In The Pocket’s annual report about new trends and technologies in mobile & IoT
Mobile is dead
Welcome to the postmobile age. Just a few years ago, mobile changed everything. In a Copernican revolution, the center of our digital world shifted from the personal computer to the smartphone. The label “mobile” was meant to offset handheld devices (smartphones, tablets) and the related software platforms (iOS, Android, Windows) from everything else: traditional software, computers, desktop websites,… Mobile was considered a niche. Today, a healthy digital ecosystem has a solid proposition for the smartphone at its core, not in the margin. So why is mobile dead? Mobile is no longer a niche, it is the essence and the future of digital. A new tidal wave of innovation is on its way and it will make your smartphone even more powerful: the Internet of Things. Billions of connected devices are building up to an enormous network of sensors, chips and processors streaming data to each other and to your smartphone. Our cities, homes, workplaces, cars and bodies are becoming digitized and available to us via our smartphone. So what precisely is “mobile” supposed to describe? Mobile is dead, enter the connected world. Smartphones are getting better and faster, but they are not fundamentally changing. What is changing is the data that is becoming available through connected devices: it is multiplying. Apps are becoming smarter than ever, which should translate to the simplest possible user experiences. The near future of mobile is about blended experiences that include all the screens that you use as well as your immediate surroundings and all devices within reach of your bluetooth signal. Context, relevance and proactiveness will get a lot more meaning in 2016. In this third edition of our report, we will describe the most important trends and technologies you need to understand to survive and thrive digitally in 2016. Various experts will walk you through fundamental topics such as UX trends, beacons, low powered wireless networks and a modern take on digital strategy.
I hope you enjoy it and find the energy and inspiration for another exciting year in mobile, Jeroen Lemaire Co-founder & Managing Director, In The Pocket
5
5
Editorial
8
Designing Beyond the Screen
14
The State of Retail
18
The Future of Retail — bol.com
24
What’s Next in Store for Beacon Tech?
30
The State of Beacons
32
The Eve of A New Technology Era
38
The State of Banking
40
iOS 9: Smarter, Deeper, Broader, Stronger
44
The Future is Fragmented
48
The State of Mobile Platforms
52
The Turbulent Life of the Windows OS
56
The State of Mobile Usage
58
Step by Step towards Connected Health
64
The State of Wearables
66
The IoT: All Set for Living up to the Hype
70
Through the Looking Glass: The Dawn of Virtual and Augmented Reality
74
The State of Media
76
The Future of Media — De Persgroep
DESIGNIN BEYOND THE SCRE
NG
EEN Hannes Van de Velde Product & Design Manager - In The Pocket
Designing at In The Pocket is a mostly digital craft: we design for screens (phones, tablets, watches, you name it) and on screens (laptops and desktops). But in the past year, we’ve seen a change in both what we design and how we design.
WHAT IS CAUSING THE SHIFT? At the core of this shift, we see client and user needs and technological innovations challenging and expanding the design profession. CLIENT AND USER NEEDS First of all, the products we build are increasingly business-critical for our clients. But the same goes for end users: the impact of digital products on their daily (work) life is increasing. A news app is no longer a nice-to-have addition to the physical newspaper but a growing revenue
10
stream for publishers. In this case, bad design has a direct impact on the publisher’s business. When we build products for the healthcare industry, the stakes are even higher. Here, bad design can possibly cause physical harm to patients. TECHNOLOGICAL INNOVATIONS Secondly, a slew of technological innovations like the Internet of Things, Artificial Intelligence and Virtual Reality is drastically changing the way we build things. These innovations are demanding new ways for us to interact with technology.
The Internet of Things (IoT) refers to every-
Whenever a new technology arises, our
day physical objects becoming connected
first reflex is to think about the possibilities
and being able to exchange data. Think fit-
of the technology and start building prod-
ness trackers and other wearables, but also
ucts from those possibilities. The result of
connected fridges, lighting and clothing.
this design process is often a conceptual
Most of these objects are, and will remain, screenless. The interactions we have with these objects, and the way we design for them, will thus be vastly different from how we interact with screen-based devices. Both Apple and Google, the main suppliers of the platforms we design for, are heavily investing in Artificial Intelligence: Google is doing so with ‘Google Now On Tap’, an omnipresent AI-assistant for Android, while Apple touts iOS9’s Proactive Siri. On top of that, AI will make data analysis and processing a lot smarter, allowing for a series of new and more relevant interactions with end-users.
Design from the problem towards technology, not vice versa. proof of concept with a sci-fi user experience. These experiments are very useful to showcase the technology, but rarely result in directly usable products or services. That’s because the design process started from the technology down to the use-case. In order to create real value for users, we should start designing from the needs of
Last but not least, Virtual and Augmented
the people and technology should serve
Reality (VR and AR) quite literally open
as a solution for those human needs. With
up a whole new world of visually experi-
more and more technological solutions at
encing technology. These technologies are
our disposal, designing from human needs
currently focusing on games and other cin-
towards technological solutions will only
ematic experiences that are fairly isolated
become more important.
from the ‘real world’. But as we find ways to design more natural experiences and interfaces for VR and AR, we will start to see their true potential.
WORK FOR THE USER Designing and building a successful product or service with so many technological solutions at our disposal requires a deep
SUCCESSFULLY DESIGNING BEYOND THE SCREEN
understanding of businesses, users and
As we’ve seen these changes impacting
clients. In those partnerships, we align the
our design process, we distilled some
vision of all stakeholders, so that we’re
rules of thumb for successfully designing
able to focus on what we’re building for
‘beyond the screen’.
the end-users.
their needs. We’ve seen the greatest value emerge from a tight partnership with our
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DESIGN MOMENTS
to drink some more water, or will a light
With the Internet of Things increasingly
indicator on our connected glass suffice?
permeating our lives, computing might
And when we politely ask our oven to turn
soon become truly ubiquitous. We are
on the grill, it might as well just answer
not just connected when we’re actively
‘got it’ instead of confirming its action
using our devices. Connected objects can
through its display.
trigger a series of interactions without our active engagement. Vice versa, our actions
When designing moments in which we interrupt the user with information, we should ask ourselves the following questions:
What kind of world will we live in if everything we do, touch or say might trigger an interaction with one of our connected devices?
►► Are
we pushing contextually relevant
information? ►► Is
the information we push clear (does the
user know what it means?), glanceable (can the user make sense of the information within a few seconds?) and actionable (can the user take action or request more information if wanted?)? ►► Does
our interaction blend in with the user’s
current environment? ►► What
information will we push, and what
information will the user more likely want to pull when needed?
(movements, voice, etc.) can influence the
FREE OUR MINDS, AND THE REST
behavior of the connected objects around
WILL FOLLOW
us. The moments in which interactions
What kind of world will we live in if
between our connected devices and us are
everything we do, touch or say might trig-
triggered and the way these triggers are
ger an interaction with one of our connect-
translated will be a crucial part of how we
ed devices? Won’t we be bothered all the
experience the Internet of Things.
time I hear you think? Not if we succeed in
As designers, we will need to define how we can translate specific triggers into a
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effectively designing the entire connected ecosystem.
natural and meaningful interaction for the
It will be our job to design technology in
user. The interfaces at our disposal for
such a way that it filters out the noise of
designing these interactions will extend far
over-information and delivers only what
beyond screens: do we need a notification
we personally need. Attention is a scarce
on our smartphone or watch to remind us
resource that we, designers, should treat
with respect. We should aim to free the minds of our users, allowing them to focus on the important things instead of staring down at screens all the time. And with the Internet of Things and Artificial Intelligence, we have exactly the right tools at our disposal to do so. Both technologies allow us to make, or at least prepare, more and more choices for users. Effectively doing so will
One example of designing systems instead of screens is Atomic Design, a way of designing we’re actively using at In The Pocket. In Atomic Design, you start designing from the very basic building blocks of your interface (atoms) and deliberately work your way towards more complex structures (molecules, organisms, screens).
CONCLUSION
reduce the effort needed for users to com-
Technological innovations, client de-
plete tasks, as a large part of the job will
mands and user needs create a bigger
already have been done for them.
and more complex design field. The user
When preparing or making choices for users, we should ask ourselves the following questions:
experience will increasingly be defined by what happens beyond screens. With more interfaces at our disposal to design digital products or services on, the specific inter-
►► Will it be clear why a certain choice has been
face through which the output is delivered
pro-actively made or prepared? It might be
will become just an ‘avatar’ for the service.
best to explain choices the first time(s) they are
Therefore, designing the service itself will
made.
be equally important in delivering the user
►► Are we giving users the right options to make
the system better, smarter and more personal? Doing so will increase the user experience and improve the quality of the algorithms used. DESIGN SYSTEMS, NOT SCREENS The products, moments and interactions we’ll be designing will soon become too big to fully design. We won’t be able to
experience. To successfully design for this everexpanding landscape, product designers will have to partner with strategists and clients to define and design a great service; interaction and visual designers will have to let go of ‘the screen’ as the only interface to deliver interactions through.
predict or design every single interaction,
With this in mind, we’ve improved our de-
decision and screen because every output
sign process in order to leave no possibility
will be defined by multiple parameters. We
or technology untouched.
will need to design systems and frame-
We’re ready for the future, and we’re ready
works to deliver our interactions. Design-
to take you there.
ing specific screens will be one of the final steps in the design process, rather than being one of the first.
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THE STATE OF RETAIL
Consumers are very selective of retailer apps they download. Amount of retailer apps installed on phone or tablet 0
1-3
4 OR MORE
80%
60%
40%
20%
All
16-24
25-34
35-44
45-54
55-64
93% of consumers only have 3 shopping apps or less. 62% don’t have any. Half of consumers aged between 16 and 34 use (one or more) shopping apps. 14
Source: In The Pocket State of Mobile field survey (n = 160; for each age group: n = 32 = 16 f + 16 m)
Shopping apps are infrequently used. Consumers typically only spend 5% of their mobile time in shopping apps. More than half of these apps are used once a month or less. People want shopping apps that are faster and more convenient than a mobile website, and offer a personalized or contextualized experience.
2% MULTIPLE TIMES PER DAY
33% WEEKLY
8% DAILY
1% DON’T KNOW
19%
24% MONTHLY
LESS THAN MONTHLY Source: Forrester “State of Mobile Apps For Retailers”, August 2015
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THE STATE OF RETAIL
People are getting familiar with mobile commerce. More than half of Belgian consumers have completed an e-commerce transaction entirely on mobile. 85% of those who have, have done so more than once. Half of consumers between 16 and 44 regularly buy (and pay for) things on their tablets and smartphones.
NEVER
ONCE
MULTIPLE TIMES
All
16-24
25-34
35-44
45-54
55-64
20%
16
40%
60%
80%
Source: In The Pocket State of Mobile field survey
M-commerce is growing rapidly, but there is a monetization gap. Share of onine retail browsing vs spending by platform
80%
44%
41%
monetization gap
60%
40%
85%
20%
59%
15%
% of time spent
% of spending DESKTOP
MOBILE
Mobile commerce is surging, growing 53% year-over-year (Q1 2015 vs. Q1 2014). It outpaces e-commerce growth (9%). M-commerce accounts for 15% of total e-commerce spending. Which is low, as nearly 60% of online retail browsing occurs on mobile. What’s holding users back? Sense of security, ease of navigation and browsing, and effort to fulfill all checkout details. Source: comScore “The M-Commerce Gap”, June 2015
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THE FUTURE OF RETAIL according to Jan Huysmans, bol.com E-commerce continues to soar. Its main propeller? Mobile. Who better to shine their light on these developments than the nice people at bol.com, the Benelux’ largest online retailer? We spoke to Jan Huysmans, Director Belgium.
THE FUTURE OF RETAIL
Internationally, mobile accounts for almost 60% of e-commerce browsing. Is this also the case for bol.com? Are there differences between product categories? We are seeing this evolution as well. We expect we will meet this share of mobile browsing in 2016 (in the Netherlands). In terms of differences between user behavior on mobile and desktop, we see this on two dimensions. First, we find that mobile is a great channel for orientation or discovery, whereas the desktop has a more functional nature: it’s where people make (or complete) the actual purchase. Second, mobile behavior varies between types of products, i.e. low- vs. high-involvement categories. Low-involvement or repeat purchases, such as baby products, animal nutrition, toys, ‌ work great on mobile. Visitors often complete the whole cycle on mobile. For more complex, and often more expensive products, like TV’s or washing machines, desktop is still the primary destination. The consideration phase is longer and requires more research, to which the desktop is better suited. Within mobile browsing, we see that tablet browsing has stagnated. Smartphone browsing accounts for the growth on mobile.
Despite accounting for 59% of e-commerce browsing, m-commerce only accounts for 15% of revenue. How do you experience this monetization gap? What efforts are being made? There is indeed a monetization gap in m-commerce. However, it is important to distinguish between tablets and smartphones. Tablet behavior is very much like desktop usage, with similar conversion rates. Smartphones are indeed lagging behind in terms of revenue. In part, this is because of the orientation phase wherein the smartphone is used. But mostly, it is about practicalities. Payments are often a hassle, although it is becoming less complex and less of a struggle. For instance, what Bancontact/Mister Cash is doing with their app is great, and can be a real game-changer in
Mobile is a great channel for orientation and discovery.
Belgium. The smaller screen size of smartphones proves difficult for getting information. Luckily, phones are getting bigger. And there is still the perception that paying with your phone is somehow less secure. But people are overcoming this threshold.
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Our research indicates that Belgians are getting familiar with m-commerce: half of smartphone users have completed and paid for a transaction on mobile. More and more of our clients do. And: we see that most people who have overcome the initial threshold, do so repeatedly. But most of the actual transactions still occur on desktop and tablet.
We want to create an open, API-powered platform.
For people who are still hesitant to pay using a mobile device, we normally offer the possibility of paying afterwards (up to 15 days after the purchase).
People aren’t big on shopping apps: 62% don’t have any, 31% only have 1-3. How is the bol.com app doing? What is the strategy behind it? Our users are very positive about the app: 4+ ratings don’t lie. We believe in creating added value for our clients. That can range from providing a centralized overview of orders, invoices, … to providing better product recommendations or a streamlined checkout flow. And we keep adding functionality over time. Usage is very functional: only 20% use the app for casual browsing, while 80% use it with a clear goal in mind. On the other hand: in Belgium, we see that a lot of new registrations stem from the app, so it is an acquisition means as well. Our strategy is to create a platform or ecosystem. We offer API’s for all of our services and product data: from the product range to the checkout process. This has spurred dozens of successful third-party apps, like gifting or niche products apps, that are complimentary to our own offering. It’s a win-win: our clients get more choice, and developers get an affiliate kick-back from our partner program.
Which international players are offering the best mobile experience? I just returned from a field trip to China, and Asia is really leading the pack. For Asian shoppers, online retail is mostly about mobile. Mobile is the primary destination there. Many Asian internet users have skipped the desktop entirely and immediately went on the internet using their smartphones. So retailers were quick to jump on the mobile bandwagon. Flipkart in India is even shutting down their desktop website.
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THE FUTURE OF RETAIL
It’s also interesting to see how messaging or social apps like WeChat are integrating e-commerce: from complete webstores to customer care, ordering taxi’s, booking hotels, etc. WeChat is ahead of WhatsApp or Facebook Messenger. Again, we believe in these new ecosystems for shoppers. Our open, API-driven approach allows us to be present wherever our audience is and wants to do (or initiate) their shopping.
Has the omnichannel customer journey become the standard? Is the journey always fragmented across channels? Not necessarily. We refer to the modern shopper as the “moment customer”. Depending on the moment, or type of product, he or she will choose a particular journey. That journey can be mono- or omnichannel. We have to empower them to choose for themselves, and offer a seamless and integrated experience. Whether it is pre- or post-purchase, online or offline (for example: offering pickup-at-store together with Albert Heijn).
Where lies the future of online shopping? The consumer has become very savvy: he or she knows what is possible, and has very high expectations. Consumers nowadays have grown accustomed to transparency, and want the best-in-class experience for all aspects of the customer journey: assortment, pricing, user experience, fulfilment and delivery, … Today, it is difficult for consumers to find a retailer that nails all of
Consumers want the best-in-class experience at all touchpoints.
these aspects. We believe it is up to bol.com to combine these strengths, and offer an experience that is delightful and bestin-class at each and every touchpoint of the cycle. To achieve this, we work together with other parties in the ecosystem.
With regards to technology: never before have we lived in such experimental times. Today’s start-up culture spurs many promising innovations for retail: VR, 3D printing, the Internet of Things, etc. Hence, we try to incorporate this culture into our company, and constantly look into (and learn from) these innovations. So that we can offer our clients an even better shopping experience.
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An end-to-end beacon solution by In The Pocket
PLATFORM
HARDWARE
SERVICES
A state-of-the-art SDK for
Selection, installation,
Integration with existing
iOS and Android. Easy campaigns & metrics
calibration and maintenance of beacons
systems. Development of special use cases
www.inthepocket.be/harald
What’s Next in Store for Beacon Tech?
Jan Deruyck Business Development Manager - In The Pocket
It has been two years since the iBeacon protocol was introduced, making it a perfect moment to take a step back and find out where the technology is headed. Though the technology is new, we can already provide some lessons learned. The big question, however: where is this all leading up to?
To prepare for the future one should understand the past THE CONTEXTUAL COMPUTING REVOLUTION. Apple’s iBeacon protocol introduced the era of the Internet of Things to the general public. Some savvy Eastern European guys
interfaces can be simplified or significantly reduced.
PUSH PLAY VS DATA PLAY
created tiny low-cost battery powered
Every company raises the same question:
Bluetooth devices called beacons that can
“How many customers will we be able to
be installed anywhere. The devices broad-
reach?” In other words: how many of our
cast a combination of three ID’s (UUID,
customers turn on Bluetooth and allow
Major and Minor) that allow connecting
location services. Today this group proves
to and identifying virtually every object on
to be a lot bigger overseas where they vary
the planet.
between 30 to 40%, whereas in Belgium
This location-based information opened up a new world to developers and companies that want to engage with users when it’s most relevant. User experience is lifted to a whole new level by surfacing the right
26
content at the right time, meaning user
we see an adoption rate of around 15 to 20%. While Bluetooth operability is more or less constant, apps that solve a real customer problem are more likely to be allowed access to location services.
Bluetooth still has a bad reputation for
can be used to enrich the CRM and ulti-
alleged battery drainage and privacy con-
mately translates into superior segmented
cerns are raised when apps start prompt-
audiences.
ing to enable location based services. To win the customer’s heart, it’s important to make the onboarding flow transparent and to advocate added value for the customer.
Major brands are now leveraging the rich contextual information that location provides to create highly-targeted audience segments, enabling them to strategically
Most cases focus on delivering offers and
target consumers at specific points in their
coupons via push notifications. The trick to
day, not just when they’re within close
a successful campaign is adding an aspect
proximity of a brand’s store or restaurant.
of unpredictability and capping the amount
FROM ADS TO SERVICE
of interactions. That way, you can truly delight the customer. Say, for example, that Joe and his family visit Brussels Airport for the first time. Thanks to beacon data, we know that it’s Joe’s first visit to the airport. You can now send Joe a push notification with a one-time guest pass for the VIP lounge. A single, relevant action can surprise and delight the customer and keep your brand top of mind. Creating value requires getting to know your customers. And that’s exactly what the first step in a beacon campaign should be. Measuring entry logs, dwell time and flow analytics between beacon groups contributes to huge amounts of data that
It might sound strange to anyone that has experience with setting up beacon campaigns, but the opt-in model is part of the success. Yes, the customer is required to download an app and actively opt-in but in that perceived weakness lies the beacon’s strength. Beacon technology forces companies to produce added value for the customer. For example: when a traveler returns from their holiday at Brussels Airport, it’s easy to detect their presence at the arrivals gate and a beacon can trigger in-app functionality to provide the conveyor belt info for luggage retrieval…zero taps required.
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OPERATIONAL VALUE The commercial value of beacon tech is huge, but the operational capabilities prove to be equally interesting. The raw data of beacon entries provides insights that can help business set up their venue. Dwell time analytics can help to create new floor plans. Equip machinery with beacons to remind staff to perform a status check or other maintenance services. Heat mapping enables better user flows and help secure
endpoints that will enable people to interact with more and more things. They call it the digital mesh and if one thing is for sure, backend developers will have a hell of a job to connect all these platforms. Various protocols will need to be intertwined to provide a continuous user experience from device to device. Web and app platforms will gather intelligence, and data scientists will have to create models to facilitate automated enterprise decisions.
busy events. From automating inventory
Another big revolution is the so-called
control to optimizing fleet management to
‘physical web’ that was launched with
tracking livestock, the technology provides
Google’s platform Eddystone. The
a cheaper and fruitful alternative to other
Eddystone beacons are able to broad-
often-expensive tools for the enterprise
cast a fixed URL that can be detected by
industry.
Chrome’s mobile browser, creating a path for appless beacon usage. This allows
IT’S THE BACKEND, STUPID! Beacon technology is facilitating IoT, but it’s just the tip of the iceberg. The devic-
tomers that have not yet downloaded the organization’s app.
es can be equipped with more than just
With all the major players aboard, think of
Bluetooth chips. Adding Wi-Fi and network
Google Eddystone, and many new pioneers
capabilities are no brainers. The next wave
entering the market these are very inter-
of sensors such as acceleration and tem-
esting times. The contextual era has just
perature will generate even more data.
kicked off and it’s very exciting to see what
Gartner predicts more and more devices will be interconnected providing multiple
28
organizations to reach or understand cus-
will happen next.
What do you need for location-based beacon messaging? Bluetooth LE
beacon
+ app with SDK
+user is beacon-active
cloud-based beacon & campaign management system
29
THE STATE OF BEACONS
Beacon-active users need to have Bluetooth and location services enabled. 2%
Do you have Bluetooth on?
29%
YES NO
69%
DON’T KNOW
4%
Do you allow location services when asked by an app?
9%
23%
18%
ALWAYS USUALLY
NEVER
SOMETIMES
DON’T KNOW
45% 72% of Belgians have location-services enabled for some apps. 90% of 16-34.
30
Source: In The Pocket State of Mobile Field survey
And notifications to interact. 4%
4%
6%
Do you allow notifications when asked by an app?
ALWAYS
28%
58%
USUALLY
NEVER
SOMETIMES
DON’T KNOW
People are getting tired of notifications. Almost 60% don’t allow app notifications.
Results from the field.
15%
10-20% 10-15%
Average percentage of beacon-active users among smartphone users in Belgium
opening rates of microlocation-based notifications
conversion rates of context-aware offers
Sources: Experimental setups by In The Pocket for De Persgroep at Autosalon, Plopsaland, Boekenbeurs, and for large cinema-group and FMCG-player
31
THE EVE O TECHNOL Thomas Mons Software Development Manager - In The Pocket
OF A NEW LOGY ERA
Not that long ago, every web developer had to deal with the “IE6 factor� before completing their website. The term referred to the additional work required to support the infamous Internet Explorer 6, which often came near the end of a project and just as often meant making compromises on design or user experience. 34
The browser came out in 2001, was shipped with Windows XP and quickly began dominating the browser market. It had a complete lack of support for IETF standards, was notorious for its security leaks and Microsoft stopped innovating the browser for five whole years. It took another five before its market share was small enough to ignore it and drop support. A NEW DAWN, A NEW DAY Today, all major browsers are self-updat-
BLURRED LINES
ing and support the cutting edge of web
The mobile space hasn’t been resting on
technology, even before the first official
its laurels either: we can create apps for
standard is released. In that sense it
phone, tablets, phablets, watches, TVs and
should be no surprise that Microsoft chose
various setup boxes. Providing real-time,
to name its new browser “Edge”.
context-relevant information or function-
With the widespread support for recent additions like the canvas element, video element, webGL, web sockets, CSS anima-
alities in an unobtrusive way is key for any great app. But making sure your app and its content are found is just as important.
tions/transitions, web storage, indexedDB
Recent announcements from Apple and
and ES 6 (the new javascript version), we
Google included possibilities for your app
can create entire games, offline appli-
to index its contents and to use web links
cations, drawing tools, word processors,
to open your app. This further blurs the
real-time dashboards, you name it.
line between what is considered to be
The possibilities increase every day, but they come at a cost: while developing a website is more or less a commodity, developing a web app certainly isn’t. In fact,
an “app” and what is considered to be a website.
ACTION, REACTION
developing a web application is turning out
Slowly but surely, the way we interact with
to have more and more in common with
digital applications is changing as well.
developing an app.
Instead of actively looking for information,
35
we are often found reacting to events. Google Now informs us of any traffic jams around the time we usually leave the office, the Recycle app reminds us when we need to take out the trash, another app
and rapidly evolving, scalable cloud platforms/technologies that are made with IoT in mind.
HTTP, THE LEGACY
informs us of any upcoming rain showers
At the center of it all: HTTP, a protocol
15 minutes in advance, De Morgen imme-
that has changed very little since the
diately notifies us when important news
early days of the World Wide Web and
breaks, you get the gist. What we’re seeing
heavily relies on a request-response model
today is only the start: event sources will
which does not allow the server to push
grow, and so will the possibilities to auto-
real-time updates to a client without the
matically react on events.
client requesting them.
SUPPORTING THE REACTIVE USER
At least, not until very recently: in May
To better support these real-time aspects,
2015, the IETF published HTTP/2, an
reactive frameworks (Rx, react.js) were in-
update of the HTTP spec that optimizes
troduced and are quickly gaining popular-
the way HTTP handles TCP connections
ity. The basic idea of these frameworks is
and allows the server to push data to the
typically to treat data as a series of events
client. HTTP/2 will allow us to deliver
instead of a specific state, which greatly
data faster and more efficiently, without
simplifies development.
introducing too much complexity.
The same trend is also taking place in
And the best thing? Only 5 months after
software architecture: reactive architec-
its publication, all major webservers have
tures, created using low-latency mes-
support for it, which opens the door for a
sage-based queues (RabbitMQ, MQTT,
widespread adaptation.
WebSockets, Webhooks, push notifications,..) are quickly gaining popularity.
THERE’S A PATTERN HERE
The possibilities are endless, but especial-
Digital technologies and platforms are
ly the pace at which technology and plat-
evolving rapidly towards the converging
forms are emerging is without precedence.
reality of a connected world. It’s a perfect
BUILDING THE INTERNET OF THINGS Today we have standardized consumer platforms (HomeKit, HealthKit, ), low-energy wireless data connections (Bluetooth Smart, Zigbee, Z-Wave), widespread IPv6 support, low-energy internet connections (6LoWPAN, Sigfox), 4G mobile connections
36
storm of innovation in web, software and devices. The Internet of Things is speeding from something that is technically feasible to a commodity. We’re on the cusp of a new technology era that will dramatically change the way we use digital solutions and that will impact all businesses.
Work at In The Pocket Switch to the fast lane in digital and join our growing team in Ghent. We’re looking for people in sales, project management, accounting, development and testing.
www.inthepocket.be/careers
THE STATE OF BANKING
How many people of different ages use banking apps and how often do they use them? DAILY
WEEKLY
MONTHLY TOTAL 75%
TOTAL 66%
TOTAL 53% 45%
TOTAL 44%
40%
TOTAL 34%
35%
30% 25% 20%
15%
10%
5%
16-24
54% 65% 80% 38
25-34
35-44
45-54
55-64
of people use mobile apps for banking of clients between 25 and 54 use mobile apps for banking of mobile banking users between 25 and 54 use those apps weekly or more frequently Source: In The Pocket State of Mobile field survey
How regularly do people use banking apps and banking websites? DAILY
WEEKLY
LESS OFTEN
Apps
Desktop
20%
40%
60%
80%
For daily banking, apps have surpassed desktop.
Which channel do clients use more frequently? MOBILE > DESKTOP
EQUALLY FREQUENT
DESKTOP > MOBILE
ALL 16-24 25-34 35-44 45-54 55-64 20%
40%
60%
80%
Consumers aged 25 to 34 already use their banking app(s) more frequently than laptop/desktop. Sources: In The Pocket State of Mobile field survey
39
iOS 9
SMARTER, DEEPER, BROADER, STRONGER Kenny Deriemaeker Senior iOS Developer - In The Pocket
It has been a solid year for Apple. iOS 8 opened up a lot of doors for developers and many of them used the opportunity to make their apps more connected, more useful and more powerful. This year, Apple is building upon those improvements to put even more power into the hands of iOS users, while introducing new hardware that pushes the platform forward into new areas of our lives — and into the post-PC future. MORE THAN MOBILE
42
APPLE WATCH
APPLE TV
Though it received good reviews, the Apple
With the new Apple TV, iOS is moving into
Watch has yet to prove itself as a platform
our living rooms and bringing the App Store
for third-party apps. One of the reasons
with it. We expect Apple TV to be a great
has been its operating system, which was
platform for apps, though not necessarily
extremely limited when the device first
the kind of apps you will find on your phone
launched last summer. WatchOS 2 greatly
and tablet.
expands the capabilities of Watch apps
At the center of the Apple TV experience is
and removes much of the reliance on the
Siri, who has quietly been getting smarter for
iPhone. This will allow third-party apps to
years and is now quite impressive — especial-
run more smoothly and have richer, more
ly when she has a domain-specific context
dynamic interfaces.
(like television and movies) to work from.
SMART AND WELL-CONNECTED The big focus of iOS 9 is intelligence. iOS started keeping track of your usage patterns, analyzes your data and habits and tries to give you intelligent recommendations accordingly. This smart, AI-driven assistance, which Apple calls Proactive Suggestions, will notice, for example, that you use a certain news or Twitter app first thing every morning and put it on your lock screen by the time you wake up.
and traditional PCs to trucks — saying that while trucks would continue to be useful, most people just need a great car. With the iPad Pro and iOS 9, Apple is keeping this post-PC dream alive in a big way and making a significant push into the enterprise and prosumer market. Split-screen multitasking and pressuresensitive stylus input allow for richer interactions with apps, and present new use cases many existing apps can take advantage of. Tablet apps are now expected to be as versatile and powerful as their Mac
When you receive a call from an unfamiliar
or PC equivalents, especially when running
number, but the person calling once sent
on a laptop-sized screen.
you an e-mail containing their phone number, iOS will match up that information and display the caller’s name.
Similarly, the iPhone is getting powerful new input capabilities with 3D Touch. By literally adding depth to the fundamen-
KNOWLEDGE IS POWER
tal input method of the smartphone, it
Intelligence and knowledge go hand in
gives users a way to interact with apps
hand. In this particular case, knowledge
with more subtlety and precision. Some
pertains to what is going on inside our
developers will use 3D Touch to add more
apps. Apps can now expose their data to
functionality to their apps and increase
the outside world through new Search
complexity. Others will fully embrace the
APIs and Deep Linking, which means
feature and incorporate it into their apps
users can quickly search for information
from the beginning, allowing them to
anywhere in your app without having
greatly simplify their UI.
to launch it — and when they find that information they can jump straight to it
CONCLUSION
with a single tap, or share it online using a
With iOS 9, the new Apple TV, WatchOS 2
regular web URL.
and the iPad Pro, Apple is confidently mov-
Apple is trying to combine the best part of
ing its mobile ecosystem into every corner
the app world with those of the web world,
of our lives. Building upon the design over-
and we applaud their ambition.
haul of iOS 7 and the ambitious software improvements of iOS 8, the ninth version of
OUR POST-PC FUTURE Steve Jobs once compared tablets to cars
Apple’s mobile operating system wants to be everywhere, know everything and help us get anything done.
43
The Future is
Fragmented Wesley Huyghe Senior Android Developer - In The Pocket
Android’s reputation is that of a scattered framework. With more than 20,000 different devices, over 1,000 device manufacturers and Android 2.3 (which was released in the 3rd quarter of 2011) still lingering around, we can’t ignore the fact that Android is highly fragmented. VARIETY IS THE SPICE OF LIFE Though this may sound like a weakness, it is actually what sets Android apart from Apple: it gives the user a choice. Not everyone wants the same device with the same hefty price tag. Some users can only afford a $100 phone, others need a dual sim, some want a device that is durable and waterproof, whereas others just need to have that 6” phone with the latest cutting edge technologies. What we’re saying is: there is a phone out there for everyone, and every user’s need is fulfilled within the Android ecosystem.
For most developers it may seem like a daunting task to support all of these different devices. A few years ago, this was true enough and backwards compatibility was a huge hassle. Thankfully though, Google has made a big effort to resolve fragmentation for developers. There are various support and compatibility libraries that make a big part of new frameworks and enhancements available on older platforms, even for Android 2.1. What is also nice about Android is that it doesn’t need an OS update to receive new frameworks and APIs. With Google Play Services, Google has successfully
RISE OF THE DEVICES
created a backdoor into Android to update
In the last year there has been a rise in
older devices. Throughout the year, users
Android Wear smart watches and Android
receive new updates for Google Play
TVs for the user to choose from. In 2016,
Services like the recent Google Vision API,
Android will also find its way to cars and
Google Nearby and Google Fit, and it al-
other connected environments. More
lows us, developers, to give users on older
and more new brands are jumping on the
devices a fresh experience as well.
open platform, and more fragmentation is
PERFORMANCE IS KEY
bound to happen.
An important challenge for Android is performance. Developing apps is one thing;
NO UNITY, NO PROBLEM 46
developing apps that run smoothly on
cheaper devices with budget hardware is
release is battery performance. With the
another. It is important for developers to
introduction of doze mode and standby
optimize their code as much as possible
mode, more background functions will be
to ensure that they require as little as
suppressed if an app, or your device, hasn’t
possible of the device’s capacity.
been used for a while. Recent tests show
SIZE DOESN’T MATTER Although one would think that screen
doubled battery life compared to Android Lollipop.
fragmentation is a huge challenge for
Other great additions that Marshmallow
developers it really isn’t. Android has
brings to Android are the automatic app
always had satisfactory support for differ-
backup (simplifying app data synching)
ent screen sizes, and Android developers
and Android Pay, Google’s Apple Pay
have always been used to dealing with the
competitor.
matter. If anything, it’s more of a challenge for de-
And let’s not forget about the Internet of
sign to create a user interface that works
Things. When Google acquired Nest, it be-
on all screen sizes. As our screens keep
came clear that Google wanted to explore
getting bigger, responsive apps (designs
new territories. This year, the company
that adapt to any screen) have become the
made another bold step towards the con-
standard.
nected devices space by announcing Brillo, a framework that extends the Android
WHAT ELSE IS NEW? This quarter, Android Marshmallow was released with some exciting new features. The long awaited app permissions received a big makeover. They give the user more flexibility in allowing or revoking access to phone features even after an app has been installed.
ecosystem to connected devices. With the speed that the Internet of Things is evolving and the omnipresence of Android devices, this could be something really big. So yes, Android is fragmented. With Brillo it might just become a bit more fragmented. But that is not a bad thing. It’s an adequate
A recurrent improvement for
response to the diversity of our world.
every Android
47
THE STATE OF MOBILE PLATFORMS
iOS users are more engaged with apps. Share of engagement in popular apps (BE)
41%
59%
iOS users open an app 1.27 times more often than that same app on Android. But an app session on Android lasts 1.55 times longer.
Compared to the international OS market share?
Android iOS Windows
51,4%
44,2%
Others
2,9% 1,4%
48
Sources: Usage statistics of selection of In The Pocket apps for Q3 2015, representing over 1.3 mio users. U.S. Smartphone Subscriber Market Share, July 2015 , comScore
Share of Android vs. iOS app downloads. In Belgium, Android has finally closed the gap with iOS. IOS
ANDROID
80%
60% 52% 40%
20%
Q3 ‘11
Q4 ‘11
Q1 ‘12
Q2 ‘12
Q3 ‘12
Q4 ‘12
Q1 ‘13
Q2 ‘13
Q3 ‘13
Q4 ‘13
Q1 ‘14
Q2 ‘14
Q3 ‘14
Q4 ‘14
Q1 ‘15
Q2 ‘15
Q3 ‘15
And internationally? App Downloads by Store
App Revenue by Store
+85% 200
+70%
150
100
50
available on the
iOS App Store
Get it on
Google play
available on the
iOS App Store
Get it on
Google play
Google Play download growth is mostly driven by smartphone ownership growth in emerging markets and success of budget Android devices. Sources: In The Pocket published apps, representing over 1.75 mio. downloads yearly / App Annie Index Market Q2 ‘15.
49
8.1 8.1 .2 .3
7.1.2
8.3
8.4.1
iOS8 79,2% 8.4
New OS features or functionality can be leveraged more quickly on iOS.
4.2.2
THE STATE OF MOBILE PLATFORMS
Version control. Which versions to support?
ANDROID 5 27,7%
4.4.2
5.0.2
.1
5.0
4.4
.4
5.0
50
Sources: Snapshot of HLN-users between 01/09/2015 - 15/09/2015. Latest version: iOS 8.4.1 (as iOS9 only released Sep 16) / Android 5.1.1 (as Android M only released Oct 05).
Adoption speed of new major iOS/Android releases. Percentage of BE users that have updated 6 months after a major release.
iOS 7
100%
86%
80%
iOS 8 71%
60% ANDROID
40%
4.3
5.0
4.4
23%
20%
ANDROID
ANDROID
18%
14%
Feb 2014
Apr 2014
May 2014
Apr 2015
Jun 2015
Most popular smartphone families in Belgium. iPhone
50.4% Samsung Galaxy S
12.12%
Samsung Galaxy S Mini Huawei Ascend
4.39%
Sony Xperia
1.92%
Nokia Lumia
1.23%
OnePlus
1.20%
Google Nexus
0.96%
2.23%
HTC One
0.68%
Motorola Moto
0.54%
Sources: Sampled from 92.874 - 226.674 users of HLN app, measured during one week, counting from 6 months after release date / Device statistics of selection of ITP apps for Q3 2015, representing over 200 devices and 1.2 mio smartphone users. 51
THE TURBULENT LIFE
Dries De Smet Windows Competence Lead - In The Pocket
E OF THE WINDOWS OS
It has been a bumpy ride for Microsoft since the release of Windows 8. New Windows operating systems were usually received with cult-like enthusiasm, but when Windows 8 came out user reactions were polarized:
YOU EITHER LOVED IT OR ABSOLUTELY HATED IT. And thus started Microsoft’s journey to regain its footing. They made an extreme overhaul of the
tory adoption rate of Windows 8.1 and a
Windows OS by introducing a fully new
minimization of the fragmentation we see
Start menu and a ‘Windows Store’ where
on other platforms.
developers could distribute their own apps. There was one big problem however: the learning curve for these new items was enormous and people stayed on the fence.
54
SEVEN, EIGHT...TEN Now, in 2015, Windows 10 was released. Windows 10 can be boiled down to ‘the return of the Start Menu’ and its reception
A year later, Windows 8.1 was introduced.
was rather pleasing. In the 30 days after
It ushered in new features and tweaks to
the release date, Windows 10 was doing
make the OS more user-friendly. Remark-
an even better job than Windows 8 or
ably, the update was free to all Windows
Windows 7 were in their respective first
8 owners. This was a precedent for
months. One of the main causes is that
Microsoft as they had never released free
again, the Windows 10 upgrade was free
updates before. The effect was a satisfac-
for Windows 8.1, 8.0 and 7 users.
THE WINDOWS STORE
your work on a Windows laptop, and con-
The Windows Store was supposed to help
tinue on the go on your tablet or phone.
Microsoft stay toe-to-toe with the competition, but things didn’t quite work out that way. When people talk about the Windows Store, they mostly lament the Windows Store’s lack of apps, both on phone and desktop. In any case, it’s clear that the app ecosystem is nowhere near that of iOS and Android. This can largely be explained by the Windows 8 style guide code named ‘Metro’, which is radically different from other mobile platform style guides. To develop an app that really incorporates the Windows style, one needs to fully rethink and redesign the flow of the app. Few app developers bothered to do so.
HOPE FOR THE FUTURE: A NEW BILL GATES Early 2014, Satya Nadella became Microsoft’s new CEO, succeeding the rather unpopular Steve Balmer. This change created a ripple effect that was felt throughout the company.
WINDOWS ON IOT The launch of Windows 10 came with a rather surprising announcement: Windows 10 will be able to run on Raspberry Pi 2. It is a clever move, showing Microsoft’s interest in dabbling in the Internet of Things. The fact that Microsoft is giving the OS away for free proves that they mean business. Microsoft somewhat lagged behind with the Windows Phone, PDAs and tablets and it seems that they are determined not to miss this bus. Together with the futuristic Hololens, they are fully committed to staking their claim in new technologies.
AND WHAT ABOUT THE PHONE? Microsoft has never really been able to make Windows the third big mobile platform. It has become an iOS and Android world. Only app publishers that want full reach, will invest in Windows Phone development. It’s doubtful that Microsoft
While exclusive Windows support used to
will ever achieve this breakthrough on
be the main goal for many Microsoft prod-
mobile.
ucts, we now see that the support of other platforms like iOS and Android is gaining the same level of importance.
But there’s plenty of reason to stay excited about Nadella’s company. With the Hololens and the recently launched
This way of thinking also converges with
Surface Book, Microsoft has regained
a ‘cloud-centric’ approach for all product
its reputation as an ambitious innovator.
use cases. Microsoft is driving their focus
We’re excited to see how they are going
towards ‘OneDrive’ to fuel continuity for
to tackle the connected devices space.
users between all products, Microsoft or otherwise. The philosophy is that you start
55
THE STATE OF MOBILE USAGE
Mobile has surpassed desktop usage.
+37%
SINCE 2010
DESKTOP 44%
+394% SINCE 2010
SMARTPHONES 42%
TABLETS 14%
We spend 157% more time on digital devices as compared to 2010.
People spend over 3.5 hours per day on mobile devices. Minutes per day spent on mobile
158
Q1 ‘13
20%
+35%
162
Q2 ‘14
14%
220
Q2 ‘15
10%
-50%
MOBILE BROWSER
APPS
The mobile browser has been sidelined. 56
Sources: The Global Mobile Report, comScore July 2015 + Digital Future in Focus, comScore March 2015
90% of mobile time is in apps.
FACEBOOK 19% MESSAGING/SOCIAL 12% +3%
CHROME 4% YOUTUBE 3% SAFARI 6%
OTHERS 10%
220 minutes
NEWS 2%
ENTERTAINMENT 17%
PRODUCTIVITY 4%
+12%
UTILITIES 8%
GAMING 15% - 17%
APPS
BROWSER
Facebook has replaced your mobile browser as your window on the world. 42% of app time occurs in most used app. 75% of app usage occurs in top 4 apps. 1/3 of mobile time is spent in social/messaging apps. But 70% of time in social apps is spent consuming media (videos, articles, ...).
Source: Flurry Analytics, June 2015
57
Step by Step Towards Connected Health Christophe Jauquet Business Developer mHealth - In The Pocket
Mobile disrupts industries, often leaving companies struggling to conserve their current business model. It is safe to say that mobile vastly impacted healthcare. Eric Topol, writer of the bestseller ‘The patient will see you now’, even goes as far as calling the mobile revolution in healthcare the “most fundamental challenge in the history of medicine.” A POSITIVE OUTLOOK Nevertheless, the overall sentiment of the
Reinhart Maertens, CIO of Antwerp University Hospital.
healthcare industry towards mobile and
Healthcare institutions have already
IoT is more optimistic than in any other
started noticing this rapid turnaround, and
industry. Wearables and sensors can fa-
they are investing heavily in two primary
cilitate data that allow health consumers
opportunities: better health services and
to engage in their own health like never
the proximity of care.
before. The smartphone will become a personal health dashboard.
BETTER HEALTH SERVICES
FOLLOW THE LEADER
Mobile and IoT offer a broad range of
Driven by retail, mHealth will quickly have an impact on how we manage health. “Companies like Facebook, Apple, Google and others will force healthcare institutions to rapidly adopt mHealth, as these giants are offering patients mobile and IoT technology. It is an experience the patients will enforce on their care institutions,” says
60
untapped opportunities in servicing health consumers. “Mobile technologies will allow health insurance funds to optimize public service commitment through better accessibility and an even higher level of health services,” predicts Steve De Veirman, Chief Digital Officer for the biggest health insurance fund in Belgium: CM.
This sentiment is shared by Luc Adriaens-
through mHealth services is useful for
sens, General Manager at the Belgian
every stakeholder in the healthcare pro-
Pharmaceutical Association: “Very soon,
cess (patients & professionals), as it will
pharmacies will have the tools to follow up
support them to make better decisions at
on patients more closely. It will allow phar-
the required time in the care process.”
macists to empower patients and raise consciousness in therapeutic adherence for example.”
PROXIMITY OF CARE Mobility, communication and the availability of more relevant data pave the way for closer health management. “Because
Companies like Facebook, Apple, Google and others will force healthcare institutions to rapidly adopt mHealth, as these giants are offering patients mobile and IoT technology. It is an experience the patients will enforce on their care institutions Reinhart Maertens, CIO of Antwerp University Hospital
of mHealth, medical records are becoming tools for continuous communication between the caregiver and the patient,” says Pieter Baeyaert, Innovation Manager at Corilus & HealthConnect. “IoT and mobile are key factors in creating efficient, high quality patient health records that can be managed by both caregivers and patients at any given time and place.” Steve De Veirman explains his focus at CM, “As health management is mostly done in patients’ private environment, health insurance funds are creating a digital closeness for information and care through mHealth.”
REMOTE FOLLOW-UP Proximity of care facilitated by technology also offers new opportunities to hospitals as inhospital followup time can be significantly reduced. Reinhart Maertens elaborates, “Remote patient monitoring is one of the biggest benefits to be achieved with mobile and IoT. The care team will be perfectly capable of monitoring the patient 24/7 at any location
Reinhart Maertens concurs as well, “Up todate, contextual information gathered
while it allows the patient to contact their care team at any time during the follow up.”
61
AN ALLY FOR THE PHARMACEUTICAL INDUSTRY mHealth also provides added value for the pharmaceutical industry. Rather than being an extra channel to reach certain health stakeholders, it can actively be used to enrich pharmaceutical products with new health services that benefit both stakeholders and patients. According to Erik Janssen, Head of New Patient Value Mission at UCB Pharma, “New technologies are providing opportunities for social connection, knowledge accumulation and continuous access to data in healthcare. The next step for pharma is to ensure that we optimally leverage these advances to better understand the specifics of severe diseases. That way we can deliver lasting value to patients and
Companies or institutions shouldn’t worry about offering an entire solution to a care pathway. It is better to answer a clear need of a part of that pathway, and have it ‘connect’ with other parts later on
their families.”
TIME TO TAKE THE FIRST STEPS
62
Companies or institutions shouldn’t worry
The positive sentiment in healthcare has
about offering an entire solution to a care
clearly led to a rapid inception of mHealth
pathway. It is better to answer a clear
initiatives. Many seem to have understood
need of a part of that pathway, and have it
that while further regulation is on its way,
‘connect’ with other parts (later on). There
it is important to take some safe, small
is not one other industry in which interop-
steps already now.
erability will have such a huge impact.
These innovators feel reassured that data
Healthcare stakeholders are acknowledg-
safety and privacy are manageable. And as
ing the direction in which health manage-
healthcare in Europe is mainly organized at
ment is moving. That’s why they are taking
a local level, it is understood that mHealth
the small first steps now. Because only
services should not only come from inter-
when moving step by step, will it be possi-
national or existing solutions to answer
ble to offer what the patient will demand
these local needs.
as soon as tomorrow: Connected health.
Mobile and the Internet of Things will dramatically change health management Partner up with a digital agency that understands healthcare. Get your products and services ready for the age of mHealth. www.inthepocket.be/mhealth
THE STATE OF WEARABLES
How many people do fitness & health tracking? SMARTWATCH
1%
NO, BUT I MIGHT
13%
NO, DON’T SEE WHY
54%
SMARTPHONE
24%
FITNESS-BAND
8%
1 in 3 does fitness & health tracking. Over 40% of millennials (16-34). Almost 1 out of 10 Belgians has a wearable (fitness band or smartwatch).
The wearables market is growing explosively.
+223%
million units sold
18.1M
20
1
15
2
10
3
5.6M 5
4 5 Q2 ‘2014
24,3% 19,9% 17,1% 3,9% 3,3%
Fitbit Apple Xiaomi Garmin Samsung
Q2 ‘2015
Apple becomes the world-wide number two within the year. 64
Sources: In The Pocket State of Mobile field survey / IDC Worldwide Quarterly Wearable Device Tracker, August 2015
We finally have the Apple Watch, the App Store has been readying up. Percentage of top 100 apps that have Watch apps Belgium
United States 21%
20%
17% 15%
15% 12%
Free
13%
Paid
9%
10%
Top-grossing
5%
Which apps should we expect? Percentage of top 100 apps (per category) that have Watch apps HEALTH & FITNESS
29,3%
PRODUCTIVITY
20,3%
WEATHER
19,7%
TRAVEL
19,3%
FINANCE
17,7%
LIFESTYLE
16,7%
NEWS
15%
SPORTS
14%
NAVIGATION
12,7%
Sources: In The Pocket analysis of Apple App Store 65
The Internet of Things
ALL SET FOR LIVING UP TO THE HYPE Nick De Cooman Device-to-Device Engineer - In The Pocket
The Internet of Things, the term used to describe the digitization of the physical world, has gathered a lot of buzz over the last couple of months. At the heart of the IoT are physical devices — from refrigerators to traffic lights— connected to the cloud, which enables them to be tracked and controlled from anywhere. Soon, anything that can be connected will be connected. By 2020, Verizon estimates the number of connected devices to rise to a stunning 5.4 billion. THE FIRST WAVE Today, a first batch of popular products has already adopted the IoT strategy successfully. Smart home devices like the Nest Thermostat by Google and Philips Hue provide significant value by enabling
smart devices. Standardization is essential to make sure that all connected devices can interact with one another. George Yianni from Philips Hue already stated it during his keynote at last year’s State of Mobile: build platforms, not products.
remote access and control. Both platforms
Both Apple and Google are trying to win
recently teamed up as part of the “Works
the standardization race and announced a
with Nest” program in a bid to link up the
unified, scalable solution for IoT. Apple’s
smart home.
HomeKit platform enables devices to be deeply integrated in iOS devices. Exact
BUILD PLATFORMS, NOT PRODUCTS It is clear that part of the success of IoT relies on the interoperability between
68
details are still vague, but it is clear that exciting announcements are to be expected in the next few months.
Google, on the other hand, has already shown its hand at this year’s I/O Conference by announcing Brillo, a minimal operating system for IoT devices. Together with Brillo comes Weave, a protocol that will let Brillo devices interact with one another. Combine this with the Nest platform and it becomes clear that Google is working on a complete solution for the IoT ecosystem.
A BRAVE NEW WORLD Having things like alarm systems, asset trackers, and traffic lights connected to the internet will mean a significant shift in the way the world around us is managed. For instance, by monitoring their operations in real-time, factories will be able to increase productivity, reduce costs and proactively maintain assets. Verticals like
THERE’S MORE
agriculture will change the way they oper-
Smart home devices connected through
Not to mention the new business oppor-
our home Wi-Fi network are one aspect of
tunities that will emerge, mostly making
the IoT, but there are plenty of applications
products evolve into services.
to be conquered. From (self-driving) cars to billboards and worksite machinery; having them connected to the cloud will unleash a whole new set of possibilities.
ate by solely acting based on sensor data.
With new opportunities also come new challenges. Not only will the massive amount of data gathered by billions of devices need to be stored and processed, it
A MAJOR HURDLE
will also require protection from unauthor-
However, there is a major obstacle that
issues may arise, making it absolutely
prevents us from having many connected
essential to find the right balance between
devices today: the lack of an affordable
data sharing and data protection.
ized access and security breaches. Privacy
and scalable way to get access to the cloud. Existing communication networks based on 3G or 4G are not well suited as they are expensive, impose a high energy consumption and are dependent on national telecom providers.
TO WRAP THINGS UP To conclude, the Internet of Things has the potential to fundamentally shift the way we interact with our surroundings. The benefits for both businesses and consum-
Luckily, some new kids around the block
ers are huge, creating new and exciting
are specifically targeting the IoT. Sigfox
opportunities. The past year has set the
and LoRa are known to provide cheap cel-
tone as fundamental building blocks
lular access, allowing small data packets
were announced to empower an entire
to be sent at a small cost without consum-
new set of smart things. These devices
ing a lot of battery power. Worldwide cov-
will not only be deeply integrated in our
erage for both networks is growing rapidly
smartphone, they will also be connected
and Belgium is set to be covered in 2016.
regardless of their location and purpose.
69
THROUGH THE LOOKING GLASS: THE DAWN OF VIRTUAL & AUGMENTED REALITY
Kenny Deriemaeker iOS Developer - In The Pocket
Imagine putting on a pair of glasses and suddenly finding yourself in the company of a friend, family member or colleague. You see every subtle movement they make in 3D space as if they were sitting right in front of you. You hear their voice clearly and perfectly positioned in space. You extend your hand and touch the hand of someone five hundred miles away. Even though your brain knows that none of
devices are, their common interaction
what you are seeing or hearing is real, you
paradigm is that we get information from
feel a sense of presence that is complete-
them by looking at a glass rectangle, and
ly convincing. Then, you grab the other
provide information to them by manipulat-
person’s hand and jump into a portal to an
ing that rectangle with our fingers.
alien universe. If this sounds like science fiction, you haven’t been keeping up with the news lately.
a fundamentally and meaningfully different medium: they let us step beyond the
BEYOND SCREENS
glass rectangles to find ourselves inside
Our current smartphones, tablets, smart-
content and digital workspaces.
watches, laptops, televisions, e-readers and fitness trackers have one thing in common: a screen. Diverse as these connected
72
Virtual Reality and Augmented Reality are
our apps, social networks, entertainment
The difference between VR and AR is subtle, but important. The former wants to transport us to another reality by replac-
ing our sensory inputs with virtual ones.
work, play, communicate and create with
The latter wants to add to our perceptions
each other in the coming two to five years.
by overlaying virtual elements onto the
We are not alone: Facebook, Microsoft,
real world.
Samsung, Sony and Google are all building
Imagine working on a new product and being able to see it clear as day on your desk, responding to your touch and instantly transforming itself as you tweak its design on the computer — weeks or months before it enters manufacturing.
HAVEN’T WE TRIED THIS BEFORE? VR had a false start in the nineties — a time when enthusiasm was cheap but processing power was expensive. Since then, the mobile revolution has fixed the hardware problem by commoditizing small, high-quality screens and sensor technology. Graphics processing power has grown exponentially, driven by PC and console gaming. 3D animation, games and connected virtual environments have matured into a well-understood and profitable medium. And wireless movement tracking, haptics and voice recognition have advanced enough to let us interact with technology naturally and effortlessly. It has taken almost twenty years for technology, infrastructure and content to catch up to those early visions, but now everything is in place for Virtual Reality to break into the mass market. Augmented Reality is a few more years away from being consumer-ready, but will be coming soon enough.
or funding high-profile products in this space. Apple is conspicuous in its absence, but you can expect them too to be working hard behind the scenes (on an augmented reality windscreen for the Apple Car, perhaps?)
A NEW FRONTIER Even though VR will make its impact in gaming and entertainment first, we would be mistaken to dismiss it as merely a gimmick. The truly disruptive applications for VR will involve co-presence, communication, exploration and creativity. VR may be the first medium to bring face-to-face human intimacy into our online interactions — allowing us to watch a movie or a sports game, explore virtual worlds, share memories, sculpt, paint, draw or discuss this quarter’s financial results together, no matter where our companions are in the physical world. It’s a whole new area of possibility for platform builders, app developers and content creators. The screens-and-fingertips paradigm has served us very well and will continue to do so for many years to come. But as Virtual and Augmented Reality continue to improve and become mainstream in the coming years, we will start seeing compelling new classes of applications and experiences that were just not possible
We believe these technologies have the
on a flat screen. We can hardly wait, how
potential to revolutionize the way we
about you?
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THE STATE OF MEDIA
Are people willing to pay for digital access to content?
24%
10%
SERIES, FILMS & TV 34% 35% of ‘16-44’ is very willing to pay for digital access to series, films, TV, …
66%
APPS & IN-APP PURCHASES 24%
80% of ‘45-64’ is not at all (or hardly) willing to pay. Digital set-top TV & VOD (Telenet, Proximus, etc.) not included.
15%
9%
Only 1 in 4 of Belgians is willing to pay for apps (or in-app purchases). It’s a generational thing: 1 in 3 of those aged below 35 buys app, less than 1 in 5 of those aged above.
76%
“People don’t want to pay for digital content.” Turns out most people really don’t. But many do. Unwillingness to pay for digital content is a generational thing: 60% for millenials, 67% for 35-44, and as high as 73% for those older than 45. 74
Source: In The Pocket State of Mobile field survey
NOT OR HARDLY
SOMEWHAT
VERY
18% 24%
58%
MUSIC 42% Half of ‘16-34’ would pay for digital music, compared to 1 in 3 of ‘45-64’. Belgians between ‘35-44’ represent the highest number of people that are very willing to pay for music: over 1 in 3.
20% 12%
NEWSPAPERS & ARTICLES 32% Willingness to pay for digital newspapers isn’t tied to age.
68%
Only the group of ‘45-54’ stands out, with 41% willingness to pay.
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THE FUTURE OF MEDIA according to Christian Van Thillo, De Persgroep Christian Van Thillo is passionate about publishing. His visionary leadership transformed De Persgroep to one of the leading media concerns in Europe. We asked him about the challenges and opportunities of digital transformation as a whole, and of mobile in particular. These are his answers.
THE FUTURE OF RETAIL
Internationally, growth (in usage and engagement) is now in mobile. Is this also the case for De Persgroep’s titles? There is definitely enormous growth in mobile, especially on smartphones. Nowadays, we always look at the wider ecosystem of a mediabrand: the complete product offering, which enables readers to choose how and where to experience that particular title. But one thing is certain: the mobile experience must be excellent. And when looking at developing and marketing new products, we do so from a mobile-first viewpoint. Mobile has become the primary destination. We are identifying a huge potential in digital services too: platforms for jobs, cars, price watch, real estate, etc. For these types of services, one has to look at mobile first, and offer a superior user experience. Whereas it used to be the other way around: create the desktop product first, and then derive a mobile counterpart.
Does this user growth translate into revenue growth as well? Is De Persgroep fully monetizing mobile? It took some time, but we are seeing an
When looking at developing and marketing new products, we do so from a mobile-first viewpoint.
explosive growth in advertising revenue on mobile. Today, 10% of display advertising revenue comes from our mobile apps & websites. Which might seem low, but it was non-existent only a few years ago. We are investing considerably in classifieds and services, whereas we are moving away from one-offs, temporary initiatives or gimmicks. But, the biggest opportunity lies in the surge of big data and the potential for CRM. We used to only know our subscribers’ names
and addresses from our billing department. Now, we truly know and understand readers across multiple titles, channels, use cases, etc. It is of the utmost importance that we monitor how our clients use our products. Our clients being both readers and advertisers.
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What are your thoughts on the advent of new publishing platforms? Tech companies such as Facebook (Instant Articles) and Apple (News) becoming gatekeepers of news and content? From the moment Facebook announced Instant Articles, we immediately reached out to them: “We are market leaders in several countries, and we’re open to these kinds of opportunities.” News is important to Facebook. And their offer seems good: a nice user experience and 100% revenue share. So these new initiatives are a definite opportunity, which might result in incremental audience reach. However, a lot will depend upon data policy. CRM is essential for optimizing our revenue streams and user experience. Hence, data insights are a must.
I believe in digital magazines, but the reading experience needs to be better.
But it is true: Facebook has considerable control over the reach of the articles we publish. So, it is a “frenemy” relationship. If it is no longer a win for us, we would have to think seriously about moving away. However, the main ambition remains unchanged: to have our own(ed) channels serve as the primary destination for our audience.
Should journalists adapt to mobile even further? Develop new formats for content? Surely. Digital, and mobile, are entirely different experiences from traditional publishing. Our news websites have very little to do with the newspapers. Speed is key, being the first. Writing short and concise for our smartphone audience. We train our editorial staff continuously at De Persgroep Campus. Our course in video journalism is always fully booked. A great example is what De Morgen is doing: always experimenting with new formats and media, but staying true to itself. On the other hand, people are still very much into longer reads as well. I find this somewhat surprising, because the reading experience on digital is still sub-par.
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THE FUTURE OF RETAIL
And magazines? Where lies the future for digital magazines? Especially with regards to magazines and papers on tablets, we are still only on day one. Maybe the new iPad Pro will facilitate things: it has the exact same size as a magazine. I believe in digital magazines, but the reading experience needs to be better. We have to rethink the offering for mobile. Start from the DNA of a title: what does it offer to readers, and how can we digitally deliver on that promise? Even if that means
Mobile has become the primary destination.
doing something entirely different from the paper product. Whether that’s a videoplatform, a digital radio station, … News has reinvented itself in the digital realm. But magazines are still … mostly magazines. We are working on a new product for one of our largest magazines, something entirely new. Much like how De Persgroep and In The Pocket rethought Joepie, but for a major title. Unfortunately, I cannot tell you much more at this stage.
How did De Persgroep cope with digital transformation? In 2001/2002, digital was completely seperate in our organization. Today, that would not work. But at that time, it was the right call. Then, we started to look at digital as a satellite of IT: from a very technological angle. Now, digital is fully integrated. We are not doing digital development: we are doing business and brand development. Companies like Axel Springer Group (Germany) and Schibsted (Scandinavia) are great examples. De Persgroep is doing good, but we’ve also had to deal with a huge scaling operation. We have tripled in size since 2009.
What does the media group of the next era look like? Highly digital, multi-platform, at home in social – local – mobile, and big on data. But, we must not forget: technology is merely an instrument. A succesful media company still masters the craft of publishing, of telling stories, of informing people, of inspiring and entertaining them. But it must know how to achieve this in a way that best suits a particular platform.
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WHAT APPS DOES CHRISTIAN VAN THILLO USE? Media ►► Persgroep
apps, of course.
Bloomberg Businwessweek, LaPresse+ and Oprah magazine. ►► Blendle ►► A
lot of international apps to get inspiration.
►► Netflix, ►► Sport
Stievie, VTM app.
apps.
Utility ►► Homecontrol: ►► INRIX
teletask, Sonos, Revox & Chromecast.
Traffic app.
►► Dropbox. ►► Google
Translate: sometimes the outcome is god-awful, but
often hilarious.
Social Facebook “but only for following, I don’t share anything myself”. “I’m not on LinkedIn. I’m already dealing with huge volumes of email. I don’t need any more. If you don’t have time left to think, you won’t get far in life.”
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In The Pocket thinks, shapes and builds for mobile and the Internet of Things. We partner with companies that want to make a difference in the connected world.