Global Trends 2012 by passionreason

Telefónica Digital PDI - Global UX Ariane van de Ven Global Trends Expert Distrito C – Edificio Oeste 1 – 5º planta Ronda de la Comunicación s/n 28050 Madrid – España ariane@tid.es

Introduction

Trend 1

Staccato Culture

Facts, Insights & Case Studies

Trend 2

Curious Mind

Facts, Insights & Case Studies

Trend 3

Newborn Identity

Facts, Insights & Case Studies

Trend 4

Social Shake-Up

Facts, Insights & Case Studies

Trend 5

Micro Mightiness

Facts, Insights & Case Studies

Trend 6

Making Meaning

Facts, Insights & Case Studies

Design & AD BaseDesign (basedesign.com) Proofreader Sairica Rose (sairica.com) Printing Arts Gràfiques Orient (agorient.com) Images: © Stanley Kubrick / Metro-Goldwyn-Mayer Studios (16) © kylebean.co.uk (20) © bearduckdesigns.com (24) © Jean-Marc Joseph, basedesign.com (64) © Alan Clarck - projectdalek.co.uk (72) © Mark Edwards amoebaboy.blogspot.com (89) © treet.tv (116) © Juan Rayos - juanrayos.com (160) © xiaxue.blogspot.com (164) © Hewlett Packard (168) © Metropolis II by Chris Burden / Photo: Sarah Bowman, The Family Savvy.com (208) © Keith Loutit - keithloutit.com (212) © Lisa Kori / themediumandthemayhem.net (216) © alexprieto.com (256) © Perfecto Insecto - flickr.com/photos/ perfectoinsecto (260) © Jean-Marc Joseph, basedesign.com (264) Tag clouds generated by using wordle.net. All trademarks are owned by their companies. This document has been produced as an internal research document and is not intended for public distribution or use. Every effort has been made to ensure accuracy of copy and to secure approval and accreditation for all images used. © 2012 DL: B-19031-2012 Cover paper made from environmentally friendly EFC pure cellulose. Inner papers 100% recycled.

105 121

153 169

201 217

249 265

Global Trends 2012 Telefónica Digital PDI Global UX, Ariane van de Ven

conservation

S CU MAR RA T TIO N

gi ima

nat

ion

HA P HU PINE NT SS ER S

fre

nce

ta cep

nce

inv

m edo reputation

INF L PA U E N C RA DE E

RY MO ME NKS BA

exp

pri

vac

lut

ie ach

PLE LT I U M ME

SOC IAL SHAK E-UP

ing

ent

evo

eri

interaction

challenge

GR G R E AT OU PS

nde

tio

legacy

epe

ula

ion

FOREVER GROW

ind

stim

NE IDE WBO NT RN ITY

e edg

realization

tio

kno

determination

M ME AKIN AN G ING

dre

SOULFUL LIVING ono

STAC CATO CULTURE

O CR SS MI TINE GH

aut

nes

ora

sin

ion

b olla

ces

CREATIVE BOREDOM

ous

E NC DA O N U F AB F IN O

OD GO NESS SI BU

GLOCAL CHAMPION S

sci

pro

ion

discovery

con

lat

ati

pat

US RIO CU IND M

sel

gu f-re

per

tici

learning

coo

transparency

par

vem

ent

Trends help us define the future we create for ourselves. Telefónica’s Digital PDI Global Trend report identifies emerging consumer behaviors and attitudes that are likely to influence the future market. The aim of this report is to provide insights to help develop innovations that are meaningful to people and society as a whole.

Some of the trends we identified in the previous report have already successfully established themselves, and some we watch keenly as they develop. The Arab Spring provided a great example of the Pioneer of Change trend, which was all about creating disruption by harnessing the power of digital technology. The latter is, without a doubt, fundamentally shifting people’s behaviors and allowing the Citizen of the World trend to become an essential part of our everyday lives as we navigate the world in more flexible and mobile ways. This report focuses on new trends that are influenced by the ubiquity of digital, which we believe will provide us with valuable cues to move forward. The report introduces six new macro trends (relevant for the next five years), which are explained in different chapters through insights, facts, case studies and implications for our five key markets: Spain, the UK, Germany, Argentina and Brazil. As a society, we are experiencing many changes: cultural, economic, political and spiritual. We are stepping into a new era where uncertainty and the pace of life are increasing. People are finding new ways to manage this challenging environment by shifting their aspirations and beliefs, creating new coping mechanisms and embracing the power of digital. Individuals and companies will need to embrace their creative sides and to perceive these changes as sources of positive stimulation (see chapter on Curious Mind). It’s all about proactivity and risk-taking enabled by greater collaboration and communication between people and systems (see chapters on Social Shake-Up and Micro Mightiness). People demand greater transparency and information. A recent poll found that 87% of citizens want to be informed about government activities and 41% want to be informed about big businesses. Digital technology is driving this trend: the Open Data movement (see chapter on Staccato Culture) makes information and knowledge accessible to everyone.

INTRODUCTION

Introduction

Science and technology will play a crucial role in helping us live successful lives. It will bring new innovations that allow us to efficiently manage resources (human and natural), time, finances and the abundance of information (see chapter on Making Meaning). In the near future, people will increasingly live in single households, disconnected from family and friends. According to a Euromonitor International study, the number of one-person households is forecast to reach 253.8 million by 2020. They will rely more on digital technology to manage their personal and professional lives. Additionally, by 2020, most markets in the West will be faced with an ag ing population that will include more people over 50 years of age than under. Advances in technology will become crucial to ensure this segment remains active in society (see chapter on Newborn Identity). The 2012 Deloitte Millennials Survey reported 92% of Millennials claiming that success should be measured on more than just profits. Also, most people have a positive attitude towards technology. Digital technology will become increasingly central to people’s lives and an enabler for change and success. We believe that the biggest and most important shift for our organization will be to creating innovations that impact the world in a positive manner (see chapter on Making Meaning). Telefónica Digital is uniquely positioned because of its expertise and focus. We have the opportunity to help shape this new society by developing meaningful products and services for the consumers of tomorrow. The trends we have identified in this report are here to help us focus on the best opportunities and place our bets on the most exciting and game-changing innovations.

Happy trend reading. For more information on Global Consumer Trends or to book a presentation/workshop please contact: Ariane van de Ven Global Trends Expert Telefónica Digital-PDI Global UX Distrito C – Edificio Oeste 1 5º planta Ronda de la Comunicación s/n 28050 Madrid – España ariane@tid.es

Staccato Culture

Trend 1 —

“We are evolving from being cultivators of personal knowledge to being hunters and gatherers in the electronic data forest.” Nicholas Carr

conservation

S CU MAR RA T TIO N

gi ima

nat

ion

HA P HU PINE NT SS ER S

STACCATO CULTURE

C MI GH

epe

nde

ula

tio

inv

ing

ent

evo

VER W

ind

stim

OR N TY

ion

e edg

realization

kno

determination

M ME AKIN AN G ING

dre

SOULFUL LIVING nes

ra t

OD GO NESS SI BU

bo olla

ing

CREATIVE BOREDOM

ous

E NC DA O N U F AB F IN O

ess

ion

GLO CHAM

sci

c pro

ion

discovery

con

lat

ati

pat

US RIO CU IND M

sel

gu f-re

per

tici

learning

coo

transparency

par

T R E N D 1 — S TA C C AT O C U LT U R E

Our need for competence and disruption will evolve into a need for acquiring knowledge. People will embrace technology to help them process large amounts of information and data at a faster and more efficient rate. We will become a StaccatoCulture, where speed and immediacy enable us to gather information, make decisions and contribute quicker. Smart curation will enable us to manage this abundance of information.

Main Trend Trend Manifestations Values

lut

ion Go to: Staccatto Culture website section

ion

12 13

T R E N D 1 — S TA C C AT O C U LT U R E

Staccato Culture: leveraging collective knowledge The term “staccato” generally refers to things that occur in a rapid, sharp and clear-cut manner. Neuroscientist Jaak Panksepp explains that our constant desire to discover and seek information raises our level of eagerness because it powers a neurotransmitter in our brain called dopamine.1 Staccato Culture derives from our desire to learn and achieve things; by doing so we become accomplished individuals. In a globally connected society where competition is fierce and time is of the essence, being aware of global issues and developing a point of view about them are key. According to British psychologist Guy Claxton, acceleration is now second nature to us: “We have developed an inner psychology of speed, of saving time and maximizing efficiency, which is getting stronger by the day.”2 Speed, in itself, isn’t a bad thing, as long as it doesn’t manifest as the kind of “pressure” we seem to be experiencing in our daily lives. In some cases, it can provide us with new skills: video-gamers are better at paying attention to several things at once than non-players, and they are more adept at ignoring irrelevant features of a problem. Very young children trained with video games have been proven to develop superior attention-management skills, scoring substantially higher than their untrained peers on some IQ tests.3 To navigate such worlds, we must constantly frame and test hypotheses about their underlying logic. Therefore, it is more than a pastime that promotes mental flightiness. “The average video game takes about 40 hours to play”, Johnson writes, “the complexity of the puzzles and objectives growing steadily over time as the game progresses.”4 Armed with new skills and a desire to participate in collective knowledge, we embrace this Staccato Culture to make our mark on the digital world. Technology will open up a new kind of lifestyle, providing us access to information to help position ourselves in an increasingly fragmented world. As we skip through life at a hectic pace, Staccato Culture also poses the challenge of

Staccato Culture derives from our desire to learn and achieve things.

We have developed an inner psychology of speed, of saving time and maximizing efficiency.

building deeper understanding and knowledge, as opposed to mere awareness. Global competition will demand more specialist knowledge. Acquiring in-depth knowledge and expertise on a certain topic will become crucial to success. However, as our lives become more dynamic and networked, the need for a broad understanding of many subjects will increase accordingly. We consider ourselves as “hunters and gatherers” of information. With the progress of technology bringing different ways to access information (e.g. Open Data or Cloud services), our focus will shift from storing information to processing information. People will strive towards managing an abundance of information and develop smart curation to do so. As explained by Douglas Rushkoff: “We have been consistently using our brains less as hard drives and more as processors - putting our mental resources into active RAM.”5 Indeed, as technology enables us to build memory banks (see chapter on Social Shake-Up), we can now focus our brainpower on turning information and data into something meaningful. By embracing this Staccato Culture, we will become more active participants in our globally connected society and feel encouraged to contribute to collective consciousness.

Staccato Culture also poses the challenge of building deeper understanding and knowledge as opposed to mere awareness.

1 Panksepp, Jaak Affective Neuroscience: The Foundations of Human and Animal Emotions (Series in Affective Science), 2004 2 Honoré, Carl, In Praise of Slow, 2004 3, 4 Johnson, Steven, Everything Bad Is Good for You, 2005 5 Rushkoff, Douglass, Program or be Programmed, 2011

T R E N D 1 — S TA C C AT O C U LT U R E

Main trend: Staccato Culture

“Our constant desire to seek things and information raises our level of eagerness because it powers a neurotransmitter in our brain called dopamine.” Jaak Panksepp, Neuroscientist

Managing the abundance of information to obtain greater participation It is now easier than ever before to access a wealth of data and information. One of the most searched terms on Google (with more than eight million hits) is ‘information overload.’1 Sam Anderson writes: “The web gives us more control than we’ve ever had, but it also generates so much new information, so constantly, that it feels strangely like a lack of control. It defeats us, every single day; we could never even dream of reading everything on it. Hence the crisis. When our writing — a tool we invented to tame the world’s overwhelming abundance — itself becomes an overwhelming abundance, it’s a double crisis, a meta-crisis.”2 In 2011, we reached 3.146 billion email accounts worldwide. The average corporate user sent and received 112 emails per day. In the same year, 300 million websites were added and as of December 2011, there were more than 555 million websites for 2.1 billion internet users worldwide (see Supporting Facts section), 45% of whom are under the age of 25.3 Most of us feel that more connections to documents, artefacts and people, mean more external influences to our thinking. We are able to compare lifestyles and different points of view to build knowledge about issues to which we would not previously have had access. We can acquire knowledge on any topic, from financial and legal information, to governmental or educational information. As a result, people are demanding greater transparency of information. The Open Data Movement4 provides a platform for innovation and for value generation to flourish. Governments are increasingly willing to share data with citizens, allowing them to engage in a more efficient manner. For instance, in the UK, online services like FixMyStreet enable people to report problems with the roads. TravelOptions helps people make their way around London

One of the most researched terms on Google (with more than eight million hits) is ‘information overload.’

People are demanding greater transparency of information.

T R E N D 1 — S TA C C AT O C U LT U R E

Trend Manifestation #1: Abundance of Info

and Schooloscope provides ratings on the performance of nearby schools. Information and data mean nothing unless analyzed and put into context so people can make use of them. Open Data is a great example of how the abundance of information can be managed and turned into meaningful information to create greater participation. Information management platforms such as P-Grid (next generation peer-to-peer platform for distributed information management beyond mere file-sharing), Windows Azure Platform (the Microsoft cloud platform to build, host and scale web applications through Microsoft data centers), Google App Engine and Sun Cloud allow people to manage, process and share the abundance of information effectively so they can contribute to the ever evolving collective knowledge. At the same time, Open Data enables users to influence information by creating a “feedback culture” (see chapter on Social Shake-Up). We are now able to make quick decisions about where best to invest our time and access platforms where we can learn, critique and challenge information. Sentiment analysis techniques enable companies to mine the huge streams of data now generated by consumers using various types of social media. In doing so, they can gauge responses to new marketing campaigns in real time and adjust strategies accordingly. Additionally, research has found that analysis of relevant data could improve productivity in health care, government services, retail and manufacturing by 0.5% to 1% annually. In these sectors, globally, it could produce hundreds of billions of dollars and euros in new value.5

We are now able to make quick decisions about where best to invest our time and have access to platforms where we can learn but also critique and challenge information.

1 www.google.com 2 Anderson, Sam, An Accidental, Experimental Masterpiece, New York Times, June 24, 2011 3 http://royal.pingdom. com/2012/01/17/internet-2011 -in-numbers/ 4 en.wikipedia.org/wiki/Open_data 5 LSN Global, 2011

“The web gives us more control than we’ve ever had, but it also generates so much new information, so constantly, that it feels strangely like a lack of control. It defeats us, every single day; we could never even dream of reading everything on it. Hence the crisis.” Sam Anderson, New York Times

Developing smart curation to achieve knowledge

To process the abundance of information available to us, we are developing smart curation strategies. “Young people, in particular, are developing the ability to get the gist of an entire area of study with just a moment of interaction with it.”1 Digital tools (mostly search engines) are helping to reduce the complexity of information. “Power Browsing” is becoming more real-time and personable. Google and Microsoft Bing are constantly refining their algorithms in order to provide immediate and personal results. By using hyperlinks, we can scroll through large amounts of information in record time. According to Nicholas Carr: “The good news is that web surfing, because it engages so many brain functions, may help keep older people’s minds sharp.”2 A recent study conducted by psychologist Gary Small from UCLA demonstrated that surfing the web stimulates problem-solving and decision-making areas of the brain. These attributes are incredibly important if we wish to remain engaged in the creative society.3 Psychologists believe that technology can help us develop new abilities, in particular our so-called “crystallized” intelligence: our “archive” of information about the world, including short cuts for making inferences about it. “Fluid” intelligence, on the other hand, is the ability to solve abstract problems, like logic puzzles. As one might guess, fluid intelligence tends to decline with age, while crystallized intelligence tends to increase up to a point. Hyperlinks provide us with information that has been synthesized for us: they are a short cut (not the full picture) to opening up new sources of knowledge, to which we might not have had access before. As a result, some industries (like the newspaper industry) have completely changed the way they deliver their information online, focusing on a constant flow of short, sweet and bitly news updates. This has lead to the description of the internet as the ‘Headline Age’.4

The newspaper industry has completely changed the way it delivers its information online, focusing on short, sweet and bitty news. This has led to the description of the internet as the ‘Headline Age’.

It makes sense, as people prefer to access content through a mobile device instead of a laptop. According to a recent survey, the number of smartphone connections to Wi-Fi hotspots will soon overtake laptops, which represent just less than half (48%) of the devices connected to hotspots. Smartphones account for 36%, and tablets for 10%.5 New interfaces for tablets are helping us to create a more sophisticated and efficient form of smart curation, providing an instant overview of a vast array of content and giving us the opportunity to dive deeper into specific topics. Sergey Brin, one of the founders of Google, argues that “if you had all the world’s information directly attached to your brain, or an artificial brain that was smarter than your brain, you’d be better off.”6 Many commentators believe tablets can work similarly to an artificial brain - the more people use them to process information, the more the tablets learn from their users and are able to direct them to information that is meaningful.7 Innovations in cognitive and intuitive interaction technology, such as the eye tracking technology Tobii, will help us go through large amounts of information without having to use a computer mouse, giving us faster access to information. Such technology will enable us to understand our desired actions immediately, creating shortcuts with minimum latency. In the same way, video will become more widespread, conveying ideas in a concise manner. Currently, 201.4 billion videos are viewed online every month. With editing software becoming more affordable and easier to use, video will become the format of choice to capture people’s attention. Video offers the opportunity to share information more effectively (e.g. faster, more to the point and more engaging than reading lots of text). Additionally, design will play a crucial role to help people develop smart curation. Design can make complex information easily accessible and understandable. Infographics help people to quickly understand complex data. As the amount of data keeps increasing, (visual and interaction) designers will play a vital role in making the abundance of information digestible. In the future, content will be determined by its format (visual presentation) to allow for smart curation. We will receive and process relevant information in a quicker, more sophisticated manner so we can apply and share it. Being able to draw on refined and accurate information will help us to build specialist knowledge.

T R E N D 1 — S TA C C AT O C U LT U R E

Trend Manifestation #2: Smart Curation

1 Rushkoff, Douglas, Program or Be Programmed, 2010 2 Carr, Nicholas, The Shallows, 2010 3 http://www.universityofcalifornia.edu/ news/article/22147 4 Ramsey, Carl R., Mass Media Unleashed, 2007 5 Global Developments in Public Wi-Fi, WBA Industry Report, 2011 6 www.memtropy.com 7 Crovitz, L. Gordon, The Digital Future of Books, Wall Street Journal, May 19, 2008

“If you had all the world’s information directly attached to your brain, or an artificial brain that was smarter than your brain, you’d be better off.” Sergey Brin, Co-Founder & President of Technology for Google

Trend 1 Staccato Culture Facts

Insights

Case Studies

555 MILLION

3.146

WEBSITES (DECEMBER 2011).2

300 MILLION

BILLION

WEBSITES ADDED IN 2011.3

45%

+800 MILLION

591 MILLION

350 MILLION

SHARE OF INTERNET USERS UNDER THE AGE OF 25.9

1 BILLION

OF USERS ON FACEBOOK (DECEMBER 2011).11

OF FACEBOOK USERS THAT LOG IN TO THE SERVICE USING THEIR MOBILE PHONE.12

MESSAGES SENT WITH WHATSAPP DURING ONE DAY (OCTOBER 2011).18

70 MILLION

WORDPRESS BLOGS 2011.16

476,2 MILLION IN EUROPE.6

FACTS

fixed (wired) broadband subscriptions WORLDWIDE.10

922.2 MILLION IN ASIA.5

T R E N D 1 — S TA C C AT O C U LT U R E

e-mail accounts worldwide.1

2.6 BILLION

WORLDWIDE IM ACCOUNTS.19

NUMBER OF INTERNET USERS WORLDWIDE.4

2.1 BILLION

225 MILLION 271,1 MILLION IN NORTH AMERICA.7 215,9 MILLION IN LATIN AMERICA / CARRIBEAN.8

TWITTER ACCOUNTS.13

100 MILLION

39 MILLION

TUMBLR BLOGS 2011.16

ACTIVE TWITTER USERS IN 2011.14

250 MILLION TWEETS PER DAY (OCTOBER 2011).15

2.4 BILLION

SOCIAL NETWORKING ACCOUNTS WORLDWIDE.20

85% OF HANDSETS SHIPPED GLOBALLY IN 2011 INCLUDED A WEB BROWSER.23

1.2

BILLION

THE NUMBER OF ACTIVE MOBILE BROADBAND SUBSCRIPTIONS WORLDWIDE IN 2011.21

5.9

BILLION

THE ESTIMATED NUMBER OF MOBILE SUBSCRIPTIONS WORLDWIDE IN 2011.22

T R E N D 1 — S TA C C AT O C U LT U R E

4,189,214

TRILLION

THE NUMBER OF VIDEO PLAYBACKS ON YOUTUBE.25

140

THE NUMBER OF YOUTUBE VIDEO PLAYBACKS PER PERSON ON EARTH.26

THE AMOUNT OF VIDEO UPLOADED TO YOUTUBE EVERY MINUTE.27

VIDEOS VIEWED PER MONTH ON GOOGLE SITES, INCL. YOUTUBE (OCTOBER 2011).30 NUMBER OF VIDEOS VIEWED ONLINE PER MONTH (OCTOBER 2011).29

88.3

BILLION

43%

201.4

FACTS

NUMBER OF NEW USERS ON VIMEO.28

BILLION

SHARE OF ALL WORLDWIDE VIDEO VIEWS DELIVERED BY GOOGLE SITES, INCL. YOUTUBE.31

APPLE IPAD’S SHARE OF GLOBAL TABLET WEB TRAFFIC.24 28

NUMBER OF INSTAGRAM ACCOUNTS CREATED DURING 2011.32

IS THE MOST POPULAR CAMERA ON FLICKR.1

FACTS

51 ESTIMATED NUMBER OF PHOTOS ON FACEBOOK BY MID-2011.33

MILLION

TOTAL NUMBER OF REGISTERED USERS ON FLICKR.34

100 BILLION

4.5

MILLION

NUMBER OF PHOTOS UPLOADED TO FLICKR EACH DAY.35

BILLION

PHOTOS HOSTED ON FLICKR (AUGUST 2011).36

TELECOMS MANUFACTURER ERICSSON HAS PREDICTED THAT MOBILE BROADBAND DATA TRAFFIC, FUELLED BY RISING DEMAND FOR INTERNET VIDEO CONTENT AND THE NEXT GENERATION OF SUPERFAST 4G CONNECTION SERVICES, WILL EXPERIENCE A

T R E N D 1 — S TA C C AT O C U LT U R E

APPLE IPHONE 4

MILLION

5BILLION

MOBILE BROADBAND SUBSCRIPTIONS WILL GROW FROM 900 MILLION CUSTOMERS (DECEMBER 2011) TO A STAGGERINg

FACTS

IN 2016 (WHEN USERS LIVING ON LESS THAN 1% OF THE EARTH'S TOTAL LAND AREA WILL GENERATE ROUGHLY 60% OF ALL MOBILE TRAFFIC).3

"10-FOLD INCREASE" BETWEEN 2011 AND 2016.2

1-36 http://royal.pingdom. com/2012/01/17/ internet-2011-in-numbers/

81.3

MILLION TABLETS EXPECTED

TO BE SOLD IN 2012, UP FROM THE ESTIMATED 15.7 MILLION UNITS SOLD WORLDWIDE IN 2010.4

The term was coined by Cass Sunstein and economist Richard Thaler in their book “Nudge: Improving Decisions about Health, Wealth, and Happiness”.1 “Choice architecture enables gentle guidance to replace loud, shouting instructions in commercial communications that are complicit in the distrust of advertising that is common in today’s world”. Jonathan MacDonald, founder of choice architecture marketing agency Human Dialogue.

T R E N D 1 — S TA C C AT O C U LT U R E

Choice Architecture

Collective Learning

Douglas Engelbart, who invented groupware, the mouse, and a form of hypertext designed for collective knowledge, wrote in 1963 of his career and project objective: “The grand challenge is to boost the collective IQ of organizations and of society”.2 His “Bootstrap Principle” describes a human-machine system for simultaneously harvesting collected knowledge and evolving our technology for collective learning. In human-machine systems, both the human and machine contribute actively to the resulting intelligence, each doing what they do best.

30% ERICSSON ALSO EXPECTS THAT

OF THE WORLD'S POPULATION WILL LIVE IN METROPOLITAN AND URBAN AREAS WITH A DENSITY OF MORE THAN 1,000 PEOPLE PER SQUARE KILOMETER BY 2016. In addition advanced smartphones will generate a 12-fold increase in traffic to equal mobile pc-generated traffic by the same year.5

INSIGHTS

FACTS

2010 WAS THE RECORD YEAR FOR SALES OF TABLET DEVICES, AND THE SALES ARE EXPECTED TO INCREASE BY 400% BY 2012 WITH MORE THAN

1 www.flickr.com/cameras 2,3,5 www.ispreview.co.uk/story/2011/11/07/ ericsson-predicts-10-fold-growth-inmobile-broadband-data-traffic-by2016.html 4 http://mashable.com/2010/12/09/ tablet-sales-2012/

With the rise of the social web, we now find millions of people offering their knowledge online - information that is stored, searchable and easily shared. The challenge for the next generation of social and semantic webs will be to find the right match between the data that is put online and applying useful reasoning methods to it. True collective intelligence can emerge if the data collected from all those people is aggregated and “reassembled” to create new knowledge and ways of learning that individual humans cannot do by themselves. Scott Karp has come to believe that reading lots of short, linked snippets online is a more efficient way to expand his mind than reading 250-page books, though he emphasizes that we can’t yet recognize the superiority of this networked thinking process because we’re measuring it against our old linear thought process.3

Collective Intelligence

T R E N D 1 — S TA C C AT O C U LT U R E

“The ability to focus on a single task relatively uninterrupted represents a strange anomaly in the history of our psychological development”, says Vaughan Bell, University of London.4 “When access is easy, we tend to favor the short, the sweet, and the bitty.”5 “Once digitized, books can be unraveled into single pages or be reduced further, into snippets of a page. These snippets will be remixed into reordered books which will be published and swapped in the public commons.”6 “There is absolutely no question that modern search engines and cross-referenced websites have powerfully enabled research and communication efficiencies.”7 But our brains are engaged more shallowly.

INSIGHTS

This online mapping tool aggregates information from disparate open data sources to offer a comprehensive view of the state of global health. This year sees the launch of Predict, a tool that will help the public track outbreaks of animal diseases that could affect humans, pooling information from sources such as the World Health Organization, Google News and the Wildlife Disease Information Node.

CASE STUDIES

HealthMap

healthmap.org

1 Sunstein, Cass, et al, Nudge: Improving Decisions about Health, Wealth, and Happiness, 2008 2 www.dougengelbart.org 3 Karp, Scott, Connecting the Dots of the web Revolution Publishing 2.0 blog, June 17, 2008 4 Bell, Vaughan The Myth of the Concentration Oasis, Mind Hacks blog, February 11, 2009

5 Cowen, Tyler, Create your Own Economy, 2009 6 Kelly, Kevin, Scan This Book!, New York Times Magazine, May 14, 2006 7 Merzenich, Michael, Going Googly (Thoughts on “Is Google Making Us Stupid?”, Postitscience blog, June 29 2010)

T R E N D 1 — S TA C C AT O C U LT U R E

Google Labs Culturomics

culturomics.org

CASE STUDIES

N-gram Viewer was launched in December 2010 and enables users to examine the frequency of words or phrases in books over time (approx. 4% of all books ever published). The results are then presented as a graph, enabling users to easily map out past cultural trends.

Afrographique South Africa-based designer Ivan Colic creates infographics that depict the many economic, technological, and environmental developments on the continent. Afrographique is devoted to visualizing African data with offerings that provide a glimpse into current trends, which could prove to be beneficial education on the status and future of Africa.

afrographique.tumblr.com 36

T R E N D 1 — S TA C C AT O C U LT U R E

Developed by Dr. John B. Stay of Sor-Trondelag University College, Norway, the mobile project HIST offers new ways of teaching and learning. The idea is to transmit knowledge, and to give and evaluate feedback. HIST invites people to create collective intelligence and peer support to provide an enriched learning experience.

CASE STUDIES

HIST

histproject.no

Tobii Tobii is the world’s leading vendor of eye tracking and eye control: a technology that makes it possible for computers to know exactly where users are looking. Tobii is providing its technology to industrial partners in areas such as health care, vehicle safety, gaming and computer manufacturing, and wants to bring it into wider use.

tobii.com 38

Updated information at: globaltrends.telefonica.com/trends/trend1.aspx

Staccato Culture reveals the need for people to embrace accelerated lifestyles in order to acquire knowledge and fully participate in the Project Economy. People will learn new skills with which to navigate the abundance of information and will use smart curation to process it and to contribute to collective knowledge. This will open up opportunities for us, such as: Enabling fast connectivity with minimum latency to improve processing and sharing of information 1.

We already know that smartphone connections to Wi-Fi hotspots will soon overtake laptops on a global scale. Increasingly, people expect immediate access to information and content at all times, primarily through mobile or tablet devices. We access rich format information regardless of our context, thanks to smart solutions such as Pogoplug, a cloud-based solution for all media content stored on a mobile phone, that enables users to stream any media directly from the cloud using just a mobile connection. Additionally, services like Quantum Leap Buzz help analyze tweets and pick up on trends before they even reach mainstream media. We should consider developing such products and services that speed up access to information and knowledge. Advances in video sharing, voice recognition and NFC technology will help improve latency and enable greater, faster information processing and knowledge sharing.

Providing information management services

According to a recent 2011 study, half of a knowledge worker’s day is spent managing information, including filtering incoming information and correspondence, which costs US companies $890 billion a year. Several existing information management platforms such as P-grid, Windows Azure, Google App Engine and Sun Cloud facilitate the efficient managing, processing and sharing of information, but we now have an opportunity to provide integrated information management solutions that work across devices (mobile and fixed), for individuals, companies and even governments. Particularly in the health and financial services, information management will become increasingly vital as it can lead to greater efficiencies. Some such services already exist: Medigram, a HIPPA-compliant messaging app for hospitals aims to connect doctors with all vital medical information, enabling them to make split-second decisions that could save lives.

T R E N D 1 — S TA C C AT O C U LT U R E

Implications

Using Data Mining to understand human patterns and needs

T R E N D 1 — S TA C C AT O C U LT U R E

Data is vital and has a life of its own. By analyzing it, we can create interest graphs related to our consumers and offer them curated and individualized/personalized services. Data Mining can help us identify our customers’ information and knowledge needs. Sentiment analysis can help us understand people’s needs to curate interactive content, express their worldview in images, share links, tweets and more. We could also create services that give people access to their own data and allow them to conduct their own ‘data’ analysis to identify their ‘knowledge gaps’. Mobile analytics companies such as Apsalar, Flurry, Kontagent and Localytics are targeting people based on their mobile behaviors. Such companies can aggregate data collected from users and use it to create richer user profiles and provide more targeted recommendations so that people engage in life-long learning.

Providing context-based services

As people increasingly satisfy their thirst for knowledge by accessing information through mobile devices, we are able to analyze users’ information needs not only based on their profiles, but also on their context (location, mood, etc). LBS (Location Based Services) will continue to grow as data analytics enable better targeting. By including semantic metadata (context), the semantic web will enable more accurate searches through browsers and search engines, as content is searched, indexed and ranked according to its context. Instead of merely recognizing a pattern of keywords, semantic technology actually understands what the content is. However, we need to be aware of potential privacy issues and the products and services we offer should guarantee user data and information security.

Cognitive tools help learners with complex cognitive learning activities and critical thinking. These activities will become key to our participation in the Project Economy. People will rely on new devices to enhance their smart curation, and to access content that matters to them. Intuitive technology will understand the intention of the user, and solutions such as Tobii, which uses facial recognition, will help people create more shortcuts so that they can develop their own smart navigation systems. Additionally, devices that incorporate cognitive technology can already use their own ‘minds’ to point the user to the relevant piece of information and help build collective knowledge. Other applications like Flutter, which uses kinect-like gesture recognition technology to control programs such as iTunes and Spotify, or Sonalight, which enables users to send text by voice, can help people improve access speeds to the information that matters to them, at a specific time and in a specific context.

In Spain to start procedures, manage applications, make requests for reports, access calls, make an appointment to see a doctor or for a technical vehicle inspection, etc. For companies and the economy in general, reuse of public sector data drives the creation of new products and added value services and encourages the invention of new technologies that give access to and exploit the information. Telefónica has long been collaborating with the Junta de Andalucía (The Andalusian Regional Government) on various collaborative involving significant investments and which cover numerous sectors of the ICT area, such as the Corporate Telecommunications Network. Spain is very active in sharing and contributing to collective knowledge. For instance, EuskalSurf is an iPhone app that provides surfers with guide about where to practice fosters real collaboration with citizens. It the sport on Basque beaches. The app aims to enable citizens to interact and combines a variety of services including contribute to improving public services. a connection to Windguru, connections The initiative encourages the development of new products, services and solutions, as well as stimulating the creation jobs in the digital content industry. The National Observatory for Telecommunications and the Information Society (ONTSI) estimates that reuse of public sector information already has a turnover of between €550 and €650 million per year in Spain. Sharing this information in easily manageable formats enables people to oversee the work done by the government and compare it with other regional and national governments. For example, the Junta de Andalucía to webcams at beaches, and maps. Our already offers more than 600 services to Open Data Euskadi, initiative provides citizens and companies, which allow them weather and sea conditions (forecasts for Spain has developed many initiatives to tackle people’s need to acquire greater knowledge. For instance, the Open Data @CTIC tracks the publishing and re-use of public data, while Medialab Prado, a space geared towards the production, investigation, and distribution of digital culture, focuses on open data. In fact, overall, Open Data is one of Spain’s most ambitious projects, seeking to unite the public and private sectors and move towards an open government model that

T R E N D 1 — S TA C C AT O C U LT U R E

Embracing cognitive and intuitive technologies 5.

Spain has developed many initiatives to tackle people’s need to acquire more knowledge.

Telefónica has the opportunity through M2M and data mining initiatives to develop new solutions that leverage user data with cognitive and intuitive technology.

we can provide users with context relevant products and services that can help them contribute to collective knowledge. This is particularly relevant for services related to education and learning, but also for health and financial services.

In the UK The UK has been one of the pioneers of the Open Data movement. Today, there are more than 500 datasets available to the public, via the London Datastore (http://data.london.gov.uk/). Some of the most popular datasets being used by developers include those relating to housing,

The UK has been one of the pioneers of the Open Data movement.

transport, crime and pollution. Entrepreneurs have used the data in the London Datastore to create and sell mobile apps for iPhones and Android platforms, while civic groups currently track everything from education and health, to government supplier pricing patterns. London’s Open Data initiative has been a central part of a broader strategy to boost

economic growth, skill development and innovation. The London Datastore runs several competitions and has created a Developers’ Fund to encourage people to transform rows of text and numbers into Facebook apps, websites or mobile products that they can actually find useful. In recognition of the pivotal role that developers play, advanced plans are in place for an Open Data Institute. The Institute will bring together businesses and academic institutions to help drive innovation and exploit the growth opportunities around Open Data. For example, the Live London Underground Tube Map plots the positions of all London Underground trains on a map, and updates the map in real time. It provides visualization with great ideas for how to handle traffic-movements. In fact, if offers users almost the same view as a traffic manager. The Bike Share Map shows the current

state of bike share systems in over 30 cities around the world. It is a clean, simple and highly useful application. Another initiative, OpenCorporates, exposes company data on the web in an open, easy to use format, allowing connections between companies to be crowdsourced. It is an incredibly powerful and useful app for those who want to find out more about what it is that corporations are doing. It uses Open Data to tackle a very important issue: monitoring firms and business in the global market, while

We should ensure we provide them with smart curation tools to create personalized experiences and use Data Mining to provide them with context relevant content, products and services.

to access online video classes. The O2 Wallet enables people to manage their finances and send money using their mobile phones and the O2 Healthy app encourages people to live healthier and more active lifestyles by allowing them to track, record and publish their walking activity. With all these new digital and mobile services, it is important to ensure that we have an aggregated data repository of our individual users, so that the more of our services they use, the more targeted the experience will be. The mobile is people’s chosen device through which to lead accelerated lifestyles and access information to contribute to collective knowledge. We should ensure that we provide them with smart curation tools to create personalized experiences and use Data Mining to provide them with context relevant content, products and services.

T R E N D 1 — S TA C C AT O C U LT U R E

sea, winds and water temperature). In fact, Spain, and the Basque country in particular, have been recognized for their contribution to the Open Data movement by a European Commission report on Open Data portals. Such initiatives contribute to demonstrating the positive benefits of the information age and present data analytics as a trigger and enabler for greater transparency and participation. Telefónica has the opportunity through M2M and Data Mining initiatives, to develop new solutions that leverage user data with cognitive and intuitive technology, so that

trying to make markets more transparent for the benefit of the market itself and society as a whole. It is a remarkable step forward for transparency and accountability. Telefónica UK has taken advantage of this drive towards embracing the abundance of information to turn it into meaningful knowledge. For instance, My O2 app allows O2 consumers to monitor their consumption, whilst O2 Learn provides an online platform for students

The German Ministry of the Interior recently launched the nationwide competition: “Apps 4 Deutschland” (apps4deutschland.de). This contest seeks ideas and operational software to promote the use of Open Data provided by public authorities. Its aim is to showcase the value of public sector information and to leverage the discussion on Open Data in Germany. Some members of the Geonetzwerk Münsterland - a regional network of local authorities and partners from academia and IT industry, all dealing with spatial information - decided to adopt this idea and to push its development by organizing the: “Apps4DE Hackday Münster”. Interesting examples of Open Data innovation include bePart, a mobile application that facilitates citizens’ participation in urban development. bePart lowers the barriers for political involvement, especially for young citizens, by enabling them to access the development plans for local and regional urban projects. Also, it provides a list of public hearing dates, further encouraging participation in those events. Since all relevant data is widely scattered across the internet, personal participation currently requires great effort. Moreover, most citizens are not aware of their opportunities to participate in development planning. bePart aggregates all relevant data, such as project outlines, schedules, and visualizations, and informs the user about how and when they can take action. A “Concerning Me” feature highlights regional development projects that are of possible relevance to the user.

This initiative could be linked to Think BIG for young people in order to empower them to make informed choices for their community. Telefónica Germany has also launched the Mein O2 app, which enables consumers to access to their own data and monitor their usage.

Consumers’ data will enable us to provide with ever more targeted products and services. This is the first step in showing consumers how useful analyzing their data can be to them. Telefónica Germany has the opportunity to leverage consumer data to provide them with information management services and connect consumers with third parties that can be of relevance to them, especially through O2 Media. People’s desire to acquire knowledge is not limited to educational or professional purposes; it can be linked to rewards and offers. O2 Media can provide them with such rewards based on their profiles, but also through contextualized information. As Telefónica Germany launches more m-services in commerce, health and financial services, consumers’ data will become richer and will enable us to provide them with ever more targeted products and services, which can be tailored to their specific contexts.

In Argentina in the project economy and find work. CVGram (cvgram.me) enables people to share their unique skills by creating an appealing visualization. CVGram structures users’ work information to answer all the questions recruiters need to know about candidates. It’s a great example of information management, processing and sharing. It’s a perfect model with which to show people how becoming ‘smart curators’ can help them stand out. Examples like these are relevant for most of our markets, as people are struggling to find employment. Digital tools that help people to stand out from the crowd will earn popularity. Furthermore, to support accelerated lifestyles, Telefónica Argentina is launching a new mobile service, Wanda Mobile, a joint venture between Telefónica and MasterCard to lead the development of mobile financial solutions in Latin America. The aim of Wanda Mobile accountable. For example, GarageLab is to increase access to payment systems organized a Hackathon in Buenos Aires, and financial services. where programmers met to plan and create applications using public data, with the aim of bringing about a more open, transparent government. Other initiatives include Gasto Público Bahiénse (Bahia’s Public Expenditure), which tracks and analyzes public spending in the city of Bahía Blanca. It is clear that as the open-data movement grows around the world, it will also become more important in Argentina. Open Data is the first step to demonstrating the benefits of As we develop more mobile services sharing information. One of the selected projects for Wayra in Argentina revolves for our customers in Argentina, we will around helping people to ‘curate’ their need to guarantee that their information information so that they can participate is securely stored. To that end, Telefónica In Argentina, the Open Data grassroots movement is just starting. Several initiatives are trying to find ways to raise awareness about the importance of making governments more transparent and

T R E N D 1 — S TA C C AT O C U LT U R E

In Germany

In Argentina, the Open Data grassroots movement is just starting. Several initiatives are trying to find ways of raising awareness about the importance of making governments more transparent and accountable.

As we develop more mobile services for our customers in Argentina, we will need to guarantee their information is securely stored.

Argentina mobile services continue to grow, we will need to ensure that users’ information is used to provide contextbased and personalized experiences that provide people with greater information that they can use to participate in collective knowledge.

In Brazil ness offensive” like no other in Brazil’s history. Rousseff oversaw the enactment of a freedom of information law, a Truth Commission, and the construction of an Open Data portal. She has also presided over the ousting of leadership roles in the formation of the Open Government Partnership, a multilateral initiative launched in 2011 to secure concrete commitments from governments on transparency, anti-corruption and citizen engagement activities. In addition to acting as co-chair of the effort with the United States, Brazil has issued an open government plan that includes an overhaul of its of datasets from across state and federal information access programs, plus new departments are available to the wider open data initiatives and commitments to public. (transparencia.gov.br) One of the greater transparency in budgeting, pubmore interesting Open Data applications lic procurement and corporate activity. is “Onde Acontece” or “Where Things In recent years, Brazilian civil society has Happen”. Onde Acontece is a public developed its capacity to promote prisafety website, which analyses crime and vate sector transparency. The organizaaccident patterns, combining statistics tion iBase has reached agreements with with geospatial data. The service com- over 50 private companies from different bines datasets from several institutions economic sectors in order to obtain key and government departments across financial information and other social inBrazil (ondeacontece.com.br). President dicators. Organizations use this informaDilma Rousseff has launched an “open- tion for “Social Balance” reports, which

Brazil has a long history of Open Data projects. As far back as 2004. the Office of the Comptroller General of Brazil (Controladoria-Geral da União – CGU), the national body in charge of promoting transparency and preventing corruption, began publishing federal budget data. While there is no single information repository, a wide range

Brazil has a long history of Open Data projects.

present financial performance indicators and information about companies’ social projects and worker benefits, among other issues. In addition to this, Brazilians are avid media consumers and we can expect that as mobile and digital consumption

For Telefónica, this opportunity involves identifying how to best create products and services that can help satisfy Brazilians’ information and knowledge needs.

Brazilians’ information and knowledge needs. In the field of education, more than 65% of internet users in Brazil see the web as an educational tool, and it is often used as a source for school papers. With the advent of online education, Brazil currently has 1,2 million online students and information management needs are likely to grow.

T R E N D 1 — S TA C C AT O C U LT U R E

Argentina has defined internal regulations that safeguard the handling of information that the company stores and ensures that providers who have access to it also comply with it. In 2010, Telefónica Argentina implemented an Identity Management System that allows consumers to manage their security settings. As Telefónica

grows, they will develop a stronger need to manage access, processing and sharing of information through their mobile devices. For Telefónica, this opportunity involves identifying how to best create products and services that can help satisfy

Areas of Opportunity

Information management

Voice recognition technology

Video/Multi-screen experience 3

Kinect technology 4

Connected/Smart Home 5

Personalized information services

T R E N D 1 — S TA C C AT O C U LT U R E

Areas of Opportunity

Intellectual technologies 9

M-health 10

M-wallet 11

M-education/learning

Smart cities (using data to make cities more efficient) 54

TREND 2 — CURIOUS MIND

Curious Mind Trend 2 —

“We keep moving forward, opening new doors, and doing new things, because we’re curious and curiosity keeps leading us down new paths.” Walt Disney 56

per

ati

tici

pat

pro

ion

CE AN D UN FO AB F IN O

sin

S CU MAR RA T TIO N

gi ima

nat

ion

HA P HU PINE NT SS ER S

STACCATO CULTURE

discovery

OD GO NESS SI BU

ces

learning

nde

ula

tio

realization

determination

epe

stim

inv

ing

ent

evo

VER W

C MI GH

ind

CREATIVE BOREDOM

kno

e edg

US RIO CU IND M

M ME AKIN AN G ING

dre

OR N TY

coo

transparency

par

TREND 2 — CURIOUS MIND

Our need for imagination & harmony will evolve into a need for stimulation. In a bid to lead fulfilling lives and to strive in a creative society, people will seek inspiration from unexpected experiences big and small. They will will look for adventure and discovery to feed their curious minds. They will become happiness hunters and will embrace moments of creative boredom to discover new aspects of the world and themselves.

Main Trend Trend Manifestations Values

lut

ion Go to: Curious Mind website section

ion

60 61

TREND 2 — CURIOUS MIND

Curious Mind: finding inspiration in the world to achieve stimulation As society moves towards the “Project Economy”, and encourages us to participate and make our own mark, we will yearn to find new ways to stimulate our imaginations and creativity. Access to information and knowledge is only useful if people can turn these into positive experiences for themselves, professionally and personally. In a world where we will live intensely connected lives; and where competition will grow, we will embrace our Curious Minds and engage in activities that stimulate us. Albert Einstein once stated: “The important thing is not to stop questioning… Never lose a holy curiosity.”1 Never before has curiosity been such an important trait. It makes our minds active instead of passive. In fact, our minds become stronger through continually exercising mental curiosity. As the pace of change is accelerating and we have to cope with uncertainty, curiosity makes us more observant of new ideas and opens up new worlds and possibilities. Daniel Pink argues that “our basic nature is to be curious and self-directed”.2 We must learn to adopt this inherent quality. Recent studies suggest that people with greater curiosity are more reactive to events that offer opportunities for growth and high levels of stimulation. Psychologist Todd Kashdan believes that it is possible, in principle, to adopt curiosity as a mindset and therefore be curious about anything. Doing so may constitute the only viable path to fulfillment. “Curiosity…” Kashdan writes, “…isn't about whether we pay attention, but how we pay attention to what is happening.” It is, in other words, an orientation that seeks what is novel in a situation rather than what is pleasant, and embraces uncertainty rather than struggling for closure and control. Kashdan claims we're socially and genetically hard-wired to adapt to experiences, whether they are good or bad. We can create a life that thrills us, but the thrill may fade as it becomes familiar. To stand a better chance of resisting adaptation, it is important to work on developing curiosity. In order to become curious we have to train ourselves to seek what's unfamiliar. There's novelty

As the pace of change is accelerating and people have to cope with uncertainty, curiosity makes them more observant to new ideas and opens up new worlds and possibilities.

in every situation if we look for it, but there's no harm in making the task easier by remembering to do plenty of new things. “As long as something is novel…”, Kashdan says, “…we are still in the process of finding and creating meaning.”3 Technology is a great trigger for curiosity because it constantly confronts us with the unknown and unfamiliar. In the digital world, we are offered many opportunities to indulge our Curious Minds. Upon seeking out and investing effort in novel and challenging activities, people with greater curiosity expand their knowledge and skills, their goal-directed efforts, and their sense of self.4 Curiosity is important for company culture because it breeds creativity and innovation. Companies like Zappos, Virgin, Whole Foods or Southwest Airlines are admired for their engaged and active cultures. Google and 3M have devised a groundbreaking innovation: their “20%” time concept grants employees 20% of their time to work on projects that they are truly passionate about. When curiosity is part of company culture, it creates a work environment where people can deal with uncertainty as they welcome the challenge.

Technology is a great trigger for curiosity because it constantly confronts us with the unknown and unfamiliar.

1 www.success.com/articles/579profiles-in-greatness-albert-einstein 2 Pink, Daniel H., Drive, 2011 3 Kashdan, Todd, Curious?: Discover the Missing Ingredient to a Fulfilling Life, 2009 4 Ainley, M. D., Hidi, S., & Berndorff, D., Interest, learning, and the psychological processes that mediate their relationship, Journal of Educational Psychology, 2002

TREND 2 — CURIOUS MIND

Main trend: Curious Mind

“The important thing is not to stop questioning… Never lose a holy curiosity.” Albert Einstein

Happiness Hunters regard discovery, adventure and passion as the essence of life In an age of austerity, many people feel that “their wings are being clipped”. An overemphasis on “being down to earth” and “no-nonsense” can result in deep frustration for some. The Happiness Hunters are individuals who are trying to follow their passion and live their creativity, despite difficult circumstances. Because, in the beginning, their pursuit is often intangible to others, Happiness Hunters can be perceived as timewasters, or even slackers. However the attitude they embody is crucial for society, as they often drive innovation and creativity by breaking out of the routine and monotony of everyday life. As indicated by Ken Robinson, finding pleasure in what we do is essential as “it is difficult to feel accomplished when you’re not accomplishing something that matters to you”.1 Happiness Hunters are those who take advantage of emerging new dynamics characterized by uncertainty. It is they who will be successful both personally and professionally. People are looking for more stimulation because they want to feel fulfilled and find meaning in their lives. Their intelligence is as unique as their fingerprints. Happiness Hunters seek to find what Ken Robinson calls their “element”. He explains: “When people are in their Element, they connect with something fundamental to their sense of identity, purpose and well-being. Being there provides a sense of self-revelation, of finding who they really are and what they’re really meant to do with their lives”.2 Engaging our Curious Minds to find our passions will help us lead meaningful lives. As explained by Dr. Paul Samuelson (Nobel Prize winner in Economic Sciences): “Never underestimate the vital importance of finding early in life the work that for you is play. This turns possible underachievers into happy warriors”.3 Technology plays a crucial role in indulging our pleasure seeking pursuits. Literary critic Sam Anderson argues that our ‘pleasure cycles’ are now tied to the web.4 Indeed, digital

The Happiness Hunters are individuals who are trying to follow their passion and live their creativity, despite difficult circumstances.

technology enables us to derive pleasure from learning and experiencing new things. Science has recently made progress in relating hedonic pleasure to brain function. In the past few years, growing evidence has suggested that human brain mechanisms of higher abstract pleasures strongly overlap with more basic sensory pleasures. This overlap may provide a window into underlying brain circuitry that generates all pleasures, including the hedonic quality of pervasive well-being. Author Faith Ringgold says: “Everyday of your life you can create something wonderful, so every day is going to be the same kind of wonderful day that every other day is - a day in which you discover something new because you are painting or creating whatever it is you are creating, you are finding new ways in doing it”.5 For Happiness Hunters, it’s all about finding an activity they can engage with and lose themselves in. For decades, Dr. Mihaly Csikszentmihalyi conducted research on the positive aspects of human experience. He calls the total involvement with life: “flow”. For him, flow “happens when psychic energy - or attention - is invested in realistic goals and when skills match the opportunities for action. The pursuit of a goal brings order in awareness because a person must concentrate attention on the task at hand and momentarily forget everything else”.6 In other words, what motivates Happiness Hunters, is not so much pleasure itself but the action of pursuing pleasure. When we indulge our Curious Minds, we are entering this process. Happiness Hunters draw on the so-called mental energy, which is not a “fixed” substance. “It rises and falls with our passion and commitment to what we are doing at the time”.7 One of Happiness Hunters’ most compelling aspects, is that by finding inspiration they become inspirational to others.

TREND 2 — CURIOUS MIND

Trend Manifestation #1: Happiness Hunters

One of Happiness Hunters’ most compelling aspects, is that by finding inspiration they become inspirational to others. 1,2,3,7 Robinson, Ken, Aronica, Lou, The Element: How Finding Your Passion Changes Everything, 2008 4 http://nymag.com/news/ features/56793 5 Ringgold, Faith in Robinson, Ken The Element, 2011 6 Csikszentmihalyi, Mihaly, Flow: The Psychology of Optimal Experience, 1994

“When people are in their Element, they connect with something fundamental to their sense of identity, purpose and well-being.” Sir Ken Robinson, author of The Element: How Finding your Passion Changes Everything

People will find ways to turn empty moments into Creative Boredom The advent of Google Calendar has reinforced the opportunity to plan our lives ahead for many weeks or months. We know exactly where we’re going, what we’re doing, at what time and what to expect from each event. As a consequence, the element of surprise has largely been removed from our day-to-day activities. One might think that by knowing in advance what will happen, one can avoid risks accordingly, but the downside is that predictability, monotony and confinement are infiltrating our lives. In fact, we feel that any situation that stays the same for too long has the potential to become boring. Richard Larson, an engineering systems professor at M.I.T., argues that in this smartphone era, people want to be busy and productive at all times, even during short waits.1 As a result, we are creating a society where empty moments are being saturated with productivity, communication and the digital distractions offered by an everexpanding array of slick mobile devices. We are seeking Creative Boredom to satisfy our growing need for constant stimulation. A few years ago, cell phone manufacturer Motorola started using the word “microboredom” to describe the ever-shrinking “portions” of free time from which new mobile technology offers an escape. “Mobisodes,” two-minutelong television episodes of everything from Lost to Prison Break made for the cell phone screen, are perfectly tailored for the “microbored” users. Cell phone games are often designed to last more minutes: simple, “snack-size” diversions like Snake, Solitaire and Tetris. Social networks like Twitter and Facebook turn every mundane moment between activities into a chance to broadcast feelings and thoughts; even if it is just to triple-tap a keypad with the words “I am bored.” As it becomes more difficult to imagine a world without constant connectivity, the very concept of “microboredom” may begin to lower our tolerance

We are creating a society where empty moments are being saturated with productivity, communication and the digital distractions offered by an ever expanding array of slick mobile devices. 70

for even a second of free time. We will increasingly “organize our internal absences to create meaning”, writes Sam Anderson.2 Indeed, our need for stimulation, spurred by technology, is creating a growing desire to fight boredom. “Boredom - the word itself hardly existed 150 years ago - is a modern invention. Remove all stimulation and we fidget, panic and look for something, anything, to do to make use of the time”.3 Monotony gives rise to boredom. When a person finds no stimulation or excitement in repetitive tasks, they look to something new. Technology enables us to find opportunity in boredom and turn it into Creative Boredom. “Boredom makes people long for different and purposeful activities, and as a result they turn towards more challenging and meaningful activities, (...) what they perceive to be really meaningful in life," writes Wijnand Van Tilburg in his paper.4 Van Tilburg said his research proves that boredom can promote behavior that benefits society. His research has been welcomed by Adrian Savage, an editor at the online life coach site www.lifehack.org. “Being bored turns your mind inward and encourages reflection. When you're rushing about, there's no time to think. When you're bored, there's nothing else to do but think,” he said.5 Boredom is nearly always essential to creativity; it stimulates the search for better ways to do things, better than anything else. When people criticize other people’s boredom, they fail to realize that it is through boredom, and finding ways out of it that people stretch their inventive capacity. The brain uses downtime to process new information into long-term memory and to make a myriad of connections with other learning and life experiences. So much of what we discover about ourselves and ultimately express in our lives is a product of the connection of ideas, experiences, perceptions, reflections and unconscious elements that our brains assemble. It creates links made available to us in the course of a given day. Steve Jobs famously stated to Wired’s Steven Levy: “I’m a big believer in boredom. Boredom allows one to indulge in curiosity.”6 If we let our Curious Minds wander, we start to use our imaginations. Experiencing Creative Boredom helps us to unlock our innermost creative powers, bringing joy and fulfilment.

TREND 2 — CURIOUS MIND

Trend Manifestation #2: Creative Boredom

When you're rushing about, there's no time to think. When you're bored, there's nothing else to do but think.

1 Silverman, Rachel Emma, Too Busy to Be Bored?, The Wall Street Journal, August 11, 2011 2 Anderson, Sam, An Accidental, Experimental Masterpiece New York Times, June 24 2011). 3 Honoré, Carl, In Praise of Slow, 2005 4 van Tilburg, Wijnand, Bored George Helps Others: A Pragmatic Meaning Regulation Hypothesis on Boredom and Prosocial Behaviour, University of Limerick, 2011 5 www.lifehack.org 6 http://www.wired.com/ epicenter/2011/10/jobs/all/1

"I’m a big believer in boredom. Boredom allows one to indulge in curiosity." Steve Jobs, Apple Founder

Trend 2 Curious Mind Facts

Insights

Case Studies

MILLION

FACTS

people by August 2006 (an increase of 18 million in 2 years). Assuming the same growth rate of 18 million people every two years, this is 36 million people more than in August 2006 (meaning that 108 million Americans were watching virtual tours as of August, 2010).1

BILLION

SMARTPHONES

BILLION

SMS ENABLED

IN 2014, MOBILE INTERNET USAGE WILL OVERTAKE DESKTOP INTERNET USAGE (more than 50% of all “local” searches WERE done from mobile deviceS in 2011).3

MILLION

WITHOUT SMS CAPABILITIES.2

86% of mobile users are w watching TV while a using a mobile phone.

800

TREND 2 — CURIOUS MIND

4 3 950 +

FACEBOOK HAS

200+ million mobile user (1/3 of all users) access Facebook from a mobile device.

91% "Social" related mobile internet use.

MILLION MONTHLY ACTIVE USERS. Of these, more than 350 million people access Facebook through their mobile devices, which make for nearly 44% of its user-base.4

100 TWITTER REACHED ITS

MILLIONTH

‘ACTIVE’ USER. Of the active users, 55% use Twitter on their mobile devices (Twitter blog, 2011).

FACTS

PEW'S RESEARCH DATA SHOWED THAT AMERICANS WATCHING VIRTUAL TOURS ROSE FROM 54 MILLION people in 2004 to

According to comScore data from October 2011, there are 90 million smartphone users aged 13 or older in the U.S. Therefore as many as 78% of smartphone users are ripe for geo-social apps to Chaim like: Foursquare, Loopt, Scvngr, MyTown, Gowalla, etc.5

1, 2, 3, 4, 5 www.digitalbuzzblog.com/2011mobile-statistics-stats-factsmarketing-infographic 4 socialmediatoday.com

The number of active mobile broadband subscriptions worldwide in 2011.1

140

THE NUMBER OF YOUTUBE VIDEO PLAYBACKS PER PERSON ON EARTH.5

The amount of video uploaded to YouTube every minute.6

76.4%

YOUTUBE’S SHARE OF THE U.S. VIDEO WEBSITE MARKET (DECEMBER 2011).9

5.9 BILLION

FACTS

The estimated number of mobile subscriptions worldwide in 2011.2

85%

THE MOST VIEWED VIDEO ON YOUTUBE DURING 2011

REBECCA BLACK’S “FRIDAY.”7

NUMBER OF VIDEOS VIEWED ONLINE PER MONTH (OCTOBER 2011).10

OF HANDSETS SHIPPED GLOBALLY IN 2011 INCLUDED A WEB BROWSER.3

TRILLION

82.5%

201.4 BILLION

4,189,214

NUMBER OF NEW USERS ON VIMEO.11

88.3 BILLION

VIDEOS VIEWED PER MONTH ON GOOGLE SITES, INCL. YOUTUBE (OCTOBER 2011).12

TREND 2 — CURIOUS MIND

BILLION

48 H

FACTS

1.2

43%

SHARE OF ALL WORLDWIDE VIDEO VIEWS DELIVERED BY GOOGLE SITES, INCL. YOUTUBE.13

THE NUMBER OF VIDEO PLAYBACKS ON YOUTUBE.4

PERCENTAGE OF THE US INTERNET AUDIENCE THAT VIEWED VIDEO ONLINE.8

1-14 http://royal.pingdom. com/2012/01/17/ internet-2011-in-numbers/

TREND 2 — CURIOUS MIND

ONE OF THE THINGS PEOPLE DREAD MOST IS

TO HAVE NOTHING TO DO

FACTS

OUT OF 8,000 (AGED 13-64) OWNED AN INTERNETCONNECTED MOBILE DEVICE, according to a sURVEY.1

83%

of Americans would be more bored without cell phones. The Pew study also pointed out that over a quarter (27%) of respondents stated they couldn’t do, or had difficulty with doing, something without their phone. Smartphone owners were more likely to use their phones for activities other than making calls than nonsmartphone owners.2

AGES 13-64 86 %

AGES 13-24 92 %

PERCENTAGE OF SURVEY RESPONDENTS ADMITTED to USING a MOBILE DEVICE WHILE WATCHING TV.

WHEN USING A HANDSET:

33% WERE USING MOBILE APPLICATIONS.

37% WERE BROWSING THE INTERNET.

40% WERE CATCHING UP WITH FRIENDS ON SOCIAL NETWORKS.1 78

OVER 50% OF PEOPLE AGREE.

50%

THE FIGURE CAN CLIMB AS HIGH AS 75% AMONG 16-24s.3

MORE THAN 1/4 OF CONSUMERS

OF people say that handexpress an interest in a sets allow them to keep busy or entertained where- device THAT would allow them to watch television ver they find themselves. while out and about. Again, this peaks within the younger age groups, with nearly two thirds of 16-24s endorsing the statement. Over 20%, meanwhile, report that they conduct such chores as paying bills and checking their bank account –behaviours which will inevitably become more mainstream in the coming years.4

Once again we see a strong demographic influence here: support climbs to around 50% among younger respondents.5

When we ask people HOW THEY WOULD PREFER TO FILL TIME SPENT WAITING FOR PUBLIC TRANSPORT we see the strongest growth in options which make use of the mobile internet (checking emails or browsing sites).

FACTS

5,313 USERS

And while “doing nothing/relaxing” remains the most popular answer, we can certainly expect to see smartphonefacilitated activities becoming more prominent.7

OVER 20 %

of the age group between 16-34 complete “chores” via their mobiles.6

1 Mobile shopping Framework, the role of mobile devices in the shopping process, Nielsen/Yahoo! Study, November 2010 2 http://pewinternet.org/Reports/2011/ Cell-Phones.aspx 3,4,5,6 www.futurefoundation.net

is your window,” the poet declared. “Once this window opens, don’t try to shut it; on the contrary, throw it wide open.”7 Boredom can also encourage innovation. It can breed dissatisfaction with ways that are intellectually shopworn. It can drive the thoughtful to question accepted norms and to seek out beneficial change. Daydreaming is often a byproduct of boredom. In their book, “The Secret World of Doing Nothing,” two Swedish social scientists, Billy Ehn and Orvar Lofgren, contemplate whether it makes people “able to imagine new possibilities.”8 Boredom makes our lives run more smoothly and even more happily.9

TREND 2 — CURIOUS MIND

Civic Venture’s think tank talks about ‘encore careers’: instead of retiring or continuing to work as they always have, the company is crafting jobs that offer a continued income and emphasize meaning.1 Harvard psychologists Daniel Gilbert and Matthew A. Killingsworth published a fascinating paper in Science, documenting our penchant for disappearing down the rabbit hole of our own minds. The scientists developed an iPhone app that contacted 2,250 volunteers at random intervals, asking them about their current activity and levels of happiness. People were engaged in mind-wandering 46.9% of the time. In fact, the only activity in which their minds were not constantly wandering was love making.2 What Scientists say that daydreaming can help us relax, boost our creativity and productivity, and even help in the maintenance of a healthy relationship. We spend about a third of our waking lives daydreaming. During that time our brains are surprisingly active, according to a 2009 study.3 Prof. Kalina Christoff, UBC Dept. of Psychology says: “It shows our brains are very active when we daydream – much more active than when we focus on routine tasks.” Daydreaming can be a kind of constructive self-entertainment, psychologists say, especially if the mind is turning over a problem. 4 Using brain-imaging technology, neuroscientists have found that the brain is highly active when disengaged. It consumes only about 5% less energy in its resting “default state”, than when involved in routine tasks according to Dr. Mark Mintun, a professor of radiology at Washington University. 5 Psychologists have studied boredom using a 28-item questionnaire that asks people to rate how closely a list of sentences applies to them, including phrases like “Time always seems to be passing too slowly”. High scores in these tests tend to correlate with high scores on measures of depression and impulsivity. But it is not clear which comes first — proneness to boredom, or the mood and behavior problems. “It’s the difference between the sort of person who can look at a pool of mud and find something interesting, and someone who has a hard time getting absorbed in anything,” said Stephen J. Vodanovich, a psychologist at the University of West Florida in Pensacola.6 The poet Joseph Brodsky described boredom as a “psychological Sahara,” a cognitive desert “that starts right in your bedroom and spurns the horizon.” However, boredom and its synonyms can also become crucial tools of creativity. “Boredom

Boredom in different countries and cultures

The current revelation that American students have higher scores for proneness to boredom than German students is similar to past findings10 comparing boredom levels of US students to those of another European country, Ireland. The same trend was not found in other cross-cultural comparisons. For example, Zuckerman11 found that US students scored lower than British students. Sundberg12 stated that a U.S. sample did not differ from that of an Australian sample, but scored lower than samples from Hong Kong, China, and Lebanon. It should be noted that, in contrast to the other cross-cultural studies on boredom propensity that used the Boredom Proneness Scale, the earlier work by Zuckerman13 employed the Boredom Susceptibility subscale of the Sensation Seeking Scale, which primarily measures boredom due to a lack of environmental stimulation. The fact that Americans have significantly higher scores on the BPS External Stimulation subscale indicates that US students tend to experience boredom when they perceive their environment as lacking in activities to pursue. Perhaps Americans have come to rely on external stimuli to entertain themselves to a greater extent than Germans.14 US participants had higher boredom levels in regards to affective responses to boredom and the perception of time. The latter finding is interesting because the word for boredom in the German language ("Langeweile") literally means "long while." The focus on the passage of time has been thought of as being central to the experience of boredom.15 Iso-Ahola and colleagues16 suggested that boredom is more likely to occur in those who lack the ability to organize their time effectively. Perhaps Germans emphasize organization and

INSIGHTS

Daydreaming

1 www.encore.org 2 Science 12 November 2010: Vol. 330 no. 6006 p. 932 3 Zielinski, Sarah, Boredeom and Other Helpful Time Wasters, blogs. smithsonianmag.com, May 2011 4,5 Carey, Benedict, You’re Bored, But Your Brain Is Tuned In, New York Times, August 2008 6, 14, 10 Stephen, J. Vodanovich, Boredom proneness: Its relationship to psychological and physical health symptoms North American Journal of Psychology, 2011 7 Brodsky, Joseph, “In Praise of Boredom”, Harper’s Magazine, March 1995 8,9 Toohey, Peter The Thrill of Boredom, New York Times, 6 August 2011 11,13 Zuckermann et al, Sensation-seeking in England and America: Cross Cultural, Age And Sex Comparisons, Journal of Consulting and Clinical Psychology, 1978

12 Sundberg, N. D., & Staat, K. Boredom and Culture, Paper presented at the Emotion and Culture Conference, 1992 15 Grubb, E. A., Assembly line boredom and individual differences in recreation participation, Journal of Leisure Research, 1975 Waugh, M., Boredom in psychoanalytic perspective, Social Research, 1975 16 Iso-Ahola, S. E., & Crowley, E. D., Adolescent Substance Abuse and Leisure Boredom, Journal of Leisure Research, 1991 17 Vodanovich, Stephen J. Kass et al Culture and gender differences in boredom proneness North American Journal of Psychology, June 2011 18 van Tilburg, Wijnand, Igou, Eric, Bored George Helps Others: A Pragmatic Meaning-Regulation Hypothesis on Boredom and Prosocial Behaviour, University of Limerick, 2011 19 Future Foundation Smart Boredom, 2011

TREND 2 — CURIOUS MIND CASE STUDIES

INSIGHTS

structure more than individuals in the U.S. and this focus partially accounts for their lower BPS scores with respect to time. Indeed, past research with Irish students found high scores on the Effective Organization Subscale of the Time Structure Scale to be significantly associated with low scores on the BPS Time subscale. However, this relationship was not found for a sample of American students17. Wijnand van Tilburg, from the University of Limerick, and co-author of the paper, Bored George Helps Others: A Pragmatic Meaning-Regulation Hypothesis on Boredom and Prosocial Behavior asserts that “if prosocial behavior fulfills this requirement, boredom promotes prosocial behavior”.18 Our perceptions of inactivity have shifted; while we might once have deemed it wasteful or inefficient, moments of true downtime - where we actively disconnect from our digital lives are to be embraced and even cherished.19

Magazinify Launched in 2011, Magazinify is a free browser addon service, which allows users to earmark interesting articles they find and have them delivered by email in the shape of a magazine-style PDF document at the end of each day. Consumers can browse the articles at their convenience. Users can also link the service to their Twitter page, with Magazinify collecting links from up to 20 tweets shared by their preferred contacts. This marks another step towards the ongoing digitalization of the print industry. 83

TREND 2 — CURIOUS MIND

South Korea’s Home Plus, a retail chain jointly owned by Samsung and Tesco (owning the majority stake,) launched a campaign in 2010 enabling people to shop while commuting. Home Plus installed backlit boards on subway station platforms featuring images of popular groceries. Using a smartphone, consumers scan QR codes next to individual products to add them to a shopping basket. Deliveries can be made within a couple of hours. Customers can continue shopping via their mobile devices while on the train. Home Plus claims the campaign helped online sales increase by 130%.

Source: Home Plus,2011

CASE STUDIES

Home Plus

The Opera Tavern London’s The Opera Tavern demonstrates one way a brand or entity can create (and test) the value of its Twitter community: for a single day each month, the restaurant announces a secret burger via a tweet, followed by the password (ask for Pierre the manager and tell him “I’ve got the horn”). This endeavor instinctively feels like a simple test and execution for a brand/ company to create value for its Twitter community via exclusivity of offer — and to assess the value that this audience contributes to the business and to the company’s reach.

operatavern.co.uk 84

TREND 2 — CURIOUS MIND CASE STUDIES

Google has replaced the Android Market with a cloudbased platform that unifies Google’s entertainment brands such as the Android Market, Google Music and Google eBookstore and makes it all available to a single hub called Google Play. To celebrate its launch, Google held a promotional “7 Days to Play” sale that offered ‘discounted apps, books, movies and music throughout the week’. Google Play is available for devices running Android 2.2 or higher.

CASE STUDIES

Google Play

goo.gl/Pz4JW

Playing For Change Playing For Change is a foundation dedicated to connecting the world through music, by providing resources to musicians and their communities around the world. The project currently runs 10 programs, which benefit 750 students in different countries in Africa and India . The foundation employs 150 people.

playingforchange.com 86

Updated information at: globaltrends.telefonica.com/trends/trend2.aspx

Curious Mind reveals how digital technology can provide stimulation by helping people to develop, nurture and expand their minds. In the Project Economy, it is up to the individual to actively participate and contribute. We have the opportunity to help people become successful in a globally connected society by assisting them to embrace change and see it as a source of stimulation. The opportunities are as follows:

Creating bite-size stimulating experiences 2.

We know that the increase in mobile media consumption is partly due to the fact that mobile devices enable people to fight boredom. ‘Save it for later’ applications such as Instapaper or Magazinify, provide mobile solutions with which users can turn their boredom into creative opportunities, by allowing them to store content for later, on their mobile devices. More content (such as games or news) is also being consumed primarily on mobile devices. We have the opportunity to leverage our consumer data (profile and context), to provide access to the most relevant ‘bitesize’ experience during moments of down time. Telefónica could provide consumers with these bite-sized, stimulating experiences and connect third party content to the relevant consumer, in terms of context and profile, through mobile advertising.

TREND 2 — CURIOUS MIND

Implications

Building artificial curiosity as part of our products and services

Curiosity is fundamental for creating enjoyable and pleasurable interactions between technology and humans. We could create services that encourage smart exploration, where curiosity is used to explore the space and locate the zones where progress can happen For example, ErgoRobots is a hardware platform for showcasing curiosity and learning behaviors, with which the public can interact. Embedding artificial curiosity into our products and services could create a stimulation system for the user and a machine that facilitates learning and makes the whole experience more enjoyable. This is particularly important to consider when we develop innovations related to education and lifelong learning. Within this context, we could use active reinforcement learners to translate mismatches between expectations and reality into curiosity rewards or intrinsic rewards for intrepid, creative, exploring agents who like to observe truly surprising aspects of the world and to learn novel patterns.

TREND 2 — CURIOUS MIND

Developing deeper interactive mobile experiences 3.

Greater digital experiences involving multi-screening provide golden opportunities to leverage the ubiquity of mobile technology to enhance people’s interaction and stimulation. Technologies like QR codes, augmented reality, and sonic tags, such as SonicNotify, are helping to create multi-layered experiences that can offer different dimensions of stimulation. For example, the Dimension app, takes advantage of the fact that specific human activities and environments create different augmented sounds and cause different phantom effects. The RjDj engineering team, a pioneer in Reactive Music, developed this sonic adventure game to enhance reality, rather than distract from it. Such interactive experiences don’t have to be limited to the world of gaming; they can be applied to many other aspects of people’s lives from health and wellbeing, to education and learning. They reveal the vast potential to apply new technologies to enhance the interactive mobile experience.

Leveraging happiness as a currency

We can capitalize on Happiness Hunters and reward them for engaging in creative and adventurous pursuits that provide stimulation, by developing a reward mechanism based on the idea that happiness can be used as a currency. For example, ‘Playing for Change’ or ‘Playing for Rewards’ become interesting within the contexts of education, health and financial services to motivate people to make the right decisions, but they also have a place in advertising. Kiip offers brands like Sephora, Vitaminwater, and Dr Pepper paid access to a games network where they can reward players for their achievements through brand related incentives. The applications for leveraging happiness at crowning moments go beyond mobile games and represent a real platform for enhancing stimulation, especially as we develop new products and services like Hybrid TV.

Curiosity is important for company culture because it breeds creativity and innovation. We must create a culture that nurtures the right behaviors in order to become one of the most innovative organizations. When curiosity is part of company culture, it cultivates a work environment in which employees can deal with uncertainty, as they welcome it as a challenge and as a source of stimulation. MIT Media Lab’s Lifelong Kindergarten demonstrates how playful technology can enhance our creativity and learning. This is fascinating in terms of building a culture that embraces people’s curious minds and stimulates them through challenges that can be conveyed and also answered through fun and play. The 10Fridays initiative is a good example of this, and the Gastrotechdays in Barcelona show how creativity and stimulation can come from a variety of unexpected places to trigger innovation. Such initiatives appeal to Happiness Hunters, whose curious minds create positive and contagious behaviors that spread across our organization.

In Spain In tough economic time, only those who see uncertainty and change as a source of stimulation and possibility, will succeed.

In Spain, where the unemployment rate for young people is one of the highest in Europe, helping people find a way out of boredom and negativity can prove challenging. In Spain, where the unemployment rate for young people is one of the highest in Europe, helping people find a way out of boredom and negativity can prove challenging. However, the companies that contribute to lightening people’s moods will be rewarded. We have the opportunity to demonstrate that digital technology can trigger positive stimulation and offer a path to a brighter future. Digital technology can provide an abundance of stimulating experiences for people who care to challenge their boredom and find new opportunities for themselves. In the context of the Project Economy, people are able to contribute if they adopt a proactive attitude to life. We can provide the tools for people to develop the skills that are necessary in order to succeed in the Project Economy. For example, we know that monitoring and tracking technology can improve stimulation and provide people with a greater sense of

achievement. This can be applied to a spectrum of products and services, from health, well-being, financial services, to learning and entertainment. It is a great way to keep people stimulated and in an activity. We can also consider additional ways to strengthen their engagement, say by creating reward mechanisms that incentivize users with prizes once they have achieved particular tasks and hit milestones. These types of gamification experiences foster greater engagement and build emotional connections with our customers. Additionally, we can provide practical ways for people to understand how to leverage digital technology and participate in the Project Economy. We could offer workshops and/or online classes in Movistar/Telefónica spaces, where we showcase the possibilities of digital technology so that people can start building their own projects. Arduino is a great example of how technology can help people develop their own product ideas, and a clear demonstration of the benefits of engaging with our curious minds. Promoting such technologies and offering training and workshops to show consumers how to use them would help Telefónica build stronger connections with younger consumers and emphasize the relevance of technology to their lives. This could be done through the Wayra Academies and at Campus Party, as well as other events that are organized in our other spaces. Additionally, our flagships in Madrid, and in the near future in Barcelona, could showcase virtual and augmented reality experiences where we demonstrate how digital technology can create engaging discovery mechanisms.

TREND 2 — CURIOUS MIND

Making play and fun part of our culture and innovation process 5.

In the UK The UK boasts a high level of self-stimulation, as entrepreneurship and the DIY/Hacker movement become more compelling to people and spread to the mainstream. As a result, people, especially young adults, have a proactive attitude towards life. There is a rise in stu-

People, especially young adults, have a proactive attitude towards life. There is a rise in student entrepreneurship in the UK.

dent entrepreneurship in the UK. As a result, more UK universities are setting up incubator programs for student businesses. The economic climate has been driving this trend: a lack of jobs means people are starting to make their own.

This is the right mindset with which to succeed in the Project Economy. Opportunities for contribution and success are there for people to discover and leverage. Telefónica has the potential to further engage with these young people who are looking for stimulation from a variety of sources and to embrace their creativity. For example, Grazzia fashion magazine partnered with Apple to offer free master classes on Fashion Blogging at its flagship store in Covent Garden. With the popularity of blogging and visual curation websites such as Pinterest and Tumblr, such workshops show people how to use digital creative outlets to their full potential. Last year, Diesel launched its School of Island Life, holding a series of free lessons, field trips, screenings and parties featuring inspiring industry experts and pioneers from creative and cultural fields. Such initiatives are a great way to show a brand’s commitment to stimulating people’s curious minds and teaching them new skills in a playful way.

Telefónica has the O2 shops, the O2 area and O2 academies, which could host such events. These events could be linked to the Think BIG program. Youth experts argue that young people are keen to learn more about technology and what it can do for them. This is an opportunity for O2 to continue developing strong relationships with this segment, by positioning the brand as a trusted and fun partner. O2 can leverage its relationship with the music industry by, say, offering workshops about music and technology. We know from talking with youth experts that young people are really keen to understand the possibilities/ potential of new technologies. We could help them uncover the benefits of new technology and apply it to a context that is relevant and appealing to them, such as music and entertainment. This could help us strengthen our relationship with that segment. It would also position us as an attractive partner for other brands/companies who are looking to engage further with this audience. Additionally, we have an opportunity to stimulate people’s creativity and appeal to their curious minds by directing them to the right ‘experiences’.

We could help them uncover the benefits of new technology and apply it to a context that is relevant and appealing to them, such as music and entertainment.

TREND 2 — CURIOUS MIND

For example, we could feature a location- provide exposure for our innovation procbased augmented reality app that offers esses and show that we are embracing our additional context-based information to Curious Minds. provide unexpected fun and playful elements across the retail space. Internally, we are already drawing inspiration for innovation from unexpected places, like the 10Fridays program. So far we have considered innovation in the context of sport, fashion and food. Events such as the Gastrotechdays are great ways to

We can help them discover new products, services, content, games, etc. by leveraging our recommendation-based engines, especially if they include a ‘curiosity algorithm’ that offers more opportunities for unexpected discoveries. Stimulation and curiosity could be applied to most of our services, especially in the context of health and wellbeing. We could implement the idea of leveraging ‘happiness as a currency’ and reward people’s achievements with fun, playful and surprising prizes.

In Germany The German government is implementing various initiatives to boost creativity and innovation as part of a Europewide effort. It is widely accepted that Europe can only sustain its position as an important player in the global economy, if its companies and institutions manage

the full transition towards the knowledge economy and exploit innovative ideas and creative solutions across all industries. The importance of creating a culture of innovation and creativity has been recognized just recently by industry leaders and policy makers. Germany is putting

into place new initiatives and laws in order to boost entrepreneurship and innovation activities. In the context of O2 Think BIG, we have the chance to be part of these initiatives or to reinforce them, by offering ways for people to leverage digital technologies to embrace their curious minds and unlock their creative potential. These could be carried out at our retail spaces, where we could showcase our most engaging and surprising innovations and also run workshops that offer free tutorials on specific subjects. This could be a great way to strengthen the Think BIG program, and also to build on the O2 Guru initiative. We could also tie these workshops to some of our other projects, such as Wayra, BlueVia or Arduino – all of which are great examples of people’s successful engagement with digital platforms. Technology is exciting and is an enabler for great innovation. To succeed in the Project Economy, people will need to learn how to best use digital tools and we have an important role to play in this. German citizens have traditionally been concerned with environmental

issues, and this could be an angle we could optimize to stimulate people’s use of digital technology. By showing them how to use products and applications for themselves, we would appeal to their DIY instincts and curious mindsets. We could link this to ‘Think BIG for the Planet’ and teach people in our retail spaces, online or through apps, how technology can help them lead more sustainable lifestyles. We could also embed a reward mechanism that incentivizes consumers with surprising prizes. We know that consumption of mobile media is booming, with 75% of smartphone users in the EU5 using mobile media in October 2011, up 65% yearon-year. German smartphone users also

German smartphone users also showed the fastest adoption of emerging technologies, such as QR codes. showed the fastest adoption of emerging technologies, such as QR codes. This indicates that we have license to provide our customers with innovative experiences that use virtual and augmented technology, enabling them deeper interaction with a message or piece of content. This could be particularly interesting to include in our mobile advertising products, as a way of showing that we create engaging and discovery experiences for our customers.

In Argentina Argentina has the highest smartphone and multimedia phone penetration in Latin America – currently at 60%. In a recent study, students in Argentina were asked to live without media for a day. They strug-

Argentina has the highest smartphone and multimedia phone penetration in Latin America – currently at 60%. gled to find ways to fill their time and to resist the pull of media, in part because they discovered just how ubiquitous and essential it is to their lives. Above all, they felt lonely and bored. Their mobile phones, in particular, foster communications among friends and family, who are often widely dispersed. This is why we see a growth in the consumption of data and the use of messenger and social applications coming from mobile phones. When looking at the most popular apps in Argentina, many are related to connectivity management and entertainment. And even

When looking at the most popular apps in Argentina, many are related to connectivity management and entertainment.

though Argentina remains dominated by analog media, it is only a matter of time before mobile penetration matches these levels. This will have an impact on media consumption, as it is likely that people will shift their habits from checking the news on TV or the radio from doing so online via their computers or mobile devices. It will raise their expectations for stimulation, and we can assume that this is starting to manifest already. Online versions of certain newspapers have succeeded in establishing themselves as the mostvisited news sites. There is a dramatic increasing in the number of blogs that contribute to the political debate and offer news and opinions from various fields of expertise, which feed back into the workings of mainstream media. Interestingly, UGC is becoming increasingly popular in Argentina, with the top 10 UGC sites ranking among the country’s 40 most frequently visited websites. This gives UGC a central role, especially considering that these top 40 sites include seven search platforms, which encompass email and chat services, among other applications (google.com in the English, Argentinean, and Spanish versions, live.com, yahoo. com, msn.com, and bing.com). Four of them are social networks (Facebook, Taringa, Twitter, and Sonico), two are video platforms (YouTube and Poringa, the latter with adult content), one is a photo-sharing platform (Fotolog), two are blog platforms (Blogger and Wordpress), and one is the online encyclopedia Wikipedia. Finally, there is Mercadolibre, a buying and selling site. Interestingly, more big companies are expecting smartphone penetration to drive sales. For

TREND 2 — CURIOUS MIND

Europe can only sustain its position as an important player in the global economy, if its companies and institutions manage the full transition towards the knowledge economy.

Telefónica can develop mobile products and services that provide people with stimulation wherever they are, and complement or enrich their experiences using other devices.

In Brazil

100

Brazilians sometimes spend hours commuting to work and back. In some situations, this time could be cut to one hour. The public transport system is quite outdated and insufficient in most cities, but plans are in place to change this. In the meantime, these long commuting times open up opportunities for Telefónica to develop products and services that can stimulate people and help them fight boredom. We know that Brazilians actively engage in social networking, so we should look into ways to leverage their SN mobile activity to turn it into surprising, meaningful and playful experiences. For example, we could use our recommendation engine and add a ‘curiosity algorithm’, so that it prompts users to discover new topics based on their social media activity, their profiles and their contexts

(location/mood). We could ensure that these services can be downloaded whenever the user has access to 3G or WiFi and the content can be accessed when the user doesn’t have a connection. Additionally, given these long commuting times, battery life becomes a challenge and we should approach solutions to ensure people can stay connected for their entire journeys. We also know that there is a big push in Brazil towards bridging the educational divide, and m-learning services could be particularly helpful when people are commuting. Creating bite-size m-classes around popular topics would be helpful. Until recently, Brazilians didn’t need to use English at all. With a self-sustaining society and a history of military dictatorship that cut the country off from contact

The public transport system is quite outdate. Long commuting times open up opportunities for Telefónica to develop products and services that can stimulate people and help them fight boredom. with most of the outside world for 21 years, Portuguese was the only language anyone needed. Crianca Global (Global Child) is a government program put in place to prepare children so that they can actively participate in the opportunities that will open up because of the Olympics. Brazilians’ interest in global society has begun to shape national culture. Businessmen and women want to work for big, international companies. Young people want to study abroad in the United States, the United Kingdom and Canada. The English language, at least in some Brazilian circles, has begun to be seen as more sophisticated than Portuguese and

a key to opening new doors. It’s important for communicating with tourists and for traveling abroad, not to mention what it does for our linguistic and cognitive abilities. In Sao Paulo, private English-language schools have sprung up on nearly every block, with names like Wizard, Skill and Wise Up. If students are lucky, they get a native-speaking teacher. If not, they get a Brazilian who has already been out of the country and gets almost all of the grammar right. Private lessons tend to run from 50-100 Reals per hour, which is no easy feat to pay when minimum wage is R$545 a month. M-learning could be the perfect solution to help stimulate people through fun, playful, convenient and inexpensive learning experiences. Brazilians are equipped with rich diversity, natural flamboyance and creative free spirits. Providing them with products and services that push boundaries and appeal to their curious minds will be crucial, be they for health, education… or even financial services with Wanda. Gamification can be brought to most activities, while leveraging the concept of happiness as currency could lead us to create innovative reward mechanisms that will differentiate us from other operators.

TREND 2 — CURIOUS MIND

example, Walmart Argentina is launching the country’s first mobile application that lets customers scan the barcodes of any product with their smartphone, check the price and availability of merchandise at a local Walmart, and schedule home delivery or in-store pick-up. The free app contains prices, photos and descriptions of over 10,000 items that can be found at Walmart Supercenters in Argentina and online at walmartonline.com.ar. The new app’s Google Maps show the location of the nearest Walmart, as well as driving and walking directions. This shows the importance of enabling smartphone penetration to grow so that

101

Areas of Opportunity

Gamified experiences (across services) 2

Virtual and augmented technology 3

Discovery/recommendation based mechanisms 4

E/m-learning 5

M-advertising

102

TREND 3 — NEWBORN IDENTITY

Newborn Identity Trend 3 —

“Freedom in general may be defined as the absence of obstacles to the realization of desires.” Bertrand Russell 104

105

par

tici

pat

pro

ion

S CU MAR RA T TIO N

ima

gin

ati

STACCATO CULTURE

discovery

HA P HU PINE NT SS ER S

dre

nce

ta cep

nce

inv

PLE LT I U M ME

SOCIAL SHAKE-UP RY MO S E M NK BA

exp

lut

eri

ve hie

ion

legacy

INF L PA U E N C RA DE E

ent

evo

ing

interaction

tio

FOREVER GROW

ula

NE IDE WBO NT RN ITY

stim

realization

determination

nde

wle

CREATIVE BOREDOM

kno

dge

US RIO CU IND M

epe

sin

learning

CE AN D UN FO AB F IN O

ces

Our need for disruption and autonomy is evolving into a need for self-realization. Our connected selves can compare lifestyles and easily access new opportunities. Rebirth beckons daily. People will embrace the power of digital to reinvent themselves as newborn identities by creating multiple versions of themselves. Everexpanding horizons mean we can forever grow.

TREND 3 — NEWBORN IDENTITY

Main Trend Trend Manifestations Values

pri

vac

Go to: Newborn Identity website section 107

108 109

TREND 3 — NEWBORN IDENTITY

Newborn Identity: realizing ourselves by pushing the boundaries of our identity Technology is changing us because we want change and encourage it to happen. As citizens of the globally connected society, we will yearn to find our ‘better selves’. Our desire to fully realize ourselves will be triggered by the limitless opportunities that technology reveals. In a society that will put more pressure on innovation and creativity, finding what makes us unique and developing our skills will be key. “The fact that you can make endless changes to your [online] persona, […] searching for ways to improve that ratio of reinforcement, may make the synchronous internet environments even more compelling.”1 Game playing offers us a chance to experiment with ourselves and potentially find the characteristics around which we want to build our new identities. The information society shows us that we can and must improve ourselves - physically and physiologically. Some commentators advocate for the development of humans as cyborgs: beings with both biological and artificial (e.g. electronic, mechanical or robotic) parts. While this might seem a bit extreme for some, others believe it will soon be a reality. One thing is for certain: our notion of identity is no longer “fixed” and we will continue to manipulate it to a much greater extent in the future. Challenging our notion of identity helps us break free from cultural norms. Indeed, culture is a system of permissions. As explained by Ken Robinson: “It’s about the attitudes and behaviors that are acceptable and unacceptable in different communities, those that are approved and those that are not. If you don’t understand the cultural codes, you can look just awful.”2 He goes on to explain that the cultures we are raised in not only affect our values and outlooks, but also shape the structure of our brains. Studies have shown that the cultures we grow up in affect the basic processes by which we perceive the world around us. In a globally connected society, we have access to new ways of learning, comparing different cultures and transcending

In a society that will put more pressure on innovation and creativity, finding what makes us unique and developing our skills will be key.

110

Our notion of identity is no longer “fixed” and we will continue to manipulate it to a much greater extent in the future. Challenging our notion of identity helps us break free from cultural norms.

cultural codes. We can choose to follow new patterns of contagious behavior that are generated through the web and we have access to new opportunities for learning. Today and even more so in the future, it will be possible for all of us to study any subject virtually, thanks to technology. In a society where most of us will have to adopt multiple careers and take a proactive approach towards learning, knowledge will become crucial. Online courses, for example, have gained popularity as data and information open up to everyone, providing the chance to explore new horizons. A recent survey found that the number of online students is rising by almost a million a year. Approximately 5.6 million students were enrolled in at least one online course in Fall 2009. Research also found that the 21% growth rate for online enrollments far exceeded the 2% growth in the overall higher education student population.3 According to philosopher Julian Baggini, we all have the capacity to shape ourselves by creating our “true self”.4 By doing so, we will break away from our native cultures and invent new identities. Buddhism has long exposed the idea that “wise people fashion themselves.” Our Newborn Identities will constantly seek opportunities to learn, grow and keep pushing the boundaries. With adequate means and appropriate technology, we are limited only by our imaginations.

1 Wallace, Patricia M., The Psychology of the internet, 1999) 2 Robinson, Ken The Element, 2008 3 Sloan Survey of Online Learning, 2010 4 www.ted.com/conversations/.../ is_there_any_essential_part_of.html

TREND 3 — NEWBORN IDENTITY

Main Trend: Newborn Identity

111

“The fact that you can make endless changes to your [online] persona, […] searching for ways to improve that ratio of reinforcement, may make the synchronous internet environments even more compelling.” Patricia M. Wallace, author of The Psychology of the Internet

Navigating the digital world through “Multiple Me” The internet offers each of us the opportunity to build a Multiple Me collection of alter egos for the different facets of our digital lives. These virtual masks provide us with a sense of escape and fantasy by allowing us to lead the lives we cannot fullfil in the real world. We can create edited versions of ourselves, for a particular audience at a particular time. They enable us to highlight one aspect of our complex personalities and to dramatize it in a digital context. As technology improves, the boundaries between real and virtual identity become more and more blurred. A Stanford scientist testing children’s memories of virtual reality experiences found that at least half of them could not distinguish between what they really did and what they did in the computer simulation. Two weeks after swimming with virtual whales, 50% of the young participants interviewed believed they had indulged in the real world experience. 1 We are able to play with our notions of identity in an increasingly realistic manner with the development of avatars (the graphical representation of a user or a their alter ego/character) in 3D games and virtual worlds, and as 2D icons in internet forums and online communities. Philip Rosedale, founder of the virtual reality community Second Life, believes that by 2020 his online world will be indistinguishable from real life as people’s online and offline identities will be merged.2 In China, TrenCent, the largest social network has more than 500 million members with virtual names and virtual identities, photos and avatars. In many ways, our lives will become gamified because of our need to express ourselves in different ways. Gamification can be defined as the use of game design elements in non-game contexts.3 Some great examples include: The Xbox live, Nike+, Get Glue and Strivv. These digital experiences enable us to project ourselves in an unexpected way and discover, often through play, new abilities

We can create edited versions of ourselves, for a particular audience at a particular time. They enable us to highlight one aspect of our complex personalities and to dramatize it in a digital context.

114

and new facets of our personalities. Services and activities performed through virtual worlds such as Second Life, Habbo and Vivaty, have become increasingly prominent spaces for social interaction and therefore raised their economic value. It is predicted that the total number of people registered as virtual world users will exceed 1 billion by 2018.4 According to Linden Labs, the users of Second Life spent more than 160 million USD on virtual goods and services during the first quarter of 2010.5 Virtual worlds offer new business opportunities, not only to individuals, but also to companies. For example, automotive manufacturers Nissan and Toyota have a presence in Second Life, enabling visitors to purchase and customize virtual cars. Virtual worlds not only provide new opportunities for communication and social interaction, but also tools for self-expression, entertainment and leisure. Decorating one’s virtual space and dressing the avatar are means of developing one’s virtual identity. Games and events organised by virtual world operators are popular ways of being involved in virtual world happenings. The sub-communities within the virtual worlds, including guilds in World of Warcraft, reflect social dynamics and hierarchy among members.6 As this phenomenon develops, we will start questioning what makes a real life ‘virtual’ experience less real than a real life ‘physical’ experience. This is an interesting paradigm, which many companies are trying to address by introducing ‘physical’ tokens that validate an activity performed virtually. Foursquare badges or Kinect’s hard drive are good examples of this. These act as credible mementos proving that a task or activity has been performed (as well as rewarded) and by doing so, enhance the gamification of our lives. As we increasingly engage with the digital world, we experience greater needs to develop a Multiple Me to manage different aspects of our lives. Security and privacy issues are only just starting to emerge and are likely to present a growing concern in the future. Currently, most Facebook users hold one account, but we are witnessing a growing trend towards owning multiple accounts that separate different aspects of their lives and their associated networks.7 Multiple Me acts as a representation of the many facets of our personalities that we are willing to share with a digital audience. Unlike our real personalities, they can be controlled, manipulated or changed to suit our various needs.

Virtual worlds offer new business opportunities, not only to individuals, but also to companies

1,2 Douglas Rushkoff, Program or Be Programmed, 2010 3 Deterding, Sebastian et al, Gamification: Toward a Definition, 7 May 2011 4 http://www.kzero.co.uk/blog/ virtual-world-registered-accountsbreakthrough-1bn 5 Linden Labs 6 Matti Mäntymäki - Turku School of Economic, 2011 7 http://koldfront.dk/misc/hn/ facebook/data.png

TREND 3 — NEWBORN IDENTITY

Trend Manifestation #1: Multiple Me

115

“As people increasingly engage with the digital world, they experience a bigger need to develop Multiple Me - edited versions of ourselves, for a particular audience at a particular time.”

Using digital technology to Forever Grow “Forever Grow” is an aspiration that most of us harbor out of necessity. Many people therefore opt to obtain second degrees, invest more time in focusing on their careers or take time out to travel. This also means that we voluntarily put our private lives “on hold” and plan marriage and family for later stages. By 2020, life expectancy will reach 100 years and the Western population aged 50 years or older will continue to rise.1 None of us really want to imagine ourselves as an old person or as an old person looks. British philosopher Robert Roland Smith explains that one of the key reasons why people have mid-life crises is because they lose their abilities to project themselves.2 In other words, people struggle to see the bright side once they have stepped into the second part of their lives. However, Robinson argues, we now have “an entire extra ‘middle age’ these days, certainly we get additional opportunities to do more with our lives as part of the package. Thinking that we need to fulfill our grandest dreams by the time we’re thirty is outmoded.”3 Human lives are organic and cyclical; different needs and desires emerge at different stages of our lives. Dr. Carol Dweck, a professor of sociology at Stanford University believes in the importance for people to develop “Growth Mindsets”, in order to succeed in a society where uncertainty and pace of change will prevail. Growth Mindsets are characterized by the fact that each individual actively seeks to expand his or her abilities. They are more prone to risk-taking than people with fixed mindsets who gravitate towards activities that confirm their abilities. Digital technology through sharing, but also through play, can help us develop our Growth Mindsets.4 Most of our digital “actions” are not taught but experienced with a great deal of improvization, which helps us explore new abilities. Another aspect of blurred boundaries between “virtual” and “real” is our ability to project ourselves into new and exciting

These days, we certainly get additional opportunities to do more with our lives as part of the package.

118

situations. Technology can help us face new challenges, whether they are physical, professional, social, or emotional. Dr. Henry Lodge argues that “70% of American aging is not real aging. It’s just decay.”5 There is substantial evidence that computers can encourage fluid intelligence. In 2008, an exciting and influential study called Improving Fluid Intelligence with Training on Working Memory was published. It showed for the first time that it might actually be possible to increase our intelligence to a significant degree through training. Research indicates that as long as we keep using our brains in an active way, we continue to build the neural pathways as we get older.6 This means that we can keep on expanding our horizons and Forever Grow. Self-monitoring technology will also play a role in retaining or gaining new abilities. As M2M becomes ubiquitous, self-monitoring devices will be connected to other ‘things’ (referring to The Internet of Things) that will be updated depending on our needs. In terms of health and wellness, technology will be the “architect” of our aspirations to Forever Grow. Whilst GM (genetically modified) has been perceived as bad and scary, many experts believe that it will start to bear positive connotations, because genetically modified food will help us to lead healthier and longer lives. In other words: by living our aspiration to Forever Grow, we will fully embrace what technology and science have to offer and be willing to experiment along the way. As stated by actress Sofia Loren: “There is a Fountain of Youth: it is your mind, your talents, the creativity you bring to life and the lives of the people you love. When you learn to tap this source, you will truly have defeated age.”7

Especially in terms of health and wellness, technology will be the “architect” of our aspirations to Forever Grow.

1 UN Report World Population by 2030, published in 2004 2 Driving with Plato: The Meaning of Life's Milestones, 2011 3 Robinson, Ken, The Element, 2008 4 Sims, Peter, Little Bets, 2011 5 Lodge, Henry S., Younger Next Year, 2005 6 Jaeggi, Susanne M, Improving Fluid Intelligence with Training on Working Memory, 2008 7 As quoted by Willis, Wayne in Hope Notes : 52 Meditations to Nudge Your World, 2004, p. 11

TREND 3 — NEWBORN IDENTITY

Trend Manifestation #2: Forever Grow

119

“To be living our aspiration to Forever Grow we will fully embrace what technology and science have to offer and be willing to experiment along the way.”

Trend 3 Newborn Identity Facts

122

Insights

128

Case Studies

131

FACTS

MILLION PEOPLE THINK THAT ANONYMITY

ALLOWS EXPRESSION OF OPINIONS WITHOUT REPERCUSSIONS, FUELS CREATIVITY AND EXPERIMENTATION, AND ENCOURAGES AUTHENTIC CONTENT SHARING.1

TOTAL estimated NUMBER OF REGISTERED USERS IN VIRTUAL WORLD WILL BE EXCEEDING BY 2018.2

1,800

MILLION

REGISTERED VIRTUAL WORLD ACCOUNTS LISTED THE 4TH QUARTER.4

400 MILLION others

122

COMPETITION IS EXPECTED TO BECOME EVEN MORE HEATED AS THE MARKET IS ANTICIPATED TO GROW FROM THE CURRENT 150 TO AROUND 900 VIRTUAL WORLDS IN TWO YEARS TIME.3

600 MILLION 15-25 year olds

TREND 3 — NEWBORN IDENTITY

BILLION

FACTS

HABBO, THE LARGEST VIRTUAL WORLD FOR TEENAGERS, ADDED TENS OF MILLIONS OF NEW CUSTOMERS IN 2010.5

800 MILLION 10-15 year olds 123

TREND 3 — NEWBORN IDENTITY

21.6

MILLION

REGISTERED AVATARS IN SECOND LIFE (EACH USER CAN ONLY HAVE ONE AVATAR).7

A JUNE 2010 STUDY CONDUCTED BY THE US-BASED ELEARNING! MEDIA GROUP FOUND THAT :

64%

BILLION IN 2011 COMPARED

OF ALL CORPORATE RESPONDENTS HAVE IMPLEMENTED VIRTUAL LEARNING WITHIN THEIR Organizations.

FACTS

THE NUMBER OF AVATARS IN THE VIRTUAL WORLD REACHED

WITH 400 MILLION OF AVATARS IN 2009.6

18%

OF ALL CORPORATE RESPONDENTS PLAN TO ADD virtual learning WITHIN THEIR Organizations. 124

21%

PERCENTAGE OF ENTERPRISES WHICH WILL GROW BY 250% OVER THE NEXT YEAR IN VIRTUAL WORLDS FOR LEARNING, ACCORDING TO THE SAME STUDY. 8

125

MILLION AMERICAN YOUTH PARTICIPATE IN ONLINE EDUCATION TODAY.9

126

15% IN EUROPE,

OF EMPLOYEES HAve USED SERIOUS GAMING AS PART OF THEIR LEARNING ACTIVITIES.10

2 Caoili, Eric, Strategy Analytics: 1 Billion Virtual World Users By 2018, 2008 3 Kzero Report Virtual Worlds 2010 and beyond, published 2009 FACTS

FACTS

AN ESTIMATED

TREND 3 — NEWBORN IDENTITY

1.5

1 www.networkworld.com/community/ blog/4chan-founder-mootanonymity-authenticity-zuc

4 KZero Report, Universe Q4 2011, 2010 5 Mäntymäki, Matti Continuous use and purchasing behaviour in social virtual worlds Turku School of Economic, 2011 6 www.slideshare.net/BillSheridan/ learning-with-avatars 7 www.slideshare.net/IleneF/beyondsecond-lifeacrlfinal-version 8,10 www.slideshare.net/JeremyBlain/therise-of-virtual-learning-2011" http:// www.slideshare.net/JeremyBlain/therise-of-virtual-learning-2011 9 Hanover, Nancy, Outsourcing Education: The rise of Virtual Schools, World Socialist Web Site, 31 August 2011

127

INSIGHTS

Virtual Doppelgangers

Virtual Doppelgangers are virtual versions of the self. Users of online and video games create these 3D avatars to make the game experience more engaging. Doppelgangers are increasingly used in social research as well as to understand how humans may be affected by confrontation with virtual versions of themselves. This is based on well-established psychological theories, including social cognitive theory (social learning theory), media richness theory (information richness theory), and self-perception theory. The findings of one series of studies suggest that Doppelgangers can show the rewards of exercise and balanced eating habits, changing people’s health-related behavior as a result. Other studies showed that Doppelgangers are powerful marketing agents that can be used in advertisements to create favorable brand impressions among consumers.2

Autonomous Age

Connected devices will not only gather data and share it with each other. They will learn from it, using cognitive recognition: “Devices will learn your feelings, moods, and habits, and the way you interact with the device itself”, says Paula Zuccotti, head of research and associate director at global innovation company, SeymourPowell.3 Linked to the “Internet of Things”, our devices will be aware of events that may affect us, such as changes in the weather. “If a device also has that element of prescience, it can anticipate your actions without having to ask you.” Early versions of the technology already exist, such as Nokia Beta Labs’ Nokia Bots, which learns users’ behavior. “It will work out who you call most frequently and automatically include them as shortcuts on the home screen”, explains Nokia’s Roope Tassberg. “It can also distinguish when you are at home or work, and provide different top contacts at each learned location.”4

128

Intention Recognition

As the “Internet of Things” grows, more of the world will be networked until there is an “internet of Everything”. Machines will make it easier for other machines – and brands – to deliver what we need. The RoboEarth project already aims to create a worldwide web for robots – a robo-net – that will enable robots to gather and share data in order to build a world picture and complete tasks more efficiently. A robot could map and locate a building using GPS. Any other robot on the same GPS coordinates would then be able to download the first robot’s map of the building, and refine it.5

After simple command recognition, machines, devices, and services will learn to recognize our intentions and pre-empt our responses. “Perhaps a decade from now,’ says Google CEO Eric Schmidt, “you will think, well, that was interesting, I used to type but now [the system] just knows.”6 Intention recognition is already available to a select few. The flyby-wire systems in planes such as the Dassault Falcon 7X business jet, work out the pilot’s intended flight path and adjust the plane’s avionics accordingly. Rather than using fluent, intuitive design and technology to simply sell products to consumers, brands will also use intention recognition to provide better service, becoming helpers, educators and enablers. “Intuitive futures will create an economy of customer service and help, where brands are very nice, helpful people, instead of just pushing useless information”, says cyborg anthropologist and founder of location-based platform Geoloqi, Amber Case.7

TREND 3 — NEWBORN IDENTITY

RoboNet

INSIGHTS

“Anonymity allows us to share in a completely unvarnished, unfiltered, raw way and think that’s something that’s extremely valuable.”1

129

TREND 3 — NEWBORN IDENTITY

Kaizen-omics

INSIGHTS

CASE STUDIES

Self-quantifying consumers will adopt the philosophy of Kaizen, the Japanese term for ‘improvement’ or ‘change for the better’, by analyzing the data stored in their Memory Banks for insights and information to improve their lifestyle choices and purchases. As we get closer to the idea of a central repository for the most important data in our lives, we gain the ability to do analytics, to become smarter about who we are, to live better, safer and healthier lives and to make smarter decisions for our kids. “Those analytical tools should not just be in the hands of companies analyzing our data that they capture. They should be in the hands of individuals looking to become smarter about who they are.”8

The Learning Shoe

130

1 www.networkworld.com/community/ blog/4chan-founder-mootanonymity-authenticity-zuc 2 Bailenson, Jeremy N.,Segovia, Kathryn Y. Online Worlds: Convergence of the Real and the Virtual, Human-Computer Interaction Series, 2010 3, 4 www.lsnglobal.com 5 www.roboearth.org

6 Ahmed, Kamal, Google's Eric Schmidt predicts the future of computing - and he plans to be involved, The Telegraph, February 2011 7 www.ted.com/speakers/amber_case. html 8 www.personal.com

The Learning Shoe concept by design studio Fuseproject combines fluent design and technology. It contains a chip that monitors the wearer’s feet and gait, and adjusts the sole material accordingly. The information can be transferred to any new shoe, creating a product with personalized ergonomics. Designer Yves Behar says: “It is a smart product that gets better, creates a lasting relationship with the company by constantly improving the fit and feel of it, and made of a singular material that is easy to recycle into the next version… that’s my ideal product and brand.”

fuseproject.com 131

TREND 3 — NEWBORN IDENTITY

Smartfish’s ErgoMotion keyboard monitors a user’s typing activity and hand position. It responds to changes in the user’s typing by changing shape, forcing the typist to reposition his or her hands to reduce the risk of repetitive strain injury.

getsmartfish.com

MOTOACTV

CASE STUDIES

Smartfish’s ErgoMotion

An ultimate fitness device was launched by Motorola in 2011. The little running mate sports a 600MHz processor, runs on Android and weighs a healthy 35 grams. It tracks the user’s heart rate, logs running, walking and cycling statistics, and packs GPS to track exercise routes. The Nike+ competitor is unsurprisingly sweat and waterproof and can hold up to 4,000 songs. It also offers FM radio and audio “coaching”, which updates on pace and distance. It also can be synchronized with an Android phone to send and receive calls and sms. MOTOACTV's AccuSense™ sensors and GPS track distance, speed, pace and heart rate so users can monitor their workouts with pinpoint precision. Data can be analyzed at MOTOACTV.com and on Android devices.

motoactv.com/ goo.gl/E5FoM 132

133

TREND 3 — NEWBORN IDENTITY

Motorola's new RAZR mobile handset comes with something called Smart Actions, which allows the user to control the conditions under which the phone automatically does things: i.e. you set up a rule for the phone. Rules are things such as muting all alerts or dimming the display. Once users set a rule, they choose a trigger that causes the phone to follow it. Rules can be applied to the text messaging application, notifications, ringtones, wallpapers, browser, display/brightness settings, etc. Triggers for the rules can be set to the occurrences based on the battery level, incoming/missed calls, motion detection or time of day.

goo.gl/n6pUo goo.gl/rvjI7

Swimtag

CASE STUDIES

Motorola RAZR

Swimtag is a training aid that monitors progress in the pool, aiming to make swimming more “engaging, interactive and fun.” This wristband can monitor the swimmer’s split times, stroke rate and stroke type, as well as the number of lengths swum. Performance data and statistics are automatically analyzed and uploaded to the user’s account, which can then be viewed online on a smartphone or laptop. Records of performances are kept and training targets can be set, incorporating distance, calories and speed. Swimtag also offers specific training plans, designed to help swimmers lose weight or improve their stamina. The launch of the Swimtag iPhone in May 2010 was a success, generating sales of between 4,000 and 5,000 apps in more than 45 countries.

goo.gl/7ZxpF 134

135

Updated information at: globaltrends.telefonica.com/trends/trend3.aspx

Newborn Identity demonstrates the impact that digital technology will have on the creation and shaping of our identities. We will embrace the power of digital to create multiple versions of ourselves and to express the different facets of our lives and personalities. Digital technology will also enable us to explore new paths for growth. We have the opportunity to help people fully embrace this trend in the following ways: 1.

138

Creating identity management products and services

Digital tools enable people to build different versions of themselves. Our engagement in identity ‘multiplication’ through various digital personas with different levels of sophistication (from pseudonyms to avatars), creates a need for managing these various identities in a simple and secure way. Industry groups such as the World Wide Web Consortium (W3C) and The Open Group are developing standards that will enable global identity management, in which each individual can be uniquely identified, and all applicable data wowill be linked to that identity. It is important, that these ‘identities’ remain in the possession of the users. We know that people often create these identities for social or entertainment purposes, two activities that are performed mainly from mobile devices. We can develop services that help people create different, personalized communication channels that are allocated to specific aspects of their lives and/or personalities, which they can control easily and in which their identities are securely protected. TodoBravo, Everyme and Pair are already trying to offer this, but none yet offer an integrated experience or have reached critical mass.

Provide access to virtual and augmented experiences 2.

More people are engaging in virtual worlds than ever before. Digital natives view virtual and augmented experiences as compelling because they enable them to explore different facets of their personalities, in an interactive and playful manner. Oxford University professors have developed The Quantum Parallelograph, a project that gives users a glimpse of their lives in different parallel universes. The user simply tunes the search intensity and the device uses online sources to print out a short statement about his or her alternate realities. Virtual and augmented reality is being increasingly used to create engaging experiences for consumers. The publishing industry for instance, is targeting the iPad generation with virtual worlds that can complement the printed book. For example, Random House has a global deal with the Stardoll virtual world, which has 150 million users, to create interactive stories. In the past, some of these stories have received more than 17 million views. Virtual and augmented experiences are a way to capture the imagination and attention of digital natives. These experiences can be built on top of our existing services especially for health, education/learning and advertising.

TREND 3 — NEWBORN IDENTITY

Implications

139

TREND 3 — NEWBORN IDENTITY

Investing in Intellectual Technologies that can provide new ways of learning

The term ‘Intellectual Technologies’ was coined by sociologist Daniel Bell, and refers to the tools that extend our mental rather than our physical capacities. Digital technology enables people to uncover new life aspirations. Intellectual Technologies can provide ways to satisfy them. Online courses are gaining popularity as most of us realize our thirst for lifelong learning. This will increase as we adopt multiple careers, and access to Intellectual Technologies will become crucial. Leveraging the data we have about our users will enable us to develop highly personalized and individualized Intellectual Technology experiences that can provide lifelong learning. This is going to become increasingly important for digital natives, who will not be satisfied with ‘fixed knowledge’, and it will also prove vital for the aging population, who will seek to retain high levels of efficiency. Intellectual Technologies can provide a holistic learning system that helps users improve their overall mental performance.

140

Developing monitoring/tracking technology for personal improvement 4.

In their quest to become successful and reach their full potential, people will turn to technology to monitor and track their progress and achievements. They are several products and services already on the market, such as Up, by JawBone, or Basis, a device worn as a wristwatch, that tracks heartbeats and employs particular technologies to paint a holistic picture of a user’s personal health and wellness. The information and feedback delivered to each individual is customized, based on personal data analyzed by the Basis science team. Researchers at MIT have gone a step further by creating a wristband that can track an individual’s whereabouts and adjust the temperature of the building according to how they feel. The WristQue is equipped with sensors that can detect changes in temperature, light and humidity. WristQue can also track the wearer’s movements around the building and learns behaviors over time. That way, it can predict which room the wearer will go to next and adjust the temperature to their liking before they even get there. This helps reduce energy usage. We have a great opportunity to help people monitor and track their activity and performance across a spectrum of devices, making the analysis even more personalized, holistic and accurate. This is especially important for our health products and services, but also for learning and education.

141

Making a commitment to actively target the aging population

We are going to be faced with a majority population aged 50+ in the West, which will have very specific needs and expectations when it comes to technology. At present, our efforts to understand this important segment are limited. We should research this demographic in greater depth to understand its needs and motivations with regards to technology. Aging consumers will rely on digital technology to retain high levels of efficiency and to learn new skills. This generation wasn’t born with digital technology, but is catching up with the medium quickly. All the figures in terms of digital activity are rising among users within this age group. We need to ensure we uncover their unique behaviors in order to develop the right innovation for them. By 2020, people aged 50 and over will control 58% of global consumption power, making the monetization of this group increasingly relevant.

In Spain The total internet audience in Spain stands at over 25 million and is steadily increasing year on year. Internet users in Spain spend most of their time on portal sites, instant messengers and social networking sites. Social networking activity is increasing in Spain and is amongst the highest in Europe. Currently, more than half of all internet users use social networks, and microblogging activity is also on the up. Spaniards primarily use social networks for fun and to stay in touch with friends. Given the current economic climate and the fact that unemployment is high and getting higher, it is likely that in the future more people will use social networks for self-development and for professional or educational purposes, to create greater opportunities for themselves. This will generate new needs for helping people manage their digital identities and reputations.

Social networking activity is increasing in Spain and is amongst the highest in Europe. Currently, Spain’s online education systems are not particularly noteworthy – they pretty much resemble the overwhelming majority, elsewhere in the world – but they have a few unique programs that other countries may not offer. There are, for example, online culinary classes in Spain, or online art programs.

142

Most of these will not offer degrees (at least not accredited degrees), but they still offer high-quality courses that can help to advance a career or just to impart some skills and knowledge that the student might otherwise have lacked. This is interesting in the context of lifelong learning. Telefónica currently offers broadband customers access to Aula 365, an online education portal for children. We could develop this idea further and offer online classes related to technology, to young people, so that they can learn new skills and have better chances of finding a new job. Additionally, digital technology can help manage the ageing population. Current data for Spain shows 17%, of the population, or seven million people, aged 65+. Projections suggest that over-65s will constitute more than 30% of the population by 2050 (almost 13 million people), and the number of over-eighties will exceed four million, thereby representing more than 30% of the total adult population. This will make Spain the world’s oldest country by 2050. We have the opportunity to use digital technology to help this group to retain higher levels of efficiency and to stay connected to society. Ensuring that we develop digital products and services that appeal to this segment and respond to their specific needs could open up many opportunities beyond health products and services. For example, monitoring technology could be used in the context of learning services and the smart home.

TREND 3 — NEWBORN IDENTITY

143

styles. E-learning makes this possible as it allows for feedback, self-pacing, and discovery learning. More than 800 universities worldwide have active iTunes U sites, and more than 350,000 audio and video files have been uploaded from universities around the globe – including China, Mexico and Japan. As some of the most prestigious schools, such as Harvard, MIT and Stanford begin to offer free online courses; people are more likely to engage with these promising new opportunities for learning. Telefónica UK has the O2 Learn platform, which offers free online classes related to the curriculum. The next phase for O2 Learn could be to aggregate some of the best classes available online and to make targeted recommendations based on users’ data. Furthermore, the concept of lifelong learning seems particularly relevant in the UK. The Open University has been providing courses for many years and over 600 of them are now available online for free. Lifelong learning is going to become crucial for the aging UK population that wishes to remain in employment. Britain’s aging population is growing at its fastest rate since the 19th century and is proWith increasing tuition fees and subjects jected to hit 70 million by 2027. With less being dropped from the curriculum, online people participating in pension schemes, learning offers a cheaper and potentially and higher life expectancy, digital techmore comprehensive opportunity. What’s nology can enable longer working lives more, e-learning platforms are increasing by providing tools with which people can in popularity. For example, WizIQ offers train themselves and learn new skills. Adtext chat, audio/video conferencing, poll- ditionally, monitoring technology can help ing, high-tech virtual classrooms, and re- people to take a proactive approach tocordable sessions. People generally learn wards their health and to remain healthier better when multiple sensory modalities for longer. The O2 Healthy app is a first are engaged, and when the environ- step towards achieving this. It could be ment and approach suits their learning developed to include more sophisticated In the UK, people are used to taking matters into their own hands. Researchers have found that Britain is the most individualistic society in the world – one that values the self over the group more than any other country. In this context, digital technology plays an enabling role for selfrealization, and it is hardly surprising that the UK has the highest social networking and microblogging activity in Europe. Indeed, UK citizens embrace digital tools to find ways to realize their true potential.

Britain is the most individualistic society in the world – one that values the self over the group more than any other country. In this context, digital technology plays an enabling role for self-realization.

144

monitoring and tracking technology to can help support the people’s developevaluate users’ progress by including sen- ment needs in easy, inexpensive and efsors and using their data profiles to proficient ways. vide targeted messages. Such applications are important because they provide tangible demonstrations that Telefónica

TREND 3 — NEWBORN IDENTITY

In the UK

In Germany Germany offers plenty of opportunities for Telefónica to help people with self-development and learning so that they can become successful and participate in the Project Economy. According to a recent study, Germans do not feel that their current education system prepares them for the future or enables them to fully realize themselves to their true potentials. Germany’s three-tiered school system, which divides students into one of three different schools after the fourth grade, according to ability, has been reported to often cause social inequalities. As a result, there is an overwhelming number of young and

We have the opportunity to help people access these digital tools and to help them develop or learn new skills so that they can create better futures for themselves.

unqualified workers, which is expected to exceed the number of jobs in this sector by some 1.3 million over the next 15 years. Rural areas are already feeling the effects, as Germany’s labor shortage draws younger residents to bigger cities, where companies are fighting to attract skilled workers. Digital technology can bring education, learning and self-development tools to these people, providing ease of use at an affordable price. We have the opportunity to help people access these digital tools and to help them develop or learn new skills so that they can create better futures for themselves. In Germany, Telefónica could set up a similar e-learning platform to O2 Learn in the UK, where aspiring students can access online classes freely. We could also use Wayra to reach out to this young population, inspire them to start their own businesses and teach them about the values of entrepreneurships through the Wayra academies. This could be especially helpful for young people who are struggling to get into job training programs because of their lack of qualifications. Additionally, Germany’s rapidly ageing population reveals the importance for Telefónica to engage with that group and

145

We can develop products and services geared towards helping the aging population maintain good health and high levels of efficiency, through monitoring and tracking technology for health and for lifelong learning. old age would be far less of a strain on public finances. We can develop products and services geared towards helping the aging population maintain good health and high levels of efficiency, through monitoring and tracking technology for health and for lifelong learning. Additionally, we can develop enterprise solutions that facilitate remote and mobile working, so that people can work in a more flexible manner (See Micro Mightiness Implications).

In Argentina

146

In Argentina, access to education remains an issue/a sore subject, despite the fact that over half of the population owns a computer. Whilst digital natives in Argentina are able to harness the opportunities for education revealed by digital

technology through online educational platforms such as Telefónica Aula 365, the situation is different for older adults. According to a recent study, less than 3% of older people attend school (138,177 in the entire country), and 6% of the older

In Argentina, access to education remains an issue/a sore subject, despite the fact that over half of the population owns a computer. population is illiterate (283,529 people). This lack of education is more obvious among women, and varies according to different areas of the country. Even if there are non-formal educational alternatives for older adults in big cities (e.g. university programs for older adults), many of them are not free of charge, nor sufficiently institutionalized in state universities. Every effort must be made to reduce the gender and generation gaps, through the creation of adult literacy campaigns, completion of primary and secondary education and implementation of courses about the use of New Computing and Communication Technologies (TICs). Argentina’s elderly population represents 10% of the total population, and the number is rising, which opens up opportunities for Telefónica to use digital technology to provide these people with lifelong learning tools. While there is no single agency overseeing all senior citizen issues in Argentina, the Ministry of Work, Employment, and Social Security has implemented the Elderly Plan (Plan Mayores). This program brings together the various laws, benefits, and government programs available to people over the age of 70. It also includes

information about the Integrated Medical Attention Program (Programa de Atención Médica Integral / PAMI), which is the state-run program in Argentina for senior healthcare. We can identify opportunities to develop products and services for the aging population that seeks ways to maintain good health and improve wellbeing. In order to achieve this, we need to identify how to best encourage them to engage with digital technology. Besides monitoring and learning services, health services seem to represent a lucrative opportunity in Argentina. 35% of the older population has some type of disability. That is to say that one in three of them potentially needs some kind of support in order to integrate into society. Nine in ten disabled senior citizens are helped by their families (mainly women) to perform daily life activities. The National Program for Home Care is a fundamental tool that guarantees elderly people’s right to grow old at home. We can help in many ways, as digital technology can help train carers, and provide home monitoring solutions for ageing and/ or disabled people. Some projects in the health and M2M areas seem particularly relevant for this. We need to make sure we leverage our innovations to create differentiating products and services that can help Argentina remain pro-active towards managing its growing aging population.

TREND 3 — NEWBORN IDENTITY

understand their specific needs. The current trend in Germany towards an aging population is seeing numbers of older people rise as life expectancy increases, while the number of young people is decreasing dramatically. Research into Germany’s demographic trends predicts that by 2050, as a consequence of increasing life expectancy, people will have to work until the age of 72. This is believed to be necessary to balance the cost of an ever-growing pension budget. In 2050, the German population is predicted to have a life expectancy that is approximately ten years greater than that of today. Preferred social models indicate that people should work half of their lifetimes, and with this in mind, the German government is suggesting that citizens work five years longer, lengthening the working lifetime from 67 to 72 years. Many scientists and statisticians now argue that prolonging life by ten years means extending good health by a similar period. One way of dealing with this increased life expectancy would be to ask citizens to work longer and retire later, but to work less hours for a shorter working week. This way, they would have more “quality” time to spend with their families, or engaged in leisure pursuits throughout their lives, and their extended

147

prepare the students well enough to be successful according to university standards. There seems to be an opportunity here for Telefónica to bridge this gap by providing complementary educational resources for elementary/secondary school students to help them prepare for university. This could be done through the O2 Learn format in the UK, which relies on UG content, or in partnership with educational providers, or by aggregating existing online educational resources. As we know that Brazilians are very active on social networks, we could ensure that their learning achievements are tracked and shared through their networks for motivation and support. This could prove particularly important for young Brazilians in rural areas who might feel disconnected from other students, or for those who lack family support at home. Being able to share learning activities with other students will provide the peer support they need in order to succeed. It could also be used to ask questions to teachers and other students, and provide self-development opportunities. Brazil’s elderly population is growing at nearly triple the rate of its overall population. By 2050, at Today, more and more undergraduate least 30% of the Brazilian population will courses are being offered online, only re- be aged 60 and over and life expectancy quiring that the student goes to the uni- will reach 81 years of age. Telefónica has versity a few times during the school year. the opportunity to use digital technolBrazil has emerged as a highly lucrative ogy to help support the needs of these education market, although it still lags people. Currently, two out of every three behind its Latin American counterparts Brazilian retirees reenter the workforce in terms of market penetration. There is because their retirement incomes are a shortage of good secondary schools in insufficient. It is important that we proBrazil. As opposed to the free universities vide the ageing population with products that offer quality education, the public and services that enable them to remain elementary/secondary schools do not in the workforce and support Brazil’s More than half of young Brazilians dream of getting access to professional training and employment. In fact, regardless of their social class, an overwhelming majority of Brazilian youngsters (74-79%) intend to go to college. Self-realization is very strong amongst this demographic. Young Brazilians aspire to find the careers of their dreams. In order to achieve their educational goals, most Brazilian internet users see the web as an educational tool, and one often used as a source for school papers. With the advent of online education, Brazil currently has 1.2 million online students. Initially, most of them were elementary school teachers who were updating courses, or graduation students.

We can educate people on how to become ‘opportunity’ entrepreneurs.

become ‘opportunity’ entrepreneurs and we can demonstrate how digital technology can help them develop successful businesses (See Micro Mightiness implications). The aging population also has an impact on the requirements of the city. Telefónica could offer digital solutions to ever-growing economic development. It help cities manage this aging population, is often difficult for elderly Brazilians to in terms of health, and also mobility and find employment in the corporate world, connectivity services. and this could explain Brazil’s high, necessity-driven entrepreneurial activity. With Wayra, we can educate people on how to

TREND 3 — NEWBORN IDENTITY

In Brazil

Regardless of their social class, an overwhelming majority of Brazilian youngsters (74-79%) intend to go to college.

148

149

Areas of Opportunity

Identity management

Monitoring/tracking technology

Connected/Smart home

TREND 3 — NEWBORN IDENTITY

Areas of Opportunity

Voice recognition technology

Personalized and individualized learning services

Virtual and augmented technology

Smart cities (use data to make cities more efficient) 5

Intellectual technologies

150

M-health 10

M-education/learning

151

T R E N D 4 — social sha k e - u p

Social Shake-Up

Trend 4 —

“Happiness can exist only in acceptance.” George Orwell 152

153

reputation

INF L PA U E N C RA DE E

RY MO S E M NK BA

pri

Main Trend Trend Manifestations Values

exp

legacy

m edo

ie ach

PLE LT I U M ME

SOCIAL SHAKE-UP

vac

lut

ion

eri

vem

ent

Our need for solidarity and harmony will evolve into a need for acceptance. Digital technology enables people to shake up social norms and embrace new ways of interacting. ‘Social’ is becoming the new capital as ‘social influence’ now trumps ‘social status’. People will measure their influence and compete for attention as part of a global influence parade. Over time, memory banks will track our performances and allow us to reminisce about our digital lives.

T R E N D 4 — social sha k e - u p

nce

ent

evo

interaction

ta cep

inv

FOREVER GROW

realization

nce

GR G R E AT OU PS

fre

NE IDE WBO NT RN ITY

M ME A

determinatio

nde

tio

ATIVE EDOM

epe

ula

S OU ND

O CR SS MI TINE GH

ind

stim

Go to: Social Shake-up website section 155

156 157

T R E N D 4 — social sha k e - u p

Social Shake-Up: finding acceptance by embracing our digital lives Research has proven that individuals who have rich social lives tend to have rich digital lives as well. A recent study indicates that the use of social networking sites (SNS) is associated with greater levels of social capital (access to new information through a diverse set of acquaintances, and deriving bonding or emotional support from close friends).1 As social influence is replacing social status, we yearn to become part of a group and interact in different circles of friends and relationships. Whether for personal or professional purposes, we are embracing social media. Applications based on social validation will become the norm in the future.2 We are considered less as individual entities as these networks become more apparent. In fact, they are perceived as “webs of interconnectivity”. We belong to these circles in order to expand our notions of identity beyond the one defined by our families. As most of us will live in single households, physically disconnected from our friends and family, this feeling of acceptance from multiple groups will become crucial to our well-being.3 Some social networks are linking their members according to the data on their profile (interests, locations etc). For example, Modamily, a New York-based private social network for people (within the US) looking to co-parent a child, uses mechanisms to match their own compatibility with the potential co-parent’s families and relatives. In the future, technology will help make certain aspects of our daily lives, such as learning, reading or even shopping (activities that are largely not regarded as experiences to be shared with another) more social: “Soon, books will literally have discussions inside of them, both live chats and asynchronous exchanges through comments and social annotation. You will be able to see who else out there is reading that book and be able to open up a dialog with them”.4 However, as we fully embrace social media, we become aware of our privacy and our desiere to protect it. Culture, age, and education

As most of us will live in single households, physically disconnected from our friends and family, this feeling of acceptance from multiple groups will become crucial to our well-being.

158

influence our notion of privacy. Research has found that SNS users with higher levels of education are more concerned about their online privacy than those with less education. Additionally, a recent study has revealed that the majority of SNS users (almost 80%) are aware they could be fully identified through their online profiles and that they might expose their identities to complete strangers. In regard to the application of privacy settings, 2 out of 5 SNS users are not mindful about sharing personal information and do not modify settings to restrict access to their profiles or wall postings. This may be due to a lack of understanding of the possible risks this entails, such as identity theft. This raises a number of concerns regarding the awareness of SNS users.5 As the internet becomes an integral part of people’s lives, their eagerness to increase their social influence will grow. However, rising privacy issues will shake up the dynamics of daily interactions and throw established social norms into question.

Rising privacy issues will shake-up the dynamics of daily interactions and throw established social norms into question.

1 Burke, Moira, Marlow, Cameron, Lento, Thomas Social Network Activity and Social Well-Being, 2011) 2 http://blur-marketing.com/blog/ trends-and-statistics-in-locationbased-services 3 Euromonitor International One Person Households: Opportunities for Consumer Goods Companies, 2007 4 Johnson, Steven How E-Book Will Change the Way We Read and Write, Wall Street Journal, April 20, 2009) 5 Michael Lane, Michael, Shrestha, Anup An empirical analysis of SNS users and their privacy and Security Awareness of risks associated with sharing SNS profiles (online Identities) The 11thInternational Conference on Electronic Business, Bangkok, 2011

T R E N D 4 — social sha k e - u p

Main Trend: Social Shake-Up

159

“As social influence is replacing social status, people yearn to become part of a group.”

Becoming part of the Influence Parade In 2010, SNS users created 900 exabytes of personal information. Foursquare’s six million users checked in at more than 380 million locations1. By September 2011, more than 100 million active Twitter users were producing 230 million tweets a day (IDC).2 We are engaging in an online Influence Parade where we showcase our savoirvivre, our passions, our likes and dislikes for our friends, families and sometimes the whole world to see. Our degree of popularity and power is dependent on how influential our contributions are and how contagious the behaviors we create become. We actively engage online because we know our participation can have a tangible impact on our real lives. Facebook recently launched a service that predicts users’ job performance, and is looking into leveraging its users’ activity. Facebook apps such as BranchOut and BeKnown are tapping into the social network’s 800 million active users and enabling them to use information shared on Facebook to create professional profiles, upload work information and network with other professionals. BranchOut now attracts about a million monthly visitors, while BeKnown has only 170,000 (compared with LinkedIn’s 95 million visitors a month). Additionally, companies like PeerIndex provide analytics based on footprints from the use of major social media services (currently Twitter, LinkedIn, Facebook and Quora). As part of an emerging group of social media analytics providers, PeerIndex helps social media contributors assess their influence and currently tracks 45 million Twitter profiles. The system measures influence by “activity”, “audience”, and “authority”. These metrics were chosen to maximize relevance and insight, while minimizing vulnerability to gaming, spambots and other noise. “Authority” measures how relevant our activities are to the community (e.g. it gets boosted whenever others like, comment, and/or engage with a user’s activity). “Audience” measures a users’ relative audience to the rest of the population, while “Activity” measures and compares activity.

We are engaging in an online Influence Parade where we showcase our savoirvivre, our passions, our likes and dislikes for our friends, family and sometimes the whole world to see.

162

PeerIndex recently partnered with Deezer, the music streaming platform, to connect with music influencers by offering them free accounts. This is a great way to reward us for our contributions and encourage us to create/develop our profiles in order to get access to such rewards. According to Henri Tajfel and John Turner, we derive a sense of who we are through affiliation with specific groups and tend to associate ourselves closely with groups that are likely to boost our self-esteem.3 Our degree of digital influence is measured according to how far our ideas spread across the web. In a way, the digital world has become a ‘Battle of the Memes’, where only the strongest ideas will survive. Malcolm Gladwell defines a meme as “an idea that behaves like a virus-that moves through a population, taking hold in each person it infects." In order to create strong memes, it is important to have an understanding of cultural codes, “an unconscious meaning we apply to a given thing”.4 Ideas can only spread if they bear some relevance to a specific culture and audience. In a globally connected society, in order to win the influence parade, we must to learn how to either transcend cultural codes or specifically appeal to them. Contributing to the social realm enables us to feel accepted and adds to our overall well-being by providing us with a sense of purpose. As we build up our influence, we recreate virtual social support systems resembling the ones we associate ourselves with in our “real” everyday lives. Our need for social acceptance and for developing our social influence will encourage us to participate more actively (e.g. engage in the action of others, comment on and share ideas). With the growing accessibility of media, these virtual experiences will feel more real and contribute to our fulfillment. Therefore, we will slowly create a collective individuality, where none of what we say, write or do can be linked to a single individual.

T R E N D 4 — social sha k e - u p

Trend Manifestation #1: Influence Parade

Our degree of digital influence is measured according to how far our ideas spread across the web. In a way, the digital world has become the ‘Battle of the Memes’, where only the strongest ideas will win.

1, 2 (IDC) 3 Henri Tajfel and John Turner Social categorization and social discrimination in the minimal group paradigm, Differentiation between social groups: Studies in the social psychology of intergroup relations, London, Academic Press 4 Rapaille, Clotaire The Cultural Code, 2006

163

“We actively engage online because we know our participation can have a tangible impact on our real lives.”

Tracking our lives and reminiscing with our digital “memory banks” Every time we engage online and make digital contributions, we leave a trace. We create “memory banks” without being fully aware of doing so. Technology keeps memories of all the data we have generated online. This will allow us to track our digital encounters and measure our digital footprints (legacies). Human memory is fleeting and organized contextually. Items are linked together in complex associative webs and are retrieved by clues rather than location. Ideally, the desired item just pops into our heads. We choose, consciously or unconsciously, to remember specific events of our lives. Human memory has certain advantages over computer memory: for instance, it tends to give automatic priority to the most frequently needed items; but it’s unreliable. Computers, on the contrary, assign each bit of information a precise address in its data banks. Its postcode memory system has no such human vulnerabilities. According to cognitive psychologist Gary Marcus, search engines like Google offer a great advantage as they “start with an underlying substrate of postcode memory (the well-mapped information they can tap into) and build contextual memory on top. The postcode foundation guarantees reliability, while the context on top hints at which memories are most likely needed at a given moment.” “It’s a pity,” Marcus adds, “that evolution didn’t start with a memory system more like the computer’s.” 1 In an era where physical ownership is decreasing, “memory banks” act as reminders of our digital contributions to the globally connected society. Location Based Services (LBS) will enhance their accuracy. Currently, 12% of smartphone users are using LBS and 95% expect to use LBS in the future.2 The demand for LBS is expected to grow to 468 million users by 2012. As a result, “memory banks” will become more context-relevant and will allow us to remember events based on spatial location.

Human memory tends to give automatic priority to the most frequently needed items but it’s unreliable. Computers on the contrary assign each bit of information a precise address in its data banks.

166

“Memory banks” can also work with “semantic” memories of facts, as people have deep connections between the way they remember things and the spaces in which those things occurred. Last winter Amazon released a clever app called Daily Review: it collects Kindle clippings and displays them weeks or months later — timed on a schedule designed to help people absorb reading more deeply. It’s like a book that leaps off the shelf every once in a while and shows us the highlighted passages. Apps such as Timehop will provide daily email reminders featuring Foursquare, Facebook, Twitter and Instagram posts that were made the same day a year ago. TimeHop.com already registers 30,000 monthly visits.3 Whilst the benefits of “memory banks” seems unquestionable, they raise concern for privacy. It is important that “memory banks” remain the property of the individual as they develop. They must offer customizable privacy settings so users can decide on which information is private and which is public. The “Do Not Track” initiative was created to help people keep control of their privacy, but there is room for improvement. Currently only Mozilla Firefox for Android offers comparable privacy settings for mobile users as well as “fixed” internet users. Users will expect their privacy settings to be consistent. Not everyone will want to share everything with everyone else in the online community. For some, sharing information is a very private matter. We will think very carefully about how to best manage our digital legacies. In the United States, a new crop of businesses has sprung up to assist with this issue. Companies like Legacy Locker and Entrustet provide a "digital executor" who, with their clients permission, can delete or re-organize all their digital content. To ensure that people continue engaging in the social realm without privacy concerns, it is an absolute priority that memory banks remain in control of users.

T R E N D 4 — social sha k e - u p

Trend Manifestation #2: Memory Banks

To ensure that people continue to engaging in the social realm without privacy concerns, it is an absolute priority that memory banks remain in control of users.

1 Marcus, Gary quoted in Nicholas Carr The Shallows: How the internet Is Changing the Way We Think, Read and Remember, 2010 2 van Belleghem, Steven Social media around the world, 2011 3 http://www.appdata.com/apps/ facebook/184699224915307-timehop

167

“Our digital assets will survive us, so people will increasingly think about their digital legacy and how to best manage it.”

Trend 4 Social Shake-Up Facts

170

Insights

176

Case Studies

179

IN EVERY 5 MIN.

Social networking sites account for 82% of the total internet “population” (1.2 billion users worldwide).1

MICROBLOGGING

HAS TAKEN HOLD AS A POPULAR SOCIAL NETWORKING ACTIVITY IN RECENT YEARS ON A GLOBAL SCALE.2

42%

IN OCTOBER 2011, TWITTER REACHED

1 IN10

INTERNET USERS WORLDWIDE (A GROWTH OF 59%).

FACTS

SINAWEIBO, THE CHINESE MICROBLOGGING SITE, RANKS AS THE 10TH LARGEST SOCIAL NETWORK, WITH ITS AUDIENCE GROWING

PEOPLE BETWEEN 55-99 YEARS OLD USING SOCIAL NETWORKING SITES (SNS).4

181%

10th

TUMBLR3, WHICH RANKED AS THE 12TH WORLDWIDE (BASED ON AUDIENCE FIGURES) GREW

170

15%

172%

12th

In the U.S. alone there are nearly 16 million people who are 55 years old and older using Facebook.5

FACTS

was sPENT social networking GLOBALLY in OCTOBER 2011, RANKING AS THE MOST ENGAGING ONLINE ACTIVITY WORLDWIDE.

T R E N D 4 — social sha k e - u p

RECENT DATA SHOWS THAT SOCIAL NETWORK ACTIVITY AMONG INTERNET USERS WHO ARE 50 YEARS OLD OR OLDER HAS NEARLY DOUBLED TO

12%

SMARTPHONE USERS WHO USE LBS

(35% OF MOBILE PHONE USERS ARE SMARTPHONE USERS).6

2009 63 MILLION

2012 468 MILLION

USERS WHO SIGNED UP FOR LBS.

95%

SMARTPHONE USERS WHO ARE LOOKING

FOR LOCAL INFORMATION.8 171

T R E N D 4 — social sha k e - u p

ARE MORE ENTHUSIASTIC ABOUT FOLLOWING BRANDS (17,3 % ON AVERAGE) THAN OTHER REGIONS.10

OF SOCIAL NETWORK USERS FOLLOW BRANDS ON SOCIAL MEDIA.9 2012

$10 BILLION

SECTORS FOR BRAND FOLLOWING:11

172

SUCH AS FACEBOOK .12

FACTS

50%

PEOPLE IN SOUTHERN EUROPE

WORLDWIDE REVENUES FROM SOCIAL MEDIA SITES

MEDIA / Entertainment

50 %

FASHION / LUXURY GOODS

45 %

FOOD AND RETAIL

43 %

MEDIA AND TRAVEL

35 %

Entertainment

28 %

SPORT

28 %

GOOD CAUSES / CHARITY

28 %

EUROPE NORTH INDUSTRY

26 %

2013

$15 BILLION

2015

$29 BILLION

FROM A REVENUE PERSPECTIVE, THE SOCIAL MEDIA MARKET IS STILL IN ITS EARLY STAGES, EVEN THOUGH IT HAS A LARGE NUMBER OF USERS WHO, IN SOME CASES, ARE EXHIBITING INCREASINGLY MATURE USAGE PATTERNS.13

173

OF U.S. FIRMS EMCOURAGE THEIR EMPLOYEES TO JOIN SOCIAL NETWORKS SUCH AS LINKEDIN AND XING.16

38%

T R E N D 4 — social sha k e - u p

55%

A GROWING NUMBER OF

43%

A RECENT SURVEY SHOWED A 7% INCREASE in the proportion of businesses successfully recruiting new customers through social networks such as facebook.18

OF FIRMS ARE SUCCESSFULLY USING SOCIAL NETWORKING TO WIN NEW CUSTOMERS.14

50%

OF BUSINESSES IN THE U.S. USE WEBSITES SUCH AS TWITTER TO ENGAGE AND CONNECT WITH EXISTING CUSTOMERS.15 174

AMERICAN CHURCHES SOCIAL NETWORKING

has fully evolved into a necessity as the majority of businesses in the U.S. (69%) and internationally (74%) agree that social media activity is playing a bigger role in their marketing strategy. U.S. (64%) and global firms (61%) are also emphasizing the need for a balance of marketing media, confirming their belief that without a combination of traditional and digital techniques, marketing campaigns will not work.19

are encouraging parishioners to bring laptops and smartphones to services in order to exchange inspirational messages through Twitter and other microblogging services.20 1, 2, 4, 5, 6, 7, 8, 9, 10, 11 Van Belleghem, Steven, Social media around the world, 2011 3 www.eweek.com/c/a/EnterpriseApplications/Facebook-TwitterLead-Social-Networking-GrowthcomScore-342335/ 12, 13 www.bbc.co.uk/news/business15254066 14, 15, 16, 17, 18,19 www.regus.presscentre.com/ Press-Releases/43-Percent-of-US-Businesses-Using-Social-MediaSocial-Networks-to-Win-NewBusiness-2515.aspx 15 Regus Survey, June 2011 20 Rochman, Bonnie, Twittering in Church, Time, June 1, 2009

FACTS

OF U.S. COMPANIES DEDICATE UP TO 20% OF THEIR MARKETING BUDGET TO BUSINESS SOCIAL NETWORKING ACTIVITY.17

175

Seniors are engaging with social media

INSIGHTS

It can take some time for older adults to engage with social media - depending on how proficient they are with technology. To stay up to date and involved, they are making an effort to communicate with younger generations in the way that’s most comfortable for them. They are, in fact, most responsive to what other people are posting, rather than actively posting content themselves.2

Demand for Location Based Services is growing The use of sensors is enhancing Location Based Services

Indoor navigation, or combining several location technologies (GPS, WiFi, Cell ID, sensors), enables us to find the precise locations of a user. This offers opportunities for advertizing.3

More smartphones are equipped with an array of sensors. Temperature, humidity, sound level or energy consumption will be measured by sensors in smartphones of the future, linking this information to location data. For example, CommonSense is a prototype for pollution monitoring. It uses specialized handheld air quality sensing devices that communicate with mobile phones (using Bluetooth) to measure various air pollutants (e.g. CO2, NOx). These devices, when deployed across a large population, collectively measure the air quality of a community or an area.4

176

Gamification is changing the rules of social interaction

Playing games on smartphones and tablets that are linked to location information is becoming increasingly popular. The advertising revenues in this sector are rising steadily. Screen Digest forecasts that dynamic in-game advertising will account for approximately 1.5% of the global digital marketing budget, and claims that the global digital marketing budget will reach approximately $66 billion by 2014.5 Kim Bartel Sheehan from the School of Journalism and Communication, Oregon, classified internet users according to their levels of privacy concern: • Unconcerned internet users: exhibit minimal concern with online privacy. They tend to be older than average and to have a bachelor's degree or lower level of education. • Circumspect internet users: have minimal concern with online privacy overall, although some situations may cause them to have higher levels of concern. They tend to be younger than average and to have bachelor's degree or lower level of education. • Wary internet users: have a moderate level of concern with online privacy in many situations and a high level of concern in several situations. These users tend to be younger and have a higher level of education. • Alarmed internet users: are highly concerned about their online privacy. They tend to be older with higher levels of education.6

T R E N D 4 — social sha k e - u p

Social media has fundamentally changed the way we manage our reputations. It presents huge opportunities to build buzz, excitement, audience, engagement and coverage. A brand’s reputation can be built or broken in moments.1

INSIGHTS

Social media changes the rules of interaction

Heavy users of SNS exhibit greater social trust and civic participation. Using SNS has also been shown to benefit students with low self-esteem. 7

177

T R E N D 4 — social sha k e - u p

INSIGHTS

CASE STUDIES

Digital Memory Engineering (DME) carries out research and development in the areas of information systems and data management. It investigates various aspects of the digital information life cycle, including the intake of digital objects into an archive (ingestion), long-term storage and archiving (digital preservation), and novel methods to search and access archived data. DME specializes in cooperative systems for the integration of users. The focus is on multimedia annotation tools that permit CMS users – particularly in the cultural field – to explain digital objects to one another and enrich them with metadata at the same time. 8

Socialcast

178

1 http://www.slideshare.net/Sophiebr/ redefining-reputation-online 2 http://www.nj.com/news/index. ssf/2011/04/senior_citizens_using_ social_n.html 3 http://blog.utalkmarketing.com/ social-media/trends-and-statistics-inlocation-based-services/ 4 http://irl.cs.ucla.edu/~yefan/papers/ IEEE-Com-Mag-11.pdf 5 http://www.gamesbrief.com/2009/05/ in-game-advertising-forecast-togrow-to-over-1-billion-in-the-nextfive-years

6 http://collections.lib.uwm.edu/cipr/ image/170.pdf 7 Burke, Moira et al, Social Network Activity and Social Well-Being, 2011 8 http://www.ait.ac.at/researchservices/research-servicessafety-security/digital-memoryengineering/?L=1

Socialcast is an online collaboration platform that uses real-time activity streams to unite co-workers in a town hall-style forum. It offers features such as user roles and org charts to help employees understand who within their company is working on a particular project. It also has micro-blogging capabilities that enable collaborators to quickly share their insights. Through their mobile application, employees can connect with one another and share data while on the go. The concept is designed to help employees focus on meaningful work, share knowledge, and discover data, all in real-time.

socialcast.com/resources/videos.html 179

T R E N D 4 — social sha k e - u p CASE STUDIES

CASE STUDIES

180

Kred Kred is a measure of influence created by PeopleBrowsr, a San Francisco-based social media analytics company, to identify the most influential people within interest-based communities. Kred scores are generated by observing a user’s social network content, who it reaches, who and how many act upon it and whether the user relays the content of others. Kred is given as a dual score to distinguish a person’s Influence (the likelihood that someone will trust a person and act upon their posts) and Outreach (the propensity to share other people’s content). Scores are summarized in a ‘Kredentials’ window that includes other social data like most frequently used keywords, hashtags, and clicked links.

What did you do exactly one year ago today? Timehop will help you to remember by sending daily emails with Foursquare, Facebook, Twitter and Instagram posts made that day.

goo.gl/zsBQO

timehop.com/

Timehop

181

T R E N D 4 — social sha k e - u p

Ghostery This browser plug-in lets users monitor web applications such as advertising networks, behavioral data providers, and web publishers that might be tracking their data.

CASE STUDIES

ghostery.com

MemoLane MemoLane allows the user to link several services such as Facebook, Twitter, Tumblr, WoodPress, Rss Feeds, 4square, Last.Fm and many more. However, unlike the above services, MemoLane offers far more options for what to do with information. Touting itself as a “Time Capsule”, it allows users to share histories. Also, users can work on “stories” and invite friends to collaborate with them.

vimeo.com/31261298 182

183

Updated information at: globaltrends.telefonica.com/trends/trend4.aspx

Social Shake Up shows that social influence is becoming more important than social status. People’s digital lives will become richer and more complex, opening up opportunities for us to help them live them to the full in the following ways:

Managing reputation to build positive Influence 1.

186

For individuals, small businesses, and corporations, building and maintaining a good reputation are crucial. In the digital world, every contribution is recorded and can be seen by everyone. This can have a positive or negative impact. Nearly eight million Americans claim that Twitter got them their current job. WorkFu taps into users’ Twitter connections to help them find jobs that are relevant to them. Each opportunity is given a relevance percentage rating and shows how well connected they are to the job poster. As a result, individuals, groups and businesses seek strategies to manage their personal and professional reputations. The time being spent managing online profiles is still on the rise, as numbers of social contacts managed continue to grow but there are currently very few services that enable users to do this in an easy and efficient way. Social media tracking tools are being increasingly used by companies, but they are often too expensive or time consuming for small business or individuals. We should look for innovative ways to help people monitor their sway and identify ways to expand their influence and maintain good reputations. This will become increasingly complex for people to achieve as they build different identities for their different groups and circles of connections.

Developing mechanisms to reward people for their influence 2.

People are becoming much more aware of the ‘value’ of their own data and networks. Several existing companies offer rewards and incentives for people to trade their data. However, very few seem to offer real value to users. PeerIndex measures people’s ‘area’ of influence, based on their social media activity, and connects companies with these influencers. They collaborated with Deezer, the music-streaming platform, to reward music influencers with a free Deezer subscription. Such rewards are meaningful because they relate to a user’s specific interest graph, but they have limitations because companies like PeerIndex base their analysis on social media activity alone. Telefónica has a tremendous advantage here to leverage Data Mining to understand the unique profile of each user by aggregating social media activity with their overall communications activity. This allows us to create much richer user profiles and to suggest rewards that are more relevant and personalized. Through our advertising business, we have the opportunity to create such reward mechanisms, and to provide meaningful rewards for people’s online participation and influence.

T R E N D 4 — social sha k e - u p

Implications

187

T R E N D 4 — social sha k e - u p

Creating ‘social’ products and services to foster more digital connections and greater participation 3.

The growing population of single people and migrants will turn to digital resources to recreate social support and networks they would normally sustain through their family or friends. As a result, developing products and services that enable social sharing will be key. Social sharing doesn’t have to be limited to social networking. For example, Shelby.tv has devised a service that pulls videos from a user’s Twitter, Facebook, Tumblr and other social network feeds to create a customized channel full of content that the user’s friends think he or she should be watching. Their latest product “Touchplay,” allows users to sync their iPad 2 with Apple TV in a social context. This means users can tweet and comment about the latest YouTube video or TV show. Touchplay also incorporates gesture recognition technology, which lets users sort through thousands of videos without ever touching their iPad screens. One of the great advantages of digital is that it can help reinforce and maintain real-world relationships. We have the opportunity to foster digital connections between people who are as yet unknown to each other, yet potentially need each other. The possibilities for new levels of human interconnection and collaboration offered by networking technologies have barely been tapped. Telefónica has the potential to leverage user data to foster more connections and deeper participation between people.

188

Offering archiving management solutions 4.

We know that people love to reminisce about their experiences and digital encounters. Digital technology enables people to archive them easily. There are currently many solutions available with which people can store their digital contributions, but few offer additional features to create better archiving. For example, the Shoebox app enables people to edit and archive photographs from their mobile devices. We can help people to do this in an easy and secure way. We can provide archiving management solutions such as automating the content, so that it is organized into meaningful stories and digital mementos. This could be done through algorithms that analyze the content and edit, organize and store the most relevant elements to create compelling digital memory banks. This could be a great way to build greater loyalty and reduce churn, as people are unlikely to move their digital archives to different providers if we can guarantee security, privacy, ease of use and unique management features.

189

Social networkers are becoming more active in pruning and managing their accounts. Women and younger users tend to un-friend more than others. According to a recent study, all the major metrics for profile management are on the up, with users deleting people from their “friends” lists, deleting comments made by others on their profile and removing their names from photos that were tagged to identify them. We are often asking users how much they would demand to give up their privacy, but not so much in the sense of how much they would pay to retain their complete privacy. Privacy is going to become a greater concern for people in the future, as their digital lives become richer and more complex. There is a golden opportunity to develop products and services that enable people to control their privacy in a simple and efficient way, for Social networking sites and all other communication channels. The ‘do not track’ initiative shows our industry commitment to helping users to remain in control of their digital privacy. We need to understand better how we can help consumers achieve this and develop innovative products and services that put the user in control.

In Spain So the great news is that Spain is the European leader in many social media aspects (compared to other progressive European countries like the UK, France, Germany, Italy, Holland and Sweden). Spain is seven points above the European average in terms of users creating content for the Internet, eight points ahead in users terms of talking and commenting online, 10 points ahead in users maintaining their social profiles and regularly visiting social networks . Users are looking to extend their networks, and as a result they are spending more time actively managing their profiles. Indeed, whilst social networks are primarily used as a way for people to stay connected with friends and entertainment, almost half of Spanish companies seek their candidates in social media. Given the tough employment context, young Spaniards are likely to become more pro-active in the management of their digital influence as they will increasingly see that it can provide them with better employment prospects. This means that Spanish users will look for efficient and easy to use tools to build, track

Almost half of Spanish companies seek their candidates in social media. Given the tough employment context Spaniards are likely to become more pro-active. 190

and manage their influence, in order to create positive online reputations. These tools will become important for individuals and for businesses alike. Spanish businesses, especially SMBs and SOHO are embracing social media to build/strengthen their online influence. Companies that provide social media management systems with which businesses can manage their online influence and reputation are flourishing. For example, HootSuite helps businesses and organizations to collaboratively execute campaigns across multiple social networks from one secure, web-based dashboard. They offer key social network integrations with Facebook, Twitter, LinkedIn, and Google+ Pages, plus a suite of social content apps for YouTube, Flickr, Tumblr and more. Spain is host to one of the most active HootSuite communities and the growth of social media in the last year has been extraordinary. Spain is one of the top countries in Europe using social networks for business. Telefónica could provide such services, leveraging our innovation and expertise in terms of data analytics. Additionally, as people engage more online, the attitudes towards privacy are evolving. Spain has one of the highest levels of privacy concern in Europe according to a recent survey by UM. This means that Telefónica can leverage its leadership and reputation to position itself as the guardian of privacy. As people generate deeper digital footprints, they will become increasingly conscious of the legacy that they are creating and will want to stay in control of it. As Digital Natives enter the job market and realize the importance of having a ‘clean’ online persona, retaining

T R E N D 4 — social sha k e - u p

Providing privacy management solutions 5.

191

In the UK In the UK, the growth in social networking is slowing down. In fact, many social media users are experiencing Facebook fatigue and are expected to use the site less in the future. However, for younger generations (16-20 year olds), usage of Facebook is ubiquitous and totally integrated into their communication repertoire, which suggests that there is still hope for

192

In the UK, the growth in social networking is slowing down. In fact, many social media users are experiencing Facebook fatigue and are expected to use the site less in the future.

Social Media. Interestingly, microblogging activity is increasing, especially with sites such as Pinterest or Tumblr, where users tend to spend increasingly more time than on Twitter or LinkedIn. Many companies are trying to engage with people via social media, by setting up a Facebook page and trying to collect ‘likes’. However, for UK online users, this is not enough and such strategies are becoming part of the background ‘noise’ for most people. Almost half of UK social media users don’t like seeing ads based on their profile activities, according to new data from YouGov. Additionally, as people realize the value of their data and networks, they will expect to be rewarded for engaging with a brand online and getting their friends involved. Through its O2 media business, Telefónica UK can devise innovative ways to reward people for their digital contributions and for reaching out to their network. For example, Empire Avenue offers a ‘Social Stock Market’

that utilizes gaming mechanics to encourage engagement across the web. Members are given an initial ‘Share Price’ based on their activity on Social Networks and blogs. The platform is powered by virtual currency called ‘Eaves,’ which members can use to invest in other people, buy virtual luxury items, and unlock account upgrades to help them climb up the leader board. Users earn Eaves by posting updates on Facebook uploading videos to YouTube and earning “Achievements” on Empire Avenue. Brands can leverage the platform’s ‘Shareholder Missions’ to drive engagement and awareness around product launches and events by offering members rewards for online sharing. UK adult online users are more wary about preserving their privacy online than ever. They are increasingly choosing to keep some of their information private. The government’s Communication Capabilities Development Programme is contributing to alleviating privacy concerns. According to this program, data including text messages, phone calls, email, visited

websites, Facebook and Twitter exchanges and even online games, could be stored for a year and made available to secret services.

Telefónica has the opportunity to provide digital users with privacy control and identity and online reputation management solutions.

T R E N D 4 — social sha k e - u p

control over their digital legacies will become more crucial. Some companies already offer such services, but none are as established as Telefónica. It would appear that being the market leader and most established communications company in Spain would play to Telefónica’s advantage when it comes to offering such services. It could also make privacy management services more comprehensive, as in most cases Telefónica provides users with a full communications package.

Whilst this is meant as a measure to prevent terrorism and crime, it throws into question the concept of ownership of our digital footprints. With O2, our trusted and loved UK brand, Telefónica has the opportunity to provide digital users with privacy control and identity and online reputation management solutions so that they feel completely in charge of their digital legacies.

In Germany Surprisingly, Germany lags behind Europe’s more mature social media markets. As a result, the country is seeing significant growth on social networks and other social platforms. Students comprise the majority of social network users in Germany, but the social media user base is steadily growing, after many years of apparent disinterest. Unlike the UK, Germany’s digital users

favor platforms that are available in their native language. As a result, Facebook has faced some serious challenges in breaking into the German market. This hasn’t only included language barriers but also governmental legal proceedings aimed at Facebook’s privacy policies and the use of collected personal data. The Verbraucherzentral Bundesverbrand, a government -backed consumer

193

Germany has some of the strictest data protection laws in the world. It reveals the benefits of providing consumers with products for the control of their digital memory banks. Additionally, a recent study revealed that German social media users have different needs and expectations to their European counterparts. For example, most people in Germany use social networks primarily to seek other people’s opinions. This suggests the importance for people who engage with social media, to understand how to build, track and monitor their reputations. Additionally, Germany has more respondents reporting that they actively use social networks to acquire new business. A recent study found that 70% of German businesses are using social media for business purposes and 40% use it for

194

customer acquisition. This suggests that developing tools to manage online identity, reputation and privacy, could help Telefónica develop deeper relationships with individuals and also with businesses. With the launch of Wayra in Munich, it seems important to contemplate how entrepreneurs and start ups could leverage the power of social media, but also to find new business opportunities related to privacy services as this seems especially significant to German consumers. As numbers of German social media users increase, we can expect more products and services with social features to be launched. For example, Social TV is an exciting market, especially in Germany, where minimal competition and wide open (user) fields leave the leading position open for takers. As more users become comfortable integrating social media into their TV ritual (48% of Germans currently use mobile internet while watching TV, versus 86% in the US), social TV platforms will continue to germinate and diversify. So far, Bavarian-based company Waydoo leads the way, but new companies such as Zapitano are entering the market. To its advantage, Waydoo conceptually bases its platform on US services like Miso and GetGlue, which integrate status check-ins (while taking into account television from Germany, Austria and Switzerland. The platform covers all entertainment media, including books and events, asking users to check-in, rate, comment and share favorites with peers. Telefónica should consider integrating social features into new products and services for the German market to ensure we provide a comprehensive communication package to our customers.

In Argentina When it comes to social media usage in Latin America, Argentina is the clear leader. Social networking is the number one online pastime among Argentina’s internet users. The skyrocketing popularity of social networking came at the expense of other online activities: time spent on portals, instant messaging and emailing, all dropped. Argentina ranks third in Facebook penetration worldwide, with 62.1% of internet users expected to use the network in 2012, ahead of both the US (59.1%) and Canada (61.0%). Social networking’s popularity in Argentina can be attributed to high broadband penetration, a strong mobile and telecommunications infrastructure and a population that skews younger. Facebook is the clear social media leader in the country; this year, 89,4% of social network users overall will access the network. By 2014, 17 million people

Social networking’s popularity in Argentina can be attributed to high broadband penetration, a strong mobile and telecommunications infrastructure and a population that skews younger. in Argentina will access Facebook - more than nine in every 10 social network users in the country. Overall, Argentina’s online

users spend four hours more online than the global average, with 27.4 hours versus 23.1 hours. The 15-24 year old age group constitutes the “heaviest users”, investing 33.1 hours per month, more than any other age group in Latin America and above the global average.

T R E N D 4 — social sha k e - u p

advocacy group fought/fights for the rights of users to retain ownership of the intellectual property rights to their Facebook posts, pictures and other content posted on the site. This demonstrates the importance of privacy in Germany, which has some of the strictest data protection laws in the world. It reveals the potential benefits of providing consumers with products and services that enable them to remain in control of their digital memory banks.

Social networking will continue to experience high growth due to the relatively open culture of sharing personal information online. Social networking will continue to experience high growth due to the relatively open culture of sharing personal information online. Argentina has been one of the most significant markets for Google+, as it offers management solutions between networks. It is interesting to note that most of the country’s online activity tends to be in leisure-oriented content categories. What’s more, the social media users who spend the most time online in Argentina are women. Each Latin-American woman averages 8.2 hours per month using social media, while each man averages 6.9 hours. Women use social networks to strengthen relationships and spend time managing their profiles, whereas men tend to prefer quicker/shorter updates or check-in features. This suggests that digital influence management tools would be particularly relevant for women, by enabling them to convert the time they spend on social networks into opportunities for rewards or work. If Argentina’s

195

network, from any browser or smartphone improving communication and enhancing productivity. Shopear (shopear.net) is a social shopping platform that facilitates the discovery of brands and products, by allowing users to share their shopping experiences in their social environment. It will be important for us to monitor the development and success of these projects as they will provide insights on how to develop social products and services for this market.

In Brazil

196

Brazil ranks as the world’s seventh largest internet market, with a home and work computer audience of 46.3 million visitors aged 15 and older in 2011, up 16% on the previous year. Brazilians spent an average of 26.7 hours online in December 2011, a 10% increase on the previous year (equivalent to more than two hours). Mobile phones and tablets continue to alter the digital landscape, accounting for 1.5% of all digital traffic in Brazil during December 2011. Of this proportion of total digital activity, more than 42% was driven by page views occurring on tablet devices. Brazil has one of the highest social networking activity levels in the world. eMarketer forecasts that numbers of Social Network users in Brazil will reach 75.7 million in 2012, and an internet user penetration rate of 87.6%. Facebook surpassed Orkut in December 2011, taking the lead as the top social networking site in Brazil, with 36.1 million visitors, up 192% on the previous year. Facebook also became the most engaging social networking

site, with visitors averaging 4.8 hours a day on the site in December 2011, up from just 37 minutes a year earlier. A recent study found that users in Brazil were more likely to perceive social networks as a good place to learn about and buy brands and products than users in developed markets like the UK and the US. This is interesting as it shows the importance of leveraging our data analytics in order to build

Users in Brazil were more likely to perceive social networks as a good place to learn about and buy brands and products than users in developed markets like the UK and the US.

rich user profiles that we can target with meaningful messages. Social networking is also increasingly used for professional purposes in Brazil. LinkedIn is going strong and the country is among its top 10 markets. This is indicative of Brazil’s strong entrepreneurial activity and the fact that people are used to take a pro-active approach to work. Within a month of its launch, Brazil became one of the top 10 markets for Google+, ranking sixth, with 793,000 users. A key driver for Brazilians to use social networks is to creativity, which explains why blogs - which are all about self-expression - are big. While not technically classified as social media sites, blogs are related because of the way they engage readers and allow for discussion via comments. Three in four Latin American internet users visit blogs. Brazil is the most blog-happy: 85% of its internautas visit blogs. In addition, the National Association of Journalists,

Associacao Nacional de Jornais, reports that the readership of the blogs by Brazil’s top journalists is larger than the circulation of the country’s top 10 newspapers. This demonstrates the scope of digital influence. Telefónica has the opportunity to provide tools for people and businesses to build, track and manage their influence online. The fact that privacy concerns are

T R E N D 4 — social sha k e - u p

online users would use digital technology more for professional purposes than socializing and entertainment, this could open up new opportunities for them and fuel entrepreneurship. Interestingly, several of the projects selected for Wayra Argentina leverage digital contribution. For example, Joincube (joincube.com) is a collaborative business solution that enables employees to connect with their colleagues privately and securely via a social

Brazil is the most blog-happy: 85% of its internautas visit blogs. very low amongst Brazilians is currently fuelling digital contribution. However, as Brazilians continue to engage more online they will become more acutely aware of the digital legacies they are building will expect to retain control of them. As such, they are likely to start evaluating the privacy of their digital contributions.

197

Areas of Opportunity

Reputation management 2

Archiving management 3

Privacy management 4

Social products and services 5

Opinion mining 6

Media/advertising

198

TREND 5 — MICRO MIGHTINESS

Micro Mightiness Trend 5 —

“A small body of determined spirits fired by an unquenchable faith in their mission can alter the course of history.” Mohandas Gandhi 200

201

fre

nce

m edo reputation

INF L PA U E N C RA DE E

RY MO S E M NK BA

pri

Main Trend Trend Manifestations Values

PLE LT I U M ME

SOCIAL SHAKE-UP

exp

vac

eri

io ent Our i n v need for autonomy and competence will evolve into a need for independence. evo lut In theionProject Economy, people are starting out independently on a micront me e v ie scale and harnessing digital ach technology to achieve a scalable impact. Small is an advantage because it allows for agility, flexibility and risk-taking. To become successful, individuals and companies will embrace the power of “micro”, turning themselves into glocal champions and participating in “great groups”. n

TREND 5 — MICRO MIGHTINESS

ta cep

FOREVER GROW

nce

interaction

challenge

GR G R E AT OU PS

nde

legacy

epe

NE IDE WBO NT RN ITY

ind

realization

determination

M ME A

SOU LIV ono

ion

O CR SS MI TINE GH

aut

ra t

bo olla

nes

tio

ATIVE EDOM

ous

GLOCAL CHAMPION S

sci

ula

S OU ND

con

stim

Go to: Micro Mightiness website section 203

204 205

TREND 5 — MICRO MIGHTINESS

Micro Mightiness: Building small but scalable successes Our perceptions with regard to the “scale of things” is changing. The trust we used to put in big organizations has dwindled as we have become wary of large systems and their lack of transparency. A recent European Trust & Purpose survey reveals that trust multinationals has decreased by 36% over the past two years and trust in CEOs has decreased by almost 50% during the same time. The survey also reveals that loss of trust is not limited to the business community; national governments across Europe have experienced a 51% decline in trust over the past two years (Spain ranking high with a 77% decline). Interestingly, the study finds that people trust local companies the most, national companies a little less and international least of all.1 Consumers prefer to deal with local businesses as opposed to “faceless multinationals” because they can have more direct and personal communication. We have become increasingly cynical towards large corporations and aspire to become independent from them. Recent studies have shown that for every two jobs Walmart creates, it eliminates three more.2 Another study concludes that only 16% of the money generated by a SuperTarget store stays in the local community.3 As a result, we are more compelled to deal with local companies in order to support our own economies and communities. Recent history has proven that successful local businesses can rapidly be scaled into global ones with the help of digital and social media and (reality) TV. However, people increasingly resist big monopolies as they strive to retain a sense of freedom (of choice) and independence. Douglas Rushkoff says: “Survival in a purely digital realm - particularly in business - means being able to scale, and winning means being able to move up one level of abstraction beyond everyone else.”4 Emerging successful businesses are run by small tight-knit teams that manage to scale their businesses through harnessing digital technology. Smart entrepreneurs have developed scalable business models with online stock brokering, banking,

Consumers prefer to deal with local businesses as opposed to “faceless multinationals” because they can have a more direct and personal way of communication.

206

Emerging successful businesses are run by small tight-knit teams that manage to scale their business by harnessing digital technology.

auctions, and e-commerce retail stores. Additionally, small companies that have been able to build their credibility through social media have been also successfully grown and scaled their businesses. For example, social gaming company Zynga leveraged Facebook’s scale and reach to build and release popular games like Farmville, without having to build their own digital platform. Only recently have they launched their own platform Zynga. com, which has teamed up with Facebook by using its profiles to set up networks of friends and a credit system to fulfill virtual goods transactions. Now, the company’s 240 million active users on Facebook will be able to join a destination site where all the users are gamers. In comparison, only a quarter of Facebook members play games. To build credibility and success on a global scale, small businesses leverage online communities like Facebook and service websites like eLance, TaskRabbit, ConstantContact, Flicker and Blurb. The Project Economy requires people to collaborate in order to achieve a sense of independence. This appears to be a paradox, but since collaboration is based on free will, it enables us to achieve scalable success without inherent dependence.

1 Burson-Marsteller European Trust & Purpose 2011, conducted by strategic research firm Penn Schoen & Berland 2 Center for Community Planning and Development Hunter College, Walmart report, January 2010 3 Mitchell, Stacy Mitchell, Local Businesses Key to Rebuilding New Orleans Economy Study, September 2009 4 Rushkoff, Douglas, Program or Be Programmed, 2010

TREND 5 — MICRO MIGHTINESS

Main Trend: Micro Mightiness

207

“Survival in a purely digital realm - particularly in business - means being able to scale, and winning means being able to move up one level of abstraction beyond everyone else.” Douglas Rushkoff, bestselling author of Program or Be Programmed

Embracing the opportunities of the glocal village Spurred by technology, the world is becoming a glocal village. People are glocal champions; starting businesses or projects anywhere in the world and, thanks to technology, expanding them to a glocal scale. Glocal champions have glocal aspirations but also pay attention to local markets. Companies like Groupon, Groupalia or OpenTable are glocal enterprises worth billions mostly because they compete like locals. They contribute greatly to local economic growth by providing consumers with easy access to small and local businesses. In the Project Economy, it is the strength of the idea that matters, rather than where it originated from. As a result, we are seeing an increasing number of micromultinationals - small companies with a presence in multiple countries. The creation of such companies began with the burst of the IT bubble and has been fueled by the recession. In their search for independence, glocal champions have harnessed the resources available, building connections with investors, universities and glocal talents to bring their projects to fruition. In recent years, they have shaken up large multinationals that often excel at incremental innovation, but struggle with (game changing) disruptive innovation. Therefore, big companies, are supporting glocal champions, rather than fighting them. BMW, Adidas and Citi all have investment strategies geared towards developing disruptive innovations with the help of these companies. In the Project Economy, the pace of innovation is accelerating and micro-multinationals are better equipped. According to an article in the Financial Times: “Small to mid-sized manufacturers that operate plants in a mix of high and lowcost locations gain maximum benefits from different forms of production.”1 Young workers are the main drivers of this new start-up culture as they tend to have greater social media and digital skills. An OECD report states: “Most jobs are created by young companies and start-ups.”2

People are glocal champions; starting businesses or projects anywhere in the world and, thanks to technology, expanding them to a glocal scale.

210

Emerging successful businesses are run by small tight-knit teams that manage to scale their business by harnessing digital technology.

Research shows that among firms with similar characteristics (in terms of country, industry and size), age is the differential factor, with a substantially larger share of job creation and total job reallocation attributed to young companies. web technologies are used for supervising, communicating with and managing employees at distance, increasing the independence and agility of micro-multinationals and their employees. A Cornell University research project studied 320 small businesses, half of which granted workers autonomy, the other half relying on top-down direction. The businesses that offered autonomy grew at four times the rate of control-oriented firms, and registered only a third of the staff turnover rate.3 In this context, big needs small, and it’s a win-win situation for glocal champions who embrace the added value of international collaborations. They can form symbiotic relationships with large multinationals and grow by leveraging government research grants as resources. Micro-multinationals are agile and flexible, owning sophisticated IT systems, as opposed to big companies that often have to manage with outdated, inherited systems. Micro-multinational employees also enjoy the flexibility of working on the move, using smartphones and cloud technology. Working with several employees in different parts of the world often helps to turn projects around more quickly. Multinational companies provide support and international networks for start-up operations. Based on a foundation of trust, the relationship between a micro-multinational and a multinational company can prove fruitful, especially in terms of innovation. Investors around the world are taking notice of these glocal champions. Everyone can become a glocal champion by starting small and scaling up, thus contributing to the glocally connected economy.

1 Marsh, Peter, UK ‘micromultinationals’ lead the way, Financial Times, 23 August 2011 2 http://www.oecd.org/ dataoecd/10/59/2090740.pdf 3 Baard, Paul, P. et al, Intrinsic Need Satisfaction: A Motivational Basis of Performance and Well-Being in Two Work Settings Journal of Applied Social Psychology, 2004

TREND 5 — MICRO MIGHTINESS

Trend Manifestation #1: Glocal Champions

211

“Glocal champions have harnessed the resources available to them, building connections with investors, universities, global talents and working around the clock to lead their projects to fruition.”

Participating independently in “great groups” Great groups consist of people with similar interests who create something much greater than any of them could achieve individually. Great groups understand intrinsic motivation and thrive on it. They drive people to be active and contribute independently to something that is interesting, challenging and absorbing. Great groups can be more powerful than large organizations. For instance, Wikipedia, with its 1.2 million contributors who have together created over 17.6 million articles in 270 languages, has put Microsoft’s Encarta out of business. Examples of great groups can be found across industries. They are the basis of the Open Source Movement, which was created with the philosophy that software should be free. According to the Open Source Initiative: “Open Source is a development method for software that harnesses the power of distributed peer review and transparency of process. The promise of open source is better quality, higher reliability, more flexibility, lower cost, and an end to predatory vendor lock-in.”1 From a high-level perspective, Open Source is a license that allows end users to obtain a product or creation for free and modify it as they see fit without restriction. This increases distribution and improves the product over time. According to Susan Athey (Harvard University) and Glenn Ellison (MIT): “Open Source Software (OSS) has many varieties, but common features are that code is freely available and contributions are made by a diffuse set of programmers often working as volunteers. Wellknown success stories include Linux, Apache, which dominates the market for web servers, PERL and PHP, which are leaders in scripting software.”2 But OSS is a much broader phenomenon. As of February 2009, SourceForge.net hosted 230,000 OSS projects and had two million registered users. There is a great deal of diversity in both project characteristics and outcomes: projects aim to serve

Examples of great groups can be found across industries. They are the basis of the Open Source Movement, which was created with the philosophy that software should be free.

214

very different user bases and organizations. Some have thrived, while others have risen and fallen (or never risen at all). There is also diversity in the relationships between commercial firms and OSS. Some software companies compete directly with open source projects in critical areas, (e.g. Windows Server competes with Apache), but it is also common for firms to actively support open source projects. The principles of openness and collaboration “can apply to anything in life, any area where information is currently in the hands of few instead of many, any area where a few people control the production and distribution and improvement of a product or service or entity”3. We are observing the application of open source philosophy across many fields - from cookbooks, textbooks, design, medical research, legal briefs, stock photography, prosthetics, credit unions, cola, and even beer. The Open Source Movement can be credited with increasing the pace of innovation, as many individuals are able to contribute, transforming a local or small project into one that is a global game and changing. Additionally, we are witnessing the growth of open hardware, which allows any individual to become a micromanufacturer. Innovations such as 3D printing and Arduino (an Open Source electronics prototyping platform) allow micro-production of artefacts through open-innovation platforms such as Adafruit or MakerBeam (see Case Studies section). It makes us feel more independent and enables us to create micro economies with micro-credit, peer-topeer lending and crowd-funding (gathering money from single individuals or greater groups for starting up an open hardware project). Open Source demonstrates the potential of social norms: people in these communities are happy to contribute their time to society at large.4 Monitoring great groups is a good indicator of our evolving needs and desires. It can provide inspiration for businesses to create new products and services and/or find ways to empower individuals to innovate for themselves.

TREND 5 — MICRO MIGHTINESS

Trend Manifestation #2: Great Groups

It makes people feel more independent and enables them to create micro economies through obtaining micro credit, peer-to-peer lending and crowdfunding.

1 www.opensource.org 2 Ellison Glenn, Susan Athey, Dynamics of Open Source Movements, Cesifo Working Paper, No. 3215 Category 11: Industrial Organization, October 2010 3 www.lifehack.org 4 Ariely, Dan, Predictably Irrational, 2009

215

“Open Source shows the potential of social norms as people in these communities are happy to give their time to society at large.” Dan Ariely, Professor of Psychology and Behavioral Economics, Duke University (USA)

Trend 5 Micro Mightiness Facts

218

Insights

224

Case Studies

227

small enterprises

OF THE STOCK

FACTS

MEDIUM-SIZE ENTERPRISES (226,000 ENTERPRISES)

OF THE STOCK

1.4 MILLION small enterprises.2

average employees in eu enterprises.3 MICRO ENTERPRISES:

2 EMPLOYEES

OVER THE PERIOD FROM 20022008, THE NUMBER OF SMES IN THE EU HAS GROWN FASTER THAN THE NUMBER OF LSES, WITH MICRO AND SMALL ENTERPRISES DISPLAYING THE HIGHEST GROWTH RATES.4

more than

40%

6.4 EMPLOYEES

of european small enterprises are involved in some form of international relationship

LARGE SCALE ENTERPRISES:

The percentages vary from nearly 30% of smes to only 2% of SMEs having direct foreign investments.5

EU AVERAGE:

1,000 EMPLOYEES

FACTS

THE TYPICAL EUROPEAN FIRM. 1

there are about

TREND 5 — MICRO MIGHTINESS

GROWTH OF ENTERPRISES IN 2002-08 PERIOD

MICRO FIRM

MEDIUM ENTERPRISES:

SMALL ENTERPRISES:

MICRO ENTERPRISES:

92% 218

219

BILLION

FACTS

COST REDUCTION PROVIDED BY OPEN SOURCE SOFTWARE. IT increases in efficiency up to 31% in the software and services market.6

€

BILLION

savings directly introduced by OSS. 8

220

FROM OSS* ADOPTION (using data from Infoworld and our data from COSPA, REPORTED BY GARTNER FOR MAINTENANCE AND LICENSING).7

LIGHT ADOPTERS

15%

HEAVY ADOPTERS

TREND 5 — MICRO MIGHTINESS

450 million

SPECIFIC CASES

29%

75%

people use Firefox.9

FIREFOX IS A FREE AND OPEN SOURCE SOFTWARE.

40%

FACTS

116

€

More than

ESTIMATED SAVINGS

OF ITS CODE IS WRITTEN BY VOLUNTEERS 10

0101110100 1110101011 0000100100 0011101011 1100010100 1010100011 0001101011 1011011011 1001010001 0101110100

01 CODE BY VOLUNTEERS 01 CODE BY FIREFOX CREW 221

FIREFOX GLOBAL MARKET SHARE.11

LANGUAGES AVAILABLE.

FACTS

It covers more than 97% of the world’s online population. 12

TREND 5 — MICRO MIGHTINESS

50% of GLOBAL FIREFOX USERS USE NON-ENGLISH VERSIONS.15

FACTS

30%

more than

FIREFOX

IS USED IN EVERY COUNTRY IN THE WORLD. 13

ALMOST EVERY NON-

ENGLISH VERSION OF FIREFOX IS LOCALIZED BY COMMUNITY VOLUNTEERS.14

222

1, 2, 3, 4, 5 Annual Report On EU Small And Medium-Sized Enterprises 2009 & 2010-1011 6,7,8 Carlos Daffara, The economic value of Open Source software, 2011 9-15 www.mozilla.org/en-US/press/ ataglance

223

People yearn to become glocal champions

The Pro-Am Revolution: a report by Charles Leadbeater and Paul Miller for the British think tank Demos, underlines the rise of a type of amateur that works at increasingly higher standards and generates breakthrough ideas sometimes greater than those made by professionals - hence the term “Pro-Am”.2 According to this report, a Pro-Am pursues an activity as an amateur (mainly for the love of it) but sets a professional standard. Pro-Ams are unlikely to earn more than a small portion of their income from their pastimes, but they pursue them with the same dedication and commitment associated with professionals. For Pro-Ams, leisure is not passive consumerism but active and participatory; it involves the deployment of publicly accredited knowledge and skills.3

224

The Open Source Hardware Reserve Bank

The Open Source Hardware Reserve Bank was created by two hackers, Justin Huynh and Matt Stack, who calculated that for every small hardware project, up to of 40-50% of the initial cost comes from infrastructure fees alone. The Open Source Hardware Reserve Bank cuts costs that result from repeated revisions to physical hardware during the design process. It allows the construction and distribution of low-quantity, nonscalable products (e.g. niche applications that are potentially non-VC fundable) and helps to minimize the risk and opportunity cost of unsold inventory. It also gives rewards and profits back to those who contributed, and provides incentives for Open Hardware projects to move on to production without risks. The objective of the bank is to break-even, and to sustain and develop Open Source Hardware.4

Universal access to research, education, and culture is made possible by the internet, but our legal and social systems don’t always allow that ideal to be realized. Copyright was created long before the emergence of the internet, and can make it difficult to legally perform actions we take for granted online: copy, paste, edit source, and post to the web. The default setting of copyright law requires all of these actions to have explicit permission, granted in advance. To help achieve the idea of universal access, Creative Commons provides a free, public and standardized infrastructure that creates a balance between the reality of the internet and the reality of copyright laws.5

Regulations are changing to embrace open source and Creative Commons

TREND 5 — MICRO MIGHTINESS

A Frost & Sullivan study on the impact of collaboration on business performance surveyed 946 information technology and line-of-business decision-makers from a cross-section of 2,000 smallto-medium, mid-market, and global companies in the U.S., Europe (France, Germany, and U.K.) and Asia-Pacific (Australia, Hong Kong, and Japan). 1 The researchers created a ‘collaboration index’ to measure how “collaborative” a given organization is, based on two main factors: The organization’s “orientation” and “infrastructure” for collaboration. The study found that the impact of collaboration on a company’s overall performance was consistently high across Europe and Asia-Pacific, and across the six key vertical industries that were examined: healthcare, government, high technology, professional services, financial services, and manufacturing. The study uncovered general positive attitudes about collaboration, along with specific preferences and regional differences. For example, among the professionals worldwide who responded, an overwhelming number (9-to-1) see their collaborative efforts as highly productive and believe that collaboration through communication technologies provides a competitive advantage. A large number (10-to-1) like to work with teams, preferably from home (3-to-1), and not necessarily face-to-face.

INSIGHTS

The glocal culture of collaboration exists, but there are regional differences.

225

TREND 5 — MICRO MIGHTINESS

Big companies from Adidas to BMW to General Mills are investing in startups from smartphone navigational apps to emerging food brands. Citigroup: Citi Ventures invests in location-based mobile technology, data analytics tools and alternative lenders. Citi has joined forces with mobile app developer shopkick to help them launch a walk-in rewards program. A small “signal box” was installed in 1,000 local stores. The signal box emits inaudible soundwaves from a patent-pending device located in each participating retailer. Shoppers who have downloaded the shopkick app can then verify their visit in-store and begin earning shopkick's rewards currency, called “kicks.” With shopkick, stores also have the potential to increase basket size and margins, improve shopper engagement, and build customer frequency.6 BMW IVentures is investing in technologies that can be used for navigating in cities. Its first investment, the MyCityWay smartphone app, provides updates on traffic, public transport, and entertainment in New York and other major cities through a mobile application and the internet. BMW’S aim for this investment for BMW is access to new and younger customers. The goal is to create new cell phone and information services that will not only help consumers “get from A to B,” but “motivate them to get into their products”.7

CASE STUDIES

INSIGHTS

Multinationals venture into Start-Up Investing

Bitcoin

226

1 Meetings Around the World: The Impact of Collaboration on Business Performance, Frost & Sullivan, 2009? 2 Leadbeater, Charles, Miller, Paul, The Pro-Am Revolution: How Enthusiasts Are Changing Our Economy and Society, 2004 3 Jackson, Andrew, Extra/ordinary: Craft and Contemporary Art, 2011

4 http://p2pfoundation.net/Why_ is_Open_Hardware_Inherently_ Sustainable 5 www.creativecommons.org 6 ventures.citi.com 7 www.bmw-i-usa.com

Bitcoin is one of the first implementations of a concept called crypto-currency, which was first described in 1998 by Wei Dai on the cypherpunks mailing list. The experimental new digital currency enables instant payment to anyone, anywhere in the world. It uses peer-to-peer technology to operate with no central authority. The estimate as of Sept. 2011 was about 60,000 users.

bitcoin.org

227

TREND 5 — MICRO MIGHTINESS CASE STUDIES

MakerBot Industries, recently named as one of the top 20 startups in NYC, brings desktop 3D printing into the home. MakerBot's Cupcake CNC – the most affordable 3D printer in the world – can print things the size of toys or similar gadgets. The company was founded in 2009 on hardcore Open Source principles. MakerBot operators share their designs on the digital design community Thingiverse, where anyone can share and download 3D designs for free.

CASE STUDIES

MakerBot Industries

PocketCloud markerbot.com

PocketCloud is a free Android app that allows users to connect their Android devices to Mac and Windows desktops remotely. PocketCloud Explore enables users to create a personal cloud with of their computers, and an online storage called the “Cloudbin”. They can also share files across all of their computers.

pocketcloud.com

228

229

TREND 5 — MICRO MIGHTINESS

oDesk oDesk offers the world’s largest, most comprehensive and fastest-growing online workplace. Businesses are no longer limited to traditional hiring cycles or local talent only. With a thriving online workforce available on-demand, members can post a job, for free, field applications, in hours and rapidly hire the best person for the job within hours, regardless of where they are located. oDesk’s patent-pending technology creates a virtual workspace, offering real-time visibility into work as it happens. In 2011 alone, businesses posted over a million jobs and contractors earned more than $220 million.

CASE STUDIES

Y COMBINATOR Y COMBINATOR: a new model of startup funding. Investment (average $18k) takes place twice a year for groups of selected startups (most recently 63). The startups move to Silicon Valley for 3 months to get the companies going and refine their pitches to investors. Each cycle culminates in Demo Day, when the startups present to a large audience of investors.

ycombinator.com goo.gl/0YCdp

odesk.com 230

231

Updated information at: globaltrends.telefonica.com/trends/trend5.aspx

Micro Mightiness reveals people’s desire to act independently. Thanks to digital technology, individuals are finding ways to positively impact the globally-connected society by contributing to the Project Economy. We have the opportunity to empower people to do so, in the following ways:

234

Providing global products and services

Telefónica has a presence in 26 countries encompassing more than 280,000 professionals and more than 290 million access points. We have the opportunity to leverage this international footprint and to present ourselves as a global provider. Other operators, such as Vodafone have made leaps and bounds in developing international offers. 35% of the global workforce will be mobile by 2013, with 75% of global mobile workers currently owning a tablet or iPad in addition to a smartphone, the opportunities for global mobile products and services are vast.

TREND 5 — MICRO MIGHTINESS

Implications

Supporting entrepreneurs and small businesses

We have already launched Wayra in LATAM, and we are planning its expansion across Europe with Wayra academies currently open in Madrid, Barcelona, London, and soon-to-be launched across our other markets. Connections with entrepreneurs and young startups are great vehicles for us to show that we understand the needs of new businesses and that we are committed to empowering them to grow. It is also important for us to continue developing our other initiatives, such as special products and services for SMBs, as these businesses represent an important part of the economy. In the article “Six Degrees of Collaboration”, Colin Brown writes: “While business was once all about keeping one step ahead of your rivals, in today’s socially-networked society, working together can lead to greater success.”

235

Harnessing open-innovation and crowdsourcing

Initiatives like the collaboration with Arduino are important to demonstrate our understanding of the Open Source Movement and our ability to support it to grow. All the work created within the project is Open Source and spread freely via the internet. Telefónica I+D and Arduino decided to create a shield and an Arduino library to control it. This shield isn’t exclusive to Telefónica’s network, but users are offered a special dataplan for prototyping. This is a great, open and collaborative way to promote the development of the Internet of Things. The ‘campus audience’ can test the device and make their contributions to future improvements, as experts in the use of this technology. Additionally, they can create products based on open source hardware like Arduino Ethernet, Arduino Bluetooth, Arduino Uno or Arduino Mega ADK. Arduino users are students, designers, artists and engineers around the world who use the open driver to “hack” or alter existing objects or create new designs. Only 39% of companies make collaborating with customers part of early product development. Yet, companies that embrace collaboration find that the more they do it, the better it gets. Other initiatives such as Campus Party are also helping demonstrate our commitment to the Open Source Movement and the benefits that technology can bring to society as a whole.

236

TREND 5 — MICRO MIGHTINESS

Demonstrating our commitment to local economies

In Spain, Ciudadanía 4.0, is another great example of this. This project was born with the desire to support and promote citizen initiatives that make critical use of ICT (Information and Communication Technology). Telefónica Cataluña created this platform to help promote the various digital initiatives citizens want to set up, help them to promote them and connect them with mentors and guiding specialists in different fields, in order to collaborate and work together. Ciutadania 4.0 seeks to promote the development of citizen initiatives. This process will produce a database of citizens’ initiatives that are the engine of the information society in Catalonia. All information generated will be shared and published under Creative Commons licenses. This is a great example that could be implemented across our markets. Additionally, through our mobile advertising business, we can analyze the data from our customers and target them with offers that promote small businesses in their area. This is a superb way to demonstrate our commitment to supporting local economies.

237

Embracing the philosophy of Micro Mightiness internally

Granting greater autonomy to employees, fostering a culture of collaboration, and encouraging global working are great ways to ensure we embed a spirit of innovation in our organization and that we enable people to unleash their good ideas. A recent study by Gallup Research revealed that there are elements that are crucial for people to become successful teams (in business or in life) and came up with ‘Eight Critical Elements of Successful Collaboration’. They are: complimentary strengths, common vision, fairness, trust, acceptance, forgiveness, communication and unselfishness. We could consider introducing a Collaboration Index to measure collaborative behavior across our entire organization and encourage and incentivize good habits and practices.

238

In Spain than through opportunity. We have the opportunity to help boost entrepreneurship and to enable people to become Glocal Champions through Wayra, which provides tools and support for entrepreneurs and promotes their success stories. Additionally, as a global organization, we can help these entrepreneurs and other small businesses scale up their business across our markets so that they have a better chance at succeeding. We can incorporate innovative global working solutions that are flexible enough to adapt to the changing needs of these emerging businesses. In Spain, Telefónica has developed some great initiatives to engage with Great Groups. Ciudadanía 4.0 is a fantastic example of harnessing the power and energy of an already existing Great Group of citizens and to provide to the fact that Spanish people’s opin- them with the support and promotion ion of the figure of an entrepreneur in they need in order to develop their ideas. society is somewhat lower than that of Additionally, Campus Party, which is other professions. In fact, among young recognized as the largest technology, Spanish people, being an entrepreneur electronic leisure and online digital culonly scores 48% on a popularity rating ture event in the world and it enables us (compared to 73% in the US and 62% in to engage with thousands of participants France). Additionally, people are finding to understand their shared interests, exit “much more difficult” to set up a busi- change experiences and carry out activiness than before. Consequently, a typical ties related to communications and new start-up in Spain is launched in the con- technologies. Campus Party’s goal is to sumer sector, with the entrepreneur as the only employee, a product or service that is not very innovative, and with scant use of technologies. Moreover, it likely operates in a highly competitive sector and is very rarely involved in international markets. With the current economic crisis, entrepreneurial activity in Spain is likely to be driven more through need

According to recent report, Spain is among the world’s least entrepreneurial countries, with only 5.1% of entrepreneurs (compared with 8.5% in Norway or 8% in the United States). This is due

TREND 5 — MICRO MIGHTINESS

Spain is among the world’s least entrepreneurial countries. Spanish people’s opinion of the figure of an entrepreneur in society is somewhat lower than that of other professions.

Together, we can accomplish more than we would working in isolation or in competition.

239

demonstrates our ability to harness the power of great groups. Together, we can accomplish more than we would working in isolation or in competition. The ‘open’ nature of the project is a great testament to our organization’s understanding of how to leverage people’s intrinsic motivations in order to innovate better.

In the UK In the UK, entrepreneurial qualities are most notable among young people (1824 year olds). Entrepreneurial activity in Britain involves close to 8% of the working adult population. UK entrepreneurs have seen a 36% overall employment growth at their companies in two years. Despite

The UK is emerging as a leader in “micromultinationals”. Many of these micromultinationals are in niche sectors with only a few competitors.

240

challenging economic conditions, the entrepreneurs also saw revenue growth rates of 47% from 2008-2010. Additionally, the UK is emerging as a leader in “micro-multinationals”. Many of these micro-multinationals are in niche sectors with only a few competitors. The UK government is looking to develop entrepreneurial activity, most notably through the StartUp

Britain initiative, which connects UK business owners to relevant resources, such as a new package of start-up services, which includes advertising, office space, access to broadband internet, financing and mentoring support. At the same time, the UK government is announcing a series of ambitious goals to spread entrepreneurship education throughout the country’s schools, colleges, and universities. We have the chance to help drive entrepreneurial activity by providing entrepreneurs and SMBs with bespoke products and services, especially through mobile applications, as most of them will conduct their work through their mobile devices. Additionally, the launch of Wayra in the UK will help create stronger ties with entrepreneurs and enable us to develop new products and services to support them better. Our other initiatives such as O2 Learn and Think BIG could also include a ‘module’ with which to educate young people about entrepreneurship and how to become glocal champions. Additionally, in the UK, most large companies, from the BBC to Cadbury’s and Orange, have carried out Open

Source projects, to help drive innovation. Many Open Source projects have contributed to solving societal problems related to health, education and transport. As O2 is a trusted and loved brand, we have an opportunity to support great groups, by engaging with them and supporting them in solving problems that matter to them. The GiffGaff virtual mobile operator was built on this principle, encouraging the participation and direct involvement of its user community in the success and strategy of the company, by rewarding users for it. This could be used as an example of how to further develop Think BIG program, to include an Open

Source platform that helps people contribute to the growth and development of young people’s community projects. What’s more the UK Lab and BlueVia can help foster crowdsourced innovation and develop relationships with various great groups.

TREND 5 — MICRO MIGHTINESS

bring together the best talent in technology and the Internet to share experiences and innovate for a “better tomorrow”. It’s a perfect example of creating a meaningful partnership between Telefónica and a great group. Finally, internally, collaborating with Arduino to promote our vision of the Internet of Things

In Germany Currently, Germany exhibits a low level of entrepreneurship, with only 4.2% of the adult population considered entrepreneurs. Germany’s adult population is more pessimistic than the citizens of comparable GEM countries as regards future entrepreneurial opportunities, and fear of failure is relatively frequently claimed to prevent them from starting a business at all. Only 50% of 18-64 year olds see a business start-up as possessing “attractive career prospects”. However, German entrepreneurs consider themselves far less affected by the crisis than they were in 2009. For almost 40% of them, the growth prospects for their businesses were even better than in the previous year. The government is trying to drive entrepreneurship, most notably through the initiative “Gründerland Deutschland” (Start-up Na-

tion Germany), which aims to increase the number of business start-ups and looks to the US Silicon Valley for inspiration. It has increased its government funded R&D spending by 10% since 2008. One of the key reasons for the lack of entrepreneurial activity, besides regulations and bureaucracy hampering start-ups, is the lack of school-based preparation for self-employment and the negative social values and norms surrounding new and growing firms. We have the opportunity to help improve both. Through our Think Big program, we can teach young people about how to become entrepreneurs. In 2010, Telefónica Germany launched the ‘Think Big Media College’ program, offering job perspectives for educationally and socially disadvantaged young people. It is a joint program run

241

best we can help them with new products and services. Germany records increasing levels of open-innovation activity, ahead of most other European countries. The fact that Telefónica has BlueVia to engage with developers is a great way to ensure we are connected to this growing innovation. Other market initiatives include the O2 Ideas Lab, an innovation/crowdsourcing platform developed together with Atizo. In just a few weeks, more than 15 surveys were created in the O2 Ideas Lab. These were completed more than 3,500 times in total. With the help of Atizo technology, the O2 Ideas Lab was able to develop an innovation community of 900 active users in its first few months of operation. Examples like these endorse Telefónica as with the German Children and Youth an innovative company that can support Foundation (DKJS), and aims to open people’s need to be independent and to up future life and job perspectives to develop their own projects. young people through creative use of new media. Additionally, with the plan to launch Wayra in Germany, we have the opportunity to help young entrepreneurs develop their businesses while simultaneously gaining a better understanding of the needs of new businesses and how

In Argentina

242

Argentina’s level of entrepreneurial activity is at 14.7% among its adult population, below the regional average, which ranges from 18% to 20%. Most entrepreneurs in Argentina are necessity-driven as opposed to opportunity-driven. The growth seen in Argentina so far provides an ideal platform

to raise competitiveness levels and increase total entrepreneurial activity, accompanied by a shift towards opportunity-driven entrepreneurship. Entrepreneurial activity is seen to have high impact on project innovation, competitiveness, wealth creation and employment generation. However,

there is still no evidence of major stimulus to entrepreneurial activity in Argentina. Most experts agree that Argentina currently lacks the appropriate education and training resources to inspire an “entrepreneurial culture”. Openapp Telefónica launched the first national competition for web applications in order to support the generation of new ventures and tools that could help drive the growth of small and medium enterprises (www.openapp.com.ar).

Most entrepreneurs in Argentina are necessity-driven as opposed to opportunity-driven. Argentina currently lacks the appropriate education and training resources to inspire an“entrepreneurial culture”.

is a collaborative platform for software developers to optimize productivity and to create visibility for previously hidden information. It allows developers to discover common interests and help them to exchange information efficiently. Another example is Polisofía (www.polisofia.com), is an online platform that allows companies, universities, governments and NGOs to solve their innovation needs by challenging and rewarding the community Joincube (www.joincube.com), is a collaborative business solution that enables employees to connect privately and securely with their colleagues in a social network, from any browser or smartphone, thereby improving communication and increasing productivity These are great initiatives that we can learn from and they enable us to find meaningful ways to help and support the glocal champions and great groups in Argentina. It shows that whilst Telefónica is a global company with worldwide aspirations, it also cares about local economies.

TREND 5 — MICRO MIGHTINESS

One of the key reasons for the lack of entrepreneurial activity is the lack of schoolbased preparation for self-employment and the negative social values and norms surrounding new and growing firms. We have the opportunity to help improve both.

With the launch of Wayra in Argentina in 2011, Telefónica has the opportunity to help mentor and train entrepreneurs. We could also consider taking part in community or educational initiatives to help educate young people about entrepreneurships and the opportunities to become successful glocal champions. Interestingly, a few existing projects endeavor to support great groups. For example, Codealike (www.codealike.com)

243

The Brazilian economy boasts a high level of entrepreneurial activity: 15.3% of the country’s population has their own business.

Out of all entrepreneurs in Brazil, 53% are women. Creating educational tactics for improving the growth of female entrepreneurs is essential.

244

The majority of the entrepreneurial population is described as necessity entrepreneurs. Out of all entrepreneurs in Brazil, 53% are women. Most female entrepreneurs are in the service industry, followed by manufacturing (which consists primarily of making products with their own hands), and then transportation and communication. They report a lack of financial capital and network resources to be able to grow their businesses. Creating educational tactics for improving the growth of female entrepreneurs is essential. Wayra gives us the opportunity to help entrepreneurs as a whole, but we could also consider making a commitment to help women, as they represent the majority of Brazil’s entrepreneurial population. PDI’s project “Empowering Women”, identified ways for us to support low-income women entrepreneurs through financial and educational services, which we are hoping to pilot in 2012.

Additionally, community projects run by the Fundación to help low-income citizens learn about the jobs of the future and could include a ‘module’ on how to become successful glocal champions and show them how technology can help them achieve their goals. Interestingly, a recent study by professors AnnaLee Saxnian and Richard Florida revealed that cities and regions with diverse workforces and frequent, interpersonal interactions are more innovative. As a case in point, innovation in Brazil, which has surpassed the UK as the world’s fifth largest economy, has been directly funded by the Brazilian Development Bank. There is a strong movement towards innovation and generating more Open Source projects. In 2011, Telefónica collaborated with Campus Party in Brazil to launch the Something Better initiative. The event was attended by Al Gore and Tim Berners-Lee, who shared the stage to discuss the early days of the web and to reveal their visions for its future. Digital inclusion was a major topic at the event, as only a quarter of Brazilians have internet access at home, and just over 40% of the population has a home computer. A panel including Brazilian Communications Minister, Paulo Bernardo, discussed the need to improve the infrastructure of mobile and web networks. Telefónica also sponsored the “Maddog Challenge,” a video contest created by Linux to raise awareness of free software and Creative Commons licenses. Additionally, BlueVia, our open-innovation platform for developers is very active in Brazil. BlueVia provides beta access to APIs allowing developers to start experimenting straight away, and

when Brazil comes out of beta the service will be accessible to over 60 million Vivo customers. In February 2012, BlueVia, Evernote & Wikimedia announced a hackathon in Brazil to increase the number people accessing and contributing content on Wikipedia, which is in itself a prime example of great groups’ success.

TREND 5 — MICRO MIGHTINESS

In Brazil

245

Areas of Opportunity

Remote and flexible working solutions

Open-hardware solution: Arduino

Collaboration solutions

M-services: health, financial services, advertising, education, etc

Global products and services

TREND 5 — MICRO MIGHTINESS

Areas of Opportunity

Local/community impact: Think Big, Ciudadanía 4.0

Investment/partnership with start-up: Wayra 5

Open innovation/crowdsourcing: Campus Party, Arduino, BlueVia

246

247

TREND 6 — MAKING MEANING

Making Meaning Trend 6 —

“There is no chance, no destiny, no fate, that can circumvent or hinder or control the firm resolve of a soul.” Ella Wheeler Wilcox 248

249

challenge

GR G R E AT OU PS

fre

nde

nce

ta cep

nce

m edo reputation

INF L PA U E N C RA DE E

ach

PLE LT I U M ME

SOCIAL SHAKE-UP RY MO ME NKS BA

pri

Main Trend Trend Manifestations Values

tio

exp

eri

iev

legacy

epe

ula

interaction

ind

stim

NE IDE WBO NT RN ITY

dge

realization

determination

M ME AKIN AN G ING

tio

le now

TREND 6 — MAKING MEANING

S CU MAR RA T TIO N

FOREVER GROW

conservation

SOULFUL LIVING ono

STACCATO CULTURE

O CR SS MI TINE GH

aut

nes

ora

sin

ion

b olla

ces

CREATIVE BOREDOM

ous

E NC DA O N U F AB F IN O

OD GO NESS SI BU

GLOCAL CHAMPION S

sci

pro

ion

discovery

con

lat

ati

pat

US RIO CU IND M

sel

gu f-re

per

tici

learning

coo

transparency

par

Our need for solidarity and imagination will evolve into a need for determined changes in our lifestyles. Instead of chasing on materialistic and ati gin a im individualistic pursuits, as people strive to make HA P HU PINE N T Sfor meaning themselves ER S S they reconsider their actions, dre am ing focusing on their longterm impact to the broader community. Soulful living on nti means they expectinvethe companies they interact with to conduct ‘good’ ebusiness vol uti on with an equal commitment to the well-being of people and the planet. nt me

vac

Go to: Making Meaning website section 251

252 253

TREND 6 — MAKING MEANING

Making Meaning: using determination to find meaning Never before has the concept of “speed” been discussed at such length. Douglas Rushkoff explains: “For the first time, regular people are starting to show signs of stress and mental fatigue, symptoms that only used to be known to air traffic controllers and 911 operators. Cellphone users now complain of ‘phantom vibration syndrome’, the sensation of a cell phone vibrating on your thigh, even though there’s no phone in your pocket”.1 We are living in a state of constant connectedness. Our minds rarely get the chance to wind down after a long day at work. Studies on productivity and well-being have demonstrated that leading a fast-paced lifestyle doesn’t necessarily bring more money or happiness. Studies have shown that correlation between income and Subjective Well-Being (SWB) is low in most countries.2 It has also been proven that a country’s productivity is not related to the amount of hours worked per week.3 Long hours contribute to stress, discomfort, and leave little enjoyment for our everyday lives. So, the time has come for people to re-evaluate what they consider to be important in life and what makes them truly happy. They use determination to focus on what really matters. As explained by bestselling author Daniel H. Pink: “Without sovereignty over our time, it’s nearly impossible to have autonomy over our lives”.4 Whilst multi-tasking has become an ubiquitous new behavior for most of us, people are reconsidering the pace of their lives and the role that technology can fulfill to bring more meaning and value. So called “Slow Technology” was introduced by Swedish design researchers Lars Hallnäs and Johan Redström in 2001 in a paper that championed designing technology to promote reflection. The Slow Technology Movement is driving a new kind of innovation that is geared towards creating a soulful living. Jack Mama, creative director of the Philips Design Probes (‘far future’ research initiatives) program believes that there is a shift toward people leading more fulfilling lifestyles. “Broadly speaking, speed and the way tech is evolving is based on the masculine trait of being faster and

Long hours contribute to stress, discomfort, and leave little enjoyment for our everyday lives.

254

Businesses should be inspired by the Slow Movement, which aims to improve nutrition and health, promote cultural, ecological and economic diversity; and accelerate the transition from an economy based on extraction and consumption, to an economy based on preservation and restoration.

quicker,” says Mama. “There’s a counter movement that’s starting to question this.” Based on his assumption that we are becoming more and more distanced from ourselves and nature as we are increasingly experiencing the outside world via a little backlit screen, his team has devised a whole range of products that will help us get back in touch with the natural world and its unpredictability. Slowing down forces us to consider the world around us. By doing so it makes it harder for us to overlook decisions that could have negative long-term impact. People will demand greater transparency from businesses. Already 70% of Millennials believe that the most successful companies of the future will be those that practice sustainability.5 Businesses should be inspired by the Slow Movement, which aims to improve nutrition and health, promote cultural, ecological and economic diversity; and accelerate the transition from an economy based on extraction and consumption, to an economy based on preservation and restoration. This is a global movement with the goal to create, as Pink says, “a healthy society - and healthy business organizations” that “begins with purpose and considers profit a way to move toward that end or a happy by-product of its attainment. We’re not designed to be passive and compliant. We’re designed to be active and engaged. Doing something that matters, doing it well and doing it in the service of a cause larger than ourselves”.6 To be successful and contribute to making meaning for people, businesses will have to rethink the way they conduct business, shifting aspirations from “making a killing” to “making a living”.

1 Rushkoff, Douglas Program or Be Programmed, 2011 2 Diener, Ed, et al, Physical Attractiveness and Subjective WellBeing, 1995 3 Source: OECD Report, 2010 4 Pink, Daniel H., Drive, 2011 5 www.adage.com/naomi-troni/4470 6 Pink, Daniel H., Drive, 2011

TREND 6 — MAKING MEANING

Main Trend: Making Meaning

255

“Without sovereignty over our time, it’s nearly impossible to have autonomy over our lives.” Daniel H. Pink, bestselling author of Drive

“Emotional Reboot” as the key to soulful living To derive meaning, people are determined to have a positive impact on their lives and the world around them. They are becoming a lot more conscious of the consequences of their individual actions, and as a result they are self-regulating their consumption to be more considerate to the world around them. Increasingly, we are seeing businesses offering opportunities for people to connect their consumption with that of others, to create a kind of soulful consumption. Toms1 shoes set a pioneering example with the One for One Scheme (for every pair of shoes purchased, Toms will give another pair to a child in need) and since then has been joined by many other businesses who share similar ethics. For example, Brazilian NGO Casa do Zezinho2 introduced a “Half for Happiness” campaign run in partnership with two supermarket chains. Customers were given the opportunity to buy half-size fresh food products at full price, with 50% going to the NGO focusing on low-income areas in the country. The supermarkets took care of quality standards, transport and storage throughout the process. Donations to the charity rose by 28%. People on the quest for an emotional reboot are enthused by a sense of mission. For instance, so-called ‘downshifters’ are people who accept less money in compensation for shorter working hours so they can allow more time for things they consider to be important in life. Some companies are taking notice of this shift in aspirations and are implementing the Results-Only Work Environment Program (ROWE) created by Cali Ressler and Jody Thompson, two former human resources executives at the American retailer Best Buy. In a ROWE workplace, employees don’t work to schedules. They don’t have to be in the office at a certain time, or any time, for that matter, as long as they get their work

To derive meaning, people are determined to have a positive impact on their lives and the world around them. They are becoming a lot more conscious of the consequences of their individual actions.

258

done. How they do it, when they do it, and where they do it, is up to them. Recent research found that more than 40% of current job types are compatible with teleworking and 79% of workers have a desire to do so. It is estimated that companies, communities and employees can save more than $650 billion a year on lower office costs, lower absenteeism and staff turnover, reduced travel, less road repairs, less gasoline consumption and other savings.3 Reporting on Best Buy’s ROWE results in Harvard Business Review, Tamara Erickson writes: “Salaried people put in as much time as it takes to do their work. Hourly employees in the program work a set number of hours to comply with federal labour regulations, but they get to choose when. Those employees report better relationships with family and friends, more company loyalty, and more focus and energy. Productivity has increased by 35%, and voluntary turnover is 320 basis points lower than in teams that have not made the change. Employees say they don’t know whether they work fewer hours - they’ve stopped counting.”4 Gap Outlet and Netflix have followed suit. Easing the pressure of speed enables us to get more meaning into our lives. According to British psychologist professor Guy Claxton, there are two modes of thought. “Fast Thinking” is rational, analytical, linear, logical. It is the behavior we display most of the time, living our hurried lifestyles. On the contrary, “Slow Thinking” is intuitive, woolly, and creative.5 Program such as ROWE encourage Slow Thinking to help people achieve emotional reboots and create soulful lifestyles that are good for them and for the businesses they work for.

Programs such as ROWE encourage Slow Thinking to help people achieve an emotional reboot and create a soulful lifestyle that is good for them and for the businesses they work for.

1 www.toms.com 2 www.casadozezinho.org.br 3 TeleworkResearchNetwork.com 4 Erickson, Tamara J., Task, not Time: Profile of a Gen Y Job, Harvard Business Review, February 2008 5 Honoré, Carl, In Praise of Slow: How a Worldwide Movement Is Challenging the Cult of Speed, 2005

TREND 6 — MAKING MEANING

Trend Manifestation #1: Soulful Living

259

“Downshifters are people who accept less money in compensation for shorter working hours so they can allow more time for things they consider as important in life.”

Good businesses manage the scarcity of resources and think long-term In the last three decades, the global population has consumed a third of the planet's natural resources. People are becoming more aware of scarcity and will embrace businesses that help them derive meaning and combat ‘planned obsolescence’. The Degrowth Movement, promoting the downscaling of production and consumption as a means of preserving resources while re-engineering a more equitable society, is gaining momentum. “Constant and instant growth is a failed paradigm”, suggests Nicolas Kosoy, an ecological economist at McGill University.1 As a result, new types of good businesses are being created. According to Lisa Gansky, mesh companies are businesses that eliminate the burden and expense of ownership by offering goods and services to consumers when and how they need it. For example, faced with rising gas prices and finite fuel resources, the costs associated with daily car use and maintenance are shifting consumer preferences towards the idea of sharing rather than ownership.2 Such businesses are good for society and for people. They create meaningful profits by promoting access, experience, and sharing over ownership and materialistic pursuits. Esther Dyson, a former journalist and Wall Street technology analyst, says one of the problems in business right now is its short-term thinking, which is spurred by the speed of the stock market. “When you can measure economic activity minute by minute, it makes it difficult, unfortunately, to not sacrifice longterm investment for short-term results.” If it were up to Dyson, slowness would be invited into business and Gross Domestic Product (GDP) would be defined differently, especially in relation to education and health care. “Our health care system right now is all about repair. If you thought long-term, you’d be good to your body, which is good for the economy.” Turning this idea into action, the B Corporation, created by three US entrepreneurs, refers to companies that amend their

The global population has consumed a third of the planet's natural resources. People are becoming more aware of scarcity.

262

bylaws so that their incentives favor sustainability and social impact instead of short-term economic gain. In the United States and Denmark, The Fourth Sector Network is promoting ‘the for-benefit organization’, a hybrid that represents a new category of organization that is both economically self-sustaining and animated by public purpose. Mozilla, creator of Firefox, is one such organization. Around the world we are witnessing an appetite for “good businesses”. The Co-op movement is growing fast because it offers a valid solution that changes lifestyles that lead to the destruction of the environment. In the last three decades, worldwide membership in co-ops has doubled to 800 million. In Colombia, SaludCoop provides health care services to a quarter of the population. In Spain, the Mondragón Corporación Cooperativa is the nation’s seventh largest industrial concern.3 The reason the co-op movement is likely to grow is because people are dedicating time to it and shifting their aspirations to a long-term, more sustainable gain that benefits society as a whole. 2012 has been recognised as the International Year of Co-operatives by the United Nations: “This is an acknowledgement by the international community that co-operatives drive the economy, respond to social change, are resilient to the global economic crisis and are serious, successful businesses creating jobs in all sectors”.4 This is a clear indication that good business is a global phenomenon that’s here to stay.

People are dedicating time to it and shifting their aspirations to a long-term, more sustainable gain that benefits society as a whole.

1 www.miller-mccune.com/businesseconomics/the-growth-of-degrowtheconomics-38390/ 2 www.lisagansky.com 3 Kelly, Marjorie, Not Just For Profit, s+b, Spring 2009 4 www.2012.coop

TREND 6 — MAKING MEANING

Trend Manifestation #2: Good Business

263

“The Degrowth Movement, the downscaling of production and consumption as a means of preserving resources while reengineering a more equitable society, is gaining momentum.”

Trend 6 Making Meaning Facts

266

Insights

273

Case Studies

275

FACTS

SPAIN

TREND 6 — MAKING MEANING

GERMANY

6.7

MILLION PEOPLE

ARE MEMBERS OF A CO-OP (15% OF THE POPULATION). 1

(1 OUT OF 4) ARE MEMBERS OF A CO-OP.2

ARGENTINA

BRAZIL

9.3

7.6

ARE MEMBERS OF A CO-OP (APPROX. 23.5% OF THE POPULATION).3

ARE MEMBERS OF 7,600 CO-OPERATIVES.4

MILLION PEOPLE 266

BRAZIL 7,600

ARGENTINA 12,670

GERMANY 8,106

FACTS

MEMBERS OF A CO-OP AROUND THE WORLD MILLION PEOPLE

MILLION PEOPLE

CO-OP SOCIETIES AROUND THE WORLD. 3,4,6

267

TREND 6 — MAKING MEANING

233,000 PEOPLE

EMPLOYED DIRECTLY BY CO-OPERATIVES IN ARGENTINA.5

FACTS

OVER JOBS CREATED BY CO-OPERATIVES JOBS CREATED BY MULTINATIONAL COMPANIES

100 MILLION

JOBS AROUND THE WORLD, 20% MORE THAN MULTINATIONAL ENTERPRISES.

268

440,000 PEOPLE

EMPLOYED DIRECTLY CO-OPERATIVES IN GERMANY.6

21%

jobs provided by co-operatives in the spanish labor market in 2007.7

THE LARGEST INDEPENDENT UK TRAVEL AGENCY IS A

FACTS

CO-OPERATIVES PROVIDE

CO-OPERATIVE.

8 269

FACTS

HEALTH CO-OPS PROVIDED MEDICAL AND DENTAL SERVICES TO

USD 3.6

TREND 6 — MAKING MEANING

of the brazilian AGRICULTURAL GDP IN 2009 WAS produced by CO-OPERATIVEs (TOTAL GDP OF 5.39%).

BRAZILIAN AGRICULTURAL CO-OPS EXPORTED THEIR PRODUCTS FOR A TOTAL OF:

BILLION.

FACTS

37.2%

17.7 MILLION 9 PEOPLE. 270

271

40% FACTS

OF CURRENT JOB TYPES ARE COMPATIBLE WITH TELECOMMUTING.10 Telework could save companies, communities and employees more than $650 billion a year (from lower office/ rental costs, to reduced travel and lower gasoline consumption).12

TELECOMMUTING IS DESIRED BY

70% OF WORKERS.11

The MBA Oath

TREND 6 — MAKING MEANING

The Degrowth Movement argues for the downscaling of production and consumption as a means of preserving resources, while re-engineering a more equitable society. “Constant and instant growth is a failed paradigm”, suggests Nicolas Kosoy, an ecological economist at McGill University and co-organizer of the International Conference on Degrowth in the Americas.1 “Growth may serve the interests of the corporate world”, says James Gustave Speth, professor at Vermont Law School “but it does not address the deeper problems that really matter.”2 In 2008, France’s President Sarkozy commissioned a widely cited report to suggest alternatives to GDP as the country’s principal policy-shaping economic measurement. A year later, the UK government’s Sustainable Development Commission (which shut down in March 2009), released its report “Prosperity Without Growth? Transition to a Sustainable Economy”, which argues for adopting a more widely encompassing definition of “prosperity”, and outlines 12 steps for achieving it while kicking the addiction to GDP growth.3

INSIGHTS

The Degrowth Movement

In the aftermath of the financial crisis, the MBA students of Harvard Business School took it upon themselves to introduce The MBA Oath - a Hippocratic oath for business grads in which they pledge their fealty to causes above and beyond the bottom line. It’s a Code of Conduct.4

Facing the burnout

272

1 CIRIEC, Las grandes cifras de la economía social 2 www.ica.coop/coop/statistics.html 3 Las Cooperativas y las Mutuales en la República Argentina, Instituto Nacional de Asociativismo y Economia Social (INAES), 30 June 2008 4 Organisation of Co-operatives of Brazil, 2008

5 Instituto Nacional de Asociativismo y Economia Social (INAES), September 2007 6 International Co-operative Alliance 7 Ministerio de Trabajo e Inmigración. Secretaría General de Empleo. Dirección General de Fomento de la Economía Social, del Trabajo Autónomo y de la Responsabilidad Social de las Empresas

8 www.co-operativetravel.co.uk 9 Organisation of Brazilian Co-operatives: Report 2010 10-12 www.TeleworkResearchNetwork.com

Physicians in high-profile settings like the Mayo Clinic face pressures and demands that can often lead to burnout. Field research at the prestigious medical facility revealed that letting doctors spend one day a week on the aspects of their jobs that were most meaningful to them - whether patient care, research, or community service - could reduce the physical and emotional exhaustion that accompanies their work. Doctors who participated in this trial policy registered half the burnout rate of those who did not.5

273

274

Personal Allowance Carbon Trading

PACT (Personal Allowance Carbon Trading) scheme, set up in 2007 by engineering consultancy WSP Environment & Energy, has signed up 2,200 members in the last few years, and is now available to employees in 15 companies, nonprofits, and government agencies. Staff get awarded an annual bonus if they keep within the carbon limit they have agreed to on a voluntary basis (e.g. energy use at home, travel to work). The idea is to get people thinking about sustainability issues in a relatively fun and interactive way. WSP reports about 70% of members hitting their targets every year, earning approximately £100 as a reward in the UK ($100 in the US, where the system is also used).7

1, 2 www.miller-mccune.com/businesseconomics/the-growth-of-degrowtheconomics-38390/ 3 www.miller-mccune.com/businesseconomics/the-growth-of-degrowtheconomics-38390/ 4 mbaoath.org

5 Shanafelt,Tait, et al. Career Fit and Burnout Among Academic Faculty, Archives of Internal Medicine 169, no. 10 May 2009: 990-995 6 www.ecomagination.com 7 www.wspenvironmental.com

Half For Happiness Brazilian NGO Casa do Zezinho’s Half for Happiness Scheme gave supermarket shoppers the opportunity to buy half portions of their fresh food products at full price, with 50% going to help those in need. The participating supermarkets took care of quality standards, transport and storage throughout the process. Donations to the charity rose by 28%.

casadozezinho.org.br

CASE STUDIES

GE reports that ecomagination (a broad range of products based on their commitment to imagine and build innovative solutions to today’s environmental challenges while driving economic growth) helped generate a 22% reduction in greenhouse gas emissions, a 30% reduction in water use, and create $130 million in energy efficiency savings. “There’s this theory that you have to pick one: economics or environmental performance. That’s nonsense. Innovation is the way you can have both,” says Mark Vachon, vice president of GE’s ecomagination program. Reducing environmental impact didn’t stifle GE’s business growth, as ecomagination generated $18 billion in revenue in 2010. Over the next five years, GE predicts that ecomagination product revenue will grow at twice the rate of total company revenue.6

TREND 6 — MAKING MEANING

Ecomagination

275

TREND 6 — MAKING MEANING

New Urbanism

newurbanism.org

CASE STUDIES

New Urbanism is a planning movement that raises our quality of life and standard of living by creating better places to live. New Urbanism also promotes the increased use of trains and light rail, instead of more highways and roads.

Greenstart Greenstart accelerates start-ups at the intersection of cleantech + IT, by providing $15,000 in seed funding.

greenstart.com

276

277

TREND 6 — MAKING MEANING CASE STUDIES

TAOA (There Are Other Alternatives) is a (French) international initiative that brings together group barter mini-projects based on "social money". This money acts as a kind of tool which helps communities to organize the principle of sharing in different ways, and helps members to collectively broaden their horizons by designing new projects together.

CASE STUDIES

TAOA

taoaproject.org

Gnewt Cargo Gnewt Cargo is an organization that strategizes emissions-free delivery of goods with its fleet of electric cars.

gnewtcargo.co.uk 278

279

Updated information at: globaltrends.telefonica.com/trends/trend6.aspx

Making Meaning reveals the importance for people and businesses to create profitable purpose, to consider long-term impact and to contribute to the community at large. We have the opportunity to develop products and services that create meaning and add value to people’s lives. To achieve this, we should consider the following concepts:

Embracing human-centric innovation 1.

282

Embracing human-centric innovation involves uncovering what ‘meaning’ signifies for different people, and identifying how to identify how to leverage our innovation expertise to deliver meaningful products and services. According to Guy Kawasaki, Apple’s former chief evangelist: “…those companies that are fundamentally founded to change the world, to make the world a better place, to make meaning are the companies that make a difference. They are the companies to succeed. My naive and romantic belief is that if you make meaning you will probably make money. But if you set out to make money you probably won’t make meaning and you won’t make money.” Kawasaki highlights three ways in which a company can create meaning: 1) Increase quality of life, 2) Right a wrong, and 3) Prevent the end of something good. We can investigate how technology can help provide more meaning for people. Prominent examples include: Slow Technology that encourages time for reflection, or green technologies that offer methods, materials and means for generating technology that is less harmful to the environment.

Designing products and services that empower people

Designing products and services that empower people to make better choices so that they can experience soulful living. We can help consumers monitor the impact of their purchasing choices, so that they can make conscious and informed decisions and self-regulate when appropriate. This can be applied to our core business but also to our new products and services such as health, financial services, future communications, etc. Additionally, we can contribute to improving the lives of the poorest citizens and help bridge the digital divide, so that everyone contributes to the Project Economy. We have a valuable opportunity, especially in emerging markets - such as LATAM countries - to make a real difference to peoples’ lives. Initiatives such as Empowering Women and the HTML 5 phone are great examples of profitable purpose.

TREND 6 — MAKING MEANING

Implications

283

TREND 6 — MAKING MEANING

Targeting investments to companies, people and partners who positively impact the world around them 3.

Successful investors, such as Bill Gates (one of America’s largest angel investors,) apply one main criteria when assigning investments: Companies that have the potential to make significant improvements to society and to the world. This is something we can learn from in the context of Wayra. Good investors know that if a company can truly make meaning, positively affect the people it touches/reaches and has a good management team, a long future of financial success will likely stem from that investment. Indeed, over a 10-year period (1998-2008) “best companies to work for” demonstrated a 6.8% stock appreciation versus. 1.0% for the average firm. (The European Business Review, Creating Abundant Organizations: Purpose, Passion, and Profits, by Dave and Wendy Ulrich).

284

‘Making Meaning’ as the core of our organizational culture

We need to make ourselves accountable in order to demonstrate that we conduct good business, through conservation of resources and cooperation. Our sustainability agenda should be widespread across all the teams and initiatives to ensure that everyone contributes at their own level. Considering how greatly meaning can contribute to building a sustainable and competitive organization, it’s important for company leaders to understand what makes an employee experience meaningful, and what role they can play in this process. Even in unfavorable circumstances, people can experience an activity as meaningful when it resonates with chosen values, connects them with people they like, raises their sense of self-worth or gives them an “ah-ha” moment of insight. From what we know about how the human brain works, the ability to create meaning is also enhanced by challenge (solving a problem that is neither too hard nor too easy), emotional safety (fostered by friendship, fairness, and selfesteem), autonomy (structure vs. management), and, perhaps most importantly, learning from experienced meaning-makers. Making Meaning provides a governing principle that acts as a constant motivator during tough times and drives home a sense of purpose and direction.

285

Creating meaning will enable us to better inspire those with whom we interact: clients, potential partners, employees and shareholders… because they will all be affected by a strong sense of purpose and meaning. We should continue to promote our commitment to sustainability, externally. Our Think BIG and Proniño programs are living proof of this. We also have physical properties, such as our retail estate and offices that can be used to showcase our commitment to sustainable living by presenting products and services that empower consumers to make sustainable choices, in terms of reducing or self-regulating consumption (such as Eco Rating and Recycling initiatives), or investing in the local community. For instance, all UK call centers are located in the UK. This shows our commitment to promoting the local economy.

286

In Spain Spain finds itself a difficult economic context. By the end of 2011, national unemployment had hit 22.85%, the highest national rate in nearly 17 years and the highest in the developed world, according to a report by INE, the national statistics institute. Joblessness is especially severe among 16-24 year olds, at 51.4 % in December 2011 more than double the European Union average. Spain’s youngsters

Within this challenging economic context, young people believe that businesses should step in and help improve the situation It is crucial to demonstrate our commitment to help create more opportunities. also known as ‘generación cero’ or ‘the ninis’ because they are neither in work nor in full time education and have few positive future prospects. Within this challenging economic context, young people believe that businesses should step in and help improve the situation. As such, it is crucial to demonstrate our commitment to helping create more opportunities for jobseekers and for the community as a whole. Telefónica Cataluña’s Ciudadanía 4.0 supports and promotes citizen initiatives that make vital use of ICT (Information

and Communications Technologies). The platform promotes various digital initiatives that citizens wish to develop and matches them with mentors and experts in different fields, in order to foster collaboration. Additionally, Wayra, Telefónica’s smart start-up accelerator, with offices in Madrid and Barcelona, demonstrates our commitment to supporting and nurturing entrepreneurship. These initiatives are essential ways to prove that we want to help change people’s lives for the better, while also helping us to become an allocentric company. Doing ‘good business’ is about building deeper emotional connections with our customers and the general community. Spanish consumers are particularly drawn to ‘good’ companies: 15% of Spaniards are already members of a co-operative. We need to embrace a ‘good’ innovation approach when we develop new products and services. This could include, for instance, finding ways to help people survive or even prosper within this difficult context. We could leverage our retail estate and evaluate feasibility of opening it to job seekers so that they can look for positions online or work on their CVs from our shops. We

We could consider leasing devices and offer flexible tariffs that can be adapted according to consumers’ income and specific needs.

TREND 6 — MAKING MEANING

Being accountable for ‘Making Meaning’ externally 5.

287

This is a great way to ensure that employees feel their work is meaningful. Some great projects were born from this initiative, including the ‘Dr House Whiteboard’ to improve the network diagnosis in our call centers, the ‘Web Conference Manager’ powered by Jajah technology, and the patent for ‘Item Response Theory on My Personality’, which enables us to build richer consumer profiles. We need to make ourselves accountable while continuing to do business.

In the UK Currently, UK consumers on the whole are suffering a sharp drop in disposable income as the cost of living rises faster than average wage growth. In 2011, the average UK family’s disposable income dropped by £552, according to a survey of 2,000 households by The Bank of England. The bank’s findings are

Adopting a Making Meaning innovation strategy to develop products and services that are allocentric will become key. 288

supported by The Office for Budget Responsibility, which forecasts a 2.3% slide in disposable incomes by the end of 2012. The cost of living is rising by 4.8% a year, outpacing the average wage growth of just 1.8% in the UK, As a result, 53% of UK consumers feel pessimistic about their disposable income, according to a consumer tracking survey? by financial research firm, Deloitte. In this context, consumers are downscaling. Adopting a Making Meaning innovation strategy to develop products and services that are allocentric will become key. Initiatives such as Eco Rating, O2 learn, and My O2 app (which enables consumers to monitor their consumption), are great examples of positioning O2 as a meaningful brand. We need to evaluate

how our new propositions in health, financial services, future comms. etc can help demonstrate our commitment to creating profitable purpose. For example, when we innovate, we should consider whether consumer ownership is necessary, taking into consideration the Mesh companies that offer products and services only when they are needed. We could consider leasing devices and offering tariffs that can be adapted according to a consumer’s specific needs. This requires our organization to provide greater transparency about the way we operate so that consumers can make informed decisions. Through its Think BIG program, Telefónica UK has credibly demonstrated its commitment to improving the community, with a compelling advertising campaign that drew attention to the program and showcased the success of the sponsored community initiatives. Such programs are crucial to build Telefónica’s overall credibility and they should be continued and implemented across all our markets, to demonstrate our global commitment to positively changing the world.

Telefónica’s plan to include a sustainability objective, as part of overall employee performance goals is a great way to ensure that people feel part of our sustainability agenda and derive a sense of meaning and purpose from their own actions. From an internal perspective, the Making Meaning trend can help drive higher productivity by ensuring that employees have a clear purpose that motivates them to contribute and undertake tasks with a sense of autonomy. Telefónica UK has embraced a flexible and mobile working ethos for several years, enabling employees to work on their own terms as long as they fulfill their objectives. Such forwardthinking working culture should be considered for our other markets, as it has proven to generate higher productivity and enhance employee satisfaction. Making Meaning as an organization will help us to create a strong company culture and will facilitate deeper emotional connections with our consumers.

TREND 6 — MAKING MEANING

could also follow the example of the Mesh companies that offer products and services only when they are needed. We could consider leasing devices and offer flexible tariffs that can be adapted according to consumers’ income and specific needs. From an internal perspective, we must endeavor to create a culture where employees feel that their role provides them with a sense of meaning and purpose. Currently, PDI has the 10Fridays program, which offers employees the chance to work on their ideas for 20% of their time (1day/week for 10 weeks). Each trimester, up to 20 staff members can explore new ideas and out-of-the-box concepts, enhance existing infrastructure or policies in a novel way or fix broken objects.

In Germany Today, Germany is the only country in Europe where long-term unemployment is decreasing. Improved flexibility in working time arrangements and non-standard work contracts has helped Germany to weather the economic crisis. Unlike in other European countries, Germany has a schoolto-work-transition program (an apprenticeship system) that has helped to keep

youth unemployment down, even during the economic crisis. This is interesting, as it reveals a synergy between governmental initiatives and our own Think BIG program for young people. What’s more, in 2010, Telefónica Germany launched the ‘Think Big Media College’ program, offering job prospects for educationally and socially disadvantaged youngsters.

289

German enterprises are at the technological forefront of green technologies, showing in practice that green and growth are synonymous. This enables us to participate in green innovation. Additionally, Germany has been focusing on innovations in high-tech manufacturing during a time of a slowdown for services, banks and insurance providers. The manufacturing resurgence of 2010 was further supported by the flexibility of social partners that helped retain skilled labor until demand reemerged. With plans to set up Wayra - Telefónica’s smart start up accelerator in Germany - We are

290

demonstrating our commitment to supporting innovation and entrepreneurship in order to generate more job opportunities. Furthermore, German enterprises are at the technological forefront of green technologies, showing in practice that green and growth are synonymous. This enables us to participate in green innovation through Wayra, and also to providing products and services that can help people consciously make the right choices. This will help is to build deeper emotional connections with consumers. Making Meaning demonstrates the importance of presenting Telefónica as a good business for people and the community, but also to empower people to create soulful lifestyles for themselves. We know that German consumers are particularly interested in leading sustainable lifestyles, and in interacting with companies that do good business. Initiatives that promote greater transparency, such as the virtual platform for labeling activities in Germany and Europe, provide consumers with updated information on over 300 eco-labels and the certification systems behind each one (www.labelonline.de). This mirrors our own endeavor with Eco Rating (launched in Germany in 2011), to enable consumers to make informed purchases when seeking a new device. Such initiatives are important, as they help create meaning behind the O2 brand for both our consumers and our employees. Additionally, recycling programs are important to German consumers, and Germany leads the way in that respect among other European countries. O2 Recycling is therefore an important initiative to pursue.

In Argentina Argentina’s context shows not only sustained growth but also highlights consumer confidence. Unemployment is down to 7.1% and the trade surplus in 2011 reached $10 billion. From 2002 onwards, Argentina has grown nearly twice as fast as Brazil, and has sported one of the highest growth rates in the world.

Argentina has grown nearly twice as fast as Brazil, and has sported one of the highest growth rates in the world. Consequently, the government has increased social spending from 10.3% of GDP, to 14.2%. Inequality, and moderate and extreme poverty have fallen by roughly two thirds. Furthermore, the government has been tackling the issue of the digital divide. In mid-2010, Argentina launched the Connected Plan, to bring broadband to the entire country by building a national fiber-optic system. The state invests in the infrastructure, but customer service is provided by local operators (both private and co-operative). The program also includes NAC- Núcleos de Acceso (Access to Knowledge) installations. The plan currently seeks to offer NAC to each of the 2400 municipalities (The NACs have WiFi rooms, training rooms and Open Digital Television). Additionally, the program’s aims to provide three million netbooks between 2010 and 2012, to every student and teacher.

By the end of 2011, 1,800,000 netbooks had been delivered. The program includes special content and online assessments. In addition, in 2010 the government launched the TDA Program (Open Digital Television), which aims to cover 88% of national territory with TDA and to cover the remaining territory with a DTH (TDH) satellite service. With more consumers having access to connectivity, we have a clear opportunity to ‘teach’ people how digital technology can empower them by helping them make the right choices and by opening up new opportunities. This fits very well with Telefónica Argentina’s program: “The Power to Transform”, which is dedicated to improving lives, facilitating business development and contributing to the progress of society in Argentina, by providing innovative services based on Information Technology and Communications. Additionally, Telefónica Argentina has implemented a series of programs to help employees derive meaning from their work and position Telefónica as a Good Business. For example, Telefónica Argentina offers flexible working schedules to help people achieve work/life balance and the Horizon Program to help employees strengthen their knowledge, skills and behaviors in order to evolve within their careers at

In the Great Place to Work ranking of Argentina’s best companies, Movistar ranked #3.

TREND 6 — MAKING MEANING

It is a joint program run in collaboration with the German Children and Youth Foundation (DKJS), which aims to open up future life and job prospects to young people through creative use of new media. The participants with the most creative ideas will be promoted in special autumn camps. After finishing Media College, they will be provided with internships in professions directly connected to digital media. Programs such as these are vital to show that as a corporation, we make a tangible commitment to helping people derive meaning for themselves.

291

At present, the country’s 12,670 co-operative societies have over 9.3 million members - approximately 23.5% of the population. (“Las Cooperativas y las Mutuales en la República Argentina”, Instituto Nacional de Asociativismo y Economia Social (INAES), 30 June 2008).

In Brazil

292

Brazil has claimed the UK’s spot as the world’s sixth largest economy, Official figures showed its economy rose 2.7% in 2011. In comparison with the UK’s 0.8%. France remains in fifth place behind Germany, Japan, China and the US. Brazilian per capita income remains less than a third of that enjoyed in the UK, at $11,000 (£7,000) per head, but the situation is constantly improving while western economies largely stagnate. Within this context, it is perhaps unsurprising that Wayra, Telefónica’s smart start up accelerator, was originally created in LATAM. Whilst some LATAM countries like Brazil are benefiting from exponential growth, there are still few entrepreneurship successes to talk about. Wayra provides an opportunity to support entrepreneurs who want to positively impact the world around them. Companies like Natura (the direct sales cosmetic company), which has earned a reputation

for providing work opportunities for women of all backgrounds, are proving very popular in Brazil. Against this backdrop of great economic growth, Brazilians are keen for the whole nation to become upwardly mobile, According to a recent study, 50% of Brazilians aged 18 to 24 seem to be more connected to collective discourses than to individualistic ones. 74% claim that they “feel compelled to do something for the collective in their daily lives” (Box 1824, Brazilian Dream Report, 2011). This demonstrates how a new generation of consumers will be interested in companies that act for the ‘greater good’ and benefit the entire community. Companies that are allocentric, in other words, those that are actively trying to bridge the digital and social divides, will be embraced by tomorrow’s consumers. In Brazil, only 6% of people have broadband at home. The country has 115% mobile penetration, 82% of which is made up of

50% of Brazilians aged 18 to 24 seem to be more connected to collective discourses than to individualistic ones. 74% claim that they “feel compelled to do something for the collective in their daily lives”. feature phones. Therefore, more needs to be done to create services and opportunities for the vast majority of people in Brazil. PDI’s “Empowering Women” project, conducted in 2011 in Brazil and Columbia, highlighted the opportunities for companies connect with low-income women. The HTML 5 phone project is another way to show that we are trying to do good business, by creating a smartphone that is affordable for most customers. Campus Party Brazil launched the

“Something Better” initiative as a collaboration between Jose Maria Alvarez Pallete, president of Telefonica LATAM and Paco Ragageles, one of the Campus Party founders. “Something Better” aims to encourage tech fans to contribute to projects that carry social benefits. “Something Better” seeks to become a platform through which technology changes our lives for the better. BlueVia, our openinnovation platform for developers has recently teamed up with WikiMedia and Evernote to create an e-inclusion hack to generate new ideas and services, especially those focused on feature phone users. These initiatives are important for our consumers to see, as they elevate our brand from ‘business’ to ‘good business’. They also enable us to expand our footprint into new segments, while internally endowing employees with a sense of ‘greater purpose’ and achievement.

TREND 6 — MAKING MEANING

Telefónica Latin America. As a result, In the 2011 Great Place to Work ranking of Argentina’s best companies with over 1000 employees, Movistar ranked third, and was named the best company in the telecommunications sector. Telefónica, in turn, ranked No. 12. It is important that we keep developing new and innovative ways to create meaning for our employees and our consumers, as it is clear that allocentric companies are more compelling. In Argentina, such companies, like the co-operatives, are very popular.

293

Areas Of Opportunity

Human-centric innovation: discovering how to create ‘meaning’ for our consumers through technology

Emerging area: low-income consumer segments, emerging markets

TREND 6 — MAKING MEANING

Areas Of Opportunity

6 2

Slow technology: innovating to enable consumers greater time to reflect and spend on what matters to them

The future of work: flexible and remote working systems and solutions 7

Sustainable innovation & green technologies

Community projects built on existing initiatives, such as Ciudadanía 4.0, and Think BIG for people and planet

Affordable technology (tariffs and devices)

294

295