You are on page 1of 56

REGAN LEGGETT

WHAT’S NEXT
IN TECH?
INSIGHTS | IMPLICATIONS |
IMPACT ON THE CONSUMER
Copyright ©2017 The Nielsen Company. Confidential and proprietary.
“THE FUTURE IS ALREADY HERE
IT’S JUST NOT
EVENLY DISTRIBUTED.”
WILLIAM GIBSON
OUR APPROACH

+ >

IDENTIFY GATHER IMPACT ON


EMERGING EXPERT THE CONSUMER,
TECHNOLOGIES PERSPECTIVE RETAILER AND
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

SUPPLIER
LANDSCAPE

3
“We always overestimate the change that will occur
in the next two years and underestimate the change
that will occur in the next ten. Don't let yourself be
lulled into inaction.”
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

Bill Gates

4
SEE TECH TRENDS IN TOTALITY
Understand emerging technologies in relation to other factors

Impact

TECHNOLOGY
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

Disruptors Considerations

Scenarios
5
WILL IT WORK? IT REALLY DEPENDS ON…

CONSUMER “AFFORDABLE” LEGISLATION:


BACKLASH IS SUBJECTIVE YAY OR NAY

COST AS CYBER DEMONSTRATED


Copyright ©2017 The Nielsen Company. Confidential and proprietary.

A BARRIER SECURITY SUCCESS VS FAILURE

MACRO FACTORS BY COUNTRY

6
HERE’S HOW WE DID IT
Marrying a myriad of perspectives

opinions MAINSTREAM + PERIPHERAL + COUNTER

CONSUMER
realities TECH WORLD + REAL WORLD +
WORLD
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

EXISTING + THAT WILL SHAPE THE NEXT 5 YEARS


EMERGING
TECHNOLOGIES CONSUMER. PRODUCTS. RETAIL. INDUSTRY. SOCIETY.

7
14 TECHNOLOGY SHIFTS >>
Spread of existing technology Nanotechnology
infrastructure and smart materials

Robotics – drones and services The sharing economy

3D printing – consumer, medical,


Autonomous transport systems
manufacturing
Machine learning
Wearable Internet and devices
and decision making
The Internet of Things –
Big data and artificial intelligence
connected home and cities
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

Medical technology – implantable, Cashless payment tech


replacement, delivery – neuro (apps, Bitcoin etc.)

Virtual and augmented reality New energy technology

KEY TECHNOLOGIES THAT ARE IN PLAY OR EMERGING IN THE


TECHNOLOGY WORLD
8
MEASURE IT – TO ANTICIPATE AND MANAGE IT
We asked: What’s the impact on geographies, consumers, retailers and suppliers?

5 A game changer – over 70% impacted revolutionary

4 Big impact – over 40%; this is key to success

3 Significant – at least 30% impacted

2
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

Evolutionary change – at least 20% impacted

1 A small amount of change – less than 10% impacted

0 Absolutely no change

9
MATURE MARKET TECHNOLOGY THAT EXISTS
TODAY RANKS HIGHEST
Ranking of tech shifts with biggest impact – global

Spread of existing technology


and infrastructure (3.8)

Machine learning
and decision making (3.8)

GLOBAL Big data and


Artificial intelligence (3.8)
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

Cashless payment technology


(3.7)

10
SUBTLE DIFFERENCES EXIST ACROSS GEOGRAPHIES
Ranking of tech shifts with biggest impact – by region
The sharing economy (4)
Spread of existing technology and infrastructure (3.8)

SOUTHEAST ASIA Big data and artificial intelligence (3.6)


Cashless payment technology (3.2)

Robotics – drones and services (5)


Machine learning and decision making (5)

PACIFIC Big data and artificial intelligence (4.5)


The Internet of Things – connected home and cities (4)
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

Cashless payment technology (4.3)


New energy technology (4.3)
CHINA Medical technology – Implantable, replacement, delivery – neuro (4.3)
Machine learning and decision making (3.7)

Spread of existing technology and infrastructure (3.8)


The sharing economy (3.5)

INDIA Big data and artificial intelligence (3.5)


Cashless payment technology (3.5)
11
SUBTLE DIFFERENCES EXIST ACROSS GEOGRAPHIES
Ranking of tech shifts with biggest impact – by region
The Internet of Things – connected home and cities (3.7)
Cashless payment technology (3.7)

MIDDLE EAST Big data and artificial intelligence (3.3)


Spread of existing technology and infrastructure (3.3)

Cashless payment technology (4.4)


Spread of existing technology and infrastructure (4.2)
SUB SAHARAN Big data and artificial intelligence (3.2)
AFRICA
New energy technology (3.2)
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

Machine learning and decision making (4.5)


Cashless payment technology (3.5)

EASTERN EUROPE Robotics – drones and services (3)


Spread of existing technology and infrastructure (2.5)

Machine learning and decision making (4.4)


Autonomous transport systems (3.8)

WESTERN EUROPE Big data and artificial intelligence (3.6)


Robotics – drones and services (3.6)
12
SUBTLE DIFFERENCES EXIST ACROSS GEOGRAPHIES
Ranking of tech shifts with biggest impact – by region

Big data and Artificial intelligence (4.4)


Machine learning and decision making (4.2)
NORTH AMERICA Robotics – drones and services (3.6)
Cashless payment technology (3.6)

Spread of existing technology and infrastructure (4.3)


The sharing economy (4)

LATIN AMERICA Big data and Artificial intelligence (3.3)


Copyright ©2017 The Nielsen Company. Confidential and proprietary.

Wearable Internet devices (2.9)

13
BUT SURPRISING CONSISTENCIES
Ranking of tech shifts with biggest impact – by region
GLOBAL SOUTHEAST PACIFIC CHINA INDIA
ASIA
Spread of existing technology infrastructure 3.8 3.8 3.8

Robotics 5

3D printing

Wearable Internet and devices

Big data and artificial intelligence 3.8 3.6 4.5 3.5

Medical technology 4.3

Virtual and augmented reality

Nanotechnology
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

The sharing economy 4 3.5

Autonomous transport systems

Machine learning 3.8 5 3.7

The Internet of Things 4

Cashless payment technology 3.7 3.2 4.3 3.5

New energy technology 4.3

14
1 > SPREAD OF EXISTING
TECHNOLOGY AND INFRASTRUCTURE
FORECAST What’s included

BY 2020: The spread of internet, broadband and all


4B PEOPLE existing products/services and improvements
CONNECTED that support new technologies.
TO THE
INTERNET Example

Cisco Visual Networking Index (VNI)


Complete Forecast for 2015 to 2020:
• Global IP traffic will triple at CAGR of 22%
over the next 5 years.
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

• More than 1B new Internet users are expected


to join the global Internet community.

“The number of internet users


in India is expected to almost
double to 600M by 2020 as the
country adopts 4G and 3G.”
www.warc.com
Source: http://aptantech.com/2016/06/there-will-be-4-1-billion-internet-users-globally-by-2020-cisco-vni-forecast/ 15
2 > BIG DATA AND ARTIFICIAL INTELLIGENCE
FORECAST What’s included
BY 2020: BIG
DATA AND Integration and processing of increasingly varied
BUSINESS and big data sets to gain insight beyond
ANALYTICS traditional data and approaches.
MARKET WILL
GROW TO Example
$203B, DOUBLE
THE $112 The American Express Company is using big data to
BILLION IN 2015 analyze and predict consumer behaviour.
- IDC By looking at historical transactions and incorporating
more than 100 variables, the company employs
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

sophisticated predictive models in place of traditional


“AI and its cousin machine
learning will see tremendous business intelligence-based hindsight reporting.
growth because there is This allows a more accurate forecast of potential
simply too much data coming churn and customer loyalty. In fact, American Express
in to be analyzed to wait for has claimed that, in their Australian market, they are
able to predict 24% of accounts that will close within
human eyes.”
DATAMATION four months
.ICAS.COM

16
3 > MACHINE LEARNING AND DECISION-MAKING
FORECAST What’s included

BY 2022,: 20% Includes software, programs and devices that


OF DELIVERED
learn or are programmed to assess history,
PURCHASES
WILL COME behavior and inputs to make decisions, take
FROM action, all while learning over time.
SUGGESTED OR
PROMPTED Example
SERVICES
Such leading technology firms as Google,
ON DEVICES
Facebook, Amazon, Baidu, Yahoo, Tesla
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

“AI received $974M


Motors, and Walmart Labs have been using
funding (June 2016) and these machine learning tools to improve
this figure will only rise analytics applications for image recognition,
with the news that 2016 programmatic advertising, and product and
saw more AI patent
content recommendations.
applications than ever
before.” NEXTPLATFORM.COM
VENTURE SCANNER
2016
17
4 > CASHLESS PAYMENT TECHNOLOGY
FORECAST What’s included
BY 2020: 30% OF
GLOBAL RETAIL
Consumer, commercial and public transactions
SALES WILL BE increasingly move toward cashless currency
MADE THROUGH through technology (e.g. Bitcoin, blockchain).
AN APP OR
SOFTWARE Example

World Economic Forum Technological Tipping


Points survey:
World’s move to Bitcoin will be when more than
10% of GDP is stored on blockchain technology;
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

estimated to occur by 2027.

58% of respondents expected this to have


“Singapore is no longer a cash- occurred by 2025 even though currently, the
dominated economy, as over total value of Bitcoin in the blockchain is about
60% of all yearly transactions $20B or about 0.025% of global GDP of $80T.
are cashless.”
THEMERKEL.COM
18
5 > THE SHARING ECONOMY
FORECAST What’s included

BY 2025: Any platform that leverages technology to


GLOBAL connect users and suppliers enabling them to
SHARING share, buy, sell, hire from each other.
ECONOMY
IS WORTH
Example
$300B
SHARING MADE POSSIBLE BY PLATFORMS:
“In 9 years, we estimate the world’s
Online marketplaces, mobile apps/location
sharing economy will services or other technology-enabled platforms
expand by nearly 12Xs, to
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

have reduced the transaction costs and friction in


reach $300B. the system resulting in economic gain for all
Peer-to-peer lending, accommodations, involved, divided in much finer increments.
ridesharing, content streaming and
online outsourcing are undergoing an
unprecedented expansion, but their AIR BNB – Peer to Peer lending – Relayrides
current size represents a fraction of what
companies will "share" in the future.”
Greenbiz.com - Aug 2016

http://www3.weforum.org/docs/WEF_GAC15_Technological_Tipping_Points_report_2015.pdf 19
6 > ROBOTICS, DRONES AND AUTOMATED SERVICES
FORECAST What’s included

BY 2019: MAJOR Automated and “smart” machinery and


LOGISTICS systems that can take over human tasks.
COMPANIES
WILL HAVE
100%
Example
AUTOMATED
SUPPLY CHAINS RETHINK ROBOTICS
• Baxter (released in 2012) received overwhelming
“Fewer than 5% of response from the manufacturing industry, selling
occupations can be entirely out of their production capacity through April
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

automated using current • Software platform allows Baxter to do a more


technology. However, about complex sequencing of tasks: picking up a part,
60% of occupations could holding it in front of an inspection station and
receiving a signal to place it in a ‘good’ or ‘not
have 30% or more of their
good’ pile.
constituent activities
automated.” • Software development kit allows third parties
McKinsey (university robotics researchers) to create
applications for Baxter.
http://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/four-fundamentals-of-workplace-automation 20
7 > THE INTERNET OF THINGS
CONNECTED HOMES AND CITIES

FORECAST What’s included

BY 2020: 34B A multitude of devices and sensors relaying


DEVICES data and insight to help consumers live more
CONNECTED TO
THE INTERNET;
efficiently.
$6T WILL BE
Example
SPENT ON IOT
SOLUTIONS IN UBIQUITOUS CONNECTEDNESS:
THE NEXT 5 • Dramatic decreases in the cost of sensors, chips,
YEARS. processors, etc. makes it feasible to connect literally
anything to the internet.
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

“YOUR • Intelligent sensors already exist in a range of new


REFRIGERATOR IS products from refrigerators to air conditioners.
TELLING YOU TO • These technologies could resolve energy and water
PICK UP MILK” issues, pollution challenges.
• Consumers polled identified laundry devices,
washer, dryer, sprinkler systems as devices “most
wanted” to be connected and controlled remotely.

http://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/four-fundamentals-of-workplace-automation 21
8 > NEW ENERGY TECHNOLOGY
RENEWABLE, EFFICIENT, AFFORDABLE

FORECAST What’s included

BY 2020: 26% OF A shift toward sustainable energy supply and


THE WORLD
use, prompted by consumer preference.
WILL RUN ON
RENEWABLES
- IEA
Example

“Would you like a roof that Google: Largest corporate buyer of green power
looks better than a normal • Set its renewable energy goal in 2012
roof, lasts twice as long, • Signed 20 power purchasing deals mostly in
US and Europe for 2.6 GW of output
costs less and - by the way
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

- generates electricity? Amazon.com: Second-largest buyer purchases


Why would you get less than half as much.
anything else?”
Elon Musk -TESLA Plunging costs have been a big help. Wind
power is 60% cheaper than it was six years ago;
solar power prices are down 80%.

22
9 > AUTONOMOUS TRANSPORT SYSTEMS
FORECAST What’s included

BY 2020: 10M The technology to not only physically transport


SELF-DRIVING you but create the most efficient routes and
CARS PLYING
erode congestion.
THE ROADS
Example

UK Department for Transport:


• Committed to making changes to road
regulations and car maintenance checks to
accommodate driverless cars on the roads.
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

“Uber passengers in Pittsburgh will be • Established a code of practice to allow for


able to hail self-driving cars for the testing autonomous cars.
first time within the next few weeks as
the taxi firm tests its future vision of
transportation in the city.”
THE GUARDIAN, 2016
(ALSO IN SINGAPORE, DUBAI AND NEW
ZEALAND)

23
10 > WEARABLE INTERNET AND DEVICES
FORECAST What’s included

BY 2020: MOST Any type of device, clothing or product that


NEW FITNESS has sensors, sends and receives data for
WEAR WILL
COME WITH
interaction with apps and other technology.
CONNECTED Offers additional opportunities and platforms
APPS to interact with consumers.
Example

WEARABLE TECHNOLOGY
“Sales in the US will hit $70 The Apple Watch has the functional capabilities similar to a
billion by 2024 – they’re smartphone.
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

Clothing and other equipment worn by people will have


already forecast to hit the embedded chips that connect the article and person wearing
$5 billion mark by 2018.” it to the internet.
Thenextweb.com Smartphone makers are turning to wearables for a new
source of growth.
Gartner: 70M smartwatches and other bands sold will be sold
this year, rising to 514M within 5 years.
Accenture: Only 12% of consumers intend to buy a
smartwatch in the next 12 months, while 41% plan to do so
24
within 5 years.
BUT SURPRISING CONSISTENCIES
Ranking of tech shifts with biggest impact – by region
GLOBAL SOUTHEAST PACIFIC CHINA INDIA
ASIA
Spread of existing technology infrastructure 3.8 3.8 3.8

Robotics 5

3D printing

Wearable Internet and devices

Big data and artificial intelligence 3.8 3.6 4.5 3.5

Medical technology 4.3

Virtual and augmented reality

Nanotechnology
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

The sharing economy 4 3.5

Autonomous transport systems

Machine learning 3.8 5 3.7

The Internet of Things 4

Cashless payment technology 3.7 3.2 4.3 3.5

New energy technology 4.3

25
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

CONSUMER
RETAIL

TECH TRENDS SHAPING THE NEXT 5 YEARS >>


SUPPLIERS

26
HOW CONVERGING TECHNOLOGIES CAN DRIVE
CONSUMER BEHAVIOUR

CONSUMPTION RETAILING SUPPLIERS AND


MANUFACTURERS

GLOBAL CLUSTER LOCAL FOCUS


Copyright ©2017 The Nielsen Company. Confidential and proprietary.

BEHAVIOUR >> SPREAD >> CHANGE >> NEW >>


27
SCALE OF LIKELIHOOD/IMPACT
How likely at both a global level and for your cluster for the consumer, the
retailer and the supplier?

5 Almost certain this outcome will happen


(>50% of consumers, retailers or suppliers)

4 Likely
(>30% of consumers, retailers or suppliers)

3 A fair chance
(>20% of consumers, retailers or suppliers)
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

2 Unlikely
(would only happen on a small scale)

1 A remote chance
(may happen in a few instances)

0 Impossible
(no chance this outcome would happen)

28
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

FORECAST

CONSUMER
BEHAVIOUR
CONVERGING
TECHNOLOGIES
THAT WILL CHANGE

29
TIME AS A CURRENCY: WILL CONSUMERS PUT MORE VALUE ON PRODUCTS AND
SERVICES THAT SIMPLIFY THEIR LIVES AND SAVE THEM TIME AND EFFORT?

Artificial Wearable
Robotics IoT Machine learning
Intelligence internet
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

CONSUMER OUTCOME #1

Consumers will trade off price or be willing to pay more for convenience and
time-saving benefits. Delivery technology will facilitate the rise of programmatic
choice and delivery consumption. 30
ON-THE-GO LIFESTYLES WILL DRIVE APPRECIATION FOR TIME AND SIMPLICITY

Artificial Wearable
IoT Machine learning
Intelligence internet
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

CONSUMER OUTCOME #2

Consumers will be willing to accept and act upon recommendations from


smartphones and devices based on their own behavioral data.
Recommendation-based purchasing will increase significantly. 31
SOCIETY, FAMILIES AND INDIVIDUALS WILL BE STRETCHED WITH SUPPORTING
THE ELDERLY, MANY WHOM WILL SEEK TO MAINTAIN THEIR INDEPENDENCE
THROUGH TECHNOLOGY

Artificial Wearable
IoT Machine learning
Intelligence internet
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

CONSUMER OUTCOME #3

Ageing consumers will depend heavily on technology in their daily lives as well
as consumption choices. They’ll be greatly influenced by tech that assists them
in making shopping easy. 32
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

FORECAST

RETAILING
CONVERGING
TECHNOLOGIES
THAT WILL CHANGE

33
WHAT COULD THE PURCHASE PROCESS LOOK LIKE PHYSICALLY IN A NEW RETAIL
ENVIRONMENT? CASHLESS PAYMENTS – LOYALTY DATA AT A NEW LEVEL, REAL-TIME USE

IoT Cashless payment Wearable Internet


Copyright ©2017 The Nielsen Company. Confidential and proprietary.

RETAIL OUTCOME #1

Retailers will be able to connect and communicate with consumers in the store,
automatically connecting to loyalty data through devices to offer customised
experience, offers in real-time. 34
THE FUSION OF PHYSICAL AND VIRTUAL TO GIVE A GUIDED/ASSISTED EXPERIENCE.
SENSORS AND DEVICES TALKING TO EACH OTHER TO GIVE YOU A PERSONALISED
SHOPPING EXPERIENCE

Virtual Augmented
Reality Cashless payment Wearable Internet
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

RETAIL OUTCOME #2

Consumers will be able to be given a customised and guided tour through the
retail environment, with augmented reality; alerting them to certain specials and
information based on past purchases, etc. 35
PAYMENT MADE INSTANTLY VIA DEVICE OR PHONE

Cashless payment Spread of existing


Machine learning technology technologies
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

RETAIL OUTCOME #3

Checkout and payment processes will be in some cases almost eliminated with
technologies “capturing” basket data and payment on exit.
36
FORECAST

CONVERGING
TECHNOLOGIES
THAT CAN
INFLUENCE AND
IMPACT SUPPLIERS
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

37
CONSUMER PERCEPTIONS ABOUT TECHNOLOGY BEING PREMIUM OR PROGRESSIVE

Virtual and
Neuroscience 3D printing Augmented Reality
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

RETAIL OUTCOME #1

Some suppliers will use cutting-edge technology purely as brand-building


and public relations activities.
38
SUPPLIERS BEING ABLE TO GO DIRECT TO DELIVER AT HOME BY OFFERING EASY
OPTIONS THROUGH APPS, E-COMMERCE AND POTENTIALLY INSTANT ORDERING
THROUGH AT HOME OPERATING SYSTEMS

Spread of existing
IoT Machine learning
technology
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

SUPPLIER OUTCOME #2

In-home operating systems will automatically order products directly from


suppliers depending on instruction parameters.
39
ABILITY TO INTERRACT AND COMMUNICATE WITH CONSUMERS INSTORE, AT POS
THROUGH DEVICES, VR, AR, ETC. – MULTIPLE LEVELS OF COMMUNICATION THROUGH
PROXIMITY MARKETING. MORE OPPORTUNITIES TO INTERACT WITH CONSUMERS

Wearable Spread of existing Virtual Augmented


IoT Big Data
Internet technology Reality
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

SUPPLIER OUTCOME #3

Suppliers will have to adjust and generate a number of interactive platforms


or proximity marketing in-store and online for augmented reality, virtual reality
and customised offers, etc. based on customer data. 40
CONSUMER RETAIL SUPPLIER

Technology for Newest technology


Retailers connecting to
more convenience mostly used as brand-
consumer devices in-
– premium prices building platforms
store for customised
for tech-driven by suppliers
experience
delivery systems

Consumers Augmented reality


In-home systems
accepting suggested to give a guided and
ordering directly to
purchases based on enriched in-store
retailers or suppliers
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

behavioural data experience


(Programmatic
consumption) Checkouts to be
Suppliers having to
eliminated with
Technology to assist leverage multiple
technologies
aging populations technology platforms
“capturing” basket
to communicate to
data and payment
consumers
on exit
41
FUTURE OUTCOMES SEEN AS MOST LIKELY,
HIGHEST IMPACT – BY CLUSTER
TOP TOP TOP
CONSUMER RETAIL SUPPLIER
SCENARIO SCENARIO SCENARIO

PROGRAMMATIC IN-STORE CONNECTION IN-HOME SYSTEMS


SOUTHEAST ASIA
CONSUMPTION TO DEVICES ORDER AUTOMATICALLY

TECHNOLOGY FOR INSTANT BASKET IN-HOME SYSTEMS


PACIFIC
MORE CONVENIENCE CAPTURE ORDER AUTOMATICALLY
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

TECHNOLOGY FOR IN-STORE CONNECTION IN-HOME SYSTEMS


CHINA
MORE CONVENIENCE TO DEVICES ORDER AUTOMATICALLY

TECHNOLOGY FOR IN-STORE CONNECTION SUPPLIERS ON MULTI-


INDIA
MORE CONVENIENCE TO DEVICES TECHNOLOGY PLATFORMS

42
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

THEIR THOUGHTS | VIEWS | FORECASTS


HEAR FROM OUR EXPERT PANEL

43
Although automation, AI and robotics are hot topics, I
believe technology will always require human direction and
expertise. While it will take some of the heavy lifting out of
certain tasks, its effectiveness will be determined by the
direction and expertise of skilled people. In Southeast Asia,
while wages remain competitive, it will be harder for
Yongyut companies to justify huge upfront costs and investment into
Ongwattanapat automation.
Executive Director
Southeast Asia,
Nielsen Emerging
Markets

Over the past 4 years we have seen an exponential


investment on Machine Learning. Mergers and Acquisitions
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

in this space are doubling year after year and there is


clearly a race from the big tech firms to secure the best
resources and skills.

Retailers are working hard to optimise the buying


Alessandro Zolla
Program Lead experience in both online and brick and mortar. Automated
VP Technology – recommendations systems and search engines are already
Machine Learning a key enabler for online retailer success.
Nielsen 44
Convenience and ease of shopping are consumers’ biggest
issues. The adoption of cashless payment over the next 5
years will improve the speed and ease of payment, both on
and offline. The spread of technology and particularly
infrastructure will be key enablers in these developing
markets.
Peter Gale
Managing Director Big data and machine learning is another huge opportunity.
Retailer Services Vast amounts of money is wasted on generic promotions but
Nielsen Emerging the roll out of big data and machine learning will allow retailers
Markets
to accurately target the right promotions, at the right time to
the right consumers. It will have an enormous impact in the
Emerging markets in the near future.
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

Infrastructure
. and legislation will play a huge role in
technology enablement.

Without internet connection and device ownership the


impact of technology is limited. In developing markets,
Nicole Corbett
affordability of technology is pivotal to mainstream roll out
Director and in communities with a heavy reliance on rural
Thought Leadership consumers and traditional trade, technology will be slower to
Nielsen Growth rollout and impact the retail space.
Markets 45
Over the next 5 years, the rise of Artificial Intelligence (AI)
will have the most significant impact to our clients. Not only
in how AI will power companies’ decision making but also
how it will change consumer purchasing using predictive
capabilities for things such as auto replenishment.

IOT and smart home appliances have the capacity to


Simon Douglas change the role of brands. E.g. washing powder may move
Buy CTO to a printer ink model, offered either by the equipment or
Enterprise Architect,
Thought Leadership the detergent supplier. The bright attractive box of washing
Nielsen Lead markets, powder will no longer makes sense, the service or
UK, Europe perception of quality will be evaluated by a human or bot.

The product/service experience will be especially critical in


Copyright ©2017 The Nielsen Company. Confidential and proprietary.

Australia as consumers aren’t typically brand loyal. Brand


switching is common, for lots of reasons, but mainly due to
experience. Price is a close second. To win in this market,
retailers and suppliers will need to adopt technology,
quicker than they are today and deliver on an experience
Nathan Crum that makes Australian consumers want to return. If they
Associate Director, can succeed in this, they’ll be set for success over the next
Media Industry Group five years.
Nielsen Pacific
46
Artificial Intelligence powered from increasingly digitized
interactions with consumers, generating more data and
offering more engagement points will be critical. Mobile
smart devices (phones or wearables) with location and
activity sensors will be the enablers. IoT in home will lag,
taking some time (possibly more than 5 years) to have
significant impact. But it will lead a move to marketing and
Paul Smith merchant platforms becoming more programmatic like
Buy CTO advertising has. Virtual reality will likely remain dominated
Enterprise Architect,
Technology research by gaming and specialist use cases until a time it is
Nielsen Lead Markets, possible to lose the bulky headset.
UK

Digital IDs and payments powered by biometrics will be


Copyright ©2017 The Nielsen Company. Confidential and proprietary.

available in most smart devices in the near future leading


to secure identity management and increased digital
payments, especially in developing markets with low credit
card penetration. The card as we know it will become
redundant, as identity will be established by biometrics
rather than a piece of plastic.
Prashant Singh
Digital Retail Leader
Nielsen India
47
HOW WILL THE FUTURE OF TECHNOLOGY PAN OUT?
It depends on……

CONSUMER “AFFORDABLE” LEGISLATION:


BACKLASH IS SUBJECTIVE YAY OR NAY

COST AS CYBER DEMONSTRATED


Copyright ©2017 The Nielsen Company. Confidential and proprietary.

A BARRIER SECURITY SUCCESS VS FAILURE

MACRO FACTORS BY COUNTRY

48
“THE FUTURE IS ALREADY HERE
IT’S JUST NOT
EVENLY DISTRIBUTED.”
WILLIAM GIBSON

E: Regan.leggett@nielsen.com
T: @reganation
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

50
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

APPENDIX

51
11 > VIRTUAL AND AUGMENTED REALITY
FORECAST What’s included

AUGMENTED Haptic (touch), motion and smell.


REALITY WILL Retailers and manufacturers leveraging interactive,
GROW 108% augmented and virtual reality mediums as an
PER YEAR enhanced interaction.
TILL 2020 - IDC
Example

HUMAN BRAIN - STILL THE BEST DISPLAY


IDC Worldwide Quarterly Augmented and
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

Virtual Reality Headset Tracker > total headset


shipments will reach 76M units by 2020.

“Nintendo share price


jumps on release of
new Pokemon game.”
City.am

https://arc.applause.com/2016/12/21/virtual-reality-headsets-idc/ 52
12 > 3D PRINTING
CONSUMER, MEDICAL AND MANUFACTURING

FORECAST What’s included

BY 2020: 3D Development of 3D printing technology and


PRINTING application to new product types that could be
MARKET TO produced. Range of uses extends from human
REACH tissue, prosthetic limbs, organs, customised
$35.4B sneakers and other consumables.
(More than double the
$15.9b in revenues
forecast for 2016) Example

133,000 3D printers shipped worldwide in 2014:


Copyright ©2017 The Nielsen Company. Confidential and proprietary.

• 68% increase from 2013


• Majority of printers (< $10,000) are suitable for
laboratories, schools and small manufacturing
businesses
“GE seeks to drive
• 3D materials and services industry grew
3D printing future strongly to $3.3B.
with $1.4B in deals.”
BLOOMBERG.COM

http://www3.weforum.org/docs/WEF_GAC15_Technological_Tipping_Points_report_2015.pdf 53
13 > MEDICAL TECHNOLOGIES
IMPLANTABLE, REPLACEMENT, DNA

FORECAST What’s included

BY 2020: The increasing ability of the medical


PRACTICAL
community to alter, join or replace our
COMPUTER-
BRAIN bodies with technology.
INTERFACES
Example
– INTEL
Brown University’s BrainGate team:
is at the forefront of the real-world movement to link
human brains directly to computers for a host of uses.
“…using a baby aspirin-sized array of electrodes
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

implanted into the brain, early research has shown


that the neural signals can be “decoded” by a
computer in real-time and used to operate external
devices…”

“Imagine being able to surf the web Intel: “Eventually people may be willing to be more
with the power of your thoughts.” committed to brain implants”.
GIZMODO.COM

In “Nine real technologies that will soon be inside you”, Mike Edelhart, Yahoo News!, 19 October 2014, https://au.news.yahoo.com/ technology/a/25293925/nine-real-
technologies-that-will-soon-be-inside-you/ 54
14 > NANOTECHNOLOGY AND MATERIALS

FORECAST What’s included

BY 2021:
Innovation in smart medical delivery systems
NANOTECHNOLOGY
(drugs/pharma); massive potential to deliver
MARKET TO CROSS
high end products in beauty, health, medicine
$12B IN REVENUE
at first but countless applications.

Example

A first generation of nano-enhanced textiles benefitted


from nano finishing: Coating the surface of textiles and
Copyright ©2017 The Nielsen Company. Confidential and proprietary.

clothing with nanoparticles is an approach to the


“If personal injuries associated with
production of highly active surfaces to have UV-
nanomaterials include diseases that
blocking, antimicrobial, antistatic, flame retardant,
typically develop over years or
water and oil repellent, wrinkle resistant, and self-
decades from the time of exposure
cleaning properties
(e.g. cancer) then the picture of the
Nanowerk.com
populations in need of relief may not
be clear for decades,”
BNA.COM

55
BUT SURPRISING CONSISTENCIES
Ranking of tech shifts with biggest impact – by region
GLOBAL MIDDLE SUB EASTERN WESTERN NORTH LATIN
EAST SAHARAN EUROPE EUROPE AMERICA AMERICA
AFRICA

Spread of existing technology infrastructure 3.8 3.3 4.2 2.5 4.3

Robotics 3 3.6 3.6

3D printing

Wearable Internet and devices 2.9

Big data and artificial intelligence 3.8 3.3 3.2 3.6 4.4 3.3

Medical technology

Virtual and augmented reality


Copyright ©2017 The Nielsen Company. Confidential and proprietary.

Nanotechnology

The sharing economy 4

Autonomous transport systems 3.8

Machine learning 3.8 4.5 4.4 4.2

The Internet of Things 3.7

Cashless payment technology 3.7 3.7 4.4 3.5 3.6

New energy technology 3.2


56

You might also like