5. 5
06 Aim
07 Methodology
09 Introduction
10 Digital Connectivity
12 Trend Drivers
14 Trend Consequences
18 Industries’ Implications
20 Travel
22 Health
26 Retail
30 Consumer’ Implications
39 Summary
42 List of Illustration
46 References
50 Bibliography
6. 6
Aim
The aim of this report is to explore and rigorously analyse
‘Digital Connectivity’ as a key current macro trend, discussing
how it is influencing society, business and consumers’ behav-
iour on a personal level. The core of this analysis is to debate
how the trend affects different industries, such as ‘travel’,
‘health & wellbeing’ and ‘retail’, with great attention on how
consumers are responding to these shifts and on the possible
heterogeneous outcomes that are deeply interlinked.
7. 7
Methodology
In order to develop a consistent and solid report, I have
used a variety of secondary sources in order to broaden
my understanding of the macro trend. A deep literature
review has been used to analyse existing data in order to
highlights substantive findings as well as methodological
contributions to the Digital trend.
Great attention has been dedicated to specific journals as
RetailWeek and The Economist, and academic reports as
Mintel and WGSN.
8. 8
‘ The web is more a social creation than a technical one ’
Tim Berners-Lee, 1999
9. 9
1. Introduction
The world has changed more rapidly and dramatically than
ever. There is more content in the world, created, shared and
showcased in real time, than ever before. Digital technology is
evolving at a supersonic pace, offering affordable devices as
well as cloud computing to billions of consumers.
This large-scale effect specifies Digital Connectivity as a dis-
ruptive macro-trend, because of it is global impact that has
significant long-term changes on the main aspects of economy
and society, that results in crucial alterations and deep transfor-
mation in consumers’ behaviour and decision-making.
According to the forecasting agency Pwc ‘by the year 2020
an entire generation will have grown up in a primarily digital
world’(Friedrich, R. et al, 2015). Therefore, consumers natu-
rally expect to be always connected, willing to share personal
data. ‘Everything is now liquid and linked’: this is how one of
the most powerful brand in the world, Coca-Cola Company, is
conceiving its new marketing strategy and it is judicious and
reasonable having this mind-set while evaluating all the macro
trend’s implications. Everything is considered liquid because
information and data flow, acting like water, occupying every
space everywhere in an accelerated time; and everything is
linked because real time connections are deconstructing the
concept of distance and accessibility. The consequences on so-
ciety of this deconstruction of spaces and time are multiple and
unpredictable and the debate is just started.
10. 10
2. What is Digital Connectivity?
In order to answer this question in a thoughtful way it is neces-
sary to define the two words: ‘digital’ and ‘connectivity’.
What is digital?
Digital nowadays has become a buzzword and the real mean-
ing has lost its relevance. The term ‘Digital’ describes ‘elec-
tronic technology that generates, stores, and processes data’
(Rouse, 2005). This electronic technology had led to a conver-
gence of different social and economic changes in a phenome-
nal digital revolution.
What does Connectivity mean?
Connectivity is the state of being interconnected, all the time
from everywhere. Any mobile device has a 24/7 access to the
web, social media and email, all available in almost anyone’s
pocket.
‘Digital Connectivity’ represents the power of this new sophis-
ticated technology interconnected in a relentlessly way. This
ever-linked state is reshaping industries and consumer behav-
iour’s patterns, creating unexplored possibilities discussed in
the following chapters.
‘This era will be defined by the digitization and connection of
everything and everyone with the goal of automating much
of life, effectively creating time, by maximizing the efficiency
of everything we do…’
Marcus Weldon
12. 12
3. Trend Drivers
The driving forces behind Digital Connectivity are complex and
complementary. Dramatic and sensational changes have been
carried out since the first digital transistor was invented in 1947
by John Bardeen and the first computer conceived in the 50s.
Technology has developed more powerful, faster and smaller
devices. However, what made this technology extremely perva-
sive and universal was the invention of the internet. ‘The Net’, the
global system of interconnected computer networks that linked
billions of devices worldwide, which origin is date back to the
1960s’ in California. The power of connection is directly linked
with the constitution on the WWW, World Wide Web, the real
first key for people to access the internet and its ‘networks of
nerworks’, invented by English scientist Tim Berners-Lee in the
1989, followed by the mobile revolution that we are experiencing
this last decade.
The internet led to a universe of possibilities and one of the key
drivers is the chance to fulfil human’s needs, principally the need
to connect with others. The first social network was Six Degrees,
launched in the 1997, followed by many others as MySpace in
2003, Facebook in 2004 and Twitter in 2006. These social tools
are driving a convergence of elements that are supporting a new
connectivity causing a significant disruption.
In fig.1 Maslow’s Hierarchy of needs translated in social media
communicates effectively how they have become a dominating
factor in people’s life. A digital, affordable, tool to fulfil deep-
er needs as self-esteem, friendships, self-respect and intimacy.
Nevertheless, relying on digital connectivity to fulfil human basi-
lar needs could sound as a contradiction, due to the intangible
nature of online communication reflected on the real world.
13. 13
It could even been argued that social media has become a phys-
iological need itself as its all-pervasive essence is manifesting in
hours and hours spent online, that are eventually drawn to poor
mental health. Surely how this disruption truly meets human
needs is debatable and further analysed in section 6 (pag. 34).
fig. 2
14. 14
‘The mobile revolution, centered on the development of global
cloud infrastructure and development of smart mobile devices
are accelerating the transition to a new phase of nomadic human
existance’
Weldon. 2015:10
4. Trend Consequences
Digital connectivity has empowered society; however, the main
point is how this power is exploited. The dynamism of this mac-
ro-trend generates many different consequences that are tracka-
ble in all the different industries.
4.1 Evolving communication patterns
In history, communication was always ‘packed’ in certain forms,
as for example TV ads, poster or radio. Now communication is
seamless, fluid and most of immeasurable. People are constantly
bombarded with information that generates a distraction rising,
changing media and marketing’s dynamics and lexicon.
Also the strong proliferation of tools that permit the sharing of
user created content, face the problem of a borderless commu-
nication aimed to a global conversation. This implies an evolving
global language from verbal to visual, with an extension of sim-
15. 15
4.2 Augmented Reality
The ‘immersive’ nature of augmented real-
ity(AR) as an enhanced life were comput-
er-generated imputs drive a strong mental
engagement and a deep level of sensory
identification is a growing desire. AR can
improve almost every human activities, from
business to cultural and social, such as inte-
grated print and video marketing, with re-
al-time products’ demos and multiple views,
as the Ikea Catalogue features 90 products
with AR on the page which allow users the
ability to transpose products in their home
(fig.3). Augmented reality glasses for exam-
ple can allow travelling without leaving home,
help surgeons perform their jobs better or
help everyday life with a main short-cut: hav-
ing a pair of hands back. Despite this extraor-
dinary progress, it is also believed that AR
could further distance people from the real
world, that is already a considerable ‘reality’
to be explored without extra virtual tools.
Furthermore, everything could be turned into
a potential advertising space, rising the al-
ready claustrophobic amount on information
available. Privacy and cybersecurity concerns
are debatable as well, as ‘AR’s capacity for
“constant” recording of data in addition to
its ability to process information on top of
physical reality, raises interesting issues that
go beyond current questions of privacy, free
speech, and discrimination’ (Nielsen, 2015).
fig.3
16. 16
4.3 Personalisation
The convergence of human and computers has change the
rules of brand engagement, strongly empowering consumers
that are expecting higher level of consistency from brands,
causing a major shift towards a stronger customisation. Big
data is driving this consequence, as they are fundamental to
create a satisfactory tailored product or service. Tracking con-
sumer’s location, contacts, buying preferences, on-line re-
search pattern allows business to create specific profiles linked
to ad-hoc offers. However, is it a personalised experience or
unacceptable digital stalking? As supported by Nathasha Clark
(2014), there are potential alarming consequences as it is felt
that brands over-stepped this data trade-off, however this po-
tential ‘violation’ is perceived differently based on different age
group (fig.4), with the younger generation more open to share
personal data.
4. Trend Consequences
fig.4
17. 17
4.4 Gamification effect
Gamification is a crucial part of business’s digital strategy, being
key for consumer engagement and activity. Gaming elements
such as prizes and leader boards boost consumer attention and
employees commitment, becoming a driver to motivate people
to achieve their goals. This consequence is deeper analysed with
regards the different industries in the following section.
fig.5
18. 18
5. Industries’ Implications
From a business prospective, the challenge is tough. Being
ahead of the game, with mobile being the closest and most
important medium, brands need to re-evaluate and rebrand
themselves to be appealing and relevant on a 2 inch by 4 inch
screen. The term ‘connectivity’ entails that everything is con-
nected as never before and every action should transcend the
company’s benefit to embrace a much broader scenario, being
an additional value to everyone, from the supply chain to the
community and the end-consumer. A major shift from tradition-
al B2C business models toward co-created platforms is detecta-
ble in successful example such as Uber and Airbnb (fig.8)
In fig. 4 is remarkably clear how digital based companies’
growth such as Netflix or Amazon extraordinarily exceed the
growth results of traditional companies such as Walmart. The
‘wheel of disruption’ (fig.5) with its diverse tools is affecting all
the industries on different levels.
fig.6
20. 20
5. Industries’ Implications
5.1 Travel
In the Travel industry digital technology has profoundly changed
the dynamics, transforming the sector scenario in a mass global
tourism infrastructure where the ‘connected traveller’ is the king.
There is a high expectation in seamless cross-devices and cross
platforms experience and interactions. When looking for inspi-
ration or booking a holiday, the majority (54%) of consumers
researched by Mintel in May 2015 feel that ‘they don’t need to
talk to a travel expert anymore’ (McGivney, 2015) mainly to save
money and having a more tailored experience. Here explained
the main implications of this change:
5.1.1 Virtual Reality
The ‘4D’, computer-generated immersive experience is a key
feature for Travel brands to showcase exclusive services or to
even offer an exclusive ‘taste’ of a particular destination before
being there. For example, British Airway is taking a step ahead of
the game, implementing with Google a virtual street view of its
cabin (fig.9). Virgin Holidays created a ‘sensory holiday laborato-
ry’ where customers were at the centre of a multi-sensory envi-
ronment with a textured flooring, interactive lighting and specific
scents.
fig.9 fig.10
21. 21
5.1.2 Ubiquitous connection and wearable tech
In-flight Wi-Fi and embracing wearable tech is now more expect-
ed from consumers. Air Berlin, Vueling and Iberia implemented
mobile boarding passes for smartwatches while Virgin Atlantic
has trialled the use of Google Glass for its staff (Munson, 2014).
Brands has to optimise a seamless cross-platform research, book-
ing and experience process where users ‘can start the purchasing
journey on one device and finish on another’ (Segal, March 2014).
Disney World’s Magic wristband represents the future of aug-
mented experience in a simple wearable technology that allows
an unprecedented personalisation. A simple, rubber device which
incorporate a RFID chip and a radio connected with a powerful
system of sensors within the park (Kuang, 2015), allowing the
visitors to have a more relevant ‘fluid’ experience.
fig.11
22. 22
5. Industries’ Implications
5.2 Health
In the Health and Wellbeing industry, the connection between
user and device is closer than in any other and digital connectiv-
ity is supporting a large variety of self-diagnostic tools (Cave J.,et
al., 2010). Digital medical devices and wellness apps are rapidly
improving, led by the tech pioneers of Apples, Google and Mi-
crosoft, and it is crucial to have true engagement with the used
device.
5.2.1 Tracker technology and the ‘ultimate’ Health experi-
ence
Personal digital devices are changing how we deal with health.
’Quantify’ people’s body and performances through wearable
devices (fig. 12) is a global demand in order to reach healthier
lives. According to Bertalan Mesko,MD,PhD ‘the whole healthcare
experience must be redesigned in order to meet the expectations
of today’s e-patients’ delivering solution geared to each individ-
ual’s condition. Having more and more sophisticated tracking
devices that measure everything from physical activity, to stress
level and emotional state can reveal ‘how each aspect of our life
consciously and unconsciously impact each other’ (Cha, 2015).
Otherwise, some academics criticise tracking as prime evidence
of the narcissism of the social media age, and others argued the
accuracy and privacy of such devices as ‘getting the data is much
easier that making it useful and relevant’, said Deborah Estrin,
professor of computer science at Cornell University in NY.
24. 24
5. Industries’ Implications
5.2.2 The new slow-tech wellbeing
The slow technology movement is part of a greater cultural
agenda, ‘the slow movement’, promoting a slower pace of life.
Digital detox is a growing buzzword and a growing consum-
ers’ need to switch off from technology and the unhealthy
effects of the ‘always-on’ trend. The Journal of personal and
Ubiquitous Computing described Slow Technology as ‘a de-
sign agenda for technology aimed at reflection and moments
of mental rest rather than efficiency in performance’(Hall-
nas,2001).
The future of digital detox is not banning technology but
integrating it in a more holistic way to help slowdown and
‘disconnect’ the brain. Interestingly, this trend is embraced by
tech companies including Google running courses for staff
such as Search Inside Yourself to encourage mindfulness in
the workplace’ (fig. 14) Slow-social apps such as ‘Freedom’
help the customer stay productive, not letting the user log
back on social media for the desired amount of time. Humor-
ously, a ‘1995 mode’ option is available as well in order make
and receive calls only. Furthermore, meditation apps prove to
reduce stress and help us keep calm and sleep better as the
UK’s app ‘Buddhify’ or ‘Headspace’ (fig.13), where tailored
meditation sessions are delivered.
26. 26
5.1 Retail
According to Retail Insider’s ‘Digital Retail Innovations Re-
port’(2015) ‘there is no part of retail that is not being impacted by
the ongoing march of digital’ and customers require a constant
response from retailers. As Floor(2006) stated, consumers are
feelings-driven, always willing to be inspired by a singular range
of experiential shopping surroundings.
5.1.1 Seamless E-commerce
E-commerce reaches 11% of all retail sales, a strong growth
mainly due to the increasing participation in shopping via tablets
and smartphones (Mintel, 2015). However, being available on-line
is not enough as the e-customer required more. ‘Online Pre-or-
dering’ services are increasingly demanded by customers and
innovative leading brands such as Starbucks are embracing the
trend. Additionally, virtual fitting rooms are expected to be more
and more accurate as well. For example Metail virtual fitting room
creates a 94-96% accurate model (Retail Insider, 2015) that allows
visitors to try on clothes online, creating outfits with the confi-
dence of ‘real’ fitting.
5. Industries’ Implications
fig.15
Metail Virtual
Fitting room
feedback(2015)
27. 27
5.1.2 Interactive Sensorial experience
Understanding the growing potential of sensory stimulation of
consumer is key to create a compelling retail experience that
is driven by their perception and satisfaction. Lindstrom (2010)
affirmed that sensory stimuli could motivate consumer behav-
iour, allowing emotional responses and loyalty. This sensorial
experience implemented with digital devices can enhance the
whole journey, transferring smells, tastes and textures digitally.
VicarVision is developing the ‘Empathic Products’ project that
use emotion recognition to personalise advertising in shopping
centres (Nightingale, 2014). Personalised and relevant experi-
ence are supported by the growing Beacon and Haptics tech-
nologies where shoppers’ mobile devices are utilised to create
a richer shopping involvement.
fig.16
VicarVision’s
research on
personalised
emotional expe-
rience
28. 28
5.1.3 A new digital loyalty
An interesting effect of connectivity on retailing is the new
evolving digital relationship between brands and consumers,
built on gaming and interactivity. For example, Mark & Spencer
unveiled their new customer relationship scheme, a 21century
connection based on 1 to 1 engagement, now possible thanks to
advances data and digital tech. M&S insights and loyalty direc-
tor Suzanne Broer said: ‘Loyalty is the wrong word to use, it is
about a new relationship with customers –recognition, relevance,
tailored and a conversation. We want to go beyond generic
discount’. Following this evolving trend, John Lewis signed up
1.6 million members with its innovative loyalty scheme (Vizard,
2015) where customers do not have to carry around a plastic
card anymore (fig.17).
However, brand loyalty in the digital era is not one-dimensional
and the accessibility to different offers and possibilities has led
to an evolving brand relationships. Costumers still love brands
but it does not mean ‘the relationship is monogamous’ (Anon.,
2015). In effect, the most successful brands will be those who
will not work on establish new loyalty models but creating di-
verse types of connections and relationships that could meet the
diverse needs of consumers.
5. Industries’ Implications
30. 30
6. Consumer’s Implications
It is now clear how the digital environment had changed the
way business and consumers interact, but how this trend affects
people it is discussed further in this session.
As we can see in fig. 18, consumers are the category most influ-
enced by the digital disruption. As defined by Afhsar(2014) in
the Huffington Post, we are living in the age of the ‘Empowered
Consumer’ and this emerging consumer profile could be sum-
marised by 4 key traits, defined by Steven Rosenbaum(2015) on
Forbes:
fig.16:
31. 31
To this extend, the digital impact on consumers and their
spending habits is huge but what is even more complex
and ground-breaking is the consequences on their personal
human level.
Hands-on Smart Mobile Global
Ad-sceptical, they
are more and more
driven towards
customised solu-
tions, having a
clear view on
how they want to
experience their
shopping ‘s jour-
ney. They would
definitely be driven
by ‘try-before-
buy’ solutions and
innovation.
Being savvier
than ever, with a
world of infor-
mation to re-
search into, they
double check
their resources
before decisions.
Mobile phones
are consumer’s
new life com-
panion and
critical assistant,
therefore on-
the-go solu-
tions are crucial
to meet their
needs.
Their ability to
shop in a world
market has
upgrade the
consumers with
an open-mind
set towards
different sug-
gestions and
an independent
way of no-bor-
ders shopping.
32. 32
6. Consumer’s Implications
6.1 Blurred Lines
Internet allows greater flexibility in working hours and location
and low cost instantaneous sharing of ideas has made collabo-
rative work dramatically easier. However, tech trends are likely
to further blur the distinction between private and professional
spheres. The crucial question is if this tendency is empowering
people or debilitating them. According to Joe Nandhakumar,
Professor of Information Systems at University of Warwick, ‘ubiq-
uitous digital connectivity helps the effective completion of col-
lective tasks’, allowing much greater control over timing. There is
a growing body of evidence that suggest the use of such technol-
ogies to help better reach organisational goals. (Nandhakumar,
2012).
In contrast with this point of view, Dr. Larry Rosen, expert of ‘psy-
chology of technology’ and professor at California State Univer-
sity, suggests that digital tech has ‘begun to negatively affect our
mental and physical health’, as these devices are not enhancing
our quality life but there are ‘psychopathological relationship
with them’ (Nandhakumar, 2012).
33. 33
6.2 Social media
Humans as social animals depend on other humans’ effort
and social interactions are crucial for an healthy psychological
development and self-assurance (Gray, 2010). Social media had
monopolised this need, creating new ways to socialise, interact,
and share common interests, which is a positive enhancement
to everyone’s life. However, as proved from different studies,
using social media more often, mainly for managing the online
self-representation, could lead to ‘clinical symptoms of most
psychological disorders’ such anxiety, insomnia or even de-
pression (Nandhakumar, 2012). Also the ‘online disinhibition
effect’ supported by the anonymous nature of online identities
determine the tendency of many individuals to behave more
stridently or offensively online that they would in real life (Suler,
2004). This effect could generate negative consequences such
as ‘Cyberbullying’. According to Cyberbullying statistics (2010)
from i-SAFE foundation over half of adolescents and teens
have been bullied online and well over half of young people
do not tell their parents when cyber bullying occurs. As report-
ed by The Telegraph ‘social media has changed where hate
crime happens’ (Miller,C.,2015) and how it is conducted, with a
greater preference for the victim’s identity, as race, gender or
sexuality. However, it is confirmed that children with histories
of offline victimisation are more vulnerable to cyberbullying,
proving that social media is not the cause but just a tool. More-
over, social media could also support mental health, by provid-
ing online therapeutically group support for a range of mental
disorders including depression and anxiety.
34. 34
6. Consumer’s Implications
6.3 Communication & Emotion
55, 38 and 7. These are the numbers associated with communica-
tion: 55% is body language, 38% tone of voice and only 7% is the
actual words spoken/written. This point, well-argued by the re-
searcher Albert Mehrabian (Yaffe, 2011) proves a remarkable ob-
stacle for an effective and meaningful digital communication as
its nature is mainly written through emails and text. Despite this
limitation, the digital world represents a space in which emotions
are expressed and technology influences how these emotions are
modulated. Misunderstandings are a key constant in everyday
virtual conversations. In fact, Kristin Bryron (Goleman, 2007) in
her study demonstrates how e-mail receivers often misinterpret
e-mails as more emotionally negative or neutral than intended.
So the questions raised are: Is this digital communication taking
away the ‘humanity’ in human relationships or is it just an obvi-
ous evolution? How emotions can be interpreted in the digital
space to allow a true engagement between people interacting
online?
As technology improves, it becomes more and more ‘human’.
And more visual. The ‘Emoji’ revolution is leading this need of a
more immediate visual communication, being the fastest grow-
ing language in the world (Becher, 2015). Linguistic Ben Zimmer
define ‘emoji’ as ‘a wild west era’ where people are ‘making up
the rules as they go’. The emoji language is bridging the com-
munication gap with 72% of 18-25 years old finding it easier to
express emotion in emojis than in words (Jones, 2015).
35. 35
Notwithstanding, New Republic’s journalist Alice Robb(2014)
argued that emoji is making people less emotional, affecting their
capability to express and investigate their inner state in a deeper
way. Where this revolution is heading will be also investigated in
further research during this academic year.
fig.16 LIGO Electronic LTD’s study on social media effects’ on teens
39. 39
7. Summary
While early in its expansion, digital transformation repre-
sents the ‘next big thing’ for business and customer ex-
perience and society. Those brands that will invest more
in not just getting the ‘big data’ but actually learning
from those data and researching their digital customers’
new behavioural and communication patterns will carry
an important advantage in the market. Interestingly, as
digital connectivity is evolving is making businesses ‘more
human’ and the future of these convergences in a new
‘digital society’ is the real exciting question mark. As such,
a meaningful digital connectivity is not a goal. Alternately,
it’s a journey that seeks out how to use digital technolo-
gies and all the various related technologies in ways that
improve customer relationships and lifestyles. The ‘bub-
bles’ explored in this report will be the springboards for
further interesting and challenging research and investi-
gations.
40. 40
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41. 41
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42. 42
Marcus Weldon,2015. Relative impact of the internet on different indus-
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44. 44
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