Archive for the 'Technology' Category

Microsoft’s HoloLens Brings the Digital World Off the Screen

February 9, 2016

In June of 2015, at the Electronic Entertainment Expo in Los Angeles, Microsoft presented a demo (below) of what it is like to play Minecraft using HoloLens. The audience was amazed as the digitized world came off the screen and became an overlay on the real world.

Unlike the completely immersive experience of virtual reality, a la Facebook’s Oculus Rift, the HoloLens allows users to combine the physical world with an immersive virtual experience. Google Glass and other augmented reality efforts provide small “windows” on the real world while Microsoft is using holograms to create complete 3D virtual images. The HoloLens also runs all other Windows applications, allowing users not to have to rely on a screen.

Use cases for HoloLens go beyond gaming, as the technology finds a seamless space for the virtual and real worlds to meet, interact, and collaborate. As our BRITE ’16 speaker Scott Erickson, Senior Director of HoloLens, explains in an interview with The Verge, HoloLens provides users with “the ability to walk around, to overlay holographic information and make it contextual to physical objects that are in the [same] space.”

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A very interesting aspect of the experience is precisely the capability to interact with others around you, both those who are using a holographic computer and those who aren’t. Cliff Kuang from Fast Company, explains that “Microsoft has already conducted hundreds of hours of user testing to figure out just how we might interact in this new hybrid reality. They’ve already come up with some very clever interactions, like making your gaze function as a mouse pointer.”

The only reported downside to HoloLens is that the field of vision for where holograms can appear is still limited.

microsoft-hololens

In early 2016, Microsoft opened up applications for the HoloLens Development Edition, which will ship by the end of the first quarter of the year. With a price tag of $3000 for the kit, it is still unknown what the price of the consumer model will be.

In the meantime, Microsoft is using its Flagship store in NYC to allow developers and a few lucky curious to test the HoloLens.

Join us on March 7-8 for BRITE ’16 and see Microsoft’s Scott Erickson talk about HoloLens and the possibilities of a mixed reality world. Plus, when you register, you will have a chance to sign-up and visit the flagship store to experience the HoloLens yourself.

BY GABRIELA TORRES PATIÑO

 

DOES UNLIMITED STREAMING MUSIC HAVE A MODEL THAT WILL LAST?

September 22, 2015

This post first appeared on the AIMIA Institute blog.

This is the second part of a two-part series. Click here to view part one.

Over the past decade, literally hundreds of start-up companies and established tech leaders have built free streaming and subscription services for music. With good reason, since in 2015 alone over one trillion songs have been streamed. Google and Amazon joined the fray a few years ago, but the big mainstream splash occurred this summer with the launch of Apple Music. Even casual music fans are now aware they have options to sign up not just for free internet radio, but also for paid subscription music services.

Although it almost seems silly to wonder whether today’s streaming music business models will last, I felt for years that their financial stability was not necessarily secure. So, I feel the question is worth asking.

First of all, it is not a good sign that musicians are aggravated about how they are being compensated. Artists have been making headlines by rebuffing the tiny royalty payments they receive from such services. The biggest news was Taylor Swift pulling out of Spotify, and a range of star-studded performers, led by Jay-Z, are re-launching their own subscription platform, Tidal, with the promise that a greater share of revenue would go to recording companies and artists.

Subscription streaming in France

There is a need to take a deeper look at the financials behind these services. Let us say that the word “obtuse” is a generous way of defining the transparency of these deals. When I sent a musician friend of mine this Ernst & Young analysis of how Spotify in France splits its revenue, he remarked, “Meet the new boss, same as the old boss.” The music labels, as before, take in the majority of post-tax revenue.

Where is the money in music?

Most artists receive fractions of a penny on every track played, but almost none of the streaming music services are yet making any profit. Plus, there are lawsuits and regulatory changes (here and here) that could make the financials even more challenging. The deals Apple Music made with the labels are actually under investigation, because of the possibility that some provisions could be anti competitive.

Despite all of this, a big-picture look at U.S. music revenues (2014 RIAA Music Industry Shipment and Revenue Statistics) makes it clear why this model is here to stay. The growth rate of streaming services has been extremely rapid, nearly tripling between 2011 and 2014. Next year, streaming services will likely provide a larger percentage of music revenue than physical music sales. If these “disruptive” services are now the second-largest source of revenue for the music industry, they are not likely to disappear anytime soon.

As streaming use has grown, physical and digital download sales have shrunk, and the overall revenue for the music industry has plummeted. This decline has less to do with these new forms of legally purchasing, or listening to music, than with the opportunities to easily “share” music via the Internet. Not to mention numerous years of an economic downturn and the simultaneous growth of other forms of digital entertainment that grab people’s eyes, ears, and cash.

Since 1973, the peak of the industry in the United States occurred during 1994 through 2000, with the average American spending $60 to $70 per year on music. At present, that number is down to close to $20.

RIAA-BI-music-industry-revenue-trend

Consumers adopt paid entertainment services

In the midst of this, I believe that the subscription model actually offers hope for the industry. Marketers seeking to understand the potential future behavior of the music audience can see signs of the future in other entertainment media.

A majority of the U.S. public is now accustomed to paying for cable TV, Internet service, and mobile phone service, with streaming video services about to hit mass market adoption as well. Subscription service competition is rampant, so there is a real possibility that a majority of households in the country will set up a subscription streaming music service as part of their annual entertainment spend.

To grow users, the services will need to add pricing tiers at the lower and higher ends. This could start, for example, at $4.99/month with some restrictions (and/or some ads). Higher prices could be charged for added services (e.g., Tidal offers a $19.99/mo. option for lossless quality audio).

The ad-supported streaming music model of the future may not look quite like it does today, depending on regulatory decisions, lawsuits, and future licensing negotiations, but with Pandora now generating $1 billion in annual revenue and building a loyal brand following, it is hard to believe that the model will disappear either.

After years of thinking that this unlimited access to music was too good to last, I’m now wiping my brow and smiling. But I have knocked on wood, as well, just to be safe.

What can marketers outside the music world glean from this industry and apply to their own? The music streaming sector has evolved greatly over the last decade, and industry leaders now offer an increasingly personalized experience. Spotify offers their subscribers “Discover Weekly” which is an ultimate personalized playlist based on recommendations from analyzing listening history. With such advanced capabilities for marketers to collect data about their customers, they are able to offer truly personalized and customized experiences like never before.

Examine your business to see if you can encourage customers to move past the ownership model to a “renting” or subscribing one. The rise of the sharing economy shows us that this model has become more prominent. How might a similar disruptive innovation change your industry?

BY MATTHEW QUINT

The Intuitive Future of Wearable Tech

August 3, 2015

Imagine not just watching a football game, but also feeling the impact athletes feel as they tackle each other. Sound far off? It’s not. The Alert Shirt, a combined effort of FOXTEL and We:eX, is “a fan jersey that uses wearable technology to take the experience into the physical world, allowing fans to feel what the players feel live as it happens during the game.”

Gartner forecasts that wearable devices will deliver $15.8 billion in worldwide revenue by 2020. Such devices have quickly become ingrained in our day-to-day lexicon, and wearable technologies are now transcending smart watches and fitness devices. While many manufacturers are focused on analyzing and delivering personal data as the value exchange for consumers, other companies are taking it a step further with a more experiential and intimate approach.

We:eX (Wearable Experiments), founded by fashion innovator and creator of the Alert Shirt, Billie Whitehouse, seeks to uphold the human experience and how it can work in concert with technology. “Too often have I seen another big, chunky watch. I call that the arm party.” She opted to produce products with a more personal, less obtrusive approach. Her first was Fundawear for Durex Australia, intimate apparel “that transfers touch for long distance couples….” The campaign won a Silver Lion at the Cannes Lions International Festival of Creativity.

When looking at the intersection of fashion and technology, Whitehouse saw a gap in the wearables landscape. “Statistics show we’re starting to forget to use touch as a form of communication in our daily lives because we’re so dependent on technology.” Whitehouse and her team design items to tap into the feeling of touch to create an emotional bridge between the digital and the physical space.

At Columbia Business School’s BRITE ’15 conference, Whitehouse elaborated on her wearables mission—to merge fashion and technology with a functional design aesthetic to elevate quality of life. Her products are compelling and entertaining with a practical twist, not only easing pain-points, but making life… well, fun.

A self-described “body architect,” Whitehouse explained that she dives into “the nooks and crannies, the softness and the movement of the body and how we integrate technology into that space.”

The 20-something entrepreneur has fashion and innovation in her DNA. Her mother founded the Whitehouse Institute of Design in New South Wales, Australia, which hosts Project Runway Australia. Together, they designed a curriculum notable for incorporating new innovations. In taking a deep look at the future of fashion early on, Whitehouse explained, “I was having the right conversations at the right time… and [looked at] how we use fabrics and fibers and technologies to invigorate fashion, to give it intelligence, to make sure everything you put on your back has a purpose.”

One of her newer creations is “Navigate,” a location-enabled jacket that does exactly as the name implies—helps people to navigate through the streets of cities like New York, Sydney and most recently Paris. As Whitehouse explains, “Wearable technology must be intuitive and seamless within our daily lives, enhancing our life experience while connecting us to other people and the world at large. Our new product is a major first step in the right direction.”

Watch Billie Whitehouse, keynote speaker at BRITE ’15.

BY ALLIE ABODEELY

Effectiveness in Mobile Display Advertising

October 22, 2014

mobile-advertisingOne might assume the types of companies that benefit most from mobile display advertising (MDA) are those that sell no-frills, everyday products like cleaning supplies. But new research from Columbia Business School’s Professor Miklos Sarvary has shown that short, promotional messages on mobile devices pack a powerful punch for big ticket items that entail a high level of consideration during the path to purchase—such as cars.

In Which Products Are Best Suited to Mobile Advertising?, Prof. Sarvary, along with INSEAD’s Yakov Bart and the University of Pittsburgh’s Andrew Stephen, analyzed mobile display campaign data from a variety of industries spanning 2007-2010 and reaching nearly 40,000 US consumers. They focused on two primary psychological measures: (1) how favorable consumers’ attitudes are toward advertised products and (2) consumers’ intentions to purchase or use advertised products.

Sarvary, Bart and Stephen identified product characteristics associated with MDA campaigns that boost consumer attitudes and purchase intent and found that mobile ads are most effective in reminding people of a purchase decision for highly-involved products.

“If you’ve been thinking about buying a car, you already have plenty of information in your mind about it…” Sarvary explains. “The ad’s strength is not adding new data, but reminding you what you already know and making you think about the product again.”

By 2016, global spend on mobile advertising is predicted to reach $36 billion. As marketers increasingly dedicate larger portions of their budgets to MDAs, it’s essential to have an in-depth understanding of when and why these ads are most effective.

Download the study to learn more about mobile display advertising and its effects on consumer attitudes and intentions.

BY ALLIE ABODEELY

CMO insights from IBM’s Global C-suite Study

April 28, 2014

IBM-Infographic-2014

For more than a decade, IBM has built upon research to produce its C-suite Studies series, one of the largest collections of C-level executive insights. Its latest research Stepping Up to the Challenge: CMO Insights from the Global C-Suite Study focuses on how CMOs “are helping their enterprises become more ‘customer-activated.’”

IBM Institute for Business Value found that employing a revenue-generating, customer-centric strategy can stem from digital marketing capabilities. But despite digital being a current area of focus for CMOs, it’s a world many still struggle with. Specifically, less than 20% of CMOs interviewed for the study “have integrated their company’s interactions with customers across different channels, installed analytical programs to mine customer data and created digitally enabled supply changes to respond rapidly to changes in customer demand….” Such CMOs are segmented as “Digital Pacesetters” in the report.

The issue isn’t that the other +80% are fire-walling technology, but rather they grapple with maneuvering through the explosion of data, and tethering digital media to bottom line numbers. As one CMO (anon.) in the study explains, “We know what we want to do. Our biggest challenge is creating the data infrastructure.”

This translates into potential missed opportunities. IBM Institute for Business Value reports, “There’s a close link between the degree of digital acumen CMOs display and the financial performance of the enterprises for which they work.” The research revealed that many CMOs have de-prioritized monetizing social media. They are “presumably finding it too difficult or see social mainly as a tool for building awareness and forging connections.”

While CMOs are becoming a stronger force when it comes to influencing CEOs on strategy, second only to CFOs, it’s the CMOs’ relationships with Chief Innovation Officers that generate results. IBM Institute for Business Value reports that businesses are 76% more likely to outperform in terms of revenues and profitability when CMOs and CIOs effectively work together.

According to the study, analytics are top priority for CIOs. IBM Institute for Business Value suggests partnering with CIOs to create an infrastructure for scalable cognitive analytics that produce actionable customer insights. It cautions not to be “all things to all people,” but rather concentrate analytics on those customer lifecycle phases that will be of utmost importance to your business in the next few years.

IBM Analytics InvestmentDigital Pacesetters, notes IBM Institute for Business Value, are “actively investing in the later phases of the customer lifecycle, where digital channels make the biggest difference.” While traditional phases end with the transaction, Pacesetters look at the bigger picture – focusing resources on long-term relationships and cross-channel experiences to turn customers into loyalists and collaborators and encouraging them to share these experiences. Such companies, per the study, “are 59 percent more likely to be outperformers.”

Download the complete study to learn more about IBM’s findings and strategizing digital.

BY ALLIE ABODEELY

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