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DIGITAL	
  CAMERAS	
  
The	
  next	
  genera5on	
  
of	
  digital	
  service	
  
delivery	
  
Crea%ng	
  a	
  digital	
  service	
  provision	
  in	
  the	
  camera	
  space	
  
A	
  NUMBER	
  OF	
  RELATED	
  TRENDS	
  SIGNAL	
  AN	
  OPPORTUNITY	
  IN	
  THE	
  DIGITAL	
  CAMERA	
  SPACE	
  
	
  
1.  Trends	
  
2.  Implica5ons	
  
1	
   Industry	
  and	
  consumer	
  trends	
  
2	
   Compe%tor	
  response	
  
3	
   Opportuni%es	
  in	
  digital	
  service	
  delivery	
  
Industry	
  and	
  Consumer	
  Trends	
  
GLOBAL	
  SHIFT	
  TOWARD	
  SMARTPHONES	
  
Increasing	
  capabili%es	
  
•  Over	
  %me,	
  smartphones	
  have	
  
increased	
  capability	
  enough	
  to	
  
meet	
  most	
  customers’	
  picture-­‐
taking	
  needs	
  
•  High-­‐end	
  digital	
  cameras	
  
con%nue	
  to	
  improve,	
  but	
  
features	
  have	
  outpaced	
  
customer	
  needs	
  
•  Far	
  from	
  being	
  viewed	
  as	
  an	
  
added	
  benefit,	
  the	
  increased	
  
complexity	
  is	
  puRng	
  
customers	
  off	
  
•  All	
  while	
  being	
  slow	
  to	
  deliver	
  
an	
  important	
  new	
  
requirement	
  –	
  social	
  sharing	
  
Industry	
  and	
  Consumer	
  Trends	
  
AND	
  AWAY	
  FROM	
  LOW-­‐END	
  DIGITAL	
  CAMERAS	
  
Rise	
  of	
  the	
  smartphone	
  
•  This	
  has	
  led	
  to	
  a	
  sharp	
  
decrease	
  in	
  overall	
  digital	
  
camera	
  sales	
  since	
  2011	
  while	
  
smartphone	
  sales	
  con%nue	
  to	
  
accelerate	
  
Industry	
  and	
  Consumer	
  Trends	
  
THE	
  RESPONSE:	
  WIFI	
  ENABLED	
  CAMERAS	
  
Instant	
  sharing	
  required	
  
•  The	
  ability	
  to	
  share	
  photos	
  
instantly	
  via	
  smartphone	
  
means	
  customers	
  now	
  
demand	
  this	
  as	
  a	
  hygiene	
  
factor	
  
Industry	
  and	
  Consumer	
  Trends	
  
THE	
  RESPONSE:	
  WIFI	
  ENABLED	
  CAMERAS	
  
Responding	
  to	
  demand	
  
•  Most	
  major	
  camera-­‐makers	
  
are	
  trying	
  to	
  catch	
  up	
  either	
  
by	
  bringing	
  wifi	
  to	
  their	
  
cameras	
  or	
  their	
  cameras	
  to	
  
wifi	
  
•  But	
  quality	
  has	
  been	
  mixed	
  
and	
  reac%ons	
  have	
  varied	
  
Industry	
  and	
  Consumer	
  Trends	
  
THE	
  UPSIDE:	
  MILLIONS	
  OF	
  NEW	
  PHOTOGRAPHERS	
  ASPIRE	
  TO	
  GREATNESS	
  
Up	
  the	
  value	
  chain	
  
•  PuRng	
  a	
  camera	
  in	
  
everyone’s	
  hands	
  has	
  
introduced	
  hundreds	
  of	
  
millions	
  of	
  people	
  to	
  
photography	
  as	
  a	
  hobby	
  
•  Many	
  then	
  decide	
  to	
  upgrade	
  
to	
  a	
  medium	
  to	
  high-­‐end	
  
digital	
  camera	
  skipping	
  over	
  
compact	
  digital	
  cameras	
  in	
  the	
  
process	
  
•  Overall	
  camera	
  volumes	
  are	
  
decreasing	
  30%	
  yoy	
  but	
  
revenue	
  just	
  about	
  stays	
  flat	
  
Industry	
  and	
  Consumer	
  Trends	
  
BUT:	
  CUSTOMERS	
  ARE	
  LOST	
  AT	
  SEA	
  ONCE	
  THEY	
  UPGRADE	
  	
  
Now	
  what?	
  
•  Customers	
  upgrade	
  to	
  a	
  
medium	
  to	
  high-­‐end	
  digital	
  
camera	
  but	
  don’t	
  know	
  what	
  
to	
  do	
  it	
  with	
  
•  Over	
  2/3	
  never	
  take	
  it	
  off	
  the	
  
auto-­‐shoot	
  func%on	
  
Industry	
  and	
  Consumer	
  Trends:	
  Implica%ons	
  
IMPLICATIONS	
  TO	
  DIGITAL	
  SERVICE	
  OFFERINGS	
  FOR	
  CAMERA	
  MAKERS	
  	
  
	
  
1.  Customers	
  need	
  help	
  choosing	
  the	
  right	
  camera	
  for	
  them	
  
2.  Then	
  they	
  need	
  help	
  learning	
  how	
  to	
  use	
  it	
  beyond	
  point	
  and	
  shoot	
  
1	
   Customers	
  want	
  to	
  make	
  the	
  leap	
  to	
  mid	
  and	
  high-­‐end	
  cameras	
  but	
  need	
  help	
  
2	
   Once	
  they’ve	
  moved	
  up	
  the	
  value	
  chain	
  they	
  need	
  help	
  unleashing	
  the	
  hidden	
  ar%st	
  within	
  
3	
   Customers	
  want	
  to	
  share	
  their	
  crea%ons	
  with	
  whomever	
  they	
  want,	
  however	
  they	
  want,	
  right	
  now	
  
1.  They	
  need	
  access	
  to	
  a	
  wide	
  variety	
  of	
  tools	
  to	
  transform	
  their	
  photos	
  into	
  art	
  
2.  And	
  they	
  want	
  to	
  pass	
  their	
  newly	
  honed	
  exper5se	
  on	
  	
  
1.  Customers	
  want	
  to	
  seamlessly	
  share	
  their	
  art	
  with	
  the	
  world	
  
2.  And	
  they	
  want	
  to	
  do	
  it	
  using	
  whatever	
  plaHorms	
  and	
  tools	
  they’re	
  already	
  comfortable	
  with	
  
Crea%ng	
  a	
  digital	
  service	
  provision	
  in	
  the	
  camera	
  space	
  
A	
  NUMBER	
  OF	
  RELATED	
  TRENDS	
  SIGNAL	
  AN	
  OPPORTUNITY	
  IN	
  THE	
  DIGITAL	
  CAMERA	
  SPACE	
  
	
  
1	
   Industry	
  and	
  consumer	
  trends	
  
2	
   Compe%tor	
  response	
  
3	
   Opportuni%es	
  in	
  digital	
  service	
  delivery	
  
1.  Making	
  the	
  leap	
  
2.  Unleashing	
  the	
  ar5st	
  
3.  Sharing	
  crea5ons	
  
Compe%tor	
  Response	
  
HELP	
  CUSTOMERS	
  MOVE	
  UP	
  THE	
  VALUE	
  CHAIN:	
  HELP	
  ME	
  CHOOSE	
  
Limited	
  Customer	
  Op%ons	
  
•  Very	
  lible	
  done	
  in	
  this	
  space	
  despite	
  a	
  
clear	
  need	
  for	
  it	
  
•  Flickr	
  takes	
  a	
  bobom	
  up	
  approach	
  
while	
  Fujifilm	
  starts	
  from	
  the	
  top	
  
•  No	
  website	
  incorporates	
  unbiased	
  
customer	
  reviews	
  or	
  other	
  legi%mate	
  
social	
  proof	
  
Industry	
  Score	
   3/10	
  
Compe%tor	
  Response	
  
HELP	
  CUSTOMERS	
  MOVE	
  UP	
  THE	
  VALUE	
  CHAIN:	
  TEACH	
  ME	
  TO	
  USE	
  IT	
  
The	
  opposite	
  of	
  fun	
  
•  Mixed	
  results	
  across	
  camera-­‐makers,	
  
but	
  customer	
  educa%on	
  is	
  an	
  
acerthought	
  for	
  most	
  
•  One	
  or	
  two	
  offer	
  peer-­‐led	
  %ps	
  and	
  
tutorials,	
  but	
  the	
  communi%es	
  are	
  
underdeveloped	
  
•  Most	
  customer	
  support	
  focuses	
  on	
  
repairs,	
  warran%es,	
  and	
  similar	
  
Industry	
  Score	
   5/10	
  
Compe%tor	
  Response	
  
UNLEASH	
  THE	
  INNER	
  ARTIST/GURU	
  :	
  PROVIDE	
  THE	
  TOOLS	
  I	
  NEED	
  &	
  LET	
  ME	
  
SHARE	
  MY	
  KNOWLEDGE	
   Adding	
  Value:	
  Sort	
  Of	
  
•  One	
  company	
  allowed	
  customers	
  to	
  
upload	
  photos	
  to	
  an	
  online	
  porfolio	
  
and	
  none	
  linked	
  out	
  to	
  third-­‐party	
  
tools	
  
•  Two	
  companies	
  allow	
  for	
  brand	
  
ambassadors	
  to	
  share	
  their	
  knowledge	
  
and	
  recommenda%ons,	
  but	
  both	
  feel	
  
inorganic	
  and	
  underu%lised	
  
Industry	
  Score	
   4/10	
  
Compe%tor	
  Response	
  
SHARING:	
  WHENEVER,	
  WHEREVER,	
  HOWEVER	
  
Sharing,	
  just	
  
•  Most	
  camera	
  makers	
  have	
  started	
  
offering	
  wifi-­‐enabled	
  cameras,	
  but	
  
quality	
  is	
  mixed	
  
•  One	
  company	
  lets	
  customers	
  share	
  
photos	
  on	
  its	
  owned	
  assets	
  but	
  none	
  
offer	
  tools,	
  portals,	
  or	
  other	
  methods	
  
for	
  external	
  sharing	
  
Industry	
  Score	
   4/10	
  
Crea%ng	
  a	
  digital	
  service	
  provision	
  in	
  the	
  camera	
  space	
  
A	
  NUMBER	
  OF	
  RELATED	
  TRENDS	
  SIGNAL	
  AN	
  OPPORTUNITY	
  IN	
  THE	
  DIGITAL	
  CAMERA	
  SPACE	
  
	
  
1	
   Industry	
  and	
  consumer	
  trends	
  
2	
   Compe%tor	
  response	
  
3	
   Opportuni%es	
  in	
  digital	
  service	
  delivery	
  
1.  Redefining	
  the	
  customer	
  journey	
  
2.  And	
  crea5ng	
  opportuni5es	
  therein	
  
Opportuni%es	
  in	
  digital	
  service	
  delivery	
  
CUSTOMER	
  NEEDS	
  AND	
  EXPECTATIONS	
  HAVE	
  CHANGED;	
  SO	
  TOO	
  SHOULD	
  THE	
  CUSTOMER	
  JOURNEY	
  
	
  
1	
  
Aspirant	
  
2	
  
Member	
  
3	
  
Novice	
  
4	
  
Pro	
  5	
  
Show	
  
Off	
  
6	
  
Evan-­‐
gelist	
  
7	
  
Enthu-­‐
siast	
  
Wants	
  a	
  camera	
  
but	
  needs	
  help	
  
Bought	
  a	
  camera,	
  
now	
  part	
  of	
  the	
  club	
  
Learn	
  how	
  to	
  use	
  
the	
  camera	
  to	
  
create	
  beau%ful	
  
photos	
  
Edit	
  and	
  beau%fy	
  
those	
  photos	
  to	
  
create	
  stunning	
  art	
  
Create	
  online	
  (or	
  
print)	
  galleries	
  and	
  
porfolios	
  or	
  share	
  
individual	
  shots	
  
Pass	
  along	
  
knowledge	
  to	
  new	
  
members	
  of	
  the	
  
club	
  
Decide	
  to	
  buy	
  a	
  
new,	
  beber,	
  camera	
  
Opportuni%es	
  in	
  digital	
  service	
  delivery	
  
CREATING	
  DIGITAL	
  SERVICE	
  DELIVERY	
  OPPORTUNITIES	
  AROUND	
  CUSTOMER	
  NEEDS	
  
	
  
1	
  
Aspirant	
  
2	
  
Member	
  
3	
  
Novice	
  
4	
  
Pro	
  5	
  
Show	
  
Off	
  
6	
  
Evan-­‐
gelist	
  
7	
  
Enthu-­‐
siast	
  
•  Unbiased	
  reviews	
  
•  Camera	
  selector	
  
•  Through	
  our	
  lens	
  
•  Personalised	
  welcome	
  
campaign	
  
•  Where	
  to	
  begin	
  
•  Omnichannel	
  training	
  
programme	
  focussed	
  on	
  
outcome	
  not	
  specs	
  
•  Primarily	
  UGC	
  
•  Onsite	
  edi%ng	
  tools	
  
•  Partner	
  with	
  third	
  
par%es	
  –	
  desktop	
  and	
  
mobile	
  
•  Specialised	
  forums	
  
•  Cloud	
  storage	
  op%ons	
  
•  Partner	
  with	
  third-­‐party	
  
porfolio	
  sites	
  
•  Frequent	
  community-­‐
driven	
  contests	
  
•  Contribute	
  to	
  user-­‐led	
  
forums	
  and	
  tutorials	
  
•  Unbiased	
  reviews	
  
•  Strong	
  gamifica%on	
  
elements	
  
•  Track	
  customer	
  
product	
  use	
  	
  
•  Suggest	
  
accessories	
  and	
  
upgrades	
  
Opportuni%es	
  in	
  digital	
  service	
  delivery:	
  Concepts	
  
HELP	
  THE	
  CUSTOMER	
  DECIDE	
  WHICH	
  CAMERA	
  IS	
  BEST	
  FOR	
  HER	
  
	
  
Opportuni%es	
  in	
  digital	
  service	
  delivery:	
  Concepts	
  
HELP	
  THE	
  CUSTOMER	
  MAXIMISE	
  HER	
  EXPERIENCE	
  
	
  

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How the digital camera industry can survive the smartphone juggernaut

  • 1. DIGITAL  CAMERAS   The  next  genera5on   of  digital  service   delivery  
  • 2. Crea%ng  a  digital  service  provision  in  the  camera  space   A  NUMBER  OF  RELATED  TRENDS  SIGNAL  AN  OPPORTUNITY  IN  THE  DIGITAL  CAMERA  SPACE     1.  Trends   2.  Implica5ons   1   Industry  and  consumer  trends   2   Compe%tor  response   3   Opportuni%es  in  digital  service  delivery  
  • 3. Industry  and  Consumer  Trends   GLOBAL  SHIFT  TOWARD  SMARTPHONES   Increasing  capabili%es   •  Over  %me,  smartphones  have   increased  capability  enough  to   meet  most  customers’  picture-­‐ taking  needs   •  High-­‐end  digital  cameras   con%nue  to  improve,  but   features  have  outpaced   customer  needs   •  Far  from  being  viewed  as  an   added  benefit,  the  increased   complexity  is  puRng   customers  off   •  All  while  being  slow  to  deliver   an  important  new   requirement  –  social  sharing  
  • 4. Industry  and  Consumer  Trends   AND  AWAY  FROM  LOW-­‐END  DIGITAL  CAMERAS   Rise  of  the  smartphone   •  This  has  led  to  a  sharp   decrease  in  overall  digital   camera  sales  since  2011  while   smartphone  sales  con%nue  to   accelerate  
  • 5. Industry  and  Consumer  Trends   THE  RESPONSE:  WIFI  ENABLED  CAMERAS   Instant  sharing  required   •  The  ability  to  share  photos   instantly  via  smartphone   means  customers  now   demand  this  as  a  hygiene   factor  
  • 6. Industry  and  Consumer  Trends   THE  RESPONSE:  WIFI  ENABLED  CAMERAS   Responding  to  demand   •  Most  major  camera-­‐makers   are  trying  to  catch  up  either   by  bringing  wifi  to  their   cameras  or  their  cameras  to   wifi   •  But  quality  has  been  mixed   and  reac%ons  have  varied  
  • 7. Industry  and  Consumer  Trends   THE  UPSIDE:  MILLIONS  OF  NEW  PHOTOGRAPHERS  ASPIRE  TO  GREATNESS   Up  the  value  chain   •  PuRng  a  camera  in   everyone’s  hands  has   introduced  hundreds  of   millions  of  people  to   photography  as  a  hobby   •  Many  then  decide  to  upgrade   to  a  medium  to  high-­‐end   digital  camera  skipping  over   compact  digital  cameras  in  the   process   •  Overall  camera  volumes  are   decreasing  30%  yoy  but   revenue  just  about  stays  flat  
  • 8. Industry  and  Consumer  Trends   BUT:  CUSTOMERS  ARE  LOST  AT  SEA  ONCE  THEY  UPGRADE     Now  what?   •  Customers  upgrade  to  a   medium  to  high-­‐end  digital   camera  but  don’t  know  what   to  do  it  with   •  Over  2/3  never  take  it  off  the   auto-­‐shoot  func%on  
  • 9. Industry  and  Consumer  Trends:  Implica%ons   IMPLICATIONS  TO  DIGITAL  SERVICE  OFFERINGS  FOR  CAMERA  MAKERS       1.  Customers  need  help  choosing  the  right  camera  for  them   2.  Then  they  need  help  learning  how  to  use  it  beyond  point  and  shoot   1   Customers  want  to  make  the  leap  to  mid  and  high-­‐end  cameras  but  need  help   2   Once  they’ve  moved  up  the  value  chain  they  need  help  unleashing  the  hidden  ar%st  within   3   Customers  want  to  share  their  crea%ons  with  whomever  they  want,  however  they  want,  right  now   1.  They  need  access  to  a  wide  variety  of  tools  to  transform  their  photos  into  art   2.  And  they  want  to  pass  their  newly  honed  exper5se  on     1.  Customers  want  to  seamlessly  share  their  art  with  the  world   2.  And  they  want  to  do  it  using  whatever  plaHorms  and  tools  they’re  already  comfortable  with  
  • 10. Crea%ng  a  digital  service  provision  in  the  camera  space   A  NUMBER  OF  RELATED  TRENDS  SIGNAL  AN  OPPORTUNITY  IN  THE  DIGITAL  CAMERA  SPACE     1   Industry  and  consumer  trends   2   Compe%tor  response   3   Opportuni%es  in  digital  service  delivery   1.  Making  the  leap   2.  Unleashing  the  ar5st   3.  Sharing  crea5ons  
  • 11. Compe%tor  Response   HELP  CUSTOMERS  MOVE  UP  THE  VALUE  CHAIN:  HELP  ME  CHOOSE   Limited  Customer  Op%ons   •  Very  lible  done  in  this  space  despite  a   clear  need  for  it   •  Flickr  takes  a  bobom  up  approach   while  Fujifilm  starts  from  the  top   •  No  website  incorporates  unbiased   customer  reviews  or  other  legi%mate   social  proof   Industry  Score   3/10  
  • 12. Compe%tor  Response   HELP  CUSTOMERS  MOVE  UP  THE  VALUE  CHAIN:  TEACH  ME  TO  USE  IT   The  opposite  of  fun   •  Mixed  results  across  camera-­‐makers,   but  customer  educa%on  is  an   acerthought  for  most   •  One  or  two  offer  peer-­‐led  %ps  and   tutorials,  but  the  communi%es  are   underdeveloped   •  Most  customer  support  focuses  on   repairs,  warran%es,  and  similar   Industry  Score   5/10  
  • 13. Compe%tor  Response   UNLEASH  THE  INNER  ARTIST/GURU  :  PROVIDE  THE  TOOLS  I  NEED  &  LET  ME   SHARE  MY  KNOWLEDGE   Adding  Value:  Sort  Of   •  One  company  allowed  customers  to   upload  photos  to  an  online  porfolio   and  none  linked  out  to  third-­‐party   tools   •  Two  companies  allow  for  brand   ambassadors  to  share  their  knowledge   and  recommenda%ons,  but  both  feel   inorganic  and  underu%lised   Industry  Score   4/10  
  • 14. Compe%tor  Response   SHARING:  WHENEVER,  WHEREVER,  HOWEVER   Sharing,  just   •  Most  camera  makers  have  started   offering  wifi-­‐enabled  cameras,  but   quality  is  mixed   •  One  company  lets  customers  share   photos  on  its  owned  assets  but  none   offer  tools,  portals,  or  other  methods   for  external  sharing   Industry  Score   4/10  
  • 15. Crea%ng  a  digital  service  provision  in  the  camera  space   A  NUMBER  OF  RELATED  TRENDS  SIGNAL  AN  OPPORTUNITY  IN  THE  DIGITAL  CAMERA  SPACE     1   Industry  and  consumer  trends   2   Compe%tor  response   3   Opportuni%es  in  digital  service  delivery   1.  Redefining  the  customer  journey   2.  And  crea5ng  opportuni5es  therein  
  • 16. Opportuni%es  in  digital  service  delivery   CUSTOMER  NEEDS  AND  EXPECTATIONS  HAVE  CHANGED;  SO  TOO  SHOULD  THE  CUSTOMER  JOURNEY     1   Aspirant   2   Member   3   Novice   4   Pro  5   Show   Off   6   Evan-­‐ gelist   7   Enthu-­‐ siast   Wants  a  camera   but  needs  help   Bought  a  camera,   now  part  of  the  club   Learn  how  to  use   the  camera  to   create  beau%ful   photos   Edit  and  beau%fy   those  photos  to   create  stunning  art   Create  online  (or   print)  galleries  and   porfolios  or  share   individual  shots   Pass  along   knowledge  to  new   members  of  the   club   Decide  to  buy  a   new,  beber,  camera  
  • 17. Opportuni%es  in  digital  service  delivery   CREATING  DIGITAL  SERVICE  DELIVERY  OPPORTUNITIES  AROUND  CUSTOMER  NEEDS     1   Aspirant   2   Member   3   Novice   4   Pro  5   Show   Off   6   Evan-­‐ gelist   7   Enthu-­‐ siast   •  Unbiased  reviews   •  Camera  selector   •  Through  our  lens   •  Personalised  welcome   campaign   •  Where  to  begin   •  Omnichannel  training   programme  focussed  on   outcome  not  specs   •  Primarily  UGC   •  Onsite  edi%ng  tools   •  Partner  with  third   par%es  –  desktop  and   mobile   •  Specialised  forums   •  Cloud  storage  op%ons   •  Partner  with  third-­‐party   porfolio  sites   •  Frequent  community-­‐ driven  contests   •  Contribute  to  user-­‐led   forums  and  tutorials   •  Unbiased  reviews   •  Strong  gamifica%on   elements   •  Track  customer   product  use     •  Suggest   accessories  and   upgrades  
  • 18. Opportuni%es  in  digital  service  delivery:  Concepts   HELP  THE  CUSTOMER  DECIDE  WHICH  CAMERA  IS  BEST  FOR  HER    
  • 19. Opportuni%es  in  digital  service  delivery:  Concepts   HELP  THE  CUSTOMER  MAXIMISE  HER  EXPERIENCE