CES 2021: Trends & Takeaways
The Consumer Electronics Show is an event we look forward to every year. At CES, we find inspiration for opportunities, sense technology trends, understand use cases, and build meaningful partnerships and collaborations. CES 2021 was definitely different — No long lines at the airport or hotels, no walking for hours from sessions to exhibit booths, and no evening networking meetups. Everything was online this time and we very much appreciate being able to be safe and still accomplish our objectives.
The CES 2021 theme was centered around “Society,” and rightfully so considering we just experienced a year (2020) full of life disruptions. The fireside chat on “Technological Mega shifts Impacting our World” between Thomas Friedman and Prof. Amnon Shashua really summarized the exponential change we’re experiencing and also headed into. The whole theme at CES resonated with us as it aligned with our vision at 99P Labs, which is “A sustainable society where people can enjoy life through the joy and freedom of mobility.”
As we were planning for CES, we decided to cover C.A.S.E broadly but expanded our reach of this acronym to look at the following topics:
C = Connectivity, Connected User Experiences, Customer/User
A = Autonomous, Automation, Accessibility, Artificial Intelligence & Data Technologies
S = Shared, Smart Mobility, Smart Cities, Sustainability and Society
E = Energy, Electrification & Environment
Like always, there was a lot of ground to cover, understand, and learn about. The team at 99P Labs has summarized our learnings to share with you.
Rajeev Chhajer, Data Innovation
Trend: Privacy & Trust — A growing problem that NEEDS to be addressed
Privacy was a hot topic at CES this year. It was evident that the pandemic not only accelerated technology adoption and changed behaviors to be digital-first but it also surfaced more discussions and urgency around “digital safety and trust”. The conversations on Digital technologies, AI, Smart Cities, Connected Experiences, Connectivity/5G or Regulation was not complete without talking about Privacy. Many companies shared their current approaches around Data Transparency and providing Visible Controls to their users. A panel discussion on “Privacy & Trust with Amazon, Google and Twitter” was very interesting and brought up issues and challenges of Privacy at Scale at these Global Tech Companies. A good example to understand the issue of Privacy at Scale is the use of Twitter. Does one see different content when they are in the US versus when they are in Germany, or how do the users’ controls and settings change from one country to another or from one state to another state for that matter.
These companies anticipate more structured and holistic regulation coming into practice within the next 2–3 years. “Policy as Code” is the next key practice or technology component that the CTO of McAfee suggested in the “Exploring Rapidly Changing Cyber Terrain in an Interconnected World” panel discussion. Further more, the debates around privacy-first design principles or efficacy or efficiency-first design principles for user experiences are only increasing. A lot of work is being done in terms of User Consent and Data Rights. This was the big focus in the “Data Democracy: Fight for A Free and Open Internet”. It definitely feels like not only areas like UX and design will undergo big thought framework changes but also business models and regulatory framework. Seems like it is a good time to put on our “First Principles” hat and work collectively to research and solve this problem we know is only going to get bigger as technology deeply integrates into our lives.
Eric Bauer, Data Innovation
Trend: The Pace of Technology & Ethics
Thomas Friedman, critically acclaimed author of The World is Flat, began his CES debut with a whirlwind tour of recent human history. He described “Promethean Moments” like the printing press and industrial revolution where humankind has received a mythical gift that propels our civilization into a new era. According to Friedman, we are at another such moment, though there are three simultaneous forces acting on us. The globalization of the world economy, the threat of climate change and the revolutions brought about by Moore’s Law — including the application of AI to our toughest problems.
Professor Amnon Shashua, CEO of self-driving car company, Mobileye, joined Thomas. Mobileye is based in Israel and needed a way to test their mobility AI. The city of Jerusalem looked like the perfect challenge. It is full of winding, ancient streets and a wide variety of traffic from carts to cars. The real test, however, was to simply get permission. There was no regulatory guidance on how to proceed. The pace of AI and self-driving technology had outpaced local regulators’ ability to understand it. Fundamentally, how can we know if technology is aligned with shared human values when its complexity is understood by a select few? We make hundreds of judgements every day when driving and sometimes lapses in judgement can cause crashes or even fatalities. How do we translate “do not drive recklessly” into code?
The answer to both of these questions is to come together and have a conversation. Mobileye did just that by proposing policies around self-driving cars that they thought aligned with human values. They proactively brought these to discussions with regulators in Jerusalem and in doing so have successfully defined ethical guardrails for their technology. This same regulatory framework has been copied into a new wave of cities looking to test autonomous vehicles. Brad Smith echoed this same rallying cry of “conversation” in Microsoft’s keynote. In light of ransomware attacks on hospital infrastructure — in the middle of a pandemic — Brad said the Tech industry needs to hold nations to higher ethical standards when it comes to cybersecurity. Espionage will always be around, but indiscriminate attacks on supply chains should be off-limits. The pace of technology again is beyond current laws, but we must have discussions on ethical guardrails so that we behave in humanity’s best interest while laws catch up. Brad Smith ended his keynote saying, “The technology we create must serve the world.”
Brian Nutwell, Data Innovation
Trend: Corporate Adaptation in a Digital-First world — Examples from other industries that suggest a path forward for OEMs
As the pace of both technological and social change continues to accelerate, corporations are being forced to adapt not only their product and service offerings, but some of their fundamental approaches to business operations. Two examples in particular from CES 2021 provided insights that may be applicable to OEMs.
Best Buy CEO Corie Barry shared her insights in a compelling keynote speech. Though Best Buy is a provider of mostly physical (technology) products, she asserted that their future relationship with customers would be “Digital-First” — based on a user’s online account and ability to order products and services remotely. During 2020 they successfully pivoted from a primarily in-store-browsing shopping model to focus on same-day curbside pickup. But in the future they see their physical stores and staff as still essential for three key value propositions: large purchases like TVs where the customer wants to experience them firsthand, complex transactions like home stereo systems where the expert advice of floor staff is a key driver of satisfaction, and repair & returns desks where human interaction and immediate feedback can turn customer frustration into appreciation.
This approach is clearly applicable to OEMs’ customer relationships. We can imagine that “one online account” could persist through product purchases as well as usage based insurance and other apps or subscriptions. But this digital-first approach would still rely on the dealer or dealer-equivalent as the in-person hub for testing, product advice, and service/repair.
In a separate session, experts from the digital marketing world (including Disney’s EVP of Client & Brand Solutions) discussed the future of customer data, in light of “the crumbling of the 3rd party cookie.” This is not an area where I personally had paid much attention in the past. But Google has announced that the Chrome browser (following Safari and Firefox) will discontinue support for 3rd party cookies, which are often used by ad-tracking agencies. This action aligns with an overall shift in the digital marketing landscape, away from companies purchasing “leads” in bulk and towards companies establishing their own relationship with specific customers.
This relationship would be centered around the company’s own high quality model of the consumer, which ideally would integrate data from multiple platforms or channels. For example, Disney would like to gather behavior data from Hulu and ESPN and apply the resulting insights in the Disney+ recommendations, or leverage Disney+ viewing history for offerings at their parks. “Cross-platform measurement and targeting” not of devices, but of individuals and even households, was described as the new holy grail for marketers. (And fair warning, they regard the “connected home” as a very promising part of this sensing ecosystem!)
In an OEM’s case, again we can imagine that “one online account” at the center of an ongoing relationship with the connected customer, which includes not just purchases but behavior and hobbies etc. This could help us offer more appealing and more appropriate products and services. And hopefully reduce reliance on blanket discount events to attract or retain customers!
Erin Clepper, Mobility Innovation
Trend: E-Commerce & Consumer Engagement in a World of Shifting Values
To nobody’s surprise, the events of 2020 resulted in a boom in the E-commerce industry. With much of the world working from home, consumer habits quickly and dramatically shifted to accommodate this new lifestyle. And as a result, companies rapidly had to adapt their strategies to match. Some of this change will revert back over time, but much of it is here to stay. At CES 2021 there were a number of great speakers and sessions that centered on this topic and highlighted how consumers and companies alike can make the most of this shifting E-commerce landscape.
At the session “Future Reimagined,” Michael Miebach, CEO of Mastercard, kicked things off with the statistic that E-commerce accounted for about 20% of all commerce in 2020, compared to only 13% in 2019. Furthermore, he predicted that two-thirds of this E-commerce wave will be here to stay, specifically where the consumer experience was better than the in-person version. From the consumer lens, Julie Sweet, CEO of Accenture, shared that 65% of consumers expect to continue working from home to some extent, post-pandemic. And possibly most surprising, 15% of consumers said they never wanted to go back to a physical store! This is quite a shift to occur in one year’s time, so companies should consider a large part of their E-commerce strategy changes made in 2020 to stick around long-term.
Another great session was “Content Curated for a Kinder, Gentler Consumer,” which was all about how brands can align with consumer values for authentic and sustainable engagement. From Millennials to Gen-Z, the importance of value alignment with brand engagement has only grown. And increasingly, brands are partnering with influencers and content creators who share the values of their target consumers — a great new avenue for engagement. Aaron DeBevoise, CEO and Founder of Spotter, Inc. noted that lately, the size of a creator’s reach but also the number of creators at that scale are growing. The creators who find sustainable audiences also tend to be “purpose-driven” creators, whose content centers around a specific subset of the human experience. For example, focusing on baking rather than just cooking, or focusing on mental health within the broader health spectrum. Jesse Angelo, President of Global News and Entertainment for Vice Media Group, emphasized that experiences will come surging back, just as the Roaring Twenties occurred after the Spanish Influenza. People will be seeking out experiences and finding joy to make up for lost time. Between working with content creators and creating joyful experiences, companies have a myriad of opportunities to consider for developing new, sustainable channels of engagement with consumers.
Sarah Mauk, Mobility Innovation
Trend: Smart Cities and Sustainability
The key to unlocking the full potential in future smart cities starts now with sustainability and rethinking the role of a City Post Covid-19. As we all well know, the impact that Covid-19 took economically on our cities was devastating. No school, office workers relocated home, and no sporting events has left the cityscape cold, and bare. So how do cities move forward? The CEO of Numina Tara Pham talked about the smart sensors her company has been putting up in cities that collect unbiased data about the mobility in the city pre pandemic. Everything is analyzed: all forms of mobility including foot traffic, bikes, scooters, vehicles, and buses. This data is used to better understand how people are moving in a city, and to identify problem areas that need attention. Now in the middle of the pandemic, these sensors are being used to help build digital cities or digital twins. Within these digital twins, cities are looking at how they can change the role of their city to better match what life will be like once the pandemic is over. It is estimated that about 20% of people will return to office once things go back to normal. That means that 80% of the people who originally worked in the city will continue to work from home. That massive amount of traffic and people will no longer be in the city adding to the city’s economy and taking up parking spots. These cities will have a greater amount of space that need to be repurposed. That space will only continue to grow with autonomous shared vehicles and the mass amounts of people switching to use micro mobility such as scooters and bikes.
The other part of key for cities will need to be sustainability. The scooters, bikes, autonomous vehicles, and other modes of transportation will be powered by electricity. Cities need to find a way to power all these modes of mobility along with building with clean energy. Companies like Philips and P&G are already setting to standard with their eco-goals of being carbon neutral, looking for ways to keep their packaging out of the oceans, and using wind to power their plants. Being eco-friendly and supporting eco-friendly companies and cities is a growing trend among people, as threat of global warming becomes one of the main concerns. If the cities of tomorrow want adopted, they need to adapt to the Green movement. The cities are on the move looking for the new definition of what it means to go to the city for the day. Thanks to technology and the electrification of mobility, these cities are closer than ever to reaching that new definition.
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