Converged lifestyle

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The converged lifestyleEgidio Zarrella, Clients and Innovation Partner - KPMG


<ul><li>1.The Converged Lifestyle Consumers and Convergence 5 CHINA</li></ul><p>2. IntroductionnoitcudortnIC onvergence is not new but theway consumers interact withtechnology is constantly changing.Our survey demonstrates thatconvergence is alive and well in 2011.Sure, consumers are now faced with And while businesses will need to evolve to meet the changing demands of consumers, so too will regulators.towards greater integration of deviceswithin the consumer lifestyle and arapid evolution of business models forWe believe we are in a new phase of a bewildering array of devices. ButNew business models often spin off those that enable them.convergence: the converged lifestyle. they all seem to increasingly serve onesupportive ecosystems and upstartWe encourage you to contact yourGet ready for some fast technologypurpose: to enable consumers to getcompetitors that are important to thelocal KPMG member rm to discussand even faster consumer adoption.what they want, when they want it. continued vitality of the technologythe implications of these trends on industry. Regulators must ensure thatEver since our rst Consumers and The speed of consumer adoptionyour business. the rules promote privacy while stillConvergence study in 2006, we also seems to be on the rise. In just providing the exibility for companieshave been polling consumers in key7 years, Facebook signed up more to around the world to nd than 800 million active users; andout what devices, technologies andin just 14 months Apple sold moreOur survey also highlights some keyservices they are using and how theythan 25 million iPad tablets. But considerations that seem to driveare using them. with rapid adoption comes rapidconsumer purchasing decisions.change: business models are quicklyFor one, there is a growing level ofNot surprisingly, weve seen a lotevolving for a range of businesses consumer concern regarding privacyof change in just 5 years. In 2006,including advertisers, retailers, contentand security, particularly when usingour questions focused on the useproviders, mobile operators and banks. new services or technologies. Indeed,of landlines, mobile texting, instant the virtue of trust may soon becomeSean Collinsmessaging and internet browsing:Many traditional businesses are facing one of the biggest competitive Global Chair,smartphones were not widely adopted signicant challenges adapting to advantages for products and services Telecommunicationsby consumers, and tablets did not this new world. The banking industry, across almost all industry groups. &amp; Mediaexist. Social media was still in itsfor example, was somewhat adopt online payments and as aBut the results also show thatresult lost their share of this growingconsumers are xated on price, withToday, consumers are talking aboutmarket to companies such as PayPalTM.many saying that it trumps all otherhow technology enables their lifestyle.Whats more, banks are now seen as considerations when selecting mobileFrom buying goods online to keepingbeing somewhat new entrants into operators, television options andup with friends on social networks,the online and mobile markets, and internet service providers.consumers seem to be more and morewill need to reassert their security andreliant on a range of technologies thatWe believe these ndings and theprivacy leadership in order to build trustperform important although often accompanying analysis demonstrates Mark Larsonwith consumers online.overlapping tasks. a continuing but accelerated trend Global Chair, Retail2 | THE CONVERGED LIFESTYLE 3. THE CONVERGED LIFESTYLE | 3 4. The enabling landlineW hile some pundits may believe that the traditional landline telephone isa thing of the past, our data shows that consumers are still committedto maintaining their landline connections. Globally, more than 80 percent ofrespondents indicated that they have a landline, with the highest concentrationfound in Asia Pacic (83 percent) and the lowest (76 percent) in Europe, theMiddle East and Africa (EMEA).That being said, global rates did fall slightly overall (4 percent) from last yearindicating the changing use of landlines in many regions. For example, 52 percentof respondents reported that they maintained their landline as a means ofaccessing the internet, while more than 10 percent also saw their landline as achannel for new services such as IPTV. believe their landline is important.4 | THE CONVERGED LIFESTYLE 5. Many respondents also seem to hang on to their landline for reasons of comfort: 47The rate of decline of xed-percent said that they kept their landline out of habit, and 45 percent said a landline feltmore reliable. This may represent a massive opportunity for operators that can leverage line telecommunicationsthis stickiness to launch additional services over landlines that drive new revenue services is slower than manystreams and models.expected, says MalcolmOur data also found that the propensity to maintain a landline depended on the age of theconsumer. Only 72 percent of people aged 16-24 report having a landline, versus about, a Partner with KPMG88 percent of those over 45 years of age. in Australia. But a businesscase based on habit and theReason for landline connectionneed for internet connectionis clearly not a long-termBy habit45%47%strategy.A landline feels more reliable38%45%More cost effective forsome/all services32%40%Landlines clearly continue For an internet connection 54%to be relevant for traditional 52%reasons such as reliability In preparation for new 18%services such as IPTV 11% and security, says Wireless coverage/ 14%Globalinfrastructure is limited14%To be able to use a 0%Telecommunications &amp; fax machine 19%Media Advisory Lead. But For security reasons0%16%they are also commonly4%seen as the catalyst to new Other 6% broadband-based services0 102030 40 50 60 such as IPTV and streamed 2010 (n = 5267)2011 (n = 9600)n: number of respondentsvideo services.Source: KPMG Consumers and Convergence 5, 2011Note: Respondents could select more than one option. THE CONVERGED LIFESTYLE | 5 6. The device divideR umors of the personal computers demise have been greatlyexaggerated. Indeed, the PC still dominates over all other devices: 88percent of consumers are most likely to conduct their online shopping ona PC, 86 percent use their PC for internet browsing, and 84 percent usetheir PC for email.Yet although these numbers indicate a continued vitality of the PC, thereis evidence that its foothold as a preferred device is waning. Since our rstsurvey in 2006, 20 percent of consumers have moved away from the PCfor accessing news and information, 26 percent have shifted their instantmessaging (IM) or chat activities to other devices (primarily mobile) and 18percent have forsaken the PC for social networking.Mobile devices have clearly eaten away into the PCs domain. Almostfour-in-ten consumers have used their mobile device at retail outlets toaccess coupons, where they previously may have downloaded and printedcoupons, and one-in-ve consumers have done research or comparisonshopping right in-store, by using their mobile device to scan barcodes.Another signicant area of growth for mobile devices, particularly due tothe web browsing capability of increasingly popular smartphones, has beenin accessing maps and directions. Only 4 percent of respondents to ourAsia seems set to leapfrog the rest of theworld when it comes to the use of newtechnologies, commentsa partner with KPMG in Chinas Clients and a tablet.Innovation Practice. This Asian-led revolutionwill have a dramatic impact on the globalmarket and will largely inuence the futuredesign and sales of new technology products.6 | THE CONVERGED LIFESTYLE 7. Mobile Phone /DevicePersonal ComputerTabletOther Device SmartphoneActivity 07 08 10 110708 10 11 07 08 10 11 07 0810 11Accessing maps/directions -89% 75% 68% - 4%23% 25% 5% -7% 2%2%Accessing news and information 96% 95% 83% 76%1% 2%13% 14% 5%2%2% 4%5%Banking/personal nance (mortgage, stocks, etc.)-96% 85% 84% - 2%14% 10% 5% -1% 1%2%Browsing the web/internet - -93% 86% --6%8%6% - - 1%1%Chatting or instant messaging93% 94% 70% 67%6% 5%29% 27% 5%1%1% 1%1%Emailing- -89% 84% --10% 11% 5% - - 1%1%Education/training/webinars - - -85% -- -8%6% - - - 1%Playing games72% 68% 77% 72%6% 7%17% 19% 6% 22% 25% 6%2%Reading a book- -63% 62% --21% 15% *Option not available 15%- - 16% 8%Online shopping98% 97% 90% 88%1% 2%5%7%4%1%1% 5%1%Researching products/services - - -86% -- -8%5% - - - 1%Social networking (Facebook, MySpace, Twitter, YouTube, etc.)94% 96% 88% 76%3% 1%11% 16% 7%3%3% 1%1%Accessing web-based services such as Spotify, Gmail, Amazon music - - -79% -- -13% 7% - - - 1%Voice conversations15% 8%70% 64%57% 67%29% 29% 6% 28% 25% 1%2%Watching TV programs/movies (streaming)58% 63% 77% 76%7% 5%5%5%8% 35% 31% 18%11%Communications SMS 19% 13%- - 78% 82% - -- 2%5% --Others- -79% 73% --9%19% 4% - - 11% 4% Note: not all attributes were asked in 2007 2008 and 2010.,survey in 2008 had accessed maps on their mobile device versus25 percent today. Mobile has also started to make headway into the games While the PC is clearly not dead, there is amplesegment with almost one-in-ve respondents using their mobile for gamesevidence that consumers are gravitating towardsand entertainment. numerous devices, each with their own benets andSince the launch of the rst Apple iPad in April 2010, tablets havealso captured the minds of consumers. In the 18 months between the drawbacks, suggests , KPMGs Globalintroduction of tablets onto the market and the time of our survey,Chair of Technology, Media and Telecommunications.15 percent of consumers were reading books using these new devices.Somewhat surprisingly, 6 percent of respondents also said they prefer to But as technology continues to improve, we will likelyuse their tablets for voice communication. And while tablets have seen see the PC become relegated to business functionsincreasing adoption rates around the world, nowhere more so than in AsiaPacic where one-in-ten respondents said they use their tablets to watch that run high-functioning tasks.streaming video (versus just 5 percent in other regions). THE CONVERGED LIFESTYLE| 7 8. The trust and privacy priority TM8 | THE CONVERGED LIFESTYLE 9. As we have seen throughout this survey, security and privacy concerns continue to be the biggest barrier to the adoption of new business models. In particular, consumersseem wary about their security and privacy when using devices and interacting with thirdWhile consumers are slowly becoming accustomedto the negatives of technology such as spam andparties. Indeed, nine-out-of-ten respondents said they were concerned about the securityof their personally identiable information (PII) and almost half said that they were veryviruses, they are also keen to benet from theconcerned about the theft of their PII. This represents a signicant increase in concern overconvenience and immediacy that comes with mobile2010 when only 79 percent said the same.devices, notes , Digital ServicesIn response, consumers suggested a number of approaches that organizations could taketo build trust, with three-quarters of respondents saying that better disclosure of measures,Leader, KPMG in the US. The company or group ofbrand reputation and independent audits would help to gain consumer trust.companies that is able to crack the code of consumerSomewhat perplexingly, however, 62 percent of consumers also demonstrated that undertrust in this emerging marketplace is sure to gainthe right circumstances they are willing to have their online usage tracked by advertisers.This is also an increase over 2010 when 58 percent of respondents signaled a similarmassive dividends from their online business.willingness.Privacy and security are becoming ever moreClearly, this represents a strange paradigm for consumers: increasing concern about how their PII is being used and secured is tempered by a willingness to have their onlineimportant to consumers given the rise of mobileuse patterns tracked and analyzed by advertisers. This indicates a signicant businesspayments and commerce, says. opportunity for organizations that are able to offer their customers greater value by collecting their personal information in order to tailor their promotions to individualMobile operators will want to promote their securityconsumers.protocols every bit as much as they do price and As noted earlier, 56 percent of consumers said that, when it comes to online purchases,network quality. they placed their trust in their nancial institution, indicating that banks continue to be the best placed organization to win consumers trust. At the same time, 7 percent said they trusted their retailers most and 6 percent identied their internet service providers. Interestingly, this survey also shows that consumers are very comfortable with secure payment sites such as PayPalTM, which were deemed to be the most trustworthy by 30 percent of respondents to our survey.THE CONVERGED LIFESTYLE| 9 10. The cloud takes shapeW hile many may consider cloud technology to be a rather new innovation, a signicantmajority of individuals (65 percent) already store some level of personal informationon the internet, particularly on social networking sites, photo sharing sites and web-basedThose that do not currently use web-based, or cloud, services tended to have a numberof concerns with the technology. Fifty-seven percent said they were concerned about thesecurity of their data in the cloud and 52 percent said the same about their PII. A third ofemail services. respondents also felt that they had no need for cloud services, apparently content withstoring their data and information on local storage devices.In fact, it seems that cloud technology has already embedded itself into the popular psychewith almost 13 percent of 16-24 year olds saying that they were not aware of web-based Cloud may gain signicant traction as a way to enable eHealth. When asked if they would likeservices versus just 5 percent of those over 65 years of age. This indicates that, while the the ability to access their personal medical information on a mobile device, nearly two-thirdsyounger generation use cloud technology on a regular basis, they do not see it as being a of respondents said yes. However, this sentiment fell signicantly in the over 65 age group,unique service offering but rather an embedded part of the internet infrastructure itself.perhaps reecting the more traditional paternalistic relationship between doctors and patients.Cloud has already becomesomewhat ubiquitous in theconsumer technology environment, says . Manyconsumers dont realize how often to retrieve their data from online services.they are accessing the cloud forservices like email, applications andsocial networking.10 | T H E C O N V E R G E D L I F E S T Y L E 11. Reasons for not using web-based services Concerned about the securityConcern...</p>