This originally started as 10 predictations for 2012, but while thinking about and refining it, these turned into one thought / prediction with several proof points.
The Rise of the User Experience – Design Thinking
2012 will be the year of design thinking. We will see products and services that provide a consistent end-to-end user experience dominate the market. It will be the products designed to be easy those that win over the complex ones.
Products will no longer mainly succeed on tech specification, but a lot on user experience. Marco Arment already made the point on his extension of the initial Amazon version of the Kindle Fire vs. iPad 2 comparison.
The major question will no longer be who owns the customer, but who owns – and manages and improves - the overall user experience, because this is where the competitive differentiation will happen. And user experience includes everything from starting to use / subscribing to – using – handling faults around products and services.
Telco operators will need to re-consider what their products and services are and design them around the end-to-end user experience paradigm. In the past this was simple because the services: voice calls, SMS, basic data services have been defined by standardization, which – besides the capacity and coverage issue – did take care (or not) about the simple user experience. When starting to look at new and different services like content, video, cloud storage the design of the user experience becomes more difficult and involves element outside the control of telco operators.
And so here are the remaining “predictions” or discussion points around this theme.
1) Smartphones and Tablets
The leading position of Apple’s iPhone and iPad in the smartphone and tablet market in terms of defining the standard for user experience and achieving the highest profitability will not be challenged soon, while Android will definitely lead in terms of market share.
Following the design thinking theme above, the major challenge for Android relates to the fragmentation of devices, device capabilities and screen size (see overview of screen sizes at Stephanie Rigger). This significantly complicates the design of a consistent user experience across a broad set of devices (design implications at Jeffrey Feldman)
One company taking Android to the next level is obviously Amazon with the Kindle (Fire). And while definitely not a competitor in the full tablet space, it is interesting to see them moving Android into a closed content (mainly books) delivery device with their own ecosystem. Creating the only Android-based tablet-like device with substantial sales numbers by owning the complete user experience.
The other element of increasing customer frustration around Android and the device fragmentation is the OS upgrade complexity and un-availability of OS upgrades to many devices. The latest take on this the Samsung Galaxy S, which is not getting a Android 4.0 IceCreamSandwich upgrade.
It will be interesting to see how the only other serious contestant in the space – Microsoft Windows Phone – is doing with the launch of Windows 8. At least from the presentation it looks as if there will be a very strong framework and guidelines on the user experience for the Metro GUI.
Even if some claim that it is too late, I believe that Microsoft and Nokia will see a strong start, if they jointly work on putting all the pieces of a strong user experience and ecosystem together. And yes, it will be Microsoft and Nokia together driving this; alone on their own each will fail.
Oh, and forget about WebOS and RIM in this space. Both lacking the momentum on designing and pushing a competing user experience paradigm into the market.
2) Clouds and Cloud Computing
Besides the current hype in clouds and cloud computing – which even made it to the daily newspapers – it is obvious that in the future for mobile applications a cloud-based backend infrastructure one way or another will be essential, not only for data back-up, but also as the core element for syncing among several (mainly mobile) devices. Any application missing this component will have a severe competitive disadvantage.
The cloud infrastructure, including the APIs to integrate it into applications will be of equivalent importance as the Operating System. Therefore the move by Microsoft to add iPhone support to their Skydrive cloud offering is very interesting. This creates a new competitive space with the big players Amazon, Google, Apple (potentially Facebook) and currently some smaller companies like dropbox. But in the mid-term this will be a play around economies-of-scale, the size of the related eco-system and – again – the overall integration into the application user experience. So the big players have a definite advantage.
Telco operators will have only 2 options in this game: (1) bundle access to – potentially other companies – clouds as part of their existing service offering and thus enable easy cloud service for applications or (2) provide own specific / focussed applications (e.g. around music / video streaming) for which they design the complete end-user experience including the cloud backend infrastructure.
3) Television
After the rumors around Apple’s extended entry into Television – fueled by the Steve Job’s quote that he has “cracked” the TV problem in Walter Isaacson’s biography – there are high expectations for this in 2012.
My take on this is that it will be less spectacular than many expect.
A lot of discussion – especially with the technical people has been – about what Apple’s future TV would bring around screen resolution, integrated vs. separate receiver box, integrated hard disk recorder, TV channels as apps etc. And it seems that Siri-based voice (remote) control is one of the safer bets on what the Apple TV will bring.
However, all of this does not sound like a really game changing improvement of today’s TV experience, but obviously the previous Apple product announcement have put the bar very high.
Especially the launch of the iPhone has put Apple in the middle of an international eco-system of companies, the mobile operators and application developers, like the iPod and iTunes did with the music and movie companies. Looking at the overall structure of the TV industry makes the previous eco-systems look simple, especially when considering it on a global level. Not only are the different legal structures with public and private TV stations, different distribution channels via air, cable and satellite and especially the multitude of content owners, e.g. around sports. And finally the topics that probably needs the most improvement in today’s TV experience: advertising and commercial breaks. Just looking at the huge amount of money TV channels pay every year for major licenses, e.g. olympic games, NFL or MLB, and that this money is re-financed by selling advertising airtime.
“Cracking” the TV issue would somehow involve re-designing or re-defining the content owner, production, distribution and advertising ecosystem as well as providing a significantly improved user experience. I currently don’t see this playing out in the short term.
So the two interesting questions are, what will Apple actually launch around TV and what will the competitors, like Samsung, do in the mean time.
4) Mobile Payment
2012 will definitely be the year that mobile payments takes a major step forward – NFC (Near Field Communication) will not be part of the winning game and the role of mobile operators in the game is challenged.
Many initiatives with strong backers have been (Google Wallet , mpass (Germany) or will be launched soon (ISIS).
But just launching the mobile payment channel is not enough. Contemplating the user experience and value proposition for both the user (buyer) and the merchant is essential. Square provides some excellent examples of this, including a smartphone app for users. And the SME bundle together with T-Mobile shows how to market these offerings as well as the role of the mobile operator.
In the competitive space of companies driving into the mobile payment space, credit card companies and Internet companies (Google Wallet – Paypal) are the strongest contenders. An interesting role will be for mobile billing aggregators (like Zong - also used by facebook – and boku) who consolidate local operator based billing capabilities.
Also very interesting will be the evolution in developing countries where neither banks nor credit card companies nor Internet companies have a payment infrastructure comparable to the one in developed countries. This is where telco operators are in the right spot to take over, if they manage to move quickly and consolidate the end-to-end use cases and user experience.
5) LTE
There should be no debate that LTE (the next generation and high bandwidth mobile networking standard) will continue to move into the market in 2012.
Following the initial theme for this year about designing and deciding on the overall user experience, however two topics around the introduction and usage of LTE will be still interesting to watch.
The first is the tradeoff between high bandwidth and battery-life of LTE capable smartphones. The initial reviews (Shawn Blanc and Engadget) of the Google/Verizon/Samsung Galaxy Nexus phone suggest that battery-life i.e. usage is seriously limited when using or even enabling 4G/LTE connectivity. Compare this to many of Apple’s design decisions that prioritize battery life over latest technology features and user experience over tech specs. And battery life is definitely a major and noticeable part of the user experience as the latest hick-up on the iOS upgrade by Apple has shown.
The second interesting topic for LTE is the evolution of the related data tariffs. As mobile operators try to balance investment for next generation wireless technology with customer expectation for flat-rate data bundles (i.e. limited revenue) as well as the Internet competition for major services (voice, messaging, etc.), there is a tendency to create more and differentiated and complex data tariff bundles with a large number of options. While tempting from a business perspective this might be counter-productive from the end user view.
6) Newspapers and ePublishing
One major disappointment – at least for me – in the tablet space has been the challenging user experience for electronic forms of newspapers and magazines. While ebooks have an immediate appeal (good readability, easy to transport), the usability of magazines is either clumsy and slow (e.g. Wired) or visually challenging (i.e. hard to read, e.g. M/I/S/C on Zinio).
The major issue seems to be the approach to “copy” the magazine’s hardcover version into an electronic format. This becomes even worse when looking at daily newspapers (I just gave up on the electronic copy of my local newspaper).
The very exciting approach of PushPopPress with Al Gore’s book “Our Choice” is very much challenged after the acquisition of the company and technology (but probably mostly design talent) by Facebook.
What we will see – or at least I hope we see – in 2012 are approaches that separate the magazine/newspaper content from the traditional format and move it through a separate / dedicated publishing platform that focuses on the needs and expectations of mobile users.
And that adds to the standard content the specific features and capabilities of mobile tablet devices, in a similar way the London Tube map was transformed into a fully interactive application with a much deeper user experience.
So much for the major points related to my overall theme for 2012. There are a few more topics for this year, which I’ll follow-up separately, e.g. Social Network Aggregation - it is become increasingly difficulty to synchronize across different platforms, Mobile Advertising - will get more annoying as on the desktop, Telco Operator Network APIs - one of my favorites and a few things going on here, but still challenging, Patent Wars - everybody fighting with everybody over patents, will become even worse, but reminds me of some years ago with other software patents and we also survived those.
Let’s enjoy the fun that 2012 will bring.
The launch of Tizen (collecting the remains of MeeGo and LiMo) explicitely mentions the Wholesale Applications Community (WAC) APIs as one element of the solution. The other one mentioned was HTML5.
Interesting interview with Windows Phone chief Andy Lees in the Seattle Times.“Q: Do you think the iPhone 4S (running on iOS 5) gives you an opening? Do you think they missed an opportunity there?A: Yes I do. I think, from an end user’s experience on the software, there’s a lot of interesting reviews written comparing us to iOS 5 and the amount that we’ve got done in 11 months — so some people (are) making comparisons of pace.Perhaps the biggest comparisons people are making is our people-centricity. The more capabilities we add into our phone, the more delightful it becomes to use because you seem to have more at your fingertips without this clutter and confusion of the other platforms.From a pure hardware perspective, I was surprised they’re not giving the consumer more choice. People want a variety of different things.”
What can telecommunication CEOs learn from Steve Jobs. Interesting question discussed at TM forum, based on an initial discussion on TelecomAsia.It has some good points in terms that Steve Jobs as the CEO of a telco operator could have made the history turn out differently regarding smartphones and mobile data services.
However, I believe that the focus on content selling is driven more by the current assumption that this is the business saviour for operators rather than being the key success story of Steve Jobs and Apple.
Apple’s business is in selling hardware. Content (music, video, apps) contributes only a small portion of their business. So in order to learn from Steve Jobs you have to take a different angle.
Here are my 3 key lessons for the telco industry:
#1: design insanely great products that stand out- telco products look the same almost around the globe, nothing really stands out
- focus on customer experience not on technology
- sweat out the details
- simplicity
#2: get your hands dirty with optimizing the business backend
Steve Jobs and now-CEO Tim Cook managed to turn Apple into the most profitable device manufacture by rigorous focus on logistics / business processes / supplier management. This is the invisible or at least mostly ignored part of the Apple success story.
#3: focus on the overall the experience
for customers and partner (read application developers).
- help the customer and make them feel treated well (retail stores, genius bars, migration services)
- don’t make them feel you just want to sell more
- no 10 pages of small print in product offerings
- support developers with a complete development environment, not just the APIs
And at the end just again getting back to the de-mystification of the innovation genius of Steve Jobs.
Just reading through the summer (actually the second) issue of M/I/S/C (Movement Intuition Structure Complexity) a publication of Idea Couture. An article about the experience and end of El Bulli, Ferran Adria’s fancy restaurant of molecular cooking and the future of food got me thinking how this would translate into the telecommunication business
What you have is the idea for an innovative restaurant or rather a sensory experience, where people apply and enter a lottery to get one of the 50 places each night for the 6 month of the year it is open.
So it combines a sensational experience with a high level of exclusivity. And maybe just because I’m writing this on a plane, it sounds very much like the top-level frequent flyer class of most airlines. The important part is also that there is something money can not buy.
Start thinking about it from a telecommunications provider perspective and you find that (1) this is not part of their standard offering and (2) it gives you a new angle about what customers desire about the service (hint: it is not free SMS – fails the money can buy test)
Here a just a few thoughts: better quality of service (like a frequent flyer), and this could be faster connect, quaranteed bandwidth, more bandwidth. Or on a more sophisticated level: a cool app that you can not buy for your smartphone, a free contract for the spouse (maybe also fails the can’t buy test), a special phone – immediately identifiable as member of a special tribe.
Interesting view in Forbes on the impact of 99$ HP TouchPad on the iPad future: “Why The Undead $99 TouchPad Might Portend The iPad’s Doom”
One of the more suprising announcements in Apple’s WWDC keynote was iMessage in iOS5.
Looking at all the new features Apple announced for iOS and MacOS during the WWDC keynote I had a strange feeling of deja vu.