The possibilities we are familiar with
from the internet - links, search function, personalization and
interaction - are being transferred to physical objects. The
connections between people and things are thus becoming denser,
more specific and taking on a local component: depending on our
interests and needs, diff erent information becomes visible in the
environment. A new dimension of perception is created in which
virtuality and reality are merged. HSDPA, WiBro and WiMAX are
systematically erasing the dividing line between offline and
online. So in the future we are always on and always connected!
Driving force 1: Localisation
Localisation is an essential element
of the Outernet as it establishes the vital link between the
digital data infrastructure and the real world. The ability to
determine where and at what distance we are located in relation to
one another is a prerequisite for many Outernet applications.
Localising by GPS
The Global Positioning System (GPS)
makes it possible to localise people and objects geographically.
Digital cameras and camera phones are increasingly equipped with
GPS, automatically adding the relevant geo-coordinates to photos
and videos.
Triangulation as an alternative to
GPS
Besides GPS, triangulation of GSM
towers or wireless LAN hotspots can also be used to localise mobile
devices. Compared to GSM, localisation by wireless LAN allows far
more accurate positioning in urban areas and particularly in closed
buildings. Wireless LAN hotspots therefore play an important role
in the spreading of the Outernet.
Highly accurate localization with
Galileo
When the EU launches the Galileo
satellite navigation system in 2010 there will be a significant
improvement in localisation accuracy: in the freely available
service people and objects can then be localised to an accuracy of
about four metres, and for fee-paying customers to less than one
metre. Galileo will therefore be a key driver for the Outernet.
CASE: The social travel guide for
mobile phones
The fully customisable social travel
guide "tripwolf" is available as an iPhone application that can
also be used in offline mode. During installation a selection of
city guides is stored directly on to the iPhone, and these can be
synchronised at any time. In addition, the application displays
suggestions in the surroundings once the mobile phone has been
localised. "tripwolf" sources the content from its own online
community and the travel literature published by MairDumont.
Driving force 2: Web of Things
The Web of things networks physical
objects and turns them into information carriers. In this way,
everyday objects work like a website: they are linked to the
information resources of the internet and can be clicked on like
hyperlinks via mobile phone.
Object hyperlinking by barcode and
image recognition
Visual codes such as the QR Code,
Semacode or Aztec Code serve as a method of linking objects to the
Web. A further development of this technology is the recognition of
objects by their shape: objects are photographed using a camera
phone and matched with an image database, upon which a
corresponding link is opened (e.g. kooaba.com). However, it is
above all RFID technology, NFC and sensor technology that will give
the Web of Things a huge push.
RFD n on the advance
RFID tags are tiny radio modules which
permit the automatic remote identification of objects. They are
already quite common in ski passes and electronic labels. RFID tags
can also be used to link objects to information. It is conceivable,
for example, that every physical object will have a website which
can be called up directly via RFID-capable mobile phones.
Mobile payment via NFC
Near Field Communication (NFC) works
in a similar way to RFID technology, with the difference that the
exchange of data takes place over a distance of just a few
centimetres. As this short distance is tantamount to physical
contact, NFC is tipped to become the key technology in the field of
mobile payment.
Sensors "feel" the physical world
To some extent, sensors act as the
sense organs of objects. Brightness, noises, temperature or
pressure - sensors make it possible to read out the surrounding
situation sensitively on different levels. On the basis of this
information, mobile devices can interpret the context in which a
person is currently to be found.
CASE: Mobile article retrieval via
image recognition
The kooaba company has developed a new
application for mobile devices which makes it possible to link
entire magazines and newspapers via mobile image recognition
without having to alter the editorial content graphically. The
reader can then not only participate in mobile marketing activities
such as competitions, but also forward content to friends and
archive it online in PDF format.
Driving force 3: Smart Information
Processing
On the Outernet there will be an
exponential increase in information. To master this information
explosion a new generation of intelligent information processing is
needed: the smart Web.
Semantic information processing on the
smart web With the Smart Web, computers will become capable of
understanding information semantically. For example, if the user
enters a query into the semantic search engine Powerset.com, a real
answer is given. The question "how tall is Queen Elizabeth II?",
for instance, will generate the answer namely "1.63 metres".
Semantic tools can also be used to augment conversations with
additional information: Thoughttrail.com, for example, analyses
chats and automatically imports related content.
The web diversity will become the web
of importance
When context information such as time,
place and user profiles are taken into account, the relevance of
search results increases. This is already beginning to happen:
Google's mobile application 'Voice Search' automatically takes the
location into consideration for search queries. If, for example,
"movie showtimes" is spoken into the mobile phone, all the cinema
schedules in the immediate surroundings are displayed.
Smart web + Social software = enduring
communities
If the Smart Web is combined with
social software (social networks, wikis, blogs, etc.) a more
specific and more intensive connection between people is created.
The community functions that we know from the Internet get out on
to the street and into real life. As online communities on the
Outernet are enhanced by the factors of time and place, they are
transformed into enduring communities.
CASE: Location-based information from
the community
The joint project of the
location-based networks Brightkite and the augmented reality
browser layar (via iPhone), which encourages users to take photos
or post something. By simply pointing the camera at any place the
user can receive all the information available from the social
network in real time on the display. In this way, the service
provides a real-time view of the location based network.
Driving force 4: Next-generation I/O
devices
In order for the Outernet to be able
to assert itself successfully, mobile devices which can be operated
intuitively are needed. For this reason, all eyes are turned to the
new generation of input and output devices.
The iPhone shows how it's done
The iPhone can be seen as one of the
main reasons why people no longer scoff at the Mobile Web and its
applications. Yet the multi-touch usability of the iPhone is only
the beginning: numerous new materials, media and technologies are
currently under development that will make mobile communications
even more intuitive.
From OLEDs to wearable electronics
Motion sensors, flexible LED displays
(OLEDs) and speech recognition systems have already found their way
into mobile devices. In the future, they will be joined by
technologies such as gesture control, face recognition and
electronic ink (e-ink). Haptic displays, which make digital
information tactile on the display surface, are also now
practicable. As the technology is becoming not only more efficient,
but also smaller, the concept of the wearable computer is drawing
closer all the time: it is conceivable that smart glasses, retina
implants or even control over brainwaves will also become reality
one day.
The virtual extension of reality
Augmented reality (AR) does not
describe a technology, but a way of perceiving the environment -
virtually extended reality. Augmented reality can be understood as
a layer model that enriches reality with virtual levels and thus
merges the real and the digital realms of experience. An example of
an AR system is the mobile travel guide "Wikitude". It augments the
user's view of the surrounding world by overlaying additional
digital information on the mobile phone's camera image.
CASE: The smart mobile travel
companion
Wikitude is a mobile phone application
which uses augmented reality to overlay information about the
surroundings on the real image of the mobile phone's camera. With
GPS and a digital compass, the position and viewing direction are
recognized and relevant information (e.g. about places of interest)
is retrieved from the Wikipedia database. With this innovative mash
up it will be possible for users to have an extensive, mobile
travel guide at hand at all times.
Theory 1: The whole world will become
a hyperlink
In the age of the Outernet the
physical world functions like a website. Every object can be
clicked on like a hyperlink in order to access information,
services and communication offers.
The technological infrastructure for
this is already in place today
The mobile devices currently available
are sufficiently equipped, and the production costs for RFID tags,
microchips and sensors have been reduced to an economically
acceptable level. In view of the rapid technological progress being
made, there are now very few people who still doubt the prediction
made by Marc Weise, senior scientist at the Xerox research centre,
in 1991: "In the 21st century the technology revolution will move
into the everyday, the small and the invisible."
Objects will become selling spaces,
places will become anchor points
The Outernet will radically change our
relationships with one another and with objects around us in the
world: when real objects - such as cars, billboards, or urban
trains pulling into stations - become hyperlinks, then people,
objects and information will enter into a new relationship with
each other. Objects must therefore be seen and designed in the
future as interfaces and - even more so - as potential selling
spaces. Due to the possibility of interlinking, physical locations
become anchor points around which local communities form and at
which context-relevant information is exchanged.
CASE: On the Outernet the internet
will ecplode into the real world
"People, systems and products link up
directly with each other and interact. Via mobile devices which are
constantly connected wirelessly to the internet, the Web will
conquer the street and only then will it realise its true
potential." Nils Müller, founder and CEO of TrendONE
Theory 2: Computers will become
invisible
Computers will be so small in the
future that they will be practically invisible. This will make it
possible to embed computers in everyday objects, in our clothes and
even in our bodies.
The environment will become sensitive
and reactive
Progress in microelectronics and
nanotechnology is bringing the vision of the comprehensive
informatisation of the world closer all the time. RFID tags,
sensors and microchips can now be produced with such small
dimensions and so cost-effectively that they can be integrated into
everyday objects and items of clothing. Computers will therefore
disappear from our field of vision and embed themselves seamlessly
in the physical world. Our environment will become sensitive and
reactive, adapting automatically to our needs.
Smart objects allow intuitive
operation
Even when computers almost literally
vanish into thin air, they will nevertheless be ubiquitous. They
operate invisibly in the background and act as intelligent helpers
in our everyday lives. Examples of smart objects are a car tyre
that tells you when it is losing air, or medication that draws
attention to the fact that it is past its use-by date. As smart
objects possess intuitive user guidance, technically inexperienced
users can also use them without difficulty - unlike the
conventional Internet.
Computers and information will become
intimate
As computers become embedded in our
environment, the physical distance between user and desktop will be
removed. Computers integrated in textiles, intelligent contact
lenses and retina implants will make the relationship between
people and computers much more intimate: media content and data
will get much closer to the recipient - they will 'touch' us in the
true sense of the word.
CASE: BEOBLE.ME: Outernet social
network
beoble.me combines different functions
of the Mobile Web and Web 2.0 in one platform and aims to become
the new social network of the Outernet. Users of beoble.me can
determine at any time which friends and members of their network
are nearby and which bars and restaurants in the surroundings are
recommended. They can phone and mail each other and get to know new
members without having to exchange mobile phone numbers or similar
contact data.
Theory 3: Information and networks
will become ubiquitous
Networks are the capital of the future
because access to resources and not possesion of them will be of
crucial importance in the future. The Mobile Web and corresponding
terminal devices allow us ubiquitous access to information,
services and networks.
Different spheres of identity will
merge
On the Outernet, access to digital
information is no longer physically limited, while on the Internet
a distinction is still made between online and offline and thus
between real and virtual identity. By removing this boundary on the
Outernet the different partial aspects of our social identity
become merged. In the age of the Outernet it will therefore become
necessary to create a uniform self-image that coherently integrates
the diff erent spheres of identity.
Communities will become more
spontaneous
On the Outernet, communities will
become more spontaneous, more dynamic and more specific. The
joining together of the community members is not only based on
their common interests, but also on their location. The flash mobs
organised online and carried out offline are a good example of
instant community building in the age of the Outernet.
Communities will become more
enduring
As the thread to the virtual community
is never broken on the Outernet, an 'ambient intimacy' emerges.
This term describes the sense of feeling close to people despite
the fact that they are at a different location. The practice of
being in constant contact with friends via digital communication
technologies can lead to the stabilisation of communities. On the
Outernet, communities will therefore become more erratic on the one
hand, but also more enduring on the other.
CASE: Electronic visual aid for the
blind
Physicians in Tübingen have developed
a kind of electronic retina for blind people: the retina chip. The
wafer-thin chip, on which sit 1,540 photocells plus electronics, is
implanted beneath the nerve cell layer of the patient's retina. As
with a healthy eye, the light falls through the lens, shines
through the nerve cells of the retina and then hits the chip's
photocells. The retina chip facilitates visual acuity of six
percent - sufficient to recognise people's faces.
Theory 4: Reality will be
reintegrated and augmented
On the conventional Internet, data is
uncoupled from the dimensions place and time. This is in contrast
to the Outernet, were data assumes a direct contextual relevance.
Instant messengers such as Skype, microblogging services such as
Twitter and social communities such as Facebook have already
successfully incorporated the time factor. The location and time
context dramatically increases the relevance of data - and thus
becomes a killer application.
Real interaction is reintegrated
On the Outernet a comprehensive
reintegration of real interaction processes into the digital
environment takes place. When someone reports on an experience in
real time via Twitter, a direct link is established between reality
and virtuality and reality reintegration occurs.
Several versions of the real world
The reintegration of reality into the
digital world is mirrored back into the real world on the Outernet.
This is done by enriching and extending the real world by means of
augmented reality. As augmented reality complements our perception
by adding digital layers, our environment becomes customisable:
depending on which filters we use, we perceive our environment
differently.
CASE: The mobile augmented reality
browser
The company SPRXmobile has developed
the 'layar' application which makes the browser of mobile phones
capable of displaying local data in augmented reality. When the
surroundings are filmed using the mobile phone's camera a radar on
the display indicates the distance to places of interest. If, for
example, the user is searching for houses for sale, these are
displayed showing a picture and the purchase price as soon as the
mobile phone is pointed at the house in question.
Theory 5: Environmental perception
will become more selective
The merging of online and offline
appears to be increasing the complexity of our world beyond
measure. In fact, the Outernet is much more about reducing
complexity: as with an ad blocker, unimportant information can be
suppressed and important information included via augmented
reality.
Selective environmental perception is
a natural process
The possibility of consciously
selecting information will make the world a place with more options
and therefore greater clarity in the age of the Outernet. The
phenomenon of selective environmental perception is a natural
process and one we are all familiar with: depending on our
interests and needs, we focus our attention on certain details in
the environment. It is therefore not necessary to relearn how to
use the different filters through which we perceive our environment
on the Outernet. However, as augmented reality visually highlights
information, the selectiveness of perception will become more
explicit and more specific.
Communities of interest become
communities of perception
What are the effects of selective
environmental perception on social interaction? One consequence
could be the formation of communities on the basis of the currently
activated perception mode: Beatles fans, for example, who walk
around Liverpool in "Beatles mode", perceive the environment
through the same filter. The common interest community of the
Beatles fans thus becomes a common perception community at the real
location. Social communities become more specific and shared
experiences more exclusive on the Outernet.
CASE: The proactive browser for the
mobile web
Aloqa is a provider of location-based
services which supplies users proactively with location
information. Thanks to Aloqa, companies and businesses wishing to
draw attention to their location will no longer have to develop
suitable software for each mobile telephone in the future. The user
is spared the laborious task of typing search terms into the mobile
phone as the location-related information on preconfigured topics
(such as dining out or live music etc.) appears in the display by
means of the push method.
Consequences: Marketing
The Outernet expands our possibilities
for communication in all directions and makes interaction even more
personal, more selective and more optional. Marketing has been
aware of this paradigm shift since the emergence of Web 2.0. on the
Outernet, the focus of marketing will therefore be on adapting even
more individually and sensitively than before to the needs of the
customers. Communication on the Outernet takes place primarily via
the most personal medium to date - the mobile phone.
Contextual targeting as a starting
point
The mobile phone enables brands to
reach customers in a more targeted way (ubiquitous advertising). In
the future, contextual targeting (location, time, profile, mood,
status, etc.) will be the starting point for all marketing
activities. This will make it possible to approach customers on the
basis of their current situation and mood - leading to mood
marketing in its purest form.
Brands as point of orientation
How can contextual targeting be
employed without the customers feeling pestered? Orientation is the
keyword here: if brands already provide orientation in the real
world, they should be able to do the same in a mixed world of
reality and virtuality. The right tip at the right time in the
right place - this is how concrete added value with contextual
relevance is created. Special offers limited in terms of time and
place (e.g. mobile coupons) can be an effective way of establishing
contact with customers.
Advertising as a service
Advertising will become a service and
the brand a good friend. The application "Passport to Greatness"
from Guinness or the "soundwalk" from Louis Vuitton show what it
can actually look like. in addition, mobile augmented reality
applications such as Layar or Wikitude.me provide an indication of
how a mixed reality can be created on the Outernet which is filled
with content not only by the users, but also by commercial
providers.
Marketing becomes transparency
marketing
On the Outernet, transparency
increases dramatically. Resourceful technologies like the iPhone
application "Amazon mobile" already challenge marketing to provide
more transparency: with "Amazon mobile" users can photograph
products in stores and are immediately notified of the cheapest
supplier of the product in question. The product can then be
purchased with one click. Marketing is also increasingly challenged
when it comes to relevance as context factors such as geographical
location and user profile must be taken into consideration on the
Outernet. Marketing will therefore develop more and more in the
direction of transparency marketing and position itself as an
efficient complexity reducer.
Consequences: Life
The Outernet will change our lives
even more dramatically than the Internet. This will not take place
from one day to the next, but in a constant, evolutionary process.
However, the opportunities arising from the Outernet are already
emerging today.
The Outernet promotes
individuality
The Outernet promotes individuality by
providing us with individually tailored information. This enables
us to act more efficiently and make more informed decisions. A
virtual personal assistant supports us in our everyday lives by
taking our preferences (context layer) and our frame of mind (mood
layer) into consideration.
The Outernet promotes the independence
of older people
The Outernet will even be manageable
for young children and the elderly. This is particularly relevant
in view of the ageing structure of society: concepts such as
ambient-assisted living or home monitoring make it possible for
even the very elderly to lead an anxiety-free and self-determined
life outside over-burdened nursing homes.
The Outernet strengthens
subcultures
The Outernet makes it possible to
rediscover the world every day. One of the consequences of this is
that sub-cultures become more differentiated. Entry into niches can
be more erratic and is usually only temporary: gothic today, eco
tomorrow - depending on time, location and mood.
Who will become the trusted
partner?
In spite of all the convenience it
offers, the Outernet also raises questions regarding data security:
who will be the trusted partner to whom I entrust my data, and who
helps me to keep track of my activities? Will there be an MOT-like
authority that administers the personal data, or will private
providers perform this task? The job will probably go to whoever
comes up with the most coherent personal identity management
concept. After all, situation-dependent partial identities
(occupation, shopping, party, etc.) have to be administered
somehow.
Consequences: Business
The Outernet offers a wide variety of
cross-industry business opportunities. It is therefore never too
soon to start thinking about new products, services and business
models.
The point of sale is shifting to the
mobile phone
The combination of Mobile Web and Web
of Things will result in all objects becoming communication
channels and selling spaces. If we like the shoes of the person
sitting next to us, we focus on them with our mobile phone and can
immediately see the model, price and a possibility to order in the
display. The point of sale is therefore shifting to the mobile
phone, transforming the world into one big shopping mall. As a
consequence, the stationary trade will have to compete with
millions of products which are shopping windows and check-out at
the same time. Physical shops will therefore have to develop into
places offering an experience - from point of sale to point of
experience.
New services are emerging
The comprehensive networking on the
Outernet gives rise to new services. The analysis of movement
patterns allows, for example, car insurance premiums to be
calculated much more accurately. Location-based services such as
the localisation of businesses or location-based mobility and
entertainment offers increase time efficiency and create
transparency. Dating and gaming will also be boosted: profi
le-matching services based on the direct surroundings invite users
to participate in spontaneous speed dating; multi-player games in
augmented reality mode move computer games into the physical
environment.
Products become hybrid products
On the Outernet physical products
become hybrid products by including further (in some cases also
premium) services in addition to the original product benefits.
Examples are football trading cards that provide access to an
online exchange, or medication that not only relieves the symptoms
of a disease, but also provides information about its geographical
proliferation.
The segment of one becomes reality
In the age of the Outernet, products
and services can be customised on the basis of user profiles. In
addition, offers can be tied to a place and time, creating an
artificial shortage and suggesting a certain uniqueness. This
represents a possible strategy to counteract price wars arising
from the high degree of transparency on the Outernet.
Recommended course of action:
You have to get better in believing
the impossible! One thing is clear: everything is going to change -
and fast! The Outernet characterises a technological development
which has already begun, is gaining pace and will have a
fundamental effect on our lives. But how should companies respond
to this process?
The sentence "You have to get better
at believing in the impossible!" was uttered by Kevin Kelly of
Wired magazine and describes precisely the way we must approach the
Outernet. The recommended courses of action listed here should be
seen as stimuli for our thoughts to open a door into the
future.
1. Communication
As a result of the Outernet, the first
thing to change will be how to approach customers and target groups
in the future. Information will be placed in a context and the
channels and measures to reach the target group will explode.
One-to-one communication will become possible and target groups
previously considered unreachable will move within grasp. The
drastic rise in communication channels will make the creation of a
campaign architecture increasingly complex. The gathering and
sharing of campaign experiences within the company will become more
and more important for the meaningful allocation of the marketing
budget.
To make the variety controllable
requires that…
- a commitment to test and learn is
made
- communication is geared consistently to
the ROI
- a campaign-tracking system is installed
to monitor the success of the channels and measures
- the continuous adjustment of the channels
and measures takes place based on conversions.
2. Brand
The digital fingerprint of a brand can
be experienced on the Internet today. Campaign websites, Web TV and
social media are now used to offer the customers a digital brand
experience.
However, the digital brand experience
usually ends at the edge of the computer screen - in isolated cases
it manages the leap to mobile devices or game consoles. Yet it is
precisely the digital devices which are experiencing such rapid
development. Microsoft Surface, for example, offers a multi-touch
and multi-user experience that allows a completely new kind of
brand showcasing at the POS. Furthermore, the first video-in-print
solutions are making the leap from prototypes to mass market
readiness. Video-in-print is the integration of moving images into
print products. Displays, loudspeakers and batteries are made so
thin that they can be integrated into magazines. This gives
companies the opportunity to engage in interaction with consumers
at existing and at new touch points and to expand the dialogue.
Brand companies must therefore…
- develop a device strategy to identify
relevant devices for the company and to integrate them into the
brand presence
- define a digital brand experience to
guarantee a uniform multimedia presence on all channels
- establish the screening of new digital
stimuli to ensure that the digital brand experience is maintained
continuously.
3. Services
The driving force 'next-generation I/O
devices' alone as well as the topic augmented reality (AR) of the
Outernet make it obvious which service extensions will become
possible as a result of enriching the real world with virtual
information. The virtual postbox, for example, represents an
enormous service gain for the customer, who can have a virtual
postbox corresponding to parcel dimensions projected on to the desk
via PC and web cam. The customer then places the real object in the
projected postbox to check whether it is the correct size. If we
add the other driving forces of the Outernet we get an idea of how
big the service influence of the Outernet is.
Companies must therefore …
- establish service quality management to
augment existing services with the potential of the Outernet
- establish innovation management to
identify additional services for the customers
- involve employees and customers actively
in the process of service optimisation and extension.
4. Source of
business
The music industry is the prime
example of how the internet can threaten existing business models
and how, from that, new business models are developed,(e.g.
itunes.) The Outernet will have an even greater impact on existing
and potential business models because it will affect a much larger
area of our lives.
Wikitude is one of the first Outernet
business models to be based on two driving forces: localisation and
next-generation i/o devices. By combining these two driving forces
it is possible to transform android phones or the iPhone into a
mobile travel guide. The Wikitude browser superimposes itself like
a layer on the camera lens, and the real world is augmented with
travel information from Wikipedia and Qype reviews.
The power behind the Outernet and the
possibilities it offers for this business model are demonstrated by
Amazon with its mobile application 'Amazon Remembers'. This
application allows users to upload photographs of objects to the
Amazon store (e.g. chairs, shoes or TVs) and receive product
recommendations for mobile purchase in return. By doing this,
Amazon moves the Pos from the internet into the real world,
allowing it to compete with conventional retailers.
The Outernet can therefore be good and
evil at the same. It has the power to bring about new business
models and to jeopardise existing business models. One of the
biggest challenges for companies will be to assess the potential or
the dangers of trends in good time.
Companies must therefore …
- look further to the competition
- regard the critical analysis of their own
business model as a matter of course
- reinvent and redevelop themselves every
year.
In the end, what remains is the
simple, old formula: relevance. Only those companies which have
relevance for the customer in an increasingly complex world will be
able to enter into a dialogue with a view to establishing and
developing a relationship. And only those which understand their
customers and act accordingly will achieve relevance. In the
future, the business of the companies will be determined by
'management by consumer insights'.