The document discusses how future consumers will change the game for businesses through a more people-led approach to innovation where consumers are actively involved in the product development process. It outlines several presentations given at a conference that highlight trends showing consumers care more about health, sustainability, and having more control and choice through technology. The overall message is that businesses need to listen to consumers more and involve them directly in the innovation process.

1. How Future Consumers will Change the Game
ECR Europe Conference
27 May 2008, Berlin

2. How Future Consumers will Change the Game
‘A people led approach to innovation’
Gus Rodriguez
Kees Jacobs
‘Organising people’s lives’
Alastair Bruce
‘User-driven Internet’
(by Kees Jacobs)
‘Community co-creation’
Mark Hansen
Future Consumer 1

3. The main message…
Just accept
When will my that
consumers start consumers
listening to me are the boss
again…? in the future
Future Consumer 2

4. How is your dialogue with your consumers ?
Future Consumer 3

5. The view of current consumers on their future behaviour
Health and wellness will be the key personal drivers
85 % of consumers expect this to be (extremely) important
Consumers will strongly consider sustainability aspects in their
decisions
But only 20 % are willing to pay a premium for this
4
Future Consumer

6. The view of current consumers on their future behaviour
Consumers expect to become
smarter in using all kinds of new
technologies – at home, in stores
and ‘on-the-go’
Consumers are increasingly
expecting to enter a true dialogue,
and are willing to provide relevant
information
Over 50 % are willing to
provide personal information
Expecting ‘personal
promotions’ in return (80 %)
5
Future Consumer

7. The view of current consumers on their future behaviour
Stores will remain important – but
the online channel will grow
considerably alongside
For non-perishable food:
60 % will only buy in stores
For Health & personal care:
40% will only buy in stores
Consumers will increasingly
demand new options for home
delivery
20 % is interested in
neighbourhood pick-up
See GCI ‘Future Supply Chain’ session
Tomorrow 11.30 – same location 6
Future Consumer

8. How Future Consumers will Change the Game
‘A people led approach to innovation’
Gus Rodriguez
Kees Jacobs
‘Organising People’s lives’
Alastair Bruce
Insert video clip 1
‘User-driven Internet’
(by Kees Jacobs)
‘Community co-creation’
Mark Hansen
Future Consumer 7

9. People Led Innovation
Gus Rodriguez, Vice President
Partnerships, Incubators and Consulting
Philips Design
May 27, 2008

10. “Every few hundred years in Western History there occurs a
sharp transformation. Within a few short decades, society
rearranges itself: its worldview (paradigm), its basic values,
its social and political structures, its arts, its key institutions.
Fifty years later there is a new world.”
Peter Drucker “Post Capitalist Society”
Story is more about the How of the Future than the What of the consumer.
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 9

11. The distribution of wealth
Purchasing Power Population
> $10,000 advanced 500
Parity per year in millions
markets
$1,500 - emerging 1,500
$10,000 markets
< $1,500 developing 4,000
markets
Beyond materialism
Source: adaptation of a model presented by S. Hart - Kenan-Flagler Business School, WSSD, 2002.
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 10

12. Commoditization, Oversupply and Waste
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 11

13. People: involved, connected, empowered
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 12

14. The future of technology
Ambient Intelligence
The house of the future
will look more like the house of
the past than the house of today
- Stefano Marzano
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 13

15. CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 14

16. CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 15

17. CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 16

18. The Future of Economics
economic
index
Gross Domestic Product (GDP)
Index of sustainable economic
welfare (ISEW)
time
We cannot continue to “consume” the future in this way
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 17

19. A new paradigm
Industrial age People age
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 18

20. A new paradigm
•Top Down Authority •Open Ended, Organic
•Masculine •Feminine and Masculine
•Experts and professionals •Explore, create, experiment, refine
•Work it all out a priori •Real life trial and error and experience
•All planned and charted •Collaborative participation also based
•People construct their own meaning
•Life Future Predetermined •Own their own futures
.
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 19

21. The consumer of the future
Beyond materialism … search for the Quality in Life
• Self development and growth
• Relationships-family, friends, community
• Participation and control
• Balance and well being
• Diversity
• Creativity
• Empowerment
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 20

22. People Led Innovation …
Researching the Future
Foresight,Trends &People Research:
Socio-dynamics, CultureScan
Foresight in Design Personas, Generations, Communities
Engaging with the Future
Cultural Innovators
Creative Communities
Social Entrepreneurs
Co-Creating the Future
open, collaborative inclusive research
Envisaging the Future
Probes-experience demos
Application demos
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 21

23. Understanding society & people…
in the dynamic future context
Short term
insight
forecast
foresight
Long term
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 22

24. Cultural … Leaders, the future consumers
Cultural Creative's: aprox 24% of the adult population (44 million in USA).
Core CCs- 50% Green CCs
- Global sustainability - Very green
- Leading edge thinkers and creators - Strong interest in spirituality
- Upper middle class - Middle class
- 66% women, 33% men - 55% women, 45% men
- Above average income - Above average income
Key values Key values
- More concerned with psychology - More environmentally focused
- The meaning of life, new knowledge - Strong social and community concerns
- Being socially concerned
Cultural Innovators
Personal growth, self actualization, self determination,
Sustainability, diversity, social concern, altruism
at the leading edge of change and are a powerful force for change in the coming
years
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 23

25. Open Innovation: Co-creating the Future
Collaborative Innovation Networks
drive new growth through radical innovation
Companies see the need to collaborate with other companies and
stakeholders for new business development beyond their business
boundaries, to innovate and make a difference in society.
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 24

26. New platforms for Co-creating the future
The Philips Design Co-creation Experience
Philips Design is exploring new ways to collaborate and engage with Second Life residents.
Visitors to the Co-creation Experience home are invited to register to participate in collaborative
activities aimed at further understanding people’s motivations and desired experiences.
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 25

27. Design Innovation
From Vision to Innovation and New Value
Discover
Inspire &
Imagine
VISIONARY PROJECTS
Realize
New Nomads 2001
10
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 26

28. Design Innovation
From Vision to Innovation and New Value
Discover
Inspire &
Imagine
VISIONARY PROJECTS
Realize
New Nomads 2001
10
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 27

29. Philips | Swarovski
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 28

30. CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 29

31. Integral communications solutions
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 30

32. Design Innovation
From Vision to Innovation and New Value
Discover
Inspire &
Imagine
VISIONARY PROJECTS
Realize
New Nomads 2001
10
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 31

33. The Simplicity Event
“Is Philips Design the Absolute Best Design Company in The World?
I don't know the answer, of course, but I go to a lot of events and see a lot of fascinating things and on Monday night I went to The Simplicity Event
put on by Philips Design on Pier 94 in Manhattan and it just blew me away. I saw technology in natural harmony, seamlessly integrated into the way
we normally move through life.“ Bruce Nusbaum Business Week editor, New York, 2006
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 32

34. The Simplicity Event: Health & Wellbeing
move your body share experiences
care for your body relax your mind
listen to your body
Next Simplicity Events reinforce the notion that
Philips is a reference point for Simplicity.
The 2006 Simplicity Event focused on health
and well being!
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 33

35. Design Innovation
From Vision to Innovation and New Value
Discover
Inspire &
Imagine
VISIONARY PROJECTS
Realize
New Nomads 2001
10
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 34

36. CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 35

37. Habitat: living Off the Grid
light water air
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 36

38. Skin: Electronic Tattoo
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 37

39. People Led Innovation …
Researching the Future
Foresight,Trends &People Research:
Socio-dynamics, CultureScan
Foresight in Design Personas, Generations, Communities
Engaging with the Future
Cultural Innovators
Creative Communities
Social Entrepreneurs
Co-Creating the Future
open, collaborative inclusive research
Envisaging the Future
Probes-experience demos
Application demos
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 38

41. How Future Consumers will Change the Game
‘A people led approach to innovation’
Gus Rodriguez
Kees Jacobs
‘Organising People’s lives’
Alastair Bruce
‘User-driven Internet’
(by Kees Jacobs)
‘Community co-creation’
Mark Hansen
Future Consumer 40

42. Organising People’s Lives
Alastair Bruce, Industry Leader Retail
ECR Berlin, 27th May 2008
Google Confidential and Proprietary 41

43. Google ... Organising People‘s Lives
„To organise the world‘s information and
make it universally accessible and
useful“
Google Confidential and Proprietary 42

44. Google ... Over 80 Products
Google‘s Mission:
„Organise the
world's information
and make it
universally
accessible and
useful.“
Search YouTube Maps Mobile
Desktop Sidebar Toolbar Earth Google Mail & Talk Calender
Blogger Groups Picasa iGoogle Book Search
Google Confidential and Proprietary 43

45. The Digital Divide
Google Confidential and Proprietary 44

46. Information
1 Billion
Google
searches per
day
Google Confidential and Proprietary 45

47. Communication
118 Billion
Emails & IMs sent
per day
> 250 M registered
Skype users
Sources: IDC: 'Worldwide Email Usage 2007-2011”; Radicati
Group, 'Instant Messaging Market, 2007-2011' Aug 2007
Google Confidential and Proprietary 46

48. Community
250 Million
Internet users
on
a social network
Sources:
http://www.lexisnexis.com/about/releases/1009.asp (Sept Google Confidential and Proprietary 47
2007); Forrester Europe eCommerce Forecast 2006

49. Entertainment
10 hours
Video uploaded to
YouTube per minute
Source: Google Google Confidential and Proprietary 48

50. Commerce
€130 Billion
EU eCommerce market
This figure has
tripled in the last 3
years
By 2011 the figure
will increase to 20%
of total European
commerce
Source: http://www.auctionbytes.com/cab/abn/y08/m02/i22/s02 (Feb 2008) Google Confidential and Proprietary 49

51. Technology Drives Change
Broadband
penetration
Democratise Falling cost
the tools of of digital
production storage
Google Confidential and Proprietary 50

52. Falling Cost of Digital Storage
• Storage capacity doubles
annually for any given
fixed storage space
• 1 GB storage today costs
around € 0.30
• Average iPod stores
upwards of 30 000 songs
Google Confidential and Proprietary 51

53. Increasing Broadband Penetration
• 400 million households
with broadband access by
2010
• 50% broadband
penetration in W.
European markets
• 60% of Europeans
predicted to have 3G
phones by 2010
Google Confidential and Proprietary 52

54. Democratising the Tools of Production
• 100 million digital cameras
sold annually worldwide
• Everyone is a
photographer, designer,
blogger and journalist...
• Multi-media 24/7 interation
is becoming standard
Google Confidential and Proprietary 53

55. Internet Evolution
Information & Commerce Community,
Communication Self-Expression &
Entertainment
1.0 2.0 3.0
1994 1998 2000 2003 2006 2008
Users 77M 400M 500M 1000M 1400M
Google Confidential and Proprietary

56. Search … Reducing Complexity
Google Confidential and Proprietary 55

57. Future: Universal Search
“In 10 years you
can ask Google
a question!“
Marissa Mayer
VP, Search Products & User Experience
Google Confidential and Proprietary 56

58. Organising People’s Lives: Messaging
Communicate
and
Connect
Google Confidential and Proprietary 57

59. Organising People’s Lives: Sharing
Collaborate
and
Organise
Google Confidential and Proprietary 58

60. Organising People’s Lives: Visual
Messages
258
Mill. Unique
User
Quelle: ComScore Networks, Jan
2008
Google Confidential and Proprietary 59

61. Organising People’s Lives: Geographic Info
TrackTrack ABX Air
Southwest Airlines Find your closest
flight 6359 from Boise
752 from Illinois restaurant in over
to San Francisco
to Los Angeles 65 countries
Google Confidential and Proprietary 60

62. Organising People’s Lives: Getting to Work
Google Confidential and Proprietary 61

63. Organising People’s Lives: Personalisation
Source: Google Google Confidential and Proprietary 62
estimate

64. Self-Organisation: Wisdom of Crowds
Nike Social Networking
with Google Maps
Oral History of Route 66
on My Maps
Starbucks Google
Maps layer
Google Confidential and Proprietary 63

65. Tools for Organising People’s Lives
Google Confidential and Proprietary 64

66. Digital Nomads: Shift Global to Local
1930s
Local
Individual Organising
Mobile People‘s Lives
Google Confidential and Proprietary 65

67. Thank you for your time!
Alastair Bruce, Industry Leader Retail
ECR Berlin, 27th May 2008
Google Confidential and Proprietary 66

68. How Future Consumers will Change the Game
‘A people led approach to innovation’
Gus Rodriguez
Kees Jacobs
‘Organising People’s lives’
Alastair Bruce
‘User-driven Internet’
(by Kees Jacobs)
‘Community co-creation’
Mark Hansen
Future Consumer 67

69. The User-driven Internet
- How it applies to businesses and retail

70. The User-driven Internet allows you to connect better with your customers
customers COMPANIES
69
© 2008 Capgemini

71. The User-driven Internet allows you to better engage with your customers
Feedback
Feedback
Target on Facebook
Target on Facebook
(‘Back-to-school’)
(‘Back-to-school’)
•• Target made its first foray into social
Target made its first foray into social
networking by sponsoring a page on
networking by sponsoring a page on
Facebook, a site rich in college
Facebook, a site rich in college
students
students
•• Target's Facebook page was given the
Target's Facebook page was given the
theme of "Dorm Survival Guide – It
theme of "Dorm Survival Guide – It
was all about the box, referring to
was all about the box, referring to
small rooms
small rooms
•• Target also communicated in the
Target also communicated in the
students' vernacular, "not in Target
students' vernacular, "not in Target
speak,“ – student lingo was used to
speak,“ – student lingo was used to
increase dialogue
increase dialogue
70
© 2008 Capgemini

72. The User-driven Internet allows you to better involve your customers
Co-Design
Co-Design
Online Design Community
Online Design Community
•• Interactive design tool available on
Interactive design tool available on
website where users submit graphics
website where users submit graphics
•• Submitted graphics are displayed
Submitted graphics are displayed
and rated by other users
and rated by other users
•• The designers of highly rated
The designers of highly rated
graphics then specifiy the printing
graphics then specifiy the printing
method and material colour onto
method and material colour onto
which their design will be printed
which their design will be printed
•• These highly rated designs are then
These highly rated designs are then
produced as a limited batch
produced as a limited batch
production run by Threadless
production run by Threadless
71
© 2008 Capgemini

73. The User-driven Internet allows you to better understand your customers
Dell Gain Customer Insight
Gain Customer Insight
Hell
Blogs for Customer Feedback
Blogs for Customer Feedback
and Idea Generation
and Idea Generation
•• Result of poor publicity from
Result of poor publicity from
Dellhell.com was, Dell’s shares and
Dellhell.com was, Dell’s shares and
sales fell
sales fell
•• A few months later, Dell released a
A few months later, Dell released a
press release saying “we have learnt
press release saying “we have learnt
a lesson and we listen to our
a lesson and we listen to our
customers”
customers”
•• As a result, Dell introduced a raft of
As a result, Dell introduced a raft of
initiatives to engage better with their
initiatives to engage better with their
customer to improve their service
customer to improve their service
•• The Dell Community website was
The Dell Community website was
created, which contains seven
created, which contains seven
dedicated forums covering their
dedicated forums covering their
different product types:
different product types:
-- Members can use the forums to
Members can use the forums to
openly flag problems and share
openly flag problems and share
any solutions they have found
any solutions they have found
-- Dell analyses problems that are
Dell analyses problems that are
flagged and responds to them in
flagged and responds to them in
the forum or in their production
the forum or in their production
process/technical support as
process/technical support as
necessary
necessary
•• Dell Idea Storm is another online
Dell Idea Storm is another online
community which was set up to
community which was set up to
encourage customers to post ideas
encourage customers to post ideas
for new products:
for new products:
-- Ideas are voted on by other users
Ideas are voted on by other users
and the best ideas are converted
and the best ideas are converted
into actual products and action
into actual products and action
and by Dell
and by Dell
72
© 2008 Capgemini

74. The User-driven Internet allows you to improve your brand reach
Viral Marketing
Viral Marketing
Viral Marketing using Social
Viral Marketing using Social
Network
Network
•• Topshop created a profile page on
Topshop created a profile page on
social networking website MySpace.
social networking website MySpace.
•• The profile page is open about the
The profile page is open about the
fact fact that it belongs to the
fact fact that it belongs to the
company
company
•• The pages invite the shoppers and
The pages invite the shoppers and
fashion enthusiasts to read the latest
fashion enthusiasts to read the latest
gossip and see new clothes ranges
gossip and see new clothes ranges
•• Topshop created over 3,000 friends
Topshop created over 3,000 friends
•• The visits from its MySpace profile
The visits from its MySpace profile
page made it the number two source
page made it the number two source
of traffic after Google
of traffic after Google
73
© 2008 Capgemini

75. The User-driven Internet allows you to find new market opportunities
New Customers & Markets
New Customers & Markets
Social Network and Online Video
Social Network and Online Video
Re-Opening Old Market
Re-Opening Old Market
•• A MySpace user who missed Wispa
A MySpace user who missed Wispa
bars initiated an online campaign via
bars initiated an online campaign via
his profile called “Bring Back Wispa!”
his profile called “Bring Back Wispa!”
•• 14,000 people joined this group
14,000 people joined this group
•• Fans posted videos of old 1980s
Fans posted videos of old 1980s
adverts on You-Tube
adverts on You-Tube
•• Cadbury Schweppes noted this
Cadbury Schweppes noted this
phenomenon and demand so agreed
phenomenon and demand so agreed
to produce a trial batch of 23m bars
to produce a trial batch of 23m bars
in 2007
in 2007
74
© 2008 Capgemini

76. The User-driven Internet allows you to better service your customers
Customer Services
Customer Services
Map Mashup
Map Mashup
•• In 1996 Yell.com was established as a
In 1996 Yell.com was established as a
simple text and graphics online
simple text and graphics online
version of the popular Yellow Pages
version of the popular Yellow Pages
•• More recently Yell.com introduced a
More recently Yell.com introduced a
mobile applet so that mobile phone
mobile applet so that mobile phone
users could access Yell.com on the
users could access Yell.com on the
move
move
•• Also introduced a maps mashup
Also introduced a maps mashup
•• The map mashup takes mapping data
The map mashup takes mapping data
and plots the businesses returned in
and plots the businesses returned in
a search relative to the users’
a search relative to the users’
location
location
75
© 2008 Capgemini

77. ‘because you can’t see it
in your stores,
don’t assume
it isn’t happening’
76

78. How Future Consumers will Change the Game
‘A people led approach to innovation’
Gus Rodriguez
Kees Jacobs
‘Organising People’s lives’
Alastair Bruce
‘User-driven Internet’
(by Kees Jacobs)
‘Community co-creation’
Mark Hansen
Future Consumer 77

79. The LEGO Co-Creation & Innovation
Mark W. Hansen, Director Business Development
ECR – May 2008

80. Evolution of user involvement
Passionate LEGO advocates who want to co-create and
Lead Users have a two-way dialogue with us and among
themselves
~ th. global
LEGO Users with details registered in our
1:1 Community ~ millions global database so it's possible to have a dialogue
LEGO Users who participate directly
Connected Community with us, but are not registered in our
~ 10 million global database so it's not possible to
contact them directly
Have bought or received a
Active Households Tens of millions LEGO set in the past 12
months
LEGO Factory 2007-25-04 / Page 79

81. Tapping into
co-creation
LEGO Factory 2007-25-04 / Page 80

82. AFOLs create and share
LEGO Factory 2007-25-04 / Page 81

83. There are multiple online networks...
LEGO Factory 2007-25-04 / Page 82

84. Some users play full time…
LEGO Factory 2007-25-04 / Page 83

85. Product Development: from RIS to NXT
1998 2006
LEGO Factory 2007-25-04 / Page 84

86. Lead users co-driving publicity
11 page cover story in
Wired Magazine
LEGO Factory 2007-25-04 / Page 85

87. TOOLBOX: Evolution of user involvement
User enterprise – LEGO partner
User-developed – User published
User-developed – LEGO published
Co-developed – LEGO published
LEGO developed – LEGO published
LEGO Factory 2007-25-04 / Page 86

88. LEGO Factory 2007-25-04 / Page 87

89. User Developed, User published products
LEGO Factory 2007-25-04 / Page 88

90. What do we offer consumers today?
LEGO Factory 2007-25-04 / Page 89

91. ... BUT we continue to develop and learn to
create new consumer PLAY EXPERIENCE
LEGO Factory 2007-25-04 / Page 90

92. LEGO Universe
Phase 1: Phase 2: LUP Phase 3: LUP III
LUP II • October 2007
• September 2006 • May 2007 •XXXXX key users
• 12 key users • 62 key users
LEGO Factory 2007-25-04 / Page 91

93. Thanks for
listening!
mwh@lego.com
This year, more than 400,000,000 children and adults will play with LEGO bricks.
[ - virtual LEGO bricks not included]
LEGO Factory 2007-25-04 / Page 92

94. How Future Consumers will Change the Game
‘A people led approach to innovation’
Gus Rodriguez
Kees Jacobs
‘Organising People’s lives’
Alastair Bruce
‘User-driven Internet’
(by Kees Jacobs)
‘Community co-creation’
Mark Hansen
Future Consumer 93

95. "Companies don't fail
because they do the wrong things;
they fail
because they continue to do
what used to be the right things
for too long”
(How) will you let
future consumers
change your game ?
Future Consumer 94

96. Thank You !
How Future Consumers will Change the Game
ECR Europe Conference
27 May 2008, Berlin