They’re abouT To change your world

revıewthe

Issue 1 2013

why The bIg apple has joIned The bIg daTa revoluTIon

wIll IsIs Turn amerIcans on To mobIle paymenT?

goodbye desks, hello holograms: The fuTure offIce

meeT The

digital natives

Welcome

Cov

er im

age:

Get

ty

2 The Review

Mobile devices aren’t just for keeping in touch with friends and family – they’re having a real impact on the way we live. From smartphones to

embedded devices and connected cities, mobile technology offers convenience, security and entertainment for individuals, companies and governments alike.

Mobile is providing some of the most exciting developments in technology. Smartphones allow you to pay for your coffee with a single tap; mobile health applications bring medical assistance to far-flung communities. M2M devices are helping to stop illegal logging in the Amazon rainforest, and mobile messaging is changing the way companies communicate with their customers. As our working patterns change, mobile devices are offering flexible alternatives to the standard working day.

The potential of mobile and other technology is staggering – and in this issue, we look at just a fraction of the innovations coming out of the industry.

Our cover feature looks at the “digital natives” – the young people who have never known a world without the internet. They’re born thinking globally and are set to make a massive impact on how we work and play. This is a generation to watch, especially those who have been playing with smartphones and tablets since they could crawl.

We head down under to see how Australia and New Zealand are harnessing the power of technology to save taxpayer money and improve citizens’ quality of life. Australia’s eHealth program and New Zealand’s igovt portal are just two examples – and could eVoting be next?

There’s plenty more inside, including a look at the Isis rollout in Austin and Salt Lake City, New York’s experiment in open data and how manufacturers are making our gadgets greener. I hope you will enjoy this issue – and please stay in touch.

Philippe ValléeExecutive Vice President, Telecommunications, Gemalto

justaskgemalto.com @gemalto linkedin.com/company/gemalto

The Review is published by Gemalto Corporate Communications – www.gemalto.com

© 2013 Gemalto – www.gemalto.com. All rights reserved. Gemalto, the Gemalto logo and product and/or service names are trademarks and service marks of Gemalto NV and are registered in certain countries. The views expressed by contributors and correspondents are their own. Reproduction in whole or in part without written permission is strictly prohibited. Editorial opinions expressed in this magazine are not necessarily those of Gemalto or the publisher. Neither the publisher nor Gemalto accepts responsibility for advertising content.

For further information on The Review, please email laurence.manouelides@gemalto.com

The Review is printed on 9Lives 55 Gloss & Silk paper. Certified as an FSC mixed sources product, 9Lives 55 is produced with 55% recycled fiber from both pre- and post-consumer sources, together with 45% FSC certified virgin fiber from well-managed forests.

contributors

adam oxford

Adam has been writing about technology for more than 15 years and has been published in dozens of newspapers, technology magazines and websites.

The Review is produced for Gemalto by Wardour, Drury House, 34-43 Russell Street, London WC2B 5HA, United Kingdom +44 (0)20 7010 0999 wardour.co.uk

communIcaTIons manager, gemalTo Laurence ManouelidesedITor Molly BennettarT dIrecTor Steven GibbonpIcTure research Johanna WardproducTIon Jack MorganproducTIon dIrecTor John FaulkneraccounT manager Joe FaithfullsenIor accounT dIrecTor Tim TurnercreaTIve dIrecTor Ben BarrettmanagIng dIrecTor Claire Oldfieldceo Martin MacConnol

kathy chin leong

emma johnson

juha saarinen

Award-winning journalist Kathy is former West Coast bureau chief for ComputerWorld. She has been a high-tech reporter for more than 10 years.

Emma is a freelance journalist whose credits include the New York Times, Wired, the Wall Street Journal, Entrepreneur and MSN Money.

New Zealand-based Juha specializes in tech industry and regulatory analysis and investigative journalism, writing for Wired and ITNews, among others.

WelcomeMobile’s potential to change the world

four in a row!The awards just keep rolling in.

In November 2012, for an unprecedented fourth year,

The Review was named Best Business-to-Business Title at the

CMA’s International Content Marketing Awards.

3 gemalto.com

4 dIgITal dIgesTBite-sized information and news

8 dIgITal bulleTInTrees that send text messages; Japan tests out eCall; Mongolia’s drive to modernize

12 socIeTyBorn digitalToday’s kids grew up with technology – and things will never be the same

18 InnovaTIonTouch and goAustin and Salt Lake City get a mobile-commerce makeover

20 InnovaTIonThe new way of workingThe office of the future

22 socIeTyIsland intelligenceWhat’s new in tech in Australia and New Zealand?

27 TrendsThe contactless challengeWhat happened when Gemalto asked two bloggers to pay by NFC for 10 days

28 soluTIonsMobile marketing goes mainstreamHow companies can build stronger ties with customers

30 socIeTyBig Apple, big dataBehind the scenes at NYC 311 – the New York program that’s putting data to good use

32 dIgITal planeT: shoppIngThe latest in contactless and mobile payments around the world

34 InnovaTIonGoodbye plastic, hello bambooHow phone manufacturers are putting the environment at the heart of production

36 dIgITal byTesThe latest news from Gemalto

38 dIgITal lIvesThe passionate mathematicianAda Lovelace, daughter of Lord Byron and the world’s first computer programmer

In this issue…

38 Ada Lovelace was called the “enchantress of numbers”

27

22

18

8

Whi

le m

y iP

hone

has

long

act

ed li

ke a

sec

ond

brai

n, I’

d ne

ver

real

ly u

sed

it as

a w

alle

t unt

il th

e ot

her

day.

It w

as a

n ea

sy a

nd s

urpr

isin

gly

satis

fyin

g pr

oces

s!

paul

man

sfiel

d, p

ublis

her,

syd

ney,

aus

tral

ia

Rea

d m

ore

on p

age

22

Digital digest

4 The Review

The annual Consumer Electronics Show is geek heaven, and the 2013 event was no exception. Among the glitz of Las Vegas, the shiny objects more than held their own.

OLED (organic light-emitting diode) technology had a big presence, with the flexible, ultra- thin screens seen on everything from LG’s 55-inch, 4mm-thin TV (yours for a mere US$12,000) to

the prototype Samsung Youm bendable smartphone.

Home automation using machine-to-machine (M2M) technology was another theme, with multiple vendors demonstrating how we’ll be able to remotely control, monitor, start and stop everything in our homes. But it’s not just for fun: Lowe’s Iris Care system will email you if an elderly relative has left the

front door open or hasn’t got out of bed yet.

And it may have been one of the smallest things on display, but the Kickstarter-backed Pebble Smartwatch made a big splash. Available soon for US$150, it syncs with Android and iOS, showing notifications for incoming calls, emails, Facebook messages and tweets on its e-paper display.

near-future tech

Let’s get more women onlineIntel wants to double the number of women in developing countries who use the internet. It believes a greater online presence for women would benefit their job prospects, boosting economic prosperity in their home countries.

The chipmaker, supported by the United Nations and the US State Department, interviewed 2,200 women in Mexico, Egypt, India and Uganda and found that they weren’t using the internet to its full potential. Cost, illiteracy and a lack

of understanding of the internet’s benefits were cited as reasons.

About 600 million women in developing countries – that’s 21% – are already online, but Intel wants technology companies to make internet access easier, or even free, on mobile phones, which are the most common way of getting online in many developing countries. It also wants governments to work on increasing digital literacy among women. Source: Intel

US$90bnThe amount the US mobile payments market will be worth by 2017, driven by growth in proximity payments, including NFCSource: Forrester

Pier

s Ben

atar

/Pan

os

Getty

Happy birthday, SMSJust over 20 years ago, the first text message was sent from a PC to a mobile phone on Vodafone’s UK network. Transmitted on 3 December 1992, the message was short and sweet: “Merry Christmas.” SMS, which stands for “short message service,” would change the way we communicate; 8.6 trillion texts are sent every year globally, according to Portio Research. Some doomsayers believe the advent of data services such as WhatsApp, iMessage and BlackBerry Messenger means the humble SMS is on the decline, but texting remains an extremely popular form of communication, especially in the developing world, where smartphones have yet to make a big impact.

istoc

k

Cisc

o

18.75%The predicted rise in mobile advertising revenue between 2012 and 2013Source: Gartner

Until now, poor economic conditions, leading to restricted healthcare funding, and uncertainty about how US healthcare reforms will affect the market, have hampered growth in the telehealth sector. But there are encouraging signs. According to InMedica, the telehealth installed base increased by 22.2% from 2010 to 2011, with the number of patients enrolled worldwide hitting 241,200. And while telehealth device revenues grew by just 5% between 2010 and 2011, this number increased to 18% the following year.

InMedica is more positive about 2013, predicting that telehealth will be increasingly used for post-acute care, which will help to meet its forecast of 55% growth worldwide in device and service revenues.Source: InMedica

gemalto.com 5

The state of telehealth in 2013

continues >

1.3bnnumber of smartphones in use worldwide by the end of 2012

6.7bnnumber of mobile subscriptions

Source: Pingdom

5bnnumber of mobile phone users

1.1bnnumber of global smartphone users

13%mobile share of global

internet traffic

snapshot: The state of mobile in 2012

Getty

>

6

digital digest

The Review

60-second briefing

asia looks to smart citiesInvestment in Asian smart cities will quadruple between now and 2020, according to Zpryme. Developments such as China’s Tianjin Eco-City and Japan’s Kashiwanoha Smart City Project will push investment from US$55.6 billion this year to US$260 billion in 2020. Toshiba and Hitachi are among the companies anticipating the surge in demand for smart-grid technologies, much of which will be driven by China’s RMB 2 trillion (US$322 billion) investment in more than 600 cities. Source: Zpryme

europe’s fastest broadband speeds…… are in Switzerland and Latvia. According to Akamai’s Q3 2012 State of the Internet report, those countries’ residents enjoy an average connection speed of 8.7Mbps (megabits per second). They’re closely followed by the Netherlands at 8.5Mbps, with Denmark in fourth place at 7.2Mbps. On the other end of the spectrum are Portugal, France, Spain (4.8Mbps) and Italy (3.9Mbps). Still, it’s not bad when compared with the global average connection speed of 2.8Mbps.Source: Akamai

The unstoppable smartphoneMore than half a billion smartphones were shipped globally in 2012 – that’s one for every 14 people, and an increase of 10.1% on 2011. Samsung and Apple continue to dominate the market, but upstarts like HTC, Huawei and LG are snapping at their heels. Intel is getting into the game, too – its low-cost Yolo smartphone, developed with Safaricom, will make its debut in Kenya this year and cost about US$125.Source: IDC

At the end of 2012, Africa had 650 million mobile phone subscribers, making the continent a bigger market than the European Union or the United States. Available internet bandwidth has grown 20-fold since 2008. And technology hubs are springing up across the continent, from Uganda to Tanzania, with the aim of incubating African ICT start-ups.

From a digital perspective, Africa is clearly a continent to watch. eTransform Africa, a joint report from the World Bank and the African Development Bank, looks at the growth of the African ICT industry and its positive effects on

society, entrepreneurship and the economy.

One example is Kenya’s Kilimo Salama program, which provides crop insurance to farmers via popular mobile payment service M-PESA. Another is Malawi’s deforestation project, which trains locals to map deforestation near their villages using GPS devices. And in Mali, telemedicine is bringing specialist healthcare to remote areas, without the specialists having to make the trek.

The World Bank hopes programs like these will boost investment in Africa’s ICT sector, leading to further innovation.Source: www.eTransformAfrica.org

Tech fuels African development

event calendarGemalto regularly participates in trade shows, seminars and events around the world. Here’s a list of those taking

place in the next few months.

Date Event Location

March 9 SXSW Austin, USA

March 11-13 Cards & Payments Africa Johannesburg, South Africa

March 19-21 BARG Dubai, UAE

April 7-10 Card Forum Boca Raton, USA

April 10-11 Technobank Belgrade, Serbia

April 23-25 CARTES America Las Vegas, USA

May 13-16 MMT Africa Nairobi, Kenya

May 13-14 LTE MENA Dubai, UAE

May 21-23 CTIA Las Vegas, USA

visualize this

Source: Kaspersky Labs

spam’s decline Annual share of all emails globally

82.2% 80.3%

2011

72.1%

2012

2010

Digital bulletin

8 The Review

The trees are talking

According to the famous Zen koan, trees in the forest may

or may not make a sound when they fall. In the Brazilian Amazon, however, they have a new and silent way of alerting the authorities to illegal logging: text message.

Covering an area of 1.4 billion acres and home to one in 10 of the world’s species, the Amazon rainforest has lost about a fifth of its total size since 1970. While deforestation hit record lows in 2012, nearly 3,000 square miles were still lost.

About 63% of the Amazon rainforest is in Brazil, and the government has invested heavily in several measures to reduce the number of illegal clearances taking place. Satellite imaging is one of these initiatives: it works well in identifying large areas that have been cleared for illegal harvesting, but the gangs can get around this by clearing multiple smaller sites.

Now, as part of a pilot program, trees in a protected area of the

Brazilian Amazon have been fitted with a cellular communications device called Invisible Tracck, which has been developed by leading track-and-trace technology company Cargo Tracck using Gemalto’s Cinterion technology for M2M (machine-to-machine) communications. Invisible Tracck features a BGS2 communications module that sends an alert to the Cargo Tracck operations center with its location whenever it is within 20 miles of a cellular network base station. Cargo Tracck then advises the Brazilian environmental protection agency (IBAMA) officials that one of the fitted trees is on the move.

The first challenge was to design a device that could operate and survive in the vast and hostile environment that is the Amazon: the rainforest

gets an average of 7.5 feet – yes, feet – of rainfall a year.

Mission accomplished. Highly robust, the device can operate for over a year without recharging and has been modified with new Radiation Exchange Data (RED) technology, which extends its range in low-signal areas.

Most importantly, the Invisible Tracck device is discreet. At about the size of a deck of cards, it is difficult to detect without examining a tree in minute detail, a fact that its creators hope will discourage loggers from attempting to transport illegally felled wood.

The project was initially conceived by Brazilian TV network Globo to draw attention to the serious problem of illegal harvesting that plagues Brazil. The initial test involved 20 strategically placed devices and resulted in several arrests and the closure of one illegal sawmill. It has demonstrated how M2M technology can be applied in the most creative of ways to address real-world problems efficiently.

Illus

tratio

ns: G

eorg

e Mye

rs

M2M technology is helping stop illegal logging in the Amazon

The initial test of the device resulted in several arrests and the closure of one illegal sawmill

auThor ADAM OXFORD

1

9 gemalto.com

Mongolia’s phenomenal economic growth hit 12.3% in 2012, as its

booming mining and agricultural sectors powered one of the fastest-growing economies in the world. The country is establishing itself as a commodities powerhouse. As it makes the transition to a market economy, it is determined to underline its unique cultural and social identity as a modern, urbanized, IT-literate society.

As part of the process, the country is undertaking a massive infrastructure upgrade, including transport, civil services and industry. The wealth created by the commodities boom is largely in the hands of individuals connected to the industry, but the effects of that wealth are being gradually spread to the rest of the population through these projects.

The change of ruling party in elections in the summer of 2012, and the conviction for corruption of former president Nambar Enkhbayar, has been seen as a landmark. Prime Minister Norov Altanhuyag is determined to create a stable legal environment with stronger

anti-corruption enforcement, which will establish positive conditions for foreign investment and, in turn, help build Mongolia’s infrastructure.

One development that reflects the country’s drive for modernization was the decision by the Mongolian Ministry for Justice and Home Affairs to roll out a multifunction electronic citizen ID using Gemalto’s Sealys BioPIN. Since May 2012, three million cards have been distributed to all citizens over the age of 18, which will play a vital role in securing the identities of Mongolians.

The cards have gathered the personal details and biometric data of the

The Ministry for Justice and Home Affairs has rolled out an electronic citizen ID card

continues >

Political and technological reform are at the heart of the country’s renaissance

Mongolia’s bright future

auThor SARAH COLES

2

but in the future it will open up a number of other possibilities. The card will be used in the next presidential election in June 2013, and the government is currently thinking of other applications.

At the moment, there are fewer than 700,000 internet users in the country. However, there are no restrictions on internet use, and the roll-out of official access points and kiosks would enable Mongolia to embrace eGovernment as part of its radical transformation.

population in one central register. The details are then held on the card for the efficient identification and protection of individual identities, enabling the monitoring and control of the traffic of goods and people between Mongolia’s busy borders with China and Russia. The security features of the card also mean that the risk of fraud within the system has been substantially reduced.

At the moment, the focus is on the security and protection of individuals,

10 The Review

Help is just an eCall away

A pioneering European emergency-call system for

vehicles that aims to bring rapid assistance to road traffic incidents has piqued the interest of the Japanese automotive industry.

Every year, about 1.3 million people worldwide lose their lives on the roads, with up to 50 million more suffering non-fatal injuries. The human and economic impact of these tragedies is huge. Estimates suggest that, each year, traffic incidents cost countries between 1% and 3% of their gross national products, largely due to the price of treatment for victims and lost productivity.

Many governments have attempted to introduce safety measures to reduce collisions, with the majority of these initiatives tending to focus on enhancing road infrastructure. Japan, for example, reduced fatalities by 25% between 1970 and 2008 by improving street lighting, sidewalks and traffic flow at intersections.

Now, countries around the world are waking up to the possibilities presented by technology as a means of improving road safety. The European Union has pioneered this approach, but any solution to such a universal problem will surely come on a global scale.

In 2009, the EU launched its eCall initiative, a pan-European, in-vehicle M2M (machine-to-machine) emergency call system designed to bring rapid assistance to drivers involved in collisions. In the event of a serious road incident, an eCall-equipped car automatically dials 112

(the Europe-wide emergency number) and gives emergency operators information relating to the incident, including GPS coordinates, the time of the incident and the vehicle identification number.

Operators can then dispatch appropriate assistance, which will speed up the response times of emergency services by 40% in urban areas and by as much as 50% in rural locations.

By enabling qualified and equipped paramedics to get to the scene within the crucial first hour of the incident,

the eCall system has the potential to save about 2,500 lives in the EU each year and reduce the severity of injuries by 10-15%.

Initial concerns about data protection and the potentially prohibitive cost of implementing such a system have proved unfounded.

As eCall normally “sleeps,” it does not allow vehicle tracking outside of emergencies and, as the M2M technology it uses already exists, rolling it out across the EU will cost less than €100 (US$134) for each device when fitted in the factory. As a result, the European Commission wants all new cars to be fitted with eCall devices from 2015.

Given the service’s potential, Japan is sitting up and taking notice. In January, Gemalto joined forces with Yokosuka Telecom Research Park and Japan-based developers Fujitsu Ten

and ERTICO to launch the first eCall facility outside of Europe. Allowing Japanese automakers to test solutions locally that are destined for the EU will save time and money while giving new impetus to the EU-centered initiative, which may eventually become common practice across the world.

A pioneering telematic initiative in the EU will soon make its way to Japan

auThor KATH YOUNG

>

The eCall system could save about 2,500 lives in the EU each year and reduce the severity of injuries by 10-15%

3

Scan this QR code to be taken directly to Digital Singapore

11

welcome to digital singaporeThe latest in Gemalto’s series of guides to our digital planet turns the spotlight on this island nation with a population of just five million. Despite its size, Singapore is the world’s fourth largest financial center and has a vibrant economy in which technology plays a leading role: Singapore has one of the highest concentrations of tech companies outside of Silicon Valley.

Singaporeans love their gadgets, too. They’re the most prolific users of social media in Asia and have extremely high rates of mobile phone usage and broadband penetration.

Digital Singapore examines key technological developments, including:• mobile payments using NFC• the migration to secure chip-based banking cards• biometric authentication at immigration checkpoints• Singapore’s 10-year ICT masterplan.

To find out more, visit countries.gemalto.com/singapore

gemalto.com

Have something to say?We want to know what you think – that’s why we run a reader survey with every issue of The Review. If you have ideas about how to make this award-winning magazine even better, or would like to suggest article ideas, get in touch.

Just visit review.gemalto.com and follow the instructions. You can also subscribe to the magazine there, free of charge.

12 The Review

New graduates have never known a world without the internet. What effect will they have on education, employers and society?

auThor ADAM OXFORD

IllusTraTIon PADDY MILLS

13

>

society_ Digital natives

gemalto.com

As 21-year-old university students across the globe begin to cram for their final exams, they

are probably not aware that they share their cohort year with a project that came of age a long time ago. They will be the first generation of graduates who were born at the same time as the World Wide Web, which Tim Berners-Lee switched on at the CERN particle physics laboratory in Switzerland in August 1991. When they receive their certificates in front of faculty, family and friends, they will arguably be the first true “digital natives” to enter the workforce.

Given the social, political and economic changes the internet has wrought in its short existence, this moment is hugely significant. But what does it mean for the young people themselves, their potential employers, and society as a whole?

Mark Prensky coined the term “digital natives” in a 2001 article for MCB University Press, “Digital natives, digital immigrants.” He addressed the difficulties faced by the “immigrants”: teachers who learned their craft before the communication revolution of the internet and cheap, ubiquitous IT tools.

“Digital immigrant teachers assume that learners are the same as they have always been, and that the same methods that worked for the teachers when they were students

will work for their students now. But that assumption is no longer valid,” writes Prensky. “Today’s learners are different.”

Prensky, however, challenged the alarmist view that children growing up on a diet of video games and downloadable music had short attention spans. “There is no reason that a generation that can memorize over 100 Pokémon characters with all their characteristics, history and evolution can’t learn the names, populations, capitals and relationships of all the … nations in the world,” he wrote. “It just depends on how it is presented.” Where tablet computers have been used in schools, teachers report that, used correctly, technology encourages “self-directed learning,” which is second nature to digital natives.

“The real revolution of e-learning is on negotiated learning,” says Tim Allen of educational distribution specialist AdvTec. “In this environment, shared knowledge is at the forefront of learning. [They share] their thoughts with others via blogs, wikis and constant communication about what they’re

learning. Twitter is absolutely normal as part of daily life; it’s just another part of the world they inhabit.”

Writing on the Scientific American blog, teachers Jody Passanisi and Shara Peters claim that the gap between digital natives and digital immigrants has widened in the past decade. According to the authors, the children they teach pick up and use technology quickly and instinctively.

“Many students today – those who have access to these technologies – can edit professional-appearing homemade movies on iMovie, improving the quality of their work beyond anything that was close to being possible a few years ago,” they write. “Most will probably know which app to use to keep track of their homework assignments, and even how to make flashcard-like study aids to help them when they study.”

But there are still lessons that these students can learn from those who are old enough to remember doing research using books or microfiches at the library.

“Our students have no frame of reference of a ‘pre-internet’ world,” Passanisi and Peters write. “They are accustomed to working with intuitive electronics that provide instant

1991The year the World Wide Web was switched on

One of the biggest and most unexpected successes of 2012 was the Raspberry Pi. In the age of affordable tablets, with their deceptively sophisticated and user-friendly interfaces, the idea that a US$25 circuitboard with a rudimentary PC processor and unrefined Linux operating system would catch on seemed unlikely.

Designed as a low-cost tool for introducing school pupils to programming concepts, the Raspberry Pi aims to address the fact that digital natives are growing up knowing how to use technology and apps, but not how to code for them – a problem flagged up by tech luminaries such as Google Chairman Eric Schmidt.

Initially, the Raspberry Pi Foundation thought it would sell about 100,000 devices in its first year, but such has been the enthusiasm from educational establishments and homebrew hackers that it now looks likely to break the million-sales mark within 12 months.

Pi in the sky

14 The Review

gratification, and when they are not able to be ‘done’ quickly, they tend to become discouraged.”

As the students Prensky wrote about in his article become job seekers, however, it’s becoming obvious that, despite having had plenty of time to prepare, many companies, both large and small, still struggle with the demands of the now grown-up digital natives as both customers and employees.

Tech as social enablerKatie Bacon has been a youth and community practitioner for a decade, helping disadvantaged children and victims of drug abuse in the US, Canada, Japan and the UK get back into the job market. She first became aware of how young people use the internet in 2005, noticing that, while many of her most vulnerable charges had transient physical lives, the digital lives they had built on Bebo or MySpace were one of the few constants. By learning how to communicate with troubled young people in a format that suited them, Bacon was able to build up trust and understanding in a way that her colleagues sometimes struggled with.

Bacon now runs Online Youth Outreach in the UK, teaching young people how to use the internet to create, as well as consume, content and see it as more than a social tool. She also runs workshops for recruitment agencies and businesses that want to engage with a young, digitally aware audience.

“Businesses are spending hundreds of thousands of pounds trying to interact with this audience,” says Bacon, “but often they don’t even know the right questions to ask.”

She says that many organizations suffer as a result of senior managers not understanding opportunities within the digital native generation, and young, inexperienced employees who can’t communicate their ideas successfully. Digital natives also raise interesting new HR questions that Bacon sets out to answer.

“If you’re an international organization, how do you create a localized touchpoint of engagement

with your clients when different people are working in offices all over the world?” Bacon asks. “Do your employees know how to manage conflict and be considerate when conversing online?”

Businesses have been slowly adapting to the needs of digital natives over the past decade, but as Nichole Kelly, president of social media analysis firm SME Digital, points out, the process is far from over. She says one of the biggest cultural changes that companies have to understand is that, for the new workforce, flexible working and home working aren’t enough to accommodate their expectations. Used to thinking digitally and globally, the brightest and best want to literally choose their work surroundings for themselves.

“Citrix [an American software company] was early to recognize this movement and created the blog Workshifting to support all of us digital nomads and allow us to chart our journey,” she says.

“Personally, I think this is the most important change that is going

society_ Digital natives

“They share their thoughts with others via blogs, wikis and constant communication about what they’re learning”

>

15 gemalto.com

to slap Corporate America in the face, and turn around and do it again. There is a wave of employees who want to be free to move about the country, or, better yet, the world. We want to be able to travel and live in a perpetual ‘workcation’.”

Citrix justifies its commitment to the “workcation” philosophy by pointing out the immediate benefits to employers, including high staff retention and savings on commuting costs. “Millennial workers appreciate [workshifting] as a way to work on their own terms,” explains Kate Lister, who researched a white paper for Citrix on the subject.

If there’s one issue employers should be aware of, however, it’s security. Bruce Schneier, Chief Security Technology Officer for British Telecom, has long warned that services such as Facebook are eroding young people’s sense of personal privacy.

This raises two important issues for employers to consider: first, there is a need to educate young workers about the importance of security and not sharing; and, second, there is an

ethical dimension to dealing with the amount of information that digital natives voluntarily surrender.

As Katie Bacon at Online Youth Outreach puts it: “Going on to someone’s personal, public profile can be like going into their house without their permission.”

IT departments must address the challenging of keeping sensitive corporate material safe, but the most advanced companies don’t restrict access to social networks. Instead, they educate their employees about how to stay safe and have easy-to-understand social media guidelines.

Intel, for example, asks its employees to use their own names on social media, disclose vested interests and follow basic etiquette such as treating competitors with respect. Reasonable rules such as these are far more effective than a more draconian approach to social media – which can also drive digital natives to other, more enlightened organizations.

seismic shiftDigital natives bring optimism, energy and a sense of change to the

Simply having a computer in class doesn’t mean you are smarter, cleverer or better.

It’s what you do with that in the process of learning that makes

a difference. Tim allen, director, south africa

>

16 The Review

workforce. David Houle, futurist and author of the book Entering the Shift Age: The End of the Information Age and the New Era of Transformation, says the changes that will take place during this decade, as digital natives mature, will be the most extreme in human history. He describes the end of “legacy thinking” from the pre-digital generation, and says the digital natives take concepts such as internationalism and energy efficiency for granted.

“Their connectedness, their collaborative ways of engagement and need for constant feedback, and their civic-mindedness, are creating a new way of looking at and living and working in this new world,” explains Houle.

He goes further, distinguishing between “millennials” – those born before 1992 – and digital natives,

who are younger. He says that the potential for these children to revolutionize the enterprise is almost beyond imagination.

Predictions are always dangerous things, however, and it may be surprising to discover that many hip young things are increasingly abandoning the internet for non-networked pleasures such as vinyl LPs and columns like Paul Miller’s “Year Without the Internet” diary on tech website the Verge. It’s safer – for the time being – to simply acknowledge their presence and give them the space to lead enterprise where it has to go.

“While the millennials will be creating new social, economic and political web-oriented patterns and structures,” Houle concludes, “the digital natives will be leading us into a new level of consciousness in the decades ahead.”

My four-year-old daughter has been playing with the

computer since she was two. It’s amazing how quickly they

pick things up. nina august, graphic

illustrator, wimborne, uk

>

gemalto.com 17

how do you define “digital natives”?An interesting trend we’re seeing with college students is how social tools are eroding use of the standard suite of products that older generations used to organize and manage their lives. Calendars, phones and email are “back-up” tools for this generation. Social tools provide real-time information about “what’s happening now” – whether it’s a deadline, party, news or gossip.

That said, attaching “digital native” to a specific generation may not be totally accurate. When I started my career, I was a native of a place saturated with email, calendars, word-processing software and paint programs. Through my career, I boarded one of the first boats to a new world of online communities, instant messaging and unified communications. In the past 10 years, I’ve continued my migration to the land of social and professional networking, digital media and mobile.

what expectations do digital natives have of their workplace, compared to older employees?People love being experts. Once you know how something works, it’s hard to change to a new way of doing things. This actually makes a lot of cognitive sense. Old tools and techniques usually feel like the most efficient way to get things done.

Leveraging this insight, companies like Apple and Google have made sizable investments in higher education. More than half the colleges in the US use Gmail as their official email provider and make Google Apps available for free on campus. Students who kick off their college career using these tools think it’s natural to use cloud-based collaboration tools for projects, and expect fast, smart, integrated email services.

So, when students enter the workplace, they are often surprised at the “primitive” systems available to

them. They miss access to their social networks and the real-time information. They use email for work purposes, but I have to text my daughter to ask her to read her emails – it’s not her native habitat. Another characteristic of digital natives is that they seem much more willing to switch to new tools. Most often, this is not driven by an assessment of features, but rather, they follow their friends wherever they go.

what are the benefits to employers of hiring digital natives? what tips do you have for recruitment and retention?We still haven’t cracked the nut inside the workplace regarding use of social networking and communication tools. It’s still an email-driven world, although we have seen wikis and cloud-based collaboration make some traction in the past 10 years.

Interns and graduates are also living in a world promoting entrepreneurship and innovation. LinkedIn’s Hack Days provide a forum for all employees to express their creativity and present fresh ideas for both customer-facing products and internal tools – some of which have made it into end-products, or have seen rapid adoption inside the company. Fostering a culture of innovation is a great way to attract and retain graduates – and these projects will almost certainly integrate cutting-edge technologies.

how important is “personal branding” to digital natives?We need to teach each new generation of professionals how to create and manage their professional brand online – and why it even matters in the first place. Certainly, a complete and compelling profile is a first step. However, increasingly it’s your online activity that will draw attention. We recommend that members participate in groups, comment thoughtfully on articles and posts, answer questions, and build a strong network of the

people they’ve met at school and in their professional experiences.

are there skills that digital natives typically lack in which they could be trained?I think of our industry as having three distinct waves. There were the years of hardware and “golden master” software. Software was hard to build, and we adopted tools and processes from large-scale, complicated manufacturing industries. Because it was difficult and expensive to create software, we did a huge amount of upfront work to understand our markets, customers and competitors.

When the internet burst on the scene in the mid-90s, many traditional industries – photography, publishing, banking, shopping – were transformed. Still, these were traditional industries with existing behaviors, regulations, and customer needs and expectations, so many of the earlier upfront practices were still intact.

The third wave – Web 2.0 – was a marked departure from these tried-and-true processes. [Today] too many companies no longer engage in the hard work of strategy, planning, process and deep customer engagement. The energy and innovation that arrives with each new wave of graduates is a great input to the process, but teaching these “old school” skills is important for long-term success.

do employers need to be more explicit about corporate security policies with this online sharing generation?The move to cloud computing, SaaS, and the utter lack of friction for the transmission of information means that companies are much more likely to spring leaks than even 10 years ago. It’s not just the new generation – everyone in a company needs ongoing training about maintaining privacy, where and when to communicate, and how to secure hardware, software and networking services.

society_ Digital natives

Generation Y in the workplace

Christina Allen, Director, Product Management at LinkedIn in the US, gives us her insights into the habits of digital natives from the professional social networking site’s perspective

18 The Review

Innovation_ Mobile payments

Touch and go

Austin and Salt Lake City were the first US cities to try a new mobile wallet pilot scheme. What were the results?

auThor KATHY CHIN LEONG

Salt Lake City and Austin seem as diverse as two cities can be. One is a university community with a vibrant music scene, while the other is a more traditional city

with a service-oriented economy. Nevertheless, both serve as state capitals, for Utah and Texas respectively, and support a balance of large corporations and small businesses. And here’s the latest point of commonality: Salt Lake City and Austin are the first two cities to pilot the Isis Mobile Wallet™.

Isis™, the joint mobile commerce venture between AT&T Mobility, T-Mobile and Verizon Wireless, allows consumers to pay for goods and services with their Isis Ready™ smartphones instead of using physical cash, credit or debit cards. The launch is further cementing the ever-changing mobile payment landscape in the US and providing a secure, trustworthy option for adopting this technology.

Since the pilot’s launch in October 2012, the adoption rate has been steady. Merchants report that a growing number of customers use their Isis Ready phones at the checkout stand

each day. Consumers in Austin and Salt Lake City can use the Isis Mobile Wallet at hundreds of locations across both markets, including nationwide retailers such as

Macy’s, Aeropostale and Foot Locker, as well as independent local partners.

For sure, the cool factor is real. Chip and PIN hasn’t made it to the masses in the US yet, so most folks slide their credit cards on a

traditional sales terminal. Isis users simply tap their phones on the terminal to make the transaction.

Here’s how it works: to pay for an item, the customer enters a four-digit PIN on his phone, touches the phone screen to select his type of payment card and then taps his phone on the terminal. The phones must be equipped with NFC (near-field communication) technology, which allows devices to wirelessly connect and exchange information within a short distance.

To date, 20 Isis Ready smartphone models are available, with more coming to market this year. Users can also load offers and loyalty cards onto the wallet.

smoother smoothiesBrittany Hansen, who manages a Jamba Juice in Salt Lake City, notes that a steady number of customers use Isis to buy their smoothies. Those customers, she says, have shown confidence when navigating the simple transaction. The benefit for those on the other end of the cash register is that the transaction is about five seconds faster.

The nearby Beehive Tea Room also sees Isis customers using their wallets for payment daily. According to server Cylie Hall, these early users are thrilled to see a transaction completed.

Isis is also making headway in Austin. At the Zeus Barber Shop, manager Matt Spencer says his store will soon receive an Isis Ready terminal. “They showed us how to use it, and it will be easier for us to track customer data,” he says excitedly.

“People who see it are curious, and they ask us about it”

19 www.gemalto.com

I definitely would use it myself because I think it’s

kind of slick chris petrogeorge,

owner, pepper’s pita

At optometrist Pinnacle Vision, the Isis Ready terminal is also ready for users. “People who see it are curious, and they ask about it,” says office manager Pam Stodgll. But some customers still worry about security.

security educationAddressing that security question is paramount for Isis. It has therefore made YouTube videos and TV ads explaining why this technology is safer than using a traditional plastic card. If the Isis Ready phone gets stolen, the user makes a single phone call to the carrier (AT&T, T-Mobile or Verizon) to freeze the Isis Mobile Wallet so no information, especially credit card and other data, can be abused.

Security concerns aside, it will take time for mobile wallet technology to replace the physical wallet. But could this pilot herald the coming of a cashless society in the United States?

The timing for tech innovation seems right. The market is vast: Isis can reach a total of 230 million combined customers from Verizon, AT&T and T-Mobile alone. Between them, the three companies also operate more than 20,000 retail outlets in the US.

“This is simply the beginning,” says Ryan Hughes, Chief Marketing Officer for Isis. “We are pleased with the results of our launch in Austin and Salt Lake City and look forward to what the future holds for mobile commerce.”

20 The Review

Sign here, pleaseGoodbye, lengthy paper contracts. Legislation in the US and EU mean that electronic signatures have the same legal significance as handwritten ones on paper. They range from a simple “click to consent” to biometric-enabled tablets that record not only the shape of a signature, but also how long it takes to write – as individual as a fingerprint.

Phoning it inMany companies now use smart cards that employees use to enter the building and log on to the computer network. But as part of the mobile trend, building and network access will soon be verified through secure NFC chips in our smartphones. You can even download temporary access for visitors.

Desks go the way of the dodoIn the future, you may dock yourself (via wearable tech) into a chair that takes you to a private or public virtual workspace, meaning those client meetings can still take place even if you’re sitting in your living room.

The new way of workingPeople entering the workplace for the first time want to work flexibly and remotely. The benefits are myriad: fewer carbon emissions, more time to spend with the family, fewer distractions (did you know we’re interrupted every three minutes when in the office?) and more accessible jobs for people in regions with minimal established IT infrastructure. What’s not to love about the office of the future?

auThor MOLLY BENNETT

IllusTraTIon NEIL WEBB

Innovation_ Office of the future

Good morning, Tokyo!Just because a meeting is 5,000 miles away doesn’t mean you can’t be there instantly. Musion TelePresence is one example of a company that can facilitate face-to-face contact through holography (think Princess Leia or Tupac Shakur) – so your boss may soon be appearing in your home office.

Save a tree (or 300)With the paperless office still some way from becoming reality, here’s the next best thing: Taiwan’s Industrial Technology Research Institute has developed thin, flexible electronic paper that is not only reusable, but can also be written on (and then erased). Think of it as a digital white board that you can roll up.

Meet me in the conversation pitOur working lives are becoming ever more virtual and flexible, but face-to-face contact is still important. All the space left by those redundant desks may be replaced by IRL (in real life) lounges – spaces where people can come together for brainstorming or simply a bit of office gossip.

What work/life balance?The bring-your-own-device (BYOD) trend is gathering pace. On the horizon is NexPhone, a smartphone that, when connected to a compatible monitor and keyboard, functions as a full PC, meaning your work goes where you do. But for those concerned about work creeping into their personal lives, devices such as the BlackBerry Balance offer separate work and personal logins.

Just tap for a snackWith near-field communication (NFC) vending machines, forget rummaging around for spare coins. Get your afternoon chocolate fix by waving or tapping your contactless-enabled payment card or smartphone on the vending machine reader.

21 gemalto.com

22 The Review

Island

intelligenceThe lands Down Under have been blessed with great weather, abundant natural resources and fertile land – and now Australia and New Zealand are entering the digital economy in a big way

auThor JUHA SAARINEN

23

society_ Australia/New Zealand

gemalto.com

>

Fierce enemies on the sporting field, Australia is the Goliath to New Zealand’s David, with the former country enjoying

a solid economy, thanks mainly to its resource-driven exports to China.

New Zealand, substantially smaller and with fewer natural resources to dig out of the ground, relies on its traditional agribusinesses, exporting its world-class meat and dairy products to Asia and beyond.

With stunning natural scenery, a high standard of living and a highly educated workforce, Australia and New Zealand have been called the “lucky countries” – but lately, this nickname has been put to the test. While they were two of the few developed nations to escape the worst of the global financial crisis, Mother Nature has sent a different kind of trouble in the form of a string of natural disasters.

The northern Australian state of Queensland suffered a series of floods during December 2010 and January 2011, with 38 dead and nine missing. The flooding also caused damage of an estimated A$30 billion (US$31.6 billion).

Later in 2011, the city of Christchurch in New Zealand was struck by a devastating earthquake. The string of aftershocks leveled much of the city, killing 185 and injuring thousands. The cost of rebuilding and repairing the damage is estimated at NZ$15 billion

(US$12.6 billion), making it the third costliest earthquake in the world.

As unlikely as it seems, however, there may be a silver lining to these terrible events – at least for those in the countries’ technology sectors. With pressure on both governments to reduce costs to the public purse, information technology and, in particular, cloud computing, will play an important role in making the delivery of government services more efficient and less costly.

21st-century governmentFor a huge country like Australia – a flight from Perth to Brisbane takes between four and five hours – networked IT offers a solution to the inconvenience of distance. The country started conducting its population census electronically in 2010 and aims to glean 80% of the data that way by 2016. It hopes to save millions of dollars by not having to hire an army of temporary census takers, and also to make the exercise faster for everyone involved.

New Zealand’s government has also gone digital, with cloud computing allowing many services to be accessed over the web. To ensure that citizens’ personal data is secure, the government has developed

80%The amount of census data Australia hopes to gather electronically by 2016

Getty

24 The Review

the igovt logon and identity verification services. It’s proved to be a convenient – and thrifty – proposition for both citizens and central and local government.

For instance, New Zealanders can quickly file their income and other tax returns online with a single login that gives them full access to all the information they need. igovt is used at the NZ Companies Office, too, as well as several other government departments, making it simple for employers to check applicants’ visa status, and for voters to change their enrollment details, among other services.

And with the igovt identity verification service, citizens won’t need to present documents repeatedly to each and every government service provider. Users

log on to the service and give consent for their information to be supplied to the service provider, keeping control of personal data in citizens’ hands. All this saves time and money.

Australia is also moving to digitally delivered government services. One example is the Gemalto-provided Sealys electronic driver’s license for the state of Queensland. Some three million Queenslanders will get the secure, more durable new licenses, which are difficult to copy and counterfeit. The data is held in a strongly encrypted format on chips inside the permits, minimizing the risk of identity theft. Police will also find it quicker and easier to identify drivers.

The Australian eHealth program, which provides secure online access and personal control of people’s

New Zealand’s igovt makes it easy for employers to check applicants’ visa status and for voters to check their enrollment details

>

Getty

>

25

society_ Australia/New Zealand

gemalto.com

Sometimes it feels as if I’m running my entire life from my smartphone, from work to friends to social media and financial stuff.

alessandra cohen, 25, content manager, sydney, australia

health records, is another example of IT being used for the fast and efficient delivery of government services. It’s a crucial development for a country in which people can live hundreds of miles away from their local doctor. Through the eHealth scheme, Australians can choose what goes into their Personally Controlled Electronic Health Record (PCHER). They also get to decide who can access their PCHERs, such as doctors, hospitals and other healthcare providers.

country connectionsBoth Australia and New Zealand are investing in building national high-speed broadband infrastructures – not only to support the above initiatives, but also to help create strong digital economies to supplement both

countries’ current resource- and agriculture-driven ones.

Fiber-optic broadband networks are being rolled out to replace ancient copper telephone lines that are reaching their capacity. The new networks should provide the broadband speeds needed to cater for citizens’ demand for data, which is doubling every year. Much of this is down to smartphone and tablet use, which is booming, and privately owned telecom companies in both countries are spending big on faster mobile broadband. In 2012, Telstra Australia became the region’s first provider to introduce super-speedy LTE for handsets and modems.

Storage infrastructure has also been booming, with Australia’s largest city, Sydney, now the data center capital of the region. It is

home to many of the 50,000 data centers that have been built at a record pace over the past few years.

pay it forwardAround the world, the personal check is fast approaching extinction, and Australia and New Zealand are no exceptions. Cash usage is dropping, too, with people preferring to use debit and credit cards and internet banking.

Contactless and mobile payments are the next natural steps. Australia has one of the world’s highest deployments of contactless EMV infrastructure, making it one of the key countries in the world where near-field communication (NFC) is likely to catch on. Since 2008, the major banks in Australia have migrated their card portfolios to EMV dual interface (DI) cards, which

Getty

Getty

When I’m overseas, I can’t believe how good public transport is in most

developed places and how easy it is to use. It’s good to see that electronic

ticketing is happening in New Zealand too, but we need to be faster

or people will never get out of cars and stop clogging the roads.

dave paraone, 43, librarian, auckland, nZ

A$80The amount Kiwis can spend using their PayPass-enabled card or smartphone

>

society_ Australia/New Zealand

26 The Review

Elsewhere, contactless payment provider Snapper has teamed up with mobile telecoms company 2 Degrees on the Touch2Pay NFC system and, in September 2012, Telecom collaborated with Gemalto, Thales of France and the Westpac bank to set up a mobile wallet trial.

Online banking at home is also very popular, thanks to broadband becoming almost ubiquitous. Last year, the Australian Bureau of

Getty

Australia is trying to do away with paper for its population census in favor of digital data collection. Could electronic voting be the next big civic development? Three of the most populous states in Australia – New South Wales (NSW), Victoria and Queensland – have expressed interest in eVoting, but progress is slow so far.

Victoria has started an eVoting project, but legislation awaits. NSW passed an eVoting law in 2010, but has not said when it will put it into practice. And, having considered eVoting proposals, the Queensland government is grappling with perceived risks including interception of data and voter verification.

It’s surely around the corner, though. eVoting has been implemented successfully in a number of other countries, including Brazil and Estonia, and the electoral commissions in Australia are certain that everyone wants eVoting. They estimate that at least a third of voters would embrace it right away, especially those who are visually impaired. With voting being compulsory in Australia, the easier the government can make the process for citizens, the better.

Australia votes on eVotingnow make up 80% of the market. What’s more, in 2011-12, the two largest retailers in Australia – Coles and Woolworths – installed contactless EMV terminals in all their stores. These two retailers account for 60% of retail transactions in Australia.

In 2012, Commonwealth Bank was the first Australian bank to launch NFC commercially. Since then, Westpac, ANZ, GE Capital and Coles have all launched NFC pilots on Samsung Galaxy S3 phones in partnership with major Australian telecoms providers such as Vodafone and Telstra.

Meanwhile, the MasterCard PayPass

system was used extensively during the 2011 Rugby World Cup at stadiums around New Zealand. It uses secure NFC technology to allow people to make contactless payments of up to A$100 in Australia and NZ$80 in New Zealand using their PayPass-enabled payment card or smartphone.

Statistics noted that more than four-fifths of the country’s households used the internet every day. Online banking was the third most popular internet activity, with almost three-quarters of people interacting with their bank over the web.

Australia and New Zealand are both serious about digitizing everyday life – after all, with perfect weather and the beach waiting,who wants to waste time andmoney on admin?

gemalto.com 27

W hile most of us would dread the idea of being without cash, two technology bloggers were given a chance to do just that: swap traditional forms of money for contactless payments.

For 10 days in November 2012, Gemalto asked Mobile Industry Review editor Ewan MacLeod (right) and Jon Choo (left), who blogs at jonchoo.blogspot.com, to complete a series of tasks using pre-paid Samsung Galaxy S III mobile phones fitted with secure, contactless micro-SIM cards. The objective was to find out who would survive best in London without cash or credit cards.

The phones feature near-field communication (NFC) technology, which allows you to pay by waving your contactless-enabled phone or card over a reader. The phones were also preloaded with Quick Tap – a payment application developed by Orange and Barclaycard that links the NFC technology with the phone’s SIM card. Combined, the system allows users to pay for items securely at various contactless payment terminals.

For MacLeod, the idea of swiping his phone to pay for things was an alluring prospect. “I want ease of use,” he said before the challenge. “I want to tap and be done. I also want to look rather sophisticated by ‘swiping’ my phone instead of my credit card.”

Although the pair successfully finished numerous tasks – ranging from buying lunch to sending a postcard – other assignments proved more difficult. Both struggled to pay for

Thecontactless challenge

Two top London bloggers swapped traditional tender for contactless-ready mobile phones. How did they get on?

auThor MARK ALEXANDER phoTo TOBY AIMES

Trends_ NFC

To read more about Gemalto’s Contactless Challenge, visit blog.gemalto.com/telecom or scan this QR code

a haircut, and going to the movies was a “self-made disaster,” according to MacLeod, after he made the assumption that his local Odeon accepted contactless payments when it did not. Choo didn’t fare much better. After trying six cinemas, he described that particular test as “ridiculously impossible.” It’s a shame, as movie theaters are the ideal environment for contactless, which could speed up those long lines for tickets or popcorn.

Indeed, a lack of signage, poorly trained staff and a spending limit of £20 were among some of the obstacles encountered during the test. During one encounter, MacLeod had to educate a barman about the capabilities of his contactless-enabled terminal. Choo eventually made his first contactless purchase at a small coffee shop, which was the first place he found with clear signage.

Perhaps not surprisingly, large chains such as McDonald’s and Subway were among the first UK retailers to endorse contactless payments. They also had well-trained staff and won business because of their early implementation of the terminals.

Inevitably, this fledgling technology will grow in visibility and availability. “I honestly can’t wait for [it] to take up,” says Choo, the eventual winner of the challenge. “Using it was second nature. I am convinced by a contactless and cashless future.”

Despite coming second and experiencing numerous NFC “wobbles,” MacLeod is also looking forward to the freedom of making contactless payments. “It really is brilliant tapping your phone, grabbing your sandwich and walking away. I love it.”

28 The Review

solutions_ Mobile marketing

mobile marketing goes mainstream

In a fragmented media landscape, companies have to fight for consumers’ attention. A new report looks at how mobile marketing can create dialogue and build loyalty

auThor PEGGY ANNE SALZ

It’s time for companies to rethink how they connect with their customers. The rise of the empowered consumer, particularly digital natives who grew up online, has turned up the pressure on marketers

and mobile operators to embrace strategies that respect people’s desire for content, marketing and communications on their terms.

Out with the old and in with the new. The “old school” sledgehammer approach, which was all about shoving unwelcome messages at consumers, is broken. The “new school” is all about earning people’s interest through encouraging engagement and building trust and loyalty.

This approach, which aims to change the communication paradigm from interruption to conversation, is particularly well suited to mobile. It allows companies to reach out to customers wherever they are. And who doesn’t like hearing that beep when a new message comes in?

But people aren’t a captured audience, eagerly awaiting marketing messages as they move through their daily routine. They also expect that any exchange with marketers or mobile operators will be personal, relevant and transparent. More importantly, they must have chosen to receive these messages, rather than being sent them without permission – because they’ll only go into the spam folder otherwise.

mining the dataThis is the main message of Conversational Marketing and Commerce: Best Practices To Engage Your Customers and Empower Advocates, a new white paper produced by Gemalto with independent analysts MobileGroove and Portio Research. Based on a 2012 online survey of more than 2,400 consumers in France and the UK conducted by Ifop, a Paris-based market research and opinion poll company, the report examines mobile mega-trends, identifies best practices and reveals consumer attitudes about mobile advertising.

It highlights the pivotal importance of text messaging, a form of ubiquitous, direct and personal communication that allows companies to get closer to consumers than any other channel. According to Portio Research, text messaging is the king of non-voice communications because of its six core qualities: it is easy, cheap, quick, simple, universally acceptable and discreet.

Mobile messaging is also completely aligned with established consumer behavior, and even the rapid advance of smartphones hasn’t changed consumers’ dependence on it to connect with the world around them.

From banks to boutiques, an increasing number of companies are beginning to integrate the principles of permission-based mobile marketing into their strategies to connect with customers.

One company that “gets” messaging is Coca-Cola, which has declared it “the number one priority” in its comprehensive strategy to reach a global audience and increase customer engagement. The brand’s “Move to the

1. ask for permission first: Mobile may be able to deliver more data and context, but the best insights come when companies simply ask their customers outright.

2. continue the conversation: Start by asking for basic information, such as interests, personal preferences and motivations, but don’t stop there. Companies should use text messaging to refine and improve their customer segmentation, ensuring they get personal and relevant information and communications that are essential to boost customer loyalty.

3. build engagement on trust: Respect individual privacy, meet consumers’ requirements for relevant messages and implement strategies that put the customer in control.

The three golden rules of mobile marketing

29

Getty

gemalto.com

Beat” campaign tied to the London 2012 Olympics was rolled out across more than 100 countries and exceeded expectations in all markets, with Canada reporting that “engagement rates averaged about 45%.”

Achieving results like these requires companies to implement strategies that put the consumer in control of his or her experience.

permission is everythingThe report shows that the vast majority of respondents are “annoyed” when they receive messages from companies that have not asked permission first. A whopping 82% of survey respondents said that opt-in was a condition for them to accept marketing. The vast majority of respondents (90% in the UK and 87% in France) also demand an easy way to opt out of receiving messages they find neither relevant nor interesting.

But the real news is how marketers are missing the mark with messages that recipients don’t perceive as valuable. About 80% of respondents gave a thumbs-down to the messages they receive because they simply “do not offer any attractive benefits.” It’s a dangerous disconnect that marketers and mobile operators could avoid by using a more conversational approach – supported by opt-in – to explore what their customers really want.

Ifop also conducted 718 face-to-face interviews with consumers in Brazil to find out what they thought about messages sent by marketers and mobile operators. Again, the vast majority of respondents (91%) said

they prefer messages from companies that have asked permission for the privilege. Specifically, 95% want the messages they receive to be relevant, and 96% want to be able to opt out easily.

All these observations lay the groundwork for three key best practices, or “golden rules,” that companies must follow to create compelling value for their customers (see panel, opposite).

Respecting these three golden rules is not only a courtesy to your customer; it’s a business imperative if you want to reach an audience that is genuinely interested in hearing what you have to say. The survey found that 60% of respondents are keen to accept and act on relevant messages and offers from their preferred brands.

When campaigns are executed correctly, companies succeed in laying the groundwork for more than effective marketing; they can boost loyalty, build relationships and maintain competitive advantage.

A whopping 82% said that opt-in was a condition for them to accept marketing

To watch a video showing how Gemalto’s Smart Message channel can boost your mobile marketing, scan this QR code

30 The Review

Big Apple, big dataNew York City’s non-emergency 311 service receives thousands of enquiries each day. The challenge is to put that data to use to improve the city’s public services

In a city of 8.2 million residents, what seem like small problems – leaky fire hydrants, noisy car alarms, disputed parking tickets – add up to big data challenges.

Each day, New York City’s non-emergency 311 service receives an average of 65,000 calls about these and all manner of other problems, with many other people visiting the website. Collecting, protecting and responding to this information is a sophisticated and often complicated undertaking. “There is an enormous amount of data flowing into our system each and every day,” says Mike Flowers, New York City’s analytics

society_ NYC 311

director for the Office of Policy and Strategic Planning. “But it is more than a data challenge – it is a workflow and resource management challenge. All these pieces need to work together.”

New York’s operation is far from seamless, however. The 311 system’s data is spread out between data centers in each of the city’s many agencies, which are located across the city’s five boroughs.

Many are based on completely different operating systems – some brand new, others using mainframe interfaces (“Like Pong,” Flowers says, referring to the rudimentary 1970s videogame).

auThor EMMA JOHNSON

Getty

“There is an enormous amount of data flowing into our system every day”

I love 311 – I’ve called to report broken traffic lights and water leaks on the sidewalk,

and to make noise complaints. Ida benson, 39, pr executive, astoria, Queens

31

Big Apple, big data

gemalto.com

But in 2011, Flowers’ department introduced a program that would go some way to linking these disparate systems and make better use of the data collected. The initiative was aimed at more effectively identifying illegally converted buildings – those that have been divided into smaller units to house far more people than is safe. Between 20,000 and 30,000 311 calls are made each year about this type of building.

Under the old system, each call made to 311 about an illegal conversion passed through the Department of Buildings system until an inspector physically visited the property and determined if a violation had occurred. But one of the problems of this system was that inspectors had 40 days to visit the property – meaning that people continued to live in unsafe homes for up to 40 days after the initial call.

Flowers and his team devised a risk matrix that cross-references data from other city departments with the 311 call and determines whether there is cause for immediate action. This other data is examined for indicators such as foreclosure, a tax lien, rats, fires or a history of 311 calls. It’s all combined to determine whether the property should be classed as high risk.

Today, 5% of calls reporting illegal conversions are flagged as high risk, and inspectors visit the property in question within five days. Of these visits, 70% to 80% result in immediate evacuations – compared with 13% before the new system was rolled out. “Complaints in and of themselves are not a predictor of whether or not there are unsafe conditions,” Flowers says. “Citizen intelligence is still valuable, but it is just one part of the puzzle.”

That’s what I call service The result is that unsafe buildings are identified more frequently, the people who inhabit these dangerous properties are removed more quickly, and inspectors’ time is allocated more effectively. “Essentially, people are safer in return for zero resource allocation,” Flowers says.

This practice of cross-referencing data was put into use during Hurricane Sandy, which devastated much of New York City. The 20,000 downed trees in public places required attention from multiple city departments: those overseeing transportation, sanitation, fire and safety, plus phone, gas and electric utilities. The New York City Parks Department is responsible for downed trees, but that system was disrupted when the chaos of the storm resulted in many calls being funneled through 911 – not 311.

Flowers assigned a programmer who “spent 10 hours MacGyvering code to extract data from 911 into 311” so that the city parks system could kick into gear. The forestry department was then directed to cut up felled trees and the sanitation department hauled them away. “This saved the parks department hundreds of hours of having to type in data” and sped up cleanup efforts after the storm, Flowers says.

All this improvisation and streamlining of information is not without security challenges. The 311 system is designed to collect as little personal

The 311 service is just one example of how the Big Apple has started to extract value from its data. New York City’s mayor, Michael Bloomberg, signed the Open Data Policy into law in March 2012, with plans for all data from city agencies to be available on a single online portal by 2018.

He said: “If we’re going to continue leading the country in innovation and transparency, we’re going to have to make sure that all New Yorkers have access to the data that drives our city.”

One way this has been put into practice is through the NYC BigApps contest, which offers US$50,000 in prizes for apps that use the city’s data to make New Yorkers’ lives better and is now in its third iteration. Past winners include Work+ (pictured above), which suggests places suitable for remote working, and Sage, which offers information on all the schools in the city.

Datasets are currently available on a dedicated Tumblr, nycopendata.tumblr.com, as well as nycopendata.socrata.com.

Bloomberg said: “This data belongs to the public, and if we make it accessible to everyone, the possibilities are limitless.”

Open for business

information as possible – complaints about a noisy bar or improper garbage disposal don’t require the caller to give a name or address, for example.

Robust security measures will only become more important as the amount of data grows – and while New York’s experiment in big data may have started simply, the possibilities are endless.

Digital planetshopping

auThor MOLLY BENNETT

Mobile commerce is big – and it’s getting bigger. According to eMarketer, mCommerce retail sales rose by 81% in 2012 in the US alone. Powered by the boom in tablets, this trend shows no signs of stopping. So what’s new in the rest of the world? UK

Getting to the shops is now even easier: since December, London buses have accepted contactless payments. Contactless RFID technology has been a feature of London’s public transit network since the Oyster card was introduced in 2003, but now passengers can use their NFC-enabled smartphone or payment card to get around on one of the city’s 8,500 buses. Source: bbc.co.uk

United StatesMobile loyalty programs are no longer the preserve of cash-rich big brands. Belly, Affinity, Perka and RewardLoop are just a few of the mobile loyalty start-ups that are marketing their services to America’s small enterprises. At a time when Main Street is struggling, this could be a great way to attract and retain customers.Source: zdnet.com

BrazilBradesco, one of Brazil’s largest banks, and Brazilian carrier Claro are due to introduce a virtual wallet service in the middle of this year. Aimed at the 46.8 million Brazilians without bank accounts, the wallet will allow them to get cash, shop, pay bills and transfer money using their mobile phones. Later in the year, the companies will launch an NFC payment service aimed at smartphone owners.Source: rcrwireless.com

32 The Review

Alam

y

isto

ck

South AfricaPayment Pebble is a plug-in mobile card reader that can take payment from debit or credit cards using a smartphone app, developed by payments company Thumbzup in conjunction with South African bank Absa. You connect the Pebble through a smartphone or tablet’s audio PIN, and then either insert or swipe the card to make a payment. With each device costing just US$40 to manufacture, Absa and Thumbzup are aiming the product at small businesses across the country.Source: nfcnews.com

GermanyIndividuals and small vendors in Germany have received a boost: they can now make smartphone-to-smartphone payments using Telefónica Germany’s mpass app for iOS and Android smartphones. All users need to do is select the recipient’s phone number and the amount is charged to their mobile phone bill or deducted from prepaid credit on the phone – avoiding the exchange of any banking data. Source: computerworld.com/au

South KoreaWith 35 million smartphone owners, South Korea is a fertile market for mobile commerce. So much so that mobile platform developer SK Planet’s 11th Street mobile market saw users make purchases worth 30 billion won (US$28.2 million) in November 2012 alone. Top of their wish lists are household and children’s items, but they’re also making bigger purchases such as refrigerators and motorcycles using their smartphones and tablets.Source: koreatimes.co.kr

gemalto.com 33

ChinaChengdu, the capital of China’s Sichuan province, is on its way to becoming a model city for mobile commerce. Telecom company China Mobile and the China UnionPay bank are helping promote the city’s mobile wallet offering and rolling out NFC terminals in local merchants. Change is also afoot in Shanghai, where China Unicom and China Merchants Bank launched their NFC mobile wallet service in November 2012. Source: zdnet.com

Get

ty

Get

ty

24kgThe amount of gold recovered by recycling a million phones

Goodbye plastic hello bamboo

As consumers have become more environmentally aware, the green credentials of the technology they buy is now just as important as the features they offer

auThor

DAVE HOWELL

IllusTraTIon

KATE COPSEY With their shiny surfaces and colorful screens, the latest smartphones represent the pinnacle of consumer technology. It’s no wonder that we’ve

fallen head over heels in love with them. But there’s more to your phone than meets the eye.

According to the Electronics TakeBack Coalition, recycling a million mobile phones can recover about 24kg of gold, 250kg of silver, 9kg of palladium and more than 9,000kg of copper. But did you also know that the rare-earth element europium is used to create the red phosphor, or luminescence, in a smartphone’s

screen? Or that your phone’s speakers contain neodymium-enhanced magnets? Or that lanthanum, a soft and malleable metal, is used to polish the glass of most mobile phones?

Although governments and private organizations are doing their best to encourage consumers and companies to recycle their old gadgets through charitable initiatives and legislation such as WEEE, only an estimated 9% of people do so, according to Nokia. Many gadgets

sit in drawers for years, “just in case,” even though they still hold value and are full of recyclable materials.

While recycling efforts continue, in recent years, manufacturers’ focus has turned to putting the environment at the heart of the design and manufacturing of smartphones and other gadgets, rather than relegating it to an afterthought.

Why is this so important? Take those rare-earth elements that make our phones the glossy machines they are. Most of the world’s 17 most sought-after rare-earths are mined in China, and global demand is expected to

reach 185,000 tons annually by 2015. These elements are only present in tiny amounts within the ore that is mined and must be extracted using acid baths, among other harsh techniques. As a result, in some areas of China, what was once highly productive arable land has been damaged. And with China recently announcing a cut in its export quota of these elements, technology developers are looking at alternative materials.

Think of a phone made from bamboo: when you upgrade, you simply remove the battery and circuitboard for recycling and throw the rest of the phone on the compost heap, where it will biodegrade harmlessly.

Manufacturers are therefore investing in new techniques using organic and environmentally friendly materials that will retain our current gadgets’ desirability, but don’t place a heavy burden on the earth.

For telecom companies and other players in the technology supply chain, this requires a multifaceted approach. Gemalto, for example, uses a number of metrics when designing and manufacturing its products, including its holistic Life Cycle Assessment. This evaluates all environmental impacts of a product or process, including greenhouse-gas emissions and soil and water pollution. The French Agency for Environment and Energy Management (ADEME) has also developed a universal assessment tool called Bilan Carbone that tracks greenhouse-gas emissions.

The United Nations’ Environmental Steward Strategy, which puts environmental responsibility in the hands of company executives, states: “Leading companies do not just embed, balance, diffuse and translate a

34 The Review

handful of environmental practices; instead, they take a comprehensive, cyclical approach to management.”

It seems companies are taking these lessons to heart – partly because the benefits to using earth-friendly materials and processes aren’t just environmental. For manufacturers, their products’ environmental credentials have the potential to differentiate them from their competitors. Generation Y and digital natives (see page 12) expect companies to act responsibly toward society and the environment, and savvy companies are capitalizing on this opportunity.

Late in 2012, the bestselling Samsung Galaxy S III became the first handset to achieve the UK-based Carbon Trust’s PAS 2050 product carbon footprint certification, the global standard for measuring the greenhouse gas emissions of goods and services over their lifecycles. And in 2009, Motorola unveiled the MOTO W233 Renew, which was not only the first carbon-neutral mobile phone, but also the first to be manufactured using recycled plastic.

Looking beyond plastic, manufacturers are starting to make more use of renewable and sustainable resources, with sometimes beautiful results. Bamboo is one such material: some types can grow 40 inches in a day and it has the same tensile strength as steel. A number of bamboo-based products made their debut at the 2012 Consumer Electronics Show, and the body of the Adzero phone from AD Creative also uses bamboo.

It’s not just smartphones that are jumping on the bamboo bandwagon. Asus has designed a laptop with a dark-brown bamboo exterior, and MemoTrek Technologies offers a bamboo USB stick. Dell even uses bamboo (and mushrooms) for some of its packaging.

Pandas need not worry about their favorite food becoming scarce, though – design studios are making

“Bamboo can grow 40 inches in a day and is as strong as steel”

use of plenty of other sustainable materials. French company Orée has designed keyboards made of maple and walnut from sustainably managed forests, and Italian design studio Spalvieri/Del Ciotto’s Maizy range offers solar-powered gadgets such as calculators, LED clocks and pocket lights made from polylactide (PLA), a bioplastic derived from cornstarch.

Indeed, the supply chain that forms tomorrow’s technology manufacturing could have a large agricultural component. Many organic substances, including corn, cellulose or starch-based materials, have already been shown to be promising alternatives to petrochemical plastics.

Manufacturers of consumer electronics are also opening their files to disclose in ever more detail how their products are constructed, and which elements of their supply chains affect the environment. HP was one of the first; in 2008, it launched the Global Citizen Report, which reveals key statistics about the environmental impact of its supply chain.

Businesses within the technology sector can no longer simply focus on developing their next shiny new products. Consumer awareness and pressure from environmental groups and government bodies are shifting the focus to more sustainable manufacturing. Designers and developers alike understand that they must look beyond petrochemical and rare-earth elements, while maintaining the functionality and aesthetic appeal that keeps our love affair with our gadgets going strong.

Innovation_ Greener gadgets

samsung galaxy s iiiFirst handset to achieve the PAS 2051 carbon footprint certification

Motorola MoTo W233 RenewMade out of recycled plastic, this was the first carbon-neutral phone

AD Creative AdzeroThis smartphone’s casing is made of bamboo

35 gemalto.com

Scan this QR code with your smartphone to watch a video that explains how Gemalto is making banking greener

Color innovation scoops awardNFC SIM gets

triple certificationGemalto’s PrintPixel security feature was named best new innovation at the annual Sesames awards, which were held at the 2012 CARTES & IDentification industry conference in Paris. PrintPixel allows color photographs to be permanently embedded into polycarbonate identity cards, retaining the secure, deep-marking characteristics of greyscale laser engraving, but in full color.

The UpTeq NFC high-end SIM supports contactless payment and other secure services – and it’s now been certified by American Express, MasterCard and Visa. The world’s three largest global payment networks’ strict standards mean consumers can be confident that their payment data is secure. The UpTeq NFC SIM, which is already certified by EMVCo., can also be used for mobile identification, coupon redemption, loyalty programs and transit cards.

asia & oceania

news from gemalto

Getty

Digital bytes

Standard Chartered Bank is bringing Gemalto’s Ezio onCard Pad & Pay to Singapore in the city-state’s first large-scale rollout of a display payment card. Jointly developed with Nagra ID Security, the device has a small LCD display that combines EMV payment, one-time passwords and transaction signing for use when eBanking. Gemalto is also providing the authentication server, card personalization, fulfillment and project implementation for the bank.

singaporeans’ new way of banking

36 The Review

25 millionThis is the number of eDriver’s licenses and vehicle registration certificates Gemalto has now provided to India. It has been supplying a steady stream of the Sealys secure eDocuments, which allow the government to consolidate driver and vehicle registration information in a central repository, to a number of Indian states since 2003.

Standard Bank, one of South Africa’s biggest financial institutions, is introducing a multifunction EMV contactless payment card that its customers can use to pay for both transit fares and goods and services. With the Muvo, they don’t have to carry a separate transit card, and can make payments of up to R200 (US$22) by tapping or waving their card over a reader.

all in one for south africa

37 gemalto.com

4G comes to the UK

No more lost data

europe & africa

Gemalto’s LinqUs OTA (over-the-air) platform won the innovation award at LTE North America 2012. It enables networks such as North American networks Verizon and Sprint to make a smooth transition to LTE, and uses high-speed 4G networks for reliable and secure heavy application download.

Svyaznoy Bank is deploying Gemalto’s prepaid card solution to its customers in Russia. Certified by MasterCard and Visa, the card will be distributed via 35 of the bank’s branches and more than 3,000 points of sale, among other sales channels. Gemalto’s prepaid card process encompasses everything from design and production to point- of-sale fulfillment.

30 millionThe number of subscribers to mobile operator Telecom Italia, which is launching a mobile wallet using Gemalto’s Mobile Financial Services software. It includes the LinqUs Trusted Services Management platform for the secure management of NFC applications and the LinqUs mobile payment platform for transaction management.

Gemalto is powering the UK’s first 4G mobile network. EE, the joint venture between France Telecom and Deutsche Telekom in the UK, will have rolled out 4G to 25 British cities by the end of March 2013, with 98% of the population scheduled to be covered by the end of 2014. Gemalto’s UpTeq LTE SIM and embedded software solutions are playing a key role in the delivery of 4G’s super-fast speeds, helping EE to meet the commercial and technical challenges.

Jordanians no longer have to worry about losing valuable data stored on their mobile phones. Network operator Orange Jordan has rolled out Gemalto’s LinqUs Cloud Backup product to its three million subscribers, meaning they can save and restore data such as contacts in the cloud in case their phone is lost or stolen. Plus, it doesn’t matter whether the data is stored on the phone or in the SIM.

Award for LTE innovation

Russia goes prepaid

US$200 billionThe amount the global industrial automation market will be worth by 2015. Cinterion’s TC65i quad-band wireless module is part of this trend, having been integrated into Novus Automation’s AirGate-GPRS system for remote monitoring and site automation. Brazilian company JMD Automação has implemented the device in several of its manufacturing facilities.

north & south america

Getty

Digital lives

The passionate mathematician

38 The Review

AUTHoR LIVY WATSON

ILLUSTRATIoN JIM SPENCER

Why Ada Lovelace is known as the first computer programmer

Augusta Ada Byron, Countess of Lovelace, could have claimed a place in history simply through the fact that she was the only legitimate child of a renowned poet, but she found fame in her own right as the world’s first computer programmer.

Her father, Lord Byron, was a passionate man whose hot-blooded works (and personal life) heavily influenced the Romantic movement, while her mother, Baroness Annabella Milbanke, held rigid views more allied to the Age of Enlightenment. Their daughter, with her desire for a “poetical science,” was a true convergence of extremes.

Ada Lovelace, as she is commonly known, never knew her father: her parents separated just after her birth in 1815 and Lord Byron left England for good. Her mother didn’t even let Lovelace see his portrait until she was 20.

While the mathematically inclined Baroness showed little affection for Lovelace, her concern that Byron’s “madness” would prove hereditary led her to have her daughter tutored in

mathematics and science from a young age. Lovelace turned out to be a natural.

When she was 17, she met inventor Charles Babbage at a party and went on to work with him on an early model of a mechanical computer, the Analytical Engine.

Between 1842 and 1843, she translated a French article about Babbage’s machine, adding in her lengthy supplementary notes what

is generally recognized as the first algorithm intended to be processed by a machine. Babbage called her the “enchantress of numbers.”

Lovelace’s mathematical talent was complemented

by a powerful imagination that enabled her to see a future for the computer beyond mere calculation. She believed Babbage’s machine “might act upon other things besides numbers,” signaling a shift from calculation to computation.

And in 1844, she told a friend that she wished to create a mathematical model for how the brain produces thoughts and

feelings – “a calculus of the nervous system.”

In 1835, she married William King, a baron (later Earl of Lovelace) and had three children, naming one Byron. She later combined a Byron-esque indulgence in gambling with her love of mathematics and disastrously attempted to find a formula for successful large betting, which left her in debt.

Lovelace died of uterine cancer in 1852 at just 36 years old, having lost contact with her husband several months earlier after a sickbed confession (rumored to have been an admission of an affair). At her request, she was buried next to Lord Byron in Nottingham.

She shone brightly during her short life, however, and her work with Babbage would go on to form the basis of one of the world’s great technological revolutions.

Lovelace’s mathematical talent was complemented by a powerful imagination

They’re abouT To change your world

revıewthe

Issue 1 2013

why The bIg apple has joIned The bIg daTa revoluTIon

wIll IsIs Turn amerIcans on To mobIle paymenT?

goodbye desks, hello holograms: The fuTure offIce

meeT The

digital natives