Introducing Engaged TV: Xbox 360 Leads The Way To A New Video Product Experience

James McQuivey

What to do when a failed product concept still lingers, haunting every attempt at injecting it with new life? That's the problem with interactive TV, a term that grates like the name of an old girlfriend, conjuring up hopes long since unfulfilled yet still surprisingly fresh. Gratefully, it’s time to put old product notions of interactive TV behind us because this week Microsoft will release a user experience update to the Xbox 360 that will do for the TV what decades of promises and industry joint ventures have never managed to pull off.

Meet engaged TV. From now on, I will no longer need to plead with the audiences I address, the clients I meet, or my friends who still listen to me to imagine the future of TV. Because Microsoft has just built and delivered it: A single box that ties together all the content you want, made easily accessible through a universal, natural, voice-directed search. This is now the benchmark against which all other living-room initiatives should be compared, from cable or satellite set top boxes to Apple’s widely rumored TV to the 3.0 version of Google TV that Google will have to start programming as soon as they see this. With more than 57 million people worldwide already sitting on a box that’s about to be upgraded for free – and with what I estimate to be 15 million Kinect cameras in some of those homes – Microsoft has not only built the right experience, it has ensured that it will spread quickly and with devastating effect.

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The Battle For The Digital Wallet

Benjamin Ensor

Over the past couple of years I have been intrigued by the concept of a 'digital wallet' that will combine mobile payments with a variety of other benefits for customers. The more people I talk to, the more convinced I am that mobile digital wallets will mark a big shift in retail payments. A mobile digital wallet is more than just a mobile payment system because it combines:

  • Mobile payment. Digital wallets are likely combine several different payments systems into a single service, including mobile contactless payments, online (i.e. web) payments, and over-the-network mobile payments, making it easy for customers to make a variety of different types of payment from a mobile device.
  • Barcode scanning. Scanning barcodes or QR codes will let customers get more information about products, and let them pay for items on their phones before showing an on-screen receipt to leave the store.
  • Loyalty rewards. Instead of carrying (and sometimes forgetting) a separate loyalty card, digital wallets will track customers’ spending and offer merchant-funded rewards, either on the phone or at the point of sale.
  • Coupons and offers. Digital wallets are likely to offer customers coupons and location-based offers.
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Apple's Retail Self-Checkout Is No iPhone 4S, This Really Is An Upgrade

Peter Sheldon

For the next 2 minutes as you read this blog post, please try to forget about Apple the product company and instead focus on Apple the retailer. Two years ago, Apple undertook a worldwide roll out of iPod Touches to its store associates. These devices came wrapped in a sled adding a 2D bar code scanner and credit card swipe capabilities to the hardware lineup and enabled store associates to perform mobile POS transactions anywhere in the store. Ever since the retail industry has been playing catch-up with retailers like Lowes, Gap, and Home Depot recently following suit with respective rollouts of mobile POS functionality to their store associates.

Today Apple raised the bar. Customers in the US can now use their own iPhone 4 or 4S in conjunction with the Apple Store app (one of my favorite mobile shopping experiences and complete with a fresh update) to scan the bar code of most in-store products and perform a self-checkout. The feature, called EasyPay uses the iPhone’s rear-facing camera to scan a product bar code with payment occurring via a simple authentication to iTunes, just like any other in-app purchase. The core difference is that Apple is now allowing in-app purchases of physical merchandise, albeit restricted to Apple at this time. Once payment is complete, the customer simply strolls out of the shop showing their digital EasyPay receipt to a member of staff as they exit. Time will tell if EasyPay results in any increase of in-store fraud for Apple, but for the consumer that knows what they want the convenience of EasyPay is crystal clear.  
 
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The Strategy Of Consumerization Was One Factor In HP's Decision To Keep PSG

Frank Gillett

HP made the right decision today to keep the Personal Systems Group. Beyond the reasons cited, supply chain and sales synergy and expense of spinning out, it's also crucial for HP to remain in the market for personal devices, which is entering a period of radical transformation and opportunity. The innovations spawned first by RIM with the BlackBerry, followed by the transformative effects of Apple's iPhone and iPad are beginning to ripple into the PC market. Apple's MacBook Air and Lion operating system, combined with Microsoft's Metro interface for Windows 8 herald the beginning of a transformation of personal computing devices. By keeping PSG, HP has the opportunity to innovate and differentiate in the PC market that will move away from commodity patterns.

For vendor strategists at vendors of all sizes, one of the lessons of HP's decision is that consumer businesses are becoming more relevant to succeeding in commercial products for end users. During the announcement call today, CEO Meg Whitman talked about the importance of "consumerization" in winning business from enterprises. I heartily endorse that view and look forward to sharing a report soon on how consumerization is changing commercial product development.

Do you think consumerization was a part of why HP kept PCs?

What effect do you think consumerization will have in IT markets?

Respond here: http://community.forrester.com/thread/5789

The Greatest Thing To Come Out Of The Mind Of The Late, Great Steve Jobs: His Perspective

Harley Manning

Those of us who work in the field of customer experience are especially hard hit by the passing of Steve Jobs. He symbolized the power of experience — how much a great experience can transform a product, a business, an industry, and even our daily lives.

Do you remember personal computers before the mouse, how you bought and listened to music before iTunes and the iPod, or how many animated films you watched in theaters — with or without the kids — before Pixar?

Steve Jobs even changed the way many of us think. If you own an iPhone or an iPad, you’ve probably found, as I have, that you don’t bother to memorize very much anymore. Why should you when you can dig up facts anytime, anywhere with just a few taps on a touchscreen?

Now please don’t get me wrong: I don’t idealize the man. For one thing, many people contributed to the success of everything I just mentioned. And not all Apple experiences are perfect, and Jobs didn’t succeed at everything he did (remember the NeXT Computer?).

But to go cynical is to miss the point, or more specifically, the point of view — the one that makes Jobs an icon for customer experience professionals. He put it out there when he famously said, “You've got to start with the customer experience and work back to the technology — not the other way around.”

Frankly, “the other way around” is how most companies still operate. Not just technology companies but firms in every industry. Someone has an idea (maybe great, maybe not), and that turns into a product or service in the marketplace. The customer experience that results is whatever it turns out to be.

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Apple’s Product Strategists Maintain The Company’s Premium Positioning In The Mainstreaming Smartphone Battle

Thomas Husson

My colleague Charlie Golvin and I took the time to step back from the flow of news following Apple’s announcement today. Here below is our take from a consumer product strategy perspective.

Apple’s product strategists face an ongoing paradox: maintaining premium leadership with an annual product renewal while tapping the rapidly mainstreaming global smartphone market

Today, Apple’s product strategists revealed their newest premium smartphone: the iPhone 4S. Just like the 3GS at its introduction, the 4S relies on a leap in processing power and a new interaction paradigm but eschews technology upgrades upon which product strategists building Android-based devices rely today, such as LTE and behemoth screens.

Apple’s new iPhone lineup provides a complete portfolio of products, from the premium 4S in memory configurations up to 64 GB, to the 8 GB iPhone 4 which will allow all of Apple’s carrier customers (including new partners Sprint and KDDI in Japan) to offer a mid-tier iPhone. Apple’s product strategists have opted to add an entry-level option for its GSM-based carrier partners by maintaining the 8 GB iPhone 3GS.

With the iPhone 4S, have Apple’s product strategists designed a product that will maintain Apple’s leadership in the high-end smartphone battle? Forrester believes so — even though Apple chose not to include features that its competitors use to command a premium position, including:

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Apple’s iCloud And Siri Herald A Shift To Personal Cloud And Voice Interfaces

Frank Gillett

The name of Apple’s event today “Let’s Talk iPhone” indicates where much of the news focus is — on the new iPhone. But that focus distracts vendor strategists from understanding the deeper implications of Apple’s advances in online services and user experience.

Apple’s iCloud is an important new software platform and service that will integrate Apple’s customer experiences across their iPhone, iPad, iPod Touch, and Mac products. This first version creates a personal cloud experience of the individual’s work, personal, and purchased content being seamlessly available across all their Apple products, in contrast to the fragmented experience of Google, Microsoft, and Amazon. Beyond music plus contacts, calendar, and email, Apple is supporting iCloud push in iMessage, Safari’s Read It Later feature, and push distribution of photos. Be sure to watch Apple’s iCloud concept video — that really conveys the personal cloud idea.

The Siri feature is the beginning of a new user experience built around context that will eventually create a much more personal, intimate experience for using all of Apple’s mobile and Mac products. Both of these offerings will have enduring impact beyond the latest model of the iPhone. Though only supported today on the iPhone 4S, I believe it is the beginning of a new form of interacting with all mobile devices and PCs. Voice control and input have not been widely used despite long-standing offerings from Nuance and Microsoft’s Tellme, though they do have strong adoption in specific segments. Apple’s integration of the user’s context will make the experience compatible with mainstream users.

What Steve Jobs' Resignation Means For Product Strategists

JP Gownder

First off, let me say this: I hope that Steve Jobs' health improves, and that he comes out of whatever challenges he's going through in the best of health. He's an amazing, visionary leader of a dynamic company -- and he's also a person with a family. Let's all wish him well.

While famously a CEO, Steve Jobs is also, it should be known, a product strategist par excellence. He's clearly been involved, in a deep way, in the development of Apple's product ideas, product designs, business models, go-to-market strategies, and responses to competition. These are the job responsibilities of product strategists. In his (and Apple's) case, product strategy has risen to the very top of the organization.

Product strategists of two different flavors are wondering how they might be affected by his resignation as CEO (and concomitant request to become chairman):

  • Product strategists who compete with Apple. Product strategists at companies like Microsoft, Google, Samsung, HP, Dell, HTC, and similar firms wonder if Steve Jobs' change in role might benefit them. They actually shouldn't wonder: His departure from the CEO spot won't benefit them -- not for a very long time, at least. Apple's product development road map stretches into multiple years ahead and has been shaped both by Jobs and by the organization he built. Jobs' departure won't affect Apple's product portfolio, quality, or competitiveness for a long time -- if ever.
     
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What Does Google's Acquisition Of Motorola Mobility Mean To I&O Professionals?

Christian Kane

Google sent shock waves through the mobile world this morning as it announced a planned acquisition of Motorola Mobility for $12.5 billion in cash. The initial commentary has largely focused around Motorola’s patent portfolio, how this will affect the other Android manufacturers, and what Google will do with the rest of Moto’s hardware business which my colleague John McCarthy summed up nicely in his blog post.

So what kind of an impact does this have on infrastructure and operations (I&O) professionals? For the most part, not much of one.  I&O professionals are working to make their organizations platform-agnostic by deploying mobile device management (MDM) solutions. For them, Android is only one in an increasingly crowded space of platforms including iOS, Blackberry, and Windows 7 Mobile. 

Still, there is one interesting implication in this deal that I&O pros should take note of — Google gets 3LM. Back in February Motorola Mobility acquired 3LM, a startup including former Google employees who worked on Android, which specializes in enterprise security and management software. Rumors had already been flying that some of the 3LM functionality like storage encryption and anti-malware would be included in the next version of Android (Ice Cream Sandwich). With 3LM now a part of Google, firms might finally management and security capabilities I&O and security pros have been asking for in Android.

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What Amazon Should Do With Its Kindle iPad App

James McQuivey

 

This week, the iPad app world is frantically sorting through some recent changes in its environment. Last Monday, Apple quietly altered its app approval policies in a way that will make publishers much happier. Specifically, Apple has relaxed control over whether apps can access content paid for outside of the App Store’s purchase APIs. The company has also allowed publishers to price however they want, both outside and inside of the app.

In the same week, FT.com released a subscription-based HTML5 web app intended for iPad users that bypasses Apple entirely, giving the publisher its own path to market that does not depend on or enrich Apple directly. The coincidence of these two events is not lost on most of us industry observers and is the topic of a Forrester report issued by my colleague Nick Thomas last Friday. In it, Nick explains why the FT’s move is probably the first of many such moves by the most recognized publishers, even with Apple’s newly announced policy reversal.

But while publishers figure out their next steps for their content apps, there’s one app that no one is talking about but I believe everyone should have their eye on. It’s the Amazon Kindle app. This app violates even Apple’s revised policies and will soon face a day of reckoning when Apple's June 30th deadline for compliance comes up. 

I don’t claim to know Amazon's plans, but I will claim to tell Amazon what it should do:

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