In 2017 we witnessed a context of rapid change: the creation of increasingly customer-oriented products and services and frictionless experiences for aware consumers, connected and with ever-higher expectations.
As underlined by Forrester Research vice president and analyst Brian Hopkins, the digital dimension “enables a transformation that creates the skills to constantly change, facilitating entry into new markets, developing new products and integrating technology to offer new experiences to consumers”.
The companies that want to ride the change underway will therefore have to adopt an innovative strategy and be ready to seize the opportunities according to the technological trends that will impact on the whole organization.
The decision to adopt a Digital Transformation process, which leads to the structuring of an increasingly flexible organization model and remaining competitive in the market, translates into a change that is not only technological for the company but also organizational and cultural and that involves the integration of innovation and new technologies capable of accelerating business growth.
Characterizing this digital transformation are the ICT solutions of the so-called third platform — an economy addressed by the potential of four technological pillars (Mobile, Big Data Analytics, Cloud and Social) — and the innovation accelerators.
2018 will be characterized by what Gartner calls “Intelligent Digital Mesh”, that is the continuous convergence between the physical and digital world with the technology incorporated everywhere in an intertwining of objects, people and services.
We have identified some trends that will assume, in this and in the next few years, a central role in people’s lives and business processes, with the aim of making the experience more fluid and interconnected than ever.
What will the 2018 trends in the tech, mobile and digital fields be?
The fil rouge of the identified trends is artificial intelligence that, together with other emerging technologies, will allow many business contexts to record strong growth.
Trends in 2018 will focus on:
- Artificial Intelligence;
- Augmented, Virtual & Mixed Reality;
- Big Data Analytics;
- Biometrics Recognition;
- Blockchain;
- Digital Payment;
- Internet of Things;
- Machine Learning;
- Mobile & Cyber Security;
- Omnichannel;
- Open Api;
- User Experience;
- 5G.
1. Artificial Intelligence
Artificial intelligence is the ability of machines to perform some typical tasks of human intelligence including planning, language comprehension, image and sound recognition and problem solving.
By 2019, in the Banking sector, AI will become the main driver of customer experience 4.0, allowing banks to know and analyse the intentions and emotions of their customers, improving interaction through the implementation of immediate and efficient interfaces.
2. Augmented, Virtual & Mixed Reality
Augmented and Virtual Reality, combined, produce new settings and visualizations where digital and physical objects coexist and interact in real time.
Mixed Reality, according to IDC analysts is a trend destined to reach a turnover of 165 million dollars by 2020.
AR, VR and MR applied in the Sports Industry and Retail, are innovative digital solutions capable of transforming the customer experience, enabling new entertainment experiences.
Real Case Application of Mixed Reality in Retail:
3. Big Data Analytics
The transaction processes of production and communication generate a large number of data, better known as big data: they are at the base of Digital Transformation and allow to considerably speed up decision-making processes and operational efficiency to achieve company objectives, maintain competitiveness and improve customer satisfaction.
In Italy, interest in measurement tools such as Business Analytics, Business Intelligence and Big Data Analytics is constantly increasing with a total turnover of 1.1 billion euro already.
4. Biometrics Recognition
The biometric recognition system is a solution that will improve human-machine interaction through the recognition of the natural language, of the face, of the Tone of Voice, of the body’s movements and of the non-verbal language of the human being.
By 2018, 30% of our interactions with the technology will be through conversations with systems based on speech and facial recognition.
In payments, for example, mobile pay-by-face functionality offers such a secure, fast and convenient way to make purchases that it is already completely transforming the way to do business.
5. Blockchain
Blockchain is a communication protocol that identifies a technology based on the logic of the distributed database (Distributed Ledger Technology) that is currently mainly used to verify transactions within the digital currencies. In short, blockchain is represented by a chain of blocks that contain and manage multiple transactions.
By 2020, 20% of the insurers who are testing blockchain will move to the fully operational phase, with concrete steps already in 2018, helping to reduce incidents of fraud and corruption, decrease the costs associated with transactions, ensure privacy and globalize insurance services.
Allianz, for example, is the first insurance company to offer a service using the captive insurance blockchain prototype and demonstrating that regular transactions and the transfer of cash between insurers and customers can be significantly accelerated and simplified.
6. Digital Payment
All those forms of digital payment that simplify purchase transactions, from contactless payment to transactions via mobile app or wearable devices.
In Retail, the increase in online transactions (especially in mobility) will facilitate the process of digital integration bringing important benefits also to the store such as reducing staff costs, improving the look and feel of the store and the quality of services offered to customers.
7. Internet of Things
With the expression “Internet of things” or IoT, we generally mean the evolution of the use of the Net, which extends the Internet to the world of objects, allowing them to acquire an active role, communicating their data and accessing information already shared.
In 2018, 70% of retailers plan to invest in IoT with the aim of improving the customer experience and making supply chains more efficient, optimizing the delivery services to customers.
This technology also allows to:
● learn more about customers by collecting useful information;
● adapt offers to their needs;
● provide a better buying experience;
● manage store inventory, also with a view to integrating with online sales platforms.
8. Machine Learning
“Field of study that gives computers the ability to learn without being explicitly programmed”
Arthur Samuel, 1959
Machine Learning (ML) or automatic learning is a branch of artificial intelligence based on the idea that machines, by developing powerful algorithms able to learn from data, should be able to learn, adapt and improve themselves through experience.
AI-driven technologies will be the next great enabler of new solutions able to enhance the customer experience and the ability to anticipate trends will be the real competitive advantage of companies. Machine learning will therefore help businesses in this effort by providing a predictive analysis based on big data regarding customer behaviour and campaign performance history.
By 2020, 30% of CIOs will include Machine Learning and Artificial Intelligence in the first five investment priorities and as early as 2018 companies will invest in data preparation, system integration, algorithms and the selection of methods of training and creation of reference models.
9. Mobile & Cyber Security
Companies are investing in cybersecurity systems and procedures to keep information secure.
With this in mind, the new European Data Protection Regulation (GDPR) in force in May 2018, will play a central role which will determine 34% of EU expenditure on IT security. The GDPR will lead companies to review their internal processes and to put user privacy as an element to prioritise.
10. Omnichannel
One of the objectives of the omnichannel strategy is the ability to offer services that are increasingly in line with customer needs.
The omnichannel model is establishing itself globally as a winning choice in the brand-user relationship and will become a trend to be considered more in 2018: companies that invest in mobile-first strategies will gain a competitive advantage, capturing the attention of users in micro-moments of search and purchase.
11. Open API
The Application Programming Interface simplifies the possibility of dialogue between one application and another avoiding redundancies and unnecessary code replication.
The adoption of Open API is leading to a paradigm shift even in payments: Open Banking and the development of API ecosystems are initiatives that will enable consumers to take advantage of new products and services to improve financial management.
With the European Payment Services Directive, called PSD2, in force in January 2018, banks will try to attract new customers by offering a platform for open banking services.
The primary objective of the PSD2 will be to create a single and integrated market for payment services, standardizing the rules for banks and new PSPs with the advent of digital.
12. User Experience
User Experience is the experience of using a product or service that is designed based on users’ needs, expectations and goals. It also suggests the mode of use to shorten the user’s learning curve and offer an intuitive user experience that enhances all the emotions that a person experiences, for example, when interfacing with an app.
The challenge for brands will be to strengthen the relationship with their customers and to design user experiences that are ever more intuitive and frictionless, with a clear information architecture and a pleasant and functional ergonomy that can offer the user a First Time Impact user experience and a growing Lifetime Value both on a website and in an app.
13. 5G
5G, the new standard for mobile communication, will enter the market from 2020 (in the US probably by the end of 2018 already) ensuring a better coverage of the territory, a higher connection speed and enhanced signal efficiency.
The new technology will offer new communication channels to connected cars and autonomous driving, and will enter production facilities, becoming fundamental for the implementation of the principles of Industry 4.0.
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