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The razorfish5 report 2011
Copyright 2011 Razorfish LLC. All rights reserved
Contents
Introduction: The Pace of Change ...................................................................................................         03
Near Field Communications ............................................................................................................       07
The Interface Revolution .................................................................................................................   13
Open Digital Services: Open API Platforms Enabling Consumer-Driven Innovation ........................                                       21
Marketing in the Age of Big Data .....................................................................................................       26
The Cloud’s Influence On Enterprise Architecture ...........................................................................                 35
Looking Ahead: Predictions from our Authors .................................................................................                41




                                                                                                                                             02
5
The Pace of Change
Bob Lord, Chief Executive Officer (@rwlord)
Ray Velez, Chief Technology Officer (@rvelez)




In his book “The Singularity is Near,”             Exponential Growth of Computing
inventor and futurist Ray Kurzweil predicts a      Twentieth through the twenty first century
pace of technological change that will make
our recent strides feel glacial by comparison.                                        10 60


He sees cures for pollution and poverty,                                              10 55

                                                                                      10 50
aging and illness, even death. Physical
                                                 Calculations per Second per $1,000   10 45
products will be conjured out of thin air –                                           10 40

or, more accurately, out of very expensive                                            10 35


printers. The rise of nanotechnology will                                             10 30
                                                                                                                                                       All human Brains
                                                                                      10 25
bring together man and computer in a                                                  10 20
way that “will enable us to transcend our                                             10 15                                                           One human Brain


biological limitations and amplify our                                                10 10
                                                                                                                                                      One Mouse Brain

                                                                                                                                                       One Insect Brain
creativity.” By 2021, computer power will                                             10 5

                                                                                       1
be equal to that of the human brain, a                                                10 -5
state of affairs that will make Watson, the                                           10 -10

IBM-designed supercomputer that recently                                                      1900
                                                                                                     1920   1940   1960   1980     2000
                                                                                                                                          2020 2040   2060   2080
                                                                                                                                                                     2100
                                                                                                                                 Year
trounced a couple of flesh-and-blood
brainiacs in a series of “Jeopardy!” matches,      squeeze more information into our heads.
look like a Commodore 64.                          In the past it’s been said that most folks
                                                   only use 10% of our brain. Well, maybe we
Not everyone is embracing this trend. The          can up that to 12% or 15%.
bandwagon of people who believe that
all this information is actually overloading       Whether all of these predictions come true
us or rendering us Google-hooked know-             by the dates assigned by folks like Kurzweil
nothings is getting crowded. We believe            doesn’t matter. The point is that change is
that the opposite is true. Our brains have         occurring at a more rapid rate than ever.
been getting faster and faster at processing       Our position here at Razorfish is that we
images, an improvement that helps                  should simply ride the wave. As businesses,


03
5
Brain Scanning                                                                                                                   some of the key trends that show how the
Image Reconstruction Time                                                                                                        pace of change is quickening. The most
                                                                                                                                 breathtaking is the lightning-fast adoption
          1000
                                    Logarithmic Plot                                                                             of Apple’s tablet, compared even to the
           100
                                                                                                                                 other hot products developed by Steve Jobs
                                                                                                                                 since 2001. Three months after launch, it’s
           10
                                                                                                                                 shipped over 14 million units. At a similar
Seconds




             1
                                                                                                                                 point in time, only about three million
           0.1                                                                                                                   iPhones were in circulation. But before
          0.01                                                                                                                   Apple had a chance to kick back and relax,
          0.001
                                                                                                                                 the Google-developed Android platform
                                                                                                                                 basically took over the smartphone market
Year          1970   1975   1980   1985                                    1990       1995     2000      2005



                                                                                                                                 in just 9 months. Think of all the amazing
                                                                                                                                 computing power now available to be
we need to be continually innovating and                                                                                         stuffed into the back pocket of a pair of
adopting technologies to keep pace. It’s less                                                                                    jeans. We’ve already seen these devices
about science fiction than science fact.                                                                                         put mobile application development on the
                                                                                                                                 map. That’s only the beginning.
Consider the mobile space. iPods grew
fast, iPhones even faster, and iPads left                                                                                        For the second year, Razorfish Technology’s
them in the dust. The former Morgan-                                                                                             Group has compiled a list of five
Stanley analyst Mary Meeker, speaking at                                                                                         technologies that will become crucial to
Google’s Thinkmobile conference, captured                                                                                        your business in the coming year. Our best



   KP                   iPods Changed the Media Industry... iPhones Ramped Even
                        Faster... IPad Growth leaves its “Siblings” in the Dust
   CB                   First 3 Quarters Cumulative Unit Shipments, iPod vs. iPhone vs. iPad

                                                                             16,000   ................................................................................
                                                                                                       iPad             iPhone              iPod
                                                                             14,000   ................................................................................
                                           Global Unit Shipments (1,000)




                                                                             12,000   ................................................................................

                                                                             10,000   ................................................................................

                                                                              8,000   ................................................................................

                                                                              6,000   ................................................................................

                                                                              4,000   ................................................................................

                                                                              2,000   ................................................................................

                                                                                  0
                                                                                      0                         1                           2                        3
                                                                                                                    Quarters After Launch




                                                                                                                                                                           04
KP        Android has Hit Critical Mass

 CB        First 9 Quarters Cumulative Android Unit Shipments


                                                                  80   ................................................................................




                          Global Cumulative Unit Shipments (MM)
                                                                                                Android Global Units Shipped
                                                                  70   ................................................................................

                                                                  60   ................................................................................

                                                                  50   ................................................................................

                                                                  40   ................................................................................

                                                                  30   ................................................................................

                                                                  20   ................................................................................

                                                                  10   ................................................................................

                                                                  0
                                                                       0       1        2        3         4        5          6    7        8        9
                                                                                                     Quarters After Launch




strategic and creative minds have come                                                                               intuitive, attractive and approachable. It
together to ensure holistic look at upcoming                                                                         seems like the days are numbered for that
technologies, tying them to key business and                                                                         dynamic duo of the mouse and keyboard.
marketing priorities.                                                                                                The Razorfish Emerging Experiences team
                                                                                                                     takes us through the new interfaces and
One of the most exciting areas of innovation                                                                         their implications.
is around Near Field Communications, a set
of short-range wireless technologies that                                                                            Two Razorfish technology leaders, Basel
facilitate the use of contactless payments.                                                                          Salloum and Salim Hemdani, both group
Google has built the capability into its                                                                             VPs, walk us through Open Digital ServicesSM.
Android OS with a production phone in                                                                                ODS is about organizations opening up
December 2010. Apple is rumored to follow                                                                            services in a way that makes them available
suit. NFC will usher in a whole new way of                                                                           to any technology at any time, safely and
interacting with our devices and it’s not                                                                            securely. Building on Open APIs, this is a
just for payment: think of the implications                                                                          company’s best chance of keeping pace with
couponing, added-value information from                                                                              changing business models and technologies.
merchants, and so forth. Paul Gelb, VP-mobile
and Heiko Schweickhardt, technology lead,                                                                            In the new digital reality, the amount of
will give us an overview of what’s to come.                                                                          consumer data available to organizations is
                                                                                                                     colossal. Ignoring it is just as big a missed
Interface change is going beyond tablets                                                                             opportunity. With new cloud-based tools and
and touch in 2011 as the ways available to                                                                           techniques we can finally make sense of the
interact with computers have gotten more                                                                             trillions of rows of data to have better and


05
more targeted conversations with our clients.
Whether those conversations are through
display ads or on web sites, you need to make
sure you are listening to your customers with
data and analytics. Ray Velez, Razorfish CTO,
and Pradeep Ananthapadmanabhan, CTO
of Publicis Groupe’s VivaKi, pull together
some of the innovative technologies and
techniques we have used to help clients such
as Best Buy and others.

Lastly, as the cloud infrastructure has
become top of mind for most CIOs, it’s
important to understand how your business
and technology architectures change.
Technology directors Jibi Scaria and Mandhir
Gidda along with Ray Velez pull together
best practices from across the organization
learned from work we’ve done with clients
including O2 and Mercedes.

It should be clear by now that we’re not
going to tell you how to inject nanobots into
your customers’ bloodstreams. But we’d bet
that by the time you’re finished reading this
report you’re reeling a bit from the sheer
speed with which the business scene is
changing due to technologies like the ones
we’ve identified. We hope we provide some
guidance and, of course, we hope you enjoy.




                                                06
5
 Near Field Communications
 Paul Gelb, VP of Mobile
 Heiko Schweickhardt, Technology Lead




                   In June 2007, a slide          for everyone to learn the ins and outs
                   in a Razorfish client          of the technology and what it means for
                   presentation painted a         commerce, marketing and privacy. In the
                   bleak picture for near field   hands of those companies, NFC yields
                   communications. “Today,        a much broader opportunity than what
 the NFC contactless mobile payment               arises from the contact-free nature of
 solution that is prevalent in Japan and          mobile payments and a slice of merchants’
 many emerging countries is not a viable          transaction fees. Payments aside, NFC
 solution in the U.S.” We found that the          has the potential to ignite billions of
 growth and impact of NFC had been stifled        dollars of incremental revenue from
 by the competitive situation already in          mobile marketing services. This windfall
 place, not by a lack of infrastructure to        would finance countless transformative
 support it. Because the market for credit        applications of NFC technology. It is in this
 and debit cards in the U.S. is saturated,        context that the emergence of NFC in 2011
 a new payments system would have to              will be a watershed moment for mobile,
 provide significantly more value to users and    impacting every industry.
 solution providers. NFC technology has been
 available for years, but it has only attained    This new data and integrated service
 significant adoption in a few markets as a       offering could generate billions if
 contactless payment solution. So, given all      not hundreds of billions of dollars in
 that, near field communication (NFC) may         incremental ad revenue. The increase in
 seem to be an odd selection for this report.     inventory would come from the number
                                                  of mobile users and the amount of time
 What’s changed in four years?                    that they spend with their mobile phones.
                                                  There are over 5 billion mobile phones,
 Apple, Google and Facebook. NFC figures          which is over 4 times the number of TVs.
 in the immediate plans of these uber-            In fact there are more mobile phones
 disruptors and that means it’s important         than people with access to fresh drinking


07
5
water. The penetration of smartphones, the                                                 system in which they match ad requests
devices marketers will predominantly be                                                    from advertisers with consumer profiles
able to target, is growing exponentially. The                                              that reside in a database that they control.
device is always with the consumer, creating                                               According to the patent request description,
the possibility for it to trigger a targeted                                               an advertiser, using the dynamically-priced
ad on nearby digital signage or any other                                                  system, may pay a unique price for an
digital consumer touch point. Last, and                                                    advertisement based on an assessment of
most importantly, the additional data would                                                characteristics unique to the target recipient.
increase ad effectiveness and efficiency
by allowing marketers to target the most                                                   A great deal of NFC’s value is in its ability
valuable consumers with the most effective                                                 to replicate ancillary value streams from
ad content at the time they would be most                                                  credit and debit cards. For example, the
receptive to the message.                                                                  aggregated data from each user’s purchase
                                                                                           behavior creates purchase histories that are
NFC’s advertising potential is what is of the                                              integrated into data from various sources
most interest to new NFC market entrants                                                   by credit report firms to create robust
such as Google, Microsoft, Apple and                                                       consumer profiles. These profiles are used
Facebook. In fact, Apple has submitted a                                                   to create highly targeted lists of consumer
patent for a dynamically priced advertising                                                sales leads that can be sold at high prices to



Apple´s Dynamically - Priced Advertising System
www.patentlyapple.com
Patently Apple
                                                             110

                      112                     112                              112

         Advertisement            Advertisement                    Advertisement
                                                                                                                                                              110

                                                                                                                                         114

                                                                                                              Infrastructure Owner/Manager
               116                     116                              116

    Advertisement           Advertisement                    Advertisement
                                                                                                                    124                                 126
                                                                                                 Target Advertisement(s)            Marketing Factors
                            118                     118                              118
                     Bill                    Bill                             Bill


                                                                                                                           Target User         122


                              Infrastructure Owner/Manager

                                                          114




                                                                                                                                                                08
direct marketers. The list of consumers can       pattern will allow marketers to reach a whole
be targeted by geography, demographics,           new level of analysis and optimization of
behavior (lifestyle activities like golf or       marketing programs.
gardening), methods (preference for online
purchasing vs. mail order) and life stage
events (new parents or new home owners).          Privacy
Some banks and credit card companies
have even sold highly targeted ad space on        Most readers by now have likely started
account statements directly to marketers.         to think, if not scream out loud, about
                                                  privacy issues. A comparison to other similar
This value stream provides an opportunity         products and user behavior patterns shows
for NFC to generate exponentially more            that privacy concerns will not impede
value than credit or debit cards. NFC can         mass market adoption rates. As previously
connect a consumer with the physical world        discussed, credit and debit cards provide
in ways that generate an infinite number of       numerous institutions with consumer data,
interactions or valuable profile data points.     which includes more personal information
Consumer profiles could now include a user’s      than any digital property currently collects.
current location, where they have been, who       Adoption and usage of these cards
they have been in contact with, who is in their   skyrocketed when loyalty point programs
social network, what media content (across        emerged. Consumers clearly demonstrated
multiple channels) they have consumed and         their willingness to relinquish the anonymity
even how much influence they have on other        of cash as long as they were compensated.
consumers’ purchase decisions.
                                                  When Amazon provided product
NFC providers can also close the loop             recommendations, based upon items the
between mobile marketing programs and             user had viewed but not purchased, many
conversions. Evidence from NFC Pilots, posted     were apprehensive. Consumers’ fears were
job descriptions and registered patents has       assuaged when Amazon communicated
revealed the imminent release of several          the value of those recommendations.
integrated mobile marketing and commerce          Netflix and Pandora provide more extreme
solutions. These solutions would enable           examples. Both companies are able to
one service provider to deliver targeted          provide and communicate enough product
ads and promotions (coupons), integration         value from information submitted by users
of consumer profiles with product/store           that the average user is now submitting all
databases, promotion redemption, retailer         kinds of data in the form of content ratings
support for enabling m-commerce at the POS        and movie account queues. These examples
and consumer NFC contactless payment. The         clearly prove that privacy issues are
ability to see a consumer’s full behavioral       removed when a company communicates


09
the value the user will get from data              NFC touchpoints for consumers. Potential
collection, there is transparency around the       interactions with touch points include virtual
data collection and/or the user is given a         check-ins to participate in loyalty programs,
choice to opt in.                                  special offerings and related product
                                                   recommendations or virtual concierge
NFC providers could follow these tactics by        services like indoor augmented reality
having a personal information and loyalty          and floor plans. All these services can be
program management application for mobile          consumed with an intuitive wave gesture.
devices. Users would be able to opt in to a        Touch points like these will likely drive more
collection of their personal information and       consumers back into retail stores, providing
select what bits could be used for ad targeting.   them a richer, hands-on experience throught
In exchange for opting in, users would be          the integration of services.
compensated by mobile wallet dollars.
These rewards dollars would be based on
events in which their information was shared       Security
with advertisers and could be redeemed
during any m-commerce / NFC transaction.           Security will likely be a greater challenge
These virtual dollars could be financed by         than privacy for NFC. The high value of
a nominal percentage of the incremental            access to a person’s financial assets and
revenue generated from ads that leverage the       personal data will increase the risk of
consumer’s information for targeting.              potential threats. Several NFC providers are
                                                   planning to offer remote deactivation of
                                                   the NFC functionality and deletion of profile
User Experience                                    information. Another security protection
                                                   will be a biometric sensor that can read
Consumers would benefit from a highly              fingerprints or other anatomical features.
improved user experience with NFC as               Once again the revenue potential of this
well. While contactless payments can be            opportunity will allow market leaders in the
technically achieved in different ways, the        space to invest in and constantly improve
ease and swiftness of waving a mobile              security protections. While NFC may never
phone in front of a retail register is far more    be completely secure , there should be
likely to be understood and embraced than          the same level of protection as personal
is a process where you have to scan visual         information data bases and financial services
codes with an embedded camera app.                 companies offer on other digital channels.
                                                   Ultimately, we have witnessed significant
However, again extending our focus                 database breaches over the last few years,
beyond payment reveals a value that can            but there has been a negligible effect on
be significantly increased by providing            consumer adoption.


                                                                                               10
The last hurdle for mass implementation of                                     NFC chips, is currently offering businesses
 NFC is the cost of producing and distributing                                  in pilot cities free NFC receiver hardware
 hardware to stores that are capable of                                         when they participate in ongoing tests. Even
 receiving payments from consumers’                                             governments have begun to invest in the
 mobile devices. NFC providers and public                                       technology. The French government has
 institutions have already demonstrated                                         spearheaded the purchase and distribution
 their willingness to absorb all or at least a                                  of thousands of receivers for businesses in
 portion of this cost. This is especially true                                  13 cities that are participating in one of the
 when mobile devices are leveraged as                                           largest NFC pilot testing programs ever. As
 the receiver hardware. Google is said to                                       well, public transportation authorities in
 be poised to distribute as many as eight                                       several U.S. cities have begun to invest in
 million “custom mobile devices” to small                                       testing and implantation of NFC payment
 businesses around the U.S. Apple has pilots                                    receivers for rider mobile payments.
 with several retailers, that includes IOS
 devices with preloaded m-payment receiver                                      The large number of players investing in
 accessories, dedicated customer support                                        NFC is evidence that the costs of addressing
 agents, expedited dispute resolution,                                          challenges presented by privacy concerns,
 invitations to VIP events and merchant                                         security threats and receiver hardware costs
 rewards. Bling Nation, an NFC start up                                         are not prohibitive to the NFC business
 that leverages stickers with embedded                                          model. However, to maximize ROI and




 Communication Between Controlling & Controllable Devices
 www.patentlyapple.com
 Patently Apple
                         90                         94

                                                         Controllable Device
                                                                                      32                    24            25

                                                                                WAN             Wired 1/0        IR Interface
                              34              24           30

                 NFC Interface     PAN             LAN                106              110
                                                                                102             104
                              96         98               100                                           114        116
                                                                     Internet     Web Service
                              34              28
                                                                                108    112
                                                                30
                 NFC Interface     PAN             LAN
                                                                                      32                    24            25
                                                                                WAN             Wired 1/0        IR Interface
                                              92
                                                     Controlling Device




11
profit margins, potential NFC providers          for companies that have looked beyond
are investing in the development of non-         mobile payments to uncover its untapped
payment NFC applications for users. These        potential. What will make NFC’s emergence
utility and entertainment applications           in 2011 even more exciting are the potential
will provide non-monetary benefits to            revelations from innovative companies that
consumers and generate additional value          are able to take the next step. Applications
in creating consumer profile data. These         and device accessories have exploded
innovative NFC products could be offered         alongside the recent rapid growth of smart
as part of the compensation for opting into      phones and tablets. When we look beyond
data collection.                                 NFC entirely, what new opportunistic
                                                 industries will be revealed?
For example, Apple has already patented
an NFC application that could align with
this strategy. The patent describes mobile
devices that leverage NFC as becoming
universal remotes capable of controlling any
other NFC device, including TVs, DVRs, DVD
players, gaming consoles and even garage/
doors. Data generated from this application
of NFC technology would include what
content and commercials a user had seen
across multiple media channels.

NFC powered remotes are just the tip of the
iceberg. Numerous executions have been
patented, prototyped and/or piloted. Social
applications will enable users to share music,
videos, contact information, a social network
connection request or even an app. Travel
applications will create virtual room keys, ID
and ticket submissions and baggage check
in. The list of potential functions is only
limited by the creativity of the developers.

NFC, a technology that is not new or
particularly sexy, will open up nearly
unprecedented opportunities for ad revenue
and ground-breaking consumer experiences


                                                                                           12
5
 The Interface Revolution
 Luke Hamilton, Creative and Experience Lead

 Contributors
 Jonathan Hull, Group Director
 Steve Dawson, Technology Lead
 James Ashley, Technical Architect
 Crystal Surrency, Strategy Analyst



 The Mouse, as We Knew It, is Dead                iPad), game consoles like Microsoft Kinect,
                                                  Nintendo Wii, and Playstation Move,
 Once revolutionary, the 25-year dominance        advanced TVs with built-in cameras and
 of the mouse and keyboard as the                 microphones, and touch-enabled monitors,
 main interface for communicating with            all remove mouse and keyboard mediators.
 computers is nearing the end of its lifecycle.   As a result, consumers have begun a mass
 The mouse, after all, is merely a pointing       migration away from GUI experiences
 device we awkwardly use as a substitute for      toward interactive interfaces that are closer
 the finger. We click a button when we mean       to the natural human experience, also
 to point; we slide a mouse across the table      known as natural human interfaces (NUI).
 when we mean to swipe; we bang away
 at a keyboard when we mean to simply             Consumers are responding to this
 speak. These mediated input methods are          revolution by purchasing devices driving
 behaviors we have learned because the            NUI experiences in record numbers. Brands
 technology, up until now, has not been           must be prepared to adapt to the demand
 available to allow us to do what comes most      by providing experiences that leverage
 naturally to us - touch, speak and gesture.      these interaction metaphors across
                                                  multiple devices.
 The mouse and keyboard as input devices
 will still have their place for some time to     By observing the tablet as one of the
 come –driving graphical user interfaces          outcomes of the interface revolution, we see
 (GUI) that are relegated to more precision       how content, natural interfaces, and form
 and data-oriented niche tasks. However,          factors shape the technology of the future.
 smartphones, tablets (mainly the Apple


13
5
Rise of the Tablets                                3.3 million iPads sold in three
                                                   months
Think of the tablet computing concept this         Compare the numbers of days it took these devices to
way: it’s an idealized vision of a digital book,   reach 1 mln units sold
an object that shares the size, weight, and
feel of a book or a clipboard but does so                                                             360+
much more. Early tablet devices consisted
of laptop computers with convertible                                                           300+

screens on a hinge. These devices allowed
for traditional interaction – keyboard and
trackpad or stylus – when in tablet mode.                                                180
The operating system used on these devices
was often a tablet-friendly version of a
standard OS and not optimized for more                                              74

natural human interaction.                                      13       15    28


In the years following the release of the first

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tablets over two decades ago, the device                    o




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had failed to find mass adoption until April
                                                            N
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3, 2010, when Apple released the iPad. Like
nothing before, the sleek gadget popularized       companies such as Intel, ARM, nVidia and
a new tablet computing slate form factor:          Qualcomm. However, it’s not just the
no keyboard, touch-only interaction and a          hardware that defines tablets. That job is
new gesture-based operating system. The            done by the instant-on, lightweight form
combination of the hardware, software and          factor coupled with the robust gesture-
the established Apple eco-system helped            based interface that simplifies experiences.
create a neo-tablet experience which               The intuitive discovery of richer content has
captured the heart of consumers.                   been the catalyst that brought neo-tablet
                                                   computing to the masses and created the
Nine months later, 15.7M tablets have              fourth largest consumer electronics channel
been sold globally. At CES 2011, a wave            overnight.
of over 100 neo-tablets was announced.
Not surprisingly, today’s tablets represent
a multitude of fragmented form factors,            Computing Without Tears
resolutions, and features. From a hardware
perspective, tablets are getting thinner,          The various interfaces employed in the
lighter and more powerful thanks to                tablet category for personal computing
innovation around chip technology from             did not exist in the mind of the average


                                                                                                             14
Exhibit 1                                                                           Print and Video Benefit from the
 The iPad could potentially become the 4th largest                                   iPad´s Larger Screen
 CE category next year

                                                                                                    Content Regularly Accessed                   53%         51%
 $30.0
                                                                                                                                           44%
                                                                                     39%                                                               41%
 $25.0                  U.S. CE Catagory Sales ($B)                                           33%         32%
                                                                                                                      25%        21% 22%
 $20.0                                                                                  13%
                                                                                                    11%         12%
                                                                                                                            8%
 $15.0
                                                                                      Book TV show Movie Magazines Radio                   News        Music
 $10.0

                                                                                           iPad           iPhone
 $5.0

 $0.0

                                                                                     hands, or no hands. Because of the larger
              s

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                                                                                     screen size users have more robust ways to
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                                                                                     interact and explore larger amounts of content.
                                         am

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                                         G




 consumer less than a year ago. But the iPad                                         Speed: Responsive, fast-loading, simple and
 has transformed the computer electronics                                            intuitive apps are winning over users.
 industry and the way users expect to
 interact with digital content. In doing so,                                         Intuitive: Tablets have opened up a new
 Apple has created sustained demand for a                                            way of thinking about how we interact with
 product that no one knew they wanted until                                          computing devices using inutitive gesture-
 it was released.                                                                    based interactions through metaphors that
                                                                                     draw from real-world experiences.
 But in addition to adding to Apple’s ever
 expanding bottom line, tablet devices are                                           Sized to share: The shape, weight and
 changing the user’s expectations of what                                            touchscreen interface enables multi-user,
 computing means in a number of ways. They                                           simultaneous or sequential experiences
 are not laptops, nor are they mobile devices                                        while sitting or standing.
 (who is really going to walk around with a
 tablet in their pocket?); so what makes them                                        Curated Computing: Tablets excel at
 so unique?                                                                          delivering more relevant and less complex
                                                                                     experiences – consider how its personalized
 Size: The iPad is smaller than a laptop, but                                        media consumption has been a boon to
 larger than a pocket-sized phone. Plus, the                                         casual games like Angry Birds. The devices
 interface can adapt to the device orientation                                       also allow for light productivity experiences
 allowing users to hold it with one hand, two                                        like document editing and email.


15
It just works: The interface and the device                               One Size Does Not Fit All
operate together in a way that consumers
can easily learn and master. The tablet is                                With projections of global sales reaching
closer to an appliance than a computer;                                   +100 million units by 2012 and the plethora
users expect it to work like a TV. When it’s                              of choices in form factors and operating
on, it’s on. Additionally, you simply tap the                             systems, the neo-tablet signifies the
screen to do something.                                                   next generation in end-user computing.
                                                                          However, one of the driving forces for
“The fact that you can’t do everything with                               creating multi-purpose tablets is the ability
a [tablet] like you can with other PCs - is                               to create and consume content on the same
exactly what makes it successful” - Forrester,                            device. After all, the content that’s available
May 2010                                                                  on the tablet is critical to the experience,
                                                                          whether it’s user-generated or not.
Clearly, the tablet’s user-friendly touch
interface, convenience, portability and high                              In these early days, the iPad commands
degree of usability signifies the beginning of                            85% of the tablet marketshare, despite the
the end for a computing experience that had                               fact that it is often disparagingly viewed as
become almost painful for consumers. With                                 a device suitable for content consumption
the release of the iPad and forthcoming                                   rather than content creation.
devices from other manufacturers, like the
Samsung Galaxy Tab and Motorola Xoom,                                     It can perform some light productivity tasks
the tablet device has finally fulfilled the                               such as email or word processing, but the
promise of delivering a truly transformative                              on-screen keyboard is not optimal for data
computing experience.                                                     entry or programming. Additionally, the


iPad owners spend a longer amount of time with their content
Weekday Length of Time per                                                Weekday Length of Time per
Session by Category - iPad                                                Session by Category - iPhone
                                                                                                                                78%


                                                                                                         49%
                                                      44%
                                                                      40%                      40%                   37%
     34%                                                                          35%            32%
            31%        32%     27%33%     24%           31%                    29%
               25%                    31%                                                                        28%
   25%              22% 24% 30%              27%                         22% 25%    22%            24%
          20%                                                                                             19%          18%
  18%             22%      16%                              15%                                                                 15%
16%                         7%               9%9%             8%            10%                     10% 14% 11%         9% 8%     4%
        7%
                 2%                5% 5%                       3%              3%       5%9%          3%   7%
                                                                                                                                   2%1%
  Movie       TV           Book   Magazines   Music     News             Movie        TV        Book     Magazines   Music      News


    Less than 15 minutes      16-30 minutes    31-60 minutes        1-2 hours       More than 2 hours




                                                                                                                                      16
touchscreen interface is not ideal for editing                                  by enabling consumers’ ability to research
 photos or creating commercial content. It is,                                   products from anytime, anywhere, and
 however, great for surfing the web, flicking                                    increasingly in-store, tablet devices are
 through photos and bringing previously                                          becoming not only a research platform, but
 static experiences to life by connecting your                                   a commerce platform.
 digital appliances together. For example,
 Disney has created a new platform that                                          Traffic is up 77% and growth continues.
 leverages your Blu-ray player, wifi and tablet                                  This is not only attributed to the ease of
 to create a second screen experience which                                      use (simple, intutive interface), form factor
 unlocks content that allows you to control and                                  (much better ability to view content vs
 interact with your movies like never before.                                    mobile) and convenience (portability is great
 And while smartphones are making a huge                                         when in bed or relaxing on the couch), but
 impact on pre-purchase research behavior                                        consumers are using their devices during



 iPad: Is this a device for a weekend?
 Web browsing activity of iPad users grows significantly on Saturdays and Sundays


           Sunday,        Black Friday,         Sunday,              Sunday,         Sunday,
           Nov, 19th      Nov, 26th             Dec, 19th            Dec, 26th       Jan, 2nd



                                          77%


  Nov 17         Nov 25           Dec 3    Dec 11           Dec 19         Dec 27         Jan 4    Jan 12    Jan 20




      4/15 4/18 4/21 4/24 4/27 4/30 5/3                         5/6      5/9 5/12 5/15 5/18 5/21 5/24 5/27 5/30




17
consumption hours when they are most              • Simplify processes and tasks while
likely to make purchases (prime time has          maintaining rich and powerful content.
always been the most expensive slot for           “Maybe the new thing that everyone
a reason, and now users have a device to          recognizes is the unit of economic value is
satisfy those sudden urges).                      the platform, not the device.” - Forrester,
As the devices unlock additional capabilities     Feb. 2011
and flexibility, there will be more producivity
options for the average user. Some                The rapid level of adoption has proven that
companies are already working to solve this,      these devices are beyond a novelty and
providing peripherals that add keyboards,         must be treated as a new channel that offers
while others are creating dual purpose            new and unique opportunities to connect
tablet/netbooks still others are working on       with consumers.
optimizing input and interaction methods like
stylus and speech support. There will also be
continued exploration of form factors and         To Infinity and Beyond
experiences as the market matures. There
are some key considerations when it comes         Tablet devices are a great example of the
to optimizing the end-user´s experiences:         way consumers are responding to the
                                                  interface revolution, but there are many
• Design the experience for the particular        more devices and platforms emerging in
method of interaction and for the screen          the market that leverage the NUI paradigm.
real estate. This should include human input      The technologies going beyond the touch
factors, like occlusion (obstructing the user’s   experience are so sufficiently advanced they
view of the screen with a hand) and finger        can feel like magic.
vs. thumb size.
                                                  Technology like Microsoft’s Xbox Kinect,
• Introduce simple interactions at the            leverages cameras and infrared to recognize
beginning of an experience, more complex          enough of your actions to enable full gesture
interactions later.                               recognition without needing a controller
                                                  or touching a screen. With the release and
• Make the path to gestural learning              success of Xbox Kinect the gesture control
smooth, clear and direct so as to ensure that     market is heating up.
users understand how to maximize their
own interactions.                                 Much like the original iPhone brought
                                                  touch interaction into the mainstream by
• Consider the size, orientation and single or    putting millions of devices in the hands of
multitouch capabilities of the device.            consumers, Xbox Kinect will do the same
                                                  for gesture control. Imagine being able to


                                                                                                18
virtually try on clothes from the comfort of      Autonomos Labs, they are taking this literally.
 your own home. Or order a pizza with a flick      They have engineered an experience that allows
 of the wrist while sitting on your couch.         you to drive your car with your thoughts alone.
                                                   (George Lucas would be proud.)
 Gesture control technology is not just for
 the living room either. There is a growing        All of these will continue to transform the
 community of developers and designers             interface and in turn transform all our
 experimenting with these technologies in          touchpoints, including in-venue retail,
 retail and digital out-of-home experiences.       desktop, tablet, mobile or out-of-home.
 Gesture-based interaction is great when
 touch isn’t practical. For instance, on a large
 screen projected display it is difficult or       Delight the Eye Without
 physically impossible to control the entire       Distracting the Mind
 area using touch. For example, the Discovery
 Channel recently created an out-of-home           In dumping the old mouse-enabled
 experience that allows users to participate       interaction paradigm, the tablet and its
 in the story as well as share the content with    bretheren have opened up a new way of
 their social networks.                            interacting with computing devices. Using
                                                   intuitive actions as metaphors that draw
 It’s not just Xbox Kinect that’s getting in on    from real-world experiences means that
 the fun, there are people grabbing basic web      touch, gestural and voice interfaces provide
 cameras and creating algorithms to recognize      additional opportunites to interact with
 moods and emotion as well as gender and           customers and potential customers in more
 age. Toshiba has built basic face recognition     personalized ways.
 and tracking into its laptops. Mercedes-Benz
 has a feature that detects drowsiness and         What does this mean for your brand?
 the warning icon is a cup of coffee. If you’ve
 sat in any of the new cars hitting the market     • Brands must first acknowledge that the
 most of them have some kind of voice              revolution in NUI means that there is no
 control. And InnerScope Research has been         “one size fits all” solution, and they will need
 using a biometric sensor vest that measures       to adapt and interact with consumers on
 responses in heartbeat, skin conductivity         multiple platforms or channels.
 and perspiration, respiration and physical
 motion. But wait there’s more.                    • Brands should not fixate on the devices
                                                   themselves but rather on how they can best
 Some really exciting opportunities on the         leverage the new interface capabilities to
 bleeding edge are using mind control, yes mind    enhance the user experience.
 control, to drive experiences. In the case of a


19
• Brands should weigh the pros and cons of      before possible will usher in the next
native apps vs. device optimized web-based      revolution, not just in computing, but in
experiences, as both are expected to take       design and marketing.
advantage of cloud computing over the next
few years. In fact, Google, Microsoft and
Amazon are all betting on this as they invest
even more heavily in their respective cloud
infrastructures. Because tablets will have
less available storage space than the typical
PC or netbook, storage for tablet-based apps
is expected to take place in the cloud.

• Brands will need to offer deeper, more
interactive content. It’s not about a single
task but the customer journey. The
experiences need to evolve and adapt to the
consumers’ lifestyle and how they want to
consume or create content.

• Brands must recognize that ubiquitous,
portable content will enable a better
connection with consumers by being where
the consumer is, no matter what platform
they are using.

• Connected experiences weave brands
into the consumer’s life. However, ultra-
personalization is the key to making the
devices and content invaluable to consumers
and transforming them into brand advocates.

Brands that can successfully leverage
these new user environments by creating
personalized, natural user interfaces will
build stronger and more lasting relationships
with their existing customers and open
doors to potential new customers. Tapping
consumer buying power in ways never


                                                                                            20
5
 Open Digital ServicesSM:
 Open API Platforms Enabling
 Consumer-Driven Innovation
 Basel Salloum, Group VP, Technology
 Salim Hemdani, Group VP, Experiences and Platforms



 So after more than a few late nights, you’ve      Now you’re probably thinking that it’s
 gotten your branded iPad app out the door.        easy for those companies to open up. They
 It’s moving well, but it’s no, well, iPad. Your   were built that way; it’s hardwired into
 customers seem to like it well enough. A          their culture. I don’t work at an Internet
 few four star ratings, but there are many         company. I sell physical items work at a
 more three and two-star reviews. You can’t        large company with a big bureaucracy. It’s
 help wondering if it was worth the time,          like comparing apples and oranges.
 cost and energy; and if there’s a better way
 to engage with your consumers, to cut to          Wrong!
 the heart of how they understand your
 brand in a digital age where new devices          For most brands, even the stodgiest among
 and interfaces are invented on a daily basis.     them, there is huge potential in Open API.
                                                   There is an enormous opportunity for true
 There is a way, and it’s the path that allow      innovation by connecting with consumers
 companies like Facebook, Google, and              and empowering them to transact with
 Twitter to innovate so rapidly: Open APIs.        your brand on their own terms. This is
 All these companies have been built in no         where an Open Digital Services (ODS)
 small part by their user communities. It’s        model is essential.
 pretty clear by now that there’s no better
 way to give your consumers the digital            Once the brand/consumer connection
 experiences they want and need than to let        is established through an ODS platform,
 them do the innovating themselves.                empowering consumers to innovate opens



21
5
up endless possibilities. Best Buy, Amazon,      public in a secure and scalable manner, using
eBay and Netflix have also embraced              a modular or service oriented architecture
the idea of open platforms. They have            (SOA) as the backbone of this platform (e.g.,
experimented with this new model for             APIs or Web Services). It provides consumers
marketing their products and services at         with a highly customizable mechanism
almost no cost. For instance, Best Buy´s         for consuming content and executing
Open APIs – BBYOpen-- allows other brands        transactions through a set of “digital services”
across the world to freely access product        available for a wide audience such as
information, store details and reviews. So       developers, publishers and advertisers. ODS
a developer can create an app that allows        must be designed and built specifically to
a purchase from Best Buy to be performed         your business, it is not a product that you can
right in the app itself. eBay made a similar     acquire and customize, although there are
move, with respect to auctions. Netflix,         middleware products that could complement
as another example, has incentivized its         your platform architecture.
community by holding a competition to
build the next generation recommendation         As a technology platform, a typical ODS
engine. These brands are tapping into the        implementation has a set of public-facing
passion of the developer community to            digital services that are inter-linked and
further enhance their marketing cause.           integrated with your existing back-end
And, bear in mind, they’re all publicly-traded   systems and/or third party systems. That
companies for whom there is a lot at stake in    integration is managed through a middle-
these kinds of programs.                         tier “broker,” which could be a custom-
                                                 built engine or a middleware product
                                                 such as an enterprise service bus, which
What is ODS?                                     is primarily responsible for security,
                                                 transaction integrity, entitlement and
At Razorfish we have been helping clients        service deployment. This model promotes
build these sorts of programs since the          many advantages around security, code
advent of the web. Back in 1999, we helped       reusability, rapid application development,
MLB.com build its open video platform that       ease of maintenance and much more. In
aggregated all content across the clubs.         addition, your legacy systems are expensive
More recently we helped a large financial        to maintain, modify or replace, and their
services company build open feeds around         proprietary APIs should never be opened up
learning content.                                directly to the outside world.

In the simplest terms, Razorfish Open Digital
ServicesSM (ODS) is a platform that allows
you to expose your business services to the


                                                                                              22
Advantages of ODS                                applications and ideas in the hands of your
                                                  most loyal advocates—your customers.
 Lower cost and ease of integration:
 Having an enterprise-wide ODS platform
 will eliminate the need for direct integration   ROI
 with each back-end system every time an
 application or a functionality needs to be       Imagine what consumers will be able to
 built. The separation of existing backend        do if the automotive industry provided API
 systems from consumers through an ODS            access to Bill of Material (BOM) for every
 platform, will lower development cost and        single vehicle they ever built? What if the
 increase the ease of integration.                consumer goods industry provided API for
                                                  nutrition details of every edible product
 Increased Flexibility and Agility:               they market? What if technology companies
 One of the key benefits of this platform is      provided API to a set of unique and cutting
 it allows companies and/or consumers to          edge features of their latest R&D project?
 transact in a dynamic and agile manner.          What if financial services companies opened
 Whether it’s consuming a content feed            up access to product and services they
 or executing a financial transaction,            offer? What if insurance companies allow
 marketers will have the ability to quickly       API access to their claims data? Imagine
 create experiences that pertain to their         the possibilities. Consumers will create
 consumers and provide a benefit to both          meaningful and engaging experiences using
 parties. Over time, these experiences can        these APIs on their own terms. ODS can
 be greatly enhanced from learning through        facilitate and support the process of building
 iterative development cycles of consumers.       a community of brand evangelists with a
 A framework for flexible experiences             lifetime customer value that can beat the ROI
 ultimately results in a happy customer.          of any other campaign! Additional sales and
                                                  the introduction of new sources of revenue
 Extensibility:                                   can be recognized through channels that are
 Extensibility is also a core principle and an    re-using API, including suppliers, partners,
 advantage when users are no longer limited       etc. And brand evangelists are happy too.
 to in-house and on-payroll developers
 building applications. Suddenly the new
 ideas landscape is virtually unlimited to all    ADVICE
 audiences; providing extensive variety of
 media through many digital channels, all of      Not every brand or organization is a
 which revolve around the user´s needs and        candidate for ODS. While in most cases ODS
 behavior´s changes. Open Digital ServicesSM      is a solution, you should first go through
 puts the tools for innovation, new functions,    an applicability and feasibility exercise to


23
validate whether or not it’s advantageous to       conflict situation arises then consider creating
your business and consumers. Even if there         two different services.
isn’t a strong business case for it, you’d be
amazed by the benefits that it can bring to        2. Loose Coupling of Services: It is inevitable
your consumers.                                    that in some instances, service output will be
                                                   processed by the client in order to engage in
Once you do get the platform in place, rely        further transactions with the platform. After
on the power of community to help you find         the first service call from the client in a given
new methods of marketing and expanding             transaction, it is possible that subsequent
your products and services. Some of the            calls to other services may be highly
most powerful and most used mobile                 dependent on values returned in previous
applications are ones that were built by a         calls. Despite this dependency scenario you
single developer who had access to an open         must always keep all of your services self-
platform through an enterprise.                    contained and allow loose coupling that
                                                   will let the client (e.g., developer) manage
While ODS provides agility and flexibility         the transaction integrity. Do not force the
and promotes innovation, it can be complex         service coupling by making things mandatory
to create, not only from a technology              or prescribing specific coupling mechanism.
standpoint, but also organizationally. This        Each service should maintain awareness of
is why it’s crucial to adhere to the guiding       other services offered but shall always be
principles listed below. Building a true ODS       independent. It is tempting to force your
platform is more than putting together             audience to the follow same procedures as
a bunch of web services and calling it a           your business does and this temptation must
platform. Definitely prioritize which services     be avoided to allow free thinking.
you want to open up, and create a SOA
based architecture utilizing a middleware          3. Industry Compliant Access Model:
engine such as an enterprise service bus.          Service Oriented Architecture (SOA) is a
                                                   highly evolved discipline. SOA prescribes
                                                   various methods, models and guidelines
ODS Guiding Principles                             for authentication, authorization, service
                                                   contract, payload management, security
1. Self-Contained Services: Any service you        and service orchestration for developing
wish to open up has to be self-contained. Every    and deploying interoperable services. These
service shall have one and only one response       industry standards shall be meticulously
type for all requests. Service response can be     followed to avoid any one-off rules or
an array of an object type but service shall       practices that are specific to your company
never respond with two different types of          and utterly unnecessary.
objects irrespective of request parameters. If a


                                                                                                 24
5
 4. Start Small and Simple: Your business as     turn to cloud computing to address their
 it exists today has evolved over a period       concerns about scalability, high availability,
 of time. Your business model is no longer       upfront hosting cost and time to market.
 as easy as buying low and selling high,         ODS will no longer be optional or a nice-
 or introducing simple services with high        to-have; it’s already becoming an industry
 ROI. Over the years, one-off exceptions,        best practice and a key standard for
 internal processes, regulatory compliance,      organizations. This revolution of connecting
 promotions, discounts and a myriad of           consumers with brands will create more
 other things have shaped your business          service providers specializing in open
 rules. How can you open-up APIs without         architecture platforms as an offering, and
 considering these business rules? Yes, you      it will push existing technology service
 will get caught-up in these discussions when    providers to revisit their capabilities around
 identifying what products and services shall    SOA based architecture and web services.
 be made public. The solution is to follow the
 rule: Keep it simple! Identify the minimum
 set of self-contained services that you can
 open and roll them out. Let your consumers
 define what is next.



 PREDICTION

 Some organizations will trail behind and
 some will not survive unless they create
 an open digital platform based on service
 or modular based architecture, and give
 their consumers the ultimate flexibility
 and agility. We’re going to see more
 traditional organizations overcoming their
 fear of certain standards around security
 and scalability and join the Open Digital
 Platforms movement. Financial Services
 brands in particular have been reluctant,
 although companies such as ETRADE*,
 PayPal and MasterCard have embraced it.
 The notion of “private data centers” and
 “hardware procurement” is on the path
 to becoming obsolete. Organizations will


25
5 5
Marketing in the Age of Big Data
Ray Velez, Chief Technology Officer
Pradeep Ananthapadmanabhan, Chief Technology Officer, VivaKi Nerve Center
Mark Taylor, Solutions Director, Global Solutions




When we talk about information overload,           • Survey-based data available from the
we usually associate it with consumers             Nielsens of the world
who, in the course of going about their
day, are smothered by thousands of bits of         • Vast amounts of social data available
data, branded or otherwise. But these days         through open APIs and connections to
marketers, too, can be overwhelmed by              Facebook, Twitter and tools like Open
the sheer amount of data pouring in from           Social
the billions of online interactions they have
with their customers on an annual basis.           Historically, these data sets have been
Consider just this partial list of data sources:   simply too large to allow any meaningful
                                                   data analysis and processing to take place.
• Clickstream data available from tools like       Now we have new technologies to help us
Atlas and Doubleclick—who have cookied             make sense of and use the data. With big
over 90% of the Internet                           data techniques, all of these touchpoints
                                                   become usable assets and present an
• Site or digital experience data that             enormous opportunity for almost any
organizations track through logs and/or            organization that wants to improve the
analytics tools like Omniture, Webtrends           dialogue with its consumers. Technologies
and Google Analytics                               such as MapReduce, noSQL, and cloud-
                                                   based Massively Parallel Processing (MPP)
• Other channel data across various                databases have pushed the limits of the
touchpoints (email, call center, mobile, etc.)     amount of data that marketers can process
                                                   without having to blow their entire budgets.
• Client data
                                                   This has enabled us to not just manage
• Transactional data                               big data but to, simply, think big. We have


                                                                                             26
progressed from a technology culture based              What to do with all this data?
 around constraints and managing known
 parameters to an environment of innovation              Here at Razorfish, we have been innovating
 where we continue to explore the frontiers              data-led marketing for years. Our DNA is
 of what we can do. This changes marketing               grounded in data innovation, including the
 in a major way—not just in the technology               creation of the ATLAS platform (a technology
 organization, but across the whole                      spun out of Razorfish and acquired by
 framework of how a company does business                Microsoft) and any number of patented
 with consumers. But this is no cakewalk.                techniques that leverage advanced analytics
 There is a major challenge in the form of               against clickstream data. Now that we have
 consumer privacy, which is shaping us a                 greater access to big data solutions, we’re
 cultural issue as well as a legal one. With             innovating faster.
 the influx of data comes great responsibility
 to respect customers’ information while                 In the past, the industry process has
 working to give them and your clients the               been very linear: marketers plan their
 most efficient communications strategy                  campaign, buy ad space, run the ads and
 possible. What follows is your guide to                 measure the results, often with weeks in
 striking that balance.                                  between each stage. Now, we test multiple


 Each touchpoint is an identifiable interaction and an opportunity to
 communicate to your customers intelligently at scale

                                            >100M interactions
                                                                 » Categories
                                                                 » Content
                                                  SITE           » Merchandising




       ~ 35+Million interactions                                   >500M interactions
             » Email
                                                                                         » Display
             » Billing     CUSTOMER                                                      » Paid search
             » Mail
                            COMMS                                        MEDIA           » email




           <5M interactions
                   » Facebook                                               1 ½M interactions
                   » YouTube                                                       » Site service
                   » LinkedIn
                                   SOCIAL                                          » Online service
                                                                 SERVICE




27
creative executions and media plans,            among the growing crowd concerned with
and immediately tweak them to deliver           privacy matters. Let’s back up and define
the best-performing ads and reach the           targeting or, to use a more benign synonym,
optimal audiences, even as measurement          personalization. At the highest level, it is
data starts to come in. To enable this, our     using data that can be gathered from either
analytics approach has become advanced          anonymous web users or from people who
and sophisticated enough to identify true       are identifiable because they’re logged into
relationships across the data that will be      a website. This process allows us to create
meaningful for consumers and profitable for     consumer segments and those segments
clients.                                        are used to create relevant experiences. For
                                                example, if the data tells us that you are in
Amid the vast sets of data, it’s the tiny       a particular segment and we know that that
subsets that have the most significant          segment is interested in mountain bikes, we
impact on our customer interactions. We         can show you mountain bike experiences
have already altered the way we design our      instead of road bike ads. Think about it
analytics and data management solutions by      this way—lots of data sources map into
initiating strong measurement and KPI [key      segments, and segments drive experiences
performance indicator] strategies alongside     and messages anywhere you can create
our technical solutions to drive our clients’   experiences where experiences are driven?
business goals.
                                                In our experience, just about every display
These Razorfish-led innovations ensure          ad is somewhat targeted and personalized.
sound business logic and measurement            Have you ever noticed that when you start
techniques combine with our Business            looking for a product, ads for that product
Intelligence to drive down latency to a         start showing up more often? Combating the
near real-time basis, creating an almost        low clickthrough rates challenge of display
immediate feedback loop. The renaissance        ads, advertisers have used targeting data
in data-driven display ad planning and          for years. However, it is far too rare that
measurement is just one example of big data     this data and targeting information is used
in action.                                      beyond display ads, and leveraged across
                                                multiple channels, from websites, to mobile,
Targeting or Personalization                    to email, to social applications, and beyond.
                                                Often times someone will click through
Targeting is one of those hot-button            an ad to end up on a web experience, and
marketing terms that means different things     all that wonderful information that was
to different people. Its vaguely threatening    available in the ad never makes it to the
sound doesn’t hold – no one wants a             desktop or mobile site, or even in-venue
bullseye on them after all – especially         kiosk. That is the opportunity we have here.


                                                                                           28
Privacy                                          of communication. You wouldn’t ignore
                                                  the information from a conversation
 Since data is so abundant, it’s critical         with a customer in the store or on the
 to ensure that all data practices follow         phone, would you? And, quantitatively,
 privacy laws that govern whether and how         we can increase relevant and meaningful
 personally identifiable information can be       engagement time, increase conversation
 used. Netflix learned during a contest it        and increase referrals—all of these metrics
 created so its community could develop a         leading to increasing revenue. It takes a
 new recommendation engine that even with         focused effort and time to correlate metrics,
 large, highly anonymized data sets it is still   but you are creating a framework that
 possible to identify a unique user. That is      enables understanding of the impact of
 probably the best way to think of personally     the targeting updates. Inevitably some will
 identifiable information: date that can          increase and some will decrease.
 identify a unique person when it is captured.
 If that person has opted in, you can store       Our clients have seen huge benefits within
 you the data. If there was no opt-in, you’re     single channels like display where near
 out of luck. Most wide-scale segment             real-time marketing decisions generate
 data providers, like ad servers or firms like    increase in relevancy and conversion. The
 Nielsen, enable the capturing and sharing of     next phase of benefit realization is being
 anonymous data in a way that is consistent       seen in cross-channel intelligence combined
 with U.S. legal and general consumer             with targeting across multiple touchpoints.
 guidelines. Often times this is enabled with     This provides an incremental return-on-
 anonymous user cookies. However, it is           insight that is in turn leveraged to drive
 important to note that Europe is looking         greater relevancy, while improving delivery
 at anonymous segment data in a different         incrementally across channels that are
 way than the U.S. The EU Privacy Directive       typically working in siloes.
 may require that users must consent before
 placing an anonymous cookie. The final
 interpretation is due out in April.              Platform Led Process

                                                  This is truly historic times for marketing.
 Where’s the Value?                               Just a couple of years ago the tools to
                                                  comb through colossal data numbers were
 From a customer perspective, a qualitative       not available. Trillions of rows of data and
 benefit comes from the fact that you             petabytes of information are created daily
 are observing and listening to your              and in some cases every hour or less. And it is
 consumers. Every action or piece of              only growing. Traditional RDBMS would choke
 information a customer provides is a form        and fail on numbers of these sizes, or would


29
Big Marketing: Moving past single channel siloes to drive customer-centric
insights and experiences.




        From behavior in a single channel or
                                                         To a holistic view of the customer and
         session or by product (for example:
                                                               segment groups over time
           conversion, visits, orders, etc.)




be prohibitively expensive and fragile. But        • Google making its MapReduce algorithm
having the capability is only part of the story.   publicly available. This is the algorithm that
                                                   allows Google to index the vast swaths of
To do this right, process is key. The data         data across the web in a distributed fashion
warehousing technology landscape has               using thousands of servers across the world.
traditionally been dominated by two types
of solutions:                                      • Yahoo open-sourcing Hadoop—an
                                                   implementation of the MapReduce
1. Traditional databases such as Oracle, SQL       algorithm—thereby making the power
Server, Informix etc. These are used when          of “MapReduce” and big data processing
data size is on the order of gigabytes             available to the world at large.

2. Data warehousing appliances such as             • Amazon launching a cloud-based
Teradata, Netezza, etc. These are used for data    implementation of Hadoop through their
processing needs in the terabytes.                 Elastic MapReduce service, solving the
Datawarehouse appliances, with their massively     problem of getting access to large amounts
parallel processing capabilities, can be quite     of hardware on an as-needed basis to run
expensive and so were not unaffordable for         Hadoop for large data processing needs.
most marketers. However the landscape has
changed dramatically over the last five years      These developments provide the ability to
primarily due to a few developments in the data    process data in the order of petabytes at
processing world in general:                       vastly lower price points than previously


                                                                                                  30
available and in a much faster and more          jobs were taking more than a day to process
 flexible manner. For example, at Razorfish       and the situation was getting worse with
 we have been able to bring down the time         every passing day. Fast forward to 2009
 it takes us to process 90 days’ worth of         where the Hive/Hadoop cluster at Facebook
 Atlas cookie data (a data set that could be      stores more than 2PB of uncompressed data
 5-10TB in size) from an average of 15-16         and routinely loads 15 TB of data daily!
 hours to 3-4 hours by using Amazon’s Elastic
 MapReduce service a roughly 400% increase        Finally, new types of Massively Parallel
 in processing speed, not to mention the          Processing or “analytic databases” such
 cost-savings gained by moving to a pay-per-      as Asterdata and Vertica, which leverage
 use service and the elasticity to increase the   MapReduce/Hadoop technologies in the
 number of servers needed at will!                cloud, offer another attractive alternative
                                                  to marketers. They offer most of the
 The other important development is the           benefits that commercial data warehousing
 emergence of what are called “noSQL”             appliances have traditionally offered but at
 databases sporting names such as                 a lower cost and with the flexibility that a
 Cassandra, membase, CouchDB, etc. These          cloud-based architecture can offer.
 have been developed primarily to meet the
 massive data storage and processing needs        For Best Buy, Razorfish was able to leverage
 of social media firms such as Facebook,          Amazon’s implementation of Hadoop,
 Digg, and Zynga. In simple terms, noSQL          Amazon Elastic MapReduce, and use it to
 databases offer extremely fast read/write        generate amazing results. We created about
 capabilities at the cost of not guaranteeing     36 different personalization segments for
 ACID (Atomicity, Consistency, Isolation          the retailer. Those segments were able
 and Durability) properties associated with       to drive close to 2 million personalized
 traditional SQL databases. These databases       messages. We would import about .5
 offer marketers a solution to scenarios          trillion rows of data into 100 machines AWS
 where speed and volume are more                  EMR cluster on demand to personalize our
 important than accuracy.                         experiences. This all happened in about
                                                  8 hours a day and resulted in about 500%
 To get a sense for the data processing           return on advertising spend. Doing this with
 capabilities that these technologies             old world big data technologies would have
 have ushered in, consider this: Facebook         taken weeks to months simply to get the
 started with a commercial RDBMS-based            servers provisioned. And the servers would
 infrastructure that began to crumble             sit around idly between sessions.
 when it reached around 15TB in size.
 The infrastructure at that time was so
 inadequate that some daily data processing


31
The razorfish5 report 2011
The razorfish5 report 2011
The razorfish5 report 2011
The razorfish5 report 2011
The razorfish5 report 2011
The razorfish5 report 2011
The razorfish5 report 2011
The razorfish5 report 2011
The razorfish5 report 2011
The razorfish5 report 2011
The razorfish5 report 2011
The razorfish5 report 2011
The razorfish5 report 2011

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The razorfish5 report 2011

  • 2. Copyright 2011 Razorfish LLC. All rights reserved
  • 3. Contents Introduction: The Pace of Change ................................................................................................... 03 Near Field Communications ............................................................................................................ 07 The Interface Revolution ................................................................................................................. 13 Open Digital Services: Open API Platforms Enabling Consumer-Driven Innovation ........................ 21 Marketing in the Age of Big Data ..................................................................................................... 26 The Cloud’s Influence On Enterprise Architecture ........................................................................... 35 Looking Ahead: Predictions from our Authors ................................................................................. 41 02
  • 4. 5 The Pace of Change Bob Lord, Chief Executive Officer (@rwlord) Ray Velez, Chief Technology Officer (@rvelez) In his book “The Singularity is Near,” Exponential Growth of Computing inventor and futurist Ray Kurzweil predicts a Twentieth through the twenty first century pace of technological change that will make our recent strides feel glacial by comparison. 10 60 He sees cures for pollution and poverty, 10 55 10 50 aging and illness, even death. Physical Calculations per Second per $1,000 10 45 products will be conjured out of thin air – 10 40 or, more accurately, out of very expensive 10 35 printers. The rise of nanotechnology will 10 30 All human Brains 10 25 bring together man and computer in a 10 20 way that “will enable us to transcend our 10 15 One human Brain biological limitations and amplify our 10 10 One Mouse Brain One Insect Brain creativity.” By 2021, computer power will 10 5 1 be equal to that of the human brain, a 10 -5 state of affairs that will make Watson, the 10 -10 IBM-designed supercomputer that recently 1900 1920 1940 1960 1980 2000 2020 2040 2060 2080 2100 Year trounced a couple of flesh-and-blood brainiacs in a series of “Jeopardy!” matches, squeeze more information into our heads. look like a Commodore 64. In the past it’s been said that most folks only use 10% of our brain. Well, maybe we Not everyone is embracing this trend. The can up that to 12% or 15%. bandwagon of people who believe that all this information is actually overloading Whether all of these predictions come true us or rendering us Google-hooked know- by the dates assigned by folks like Kurzweil nothings is getting crowded. We believe doesn’t matter. The point is that change is that the opposite is true. Our brains have occurring at a more rapid rate than ever. been getting faster and faster at processing Our position here at Razorfish is that we images, an improvement that helps should simply ride the wave. As businesses, 03
  • 5. 5 Brain Scanning some of the key trends that show how the Image Reconstruction Time pace of change is quickening. The most breathtaking is the lightning-fast adoption 1000 Logarithmic Plot of Apple’s tablet, compared even to the 100 other hot products developed by Steve Jobs since 2001. Three months after launch, it’s 10 shipped over 14 million units. At a similar Seconds 1 point in time, only about three million 0.1 iPhones were in circulation. But before 0.01 Apple had a chance to kick back and relax, 0.001 the Google-developed Android platform basically took over the smartphone market Year 1970 1975 1980 1985 1990 1995 2000 2005 in just 9 months. Think of all the amazing computing power now available to be we need to be continually innovating and stuffed into the back pocket of a pair of adopting technologies to keep pace. It’s less jeans. We’ve already seen these devices about science fiction than science fact. put mobile application development on the map. That’s only the beginning. Consider the mobile space. iPods grew fast, iPhones even faster, and iPads left For the second year, Razorfish Technology’s them in the dust. The former Morgan- Group has compiled a list of five Stanley analyst Mary Meeker, speaking at technologies that will become crucial to Google’s Thinkmobile conference, captured your business in the coming year. Our best KP iPods Changed the Media Industry... iPhones Ramped Even Faster... IPad Growth leaves its “Siblings” in the Dust CB First 3 Quarters Cumulative Unit Shipments, iPod vs. iPhone vs. iPad 16,000 ................................................................................ iPad iPhone iPod 14,000 ................................................................................ Global Unit Shipments (1,000) 12,000 ................................................................................ 10,000 ................................................................................ 8,000 ................................................................................ 6,000 ................................................................................ 4,000 ................................................................................ 2,000 ................................................................................ 0 0 1 2 3 Quarters After Launch 04
  • 6. KP Android has Hit Critical Mass CB First 9 Quarters Cumulative Android Unit Shipments 80 ................................................................................ Global Cumulative Unit Shipments (MM) Android Global Units Shipped 70 ................................................................................ 60 ................................................................................ 50 ................................................................................ 40 ................................................................................ 30 ................................................................................ 20 ................................................................................ 10 ................................................................................ 0 0 1 2 3 4 5 6 7 8 9 Quarters After Launch strategic and creative minds have come intuitive, attractive and approachable. It together to ensure holistic look at upcoming seems like the days are numbered for that technologies, tying them to key business and dynamic duo of the mouse and keyboard. marketing priorities. The Razorfish Emerging Experiences team takes us through the new interfaces and One of the most exciting areas of innovation their implications. is around Near Field Communications, a set of short-range wireless technologies that Two Razorfish technology leaders, Basel facilitate the use of contactless payments. Salloum and Salim Hemdani, both group Google has built the capability into its VPs, walk us through Open Digital ServicesSM. Android OS with a production phone in ODS is about organizations opening up December 2010. Apple is rumored to follow services in a way that makes them available suit. NFC will usher in a whole new way of to any technology at any time, safely and interacting with our devices and it’s not securely. Building on Open APIs, this is a just for payment: think of the implications company’s best chance of keeping pace with couponing, added-value information from changing business models and technologies. merchants, and so forth. Paul Gelb, VP-mobile and Heiko Schweickhardt, technology lead, In the new digital reality, the amount of will give us an overview of what’s to come. consumer data available to organizations is colossal. Ignoring it is just as big a missed Interface change is going beyond tablets opportunity. With new cloud-based tools and and touch in 2011 as the ways available to techniques we can finally make sense of the interact with computers have gotten more trillions of rows of data to have better and 05
  • 7. more targeted conversations with our clients. Whether those conversations are through display ads or on web sites, you need to make sure you are listening to your customers with data and analytics. Ray Velez, Razorfish CTO, and Pradeep Ananthapadmanabhan, CTO of Publicis Groupe’s VivaKi, pull together some of the innovative technologies and techniques we have used to help clients such as Best Buy and others. Lastly, as the cloud infrastructure has become top of mind for most CIOs, it’s important to understand how your business and technology architectures change. Technology directors Jibi Scaria and Mandhir Gidda along with Ray Velez pull together best practices from across the organization learned from work we’ve done with clients including O2 and Mercedes. It should be clear by now that we’re not going to tell you how to inject nanobots into your customers’ bloodstreams. But we’d bet that by the time you’re finished reading this report you’re reeling a bit from the sheer speed with which the business scene is changing due to technologies like the ones we’ve identified. We hope we provide some guidance and, of course, we hope you enjoy. 06
  • 8. 5 Near Field Communications Paul Gelb, VP of Mobile Heiko Schweickhardt, Technology Lead In June 2007, a slide for everyone to learn the ins and outs in a Razorfish client of the technology and what it means for presentation painted a commerce, marketing and privacy. In the bleak picture for near field hands of those companies, NFC yields communications. “Today, a much broader opportunity than what the NFC contactless mobile payment arises from the contact-free nature of solution that is prevalent in Japan and mobile payments and a slice of merchants’ many emerging countries is not a viable transaction fees. Payments aside, NFC solution in the U.S.” We found that the has the potential to ignite billions of growth and impact of NFC had been stifled dollars of incremental revenue from by the competitive situation already in mobile marketing services. This windfall place, not by a lack of infrastructure to would finance countless transformative support it. Because the market for credit applications of NFC technology. It is in this and debit cards in the U.S. is saturated, context that the emergence of NFC in 2011 a new payments system would have to will be a watershed moment for mobile, provide significantly more value to users and impacting every industry. solution providers. NFC technology has been available for years, but it has only attained This new data and integrated service significant adoption in a few markets as a offering could generate billions if contactless payment solution. So, given all not hundreds of billions of dollars in that, near field communication (NFC) may incremental ad revenue. The increase in seem to be an odd selection for this report. inventory would come from the number of mobile users and the amount of time What’s changed in four years? that they spend with their mobile phones. There are over 5 billion mobile phones, Apple, Google and Facebook. NFC figures which is over 4 times the number of TVs. in the immediate plans of these uber- In fact there are more mobile phones disruptors and that means it’s important than people with access to fresh drinking 07
  • 9. 5 water. The penetration of smartphones, the system in which they match ad requests devices marketers will predominantly be from advertisers with consumer profiles able to target, is growing exponentially. The that reside in a database that they control. device is always with the consumer, creating According to the patent request description, the possibility for it to trigger a targeted an advertiser, using the dynamically-priced ad on nearby digital signage or any other system, may pay a unique price for an digital consumer touch point. Last, and advertisement based on an assessment of most importantly, the additional data would characteristics unique to the target recipient. increase ad effectiveness and efficiency by allowing marketers to target the most A great deal of NFC’s value is in its ability valuable consumers with the most effective to replicate ancillary value streams from ad content at the time they would be most credit and debit cards. For example, the receptive to the message. aggregated data from each user’s purchase behavior creates purchase histories that are NFC’s advertising potential is what is of the integrated into data from various sources most interest to new NFC market entrants by credit report firms to create robust such as Google, Microsoft, Apple and consumer profiles. These profiles are used Facebook. In fact, Apple has submitted a to create highly targeted lists of consumer patent for a dynamically priced advertising sales leads that can be sold at high prices to Apple´s Dynamically - Priced Advertising System www.patentlyapple.com Patently Apple 110 112 112 112 Advertisement Advertisement Advertisement 110 114 Infrastructure Owner/Manager 116 116 116 Advertisement Advertisement Advertisement 124 126 Target Advertisement(s) Marketing Factors 118 118 118 Bill Bill Bill Target User 122 Infrastructure Owner/Manager 114 08
  • 10. direct marketers. The list of consumers can pattern will allow marketers to reach a whole be targeted by geography, demographics, new level of analysis and optimization of behavior (lifestyle activities like golf or marketing programs. gardening), methods (preference for online purchasing vs. mail order) and life stage events (new parents or new home owners). Privacy Some banks and credit card companies have even sold highly targeted ad space on Most readers by now have likely started account statements directly to marketers. to think, if not scream out loud, about privacy issues. A comparison to other similar This value stream provides an opportunity products and user behavior patterns shows for NFC to generate exponentially more that privacy concerns will not impede value than credit or debit cards. NFC can mass market adoption rates. As previously connect a consumer with the physical world discussed, credit and debit cards provide in ways that generate an infinite number of numerous institutions with consumer data, interactions or valuable profile data points. which includes more personal information Consumer profiles could now include a user’s than any digital property currently collects. current location, where they have been, who Adoption and usage of these cards they have been in contact with, who is in their skyrocketed when loyalty point programs social network, what media content (across emerged. Consumers clearly demonstrated multiple channels) they have consumed and their willingness to relinquish the anonymity even how much influence they have on other of cash as long as they were compensated. consumers’ purchase decisions. When Amazon provided product NFC providers can also close the loop recommendations, based upon items the between mobile marketing programs and user had viewed but not purchased, many conversions. Evidence from NFC Pilots, posted were apprehensive. Consumers’ fears were job descriptions and registered patents has assuaged when Amazon communicated revealed the imminent release of several the value of those recommendations. integrated mobile marketing and commerce Netflix and Pandora provide more extreme solutions. These solutions would enable examples. Both companies are able to one service provider to deliver targeted provide and communicate enough product ads and promotions (coupons), integration value from information submitted by users of consumer profiles with product/store that the average user is now submitting all databases, promotion redemption, retailer kinds of data in the form of content ratings support for enabling m-commerce at the POS and movie account queues. These examples and consumer NFC contactless payment. The clearly prove that privacy issues are ability to see a consumer’s full behavioral removed when a company communicates 09
  • 11. the value the user will get from data NFC touchpoints for consumers. Potential collection, there is transparency around the interactions with touch points include virtual data collection and/or the user is given a check-ins to participate in loyalty programs, choice to opt in. special offerings and related product recommendations or virtual concierge NFC providers could follow these tactics by services like indoor augmented reality having a personal information and loyalty and floor plans. All these services can be program management application for mobile consumed with an intuitive wave gesture. devices. Users would be able to opt in to a Touch points like these will likely drive more collection of their personal information and consumers back into retail stores, providing select what bits could be used for ad targeting. them a richer, hands-on experience throught In exchange for opting in, users would be the integration of services. compensated by mobile wallet dollars. These rewards dollars would be based on events in which their information was shared Security with advertisers and could be redeemed during any m-commerce / NFC transaction. Security will likely be a greater challenge These virtual dollars could be financed by than privacy for NFC. The high value of a nominal percentage of the incremental access to a person’s financial assets and revenue generated from ads that leverage the personal data will increase the risk of consumer’s information for targeting. potential threats. Several NFC providers are planning to offer remote deactivation of the NFC functionality and deletion of profile User Experience information. Another security protection will be a biometric sensor that can read Consumers would benefit from a highly fingerprints or other anatomical features. improved user experience with NFC as Once again the revenue potential of this well. While contactless payments can be opportunity will allow market leaders in the technically achieved in different ways, the space to invest in and constantly improve ease and swiftness of waving a mobile security protections. While NFC may never phone in front of a retail register is far more be completely secure , there should be likely to be understood and embraced than the same level of protection as personal is a process where you have to scan visual information data bases and financial services codes with an embedded camera app. companies offer on other digital channels. Ultimately, we have witnessed significant However, again extending our focus database breaches over the last few years, beyond payment reveals a value that can but there has been a negligible effect on be significantly increased by providing consumer adoption. 10
  • 12. The last hurdle for mass implementation of NFC chips, is currently offering businesses NFC is the cost of producing and distributing in pilot cities free NFC receiver hardware hardware to stores that are capable of when they participate in ongoing tests. Even receiving payments from consumers’ governments have begun to invest in the mobile devices. NFC providers and public technology. The French government has institutions have already demonstrated spearheaded the purchase and distribution their willingness to absorb all or at least a of thousands of receivers for businesses in portion of this cost. This is especially true 13 cities that are participating in one of the when mobile devices are leveraged as largest NFC pilot testing programs ever. As the receiver hardware. Google is said to well, public transportation authorities in be poised to distribute as many as eight several U.S. cities have begun to invest in million “custom mobile devices” to small testing and implantation of NFC payment businesses around the U.S. Apple has pilots receivers for rider mobile payments. with several retailers, that includes IOS devices with preloaded m-payment receiver The large number of players investing in accessories, dedicated customer support NFC is evidence that the costs of addressing agents, expedited dispute resolution, challenges presented by privacy concerns, invitations to VIP events and merchant security threats and receiver hardware costs rewards. Bling Nation, an NFC start up are not prohibitive to the NFC business that leverages stickers with embedded model. However, to maximize ROI and Communication Between Controlling & Controllable Devices www.patentlyapple.com Patently Apple 90 94 Controllable Device 32 24 25 WAN Wired 1/0 IR Interface 34 24 30 NFC Interface PAN LAN 106 110 102 104 96 98 100 114 116 Internet Web Service 34 28 108 112 30 NFC Interface PAN LAN 32 24 25 WAN Wired 1/0 IR Interface 92 Controlling Device 11
  • 13. profit margins, potential NFC providers for companies that have looked beyond are investing in the development of non- mobile payments to uncover its untapped payment NFC applications for users. These potential. What will make NFC’s emergence utility and entertainment applications in 2011 even more exciting are the potential will provide non-monetary benefits to revelations from innovative companies that consumers and generate additional value are able to take the next step. Applications in creating consumer profile data. These and device accessories have exploded innovative NFC products could be offered alongside the recent rapid growth of smart as part of the compensation for opting into phones and tablets. When we look beyond data collection. NFC entirely, what new opportunistic industries will be revealed? For example, Apple has already patented an NFC application that could align with this strategy. The patent describes mobile devices that leverage NFC as becoming universal remotes capable of controlling any other NFC device, including TVs, DVRs, DVD players, gaming consoles and even garage/ doors. Data generated from this application of NFC technology would include what content and commercials a user had seen across multiple media channels. NFC powered remotes are just the tip of the iceberg. Numerous executions have been patented, prototyped and/or piloted. Social applications will enable users to share music, videos, contact information, a social network connection request or even an app. Travel applications will create virtual room keys, ID and ticket submissions and baggage check in. The list of potential functions is only limited by the creativity of the developers. NFC, a technology that is not new or particularly sexy, will open up nearly unprecedented opportunities for ad revenue and ground-breaking consumer experiences 12
  • 14. 5 The Interface Revolution Luke Hamilton, Creative and Experience Lead Contributors Jonathan Hull, Group Director Steve Dawson, Technology Lead James Ashley, Technical Architect Crystal Surrency, Strategy Analyst The Mouse, as We Knew It, is Dead iPad), game consoles like Microsoft Kinect, Nintendo Wii, and Playstation Move, Once revolutionary, the 25-year dominance advanced TVs with built-in cameras and of the mouse and keyboard as the microphones, and touch-enabled monitors, main interface for communicating with all remove mouse and keyboard mediators. computers is nearing the end of its lifecycle. As a result, consumers have begun a mass The mouse, after all, is merely a pointing migration away from GUI experiences device we awkwardly use as a substitute for toward interactive interfaces that are closer the finger. We click a button when we mean to the natural human experience, also to point; we slide a mouse across the table known as natural human interfaces (NUI). when we mean to swipe; we bang away at a keyboard when we mean to simply Consumers are responding to this speak. These mediated input methods are revolution by purchasing devices driving behaviors we have learned because the NUI experiences in record numbers. Brands technology, up until now, has not been must be prepared to adapt to the demand available to allow us to do what comes most by providing experiences that leverage naturally to us - touch, speak and gesture. these interaction metaphors across multiple devices. The mouse and keyboard as input devices will still have their place for some time to By observing the tablet as one of the come –driving graphical user interfaces outcomes of the interface revolution, we see (GUI) that are relegated to more precision how content, natural interfaces, and form and data-oriented niche tasks. However, factors shape the technology of the future. smartphones, tablets (mainly the Apple 13
  • 15. 5 Rise of the Tablets 3.3 million iPads sold in three months Think of the tablet computing concept this Compare the numbers of days it took these devices to way: it’s an idealized vision of a digital book, reach 1 mln units sold an object that shares the size, weight, and feel of a book or a clipboard but does so 360+ much more. Early tablet devices consisted of laptop computers with convertible 300+ screens on a hinge. These devices allowed for traditional interaction – keyboard and trackpad or stylus – when in tablet mode. 180 The operating system used on these devices was often a tablet-friendly version of a standard OS and not optimized for more 74 natural human interaction. 13 15 28 In the years following the release of the first ii S ne s od ad ry ok D W er ho iP iP bo o tablets over two decades ago, the device o kB nd iP nd et ac te N te Bl in in had failed to find mass adoption until April N N 3, 2010, when Apple released the iPad. Like nothing before, the sleek gadget popularized companies such as Intel, ARM, nVidia and a new tablet computing slate form factor: Qualcomm. However, it’s not just the no keyboard, touch-only interaction and a hardware that defines tablets. That job is new gesture-based operating system. The done by the instant-on, lightweight form combination of the hardware, software and factor coupled with the robust gesture- the established Apple eco-system helped based interface that simplifies experiences. create a neo-tablet experience which The intuitive discovery of richer content has captured the heart of consumers. been the catalyst that brought neo-tablet computing to the masses and created the Nine months later, 15.7M tablets have fourth largest consumer electronics channel been sold globally. At CES 2011, a wave overnight. of over 100 neo-tablets was announced. Not surprisingly, today’s tablets represent a multitude of fragmented form factors, Computing Without Tears resolutions, and features. From a hardware perspective, tablets are getting thinner, The various interfaces employed in the lighter and more powerful thanks to tablet category for personal computing innovation around chip technology from did not exist in the mind of the average 14
  • 16. Exhibit 1 Print and Video Benefit from the The iPad could potentially become the 4th largest iPad´s Larger Screen CE category next year Content Regularly Accessed 53% 51% $30.0 44% 39% 41% $25.0 U.S. CE Catagory Sales ($B) 33% 32% 25% 21% 22% $20.0 13% 11% 12% 8% $15.0 Book TV show Movie Magazines Radio News Music $10.0 iPad iPhone $5.0 $0.0 hands, or no hands. Because of the larger s es s ad es e as Cs s TV PC er ar on on er sP iP ay dw am k ed Ph Ph Pl op oo ar screen size users have more robust ways to nc lC P3 kt ar ll eb H Ce va es M ita Sm ot g Ad in D N ig interact and explore larger amounts of content. am D G consumer less than a year ago. But the iPad Speed: Responsive, fast-loading, simple and has transformed the computer electronics intuitive apps are winning over users. industry and the way users expect to interact with digital content. In doing so, Intuitive: Tablets have opened up a new Apple has created sustained demand for a way of thinking about how we interact with product that no one knew they wanted until computing devices using inutitive gesture- it was released. based interactions through metaphors that draw from real-world experiences. But in addition to adding to Apple’s ever expanding bottom line, tablet devices are Sized to share: The shape, weight and changing the user’s expectations of what touchscreen interface enables multi-user, computing means in a number of ways. They simultaneous or sequential experiences are not laptops, nor are they mobile devices while sitting or standing. (who is really going to walk around with a tablet in their pocket?); so what makes them Curated Computing: Tablets excel at so unique? delivering more relevant and less complex experiences – consider how its personalized Size: The iPad is smaller than a laptop, but media consumption has been a boon to larger than a pocket-sized phone. Plus, the casual games like Angry Birds. The devices interface can adapt to the device orientation also allow for light productivity experiences allowing users to hold it with one hand, two like document editing and email. 15
  • 17. It just works: The interface and the device One Size Does Not Fit All operate together in a way that consumers can easily learn and master. The tablet is With projections of global sales reaching closer to an appliance than a computer; +100 million units by 2012 and the plethora users expect it to work like a TV. When it’s of choices in form factors and operating on, it’s on. Additionally, you simply tap the systems, the neo-tablet signifies the screen to do something. next generation in end-user computing. However, one of the driving forces for “The fact that you can’t do everything with creating multi-purpose tablets is the ability a [tablet] like you can with other PCs - is to create and consume content on the same exactly what makes it successful” - Forrester, device. After all, the content that’s available May 2010 on the tablet is critical to the experience, whether it’s user-generated or not. Clearly, the tablet’s user-friendly touch interface, convenience, portability and high In these early days, the iPad commands degree of usability signifies the beginning of 85% of the tablet marketshare, despite the the end for a computing experience that had fact that it is often disparagingly viewed as become almost painful for consumers. With a device suitable for content consumption the release of the iPad and forthcoming rather than content creation. devices from other manufacturers, like the Samsung Galaxy Tab and Motorola Xoom, It can perform some light productivity tasks the tablet device has finally fulfilled the such as email or word processing, but the promise of delivering a truly transformative on-screen keyboard is not optimal for data computing experience. entry or programming. Additionally, the iPad owners spend a longer amount of time with their content Weekday Length of Time per Weekday Length of Time per Session by Category - iPad Session by Category - iPhone 78% 49% 44% 40% 40% 37% 34% 35% 32% 31% 32% 27%33% 24% 31% 29% 25% 31% 28% 25% 22% 24% 30% 27% 22% 25% 22% 24% 20% 19% 18% 18% 22% 16% 15% 15% 16% 7% 9%9% 8% 10% 10% 14% 11% 9% 8% 4% 7% 2% 5% 5% 3% 3% 5%9% 3% 7% 2%1% Movie TV Book Magazines Music News Movie TV Book Magazines Music News Less than 15 minutes 16-30 minutes 31-60 minutes 1-2 hours More than 2 hours 16
  • 18. touchscreen interface is not ideal for editing by enabling consumers’ ability to research photos or creating commercial content. It is, products from anytime, anywhere, and however, great for surfing the web, flicking increasingly in-store, tablet devices are through photos and bringing previously becoming not only a research platform, but static experiences to life by connecting your a commerce platform. digital appliances together. For example, Disney has created a new platform that Traffic is up 77% and growth continues. leverages your Blu-ray player, wifi and tablet This is not only attributed to the ease of to create a second screen experience which use (simple, intutive interface), form factor unlocks content that allows you to control and (much better ability to view content vs interact with your movies like never before. mobile) and convenience (portability is great And while smartphones are making a huge when in bed or relaxing on the couch), but impact on pre-purchase research behavior consumers are using their devices during iPad: Is this a device for a weekend? Web browsing activity of iPad users grows significantly on Saturdays and Sundays Sunday, Black Friday, Sunday, Sunday, Sunday, Nov, 19th Nov, 26th Dec, 19th Dec, 26th Jan, 2nd 77% Nov 17 Nov 25 Dec 3 Dec 11 Dec 19 Dec 27 Jan 4 Jan 12 Jan 20 4/15 4/18 4/21 4/24 4/27 4/30 5/3 5/6 5/9 5/12 5/15 5/18 5/21 5/24 5/27 5/30 17
  • 19. consumption hours when they are most • Simplify processes and tasks while likely to make purchases (prime time has maintaining rich and powerful content. always been the most expensive slot for “Maybe the new thing that everyone a reason, and now users have a device to recognizes is the unit of economic value is satisfy those sudden urges). the platform, not the device.” - Forrester, As the devices unlock additional capabilities Feb. 2011 and flexibility, there will be more producivity options for the average user. Some The rapid level of adoption has proven that companies are already working to solve this, these devices are beyond a novelty and providing peripherals that add keyboards, must be treated as a new channel that offers while others are creating dual purpose new and unique opportunities to connect tablet/netbooks still others are working on with consumers. optimizing input and interaction methods like stylus and speech support. There will also be continued exploration of form factors and To Infinity and Beyond experiences as the market matures. There are some key considerations when it comes Tablet devices are a great example of the to optimizing the end-user´s experiences: way consumers are responding to the interface revolution, but there are many • Design the experience for the particular more devices and platforms emerging in method of interaction and for the screen the market that leverage the NUI paradigm. real estate. This should include human input The technologies going beyond the touch factors, like occlusion (obstructing the user’s experience are so sufficiently advanced they view of the screen with a hand) and finger can feel like magic. vs. thumb size. Technology like Microsoft’s Xbox Kinect, • Introduce simple interactions at the leverages cameras and infrared to recognize beginning of an experience, more complex enough of your actions to enable full gesture interactions later. recognition without needing a controller or touching a screen. With the release and • Make the path to gestural learning success of Xbox Kinect the gesture control smooth, clear and direct so as to ensure that market is heating up. users understand how to maximize their own interactions. Much like the original iPhone brought touch interaction into the mainstream by • Consider the size, orientation and single or putting millions of devices in the hands of multitouch capabilities of the device. consumers, Xbox Kinect will do the same for gesture control. Imagine being able to 18
  • 20. virtually try on clothes from the comfort of Autonomos Labs, they are taking this literally. your own home. Or order a pizza with a flick They have engineered an experience that allows of the wrist while sitting on your couch. you to drive your car with your thoughts alone. (George Lucas would be proud.) Gesture control technology is not just for the living room either. There is a growing All of these will continue to transform the community of developers and designers interface and in turn transform all our experimenting with these technologies in touchpoints, including in-venue retail, retail and digital out-of-home experiences. desktop, tablet, mobile or out-of-home. Gesture-based interaction is great when touch isn’t practical. For instance, on a large screen projected display it is difficult or Delight the Eye Without physically impossible to control the entire Distracting the Mind area using touch. For example, the Discovery Channel recently created an out-of-home In dumping the old mouse-enabled experience that allows users to participate interaction paradigm, the tablet and its in the story as well as share the content with bretheren have opened up a new way of their social networks. interacting with computing devices. Using intuitive actions as metaphors that draw It’s not just Xbox Kinect that’s getting in on from real-world experiences means that the fun, there are people grabbing basic web touch, gestural and voice interfaces provide cameras and creating algorithms to recognize additional opportunites to interact with moods and emotion as well as gender and customers and potential customers in more age. Toshiba has built basic face recognition personalized ways. and tracking into its laptops. Mercedes-Benz has a feature that detects drowsiness and What does this mean for your brand? the warning icon is a cup of coffee. If you’ve sat in any of the new cars hitting the market • Brands must first acknowledge that the most of them have some kind of voice revolution in NUI means that there is no control. And InnerScope Research has been “one size fits all” solution, and they will need using a biometric sensor vest that measures to adapt and interact with consumers on responses in heartbeat, skin conductivity multiple platforms or channels. and perspiration, respiration and physical motion. But wait there’s more. • Brands should not fixate on the devices themselves but rather on how they can best Some really exciting opportunities on the leverage the new interface capabilities to bleeding edge are using mind control, yes mind enhance the user experience. control, to drive experiences. In the case of a 19
  • 21. • Brands should weigh the pros and cons of before possible will usher in the next native apps vs. device optimized web-based revolution, not just in computing, but in experiences, as both are expected to take design and marketing. advantage of cloud computing over the next few years. In fact, Google, Microsoft and Amazon are all betting on this as they invest even more heavily in their respective cloud infrastructures. Because tablets will have less available storage space than the typical PC or netbook, storage for tablet-based apps is expected to take place in the cloud. • Brands will need to offer deeper, more interactive content. It’s not about a single task but the customer journey. The experiences need to evolve and adapt to the consumers’ lifestyle and how they want to consume or create content. • Brands must recognize that ubiquitous, portable content will enable a better connection with consumers by being where the consumer is, no matter what platform they are using. • Connected experiences weave brands into the consumer’s life. However, ultra- personalization is the key to making the devices and content invaluable to consumers and transforming them into brand advocates. Brands that can successfully leverage these new user environments by creating personalized, natural user interfaces will build stronger and more lasting relationships with their existing customers and open doors to potential new customers. Tapping consumer buying power in ways never 20
  • 22. 5 Open Digital ServicesSM: Open API Platforms Enabling Consumer-Driven Innovation Basel Salloum, Group VP, Technology Salim Hemdani, Group VP, Experiences and Platforms So after more than a few late nights, you’ve Now you’re probably thinking that it’s gotten your branded iPad app out the door. easy for those companies to open up. They It’s moving well, but it’s no, well, iPad. Your were built that way; it’s hardwired into customers seem to like it well enough. A their culture. I don’t work at an Internet few four star ratings, but there are many company. I sell physical items work at a more three and two-star reviews. You can’t large company with a big bureaucracy. It’s help wondering if it was worth the time, like comparing apples and oranges. cost and energy; and if there’s a better way to engage with your consumers, to cut to Wrong! the heart of how they understand your brand in a digital age where new devices For most brands, even the stodgiest among and interfaces are invented on a daily basis. them, there is huge potential in Open API. There is an enormous opportunity for true There is a way, and it’s the path that allow innovation by connecting with consumers companies like Facebook, Google, and and empowering them to transact with Twitter to innovate so rapidly: Open APIs. your brand on their own terms. This is All these companies have been built in no where an Open Digital Services (ODS) small part by their user communities. It’s model is essential. pretty clear by now that there’s no better way to give your consumers the digital Once the brand/consumer connection experiences they want and need than to let is established through an ODS platform, them do the innovating themselves. empowering consumers to innovate opens 21
  • 23. 5 up endless possibilities. Best Buy, Amazon, public in a secure and scalable manner, using eBay and Netflix have also embraced a modular or service oriented architecture the idea of open platforms. They have (SOA) as the backbone of this platform (e.g., experimented with this new model for APIs or Web Services). It provides consumers marketing their products and services at with a highly customizable mechanism almost no cost. For instance, Best Buy´s for consuming content and executing Open APIs – BBYOpen-- allows other brands transactions through a set of “digital services” across the world to freely access product available for a wide audience such as information, store details and reviews. So developers, publishers and advertisers. ODS a developer can create an app that allows must be designed and built specifically to a purchase from Best Buy to be performed your business, it is not a product that you can right in the app itself. eBay made a similar acquire and customize, although there are move, with respect to auctions. Netflix, middleware products that could complement as another example, has incentivized its your platform architecture. community by holding a competition to build the next generation recommendation As a technology platform, a typical ODS engine. These brands are tapping into the implementation has a set of public-facing passion of the developer community to digital services that are inter-linked and further enhance their marketing cause. integrated with your existing back-end And, bear in mind, they’re all publicly-traded systems and/or third party systems. That companies for whom there is a lot at stake in integration is managed through a middle- these kinds of programs. tier “broker,” which could be a custom- built engine or a middleware product such as an enterprise service bus, which What is ODS? is primarily responsible for security, transaction integrity, entitlement and At Razorfish we have been helping clients service deployment. This model promotes build these sorts of programs since the many advantages around security, code advent of the web. Back in 1999, we helped reusability, rapid application development, MLB.com build its open video platform that ease of maintenance and much more. In aggregated all content across the clubs. addition, your legacy systems are expensive More recently we helped a large financial to maintain, modify or replace, and their services company build open feeds around proprietary APIs should never be opened up learning content. directly to the outside world. In the simplest terms, Razorfish Open Digital ServicesSM (ODS) is a platform that allows you to expose your business services to the 22
  • 24. Advantages of ODS applications and ideas in the hands of your most loyal advocates—your customers. Lower cost and ease of integration: Having an enterprise-wide ODS platform will eliminate the need for direct integration ROI with each back-end system every time an application or a functionality needs to be Imagine what consumers will be able to built. The separation of existing backend do if the automotive industry provided API systems from consumers through an ODS access to Bill of Material (BOM) for every platform, will lower development cost and single vehicle they ever built? What if the increase the ease of integration. consumer goods industry provided API for nutrition details of every edible product Increased Flexibility and Agility: they market? What if technology companies One of the key benefits of this platform is provided API to a set of unique and cutting it allows companies and/or consumers to edge features of their latest R&D project? transact in a dynamic and agile manner. What if financial services companies opened Whether it’s consuming a content feed up access to product and services they or executing a financial transaction, offer? What if insurance companies allow marketers will have the ability to quickly API access to their claims data? Imagine create experiences that pertain to their the possibilities. Consumers will create consumers and provide a benefit to both meaningful and engaging experiences using parties. Over time, these experiences can these APIs on their own terms. ODS can be greatly enhanced from learning through facilitate and support the process of building iterative development cycles of consumers. a community of brand evangelists with a A framework for flexible experiences lifetime customer value that can beat the ROI ultimately results in a happy customer. of any other campaign! Additional sales and the introduction of new sources of revenue Extensibility: can be recognized through channels that are Extensibility is also a core principle and an re-using API, including suppliers, partners, advantage when users are no longer limited etc. And brand evangelists are happy too. to in-house and on-payroll developers building applications. Suddenly the new ideas landscape is virtually unlimited to all ADVICE audiences; providing extensive variety of media through many digital channels, all of Not every brand or organization is a which revolve around the user´s needs and candidate for ODS. While in most cases ODS behavior´s changes. Open Digital ServicesSM is a solution, you should first go through puts the tools for innovation, new functions, an applicability and feasibility exercise to 23
  • 25. validate whether or not it’s advantageous to conflict situation arises then consider creating your business and consumers. Even if there two different services. isn’t a strong business case for it, you’d be amazed by the benefits that it can bring to 2. Loose Coupling of Services: It is inevitable your consumers. that in some instances, service output will be processed by the client in order to engage in Once you do get the platform in place, rely further transactions with the platform. After on the power of community to help you find the first service call from the client in a given new methods of marketing and expanding transaction, it is possible that subsequent your products and services. Some of the calls to other services may be highly most powerful and most used mobile dependent on values returned in previous applications are ones that were built by a calls. Despite this dependency scenario you single developer who had access to an open must always keep all of your services self- platform through an enterprise. contained and allow loose coupling that will let the client (e.g., developer) manage While ODS provides agility and flexibility the transaction integrity. Do not force the and promotes innovation, it can be complex service coupling by making things mandatory to create, not only from a technology or prescribing specific coupling mechanism. standpoint, but also organizationally. This Each service should maintain awareness of is why it’s crucial to adhere to the guiding other services offered but shall always be principles listed below. Building a true ODS independent. It is tempting to force your platform is more than putting together audience to the follow same procedures as a bunch of web services and calling it a your business does and this temptation must platform. Definitely prioritize which services be avoided to allow free thinking. you want to open up, and create a SOA based architecture utilizing a middleware 3. Industry Compliant Access Model: engine such as an enterprise service bus. Service Oriented Architecture (SOA) is a highly evolved discipline. SOA prescribes various methods, models and guidelines ODS Guiding Principles for authentication, authorization, service contract, payload management, security 1. Self-Contained Services: Any service you and service orchestration for developing wish to open up has to be self-contained. Every and deploying interoperable services. These service shall have one and only one response industry standards shall be meticulously type for all requests. Service response can be followed to avoid any one-off rules or an array of an object type but service shall practices that are specific to your company never respond with two different types of and utterly unnecessary. objects irrespective of request parameters. If a 24
  • 26. 5 4. Start Small and Simple: Your business as turn to cloud computing to address their it exists today has evolved over a period concerns about scalability, high availability, of time. Your business model is no longer upfront hosting cost and time to market. as easy as buying low and selling high, ODS will no longer be optional or a nice- or introducing simple services with high to-have; it’s already becoming an industry ROI. Over the years, one-off exceptions, best practice and a key standard for internal processes, regulatory compliance, organizations. This revolution of connecting promotions, discounts and a myriad of consumers with brands will create more other things have shaped your business service providers specializing in open rules. How can you open-up APIs without architecture platforms as an offering, and considering these business rules? Yes, you it will push existing technology service will get caught-up in these discussions when providers to revisit their capabilities around identifying what products and services shall SOA based architecture and web services. be made public. The solution is to follow the rule: Keep it simple! Identify the minimum set of self-contained services that you can open and roll them out. Let your consumers define what is next. PREDICTION Some organizations will trail behind and some will not survive unless they create an open digital platform based on service or modular based architecture, and give their consumers the ultimate flexibility and agility. We’re going to see more traditional organizations overcoming their fear of certain standards around security and scalability and join the Open Digital Platforms movement. Financial Services brands in particular have been reluctant, although companies such as ETRADE*, PayPal and MasterCard have embraced it. The notion of “private data centers” and “hardware procurement” is on the path to becoming obsolete. Organizations will 25
  • 27. 5 5 Marketing in the Age of Big Data Ray Velez, Chief Technology Officer Pradeep Ananthapadmanabhan, Chief Technology Officer, VivaKi Nerve Center Mark Taylor, Solutions Director, Global Solutions When we talk about information overload, • Survey-based data available from the we usually associate it with consumers Nielsens of the world who, in the course of going about their day, are smothered by thousands of bits of • Vast amounts of social data available data, branded or otherwise. But these days through open APIs and connections to marketers, too, can be overwhelmed by Facebook, Twitter and tools like Open the sheer amount of data pouring in from Social the billions of online interactions they have with their customers on an annual basis. Historically, these data sets have been Consider just this partial list of data sources: simply too large to allow any meaningful data analysis and processing to take place. • Clickstream data available from tools like Now we have new technologies to help us Atlas and Doubleclick—who have cookied make sense of and use the data. With big over 90% of the Internet data techniques, all of these touchpoints become usable assets and present an • Site or digital experience data that enormous opportunity for almost any organizations track through logs and/or organization that wants to improve the analytics tools like Omniture, Webtrends dialogue with its consumers. Technologies and Google Analytics such as MapReduce, noSQL, and cloud- based Massively Parallel Processing (MPP) • Other channel data across various databases have pushed the limits of the touchpoints (email, call center, mobile, etc.) amount of data that marketers can process without having to blow their entire budgets. • Client data This has enabled us to not just manage • Transactional data big data but to, simply, think big. We have 26
  • 28. progressed from a technology culture based What to do with all this data? around constraints and managing known parameters to an environment of innovation Here at Razorfish, we have been innovating where we continue to explore the frontiers data-led marketing for years. Our DNA is of what we can do. This changes marketing grounded in data innovation, including the in a major way—not just in the technology creation of the ATLAS platform (a technology organization, but across the whole spun out of Razorfish and acquired by framework of how a company does business Microsoft) and any number of patented with consumers. But this is no cakewalk. techniques that leverage advanced analytics There is a major challenge in the form of against clickstream data. Now that we have consumer privacy, which is shaping us a greater access to big data solutions, we’re cultural issue as well as a legal one. With innovating faster. the influx of data comes great responsibility to respect customers’ information while In the past, the industry process has working to give them and your clients the been very linear: marketers plan their most efficient communications strategy campaign, buy ad space, run the ads and possible. What follows is your guide to measure the results, often with weeks in striking that balance. between each stage. Now, we test multiple Each touchpoint is an identifiable interaction and an opportunity to communicate to your customers intelligently at scale >100M interactions » Categories » Content SITE » Merchandising ~ 35+Million interactions >500M interactions » Email » Display » Billing CUSTOMER » Paid search » Mail COMMS MEDIA » email <5M interactions » Facebook 1 ½M interactions » YouTube » Site service » LinkedIn SOCIAL » Online service SERVICE 27
  • 29. creative executions and media plans, among the growing crowd concerned with and immediately tweak them to deliver privacy matters. Let’s back up and define the best-performing ads and reach the targeting or, to use a more benign synonym, optimal audiences, even as measurement personalization. At the highest level, it is data starts to come in. To enable this, our using data that can be gathered from either analytics approach has become advanced anonymous web users or from people who and sophisticated enough to identify true are identifiable because they’re logged into relationships across the data that will be a website. This process allows us to create meaningful for consumers and profitable for consumer segments and those segments clients. are used to create relevant experiences. For example, if the data tells us that you are in Amid the vast sets of data, it’s the tiny a particular segment and we know that that subsets that have the most significant segment is interested in mountain bikes, we impact on our customer interactions. We can show you mountain bike experiences have already altered the way we design our instead of road bike ads. Think about it analytics and data management solutions by this way—lots of data sources map into initiating strong measurement and KPI [key segments, and segments drive experiences performance indicator] strategies alongside and messages anywhere you can create our technical solutions to drive our clients’ experiences where experiences are driven? business goals. In our experience, just about every display These Razorfish-led innovations ensure ad is somewhat targeted and personalized. sound business logic and measurement Have you ever noticed that when you start techniques combine with our Business looking for a product, ads for that product Intelligence to drive down latency to a start showing up more often? Combating the near real-time basis, creating an almost low clickthrough rates challenge of display immediate feedback loop. The renaissance ads, advertisers have used targeting data in data-driven display ad planning and for years. However, it is far too rare that measurement is just one example of big data this data and targeting information is used in action. beyond display ads, and leveraged across multiple channels, from websites, to mobile, Targeting or Personalization to email, to social applications, and beyond. Often times someone will click through Targeting is one of those hot-button an ad to end up on a web experience, and marketing terms that means different things all that wonderful information that was to different people. Its vaguely threatening available in the ad never makes it to the sound doesn’t hold – no one wants a desktop or mobile site, or even in-venue bullseye on them after all – especially kiosk. That is the opportunity we have here. 28
  • 30. Privacy of communication. You wouldn’t ignore the information from a conversation Since data is so abundant, it’s critical with a customer in the store or on the to ensure that all data practices follow phone, would you? And, quantitatively, privacy laws that govern whether and how we can increase relevant and meaningful personally identifiable information can be engagement time, increase conversation used. Netflix learned during a contest it and increase referrals—all of these metrics created so its community could develop a leading to increasing revenue. It takes a new recommendation engine that even with focused effort and time to correlate metrics, large, highly anonymized data sets it is still but you are creating a framework that possible to identify a unique user. That is enables understanding of the impact of probably the best way to think of personally the targeting updates. Inevitably some will identifiable information: date that can increase and some will decrease. identify a unique person when it is captured. If that person has opted in, you can store Our clients have seen huge benefits within you the data. If there was no opt-in, you’re single channels like display where near out of luck. Most wide-scale segment real-time marketing decisions generate data providers, like ad servers or firms like increase in relevancy and conversion. The Nielsen, enable the capturing and sharing of next phase of benefit realization is being anonymous data in a way that is consistent seen in cross-channel intelligence combined with U.S. legal and general consumer with targeting across multiple touchpoints. guidelines. Often times this is enabled with This provides an incremental return-on- anonymous user cookies. However, it is insight that is in turn leveraged to drive important to note that Europe is looking greater relevancy, while improving delivery at anonymous segment data in a different incrementally across channels that are way than the U.S. The EU Privacy Directive typically working in siloes. may require that users must consent before placing an anonymous cookie. The final interpretation is due out in April. Platform Led Process This is truly historic times for marketing. Where’s the Value? Just a couple of years ago the tools to comb through colossal data numbers were From a customer perspective, a qualitative not available. Trillions of rows of data and benefit comes from the fact that you petabytes of information are created daily are observing and listening to your and in some cases every hour or less. And it is consumers. Every action or piece of only growing. Traditional RDBMS would choke information a customer provides is a form and fail on numbers of these sizes, or would 29
  • 31. Big Marketing: Moving past single channel siloes to drive customer-centric insights and experiences. From behavior in a single channel or To a holistic view of the customer and session or by product (for example: segment groups over time conversion, visits, orders, etc.) be prohibitively expensive and fragile. But • Google making its MapReduce algorithm having the capability is only part of the story. publicly available. This is the algorithm that allows Google to index the vast swaths of To do this right, process is key. The data data across the web in a distributed fashion warehousing technology landscape has using thousands of servers across the world. traditionally been dominated by two types of solutions: • Yahoo open-sourcing Hadoop—an implementation of the MapReduce 1. Traditional databases such as Oracle, SQL algorithm—thereby making the power Server, Informix etc. These are used when of “MapReduce” and big data processing data size is on the order of gigabytes available to the world at large. 2. Data warehousing appliances such as • Amazon launching a cloud-based Teradata, Netezza, etc. These are used for data implementation of Hadoop through their processing needs in the terabytes. Elastic MapReduce service, solving the Datawarehouse appliances, with their massively problem of getting access to large amounts parallel processing capabilities, can be quite of hardware on an as-needed basis to run expensive and so were not unaffordable for Hadoop for large data processing needs. most marketers. However the landscape has changed dramatically over the last five years These developments provide the ability to primarily due to a few developments in the data process data in the order of petabytes at processing world in general: vastly lower price points than previously 30
  • 32. available and in a much faster and more jobs were taking more than a day to process flexible manner. For example, at Razorfish and the situation was getting worse with we have been able to bring down the time every passing day. Fast forward to 2009 it takes us to process 90 days’ worth of where the Hive/Hadoop cluster at Facebook Atlas cookie data (a data set that could be stores more than 2PB of uncompressed data 5-10TB in size) from an average of 15-16 and routinely loads 15 TB of data daily! hours to 3-4 hours by using Amazon’s Elastic MapReduce service a roughly 400% increase Finally, new types of Massively Parallel in processing speed, not to mention the Processing or “analytic databases” such cost-savings gained by moving to a pay-per- as Asterdata and Vertica, which leverage use service and the elasticity to increase the MapReduce/Hadoop technologies in the number of servers needed at will! cloud, offer another attractive alternative to marketers. They offer most of the The other important development is the benefits that commercial data warehousing emergence of what are called “noSQL” appliances have traditionally offered but at databases sporting names such as a lower cost and with the flexibility that a Cassandra, membase, CouchDB, etc. These cloud-based architecture can offer. have been developed primarily to meet the massive data storage and processing needs For Best Buy, Razorfish was able to leverage of social media firms such as Facebook, Amazon’s implementation of Hadoop, Digg, and Zynga. In simple terms, noSQL Amazon Elastic MapReduce, and use it to databases offer extremely fast read/write generate amazing results. We created about capabilities at the cost of not guaranteeing 36 different personalization segments for ACID (Atomicity, Consistency, Isolation the retailer. Those segments were able and Durability) properties associated with to drive close to 2 million personalized traditional SQL databases. These databases messages. We would import about .5 offer marketers a solution to scenarios trillion rows of data into 100 machines AWS where speed and volume are more EMR cluster on demand to personalize our important than accuracy. experiences. This all happened in about 8 hours a day and resulted in about 500% To get a sense for the data processing return on advertising spend. Doing this with capabilities that these technologies old world big data technologies would have have ushered in, consider this: Facebook taken weeks to months simply to get the started with a commercial RDBMS-based servers provisioned. And the servers would infrastructure that began to crumble sit around idly between sessions. when it reached around 15TB in size. The infrastructure at that time was so inadequate that some daily data processing 31