Near Field Communication (NFC) – the technology that supports close proximity mobile payment services – has been around for many years. However, up until recently, the NFC-enabled mobile devices and service support needed to make such payments a reality have been lacking.

In this video blog, Ryan Garner looks at the barriers to adoption, demonstrating that Trust and Familiarity of supplier brands will drive consumer preference and arguing the need for co-operation between brands from different sectors.

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With sales of printed newspapers in decline and widespread expectation of free news online, publishers need a radical change of strategy in the way they deliver content, to win back the public’s wallets. News site paywalls are currently testing the most straightforward route, offering users unique and diverse content in exchange for a subscription fee, in a bid to effectively monetise a loyal digital audience. The question is, will tablets – bringing with them a richer, and more engaging user experience – be the bridge that turns the trickle of paying digital news readers into a flood?

NFC technology has the ability to transform smartphones into virtual wallets, where users pay for transactions simply by waving their phone at an appropriate receiver terminal. However, it also has much wider applications, allowing for synchronised content and services across the mobile ecosystem [1]. The reward for owning this relationship in the mobile space is enormous, and as a result everyone, from mobile operators to device manufacturers, is fighting for a share.

The industry message seems clear; mobile payments will be big over the next five years – big news and big profits. The technology has been around in various forms for years and, now that leading names such as Apple, Google and RIM are designing and manufacturing NFC-equipped devices, many commentators predict that mobile payments will skyrocket [2].

However, while this will undoubtedly be a major growth area for the future, such reports seldom address the fact that the journey to full consumer adoption is not without its pitfalls.

Common opinion generally decrees that, in the future, the majority of consumers will be moving to the cloud to obtain broader access to music. While this is almost certainly true, in the fragmented world of consumer music consumption, a ‘collector’ mentality and desire for personal ownership continue to exist amongst many music fans. The music industry needs to ensure these different needs are addressed, rather than assuming a single model will satisfy all consumers.

Vinyl records not affected by the industry downturn?

Over the last few years a pleasing story has continued to appear like clockwork in the press. Amid general doom and gloom and tales of music industry collapse, we are told, somewhat counter-intuitively, that sales of vinyl records are continuing to increase. See the chronologically listed selection of articles below for proof.[1]

The Western European technology sector continues to grow, according to the latest GfK Retail and Technology TEMAX report, which showed Q4 year on year growth of 0.2%. This equates to 2.1% growth for 2010, driven by innovation in IT connectivity and Smartphone sales.

Looking back to establish future trends

Rapid innovation in the technology sector has continued to drive consumers and businesses to adopt devices that enable increasingly mobile and connected access to their favourite content and services. In addition, the overwhelming growth in the smartphone market has resulted in year-on-year growth in the Telecommunications (TC) market. The growth trends established at the beginning of the year continue to strengthen, and influence businesses and consumers to invest in the latest technology.

Innovation in IT connectivity and devices

 

Declining consumer spend on physical music has forced the demise of many traditional bricks and mortar record stores. For the music industry, question marks remain about how, and even whether, the revenue generated by digital music can offset this loss. Rather than fighting this, the music industry first needs to ensure that the remaining retail consumers don’t drop out of its customer base altogether.

High street closures

The first album I bought was Happy Nation by Ace of Base. Yeah, I know. The format I bought it on – cassette – hasn’t aged any better than their distinctive (and, some would argue, inimitable…) brand of Swedish pop-reggae. And now, it looks like the record shop I purchased it from might be taking a similar slide into the field of “ha, remember them?” obscurity.

Despite a deluge of new device offerings, tablet PCs look unlikely to become mass market this year, meaning individual manufacturers will have to strongly differentiate their products to grab the limited share of the market available. Apple still dominates in consumer minds, but Samsung, Blackberry and other Android devices look set to offer a compelling challenge.

 

As expected, February’s Mobile World Congress in Barcelona and the CES show in January revealed a surge of new tablet offerings from the major hardware manufacturers, all vying to compete with the success of the ubiquitous Apple iPad.

But while the tablet market is clearly in ascendancy, at present it is still very much nascent and we are unlikely to see the same growth this year as we expect from other categories, such as Smartphones.[i]

2011 tablet market likely to remain niche

Using customer ideas to help develop realistic and appealing new products

Crowd sourcing can produce a rich pool of exciting product concepts, as the unfettered thinking and creative time that consumers enjoy means that they often come up with more innovative designs. Plus you’re getting NPD ideas that the consumers themselves have already endorsed as a good concept. But how do you balance desirable innovation against keeping the ideas realistic, and how do you spot the winning ideas? The answer is by combining crowd-sourcing, co-creation and standardised product testing.

Using crowd-sourcing in technology NPD

A recent crowd-sourcing study, run by GfK NOP in partnership with co-creation community eYeka.com, recently asked consumers to imagine their “ideal communication technology of the future”. Participants had the freedom to create a new device, a new service for an existing device, a piece of software or an application. Their solution could be designed to make their lives easier, more fulfilling, more productive, or just more fun – the only limit was that it had to be something that could conceivably exist in the next five years.

Exciting times lie ahead within the gaming industry and the buying options for new and used games have never been so wide. New game downloads are increasing at great speed and the used game market is strengthening, with Tesco, Asda and Argos all now offering a used game service. All this is great news for ‘gamers’ but the real opportunity is a platform which combines the two: trading online.

Electronic Arts CEO, John Riccitiello, recently claimed that 2011 will be the year revenues from downloadable games overtake the traditional out-of-box experience[i]. Being an avid gamer myself, a statement like this took me by surprise, especially coming from such a senior figure in the gaming industry. I have little doubt that this scenario will eventually happen, but this year?. There are two big reasons for my scepticism. First, the cost of new games – mixed with the widespread availability of cheap second hand games – and, second, limited storage space on consoles when used more widely in the ‘connected home’ rather than just for gaming.

Smartphones are competing with dedicated personal navigation devices (PNDs) for market share but recent research shows that PNDs are still preferred for in-car navigation. Smartphones can begin to win more market share by improving their user experience and integrating popular social networking and location based services.

Usage of mobile mapping and navigation services is booming. Almost a year ago Nokia announced that its mobile navigation service, Ovi Maps, would be free with a compatible Nokia handset. In the first week alone the service had been downloaded over 1.4 million times. According to Wikipedia Ovi Maps is now available in 74 countries and in 46 different languages. Similarly, Google now offers its mobile navigation services in 12 countries and it has proved a big hit with Google Android smartphone owners. Consequently, in the space of a couple of years the PND market has changed dramatically, with global in car satellite navigation providers such as TomTom and Garmin facing fresh competition from the all gadget devouring smartphone.