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Constantin Măgdălina, Emerging Trends and Technologies Expert

Point of view

18 January 2017

Digital trends in 2017

Author: Constantin Măgdălina, Emerging Trends & Tehnologies Expert Digitalization causes major changes in each industry, affecting our personal and professional lives. As this is a

phenomenon of global magnitude with a major impact on companies and consumers alike, herewith are explained the

trends of digitalization in 2017.

Trend 1 - User experience is paramount

The large number of products and services will make the user to prioritize based on two criteria: the consumer experience

andthe allocated time. 74% of global retailers believe that improving overall in store experience will be decisive, given that more

than half of sales are generated online: mobile, social networks and e-commerce. Using these channels acquisition highlights the

importance of digitalization for the second criterion: the allocated time. On a global scale, 50% of consumers want products and

services that save the shopping time. Consumerslook for tools and services to optimize personal time or minimize the time

involved with any acquisition and / or activity.

Trend 2 - Big Data and Small Data

In 2016 the volume of data grew considerably due mainly to cloud services. This trend will continue in 2017 and will be extended

through projects such Machine Learning, Cognitive Computing and Predictive Analytics. The job market will surface positions of

Chief Data Officer / Architect which will become more and more required and clearly structured. Data streaming, real-time plans

and increasingly sophisticated data transfer will redefine Big Data in categories such as fast data and actionable data. But in

2017 the volume of data will count more than the relevant tools.

Meanwhile, Small Data appears as a complementary trend to Big Data and will be capitalized on increasingly. For example Small

Data allows, via a smart tag, to identify the location and quantity of the existing products in stock, their expiration date, if the

packaging has been opened and if the temperature is optimal for keeping in deposit. This information is integrated into a

database and becomes the raw material for Big Data, in order to identify the root cause ofproducts’ expiration or damage (if

applicable).

Trend 3 - Internet of things

Global e-commerce market will record an annualgrowth rate of 17% until 2018, while trade in physical stores will increase by 6%

per year. Traditional commerce has the challenge of integrating technology into the shopping experience they offer. Internet of

things comes as a lifesaving solution to this challenge. With the progress in displaying synchronized information on various

devices - from television sets, laptops and tablets, to espresso and washing machines displays - that connect to the Internet

automatically, the number of contact points between a company and the end-consumers is growing steadily. For example, with

the help of the espresso machine connected to the Internet in your favorite café, you will be able to order coffee on-the-go from

the car, 5km away from the coffeeshop, using a custom interface and digital access. Thus, by deleveraging, the processes of

goods and services purchasing will become shorter and cheaper.

Trend 4 –Augmented reality (AR) and virtual reality (VR)

Augmented Reality (AR) enjoyed a remarkable hype in 2016, particularly due to the Pokemon Go game. But AR’s functionality

goes beyond just gaming and provides support for various forms of digital information transmission - from glasses that provide

traffic information relevant to a cyclist to virtually redecorating the entire house without a drop of paint. In 2017, we can expect to

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Constantin Măgdălina, Emerging Trends and Technologies Expert

use augmented reality to read our emails, to post on Facebook or find the best route to drive through a crowded place. All this

content we can have right before our eyes using Google Glasses.

Virtual reality (VR) demonstrated its commercial viability in 2016, through the specific products that were launched such as: HTC

Vive, Oculus Rift VR or PlayStation. In terms of media hype cycle, which draws technology’s maturity levels, VR is very high in

consumer expectations. The hype exceeds the reality and quality comes second to novelty. At this stage, for consumers virtual

reality means games, entertainment and video, and not so much functional applications or social media interface. Most likely,

virtual mobile phone-based VR platforms will reinforce the use of virtual reality in 2017 thanks to easy use and low cost.

Trend 5 –Artificial intelligence

Forthe consumer time has become a value, while for the companies it has become a commodity they sell and for which the

consumer is willing to pay. Thus, fast access to goods and services of interest to consumers becomes a source of competitive

advantage for companies. We meet quite often the phrase "save time with us." In other words you buy more time from us.

Artificial intelligence leads consumer experience to another level and saves time. For example, through voice command a tourist

can communicate with computer terminals and request information on the weather conditions atdestination. Such computer

terminals, capable of understanding and responding to costumers requests,are called chatbots and can be found in some

airports. They are the evidence of progress and practical usage of artificial intelligence that will continue to manifest in 2017.

Bringing it all together

The pace of technology development is so fast that employees can’t keep up. Reformatting of the technological enviroment leads

to certain jobsdisappearance and the set up of new ones, attractschallenges and opportunities alike. According to the World

Economic Forum, 10 years from now, 65% of children in primary school will have jobs that do not exist today. The same source

states that by 2025, 30% of financial audits of large companies will be carried out using Artificial Intelligence, taxes will be

collected by Blockchain, and in some countries the census will be done with the help of Big Data.

The next stage of Internet development will further strengthen the link between reality and the virtual environment. Internet will be

used through more devices and sensors, and will include completely new functions and features. Therefore, the type of activities,

the used tools, the response times and the working environment will be decisively influenced by the Internet and IT infrastructure

and communications. The world as we know it will no longer exist in a few years, and the "silent" revolution we are witnessing

has only one name - digitalization.

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About Constantin Măgdălina

Constantin Magdalina has a 8 years working experience, while he performed in multinationals both in Romania and abroad. Constantin owns a Master in

Marketing and Business Communication at the Academy of Economic Studies Bucharest. He is certified Lean Six Sigma and ITIL which provide him a good

understanding of processes and transformations within organizations. The Chartered Institute of Marketing and Hubspot certifications furthered on complemented

his expertise and knowledge in business. In those over 4 years working activity at EY he initiated and conducted studies which analyzed different aspects related

to the business environment in Romania such as the economic growth predictions of companies in 2013-2016, knowledge management, the buying experience

in the age of digital consumers, social media 2013-2015, the utilization of mobile devices in Romania. He is the author of numerous articles on topics related to

innovation, the efficiency of business processes, social media, the consumers’ buying experience in the age of digital, trends and emergent technologies. He is

invited as speaker at numerous events and business conferences.