Technology Trends & Social Developments (How Do They Impact Consumer Behavior?)

Technology Trends &
Social Developments
How Do They Impact Consumer Behavior?
November 2014
TechTrends-Presentation-11052014-Distribution

2
Introduction
METHODOLOGY
1. Continuous monitoring of a carefully selected and
constantly refined and updated list of sources, including:
• Technology Blogs
• Scientific & Business Magazines
• Consumer Psychographic Surveys
• Business Leaders’ Interviews
• Seminars, Conferences & Tech Meetups.
2. Deep and exhaustive analysis of all sources to connect
the dots between seemingly disparate developments in
search for emerging trends.
THIS DOCUMENT’S OBJECTIVE
Lynx Strategy maintains a long list of current
and emerging trends.
The following document represents a small
selection of trends of broader interest. It is
intended to serve as a demonstration of Lynx
Insight’s research and analysis capabilities.
LEGAL DISCLAIMER
All views and ideas presented in this document
represent Lynx Strategy analysts’ opinions.
No information presented here can be copied
or reproduced without explicit permission from
Lynx Strategy. For more information, contact
Emil Mladenov (Emil@Lynx.Consulting).

3
Featured Trends
The Quantified Self1
Mindfulness2
The Physical-Digital Merger3
Piecemeal Consumption4

4
The Quantified Self Trend: Definition
A true MEGATREND currently shaping consumers’ behavior…
Smart Device
Miniaturization
Big Data
Proliferation
Collaborative
Consumption
Monitor
Self
Improve
Self
Share
Externally
Algorithm
Improvements
Social Bragging
Rights

5
Examples of Quantified Self Products
Consumers have been quantifying themselves via many different products in
the past few years.
The Mainstream Products…
And the More Obscure Ones.

6
The Less Known Side of Quantification
Self-Quantification is more than wearables and connected devices.
Millions of consumers across the world have been signing up for the mobile
apps and web services of fast-growing BRAIN FITNESS companies, such as
Lumosity, Rosetta Stone’s Fit Brains, Elevate, and CogniFit.
Emil Mladenov
Emil

7
An Extreme Case of Self-Quant Mania
Extreme addicts to self-quantification have started tracking every single
aspect of their lives, sharing all this information in real-time on the web.
ANAND SHARMA Self-Quantifying Since March 2014
It took Anand…
→ 104 days
→ Traveling across 60 cities in 9 countries
→ Eating 14 burritos
…to create his personal tracking site, called APRIL ZERO.
Information Anand tracks and publicly reports
on April Zero:
→ Steps walked every day
→ Latest runs with speed, distance, map
→ Rock climbing
→ Heart rates
→ Weight
→ Body fat %
→ Blood levels
→ Github commits
→ Photos on Instagram
→ Tweets
Sources: Sarah Buhr, “This Guy Tracks Everything About Himself And Puts It Up Online For Everyone To See,“ TechCrunch (Aug. 7, 2014); @AprilZero Twitter
Account; www.AprilZero.com (visited Oct. 24, 2014).

8
Current Status & Future Direction
The Quantified Self trend has gained sufficient traction to be entering a mature
phase.
Increased adoption in the next
24-48 months.
Early Adopters
Late Majority
Early Majority
Maturity leads to focus on more
practical use cases.
CHRISTIAN KLEINEIDAM
(A Self-Quant from Berlin)
→ Reduced lung function
due to a 2002 surgery.
→ Physiotherapy & inhaler
didn’t work.
→ Began quantifying himself taking daily
measurements of the wetness in his mouth,
his weight, his waist, etc.
→ This allowed him to find relaxation exercises
that improved his lung function by 30%.
Sources: Nic Fleming, “Know Thyself: The Quantified Self Devotees Who Live by Numbers,” The Guardian (December 2, 2011); Christian Kleineidam, “Tracking
and Improving my Lung Function, “ Slideshare.Net (December 2, 2011); Birger Menke, “Die Digitalisierung des Ich,” Spiegel Online (October 8, 2011).

9
Quantified Self in Social Sciences
Final words on the Quantified Self trend:
Data produced as part of this megatrend is increasingly used to study group
activities and other social phenomena.
Sources: Gregory Ferenstein, “How Today’s Earthquake Woke up Half the Bay Area, in One Chart.“ VentureBeat (August 24, 2014); Eugene Mandel, “How The
Napa Earthquake Affected Bay Area Sleepers,” The Jawbone Blog (August 25, 2014).
Case-In-Point:
August 24, 2014 Bay Area Earthquake
Jawbone UP
wearers’ data
reveals how the
strong earthquake
affected people’s
sleep that night.
For example, 93%
of the UP wearers
within 15 miles of
the epicenter
woke up abruptly
at 3:20 AM –
when the quake
struck.
20
40
60
80
100
9:00pm 10:40pm 12:20am 2:00am 3:40am 5:20am 7:00am 8:40am
%JawboneUPWearersAwake*
3:20 AM: First Tremor
* Jawbone UP wearers within 25 miles of earthquake’s epicenter.

10
Featured Trends
Mindfulness2

11
The Mindfulness Trend: Definition
Mindfulness has been gaining traction for several years among followers of
holistic life practices, including yoga and meditation.
Original Definition
Mindfulness means maintaining a moment-by-
moment awareness of our thoughts, feelings,
bodily sensations, and surrounding
environment.
Sources: The Greater Good site at University of Berkeley (http://greatergood.Berkeley.edu) – last visited October 26, 2014; Carolyn Gregoire, “Why 2014 Will Be
the Year of Mindful Living,” Huffington Post (January 2, 2014).
Revised Definition*
Mindfulness means focusing on oneself or
interaction with surrounding humans, away
from the internet or connected devices.
Among many
technology focused
consumers
* Revised definition created by Emil Mladenov.

12
Real-Life Examples of the Rising Trend
Many consumers have become aware of their “captivity” to computers, smart
phones, tablets, and other connected devices.
Consumer activists have started expressing public concern via street art.
Poster on the fence of the
Brooklyn Botanical Garden:
“Unplug: Kids today typically
spend as many as 53 hours a
week in front of screens.
Getting outside into green spaces
increases activity and healthy
development.”
Anti-Technology Graffiti on
West 27th Street in Chelsea, NYC:
Photos Source: All photos taken by Emil Mladenov. No reproduction allowed without Emil Mladenov’s explicit permission.
Maps Source: MapBox.com.

13
Formal Efforts to Raise Awareness
Sources: Sarah Schmid, “Tech Entrepreneur on a Mission to Get People to Unplug and Socialize,” Xconomy (August 28, 2014); Jamie McGee, “How One
Vanderbilt Grad Is Working to End Digital Addiction,” Tennessean (September 28, 2014).
NYC tech entrepreneur Brian Hiss recently took 12 weeks off to tour 20 tech
hubs in a yellow VW bus as part of his Experience People campaign.
BRIAN HISS
→ Serial Entrepreneur
→ Co-Founder of Eats.com
(Acquired by Delivery.com)
→ Currently CEO of Dooble
“Cut that 40 minutes [a day spent
on Facebook] in half and start
planning your own adventures. [We]
need to embrace boredom again in
this country. One thing technology
can’t replace is human touch.”

14
Products Targeting Mindfulness
Sources: David Hochman, Mindfulness: Getting Its Share of Attention,“ New York Times (November 1, 2013); Wisdom 2.0 Web Site; Wisdom 2.0 2015 Micro Site
on Eventbrite.com; Sarah Perez, “A New App Called Moment Shows You How Addicted You Are To Your iPhone,” TechCrunch (June 27, 2014); Distimo.
From offsite retreats to mobile apps, entrepreneurs at the forefront of this
trend are starting to offer various products & services targeting Mindfulness.
WISDOM 2.0 4-Day Retreat
→ Coaching on living “with greater wisdom,
purpose, and meaning, while using
technology in ways that create a more open
and healthy culture.”
→ Retreat Ticket: $399 (Eventbrite)
→ $4.99 on iTunes.
→ 22,000+ downloads in first month.
MOMENT APP by Kevin Holesh
→ Tracks how much user uses his/her iPhone or iPad automatically.
→ Tracks how many times user picks up his/her iPhone each day.
→ Provides daily breakdowns to see when users are on their devices.

15
Short-Lived Fad or Real Trend?
Source: Katie Lepi, “Why You Should Unplug,” Edudemic (April 16, 2014).
Due to the origins of the term and its recent popularity with celebrities, many
people may doubt if Mindfulness is solving a real problem.
However, consumers’ addiction with connected devices is real. ⇒ Mindfulness
is most likely a valid trend.
Britons say using
their connected
device(s) in bed
affects the
amount of sex
they have.
15%60%
People admit to
spend more time
with their
technology than
they do with their
spouse.
81%
People are willing
to interrupt a
conversation or a
meal to check
their connected
device.
46%
Britons admit
browsing online
using their
connected device
while in bed and
still not sleeping.

16
Short-Lived Fad or Real Trend? /Continued/
Source: User by the Alias of Babycakes Romero, “The Death of Conversation,” Bored Panda (October 13, 2014).
People have “succumbed” to their connected devices.
Big Open Question: Would they recognize the need to carve time out of their
“connected state” and participate in real conversations with other people?

17
Current State & Future Direction
Source: “The U.S. Mobile App Report,” ComScore (August 2014); Kathrin Zickuhr, “In a Digital Age, Parents Value Printed Books for Their Kids,” Pew Research
Center (May 28, 2013).
The “Quantified Self” and “Mindfulness” trends contradict each other to a
certain extent.
It will be interesting to see how these two trends pan out in the mainstream
consumer world. In the meantime…
6.5 out of 10
Smartphone users in the U.S. do not download
any apps on their phones in a typical month.
3-to-1
Ratio of adults in the U.S. who have read a paper
book as opposed to an ebook.
9-to-1
Ratio of U.S. parents who prefer paper books to
ebooks when reading to their children.

18
Revelations from the Tech World
Source: Nick Bilton, “Steve Jobs Was a Low-Tech Parent,” New York Times (September 10, 2014).
Photos Sources: AllAboutSteveJobs.com; USA Today; Ted.com.
An even more convincing revelation about the potential strength of the
Mindfulness trend comes from renowned tech leaders’ quotes on parenting.
STEVE JOBS Interview with the New York Times:
NY Times: “Your kids must love the iPad?”
Steve Jobs: “They haven’t used it. We limit how
much technology our kids use at home.”
WALTER ISAACSON Author of Steve Jobs Best-Selling Biography:
“Every evening Steve made a point of having
dinner at the big long table in their kitchen,
discussing books and history and a variety of
things. No one ever pulled out an iPad or a
computer. The kids did not seem addicted at all
to devices.”
CHRIS ANDERSON CEO of 3D Robotics:
“This is rule No.1: There are
no screens in the bedroom.
Period. Ever.”
EVAN WILLIAMS Founder of Twitter:
“In lieu of iPads, our young
boys have hundreds of
physical books that they can
pick up and read anytime.”

19
Featured Trends
Mindfulness2

20
The Physical-Digital Merger: Definition
Computer miniaturization and consumers’ rising tech savvy have created the
perfect medium for merging the physical & digital worlds.
The INTERNET OF THINGS has arrived…

21
Physical-Digital Consumption
This trend goes well beyond the notion of connected home appliances that
interact seamlessly among each other and with your smart phone or tablet.
The PHYSICAL-DIGITAL MERGER affects the way you go about many of your
daily routines…
Use the PayPal app
to pre-order a
sandwich at your
local cafe
Scan a QR code on the wall
of the metro in Seoul, Korea
to pre-order groceries from
Tesco Korea.
Pay for your train fare at the London
Underground by tapping your Barclaycard Bpay
wristband, linked to a Visa or MasterCard
of your choice.
Sources: Jennifer Bergen, “Korea’s Tesco Reinvents Grocery Shopping with QR-Code ‘Stores,’” Geek.com (June 28, 2011); Steve McCaskill, “Payment Providers
Have High Hopes For Contactless Tube,” Tech Week Europe (September 16, 2014).

22
Physical-Digital Play
One of the most interesting and lucrative implementations of this trend is in
the playground.
The PHYSICAL-DIGITAL MERGER affects they way our kids (and sometimes
we ourselves) play…

23
Physical-Digital Learning
Experiential learning has long been considered the best form of learning.
Now, the PHYSICAL-DIGITAL MERGER allows us to do this in inexpensive and
fun ways…
Important Notes: TinkerBots is still in beta (taking pre-orders). Sifteo got acquired by 3D Robotics in July 2014.
Video Sources: Vimeo. Product demo videos accessed via Vimeo on Nov. 5, 2014.
http://vimeo.com/91565795 http://vimeo.com/45276780 http://vimeo.com/53994561

24
Important Driver Behind Trend
The proliferation of apps and software has brought the price for digital content
virtually to zero.
Merging digital smarts with tangible physical products allows companies to
monetize on a scale that would have been impossible in a digital-only context.
→ FREE App in iTunes
→ $2.99 Content Packs (IAP)
VS.
→ $29.95 “Smart Plushie” MSRP
→ $22.96 Video Game Only (DVD)
VS.
→ $29.99-$74.99 Various Physical Toys & Video Game Bundles
→ $14.96 3-Toy Packs
→ 7.6 Average # Toys Owned by Skylanders Fans in the U.S.
Sources: Ubooly.com; Skylanders.com; Amazon.com, iTunes; Michael Cai’s (SVP Research @ Interpret) Presentation at February 2014 Digital Kids Conference
in NYC.

25
The Quantified Self and Mindfulness trends both contribute to the further
adoption of blended physical-digital environments.
On the one hand, we relentlessly search
for more ways to be immersed in data…
On the other hand, we want more time
to interact with our friends & family.
Would a push to merge the physical &
digital worlds help achieve both goals?

26
Featured Trends
Mindfulness2

27
Piecemeal Consumption: Definition
The last decade has seen a significant push toward volume bundling and all-
inclusive subscriptions.
The CURRENT MODEL of consumption…
…But what if you don’t want to EAT ALL YOU CAN?
→ What if you want to use a service just ONCE?
→ What if you want to buy just ONE ITEM from a bundle / pack?
Netflix Subscription EA Access Subscription

28
Early Iterations on this Idea: Take 1
The Piecemeal Consumption trend is still at a very nascent phase.
Careful examination of new business models reveals some early proofs of
concept…
Sources: “New Supermarket Shuns Packaging,” Zimbio.com (Accessed October 27, 2014); Lisa Winter, “Packaging-Free Supermarket Coming to Germany,”
IFLScience (July 25, 2014).
→ New supermarket opened on
September 13, 2014 in Berlin.
→ Offers 350 types of food and
household necessities.
→ Everything offered without
packaging, even shampoo,
vinegar and olive oil.
→ Customers use their own
containers to get only as
much as they need.

29
Piecemeal Consumption and traditional subscriptions are not necessarily
exclusive of each other.
The same company can offer both options to capture a greater and more
diverse customer base…
Source: Autolib.eu (Accessed October 27, 2014).
→ Car-sharing service in Paris
renting EV cars per the hour.
→ Several duration-based
subscriptions as well as a
daily pass.
→ Customers choose plan
depending on their needs.
→ Customers without
subscription can sign on the
spot using dedicated kiosks.

30
iTunes was perhaps the early harbinger of this trend – it broke the music
industry’s “sacred” album, allowing customers to buy individual songs.
A Dutch-based startup is now trying to do the same to the newspaper /
magazine industry…
Sources: Robert Levine, “Blendle Looks to Expand Its Extremely Metered Paywall,“ BloombergBusinessweek (October 27, 2014); Jason Abbruzzese, “New York
Times Invests in Dutch 'iTunes for Journalism‘ Startup,” Mashable (October 27, 2014).
→ Netherlands-based startup launched on
April 28th 2014.
→ €3 M Series A funding from New York
Times & Axel Springer Digital Ventures.
→ Users can buy articles from paywall sites
without paying for full subscriptions.
→ Articles cost €0.10 to €0.30.
→ 130K registered users in first 6 months.

31
The future of the Piecemeal Consumption trend depends on how willing
companies are to adapt their systems to that model.
Several reasons why companies may shy away from this model…
Bookings
Uncertainty:
Piecemeal revenue is
less reliable than
subscriptions.
Diminished Brand
Exposure:
No packaging ⇒ no
clear branding.
Operational
Nightmare:
Unregistered users ⇒
harder to track &
market to.
Eventually, the real inflection point in this trend may come when a new comer
tries to disrupt the status quo.
A Startup Fighting an Incumbent
OR
A Mobile Payments Player Offering Unique Value-
Added Services to Customers.

32
Scenario Planning
One potential scenario for
consumers’ behavior in early 2016…
…based on the 4 tech trends & social
developments discussed in this
document.

33
A Day in Jason’s Life: ~January 2016
JASON
28-Years-Old
Brooklyn, NY
Works @ Clean Tech Startup
7:03 AM: Jason’s smartwatch gently vibrates to wake him up within
the 15 minute interval that he has preset. 7:03 was determined the
best time to wake up because Jason’s Withings Aura mattress
sensor has alerted his smartwatch that he has reached the natural
end of a dream cycle.
7:20 AM: Jason’s smart toothpaste gauges the levels of wetness in
his mouth and checks for excess mucus that may indicate a cold.
Meanwhile, Jason steps momentarily on his Withings smart body
analyzer to measure his weight, body composition and heart rate.
All vitals are seamlessly synced with Jason’s OneNote account.
7:30 AM: The shower in the bathroom has warmed the water to
Jason’s preferred temperature. Time for Jason to take a shower.
7:45 AM: Jason is sipping a cup of freshly brewed cappuccino
while his smart coffee maker is sending a note to his Shopping List
in OneNote, reminding him to buy more of his favorite blend of java.
8:15 AM: Jason taps his smartwatch on the turnstile at Grand Army
Plaza Subway station and takes the 2 train into Manhattan.

34
A Day in Jason’s Life /Continued/
JASON
28-Years-Old
Brooklyn, NY
8:45 AM: Already at the office, Jason scans through his news
aggregation app and selects the 5 Clean Tech articles he wants to
read. 2 of these articles come from a site that has a paywall. Jason
never really reads this site, so he opts to purchase the two articles
directly, instead of getting a monthly subscription to the news site.
10:00 AM: Jason finds one of the articles very interesting. He
invites his coworkers to join him at the spanking new Microsoft
PixelSense touch table so they can read and make annotations
together.
11:30 AM: Jason’s Mindfulness app reminds him it’s time to
disconnect from all devices. He quickly taps on the PayPal app to
pre-order his favorite bento box at the Japanese hole-in-the-wall
place down the street, then sets his proximity status to “Open for
Conversations” and turns his phone into “Mindfulness” profile.
11:45 AM: The girl from the car-sharing company on the 4th floor
runs into him at the Japanese place. Her phone’s beacon alerts her
that Jason is “Open for Conversations.” She asks if he’d like to join
her and her friends at a quick 15-minute meditation session after
lunch.

35
JASON
28-Years-Old
Brooklyn, NY
1:00 PM: Jason feels relaxed from his 1.5 hours free of any devices.
He quickly checks his phone for important messages. He notices a
birthday reminder – his 5-year-old niece Kate is having a birthday
next week.
1:15 PM: After some quick research, Jason decides to buy Kate a
really nice set of interactive blocks. Kate can use these blocks to
learn how to spell basic words, as well as play early-childhood
brain training games.
1:30 PM: Jason’s boss asks him if he can help her Photoshop a few
images for their upcoming digital ads. Jason starts his corporate
mobile payments app and selects to pre-purchase 180 minutes’
worth of access to Adobe’s Creative Cloud.
4:30 PM: Jason is done with his Photoshop project and is quickly
wrapping up his day at work. His workstation’s monitor alerts his
OneNote app that he has been staring at the screen for too long
without any interruption. Jason’s smartwatch suggests he takes a
break from his computer. He walks around the floor to get the latest
office gossip.

36
JASON
28-Years-Old
Brooklyn, NY
5:30 PM: As Jason is leaving the office, his smartwatch reminds
him to pass by the near-by grocery store. His fridge has analyzed
his Weekly Recipes List in OneNote and has determined he needs
to buy more tomatoes, chorizo and chickpeas for that Spanish tapa
he has earmarked for tonight. He also sees the coffee reminder
from this morning.
5:45 PM: Jason picks up a few empty containers at the local
grocery store and walks down the aisles to find the coffee section.
He uses the gravity dispenser to fill one of the containers with 10
oz. of Cup of Joe’s coffee blend. He then walks by the meat section
where he instructs the cutting machine to apportion him 15 thin
slices of chorizo. He picks two tomatoes from the fresh produce
section and pre-pays for all purchases using his PayPal app. The
cashier’s beacon confirms his payment and the cashier waves at
him with a smile as he exits the store.
6:30 PM: Jason is outside his apartment. His smart hub at home
detects his smartwatch’s beacon and unlocks his front door, turns
the lights in his living room to his favorite hue of pale blue, loads
his favorite Of Monsters and Men album, and sets his laptop, phone
and tablet into “Mindfulness” profile.

37
JASON
28-Years-Old
Brooklyn, NY
8:30 PM: Jason can’t stop reading that fast paced Murakami noire
thriller he picked up at the neighborhood library the other day. He
keeps thumbing through the worn-out pages of the thick book. He
wonders if readers were that excited about this book when it was
first published back in 1985 as he is at the moment.
9:00 PM: Jason calls his mother Anne to let her know about the gift
he has bought for his niece Kate’s upcoming birthday. Anne
compliments him on buying Kate an educational game. Anne is a
bit worried about Jason’s daily routine. She has seen Jason’s daily
vitals feed from OneNote and is concerned he has gained a pound
since last month. She reminds him to go to the gym.
10:00 PM: It’s late for the gym, but Jason can at least do a bit of
mental exercise. He starts a new Logic and Concentration routine
on his tablet, using the 30 minutes of Fit Brains’ access that his
brother Jonathan gave him last week.
11:00 PM: Jason’s smartwatch reminds him that the period
between 11:00 and 11:15 PM has been the best time to go to bed,
according to his previous 12-months’ history of sleeping patterns.
Jason turns all lamps off using his smart phone, sets his air
conditioner to “Night” profile, and goes to bed.

+1 (844) ASK-LYNX Emil@Lynx.Consulting Lynx.Consulting
Emil Mladenov
Principal

Technology Trends & Social Developments (How Do They Impact Consumer Behavior?)

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