:

02
FROM DESIGNING FOR DEVICE TO DESIGNING FOR ENVIRONMENT

For a decade, the smartphone has been the centre of our digital universe. In 2017 and
beyond, the focus will start to shift from mobile technology (which remains the key) to the
environments in which we spend our time and how best technology can be used to make
them supercharged.

THE WAY WE INTERACT WITH BUSINESS IS CHANGING YET AGAIN

Live stories and short, raw content are how consumers want to communicate with each
other - and its how they will increasingly want to communicate with brands. Forget flashy
billboards, intrusive direct marketing and repetitive TV commercials. Think online messaging
platforms where broadcast messaging is replaced by chat. Reliance on technology to drive
communications with consumers will increase. Yet as AI becomes widely adopted, the need
for human intervention is still required. Furthermore, the new technology will create new
jobs, whether its bot designers, algorithm auditors, or customer fall back specialists.

THE TRUST PENDULUM IS SWINGING

Post-truth - the word of 2016 reflects the information over-load now affecting us all. With
simple facts no longer sufficient to communicate and convince, individuals, organisations and
brands will have to change how they operate and communicate to build trust by demonstrating
authenticity and building emotionally-driven relationships. Attention will extend beyond the
customer and employee experience as organisations must master social experience.

Thats the background, then. So lets now cut to the chase. In the sections that
follow, we explore eight of the key trends we believe will be most important to
your organisation over the months ahead. Happy reading! We hope, you will find
(at least some of) the answers to the question What next? for your organization
next year.

03
No 1

EPHEMERAL
S TO R I E S
Intro_

WH E R E
N E X T N OW
E V E R YON E S A
S TORY T E LL E R ?
With brand strategists and content marketers preaching
the storytelling gospel and the idea of storytelling
incorporated into many marketing strategies across the
globe, focus in 2016 shifted onto storydoing creating
stories by what brands do, rather than what they tell.

In 2017, brand content will evolve further with the ever-


increasing flow of communication to and from customers.

Brand owners will step back, stop driving conversations


and instead make room for audiences to shape their own
stories. Expect content thats more personal and instant,
and expect it to play out as short stories and live video.
Watch out for the filter paradox, as more content will be
unfiltered in the traditional sense, but with filters applied
camera-style.

In most social apps today, a text box is still the default way
we share. Soon, we believe a camera will be the main way that
we share.

Mark Zuckerberg, CEO, Facebook

07
What happened_

S TO R Y T E L L I NG
H AS N E W R U LE S
The days of conventional is the norm, as is a
brand storytelling are shortened attention span.
over, thanks to the Even goldfish can now
democratization of content hold a thought for longer
creation and the rise of than humans (blame the
image over text. smartphone).

The revolution began when As a result of this


Apple launched the iPhone hyperconnected lifestyle,
3GS back in 2009, putting we now live in a content
low-res video recording saturation era. The daily
capabilities into the media content consumption
hands of many. Then the of U.S. adults, recently
proliferation of simple-to- estimated at ten hours 39
use video, photo-editing and minutes, rose an entire hour
self-publishing tools that in just one year.
followed meant anyone with
a smartphone or computer And the nature of
could publish compelling storytelling is changing
content. accordingly.

And then content became Consider the decline of


king. Brands became the voice call. In 2013, 96 Instagram

content publishers. And percent of adults made at


being always plugged-in, least one phone call per
consumers were always on. week, but this had fallen to At the same time, interest in
75 percent by 2016, when at visual-based communication
Todays average digital least one global telecoms rose sharply.
consumer owns 3.6 services provider was
connected devices and planning for voices share of Almost two billion images
spends more time on tech company revenue slumping are now uploaded daily, and
and media than sleeping. from 80 percent to zero Google users alone uploaded
A hyperconnected lifestyle percent within five years. 13.7 petabytes-worth of

08
Whats happened_

Theres even talk now of a then began selling ads


new and international visual between friends Stories.
language using emojis. By the years end, it had
declared itself a camera
Social media players company with the launch
responded to images of Spectacles, $130 glasses
growing dominance, fast. that allow users to take a
10-second video to share
Instagram expanded its with friends.
video ad offering after
its video consumption
We believe that reinventing
leaped 40 percent between
the camera represents our
December 2015 and May
greatest opportunity to
2016. Airbnb subsequently
improve the way people live
described the platform as
and communicate, it said.
a powerful way to create
and curate wonder and awe
through storytelling that is
rooted in humanity.

Facebook, meanwhile,
began testing Snapchat-like
features in its main app.

Most striking of all, though,


is Snapchat.
pictures to its Photos app
in 2015, including 24 billion In early 2016, Snap Inc.
selfies a staggering figure, (no longer Snapchat
given it excludes selfies Inc.) confirmed Stories (a
posted to Apples iCloud, compilation of snaps)
Facebook, Snapchat, Twitter was driving 10 billion video
and Instagram. views each day; the app

09
Whats missing_ Content saturation has become
a major problem. But brand and
storydoing has and should
have little to do with brand.
media owners response to More important is how humans
create yet more content has interact with brands.
been misguided. Not only is it
not enough to simply produce Brand owners must drop the
more of the same, its no longer megaphone to fully embrace this.
just about producing high-
production-value content. People who write novels and
make feature films dont see
We believe too many
themselves as storytellers,
organizations remain obsessed
its all the people who are not
with being a storyteller. Too
storytellers (who do).
few think beyond storytelling
by focusing on brand drama Stefan Sagmeister, Graphic
and service experience. In fact, Designer and Typographer

Whats coming_
The eter-increasing flow of meet growing demands for shock, the point at which too
communications between information delivered more much content makes content
organizations and audiences is efficiently. marketing, in its traditional
creating what Kevin Kelly, author sense, no longer sustainable.
of The Inevitable, describes as More of us are turning to After all, each of us only has a
a state of unceasing change, in social media and aggregation limit to the amount of content
which we are constant newbies sites to navigate the noise. we can consume.
to the new. According to Pew Research
To stay relevant, organizations
Center, 61 percent of millennials
should work harder to
Already, brands have been use Facebook as their key
meet their audiences where
forced to get to grips with political news source. Yet,
they are. Their storytelling
being always on by the curated feeds are self-affirming,
strategies will become more
constant communication and closed-loop systems like
nuanced than simply creating
enabled by Twitter. The recommendation engines and
bite-sized, snackable stories.
accelerating stream of algorithms feed the perception
Brands can no longer simply
communication, plus further that the world agrees with our
hover around social media
point of view.
polarization within politics and sites, and call it a day.
society, will force companies to
In fact, Facebook is deepening
up their game. Instead, they must ready
millennial users confirmation
themselves to cede storytelling
bias; if we only get our political
In 2017, following the bitter power.
news from Facebook, we are
presidential campaigning in
not exposed to as many diverse
U.S. electoral history and the
and different opinions, factors
U.K.s polarized Brexit vote,
or views. Worse, many now
the world will continue to
believe we are living in an era
feel increasingly divided. This
of post-truth, a term recently
will be exacerbated by the declared by Oxford Dictionaries
proliferation and ubiquity of as its word of the year.
information sources at last
count, more than one billion We will need powerful stories
websites and the side effects that cut through, unite and
of the services developed to overcome a so-called content

10
Snapchat Spectacles

How to respond_
Brand owners must heed deliver raw, unrehearsed, And it will be essential to
three key lessons from content unpolished content. Now, embrace the messy art of short
saturation: Live Stories popularity has stories and live video.
prompted other social media
First, just because you create channels, including Instagram, Leading the way will be
content doesnt guarantee an to follow suit with their own those organizations unafraid
audience. And even if you have versions of imperfect sharing. to integrate consumers and
an audience, they can easily employees into the heart
tune you out with the click of Third, live rocks. of their communications
an ad-block button. strategies.
After Twitter bought live
Second, success is not streaming video app Periscope U.S. fashion brand Everlane,
always driven by the highest in 2015, live video gained for example, is using Snapchat
production-quality content. massive momentum, and the to humanize and personalize
Brand owners love glossy upsurge of real-time, unedited its offering with behind-the-
content, but they will have to visual content that followed scenes content. Snapchat
get over themselves if they are has put pressure on all enables the business to
to fully embrace consumers organizations creating content explore transparency in a
growing preference for content to step up or risk getting left completely new way, the
that is rough and ready. behind. company wrote on its blog.
No fancy cameras. No
Snapchats growth has been Brands must stop trying editing. Just raw, live footage.
powered by the steady rollout to drive the conversations. Its beautiful, and its the
of new and enhanced features, They must shift the spotlight platform for the modern
including Snapchat Stories and from themselves onto generation.
Discover, fueling predictions it their audiences, letting
will have 217 million users by the consumers become Fox TV, meanwhile, offered
the end of 2017. And all this lead characters in the Snapchat activation codes
with little high-quality content. brands stories. To do this, to support its recent U.S. TV
organizations must co- premier of The Rocky Horror
In fact, one of Snapchats create conversations in real Picture Show remake, enabling
signature products, Live time alongside employees, viewers to unlock exclusive
Stories, is a compilation of influencers, subject matter filters and share their own
scrappily stitched together experts, customers and their stories during the broadcast
photos and videos built to extended communities. of the show, a TV first.

11
Fjord suggests_
Fjord suggests _

FROM
STO RY T E L L I N G
TO STO RY D O I N G
When conventional brand storytelling is dead, success will
depend on putting people at the core of everything you do. A
human-centered design approach is a powerful framework for
creating compelling content.

Remember, a content marketing program takes time to


monetize, so give your content time to fulfil its potential ROI.

RE-MODEL YOUR
MARKETI NG
TEAM TO FOCUS
ON STORYDOI NG
To move beyond an insular
brand-centric content
marketing strategy, focus
on your people first. Giving
your audience the reins to
shape and participate in their
own stories with your brand
requires human-centered
thinkers, so look for people
like journalists and UX
content strategists, who have
a for the people mentality
ingrained in their DNA.
Challenge your marketing
department to become
orchestrators, not creators.
And ensure they have the
skills they need to do so,
brilliantly.

13
Fjord suggests _

B E L E D BY YO U R AU D I E N C E S
NEW NORMAL AND THINK ABOUT
YO U R B R A N D A S L I V I N G
Your first step should be to define what type of content
marketing strategy aligns best with your audiences
behavior and needs. Assess how communication norms
are changing the use of filters, for example, and trending
toward live and appropriately apply this to your own
communications across the whole range of contact points.

Snapchat

Brand owners must


drop the megaphone
NURTURE Make sure you have the
team and infrastructure
YO U R not only to test and
CONTENT iterate content thats in
development, but to also
test, iterate and govern
content post-launch.
Be comfortable with
ambiguity, and embrace the
art of experimentation. And
for the love of compelling,
usable content experiences
everywhere: dont just
launch and leave it.

14
No 2

SHINY API
P EOP LE
Intro_

R E WI R ING FOR
I N NOVAT ION
The greatest challenge for any organization in todays digital
world is how best to manage and respond to change. The
answer is to bring user-led innovation to market, fast. But
thats easier said than done. Though large organizations
typically know how to scale, they struggle to be agile. While
startups tend to excel in agility, yet rarely succeed in scaling
up. Success lies in understanding that digital innovation
provides the key to effectively tackling both.

Many organizations have begun to break down silos and build


spaces to inspire creative thinking. Last year, we highlighted
the importance of Design From Within. This year, that trend
has evolved rapidly. Businesses will need new strategies to
take this further. In 2017, organizations will acknowledge the
need to rewire completely to become more people-centric.
They will do this by upscaling the principles and practices
of digital design to create the fertile ground needed for
organization-wide flexibility.

19
What happened_

T H E I N N O VAT ION
C R I S I S : HOW TO
I N NOVAT E AT
SCALE
Digital technology has In 2013 Cisco, for example,
transformed the way established a corporate
products and services are venturing program for startups
created, distributed and and scale-ups called Cisco
consumed. Entrepreneurs in Residence.
Since then it has helped grow
The internet brought about more than 27 small companies
unprecedented choice, whose ideas align with the
reinventing routes to market interest of its business units.
and rewriting the relationship Others, meanwhile, addressed
between product or service some of the issues that can
provider and end user. The hold back effective design. At
smartphone created an Accenture, growth came from
on-demand world of liquid embracing design and design
expectations for magical culture through a series of
user experiences that strategic acquisitions.
transcended traditional
boundaries. And then, Yet by 2016, a bigger
both ushered in a new problem had become
generation of living service: apparent. Organizations
contextually aware services were facing a sort of crisis
that react in real time to in innovation. Many were
respond to individual needs. struggling to innovate at all,
and among those that had,
Slack In response, many the next challenge was how
organizations set out to to innovate at scale.
acquire or build the design
skills needed to develop Design and innovation are
these services. not the same, but they are

20
What happened_

Zappos

inextricably linked. Design is Just as important is how an


often used as a process to organization puts this theory
drive innovation, and design into practice in other words
thinking is seen by many as design doing. And this,
a requirement for a company in turn, is only effectively
to be truly innovative. achieved when organizations
Innovation is, of course, self-optimize by cultivating
possible without a design an appropriate design
process, but it is probable culture to enable the best Microsoft
with one. design work.

There has been a lot of


Innovation cannot happen
recent talk of design
in pockets. Instead, an
thinking; many organizations
organization-wide rewiring
have appointed chief
for innovation is required.
design officers, acquired
design agencies, and set up
Last year, we saw
internal design teams and
businesses break down silos
innovation hubs, hackathons,
and create spaces (often
startup collaborations and
called innovation units)
co-creation workshops.
both inside and outside
But none of this has been
enough, because effective the organization. And this
innovation at scale depends has been an important first
on more. step. But whats needed
next are organizational
Design thinking is still strategies that will foster
important, but it is only smarter humans and release
the beginning: a catalyst. combined human potential.

21
Whats missing_
Siloed innovation hubs where have had some success, but
small-scale experiments attempts to replicate that
take place do not make an success on a bigger scale
organization innovative. have often failed.
Organizations need to
All too often, strategies have
innovate more significantly
lacked a solid road map for
and more quickly, and to
change, along with the vision,
do so, they need to live and
commitment and agility
breathe innovation across the
required. An organization, its
entire business.
platforms and its governance
Though many organizations models must all be ready
have invested in establishing to scale. This doesnt just
their own studio or lab, the take planning; it takes a
challenge they all face lies new mindset and the total
in scale. Separate, siloed rewriting of what success
teams experimenting and looks like at a corporate scale,
developing ideas for a particularly from the human
specific channel or service perspective.

Whats coming_
Expect to see new strategies family. C-suite support, revenue was $4.7 billion for
to ensure everyone fosters willingness to invest and the year in July 2016 up 12
creativity and innovation. strategic commitment created percent.
a program that optimized
Eventually the role of chief design doing by enabling At Ford, everyone from
digital officer many of whom employees (rather than first-year, entry-level research
are still defining their role forcing them) to become assistant to managing
will become obsolete as digital more design-driven and directors can now bring an
is embedded throughout therefore innovative. idea to the company, have
every organization. For the At financial software giant it heard and get it patented
same reason, innovation hubs Intuit, a D4D (design for as part of an initiative that
will also become redundant. delight) program involved has tripled the number of
Organizations most willing training and cultivating a inventions the company
and able to rewire the entire community of 200 innovators has received from across its
business to create a living, which ran 1,000-plus business since 2012.
breathing innovation culture workshops over five years to
will be best-positioned for change the way people work If Ford sees value in an idea,
future success. across every function in it will help an employee turn
pursuit of creating new and it into reality, providing a
Already, organizations are innovative products for Intuits three-month subscription
tackling this challenge in a customers. to TechShop, an open-
variety of ways. access workshop studio, to
By becoming design-driven, encourage the employee to
Under Larry Pages leadership, Intuit shifted from what one prototype the new idea. In
Google started designing senior executive has described 2015, its employees submitted
good-looking apps that, as the best-run, no-growth 6,000 ideas for patent
for the first time, looked company in the Valley to a consideration, up from 4,000
like they belonged to one 30-year-old startup. And the year before.

22
At FedEx, emotional and a culture of creativity,
intelligence training for new self-discipline, freedom and
managers has strengthened responsibility reinforces this.
its people-first leadership, an While other organizations
important building block for implement processes to avoid
an organization to become the chaos that comes with
truly innovative. Meanwhile growth, Netflixs approach is
at Zappos, hierarchies have informal and relies on self-
discipline to avoid chaos the
been flattened and old silos
self-discipline that enables
dismantled to encourage
and attracts creativity. It aims
every self-managed team
to increase employee freedom
member toward more
as the business grows, and
innovative thinking.
Netflix believes this is the best
way to attract and nourish
Netflixs focus on fostering
the innovative people whose
innovation has helped it
shoulders its ongoing success
secure more than 81.5 million
depends on.
subscribers. All staff are
actively encouraged to think Expect more of this in 2017
like business innovators, and beyond.
FedEx

Google

How to respond_
Design helps to find truth and
provides a needed map in
the chaos. This is why we are
seeing so much focus on it.

A design process in place will


help turn possible innovation
into probable innovation. But
upscaling the principles and
practices of digital innovation
across the entire organization
is now critical. This will
take no less than CEO
commitment and a clear plan
for how each organization
can change its own culture.
Fjord calls this approach
Living Business, and we have
established a methodology
on how to get the very best
from your people and culture.
Netflix
23
Fjord suggests_
Fjord suggests_

CHANGE
S H A P E TO
I N NOVAT E
Digital transformation requires total organizational
commitment, and this means a willingness to change
procedures and policies. We believe that a new mindset,
a clear framework for change and the goal of scalability
from the outset are essential, along with a commitment
to reconsider what success looks like for your business.
Fresh KPIs might be needed, including time to impact,
organizational agility, internal NPS or the Living Business
Vital Signs we have developed at Fjord.

Microsoft

P E O P L E A R E YO U R I P A N D A P I
Remember, people are your IP and your API, so make the
most of them. Place users center stage. Allow employees to
shape your organizations future, enabling them to become
in effect the new CEO. Invest time and resources in training
people to learn new cross-discipline skills. Embed cross-
functional teams to sustain the innovation enabled by more
agile workflows that bring new ideas to market, faster.

25
A I M TO S C A L E F R O M DAY O N E
A solid plan to upscale innovation is a challenge.
Start with a framework idea. Ensure your platforms,
governance models and organization is also ready
to upscale. But dont fall in love with your plan. The
service, market or ecosystem in which you operate
might radically change, but with a framework that
is flexible and agile, each or all can do so without
compromising your basic principles for scalability.

Smarter humans,
combined potential

R E V I E W YO U R TO O L S
New technology and simplified collaboration tools such
as Slack, Workplace by Facebook and Microsoft Teams
are making innovation accessible and possible across
an entire workforce, not just within an innovation hub.
Reassess your tools and, where needed, upgrade them.
Simple and collaborative tools used by consumers
to interact with each other impact the workplace, so
capitalize on this.

26
No 3

BLURRED
REALITY
Intro_

B E YO N D
AR VS. VR VS. MR
Augmented reality and
virtual reality were among
the most talked about
developments in 2016. It
was the year Pokmon
GO became a global
phenomenon, bringing
mixed reality (MR) to
the mass market a real
tipping point. It was the
year Oculus Rift was finally
released, too.

In 2017, as MR moves
toward the mainstream,
organizations will
turn away from single,
siloed, enhanced reality
experiences to focus
instead on harnessing and
combining all types of
reality enhanced and real.
They will create singular,
integrated and compelling
experiential platforms on
which to build experiences
that we call blurred reality.

31
What happened_

E N H ANCE D
R E A L I T Y G OE S
M A I N STREAM
After years of hype, VR finally
entered the mass public
consciousness.

Consumers had access to


a wide variety of devices,
from mobile-based systems,
such as Gear VR and
Googles Daydream View and
Cardboard, to full-featured,
tethered, head-mounted
displays like HTC Vive and
Oculus Rift. And many
interesting VR applications
emerged.

VR production startup
RYOT created experiential
documentaries that put users
at the heart of the refugee
crisis, while a powerful VR
experience by The National
Lockheed Martin
Autistic Society in the U.K.
enabled users to understand
better what its like to be
an autistic child. Lockheed
Martin, meanwhile, launched
Mars Experience Bus, an
immersive school bus in
which children explore the
red planets surface via VR.

Yet, despite the undeniable


advances made in VR,
applications were limited by Rebecca Minkoff

32
Whats happened_

the closed nature of the


technology itself. The
battery life of current mobile
devices restricts running
a VR experience to just an
hour. And a tethered device
like Oculus Rift, though
more powerful in terms of
computing power, cannot
yet be easily worn as you go DHL Glasses
about your day.

Because of VRs limitations,


interest in AR also grew
rapidly throughout the year,
as demonstrated by the
mass adoption of Niantic
Inc.s Pokmon GO. This
Microsoft HoloLens
proved that people would
use an AR-driven app and
at a considerable global

Interconnect
scale. Equally important
to note (especially for

solo experiences
retailers) is that Pokmon
GO took consumers past an
acceptance tipping point.
People now understand there
is a new layer of reality all
Industrial software company revealed Daydream View
around them, and they are
Vuforia began using AR to its standalone VR headset
prepared to try it.
contextualize the internet and soon after, Facebook
of things. Its scannable demonstrated a new,
Fashion designer Rebecca ThingsMarks sticker labels, untethered prototype headset
Minkoff deployed VR and which were put on industrial for a wireless version of
AR as part of her 2016 fall machinery parts, enabled Oculus Rift.
show. To enable potential operators to access product
customers to connect and maintenance information With consumers growing
with the brand, users from a central database confidence in these new,
could upload a photo all via an AR headset and experiential technologies,
of themselves, pick out Vuforia smartphone app. talk among analysts
clothing from the show, then positioned enhanced reality
see those clothes layered Similarly, German elevator as the next big thing after the
over their bodies using manufacturer thyssenkrupp smartphone.
the image they chose; the armed its field repair workers
experience was powered by with Microsoft HoloLens Investors seemed convinced
technology app Zeekit. goggles to see what went of the technologies
wrong and how to fix faulty, prospects too, having
AR applications werent I-o-T-connected elevator made 225 venture capital
just limited to the gaming equipment. investments worth $3.5 billion
and consumer marketplace. in the preceding two years.
In manufacturing, several By the years end, work was Meanwhile, Goldman Sachs
striking innovations hit the advancing to overcome estimated VR and AR would
shop floor. VRs limitations. Google be worth $80 billion by 2051.

33
Whats missing_
Many organizations
approach to developing
AR and VR experiences
remains siloed in instigation
and application treating
VR, for example, as a
single experience a user
has while wearing a VR
headset. Worse, many of the
experiences they create lack
integration within a larger,
experiential context.

Hardware companies are


tackling the limitations of
these technologies. They
are untethering VR and
addressing AR challenges,
such as rendering digital
data into meaningful
graphics and scaling it to fit
the perspective of the visual
field. And as they do this
and unlock a wealth of new
opportunities, we believe
organizations must upgrade
their strategies to keep pace.
Magic Leap

Whats coming_
Magic Leap

The evolution of enhanced Leap, described by some as The future of how people
realities such as AR and VR HoloLens on steroids, which interact with their computers
during 2016 was impressive. overlays VR on the real world will center around how VR and
But by the years end, many via semitransparent goggles. AR experiences seamlessly
organizations were already integrate into our daily life.
adjusting their sights to focus Executives at Oculus Rift Alibaba in China has just
on where the real magic will made it clear that a move to launched a virtual shopping
happen: the point VR and AR AR is part of the businesss experience that allows you
meet to form mixed reality. long-term strategy as the to buy products in New York
VR platform becomes more department store Macys,
A great example of this is the connected to the real world. thousands of miles away.
development of HoloLens, The company also confirmed
a lightweight headset plans for 100-plus new jobs as Today, individual apps live
comprising MR sunglasses that it gears up for AR expansion. on your computer or phone.
augment reality. Rather than More explicit, however, was Tomorrow, data will be
blocking out reality, as with Facebooks description of received seamlessly without
VR, it brings high-definition Oculus Rifts new headset users having to worry which
holograms to life in the users prototype as offering a form of apps need installing or where
world. And then there is Magic augmented virtual reality. data is coming from. And in

34
How to respond_
In 2017, more MR applications
will emerge, enabling brands
to create experiences that
seamlessly shift between the
physical and digital worlds
and channels. We believe
organizations should use these
applications to create singular,
integrated and compelling
opportunities for new
experiences for how we live,
work and play.

Designers must create singular


experiential platforms on
which to build integrated
blurred reality experiences.
And the best partners to
achieve this will be those with
deep experience of working
with both virtual and mixed
reality devices, 3-D design and
development, game creation
and simulation.

We should (all) build software


and experiences that follow the
way our minds work and the
way we process the world.
Mark Zuckerberg, CEO, Facebook

this way, tomorrows apps will to get the most out of these
truly become integrated into a emerging technologies. And
users everyday life. more personal experiences will
cater to individual tastes.
A move away from individual
apps has become evident,
Some people will interface
which we highlighted in our
with their devices via light
2016 Trends. Consider how
and portable, head-mounted
Google Assistant and Apples
displays that will overlay 3-D
Siri can pass through requests
data wirelessly gathered from
and build out results based
the Cloud onto their lives. And
upon context and compatible
applications, while Android a world of new opportunities
Instant Apps loads up a will emerge once technology
temporary version of an app has evolved to this point. But
instead of going to a webpage. others will use their phones
or cars to see hidden content
User interfaces and linked to their surroundings
interactions will be limited rather than visit apps.
Microsoft
35
Fjord suggests_
Fjord suggests_

N O LO N G E R
CA N E V E RY
A P P L I C AT I ON B E A
S O LO E X P E R I E N C E
The key to designing for this new MR world will lie in
building blurred reality experiences capable of being
integrated seamlessly into users lives.

No longer can every application be a solo experience.


Instead, you should consider the potential to interconnect
with various services and experiences in order to create a
single platform.

Existing ways a user interacts with AR, VR and MR


experiences through controllers, gestures, gaze and
voice controls will need upgrading. As a user will have to
interact within a virtual 3-D environment, new paradigms of
user interactions and interface designs will be required.

Microsoft HoloLens

R E CO N S I D E R T H E R O L E O F M R
Virtual reality and augmented reality have made the greatest
impact so far in entertainment. But this merely scratches the
surface of these technologies potential. With the best bits
of each combined to create MR, brands dismiss the wider
applications of each at their peril. MR has huge potential for
audiences of all types, including customers and employees.
And it has a diverse array of uses including brand building,
service provision, education and cost saving, as already
demonstrated by Vuforia and thyssenkrupp in the workplace.

37
Fjord suggests_

CHOOSE THE
T E C H N O LO GY
MOST FIT FOR RETHINK
PURPOSE YO U R B R A N D S
Expect to see a
DIMENSIONS
split between highly MR gives brands the
sophisticated, dedicated, ability to immerse
immersive experiences consumers in rich
and more fluid content, enabling them
experiences without to elicit feelings and form
any need for dedicated connections that have
kit or specialist apps. previously been difficult
The former would have with existing technology.
clear focus: training for In this situation, where
fighter plane pilots or your experience is your
brain surgeons, high-end brand, organizations will
gaming and so on. The be forced to reconsider,
latter would be easier expand and develop the
to integrate into other notions of their brands
services and experiences. personality and how
Ask yourself: Which suits it is conveyed in this
my service and users? new format. Building
on this, brands will be
able to elicit feelings
that help them reach
their core objectives.
Holiday providers could
create strong feelings
of relaxation, pleasure
or excitement to drive
Samsung Gear bookings, just as charities
drive donations and
awareness by using VR
to create a sense of
HTC Vive empathy.

38
No 4

WORLD ON
WHEELS
Intro_

G O S LOW
T O G O FA S T
Self-driving cars, also In 2017, as businesses
known as autonomous explore a new generation
vehicles (AVs), are so close of mobile services, they
to becoming part of daily will turn their attention to
life that, given the time it cars, viewing automobiles
will take to prepare, every as a connected mobile
organization must consider environment in which
how to respond. And those things happen via multiple
institutions that proactively devices. And the ambitious
start the work now will reap will explore ways to
massive opportunities. Those integrate experiences
that dont, on the other hand, between car and home.
can be left behind.

AVs will redefine the The car is growing beyond


automotive industry, and its role as a mere means of
those organizations impacted transport and will ultimately
by the shifting landscape become a mobile living space.
will have to deal with the
Dr. Dieter Zetsche,
changing business models CEO, Mercedes-Benz
and customer expectations
they bring about.

43
What happened_

AVs HIT THE Automated cars capable of


sensing the environment and
navigating without human

ROAD... AND input have been the stuff of


fantasy. But not anymore.

REDEFINE
Over the past twelve months,
Google ran high-profile tests
of its first self-driving car.

CAR
In Singapore, nuTonomy
launched the first public
trial of a robo-taxi service,
involving specially configured
Renault and Mitsubishi AVs
and a ride-hailing smartphone
app. And Uber began
operating self-driving cars
with backup drivers at the
wheel in Pittsburgh. Ubers
self-driving truck also made
its maiden voyage to deliver
50,000 beers.

In autumn 2016, the


U.S. Department of
Transportations National
Highway Traffic Safety
Administration unveiled the
first federal policy on AVs,
which included six different
levels of autonomous driving
guidelines. Defined by the
Society of Automotive
Engineers International,
the guidelines ranged from
no automation (level 0) to
conditional automation all
the way to full automation
Google
(level 5). This essentially set
the first official performance
standards for self-driving cars
and will inform how states
can legislate AVs.

There were many other


significant developments, too.

44
What happened_

General Motors invested $500


million in Lyft, purchased
self-driving technology
startup Cruise Automation for
more than $1 billion and then
announced plans to build its
first self-driving cars for use
within the Lyft fleet as self-
driving taxis.

BMW announced it would


have a self-driving car
on the market within five
years. Ford promised a fleet
of autonomous vehicles
on the road by 2021. And
Tesla revealed that all new
vehicles will have hardware
that will eventually enable
full autonomy; theyre also
planning for an AV ride-hailing
service called Tesla Network,
which will likely give Uber a
ride for its money (no pun From device-specific
to environmental
intended).

Meanwhile, new startups took


on established players with
agility, flexibility, vision and
focus
superior technologies. London-
based autonomous-driving

startup FiveAI, for example, promised to use more sophisticated


machine-learning to deliver fully autonomous vehicles to the
market by 2019, two years ahead of BMW and Ford.

Other organizations also formed new alliances, paving the way


toward a next generation of connected and integrated in-car
services. Uber and Spotify, for example, joined forces to allow
passengers to personalize their Uber ride by remotely controlling
the music via the Spotify app. Uber and Starbucks then struck a
deal to offer U.S. passengers a 20 percent discount if they used an
Uber to go to a Starbucks.

By the years end, Floridas Department of Transportation had


also begun assessing the implications of AVs potential impact on
public services, ranging from on-street parking spaces to future
city planning, to the redevelopment of vacated parking lots.

45
Whats experience of going to events,
along with the events sector,
coming_ could be impacted, too.

The total number of miles


Many car drivers exceed the
driven is already expected
speed limit. They do so because,
to skyrocket. A KPMG report
traditionally, cars represent
predicts that by 2050, cars in
unproductive downtime for
the U.S. alone will travel one
drivers. This has a ripple
trillion more miles each year.
effect, including increased fuel
But thats before taking AVs
consumption, higher risk of car
into account. If self-driving cars
accidents and unpredictable
traffic patterns. take off as widely as theyre
expected to, demand could be
AVs will change all this. twice that.
Traveling by car will no longer
be unproductive. In fact, your When car time is no longer
journey by AV might be the synonymous with pointless
quietest, most uninterrupted, downtime, cars wont need
fruitful time of your day. to go so fast. This will mean
commuters will have more time
The implications and to work, video chat and engage
opportunities AVs will raise are with new products and services.
seemingly endless.
Many services could fill this
Consider the in-car experience. extra time. Imagine an AV-
AVs will redefine the car makers branded financial
as something more than planning service, for example, or
a vehicle to transport you in-car hairdressing or pedicures.
from A to B. Automation will In the self-driving future, cars
make the car a completely are the new arcades, Wired
different environment a new recently declared. In-car mobile
Whats platform, even and provide an internet interaction will soar,

missing_ opportunity to reimagine who


to have in it and how to use it.
creating new digital revenue
opportunities, and telcos and
entertainment companies will
In 2017, the latest wave of Consider mobile hotel rooms: deliver a new generation of in-
next-generation vehicles will Will you take the Marriott or the car services.
establish the AVs foothold in Yotel AV to your destination?
all our futures. Given the lead If so, are you hungry? Dining AVs will rewrite the rules of car
times required, organizations is a huge focus in the airline ownership. Car buying may
should think now about their sector, so expect in-car dining slow, as consumers try fractional
role in an AV world, or else to be revolutionized, along with ownership of an entire car
they will lose out. roadside eating and fast-food brand that appeals to them. So,
joints. rather than buy a Ford Focus, a
For a while, AVs will redefine consumer might buy into Ford
automotive services and the And if you can enjoy a great to access different models that
industry as a whole. With meal in-car, why not drinks and meet their specific needs at
vehicles affecting so many a movie? With the right in-car different times, which will delay
other aspects of consumers experience, you wont think full car ownership.
existence, organizations will twice about embarking on a Expect brand architectures
have to deal with the impact 200-mile road trip to see your to change with all but the
they have on the economy, favorite music artist or sports strongest automotive sub-
team. Basically, the whole brands falling by the wayside
mobility and society.

46
as consumers buy into master Finally, expect AVs to have applications with many
brands instead of an individual an impact on other emerging (recharging stations service
model. technologies triggering new centers, and so on) sharing the
developments around in-car same or similar infrastructure.
AVs will change business Voice User Interface (VUI), for
models, too. With new example. To date, in-car VUI has
offerings already emerging
premium car-sharing service
not flourished due to concerns
over the extent to which they
How to
ReachNow from BMW, for
example, combines service
distract drivers. But as in-home respond_
VUIs such as Amazon Echo
elements of Airbnb, Car2Go, and Google Home establish In the past, car ownership
Uber and ZipCar, while new a foothold in the consumer was an end unto itself, and
pay-per-use models include marketplace, early frustrations the focus of automotive
carpooling, e-hailing taxi with in-car VUI will soon fade. manufacturers was simply to
alternatives and peer-to-peer get people into their vehicles.
car rentals others will follow. Integrated ecosystems will Looking ahead, manufacturers
enable AVs to be controlled should think of their products
AVs will change the car service by simple voice commands as nodes in an ecosystem: just
landscape. As experts in AV and to communicate with
one choice among many in
technology, AV manufacturers in-home systems to optimize
a more flexible, fragmented
will dominate maintenance, the household environment
future where everything
service and repair. Insurers ahead of the travelers return.
power source, service
will have to adapt and start SmartDeviceLink technology
partnerships, ownership
insuring car manufacturers (SDL), an initiative by Ford-
from liabilities associated with structures is up for grabs.
owned company Livio, aims to
technical failure. standardize and integrate the
AVs will redefine the
many connected interfaces
Infrastructure adjustments will automotive industry. But with
being used in cars, providing
also be needed. As AVs will vehicles impacting so many
drivers with a convenient and
reduce the risk of speeding other aspects of consumers
responsible way to remotely
penalties, revenue generated access all of their most existence, AVs impact on
from fines to reinvest in road frequently used smart home the economy, mobility and
maintenance will dramatically devices (thermostats, locks, society as a whole will be
fall. Fewer garages, private lights and so on) while on the far and wide-reaching. And
and public parking spaces road. with the human behavioral
will be needed something shifts that will drive (and be
companies with large parking AVs are also likely to accelerate driven by) AVs development,
lot acreage should be factoring the development of robotics organizations must adjust their
into long-range estate for an array of consumer strategies accordingly.
strategies today.

City planners, meanwhile,


may need to rezone urban
areas to take advantage of
new space. And health care
providers will need to reassess
provision levels in the light of
an anticipated decrease in road
traffic accidents.

Even non-automotive
companies supply chains could
need adjusting in response
to AVs greater flexibility and
improved efficiency.

47
Fjord suggests_
Fjord suggests_

DESIGN PHYSICAL
EXPERIENCES
T H AT F I T
T H E D I G I TA L
EXPERIENCE
Organizations not currently working on their role in an AV
world will lose out, as these next-generation vehicles establish
their foothold in our automotive future.

An immediate priority is to understand the emerging


opportunities and prioritize what you are best-positioned to
deliver. But to do this, you must first understand what place
you will have in this brave new world.

A key shift must be away from a device-specific approach


focused around the smartphone and toward an environmental
focus in which in-car just like we will see in-home
will be serviced by a new generation of connected and
interconnected digital services purchased, managed and
delivered via multiple devices.

Design focus must shift from designing digital experiences


that fit the car to designing physical experiences that fit the Uber

digital experience.

DONT POSTPONE FIGURING OUT


YO U R P L AC E I N T H E N E W WO R L D
The relationship between and user experiences which
car and user will change will shake up infrastructure.
fundamentally when the Understand what role your
user does not drive. If this business will play in this
happens in the early 2020s, new automotive ecosystem.
as some suggest, any mid- to Dont just think about your
long-term investments real future role; start forming
estate, for example that are partnerships now to create
made now will be impacted. services. The best time to
The car will become a scale and monetize services
platform for a new generation and partnerships is as AVs
of digital products, services take off, not after.

49
nuTonomy

DONT THINK
CAR
The car is no longer an
end unto itself; it is an
integral part of a connected
ecosystem and increased
connectivity will open
options for experiences
and services that challenge
the very notion of car.
Analyze the new patterns
in consumer behavior and
expectations to identify the
new opportunities. Decide
what experience you want
to deliver, and then do so,
brilliantly.
R E -TO O L A N D
B E AG I L E
Automotive manufacturers
will need to think more
like researchers, act more
like experience designers
and code like software
companies. And they must
brace for the bumps, as
the road to the future
will be bumpy. Changes
in structure, process and
design will be needed,
which, in turn, usher in a
new era where available
automotive options will
extend far beyond any
color, so long as its not
black.

50
No 5

HOMES WITHOUT
B O U N DA R I E S
Intro_

DOM E S T I C H ELP
F I N D S I T S VO ICE
The connected home is now reality, but it doesnt feel all
that smart. With the launch of Google Home, Amazon Echos
emergence into the mainstream and steady growth for
Wi-Fi-enabled domestic controllers such as Nest. But it was
also the year that a commoditized approach to introducing
connectivity to household objects became evident.

In 2017 and beyond, organizations should look beyond device-


centric strategies to focus instead on designing and serving
home experiences that better meet individual householders
varying wants and needs. These services will add value
within seamless experiences that play out across traditional
boundaries and are highly personalized.

55
What happened_

C O NN E C T E D, BU T
NOT TH AT S M A R T
own artificially intelligent In Germany, Futteralhaus is
personal assistant to handle a proposition to design and
everything from playing sell compact, pre-built smart
music and identifying friends homes blending innovative
at the front door to baby smart technologies and
monitoring and virtual reality natural building materials with
data representations. minimalist design. The homes
create and sell renewable
By the end of the year, Amazon energy to the grid, and buyers
Echo was managing a growing can rent them out and control
Futteralhaus number of householders the process via an app.
shopping by voice control,
The connected home, a home Google had launched a major Futteralhaus highlights a
experience augmented by rival in the form of Google second important aspect of
smart technology, is a concept Home, and a plethora of the connected home that has
that dates back to the 1960s other companies were turning so far been underplayed: the
when Jim Sutherland, a quiet everything from lights to kettles fundamental shift connectivity
family man from Pittsburgh, on and off remotely. has brought about in our
designed and built the understanding and attitude
Yet, it was also becoming toward home.
ECHO IV, a computer system
clear that the automation
designed to control many
enabled by connected By 2016, home was no longer a
aspects of his home with his
devices was not enough. passive receiver of gas, water,
wife and children.
electricity and information
In Italy, a two-year pilot
Five decades later, from the outside world. Rather,
project called Casa Jasmina
Sutherlands dream is fast- it was fast becoming an active
is going beyond mere
becoming reality. generator and distributor of all
automation by providing a via the grid.
In early 2016, Facebook CEO, test bed for the development
Mark Zuckerberg, announced of a next-gen, open-source, Against the backdrop of an
hed begun developing his connected home services. upsurge in new wind, solar

56
What happened_

and hydro plants capacity, Flexible apartment rental any time since 1940. And
leading utilities companies services like WeLive makes as the number of older
were exploring new methods this explicit with their people in their 40s and 50s
to store and distribute tagline: Move in for months sharing flats has risen, new
energy, along with a new role or stay a few nights, WeLive generations of cohabitees
guiding customers toward is your home as long as you and renters have emerged.
local production and helping need.
them distribute it.
More young adults in the Increasingly, homes are
U.K. and U.S. are living required to be more flexible to
Home is also extending
with their parents than at accommodate differing needs.
beyond the physical.

Not so long ago, household


internet connections
enhanced the domestic tasks
conducted at home. Now,
our ability to conduct these
same activities anywhere is
raising expectations of home
services and ubiquitous
services, alike, and its
fueling an assumption
that home and domestic
activities are now portable.

Furthermore, the concept


of home is becoming more
complex and diverse. Airbnb
is helping break down
traditional boundaries in
significant ways so the
distinctions between home
and away is blurring.
Casa Jasmina
57
Whats missing_
Digital technology has created An over-emphasis on the realize new opportunities
many opportunities in our introduction of connectivity from harmonizing services
homes. Yet, the Jetsons-esque into household objects has to improve the experience
dream of the smart home resulted in the connected of multiperson, shared-
that solves our problems and home becoming increasingly household living.
makes life easier is yet to commoditized. Furthermore,
emerge. Worse, in too many there is a lack of focus on
cases, results so far have been how connectivity can address
underwhelming. the changing nature of home
and the different needs of
It still takes 11 hours to set
different household members.
up your connected kettle. A
connected fridge wont yet
talk to an Amazon shopping Focus must shift onto how
list. Five connected devices best to smooth out single
are turned on and off using connected experiences
five different apps. And there into helpful and,
are only so many people who increasingly, integrated
count automatic energy meter ones. Organizations must
readings as useful to their go beyond device-centric
daily life. strategies if they are to

Whats coming_
In 2017, the smart home will connected device. Within a do this with services built
mature significantly, as key decade, every electrical device around and for humans,
service providers including in the home will be linked to rather than technology and
telcos, cable operators, home the internet, Tony Fadell, Nest objects.
security companies, retailers Inc.s ex-CEO, believes. And
and device OEMs use Amazon this means more individuals The helpful home will be
Echo, Google Home and will be connected to their entirely focused on you and
environment and will be better obsessed with the smooth
Apple Home as a license to
informed about it.
experiment and bring to market running of challenges
new hardware and services. But connectivity is only the associated with managing it.
beginning. Its aim will be to make life as
Over the past ten years,
easy, safe and enjoyable as
focus has been on the mobile Home should become a possible, not simply to enable
phone as the single device to magical place no longer Wi-Fi.
control connected services. just somewhere to live and
Over the next ten, focus will sleep and eat. Connectivity Expect, too, the emergence
shift onto how to optimize will not be the main event. of a new generation of
the home environment Instead, it will enable a iceberg home services like
through integration of householder to create and
Thington, which combines
multiple connected devices. modify the particular in-
different smart home devices
home environment he wants,
Connected homes will grow into a single interface that
controlling it whenever he
rapidly by 30 percent a wants, even when he is away. appears to do little above the
year in the U.S. alone, where surface but actually works
22 percent of households Home will become a helpful tirelessly beneath the surface
now have at least one home that works. And it will on your behalf.

58
Already, connected fridges eBay for energy launched by Switchmate, a smart lighting
are making way for smart Open Utility and renewable device that magnetically
shopping services that energy supplier Good Energy, snaps onto any standard
remind you what to buy are emerging. toggle or rocker light switch
without being asked or go to quickly make it smart and
even further to restock your Expect Teslas next wave of controllable via an app.
fridge when an item runs out. energy products part of
In the U.K., Tesco is exploring CEO Elon Musks strategy Expect, too, the influence of
this through its own channel for a seamlessly integrated digital-butler assistants like
on If This Then That, a web- energy consumption and Google Home to extend and
based service, by offering generation future to cause blur the traditional confines
shoppers a variety of ways a stir. of the physical home by
to trigger purchases, such integrating in and out of
as automatically ordering an Connected plumbing or home experiences. In fact,
item if youre running low. lighting will make way for Amazon is already doing this
home infrastructure services. with the rollout of Amazon
Connected meters are Boilers can already order Echo assistant Alexa onto
making way for seamless their own repair visits, as Amazon Fire tablets.
energy management. with British Gass Boiler iQ
Personal energy assistant in the U.K. But how about
Flipper pays bills at the insurance and maintenance
lowest possible price of household equipment,
by flipping users to such as your boiler managed
the cheapest provider in the background or
automatically. And in automatically?
response to homeowners
switch to energy generation, At the other end of the scale,
online peer-to-peer energy expect simple solutions
marketplaces like Piclo, an that follow the lead of

Valuable experiences
matter most
How to respond_
Homeowners want be possible to utilize much The implications of the
technology to make life safer, more effectively than they helpful home are wide. It
easier, more enjoyable and are today. When youre on a could be a big opportunity
more personal not just more long vacation or work trip, (or threat) for the hospitality
connected. Organizations why doesnt your helpful industry, commerce giants,
priority must be to smooth home make you money platform companies, ride-
out connected episodes through Airbnb and organize sharing and AV industries,
into helpful experiences. everything from the rental to energy companies, consumer
Just like with autonomous cleaning to fridge stocking electronics firms and
vehicles, idle homes should for you? insurance.

59
Fjord suggests_
Fjord suggests_

S H I F T AWAY F R O M
G I M M I C KRY
TOWAR D R E A L
A R E AS O F VALUE
Too little attention was paid to turning
connected experiences into helpful ones in
2016s device-centric marketplace. Homes
will get smarter because digital services
companies will start providing more connected
experiences in and out of home.

Digital services companies must understand


what homeowners want from connected
technology. They must focus on the valuable
experiences that connectivity can now enable.
And they must rethink their approach to both
the technology and business ecosystems within
the home by capitalizing on the growth of
open APIs, which in turn means services can
exchange data, talk to and trigger each other
without direct user input.

Organizations will need to shift away from


gimmickry toward real areas of value if
innovators are to maintain a differentiated
position in the market and attract the average
homeowner (not just the technology-seduced)
Canary
to buy into their propositions.

R E -T H I N K Smart means more than just


automated or connected;
S M A R T TO B E it means clever, thoughtful
HELPFUL and considered. Act on this
accordingly by considering
first the impact on
people, their relationships,
preferences and environment
to determine the best action
and most effective channel.

61
Fjord suggests_

DESIGN FOR
U S E R , N OT
DEVICE Thington

Too much emphasis has


been placed on connecting
objects, and too little on
creating home experiences
that add real value by
capitalizing on connectivity.
Home automation sounds
like fun, but in reality, people
dont care enough. We
Technology is extending EXTEND HOME
home beyond its
must design services for
traditional physical
B E YO N D T H E
the user, not the device.
confines stretching P H YS I C A L
Get hyperpersonal to
harmonize shared living,
the benefits of safety, S PAC E
comfort and preferences
as personalization will
beyond the household.
increasingly take place
All-in-one security system
at both a household and
Canary is a powerful
individual level.
demonstration of this, as
is its belief that in the not-
so-distant future, users
will use audio to monitor
all of the environments
most important to them.
Organizations should
follow this approach
and seek to extend the Canary
benefits they can deliver,
as people transition
between different
environments and
emotional states.

62
No 6

HOURGLASS
BRANDS
Intro_

DONT GET
STUCK IN
THE MIDDLE
Across every sector of business, the brand landscape is
polarizing. At one end of the spectrum sit huge, platform
brands that believe they can either provide service
ecosystems or do anything in any market (or both), while at
the other are specialist brands with unique focus and clear
purpose. Both ends are creating fundamental challenges for
those that sit in between.

In 2017, brand owners occupying this middle space or


squeezed middle brands will ask themselves where they
sit and where they want to sit on this sliding scale to create
saliency. For some, the answer will be to expand their brand
permission space, acting as a platform for startups, for example.
Others will place greater focus on craft and purpose. All will
refocus to optimize their strategies accordingly.

67
What happened_

WHICH SIDE
OF THE BRAND
HOURGLASS ARE
YOU ON?
Since the mid-1990s, These companies focus is not orchestration, and others
technology has transformed on form but outperform. Their played both. But all were
the brand landscape into the neutrality invisibility, even working to benefit their
shape of an hourglass. helped them to be universally consumers, wherever they
embraced. And their less- were.
On one end, you have a new specific nature allowed for
breed of brands extending brand extensions that more Furthermore, brands began
beyond their original traditional companies with integrating seamlessly with
marketplace by mastering stronger identities would other service providers.
the laws of universal needs have struggled to achieve. Samsung-owned open
and user experiences. At the platform SmartThings, for
other end of the hourglass, So Amazon moved into example, offers consumers
technology has enabled delivering entertainment on the freedom of choice in
single-minded brands of all demand, the latest addition the connective devices and
sizes with a unique focus to to full on-demand music services through a thriving
prosper. streaming, and Google ecosystem of partners that
physically entered into our include Amazon Alexa and
Consider the success of homes with its smart, voice- Google Home.
Google, Amazon, Facebook, activated speaker Google
Uber, WeChat and more, Home. As a result, the goal posts
which has come about have shifted.
not so much because of By 2016, big brands had
outstanding identities and started to split into a No longer is it about a
unique character, but because collection of tools that work brand for brands sake. New
of their commitment to together, providing distinctive possibilities now matter most.
embracing universal values services ecosystems. Some
of the digital mindset, such of these brands were Look at Ubers recently
as efficiency, usability, orchestrators, some were redefined business mission:
accessibility and simplicity. part of someone elses to give you your time back.

68
JetSmarter

Or Snapchats claim to be for example with its and that those without will
mainly a camera company. environmental philanthropy be dropped.
and anti-materialistic stance
Then consider the unique is enjoying double-digit Brands with unique focus are
focus of brands at the growth. And despite food people-centered, creatively
opposite end of the deflation, Whole Foods excellent and unafraid to
hourglass. recently announced industry-
disrupt. They are innovative
leading sales per gross
and agile, too, so they
Some are small-scale startups square foot.
can adapt quickly to new
with a focus on craft the Unilever CEO Paul Polman is possibilities. But for the
ever-increasing array of even on record as declaring majority of other brands still
successful microbreweries stuck in the middle, this is just
that all Unilever brands must
and craft gins, for example, not the case.
have a purpose from now on,
which have benefitted from
lower costs for market entry
(via ease of sourcing physical
materials, supply chain access
and the ability to get to
market through social media).
Some, like private jet mobile
marketplace JetSmarter and
female sexuality website
OMGYes, are deploying
technology to disrupt.

Others, though larger, are


prospering in challenging
times by having a clear
sense of purpose. Patagonia,
Soulcycle
69
Whats missing_

GRAB THE CHANCE


TO DESIGN FOR A
BETTER FUTURE
In almost every sector, mid- flexibility or a sense of purpose, indicating a negative impact
market players unable to brands in the middle are at risk. on the bottom line, according
command the premium prices to Umair Haque in Betterness:
of specialists and/or without One reason for this vulnerability Economics for Humans.
sufficient scale are struggling is a lack of understanding of
But all too often, organizations
to find a way forward and their position existing or
squeezed in the middle fail to
stand out. desired in the rapidly evolving
identify and align themselves
ecosystems in which they
This dynamic is most visibly with the kind of meaningful
operate. Another is lack of
played out in retailing where purpose capable of fulfilling
purpose. Retailers, meanwhile,
major brands have been recently that. Also missing is the design
face an additional issue:
struggling to hold their ground. language adequate to articulate
investors expectations.
But the squeezed middle is now and flex with the constantly
Beyond the challenges of brand
a feature of many other markets evolving nature of todays
permission and agility, retailers relationships between brand
because of the rapid evolution of find they just cant invest owners and their audiences.
digital technology. like Amazon, or Facebook or Many players old and new
Google because their investors have entered the marketplace
Old, established players whose
treat them as well, retailers. with great products but
identities are defined by their
traditions are under threat weak brands in recent years.
However, todays uncertain Brands forced to redesign
like never before. Worse, the
times present organizations their inflexible and/or overly
struggle for the squeezed middle
with an opportunity to engage complicated brand identities in
is set to get even tougher in the
through practical steps to 2016 included Instagram, Uber
wake of a year of unprecedented
public mistrust and social and design for a better future. and Deliveroo.
political upheaval.
Over the last 30 years,
In an ever-changing world 80 academic studies have
in which concerns about attempted to document
sustainability, trust and the relationship between
authenticity are growing fast, social enterprise activities
these developments are now and corporate financial
undermining the trust and performance. The majority of
openness on which effective results (53 percent) point to
and authentic relationships a positive relationship, with
depend. And without scale and only five percent of studies

70
Whats coming_
By 2021, 20 percent of all ownership of entire experiences more single-focused brands
activities an individual engages across more touch points. with a clear and distinctive
in will involve at least one of purpose, as well as more
the top seven digital giants, And they will open themselves microbrands powered by
as the physical, financial and increasingly to integration cheaper access to technology
health care worlds become and collaboration, diluting and lowering barriers to entry.
more digital, Gartner recently the traditional lines between
predicted. consumers, vendors and Squeezed, middle-of-the-
producers. market brands that fail to
In 2017 and beyond, large build their positions by
platform brands will keep Unique-focus brands, finding new and powerful
expanding their permission meanwhile, will increase in ways to stand out will go out
space. They will take greater number due to the addition of of business, fast.

How to
respond_
Brands squeezed in the
middle must learn from
those at both ends of the
brand hourglass.

While many Silicon Valley


disruptors talk of digital
products, they are in fact
services. Uber, for example,
is a service ecosystem of
which the app is just one
touch point.

All brands should


acknowledge that anything
they create is part of
natural, social and economic
ecosystems. They must shift
their thinking away from an
industrial, assembly line and
silo-based mindset to a new
economy approach based on
betterness and circularity.

71
Fjord suggests_
Fjord suggests_

A R E YOU A
L I V I NG B RA N D ?
Brands now find themselves in an environment in which they
must change in real time to flex and adapt to meet customers
wants and needs across a bewildering array of channels, some
of which they have only limited control over.

At Fjord, we have identified key qualities of those brands


most likely to prosper we call these brands Living Brands
and how those qualities can be developed. How a brand
behaves is now its critical differentiator as, increasingly,
brands are defined by the relationship they have with their
users.

Brands must consider whether they are a platform in their


own right or part of an ecosystem surrounding someone elses
platform. Implementation of the Revised Payment Service
Director (PSD2) in Europe in 2018, which will mean the
opening of APIs for financial services, will make this especially
mission-critical for banks.

All brands can learn to shed what Koolhaas termed the


straitjacket of identity. Then they must make their purpose
and position tangible in a meaningful and adaptable way.

D E C I D E W H AT K I N D O F L I V I N G
B R A N D YO U W I L L B E
Define your brands behavior in multiple environments. And
understand what sort of brand you can be. Are you a utility brand
something to use, with related interactions with users on a
given occasion? Or are you an audience brand something to say,
involving occasional interactions? What about an experience brand
Soulcycle
something to do, involving continuous interaction as you become
part of a users daily life? Or a relationship brand something to be
related to, which can transform a users daily life?

73
Fjord suggests_

TO E S C A P E
THE SQUEEZED
MIDDLE, FIND
(O R R E - F I N D)
YO U R P U R P O S E
If an organization cannot
imagine a purpose to
exist beyond economic
growth, there is a danger
it has no useful purpose or
values that will resonate
with people. How is your
organization leaving
the world a better place Thinx
through its activities?
For example, consider
developing a circular-
economy strategy to
recapture and take
responsibility for any
products your business
puts into the world. Convey
your purpose effectively
using the right language.
Define an identity that
makes that purpose
tangible. Design language
must be unique and flexible
enough to grow over time, T H I N K B E YO N D
avoiding the temptation
to replicate the common
SERVICE
language that the startup As customers get more
world has imposed. sophisticated, mere service
Embrace design culture from the organizations
and free interpretation. If they choose to deal with is
purpose is shared and its no longer enough. Brands
essence is clear, coherence will grow if they work
is guaranteed. harder to demonstrate
the clear difference they

Brands squeezed
can make as has been
done successfully by
underwear brand Thinx,

in the middle must fitness workout brand


Sweat with Kayla, or

learn from brands


indoor cycle fitness brand
SoulCycle. Focus on more
than experience to create

at both ends of meaningful relationships


and a sense of belonging

the hourglass. that many of the big,


generic brands lack.

74
No 7

ME, MYSELF
AND AI
Intro_

HUMANIZING
C H AT B O T S
Artificial intelligence This will drive a growing
(AI) grabbed widespread need for machine-learning
attention in 2016. But while capabilities to become more
it has evolved exponentially emotionally intelligent,
AI-enabled chatbots within paving way for the next
messaging apps were kicked generation of digital
into the mainstream last services. Organizations
year the technology risks approach to developing
being overhyped. True, AI products and services
has matured; yet it is still far will shift, as emotional
from a human experience, as intelligence becomes a
most chatbots are currently critical AI differentiator.
almost indistinguishable.

In 2017, AIs development


will accelerate as it becomes
an established part of
organizations design
thinking, and as such, its
development will accelerate.

Anyone who makes anything


now is interested in a
conversational interface.
Whether its a device like a TV
or a fridge or an app, they are
thinking what is the next thing
for my product?

Kyvan Mohajer, CEO, SoundHound,


maker of Hound

79
What happened_

C O N V E R S AT I O N S
ARE THE NEW
I N T E R FA C E
AI a machines ability to of chatbots. Designed to look
learn and make its own as if they sit inside messaging
decisions has been with us apps, chatbots enable users
for more than 60 years. But it to have a back-and-forth
took voice-controlled digital conversation with a machine
assistants and AI chatbots that feels almost human.
to bring it to the attention of
many. In 2015, the use of messaging
apps overtook social media
Back in 2015, in an effort to use, a key turning point.
compete with Google Now Then, in early 2016, Facebook
and Siri, Microsoft launched announced businesses could
virtual assistant Cortana deliver automated customer
with the hope that it would support, e-commerce
eventually interact with users guidance, content and
in an anticipatory manner. interactive experiences with
users talking to Messenger
Within a year, it positioned chatbots, just like they talk to
Cortana across all of friends.
its services in a bid to
democratize AI, as newer Within six months, 33,000
rivals pushed ever-improving developers had written
functionality. Through 34,000 Messenger bots,
partnerships with Yelp and with the best uses involving
Uber, for example, Hound driving people toward Google
enabled users to perform subscriptions, facilitating
more complex and integrated small transactions and
multitasking from within its customer service.
app.
Today, talking to an AI is
What really changed the expected by many to soon
perceptions of AI, however, become the way we interact
was the growing prevalence with our computers.

80
What happened_

Microsoft calls chatbots the teams to collaborate in open


new apps, and Facebook forums or talk casually and
extolls the power of the catch up in private messages.
threads of conversation Howdy, for example, is a
in apps such as Facebook chatbot developed for team
Messenger and WhatsApp. communication app Slack
The success of Amazon Echo, that collects answers on your
meanwhile, points to new behalf, while X.ai is a bot
horizons for AI and voice- that intelligently schedules
driven chatbots. meetings via email.

AI chatbots have already AI has even entered health


enabled companies to scale care. U.K. startup Babylon Facebook Messenger

highly personal services never Healths AI triage tool uses


possible before. algorithms drawing on a
clinical database to answer
Online retailer StitchFix used patients questions before
AI to massively scale the they talk to a doctor.
reach of personal service, via
personal stylists. With the
help of 60 data scientists,
it deployed AI bots to help
2,800 part-time stylists make
informed decisions based
on 100 to 150 personal data
points for each consumer
from sleeve length to bra size.

Jostling for position in the


workplace, meanwhile, are Humans are not
obsolete just yet
AI chatbots designed to
enhance enterprise social
network apps that enable

81
Whats missing_
AI is far from the human highly sensitive, human
experience of our dreams. circumstances. But, just as
It has no apparent human important, expectations of
feeling, understanding or a more human experience
ability to conceptualize. And will naturally grow as more
this has limited the degree of us allow chatbots into
of emotional intelligence our personal space. In
possible to build into a digital conversation, we change our
service. behavior in response to how
whoever we are talking to is
AI-powered virtual assistants feeling or what we think they
lack empathy as has been are thinking.
poignantly demonstrated
by users asking for help People are imperfect and
following an emotionally AI-enabled services need to
harrowing event, such as be cleverly crafted to both
sexual assault, or when receive emotional input and
contemplating suicide. respond in an emotionally
intelligent way.
The need for EQ in chatbots
is obvious from such
SoundHound

Whats coming_
AI will make a further leap technology that can read and
forward in 2017, driving interpret the emotional state
services with contextually of our facial expressions.
aware experiences and the
ability to understand and Collectively, these new
respond like a human. technologies represent the
next wave of AI and provide
IBMs Watson Bluemix the means for organizations to
platform offers a text tone build services that can actually
analyzer and personality act in intelligent ways.
analysis through its natural
language processor. The Services using these AI
emotional well-being app capabilities will know if the
Empath and real-time person on the other end of
emotional intelligence solution the conversation is not paying
Cogitos technologies both attention, or is angry, worried
offer voice analysis that can or sad. And they will also know
detect and interpret our how to react appropriately,
emotional state, not only by in real time. But dont worry,
voice inflection but also by the humans are not obsolete
pattern and rhythm in which just yet. Tomorrows more
we say things. Microsoft, emotionally intelligent digital
Mitsuku meanwhile, has developed a services will require humans

82
to fulfil their true emotional to make better decisions they will be able to perceive,
potential for a while, at least. interpreting and responding to interpret and respond with a
an intended task. level of emotional intelligence
Data-crunching AI machine that has never previously
learning software like Kensho Consider your AI chatbot been possible. While machine-
is rapidly replacing the role as a character in a play. This learning capabilities will
of the financial analyst on character needs a defined become more emotionally
Wall Street. However, human personality and a written intelligent, the usefulness of
interaction-based services, script. But more importantly, machine capabilities lies in
like conversational AIs, will for a non-empathetic actor like the fact they are not human
require a cooperation between an AI chatbot, a great director they see things differently and
humans and AI, both from and well-written screenplay make connections we do not
behind and in front of the are essential. Follow the lead and cannot make.
technology. This AI-human set by Google when it hired
symbiosis will be essential to comedy writers to spice up Conversations are driving
create chatbots with empathy the language and add a bit of this next wave of digital. And
and emotion. personality to Google Home. by 2020, the average person
Tomorrows digital services will have more conversations
Todays chatbots only will be able to interact with with chatbots than with his
understand how to sort empathy on an emotional or her spouse without even
through data and learn how level. With the help of humans, realizing it.

How to respond_
With the openness and ease In order to create the most
of use that platforms have relevant and compelling
cultivated, an extraordinarily services, they will need to read
fertile environment now and predict the values and
exists, which means that personality of the audiences
anyone can go online and they are engaging with and
start building a self-learning persuade customers to share
chatbot. personal information. And they
must develop the capability to
Organizations that want to understand human language
develop the next wave of and incorporate that into
emotionally and contextually these services.
aware AI chatbots must Keep the conversation in
define themselves quite context and create magic
literally as a person. They by ensuring the chatbots
must embed that persons users interact with have
values into a variety of the appropriate personality.
suitable personalities Only in this way will brand
appropriate for their owners achieve the brand
particular context, because differentiation so lacking in
there is not one universal so many AI applications AI-
personality that suits every enabled chatbots, especially
situation or every person. today.
Mircosoft Cortana
83
Fjord suggests_
Fjord suggests_

P E R S ON A L I T I E S
A R E T H E N E W UX
Brand owners must understand that if conversations are
the interface, then personalities are the new UX, and they
must address their creation and development accordingly.

B E T R A N S PA R E N T
People need to know who or what they are interacting
with. The risk with AI is that people end up feeling
duped, especially if the technology reaches a level almost
indistinguishable from actual human experience. The
Mitsuku chatbot winner of the Loebner Prize in 2016 for
most human-like AI - can manage a conversation for up
to 25 minutes and achieved a 90 percent human score. Be
transparent, and users will feel the delight and marvel at the
quality of your service.

D E F I N E VA L U E S S P E C I F I C
TO YO U R B R A N D
As services become more emotionally intelligent, the
organizations behind them will face difficult ethical issues,
forcing them to decide how best to act. For example, should
a provider of autonomous vehicles prioritize protecting
an AVs passengers or the people it may hit? Mercedes
has already defined its value: passengers first, bystanders
second. Organizations must be clear about where they stand
on the issues relative to their business. Define personal
values for your AI that will arm your AI to make decisions
your brand can stand behind.

85
Fjord suggests_

P R OT E C T T H E U S E R
Users must be involved in the evolution of an AI service
if it is to deliver a more human experience. To develop
and enhance AI, businesses will have access to highly
personal user information. Trust is key. Adopt an opt-
in policy where users can easily choose the personal
information they share and keep what they share
safe. Best of all, make it clear that the chatbot is their
assistant, not the corporations. Ensuring users feel the
software is on their side will be vital for acceptance.

G O B E YO N D T E X T
If you are serious about bringing EQ to AI or a chatbot,
consider carefully how to communicate this in a medium
that is notorious for misinterpretations. Alternatives to
text include emoticons and chatbots that send pictures.
Whatever the language, however, tone of voice will be key.

Just how the chatbot market will evolve from here


remains to be seen. One possibility is that it follows the
pattern of the apps market a few years ago when, after
initial rapid growth, users stopped using them.

This may not happen within the next year but remember,
EQ will help you learn faster and build loyalty more
quickly before the chatbot market consolidates.

86
No 8

UNINTENDED
CONSEQUENCES
Intro_

CUSTOMER-
CENTRIC
CANNIBALS

Organizations across Both are admirable in their


every sector are becoming intent. But the same cant
more consumer-centric always be said when it
by harnessing digital comes to their side effects.
technologies. But recent
debates about Airbnbs In 2017, consumers and
alleged impact on local media will challenge the
rental markets, the impact actions of the organizations
of fake news stories on the that impact their lives
U.S. presidential election even more, not less,
and social medias role in forcing digital ethics up
Kim Kardashians $5 million corporate and legislative
jewelry robbery highlighted agendas. Organizations
the risks associated with the will focus more closely
unintended consequences of not just on their customer
consumer-centricity. experience and employee
experience but also their
Hyperconsumer-centricity social experience to guard
and technology feed off against the unintended
each other as businesses consequences of their
seek to give customers what activities.
they want using digital.

91
What happened_

T H E G ROW I NG
I M POR TAN C E
OF SOC I A L
E X P E R I E NC E
The unintended consequence the gig economy in which burgeoning industry for
of a wide array of technology- temporary positions and peddling fake news stories
enabled business strategies short-term engagements are online.
have made headlines. common.
When Kim Kardashian lost
In the U.S., officials and The unintended consequence $5 million-worth of jewelry
civic leaders from a dozen of artificial intelligence (AI), when she was robbed in Paris,
U.S. cities called for the augmented reality (AR) many speculated the thieves
Federal Trade Commission and social media also made had seen her showing off
to investigate the short- headlines. her jewelry on social media.
term property industry. This In China, meanwhile, some
was in the light of Airbnbs When Microsoft released teachers and parents used
alleged negative impact on its millennial chatbot Tay, WeChat to extend Chinas
affordable housing, even it quickly began promoting school day into the night,
though Airbnbs own research extreme views on Twitter. perpetuating round-the-clock
conducted in a number of Meanwhile, organizers of school pressure.
cities suggests it is having the first international beauty
little impact on the rental contest judged by AI, sparked Even Pokmon GO was
market. controversy when the AIs not without unintended
algorithm favored entrants consequences when armed
In the U.K., Ubers right to with light skin. robbers used it to lure players
classify its drivers as self- into a trap in Missouri.
employed was overruled After social media platforms
by a landmark employment eliminated human editors who Cyber security continues
tribunal that also found the curated trending news stories, to be top of mind as data
company should pay drivers the algorithms that replaced breaches are never far from
a national living wage and them promoted untrue and the headlines. Privacy and
holiday pay a ruling with vulgar stories on newsfeeds, security concerns are now so
profound implications for fueling concern about the great that they have stopped

92
What happened_

Acknowledge and
one-half of American internet
users from doing basic things

act on your social


like posting to social networks
or buying online.

responsibility The diminishing of our skills as


we become increasingly reliant
on technology is another
unintended consequence a
paradox of automation that
applies to an ever-widening
variety of contexts, from
airplane pilots to cruise ship
crews to operators of nuclear
power plants.

These examples demonstrate


how the unintended
consequences of extreme
consumer-centricity is fast-
becoming a pressing challenge
for all organizations, whatever
their area of interest or
activities. Everything that is
created requires something
else to be changed, destroyed
or depleted. And the
ramifications are everywhere
to see.

93
Whats missing _
We believe organizations are people overcome conditions
not thinking hard enough such as agoraphobia, for
about the implications of the example, by using therapy
business decisions they make that brings sufferers
and their impact on not just into contact with virtual
the consumer or employee
humans. Equally, they can
experience but on society as
offer a back door to crime
a whole. In other words, the
and misdemeanor. We
social experience.
challenge organizations to
Digital services can be a acknowledge and act on their
power for good, helping social responsibility.

Whats coming_
In 2017 there will be a sharp robotics and AI which (or, indeed, who governs
rise in interest in digital called for a commission to be consumer-centricity).
ethics and an upscaling of established to address these Already, people have been
the debate on conscious technologies likely ethical, calling for discussion
capitalism. Expect more legal and social impact the of merits of the circular
initiatives like the Leverhulme British government is now economy, which with its
Centre for the Future of under pressure to act. emphasis on circular product
Intelligence, a research center In 2017, the U.S. Treasury and process design that
launched by Cambridge Departments Office of promotes product reuse,
University to explore the the Comptroller of the recycling and cascading
opportunities and challenges Currency will launch an office offers a possible solution
posed to humanity by the dedicated to responsible to the planets emerging
development of AI. innovation, and implement resource problems. This
a formal framework to groundswell will increase
Meanwhile, new structures improve its ability to identify, with growing pressure on
to help manage unintended understand and respond to governments to address
consequences will be put in financial innovation affecting the societal impact of new
place. the U.S. federal banking technologies with fresh
system. This is a model governance to encourage
In October 2016, the U.S. many other government greater organizational
government, which has departments around the responsibility for their
funded AI for 50 years, world will surely follow. actions.
published its plan for AIs
future with key guideline We believe every organization The unfolding plans of some
principles including: AI must ask themselves the of our most consumer-centric
should augment humanity, tough questions: how much businesses will provide the
not replace it; AI should be convenience they want, catalyst for change.
ethical; and everyone should at what point invasion of
have equal opportunity to privacy becomes too great a Consider Uber. Justifiably
develop AI systems. price to pay, what happens determined to ensure the
In the U.K., following a when data is captured by imminent arrival of the
Science and Technology a smart city and, more to autonomous vehicle does
Committee report on the point, how to opt out not undermine its business,

94
it is investing heavily in AV and demand organizations to develop ways to bridge the
technology. respond. Backlash will grow, gap that exists in transferring
too, against employment employees ratings and
Improved profitability and conditions that are an skills on one platform, such
efficiency will come from unintended consequence as Uber, to another like
jettisoning human drivers of technological advances TaskRabbit.
altogether. But this will have in areas beyond fashion,
numerous other unintended consumer food and medical We will need to address the
consequences. Pressure will products. On the front needs and best interests of
grow from individuals, too, line, the prioritization of those millions of citizens
with a rise in activism. lowering costs and increasing who dont have access to
customer-centricity will
the growing array of local,
Growing numbers of replace low-grade jobs. New
transparent, traceable digital
people are questioning the employment frameworks are
services now being enjoyed
algorithms that increasingly already emerging to address
by the well-heeled urban
influence their lives. Many this, but more will follow.
elite. When everything is
have tried to crack the
code behind Facebooks Meta services will increase digitized and basic public
feed. Others are concerned to help workers involved in services are moved online,
that the use of algorithms digital piece work, which what happens to the digital
to feed news according to is notoriously low-paid, to disenfranchised, and how can
individual preferences are manage the stress and strain they find meaningful and
reducing public debate. of managing several parallel dignified employment in a
More of us will question the forms of digital employment. digital age?
nature of automation itself Opportunities will grow to

We need to address the needs


of citizens, who dont have
access to digital services
Pokmon GO

How to respond_
The unintended prevent all possible misuse,
consequences of digitally and regulators cannot keep
powered consumer-centricity pace with the speed of
are becoming some of the technological advancement,
thorniest issues of our age. Gartners Frank Buytendijk
But organizations cannot shy pointed out. And while
away from the challenge of pre-testing is vital, its
finding ways to pre-empt and also important to build
address them. in features that enable
constant monitoring or smart
Its hard to develop a set machines for unintended
of fixed ethical rules that consequence.

01
Fjord suggests_
Fjord suggests_

Q U E S T I O N W H AT
I M PAC T YO U R
AC T I O N S W I L L
H AV E O N S O C I E T Y
To guard against the unintended consequences of their
actions, organizations must address the bigger picture:

THINK SOCIAL
EXPERIENCE
Organizations readily
consider the customer
experience and employee
experience. Now they must
address social experience,
too the wider, social impact
of what they are doing. They
must question what impact
their actions will have on
society or the environment,
where there will be hidden
costs, and where they are
most likely to be exposed.

MAKE PEOPLE THE HEART OF


E V E R Y T H I N G YO U D O
Ask what can and should people continue to do that cannot
be automated? Organizations must find ways to preserve and
promote the dignity of work and ensure the value of human
beings sits at the heart of their digital services. Embracing
social experience, as well as consumer and employee
experience, means accepting your moral obligation to reach
and include the excluded.

97
Fjord suggests_

PRIORITIZE
DIVERSITY
Consider more closely the
diversity of the people
you are designing for and
the people who design for
you. A digital service is
only ever the product of
its designers and coders,

Digital ethics.
and as such, ensuring the
diversity of teams creating
these new products and
services will be key. You will
need to design automation.
A new priority
The more perspectives
introduced into that design
and development process,
the better and more
inclusive that automation
will be and the more
unintended consequences
you can avoid. L E A R N I N G A N D E VO L U T I O N
Once, people learned skills in school, on
apprenticeships and at university. Now, thats no longer
enough; continuous learning and development is critical
to stay relevant in a world thats constantly changing.
The best employers will look for employees hungry to
learn, and, vice versa, the best employees will look for
routes to continual learning and skills development.

98
REFERENCES Ari Levy, CNBC,
Snapchat investors are buying into a
Joshua Freedman, Sixseconds,
Case Study: Emotional Intelligence
For hyperlinks please visit: camera company for People-First Leadership at FedEx
October 13, 2016 Express
trends.fjordnet.com/ref January 14, 2015
Graham Rapsey, Crafted Stories,
Stefan Sagmeister says youre not a Lillian Cunningham,
storyteller The Washington Post,
EPHEMERAL STORIES Tony Hsieh got rid of bosses at Zappos
Larry Schmitt, Inovo Group, and thats not even his biggest idea
Sarah Frier, Bloomberg, The Inevitable Understanding the 12 December 1, 2015
Facebook Falls Most in 9 Months as Technological Forces That Will Shape Our
Blistering Growth Set to Slow Future Statistic Brain,
November 2, 2016 Netflix Company Stats
Internet Live Stats
Chase Buckle, global web index, IMAGES
Digital consumers own 3.64 connected Amy Mitchell, Jeffrey Gottfried, Katrina Microsoft Culture
devices February 18, 2016 Eva Matsa, Pew Research Center, (used with permission from Microsoft)
Millennials and Political News http://news.microsoft.com/imagegallery/
Tess Danielson and Nathan McAlone, June 1, 2015
Business Insider UK,
Epic slide deck from former Yahoo board Scott Bixby, The Guardian,
The end of Trump: how Facebook
member lays out the future of tech
deepens millennials confirmation bias BLURRED REALITY
and media
October 21, 2015 October 1, 2016
Stuart Dredge, The Guardian,
Could virtual reality revolutionise crisis-
Leon Watson, The Telegraph, BBC,
response filmmaking?
Humans have shorter attention span Post-truth declared word of the year by
August 13, 2015
than goldfish, thanks to smartphones Oxford Dictionaries
May 15, 2015 November 16, 2016
Rachel Power, VR Tech,
Eric Enge, Moz, New VR experience shows what its like
Jason Lynch, Adweek, to live with autism
U.S. Adults Consume an Entire Hour A Clear Path for Marketers to Surviving
Content Shock June 10, 2016
More of Media Per Day Than They Did
Just Last Year September 9, 2015
Lockheed Martin Website
June 27, 2016
Saqib Shah, Digital Trends,
No stopping Snapchat: App predicted to Sarah Buhr, TechCrunch,
George Arnett, The Guardian, Rebecca Minkoffs Fashion Week show
One in four UK smartphone owners does reach 217M users by end of 2017
August 25, 2016 uses augmented reality to help real
not make phone calls weekly women shop the look live
September 8, 2016 September 9, 2016
Everlane Unedited
Jim Edwards, Business Insider, November 6, 2014
Matt Weinberger, Business Insider,
PLANET SELFIE: Were Now Posting A Augmented reality is going from
Staggering 1.8 Billion Photos Every Day Jason Lynch, Adweek,
The Rocky Horror Picture Show Pokmon Go to the factory floor
May 28, 2014 October 25, 2016
Will Feature Snapchats First Live TV
Anil Sabharwal, Google Blog, Activations
October 20, 2016 Thyssenkrupp Website
Google Photos: One year, 200 million
users, and a whole lot of selfies Alex Hern, The Guardian,
May 27, 2016 Google announces first smartphone Pixel
as it happened
Neil Cohn, BBC, SHINY API PEOPLE October 4, 2016
Will emoji become a new language?
October 13, 2015 451 Research, Jeff Wasson, Medium,
Cisco Entrepreneurs in Residence VR Investment is Hot! Startup
program showcases IoT startup Investment is Not?
Daniel Farey-Jones, Campaign, May 31, 2016
Asos jumps on new Instagram video January 19, 2016
carousel ads Olof Schybergson and Baiju Shah,
May 4, 2016 Goldman Sachs, Equity Research,
Fast Company, January 13, 2016
Can Corporate And Creative Cultures
Shorty Awards, Ever Truly Merge? Microsoft, Microsoft HoloLens
AirBnB Instagram April 4, 2016
Kevin Kelly, Wired,
Richard Nieva, CNET, Dieter Bohn and Ellis Hamburger, Hyper Vision
Facebook is testing Snapchat-like The Verge, May, 2016
features in its main app Redesigning Google: how Larry Page
October 28, 2016 engineered a beautiful revolution Jamie Feltham, VentureBeat,
January 24, 2013 Oculus VR is adding more than 100
Sarah Frier, Bloomberg, jobs as it plots its augmented reality
Snapchat User Stories Fuel 10 Billion Laura Brown, Delight US, expansion
Daily Video Views Suzanne Pellican: Getting Design for October 29, 2016
April 28, 2016 Delight into Your Organizational DNA
October 29, 2015 Jose Fermoso, The Guardian,
Sarah Frier, Bloomberg, Facebook invests $250m more in VR as
Tech Market Review,
Snapchat Passes Twitter in Daily Usage Zuckerberg shows off wireless Oculus
Mixed Results From Intuit
June 2, 2016 October 7, 2016
August 24, 2016

Christopher Heine, Adweek, Helen H. Wang, Forbes,


Mike Murphy, Quartz,
Snapchat Launches a Colossal Expansion From Virtual Reality To Personalized
Ford is solving problems by getting all
of its Advertising, Ushering in a New Era Experiences: Alibaba Is Bringing Us The
its employees to think like inventors
for the App Future Of Retail This Singles Day
September 11, 2016
June 13, 2016 November 6, 2016

101
Alfred Ng, Cnet, American Planning Association Canary Website
Facebook shows how its gonna make Planning for the Autonomous Vehicle
virtual reality social Revolution
October 6, 2016
Kirsten Korosec, Fortune, HOURGLASS BRANDS
IMAGES The Number of Miles Cars Travel is About
to Explode Dan Seifert, The Verge,
HoloLens November 17, 2015 Amazons full on-demand streaming
(used with permission from Microsoft) music service launches today
http://news.microsoft.com/imagegallery/ Jack Stewart, Wired, October 12, 2016
In the Self-Driving Future, Cars Are the
Mars Experience New Arcades Napier Lopez, The Next Web,
(used with permission Lockheed Martin) October 25, 2016 Google Home finally has a price and
http://www.lockheedmartin.com/us/ release date
multimedia.html Blair Sonnen, Control4, September 2016
The Connected Car Meets The
Whale image Connected Home Business Wire
(used with permission from Magic Leap) January 9, 2016 SmartThings works with Google Home
https://www.magicleap.com/#/home October 4, 2016

Ken Yeung, VentureBeat,


HOMES WITHOUT Uber is rolling out a big redesign
WORLD ON WHEELS powered by machine learning
BOUNDARIES November 2, 2016
Mercedes-Benz Website
Mark Zuckerberg, Facebook
D.J. Sherrets, TechCrunch,
NuTonomy Website According to its cofounder and CEO
Casa Jasmina Website
Snapchat is mainly a camera company
Mike Murphy, Alison Griswold, Quartz, April 20, 2016
Futteralhaus Website
This is what its like to ride in a self-
driving Uber John OCeallaigh, The Telegraph
Arthur Neslen, The Guardian,
September 14, 2016 How to easily fly by private jet for free
Renewable energy smashes global
August 11, 2016
Alex Davis, Wired, records in 2015, report shows
June 1, 2016
Ubers Self-Driving Truck Makes Its First Laura Bates, The Guardian,
Delivery: 50,000 Beers A frank, educational, instructional
WeLive Website
October 25, 2016 website about female sexuality?
Office For National Statistics, OMGYes!
National Highway Traffic Safety March 5, 2016
Families and households in the UK: 2016
Administration,
November 4, 2016
Federal Automated Vehicles Policy J.B. MacKinnon, The New Yorker,
September 2016 Patagonias Anti-Growth Strategy
Drew Desilver, Pew Research Center,
In the U.S. and abroad, more young May 21, 2015
Hope Reese, TechRepublic,
adults are living with their parents
US DOT unveils worlds first autonomous Sarah Whitten, CNBC,
May 24, 2016
vehicle policy, ushering in age of Whole Foods eliminates co-CEO
driverless cars structure, reports quarterly results
Bonnie Malkin, The Guardian,
September 20, 2016 November 2, 2016
English man spends 11 hours trying to
make cup of tea with Wi-Fi kettle
Dr. Alexander Hars, Driverless Future, Financial Times Website
October 12, 2016
The race for fully self-driving cars has
reached a pivotal point Umair Haque, Harvard Business Review,
McKinsey&Company,
August 24, 2016 The Betterness Manifesto
The promise of the connected home
August 2016 May 20, 2016
Fred Lambert, Electrek,
BMW will launch the electric and Sarah Perez, TechCrunch,
Marcus Fair, Deezen,
autonomous iNext in 2021, new i8 in 2018 Instagrams big redesign goes live with
Within ten years everything will have
and not much in-between a colorful new icon, black-and-white app
data in it, says Nest CEO
May 2016 and more
May 24, 2014
May 11, 2016
Ford,
Thington Website
Autonomous Vehicle and Silicon Valley Jessi Hempel, Wired,
Investments The Inside Story of Ubers Radical
Tesco Labs Website
August 2016 Rebranding
Flipper Website February 2, 2016
Daniello Muoio, Business Insider,
Tesla just made a big move to take on Deliveroo Design Team, Medium,
Open Utility Website
Uber Behind our new visual identity
October 26, 2016 Alice Morby, Deezen, September 5, 2016
Tesla and SolarCity unveil inconspicuous
Joon Ian Wong, Quartz, Heather Pemberton Levy, Gartner,
solar roof tiles with
A London startup says it will create Gartner Predicts a Virtual World of
quasi-infinite lifespan
driverless cars by 2019, beating Ford and Exponential Change
October 31, 2016
BMW by two years October 10, 2016
August 17, 2016 Centrica,
British Gas launches first of its kind Accenture Payment Services,
Uber, Seizing the Opportunities Unlocked
Boiler IQ
Uber & Spotify = Music for Your Ride by the EUs Revised Payment Services
March 15, 2016
November 17, 2014 Directive
SwitchMate Website 2016
Uber,
Affordable rides with your delicious Amelia Heatman, Wired, Andrew MacKenzie, Arch Daily,
coffee? Amazons Fire TV Stick gets a smart Rem Koolhaas Current Fascinations: On
June 12, 2016 Identity, Asia, the Biennale, & More
upgrade to work with Alexa
September 29, 2016 March 19, 2016

102
ME, MYSELF AND AI Adam Milton-Barker, VentureBeat, Tim Harford, The Guardian,
Mitsuku chatbot wins Loebner Prize for Crash: how computers are setting us up
Matthew Lynley, TechCrunch, most humanlike A.I., yet again for disaster
Hound, a voice-powered virtual assistant October 15, 2016 October 11, 2016
app, launches publicly
March 1, 2016 David Z. Morris, Fortune, Anna Berril, Psychologies,
Mercedes-Benzs Self-Driving Cars Is cybertherapy the future?
Brad Jones, Digital Trends, Would Choose Passenger Lives November 24, 2010
Is Cortana a dangerous step toward Over Bystanders
artificial intelligence? October 15, 2016 University of Cambridge,
February 14, 2015 The future of intelligence: Cambridge
IMAGES University launches new centre to study
Jonathan Vanian, Fortune, AI and the future of humanity
Microsoft CEO Satya Nadella Has Much Cortana December 3, 2015
To Say About Artificial Intelligence (used with permission from Microsoft)
September 26, 2016 http://news.microsoft.com/imageGallery/ WhiteHouse.Gov,
Preparing for the future of
Nick Statt, The Verge, Artificial Intelligence
Hound is a digital assistant thats faster October 2016
and smarter than Siri, Google Now, UNINTENDED
and Cortana House of Commons,
CONSEQUENCES Robotics and Artificial Intelligence
March 1, 2016
13 September, 2016
Alexander Zaitchik, The Guardian
Kurt Wagner, CNBC, Airbnb is driving up the rent in your
Bots, explained Office of the Controller Currency,
urban neighborhood Responsible Innovation
April 11, 2016 October 17, 2016
Business Insider, Ellen MacArthur Foundation,
Jim Edwards, Business Insider, Circular Economy
Messaging apps are now bigger than Heres exactly what Airbnb does to rent
social networks in popular cities
September 20, 2016 Laurence Goasduff, Gartner,
October 20, 2016 Kick-Start the Conversation on
Josh Constine, TechCrunch, Digital Ethics
Hillary Osborne, The Guardian, March 4, 2016
Facebook launches Messenger platform Uber loses right to classify UK drivers
with chatbots as self-employed
April 20, 2016 October 28, 2016
Stuart Dredge, The Guardian, Elle Hunt, The Guardian,
Why Facebook and Microsoft say Several images were also found
Tay, Microsofts AI chatbot, gets a crash
chatbots are the talk of the town
September 18, 2016
course in racism from Twitter on the amazing site Unsplash,
March 24, 2016
a BIG thanks to them and their
Sharon Gaudin, ComputerWorld, Dave Gershgorn, Quartz,
At Stitch Fix, data scientists and A.I. When artificial intelligence judges a
excellent photographers.
become personal stylists
May 6, 2016
beauty contest, white people win unsplash.com
September 6, 2016
Jordan Novet, VentureBeat, Terrence McCoy, The Washington Post,
Slack bot maker Howdy launches For the new yellow journalists,
with $1.5M opportunity comes in clicks and bucks
October 20, 2015 November 20, 2016
x.ai Website Henry Samuel and Nick Allen,
The Telegraph,
Digital Health, Karl Lagerfeld: Kim Kardashian cannot
Babylon Health launches new AI display wealth then be surprised when
triage tool she is robbed
June 7, 2016 October 4, 2016
Rama Akkiraju, IBM Watson, Yiting Sun, MIT Technology Review,
IBM Watson Tone Analyzer new service WeChat Is Extending Chinas School
now available
Days Well into the Night
July 16, 2016
March 8, 2016
Allison Linn, Microsoft,
Alfred Ng, Daily News,
Happy? Sad? Angry? This Microsoft tool Thieves using Pokmon Go to find
recognizes emotions in pictures players to steal from in Missouri; at least 11
November 11, 2016
people robbed
July 11, 2016
Nathaniel Popper, New York Times,
The Robots Are Coming for Wall Street Zlata Rodionova, Independent,
February 25, 2016
Yahoo hack: Worlds biggest data breach
could compromise Verizon deal and cost
Kevin J. Ryan, Inc.,
hundreds of millions of dollars
Google Is Trying to Get an Edge in the
September 23, 2016
Assistant Wars by Hiring
Comedy Writers Andrea Peterson, The Washington Post,
October 11, 2016
Why a staggering number of Americans
have stopped using the Internet the way
Heather Pemberton Levy, Gartner,
they used to
Gartner Predicts a Virtual World of
May 13, 2016
Exponential Change
October 18, 2016

#nailedit 103
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