Earlier this week, CNET wrote about 5 Web Technologies to Watch in 2013. I completely agree with the 4th one listed: High-res images on the Web. Prevalent at CES next week will be what I’m referring to as “HD Everywhere.” We’ve already seen the resolution on mobile phones increase and we are now seeing that spread up the device hierarchy. Tablets and laptops with higher resolution screens will be on display and of course televisions pushing to Ultra HD 4K resolution – twice the resolution of 1080P HD – will be one of the big stories for the 2013 CES.  Naturally, once these screens become capable of rendering high resolution images users will increasingly want access to high resolution images.  While I don’t think we see a big move to high resolution web images in 2013, this move will naturally follow a growing installed base of high resolution screens.

I’d like to add one additional thought.  The Web is big.  It is blotted.  Most of us can remember searching for things on the Web and receiving back 21 search results. Today the same search returns 21 million search results. Search results are being overrun by what I call Web Debris – information that was once relevant and accurate but now simply floats across the Web.  Web Debris is hindering productivity and efficiency.  Rarely do I search for something today without applying time parameters (last day, last month, last year).  I think narrowing parameters will eventually become standard search criteria. Today Google and others preemptively guess what I’m trying to search for. I imagine the same approach could be taken with narrowing parameters.

Read IBM’s sixth annual 5 in 5 tech picks here.  I think point two hold tremendous promise:

Recognition systems can pinpoint a face in a crowd. In the future, computer vision might save a life by analyzing patterns to make sense of visuals in the context of big data. In industries as varied as healthcare, retail and agriculture, a system could gather information and detect anomalies specific to the task—such as spotting a tiny area of diseased tissue in an MRI and applying it to the patient’s medical history for faster, more accurate diagnosis and treatment.

An AP story from earlier this week highlights the work Scott Harrison and Charity Water is doing to to install sensors in wells in Africa so water flow can be monitored remotely. With declining sensor prices, expect to see more sensors deployed to monitor charitable work in hard-to-reach places.

Companies like Groupon, Quirky, and Kickstarter are slowly starting to have an impact on design cycles and supply chain efficiency in very interesting (and unexpected) ways. Take Groupon for example.  It is in over 500 markets in 44 countries. Earlier this year Groupon launched Groupon Goods.  Established companies are now using Groupon Goods in a number of ways.  Obviously they are  using it in a Woot!-like fashion to clear out excess inventory and discontinued stock. But they are also using it to test product attributes in a real market-oriented way.  For example, imagine a company is bringing a new product to market.  They’ve got the product in 15 different colors, but only want to ultimately bring four different colors to market.  The company isn’t sure however which colors will sell the best. Enter Groupon Goods.  The company can make a limited run of the new product in all 15 colors. Using Groupon Goods the company can then offer varying subsets of the color choices across several different markets within the 500+ served by Groupon. This live A/B test can then inform the company as to which colors are likely to sell the best.  The company hasn’t relied on focus groups, consumer surveys, or marketing experts.  They’ve tested the question in the “wild” and are basing strategic direction, at least to a degree, on what the market has told them.

In a similar way, companies – even established ones – are using Kickstart to determine if market appetite for a potentially new – but yet unreleased – product.  If pre-orders are strong, the company can continue with their production plans.  However, if pre-orders fail expectations, the company can scrap their plans and reposition scarce resources onto other projects.  Supply chain timelines have shrunk which is enabling companies to use non-traditional approaches to test market appetite for new products or product feature sets.

We’re also seeing how companies like these are influencing the marketplace in other ways. Apple’s recently revised Lightning guidelines comes shortly after heavy publicity surrounding the Pop Charger Kickstarter campaign.

Moving forward, I expect to see an increasing number of companies rely more heavily on non-traditional go-to-market approaches.  Ultimately, these approaches enable companies to rely more acutely on market information and rely less on their own intuition.

I was incredulous asked the other day why I still used Foursquare – as if it was some passing fade and I somehow missed the exit sign.  In fact, I’ve remained a pretty religious user of Foursquare.  According to Vizualistics I check-in about 70 times a month. While I do like seeing the service evolve, the primary reason I continue to use Foursquare is for the digital bread crumbs it allows me to leave. I believe an increasing number of services will rely on our digital footprint as I wrote about yesterday. By creating a digital record of places I’ve been I have hope I’ll be able to provide my future self with strong recommendations for any number of things I might be interested in at that point.

Today I had lunch with a friend whom I haven’t seen in several years.  We met in a part of the city I rarely visit so I wasn’t familiar with the restaurants. Our phone conversation setting up our lunch plans went something like this:

friend: “What are you in the mood for…”

me: “I don’t know, what is there…”

friend: lists several nearby restaurants – none of which I know

me: “umm…I don’t care, I’m fine with anything…”

Upon arriving we settled on one of the restaurants near the intersection where we met.

Upon going into the restaurant, our conversation went something like this:

friend to waiter: “are there any lunch specials…”

waiter points to lunch specials on the menu and then leaves us to make our decision.

friend to me: “want to share a pizza…”

me: “sure…”

friend: “want kind of pizza do you like…”

me: “any kind….lunch special sounds good”

friend: “no, too many meats. What about margarita or perhaps quattro formaggi…”

me: “sure, that sounds fine…”

waiter returns and takes our order.

In reality, you can see that these two decisions – where to eat and what to eat – didn’t take a tremendous amount of coordination.  But it did take some coordination.  More, it monopolized most of the initial conversation with someone I haven’t seen in two years. As we begin to (first) digitize broad swaths of information and (second) intermingle and intertwine these diverse streams of data, I can envision a variety of ways these series of decisions are handled very differently in the future.

Imagine this (not implausible) scenario:

First, my phone has stored locally everywhere I’ve eaten in the last two years or more likely my phone has access to a service or set of services which knows this information.  Three or four years ago information like this wasn’t digitally available. Today, this information is stored across a variety of services.  Foursquare knows where I’ve eaten and where I eat frequently. Facebook might know where I’ve eaten. Yelp might know what I like or Pinterest or Facebook photos or the tips I’ve left on Foursquare or the tweets I’ve sent through Twitter. I’ve left digital breadcrumbs across a number of Internet accessible services and the rate and magnitude of these digital bits of information are only increasing.

The second element of this future scenario requires sharing these diverse (and dispersed) streams of digital data. I believe cross pollination is the proverbial next big thing when it comes to digital data.  We’ve started to capture (personal) information digitally, but we aren’t yet making predictions based what can be derived from looking at these streams collectively as opposed to individually.  We are quickly entering an Age of Algorithms.

Here’s an example of how this might work.  Not only does my phone have access to my personal digital data, but it also sees the digital data of my friend. This also isn’t that far fetched. Since we are connected on Facebook for example, this single service already knows a lot about each of us. Facebook could have recommended one of the nearby restaurants by mapping our profiles against each other and examining the intersection of our profiles while utilizing the GPS coordinates of my phone to identify high probability matches.

The second question – what to eat – could be solved in a similar way.  Imagine our phones have embedded NFC or some comparable technology.  As we enter the restaurant I opt to “share” my information with the restaurant.  The digital streams of data I share will include obvious things like food allergies, but it could also include explicit or implicit eating profiles.  I might share what restaurants I’ve ranked highly in Yelp or in other similar services. I might share my credit card information which knows not only every restaurant I’ve eaten at, but also what I ordered. In the future I might share my grocery store scanner receipts which contain a record of everything I’ve bought at the grocery store. Rather than asking the waiter what he or she would recommend and getting back their personal (and therefore biased) input, I could get a series of computer-generated, probabilistic recommendations based on the analysis of literally thousands of data points. These recommendations could provide options for what I like individually or what multiple people might like to share. In this way, we are increasingly turning over decisions to machines. Or at least, we are allowing machines to influence our decisions.  In this we see how the digital world is going to increasingly influence what happens in the physical world.

After releasing it’s first original series in February, NetFlix is planning to release at least five new original (and proprietary) programs in 2013. This shouldn’t be surprising for many reasons – namely NetFlix is simply following the path of it’s predecessors in the video distribution business. In this we also see that producing and distributing original content is higher up the value chain.

One of Clay Christensen’s great contributions to business analysis was showing that companies across diverse industries will naturally push to move up the value stream.  From steel mills to automobile manufacturers to consumer electronics OEMs, we’ve seen low-cost start-ups slowly (but inevitably) move-up the value chain. With all of these moves, we then see new low-cost start-ups enter the market and begin to make the same trek forward (and upward).

HBO, Showtime, and Starz all began life as distribution platforms for others’ content before eventually moving into original content production. If anything, I’m somewhat surprised that we haven’t seen more cable companies and telcos – also large content and entertainment distributors – push into original content production and distribution. Arguably, their push up the value chain has remained within the confines of services. Cable companies have entered into Internet and phone services while the telcos have pushed into home Internet and paid TV services. Even Dish wants to push into offering cellular service. Coming in 2013, Verizon is launching Redbox Instant which enables both companies to move further up their respective value chains.

Just as HBO, Showtime, or Starz have done, Netflix has grabbed hold of a sizable market. Today Netflix has roughly 25M subscribers – compared to HBO (29M), Showtime (21M), Starz (19M). As the WSJ points out, Netflix believes that can achieve 60-90 million U.S. streaming subscribers. Those figures would suggest adoption of between roughly 50% and 75% of all U.S. households. Those types of figures are possibly achieved because a greater share of households move away from traditional paid TV services and join the ranks of Netflix customers. More likely, these types of subscriber levels will require significant overlap across other paid TV services which I believe suggests we’ll see the share Netflix spends on original content increase steadily in the years to come. For 2013, Netflix expects to spend less than 5% of its $2B annual content budget on original and exclusive programming and moving forward expects to spend between 5%-15% on original content.

 

 

 

For my past holiday predictions and commentary see the following:

Holiday 2012: Part I
Holiday 2012: Part II
Holiday 2012: Part III
Holiday 2012: Part IV
Holiday 2012: Part V
Holiday 2012: Part VI
Holiday 2012: Part VII
Holiday 2012: Part VIII
Holiday 2012: Part IX
Holiday 2012: Part X
Holiday 2012: Part XI – What we Learn from Black Friday EDM Promotions

While we still have CyberMonday before us, the Black Friday weekend is coming to a close.  Most of the promoted items are known.  Here is my rough count of the number of different offers promoted over the weekend for the following tech categories:

For my earlier holiday expectations see the following posts:

Holiday 2012: Part I
Holiday 2012: Part II
Holiday 2012: Part III
Holiday 2012: Part IV
Holiday 2012: Part V
Holiday 2012: Part VI
Holiday 2012: Part VII
Holiday 2012: Part VIII
Holiday 2012: Part IX
Holiday 2012: Part X

We’ve seen Black Friday evolve in several ways in 2012.  As I’ve written about elsewhere, Black Friday has gotten longer in several ways.  First, stores have moved their opening hour forward.  But stores have also expanded their Black Friday promotions in several other ways – many of which have to do with the timing of their promotional releases. As retailers have started previewing their official Black Friday circulars in advance, they’ve had to adjust other elements of their promotional cycle. This year promotions and marketing pieces were especially pronounced.  I think it is instructive to review promotional emails in sequence. here’s a week of analysis: