2018 Fjord Trends - Accenture
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2018 Trend 01 Physical fights back 4 Fjord Trends Trend 02 Computers have eyes 13 Trend 03 Slaves to the algorithm 22 Trend 04 A machine’s search for meaning 32 Trend 05 In transparency we trust 42 Trend 06 The ethics economy 52 Trend 07 Design outside the lines 62
Introduction Our annual Trends report is always a team effort, and this Tension year’s team was bigger and more diverse than ever. More than 1,000 Fjordians, plus (for the first time) 85 clients Over the past year, we’ve watched a polarization from five continents, inspired our report, each bringing effect weave its way through many areas of our lives. their own individual perspectives and experiences to Disagreement is no new phenomenon, nor are the the table. paradigm shifts we experience across society. The current gulf between opposing opinions is remarkable We first gathered insights in all forms—a mix of hastily- and sometimes overwhelming, but also presents a drawn thoughts on Post-it Notes, elegant (and not-so- moment of great opportunity. elegant) illustrations, simple scribbles and long-form copy, and even some musings over a cup of coffee. We Each of our Trends is born out of a fundamental tension, then took those insights into workshops designed to whether it’s a shift, a disagreement, a collision or a hone the thinking and spot patterns—and tapped into definitive rift in ideas. Digital versus physical, human some digital tools to help us gather evidence for our best versus machine, centralized versus decentralized, speed ideas (because we’re all about blending the physical with versus craft, automation versus control, traceability the digital). The result? Seven Trends affecting business, versus anonymity … it’s all in this year’s report. technology and design in 2018. How we navigate these tensions and design for positive, Today, we see deep divisions across global populations long-lasting change will be more critical today than ever on a broad range of issues, which is creating social and before. In 2018, it won’t be enough to be a bystander. political anxiety. We’re also experiencing tension as a We collectively have the opportunity to design the world result of deep technological change that is altering the we’ll be living in for decades to come. world we live in. There is no running from these forces. For the first time, we feel that there is just one meta Read on to explore Fjord Trends 2018. We hope there theme for Trends in 2018: Tension. will be plenty in these pages to provoke conversations about what’s lurking around the corner for you—as an individual, an employee, an organization or a consumer. Happy reading! 2 3
Trend 01 Physical Digital is no longer the centerpiece of brand fights back experience. The emphasis is shifting onto how best to use digital as an invisible enabler of physical and sensory experiences. As interactions with users evolve from periodic engagements via a screen to consistent, connected experiences, organizations must create new services that are deeply integrated in the physical world. 4 5
What’s going on? Tao Café from Alibaba Physical fights back For the past five years, how we have Service design, which is all about exploring designed services has been dictated every touchpoint and channel to design an and limited by the touchpoints that were experience, has a central role to play. The available to us—the PC, mobile devices and disaggregation of technology components analog touchpoints. Much emphasis was gives service designers many new placed on creating experiences delivered avenues to explore as they create the next People are already starting to move away Technologies, mobile payments and the through digital screens and as a result, generation of digitally enabled services. from intrusive digital technologies and hunt for convenience have positioned people spent more time interacting via No longer restricted by rigid touchpoints, kick against digital saturation. As a result, China as the leader in what has been device than in person. sensory and human experiences are front they are receptive to a more personal described by some as the online-to-offline and center with digital playing a powerful approach to services and products, and (o2o) revolution. o2o is where customers This is about to change. behind-the-scenes role. as technology becomes more ambient, are identified in the online space then they are migrating to services like Airbnb enticed via various tools—click and A major shift is underway in technology, We are now living in a world where that offer physical, human and sensory collect, for example—to transact in an fuelled by lower costs, the disaggregation technology is everywhere, supported by experiences that create lasting memories. offline environment. of core technology components, and the Cloud. We exist in a fog that makes users’ growing angst about their own the digital invisible, and that blurs the In the Asia-Pacific region, 88% of retailers “screen addiction.” boundaries between digital and physical. plan to implement click and collect From an installed base of 15.4bn connected systems, according to one recent study. Until recently, speaker/microphone, devices in 2015, the Internet of Things Alibaba, for example, recently invested camera, screen and sensors were found market is expected to grow to 30.7bn in US$1.25bn in Shanghai-based Chinese together in PCs and mobile phones. Now, 2020, and rising to 75.4bn by 2025. online food delivery service Ele.Me—a they are being pulled apart—the equivalent strategic move to strengthen its position in of dismantling a Swiss Army knife, the o2o marketplace. separating its various tools and embedding each into a diverse array of other places. In a separate move, Alibaba recently unveiled its Tao Café and smart speaker— As the disaggregation of core technology called Tmall Genie—to revolutionize offline accelerates, each individual component retail. By scanning a QR code on the is blurring into the background. This is Taobao app at the entrance of the store, freeing organizations to move away from customers are tracked by cameras with interactions via digital screens and refocus “People are already starting facial recognition. After going through the on human experiences—this shift will have a huge impact on how those experiences to reject intrusive digital checkout doors, they automatically make a purchase through their smartphones are designed. technologies and kick against without needing to scan everything digital saturation.” through a register, and can simply leave the store with their items in hand. Data source: IHS 6 7
Physical fights back Amazon Go prototype grocery store in Seattle. Audi Q7 which features haptic feedback controls. Carnival on board experience and medallion. What’s next? Elsewhere, a growing number of primarily trucks” that sell certain items at discount digital brands are now placing greater in six US cities. While at the same time, emphasis on the physical while making the it has accelerated the speed at which it most of their digital expertise and data to is bringing to market new Amazon Echo improve user satisfaction. services. As technology becomes increasingly Audi, for example, has integrated haptic Amazon, for example, has shifted its affordable, it is dispersed into the physical feedback and gesture recognition into focus in recent years onto the experiential world. People are being served a growing its vehicles to declutter and minimize element of shopping with Amazon Go, its number of personalized experiences distractions from the user while driving. purchase of grocery chain Whole Foods anytime, anywhere, and they will expect Ultrahaptics system pushes the boundaries and its partnership with Kohl’s—further “As technology becomes many of the benefits they feel today to even further. evidence of the company’s desire to grow its physical retail presence. increasingly affordable, continue and to evolve as they move from one physical environment to another. it is dispersed into the Since 2015, Amazon has opened 11 bookstores, 40 pop-up Amazon stores physical world and blurs Already, we have seen voice-activated interfaces shift the emphasis onto a across the US (mainly designed to into the background.” screen-free physical experience and away showcase its products), pick-up lockers in from interacting with a digital device thousands of retail stores, and “treasure as an end in itself. And we have seen interfaces evolve in other ways, such as the emerging use of haptic feedback—using vibrations to provide feedback and guide behavior, which especially benefits the visually impaired. 8 9
Physical fights back Fjord suggests At city level, we will soon see a mapping of Already, design specialists are responding. physical and digital together. In Hangzhou, Carnival Corporation, for example, has China, Alibaba has been using AI to process developed the Medallion—a wearable video, social media, traffic and other data smart coin that connects customers to for its City Brain project, and congestion a cruise ship through a digitally-enabled 01 02 03 has been reduced. Reportedly, they are service called the Compass. It ensures packaging the system for use elsewhere. each guest receives a unique and seamless experience with their personal preferences To capitalize on this sort of thinking, constantly captured to optimize service as Stop viewing digital and Let technology Sharpen your organizations must re-structure and it is delivered. physical as separate inspire you design skills develop new skills. Reintroducing a physical dimension to services provides an Having seen how things were developing, Instead ask: how do we design Traditionally, designers think first Greater physical experience opportunity to differentiate at scale—which Accenture acquired design and innovation experiences and spaces to about the end user. In this space, design must be connected to has been harder to achieve in the age firm Matter in 2017. Matter focuses on connect with people around us, designers also need to understand your digital strategy. More digital of apps. designing products and experiences for a enabled by digital in a physical and look at the technological will be integrated into physical connected world, adding physical product world? Create experiences that possibilities from the outset in products and services from the The future of service design will be all design to Fjord’s service design and digital fuse physical and digital. The order to deliver a new generation get-go. As a result, new physical about blending physical with digital. product creation capabilities. relationship and connectivity of services enabled by digital that and digital design capabilities Particular skills will be required for each, between devices will be critical— thrill and excite. The joining of may be needed in-house. And so we will see designers who specialize Organizations will also need to ask and should be invisible. physical and digital design opens closer collaboration between in physical and digital design working themselves an important question: up a wealth of new possibilities physical and digital design closely together, with shared goals. This as digital becomes ubiquitous and and opportunities, so think specialists will be a must. will have huge implications for brands increasingly invisible, what future structure, laterally. As technology falls in and organizations. Local Motors is brief and role should there be for digital price, indulge yourself in the art of successfully organizing around this: “We departments or heads of digital? the impossible. are focused on low volume manufacturing of open-source vehicle designs, using multiple microfactories and a co-creation SaaS platform.” 10 11
Trend 02 Computers have eyes Computers have been able to read, comprehend and react to words for some time. Now, they can do the same with images. We got here with help from exponential progress in Artificial Intelligence and machine learning, combined with the fact that cameras are built into a greater variety of devices. Organizations can benefit from engaging with this powerful new source of data to create new digital services that add value and are truly compelling. 12 13
What’s going on? Computers have eyes iPhone X, source Apple. Google Clips, source Google. The camera is undergoing its This has been caused by two major shifts. Examples of the technological development biggest transformation since Louis to cameras’ eyes are starting to appear: Daguerre publicly unveiled the first First, cameras have become smarter—both Google recently launched Clips—a digital practical photographic process—the in terms of what they can capture (their camera without a display that takes daguerreotype—in 1839. eyes) and what they can do with it (their pictures for you, using machine learning brain). With sharper eyes and smarter to recognize and learn faces, and look for Over the almost-200 years since, the focus brains, they’re becoming more and more interesting moments to record. has been on capturing images as the device human-like. In the past, computers were itself evolved through many varied forms limited by what a human can see and Apple’s newest iPhone X has the ability to and formats. As a result, intelligent digital process, which was then translated into unlock itself using facial recognition. cameras are now capturing data which can words for a computer to understand. be processed through machine learning Today, intelligent digital cameras can use In China, Alibaba is piloting facial algorithms to provide more sophisticated “computer vision” to capture visual data, recognition technology at 10,000 parcel insights than we’ve ever before accessed. analyze and act on it without needing pickup locations across Shanghai, to text inputs. allow users to unlock delivery drop boxes. Meanwhile, Chinese facial recognition start- up Face++ has developed a face-detecting 14 15
Amazon Echo Look Computers have eyes system now used in several apps including Cars are using intelligent cameras to assess Bosch vision for In early 2017, Amazon added a camera to its one to transfer money through Alipay (a their environment, process the data and automated driving. new-look Echo, which enabled it to see and mobile payment app used by more than respond accordingly—like a driver would. hear all. A user can now use it hands-free 120m people), which scans the user’s face Bosch has created the Automated Mobility to take a still or video selfie, and view it on as the only security credential. Academy that focuses on teaching vehicles their smartphone to check how the they how to drive. Using sensors, hardware and look before going out. In entertainment, Disney’s research arm is software, Bosch’s Mobility Solutions deliver experimenting with facial recognition to connected mobility that allows driverless “The ‘brain’ attached to In Singapore, meanwhile, Sushi Express has gauge how an audience is responding to a movie. Computer vision is a major step cars to become a reality. these eyes is getting worked with Hewlett Packard Enterprises to install cameras that track the popularity forward. And as computers become skilled The “brain” attached to these eyes is evermore powerful, thanks of dishes on a sushi belt, gauge which at understanding what they see, they can spot patterns in data otherwise invisible becoming ever-more powerful thanks to Artificial Intelligence and machine learning. to Artificial Intelligence are hot and advise chefs when to prepare fresh replacements, reducing waste on less to humans. No longer do we need to manually input and Machine Learning.” popular dishes. information to help a computer interpret an image—a growing number of devices can read our emotions and respond in real time. 16 17
What’s next? Computers have eyes Nanit baby monitor. The second shift is that eyes are now These shifts combine to bring a further Eye capture linked to Artificial Intelligence Microsoft recently launched the Seeing present in all sorts of objects—from smart level of sophistication and automation and machine learning will generate data AI app for the blind and visually impaired wallets for catching thieves to smart to our products and services. Software containing more powerful insight than ever community to help people get a fuller contact lenses—thanks to the relative developer Eric Raymond once stated that “a before, and designers will have to figure out narrative of the world around them by using cheapness of camera technology. computer should never ask the user for any how best to unlock it and utilize it to create computers as their eyes. The app narrates information that it can auto-detect, copy, compelling new products and services. the world around a person, explaining For most of us, our cameras and our or deduce.” Already, there are examples This is both the big opportunity and the what’s in front of them and recognizing the phones are the same device—and once of how computer vision is taking digital big challenge. faces of people they are with. that camera starts to see, it can do much services to a new level—and directly asking more than take a picture. For example, with the user less and less. We are already seeing a diverse array of This new wave of computer vision will Google’s multilingual machine translation new applications for computer vision require computers to act more like humans. service, travelers can use their phone to emerging. For example, Nanit is a baby translate, simply by pointing it at text. monitor that watches a child sleep through It’s easy for a computer to process a camera, then processes the information, information but, this year, we will see providing insights on the emerging patterns computers processing information while impacting sleep quality. reacting to the surrounding environment— “This new wave of computer vision will require using cognition and language skills to computers to act more like humans.” process information more like a person. 18 19
Computers have eyes Fjord suggests 01 02 03 Nest Cam IQ Indoor Rethink Rethink your Rethink the services approach to data design context With better quality input comes better The true potential of computer vision quality output, and better output will drive depends on humans recognizing and Organizations must start Expect more data: eye capture As computers get better at better insights and outcomes. This will offer trusting the fact that cameras and imagining the new generation of will eliminate the current friction- reading the emotions of people significant opportunities for organizations computers are becoming smarter and more services they could create once generating steps of requiring using computer vision, human to develop a new generation of services. integrated into daily life. This technology information is more routinely and a user to manually input data. behaviors and intrinsic features is ground-breaking, but none of it matters ubiquitously captured visually. An Consider what data can be will need to be designed into It will be important to consider both if humans won’t allow it into their physical important first step is to consider extracted from processing large services to fully interest and the micro and macro implications. For spaces and daily lives. the degree to which the devices quantities of visual images, and engage users. example, what could a camera embedded or service responds to customers which would be most useful. in a bathroom mirror detect about the Security and privacy will be important dependent on what it “sees.” Prepare for lots of different levels health of the person who uses it that issues for users in order to build trust and of data input, and plan today how morning, and what services might that acceptance. People will be free to choose best to prepare to accommodate inspire? What services could be built from whether or not to invite intelligent cameras that so data is not too unwieldy to insights harnessed from 10,000 such in- into their homes and lives. Designers must use effectively. mirror cameras? figure out not just how to make this feel safe and comfortable but how to make the experience valuable. 20 21
Trend 03 Slaves to the algorithm We are looking at a new marketing environment, which is neither online retail nor a brick-and-mortar store. In this “third space,” algorithms are performing the role of gatekeeper between consumers and brands, and they are indifferent to the branding efforts that influence buying decisions people make for themselves. How do you define a marketing strategy when visual and empathy-reliant cues are removed? 22 23
What’s going on? Slaves to the algorithm Netflix Three developments are ramping up shared, the more personalized the results Spotify Discover Weekly It has become common for brands to to transform marketing over the year they got. This is how Spotify learned how create a bot with the primary function of ahead: the rapid evolution of data-driven to consistently recommend new artists and providing an extra interaction to deepen algorithms, the evolution of voice-enabled tracks, and Netflix new films and box sets the connection between the brand and its digital assistants and users’ growing trust that users would instantly love. customers. Examples include PINK, from in both. Victoria’s Secret, which learns about its Recently, the use of these algorithms has customers’ preferences to recommend In the beginning, data-driven algorithms rapidly expanded beyond recommendation specific styles of bra. In entertainment, were introduced to make it simple to find alone, spurring the development of a Lionsgate launched a Power Ranger Alpha just what users wanted in a sea of choice, broad range of other propositions with 5 bot ahead of a movie release to engage which saved them time, money, and best Artificial Intelligence. audiences by giving them a chance to of all, headspace. The more data the user chat with Alpha 5, the Power Rangers’ robo assistant. 24 25
“In 2018, the rapidly- In spring 2017, it was predicted that users Customers have taken a little while to get evolving voice- of voice-enabled speakers—a market dominated by Amazon, which has an used to trusting algorithms, but we can now see evidence of a marked shift in the controlled shopping estimated market share of 70%—would way they discover and decide what to marketplace will increase by 130% by the end of the year. And the market looks set to continue buy. Already, customers are actively and passively deferring to algorithms. create a ‘third growing significantly, given that 25% of space’ for retailers smart speaker owners now use them for 11 or more tasks. In 2018, the rapidly-evolving voice- controlled shopping marketplace is and brand owners.” expected to create a “third space” for Slaves to the algorithm Though it has taken time for customers to retailers and brand owners. Sitting between get comfortable with algorithm-powered online outlets and physical bricks-and- services, trust levels have now reached the mortar stores, this new marketplace will point where customers are confident using be powered by algorithms rather than them for purchases. Inevitably, it wasn’t conventional browsing, where customers long before the first brands struck deals will make lots of buying decisions without with Amazon to enable customers to order even seeing the products first. via Alexa simply by speaking to her. These pioneers included pizza chain Domino’s and Amazon Echo Dot UK online supermarket Ocado. Less common are impartial bots created The arrival and rapid evolution of voice- by third parties with the primary aim of enabled digital assistants, (such as empowering or just making life easier for Amazon’s Alexa and WeChat owner the user. Examples include DoNotPay—a Tencent’s Xiaowei) has transformed “law bot” that will challenge parking fines the experience of seeking product on a user’s behalf, and banking bots such as recommendations—making it more Cleo which aims to be the Siri of personal immediate, engaging and reactive than it finance. The creator of DoNotPay has was in text-based chats. And customers are recently extended the bot’s capabilities to embracing it much faster than predicted. helping refugees claim asylum. The challenge is this: when your customer Then you have text-based recommendation has been seduced by the immediacy and services that also enable users to make fun factor of engaging with the likes of purchases. Early examples include brand Alexa instead of directly with your brand, owner-created messaging bots like how do you reach that customer? Alexa and Sephora’s, which launched on messaging her rivals have in-built biases, so the key app Kik in 2016. In addition to providing lies in finding ways around them. personalized beauty tips, product recommendations and reviews, it allows users to buy products mentioned in their chat—without leaving Kik. 26 27
What’s next? Slaves to the algorithm Amazon Echo Some organizations will be able to create Then comes bias. When a customer gatekeeper algorithms, and their success chooses a digital assistant on a particular will rely on their understanding of what platform, they will essentially lock different groups of their customers value themselves into a relationship with that Market signals are already telling us “As the Machine Learning best and want most from such services. platform’s partners, creating barriers to that as algorithm-based assistants continue to develop and thrive, they will that powers these Other organizations, however, will find that some gatekeeper algorithms have competing brands. Essentially, homes will be turned into stores without packaging become significant sales channels. As algorithms continues the power to limit their direct access to and signage, making retailers’ traditional the machine learning that powers these algorithms continues to rapidly evolve, to rapidly evolve, more their customers. attention-grabbing strategies obsolete. This will have multiple implications for brands as more personalized and preference-based personalized and There’s a strong chance we will soon see a well as retailers. services will emerge. preference-based desensitized algorithm sitting in between an organization and its customers—one Gatekeeper algorithms will appear to make services will emerge.” that does not notice things like visual customers’ lives easier, but they will need branding efforts, celebrity endorsements to understand the difference between self- or advertising campaigns. Being inherently serving services created to meet a brand’s empathetic beings, people are influenced primary interests—typically, to sell more— by such things, but algorithms are and others designed for customers’ benefit. not. This poses a potential problem for As consumers distinguish between these consumer packaged goods and retailers: two types of service, they will eventually if the gatekeeper between a brand and its choose the ones that best meet different customers isn’t susceptible to the efforts needs, and which they trust the most. it makes to win customers over, how will brands connect with shoppers? 28 29
01 02 Get to know Adapt to the new the gatekeepers marketing environment Understand them, understand In a world in which ingrained how to be ranked by them, consumer behaviors are understand how to bypass them. bypassed, find new ways to Consider carefully whether prompt your brand and purchase. a product or service can be Brand names will operate like designed to make it past the a secret password so train gatekeeper, and how to earn customers to ask for you by name customer loyalty once it does. rather than something generic Consider creating collaborative (like “shoes”). Brands synonymous Slaves to the algorithm or complementary services on an with a category (like Kleenex) have existing platform, as Domino’s did the clearest advantage. Hone with Alexa. additional tactics that aid brand recall and differentiating features. Could one-click purchase ads be the savior of impulse brands (and Already, Amazon’s Alexa is more likely to Brands will need to understand how to get advertising)? Consider how to recommend Amazon Prime products for past an algorithm that enables its user to inject purchase prompts into the first time orders. This makes it more difficult purchase products without seeing them, environment where the customer for any other brands to have their products and they will need to find new ways to is—in the home, car or elsewhere. included in Alexa’s search results— influence customers’ decisions and their particularly lesser-known brands. customers’ chosen algorithms. 03 Fjord Recommendation algorithms are deemed There is a precedent for this in search by their creators to work best when they are engine optimization, which aims to neither too formal nor too novel. Typically, maximize a website’s visibility to online Beware the backlash suggests these algorithms tend to exploit known search engines. Algorithm optimization will preferences rather than encouraging users be next. Prepare for the possibility that to browse new options. New or smaller, less once algorithms’ newness wears familiar brands will find this an obstacle to off, market fatigue dampens their efforts to gain traction. consumer enthusiasm. Or that consumers begin to worry their Over the year ahead, packaged goods assistant has too much power and retail brands will need to learn how over their decisions. Algorithms to navigate a new environment in which have limitations. Consider how previously reliable consumer behaviors, they might be gamed, or hacked, like impulse-buying, will be eliminated or and how could that affect trust greatly reduced, and standard marketing in them. objectives like acquiring market share will become more of a challenge. 30 31
Trend 04 A machine’s search for meaning Where once the “threat” to jobs was the introduction of production lines, typewriters or motorized vehicles, the hot topic now is the rise of Artificial Intelligence and robots. Organizations must stop talking about it and start designing for this change, by coming to terms with how to enable people and machines to get the best out of each other. 32 33
What’s going on? Deep learning was used by a Harvard-based team to improve the accuracy of pathological diagnoses. A machine’s search for meaning The early days of Artificial Intelligence Already, machines can do a lot of our heavy Many are fixated on which jobs AI and Crucially, though, the debate is shifting were intrinsically linked with robots, but lifting (literally and figuratively), and every machine learning will make obsolete, but away from which jobs will go, and onto new the rise of digital—and the software and time they do, they get smarter. Not so long this preoccupation is misguided. and innovative ways in which people and networks that underpin it—have decoupled ago, manual labor looked most challenged machines can collaborate. AI from robotics and extended its reach to a by AI, but its growing capability could see it True, machines have traditionally replaced broader range of machines. intervene in many knowledge worker jobs, humans in jobs involving repetitive tasks A Harvard-based team recently devised an too. In China, for example, a robotic dentist in non-changing environments, and they AI method that could identify cancer cells recently completed its first independent will continue to do so. Yet, now that today’s with 92% accuracy. In their experiment, implant surgery on a patient. AI-driven machines having decision-making pathologists beat the machines by capabilities and can do anything from achieving 96% accuracy. When they worked Furthermore, realization is growing that detecting and picking only ripe apples to together, however, the combined forces machines are becoming, in the words of driving a car, they will encroach into a more of human pathologists and AI accurately Fjord designer Paige Maguire: “another type diverse array of professions. identified 99.5% of cancerous biopsies, of user”—a collaborator or co-worker. brilliantly showing how AI and people are at their best when they collaborate. 34 35
In a recent global study, Accenture identified new job categories—Trainers, Explainers and Sustainers—where humans will complement the tasks performed by cognitive technology, created by the rise of AI-enabled machines. Following its US$775m acquisition of robotics company Kiva, Amazon now employs more than 45,000 robots—and is still recruiting and employing people. Google is now using AI combined with human reviewers to identify and remove controversial content across YouTube. A powerful benefit of the collaboration is reducing the exposure of human reviewers to graphic content. A machine’s search for meaning In early 2018, drones are due to deliver vaccines to the remote island nation of Vanuatu as part of a partnership between the island’s government and UNICEF, to Pepper by Softbank provide practical help for health workers on the ground. Humanoid robots Pepper and Nao, made by Japanese company Softbank Robotics, have “The introduction recently been trialled in two Singapore preschools. The robots helped teachers of machines won’t by asking children questions about a story always mean fewer they had just heard, prompting them to select answers on the screen. Again, the jobs for humans—just idea is to complement, not to replace. different ones.” The introduction of machines won’t always mean fewer jobs for humans—just different ones. Mortgage brokers spend as much as 90% of their time processing applications. Such tasks are well-suited to being taken over by AI, which would liberate the mortgage brokers to focus on ambiguous cases and spend more time interacting with people rather than screens. 36 37
What’s next? We need to rethink the way in which machines and people coexist, and design ways to help them get the best from each other. To avoid what has been called by some a “robot apocalypse,” organizations must pool collective ingenuity, intelligence and relentless optimism to invent new ways for machines to amplify our own human capabilities. The key is to plan for Microsoft HoloLens A machine’s search for meaning a future in which people and machines work collaboratively. We can succeed if we evolve appropriate interactions between people and machines Designers will help organizations identify The more human-centered and social that are powerful enough to redefine the how they need to evolve, in order to we make these interactions, the more nature of work. design experiences, products and services complexity and flexibility we also for the new world that lies ahead. They introduce—not a trivial challenge. Machines BMW is already setting a strong example. will also help redefine the nature of the need to learn about people’s inconsistent One of its latest concept cars is designed to working experience and develop a new use of language and the ways in which we mitigate miscommunication with driverless generation of products and services— marry words with gestures, and they will vehicles by building a pseudo-relationship some automated, others collaborative— have to be able to interpret and reproduce between the car and its passengers to make to harness humans’ and machines’ a new etiquette. them feel safe when being driven around by combined strengths. a machine. Organizations must redesign their culture, Moving forward, organizations must gearing it toward meaningful work and As a discipline that starts and ends with deepen their understanding of AI, consider constant learning. Looking ahead, at least people, design will have a central role to and address some of the deeper issues and 45% of what people are currently paid to play in enabling organizations to design optimize strategies accordingly. Important do is open to automation. If it happens, solutions that enable their people to questions they must now ask themselves this shift will converge with the dominant become comfortable with the addition of AI include: how will we interact with culture of millennials in the workplace. A in the workplace. machines; how will we learn to work with Fidelity study showed millennials would them; how will they learn from us; and how take a pay cut of US$7,600 if they could will we create two-way communication? find a more purposeful work or a better Robotic warehouse, Amazon culture elsewhere. 38 39
Fjord suggests 01 02 Think collaboratively, Design for not competitively interaction Let people do what they do best Think how quickly you can tell and let machines do what people a machine to do something, do worst. Start by considering and how quickly a machine which work activities are most can tell you what it has done, There are certain unfulfilling tasks that from some kind of AI intervention between WeWork co- meaningful to us. Better, find but remember they don’t have working office A machine’s search for meaning will need to be automated because “purely aesthetic and purely technical— the best way for both to work the same diversity and rich space, Austin. people do not want to do them anymore. incrementally tweaking designs, optimizing collaboratively and pool their communication skills of people. Organizations will need to act with column widths, and experimenting with strengths. Remember to take Design machines to ask questions care, however. If automation is imposed color schemes.” your people on the journey with and clarify their instructions: less from the top without taking employees you—to build trust in the impact ambiguity = a lower error rate. on the journey, rebellion and sabotage The design discipline must further evolve of machine learning and AI, they could follow. in response to the growing need for must feel reassured, included combining human-centered design with and informed. To enable staff to evolve as previously machine learning. Already, companies that unimagined careers emerge, organizations provide design services are making moves 03 04 need to start transforming their cultures to in this direction. Recently, our Accenture facilitate continuous learning. They must colleagues launched Accenture Applied skillfully nurture new talent (especially if AI Intelligence, and IDEO acquired data takes over the work traditionally done by science company, Datascope. Be transparent, Future-plan for juniors) and encourage more experienced be inclusive staff evolution talent to be ready to absorb a constant flow There will be a need for a new generation of new information. of automated products and services Algorithmic transparency should Who trains the next generation that harness the strengths of effective be central to your brand values. if AI is doing all the junior work? Organizations will have the opportunity collaboration between humans and Staff and customers alike must Organizations need a plan for to upgrade and optimize their design machines—this relies on successfully have an understanding of how enabling their staff to evolve. approach and strategy with design for a combining human-centered design and decisions are being made. Remember, the journey must certain degree of automation. Mark Rolston, machine learning. These new products and Technology fails when it is not be taken together in order to founder of Argodesign, has identified a services will be essential to solve problems inclusive. AI has the potential make the most of what can be a “fat middle ground” that could benefit that we can only imagine today, such as to fail on a grand scale. Ensure synergistic relationship between how to build visibility into machine-to- diversity of people, data, and AI- people and machines. Employee machine conversations so that people enabled machines to keep biases experience is a key differentiator understand how machines communicate in check. in the search for talent. with each other. 40 41
Trend 05 In transparency we trust It’s hard to judge what’s authentic in a digital world where it’s almost impossible to identify the origin of information and who has had a hand in changing it. Worse still, falling trust in key institutions has compounded the issue. In 2018, designers will do a lot of work using blockchain—a potential solution to this trust crisis—but they will need to help people understand it and build faith in it. Organizations will need to shift their emphasis from “touch points” to “trust points” when carving out market differentiation. 42 43
What’s going on? People’s trust in key institutions— businesses, governments, media and NGOs—is plummeting, and their belief that “the system” is working for them is crumbling. Driven by globalization, pace of innovative disruption and a breakdown in social values, this crisis is at a tipping point. Technology has given us unprecedented control and autonomy to fulfill our on- demand needs and curate customized experiences, but it has also fuelled our fears and made us feel more vulnerable. With many individuals unsure or even oblivious to how their data is harvested, used, shared and protected, data security, privacy, and lack of transparency have become major concerns. In transparency we trust Trust can be regained if organizations actively engage with the problem. One option is to use blockchain technology. By creating services based on this technology, it will become less crucial that consumers trust organizations themselves, so long as they trust blockchain. This shift has the be changed retrospectively, and unlike a patient, who has another, can access the potential to reinvent our conceptual model “Driven by globalization, pace of innovative disruption and a conventional database, the chain of blocks information. That information is only shared of trust. breakdown in social values, this crisis is at a tipping point.” is connected without a single organization when the doctor or patient shares their officially designated to administer and private key with a third party—say a hospital A blockchain is a shared, decentralized, oversee it. or a specialist. secure database which enables any system or device connected to a network—for For example, a blockchain for a patient’s example, a file server, a computer or a medical records would comprise a series printer—to be connected to it. Each entry of records—each stamped with the date on that database is a block. No entry can and time when it was created. Only the doctor, who has one private key, and the 44 45
“Blockchain will enable us to introduce an open platform to share data between parties” Dubai, which has pledged to become a blockchain first economy by 2020. Other industries—and governments—are Dubai has pledged to become a blockchain- Inhabitants of a UNHCR Refugee camp - s focus for the also turning to blockchain technology. For first economy by 2020, aiming to conduct ID2020 project by Microsoft, Accenture, Fjord and Avanade. instance, blockchain is being explored as the majority of the Emirate’s business an enabler of peer-to-peer energy trading. using blockchain. Meanwhile, Sweden It allows households that consume and is adopting “smart contracts” powered also produce energy to buy and sell it by blockchain for a land registry system. directly, with a high degree of autonomy They are programmable contracts that A blockchain can serve as an open, shared, and security. self-execute when certain conditions are yet secure database recording transactions met, which streamlines an antiquated and In transparency we trust between parties efficiently, verifiably Blockchain will enable us to introduce laborious process. and permanently—a growing number of an open platform to share data between organizations are now starting to harness parties—including a car’s manufacturer, Self-executing contracts represent a these strengths. In fact, the volume of owner, passenger, infrastructure providers powerful example of a Living Service—a investment in blockchain startups is and insurers—which will be necessary if new generation of contextually-aware and expected to eclipse US$3 billion by the end we are to make autonomous driving viable. indispensable services set to transform of 2017. For this reason, Jaguar Land Rover recently and improve the way we live, brought announced it was backing UK start-up about by harnessing a combination of The best-known use of blockchain DOVU, which is using blockchain to build a technologies to deliver a new layer of technology is bitcoin—the digital “crypto- global marketplace for transport data. connected intelligence. currency” which is transacted without middlemen (banks), without transaction In the public sector, Microsoft, Accenture, fees, and without the need to give your Fjord and Avanade recently worked with real name. The price of bitcoin, now one ID2020 to develop a global ID system of a number of digital currencies, jumped powered by blockchain for use by 1.1bn in value by 900% between January and people in distressed situations without November 2017. Data source: Coindesk ID—such as refugees—to create a legal and permanent identity. 46 47
What’s next? Platforms like FollowMyVote—a blockchain venture allowing for secure, anonymous voting, monitored in real time—are developing just this in the US. In South Asia, blockchain is being discussed as a powerful opportunity in a region where trust in financial institutions was already low—even before the 2008 financial crash. In collaboration with Thales, Accenture recently launched a blockchain-backed proof of concept to help defence enforce supply chain standards. UK advertiser The Marketing Group has launched Truth—the first global media agency powered by a blockchain-based trading desk to build a cleaner media supply chain with 100% transparency. Designing services and products with trust as their hallmark characteristic will bring new opportunities—but also challenges. It will require new language and techniques, In transparency we trust and it will depend on people understanding what blockchain is, accepting its deployment and trusting it. Otherwise, blockchain’s potential to reverse the general crisis in trust will not be realized. Organizations must act now to understand Because blockchain enables anything to and harness blockchain’s potential to be traced to its origin with all additions Image source, Spotify deliver transparency and the role it can play made visible along the way, it is now being in rebuilding trust—between organization explored as a way of addressing concerns and customer, and between organization about the integrity of elections and fears “Organizations must act now and employee—as doing nothing risks a further distancing between these parties about hacked votes. to understand and harness and, at worst, failure to connect and blockchain’s potential compromised credibility. to deliver transparency and the role it can play in re‑building trust.” 48 49
“Organizations will need to prepare for an inevitable shift from ‘touch points’ to ‘trust points’.” Fjord suggests 01 02 03 Organizations will need to prepare for Expect more leading organizations to invest an inevitable shift from “touch points” to in blockchain following Spotify’s recent “trust points” as quality of trust rather than acquisition of start-up Mediachain. Spotify quality of interaction provides competitive needs to ensure it pays the right people Act now Design for trust Open up for collaboration In transparency we trust advantage. They must explore, too, how to for every track that is played via its service. build trust through radical transparency. This task grows harder as its user numbers Take understanding blockchain To earn trust, an organization Despite significant investment, And at all times, their focus must be fixed grow but it is also difficult because many off the “too hard to do” list must be transparent. It will scaled implementation of on the human response to transparency, of the billions of tracks played on Spotify and educate yourself and your be important to design new blockchain technologies is slow without getting hung up on the technology daily don’t have the proper metadata to workforce (all employees, not navigation systems that simplify due to many industries’ wariness that can deliver it. ensure that the correct songwriters, artists just those in technology roles) complex business processes and about privacy, governance, or rights holders are tagged. This means about its potential. Blockchain demonstrate transparency. Once protection and the high degree Expect new and innovative uses of royalties may not be registered, or could go is not just a “deep technology” the trust crisis is addressed, we of collaboration required to share blockchain technology such as Alice.si—a missing. Spotify’s acquisition of Mediachain phenomenon—it’s a game- will see new services emerge, and store data. Collaborate with UK service which uses blockchain to offer is designed to address this need. changer. which will capitalize on far deeper trusted partners to maximize charity donors the option to track their levels of trust. blockchain’s potential. donations, and which keeps funds secure and releases them only when a chosen charity’s goals are achieved. 50 51
Trend 06 The ethics economy Organizations have started to take political stances on issues of general concern and, over the coming year, this will grow more commonplace—driven by customers’ and employees’ accelerating expectations. No organization will be able to afford to sit back and claim to be neutral. Navigating this new territory successfully starts with preparing to have every action (and inaction) closely scrutinized and used as a differentiator for customers choosing between two otherwise comparable options. 52 53
What’s going on? “Companies are nothing more than a collection of people. So, by extension, all companies should have values.” - Tim Cook. San Francisco Pride week Apple CEO Tim Cook explained in His sentiment neatly highlights the new September 2017 why he has openly environment in which organizations now The ethics economy campaigned for gay marriage and opposed find themselves and how they must prepare religious freedom laws, despite a tradition to best meet evolving employee and of US corporate leaders keeping their customer expectations in the year ahead. political views to themselves. Until now, it has been enough for an “People should have values,” he said. organization to be reactive. As customers, “Companies are nothing more than a we wanted brands to make us feel like we collection of people. So, by extension, all were making good choices, so Patagonia, Tim Cook: Image source, Apple companies should have values. As a CEO, The Body Shop, shoe brand TOMS and I think one of your responsibilities is to others like them helped us to feel like we decide what the values of your company were being responsible. are, and lead accordingly.” 54 55
More recently, customers have demanded brands do the right thing—quickly owning up when they make a mistake, for example. Inaction is dangerous, as shown by the backlash against United Airlines when it failed to quickly apologize for mistreating a passenger when removing him from a flight. Organizations responded because they feared losing business, and they started to recognize that customers hold the power to build or tear down brands with their spending behaviors and online actions. Consider the power of hashtags. In the past 12 months, individuals and organizations have been sent into a spin by the significant consequences of their ethical decisions, made widespread by prolific social media campaigns. Public scrutiny is the new normal, and social media has become a volatile and intimidating platform where brands can respond to current affairs. The public’s mood can change fast—and share prices impacted accordingly. “Organizations The financial app Triggers, which notifies Across the board, consumers and responded because investors of micro news events that impact stock value, is just one example that shows employees now expect to be able to make their voices heard in bigger decisions. More they feared losing how deeply companies are affected by importantly, they expect organizations to business, and they seemingly minor everyday affairs. listen without being asked. started to recognize While being reactive was previously A growing number of organizations are The ethics economy that customers enough, customers and employees now expect brands to proactively represent their meeting this demand in a variety of ways, including taking a stand further away from hold the power ideologies and bring their ethical beliefs to home. For example, in response to the to build or tear life across a broader canvas of issues and concerns. This has coincided with a decline devastation wrought on Puerto Rico by Hurricane Maria, Tesla sent giant batteries down brands.” in people’s trust and faith in governments, coupled with solar panels. These batteries which has created an opportunity for can store solar energy for use day and night organizations to step up in opposition to and as such, allowed workers to begin to controversial policy. rebuild the infrastructure—a move that Tesla recently sent giant batteries, went beyond the kind of disaster relief aid coupled with solar panels, to Puerto we are used to seeing. Rico, in response to the Hurricane Maria devastation. 56 57
What’s next? John Lewis recently got rid of ‘Boys’ and ‘Girls’ labels in children’s clothing. A growing number of organizations are “Taking a stance in 2018 Taking a stance in 2018 will not—and Two great examples of the way ahead can making their ethics clear across a range of issues by spelling them out in manifestos will not–and cannot–be cannot— be about charity, corporate social responsibility or damage limitation. be found in retailing. British department store John Lewis recently decided to distributed to employees. For example, about charity, corporate Nor can it be about organizations being retire “boys” and “girls” labels in children’s Facebook co-founder and CEO Mark Zuckerberg recently wrote and distributed social responsibility or reactive, taking action only after concerns are voiced. clothing—not due to public pressure, but simply because it believed this would a 6,000-word outline of Facebook’s damage limitation.” be a good thing for gender equality role in everything from promoting civic Instead, it must be about organizations and diversity. engagement to combating global crises. being proactive and drawing a line in the sand on one or more of the many IKEA has committed to employing In our 2017 trend Unintended issues now concerning their customers refugees at production centres in Jordan Consequences, we highlighted the need for and employees. as part of a long-term plan to create The ethics economy organizations to confront the unexpected employment for 200,000 disadvantaged impacts of their products and services, Forward-looking organizations are already people around the world through social business strategies and actions. Within interrogating themselves and their business entrepreneurship programs. just one year, a new paradigm has become practices to understand their own actions clear: organizations can no longer claim (good and bad), and also to consider events Over the year ahead, organizations and to be neutral or unaware. They must be beyond their immediate realm so that they design consultancies must ask themselves proactive, identify and understand their can make informed decisions on when and some hard questions if they are to meet position on a broad range of issues—before how to take a stand. their employees’ and customers’ ethical they are forced to take a stand. expectations. How does a company please everyone on topics that have been taboo or never discussed on a massive scale? How far should companies go in responding to 58 59
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