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April 2008

Digital Photo Frames With A Purpose

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Connected photo frames are one of the areas I am watching and evaluating very closely these days. After speaking with a number of companies that are leading some innovative efforts around connected photo frames I am convinced that the single purpose connected photo frames will be a small part of the connected home ecosystem. I say that because once you put a simple single purpose photo frame in a location you start thinking what else can I do with the frame.

Take this new device from GE that is also a landline phone with photo caller ID. This is a great example of a photo frame that adds value to another device in the home. Pandigital also makes one specifically for the kitchen that is a photo frame/TV but is also tied to the internet for recipe's. This is a display with a dual purpose but it is also specific to the room it is in, the kitchen, and adds value to what goes on in that room.

However it is not device that does everything. I feel that if a photo frame is sold that does to much it may not be successful. But if there is specific use cases that consumers can relate to and its functionality is simple then I feel they will be successful. The challenge for makers of these frames to move beyond general purpose frames and into more specific frames. This means they must design features and services that assume these displays will be used in a specific room for a specific purpose.

This is not the way OEM's tend to think however I feel it is a critical mental step if anyone wants to be successful in the future consumer connected digital ecosystem.

From analog to digital = From linear to nonlinear experiences

In many of our corporate presentations to our clients we describe how we believe we are in the middle of this journey from analog to digital. We explain how the first block of this 50 yr journey was bringing digital technologies to the enterprise. Then we explain how the next 25 yrs will be the journey to bring digital technologies to the masses. I feel as though a more fundamental observation needs to be made about this transition so that we can understand the impacts of digital technology in the future and the value that it will bring to the masses.

The observation in which I am referring to is the fact then when a digital technology presents itself in the market we always move from a linear experience to a nonlinear experience. Meaning something that was experienced in one way may now be experienced in many different ways.

In the business realm the entrance of digital technologies directly increased efficiency and productivity. This was observed early on with the first application on the personal computer assisting in moving away from paper based solutions in the workforce (linear) to digital forms of databases, communication, accounting, etc (nonlinear). I recall my first job in 1997 at Cypress Semiconductor was to completely overhaul the system of document control which was all paper based and convert it to a digital system all through the corporate Intranet. This move from linear to nonlinear experiences or processes greatly impacted and will continue to impact the enterprise of tomorrow.

In the consumer realm we have seen only a peek at what the move to digital will bring. Tivo was a good first example. Before Tivo television could only be viewed at a certain time, on a certain day, in a certain place. Unless of course you were an expert with the VCR at which point you inconveniently and many times unsuccessfully, in an analog way, time and possibly place shifted the one show you recorded. Or you could be a complete geek and have two VCR's in order to capture multiple shows. None the less this was a cumbersome process. Then Tivo entered the picture and changed the model of what was the only way to experience TV to a whole new experience of possibilities and new ways to consume television content.

We are also only beginning to see the digital shift and its impact on communication with our current cell phones. We believe we are on the verge of a mobile/computing revolution that will impact greatly many linear experiences consumer have in the world and create new nonlinear possibilities.

Suffice it to say we believe that we are at a inflection point that we will look back on in the many years ahead. Our observations will continue to amaze us at the amount of impact digital technologies had on the many aspects of our life's that we never knew existed.

Paradox of Choice

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I wanted to highlight a book I have been reading called the Paradox of Choice. This book has a lot to do with consumer psychology, something I have been studying a lot lately.

The premise of the book is about how too many choices, or really to many complicated choices, actually dis-satisfy consumers instead of actually satisfy them.

I will be putting out a Brief of this book to all our clients highlighting some important things as it relates to consumer choice and how consumers make decisions about products. So if you are a paying client of ours you will get it soon. If not and you are interested feel free to e-mail me.

Almost a year and Apple still the champ

I was just observing post CTIA that it has almost been a year since the iPhone release and I still haven't seen any device that is better then the iPhone. Apple needs to get a lot of credit for being SO far ahead of the curve. I feel like this is in part due to the mobile industry first and foremost underestimating Apple and second because for quite some time there has been a lack of innovation in the mobile industry.

I recall having some conversations with friends/colleagues of mine who are close to the wireless industry. They affirmed my observation that the operators underestimated Apple. They felt for sure the iPhone would not be as revolutionary as it turned out to be. Suffice it to say when the iPhone was released mass panic hit the other operators who were in instant search of a device that could compete.

Here we are almost a year later and still nothing comes close to the iPhone experience. Now in a few month's Apple will release its version 2 of the software and potentially a 3G iPhone. I have been privileged to, under NDA, see some of the upcoming devices and feel that toward the end of the 08 year we may see some things that offer equally compelling mobile experiences.

The biggest challenge however is that Apple does not stand still and has established itself as one of, if not THE, most innovative consumer products company in the market.