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May 8, 20012 Consideration of Market Forces Van Baker Gartner.

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Presentation on theme: "May 8, 20012 Consideration of Market Forces Van Baker Gartner."— Presentation transcript:

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2 May 8, 20012 Consideration of Market Forces Van Baker Gartner

3 May 8, 20013 What I Will Not Talk About w The technology w The products w The forecasts I will discuss some things that will impact all of you as developers

4 May 8, 20014 Connectivity Market Dynamics w Agenda – Marketing is Evolving u Focus on technology must change u Offer / Experience displaces technology – Confused Standards u Impact on the Consumer – Workstyle issues u The Changing Business Environment – Lifestyle issues u Mobility u Blenders u Content Portability – Turf Wars

5 May 8, 20015 Marketing is Evolving PervasivePervasivePersonalizationPersonalization Offer/ExperienceOffer/Experience 4Ps Product PromotionPlace Price ValueValue

6 May 8, 20016 Marketing is Evolving Viewpoint The focus of the value proposition must focus on real benefits The customer will still consider technology Dynamics Technology in itself has little value for the consumer Marketing of products and solutions must focus on benefits for the consumer Speeds and feeds are not benefits they are specifications Prediction Products need to be positioned based on value to today’s busy consumer but technology tradeoffs will not be acceptable

7 May 8, 20017 Marketing is Evolving Viewpoint The value of a product will be determined by the experience of buying and using that product The mass market no longer exists Dynamics The purchase experience has significant influence over the purchase decision The value of a product will be determined by usage rather than features Post sale experience significantly enhances / detracts from a product’s value Prediction The experience of buying and using a product together with post sale experiences will be inseparable from the product

8 May 8, 20018 Confusing Standards Viewpoint The conflicting standards in the market will result in consumers that are unwilling to make purchases De facto standards are beginning to emerge Dynamics The confusion between Bluetooth, WiFi, HomeRF, HomePNA and HomePlug has significantly delayed adoption of home networks Confusion between USB 2.0 and 1394 has the potential to delay adoption in a similar manner Confusion among market participants exacerbates the problem Prediction Competing standards will delay widespread adoption of high speed communication technologies

9 May 8, 20019 Workstyle Issues Viewpoint The faster pace of business combined with globalization has expanded the professionals workday The value associated with personal time has increased Dynamics There is significant confusion as to how to respond to these changes Solutions that help to alleviate the increased pressures of the business environment will have high perceived value Prediction Products that facilitate the rapid transfer of information between platforms will dominate the business professional market

10 May 8, 200110 Lifestyle Issues Viewpoint The personal time of contemporary households is fragmented and distributed across several locations This demands highly mobile but simple information flow Dynamics All family members have increasingly mobile lifestyles Value associated with diminished personal time is enhanced Lifestyle mobility places high value on product design and power requirements Prediction Products designed with mobility and long battery life in mind will have high value in the consumer market

11 May 8, 200111 Lifestyle Issues Viewpoint The blender lifestyle is emerging as the dominant lifestyle among business professionals Business and personal applications need to be addressed Dynamics Business professionals will increasingly move between personal and professional activities during the day Buying decisions will be based on simplicity and functionality Prediction Products designed with a logical combination of business and personal applications will command a premium

12 May 8, 200112 Lifestyle Issues Viewpoint The rapid pace and mobility of personal and professional lifestyles will result in consumption patterns driven by time and place utility Content flexibility is not the prevailing pattern today Dynamics Information gains value with ease of access With today’s lifestyle ease of access is difficult to achieve Content providers need to improve content flexibility Prediction Products designed with content portability as a primary design goal will be well received by professional people

13 May 8, 200113 Turf Wars Viewpoint Intellectual property concerns will impact the ability to have mobile content Pressure from the regulatory bodies and consumers will accelerate resolution of this issue Dynamics Content owners do not like mobile content Consumer lifestyles demand mobile content New channels that give access to consumers are emerging Prediction Legal actions regarding intellectual property will diminish / delay consumer acceptance of mobile devices

14 May 8, 200114 Netting It Out Recommendations When designing new products: Consider the blender lifestyle Focus on the experience not the technology Be aware of the threat from 1394 Help reduce consumer confusion Position USB 2.0 relative to wireless technologies Consider the big P product rather than the small P product

15 May 8, 200115 USB vs. 1394

16 May 8, 200116 Questions ???????


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