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Technology is often remarked as evolutionary ammo, and the statement stands just the same for the growth of businesses. Finance Monthly below hears from Frédéric Dupont-Aldiolan, VP Professional Services at Sidetrade on the latest and upcoming innovations that have hit 2017 hard.

Artificial intelligence, robotics, machine learning and the Internet of Things: 2016 stood out as a year marked by technological development and significant advances in several fields, not least that of connected, driverless cars. Against this backdrop, a clear trend is appearing: the growing influence of robotic technology in daily life.

In 2017, we have seen more promising innovations, here is my review of the top five things we are seeing:

5. IoT, the Internet of Things

Star of the Consumer Electronic Show (CES), which took place in Las Vegas in January, and Viva Technology, which took place in Paris, the Internet of Things was thrust into the spotlight in 2016 and continues to bring increasingly intelligent connectivity to our daily lives. Smart devices, equipped with bar codes, RFID chips, beacons or sensors, are taking the lead and enabling companies to gain greater visibility over their transactions, staff and assets.

In 2016, information and technology research and advisory company Gartner estimated that there were 6.4 billion connected devices globally, an increase of 30% on 2015. By 2020, this figure is likely to have grown to 20.8 billion.

4. The explosion of Big Data

Network multiplication brings with it a proliferation of data generation, whose analysis, use and governance have become a burning issue. According to estimates by IDC, an international provider of market intelligence for information technology, by 2020, every connected person will generate 1.7MB of new data per second.

The concept of ‘perishable data’ has lost validity. In 2017, companies now have the capability to use data before it becomes obsolete. Devices connected via the Internet of Things will rapidly speed up data decoding and processing for actionable insight.

3. The ramp up of artificial intelligence and automatisation

Artificial intelligence has been one of the main talking points in technology over the last year. Encompassing areas such as machine learning, robotic intelligence, neural networks and cognitive computing, it’s now in daily use in numerous forms including facial and voice recognition, endowing velocity, variety and volume.

This year, artificial intelligence has taken on an increasing number of repetitive and automatable tasks, beginning with wider use of ‘chatbots’ with the capacity to give coherent, easily formulated responses. IDC pinpoints robotics driven by artificial intelligence as one of the six innovation accelerators destined to play a major role in the digitalisation of society and the opening up of new income streams. Indeed, Amazon and DHL are already making use of warehouse handling robots.

2. Location technology, the Holy Grail of customer satisfaction

Location technology has taken great strides over the last year or so, to the marked benefit of customer satisfaction in the hotel, health and manufacturing sectors. Customers can now receive geo-targeted offers on their smartphones, for example for promotions or reductions, depending on their physical location.

In 2017, RFID chips enable yet more accurate tracking of customers and enhancement of their buying experiences.

1. Virtual reality makes way for augmented reality

One of the biggest innovations recently has been virtual reality, and with it came much media coverage too. From Facebook to Sony, Google to Microsoft, big brands grasped this new technology to offer an outstanding user experience, through the merging of virtual and real imagery.

In 2017, these virtual devices have acquired an awareness of their environment and give users a real sense of immersion of the digital environment from within their own homes. The potential of augmented reality for business will be harnessed too in the coming months. Some companies, among them BMQ and Boeing, are already employing it to increase their retention and productivity rates, or to provide training to their workforces across worldwide subsidiaries.

Over the next few months, as we gear up for another round of product launches, we should expect to see advancements in these key areas of technological innovation. Within business, this technology should help to improve customer service by streamlining production and processes, saving time and money, as well as providing new and exciting ways to reach and engage with customers, helping to retain existing clients as well as bring in many new ones.

PwC has released its 18th annual Global Entertainment and Media Outlook 2017-2021, an in-depth, five-year outlook for global consumer spending and advertising revenues directly related to entertainment and media (E&M) content. Rapid changes have created a gap between how consumers want to experience and pay for E&M and how companies produce and disseminate their offerings. E&M companies were accustomed to competing and creating differentiation primarily based on two dimensions: content and distribution. Now, they must focus more intensely on a third: user experience (UX).

Global E&M revenues are expected to rise from $1.8 trillion in 2016 to $2.2 trillion in 2021 at a compound annual growth rate (CAGR) of 4.2% – down from the 4.4% CAGR the firm forecast last year. By comparison, PwC's 2017 Outlook expects US E&M revenues to reach $759 billion by 2021, up from $635 billion in 2016, increasing at a CAGR of 3.6% – holding steady at the same CAGR as last year. While there are increases in revenue, E&M is approaching an industry plateau. Traditional, mature segments are in decline; the internet and digital E&M content is growing though at a slowing rate; and the next wave of content and entertainment is in areas, such as e-sports and virtual reality, which are just beginning to accelerate.

"E&M companies are operating amidst a wave of geopolitical turbulence, regulatory changes and technological disruption. Even if the macro context is set aside, these companies are facing significant pressures on growth," said Mark McCaffrey, PwC's US Technology, Media, and Telecommunications Leader. "In order to thrive in the marketplace, PwC suggests that these companies understand and develop sustainable relationships with consumers to advance their UX. Pursuing a growth and investment strategy to enhance and differentiate the UX will help them flourish in an era where a changing value chain is slowing top-line growth from the traditional revenue streams that have nourished the E&M industry to date. Essentially, we've entered The Age of the Consumer. It's no longer sufficient to be 'consumer-centric,' one must be 'consumer-obsessed.'"

PwC has identified eight emerging technologies as having the biggest potential to improve UX: augmented reality (AR)/virtual reality (VR); artificial intelligence (AI); Internet of Things (IoT); Big Data/data analytics; cloud; 3D printing; access, not ownership; and cybersecurity.

"The next era of differentiation in E&M is being defined and propelled by consumers' increased demand for live, immersive, sharable experiences. Consumers want to get closer, more engaged and better connected with the stories they love – both in the physical and digital worlds," said Deborah Bothun, PwC's Global Entertainment & Media Leader. "At the same time, companies can start to empower those experiences through a number of emerging technologies. Perhaps big data and artificial intelligence will create the most dramatic change, redefining how the industry can connect with all stakeholders and drive growth. We're already seeing a number of ways that AI is being used to personalize, customize and curate entertainment content and experiences at scale."

Key US Entertainment & Media Highlights –
A total of 68M Virtual Reality (NEW) headsets will be in use in the US by 2021 with the installed base growing at a CAGR of 69.2% over the forecast period. In fact, the segment is projected to add nearly the same revenue as TV advertising between 2016 to 2021, a total of $4.6B. VR truly started to reach consumers in 2016 and has no legacy issues or false starts to look back on. The downside is a highly immature market with underdeveloped business models, flaky hardware, and lots of experimental or low-quality content. 2017 should at least see major advances in "inside out" movement tracking and lower cost headsets. It's worth noting VR's close relationship with the gaming market, yet many news and content organizations are pinning their hopes on VR to reinvigorate programming and recapture audiences lost to the internet.

Video Gaming continues to be a paradox: at once a large, growing business and yet a market where firms can fail in record time and new business models arise seemingly from nothing. It is this dynamism that both fascinates and concerns financial markets and partners in media, telco and IT spaces. Video games revenue was $21.0B in 2016 and is forecast to grow by a 6.3% CAGR to reach $28.5B in 2021.

The development of E-sports (NEW) has contributed to the video gaming boom. The nascent genre's revenue is forecast to reach $299M in 2021, from $108M in 2016, rising at a 22.6% CAGR. The US is the largest market in revenue terms, having overtaken South Korea in 2015, although the latter will stay far ahead in terms of per-capita revenue. Not only does the ongoing popularization of competitive gaming by broadcasters bring new consumers into the gaming fold, but the games themselves help to boost online/microtransaction revenues on both consoles and PCs.

Data Consumption (NEW) is forecast to reach 290.7T MB by 2021, up from 117.9T MB in 2016 and representing a 19.8% CAGR. The US will remain the largest market in the world in terms of data traffic in 2021, ahead of China despite the latter's faster growth. The single biggest driver of growth is the increased adoption of smartphones, and in particular the rise of video streaming on smartphones. Video represents 83.4% of all data traffic in 2016, ahead of other digital content (7.8%), and music (3.1%). By 2021, video will account for more than 247T MB of data in the US, some 85% of total traffic.

The US Internet Video (NEW) market is by far the largest and most established in the world, accounting for 47% of global revenue in 2016. This percentage is expected to fall to 43% by 2021 as internet video becomes more established in others regions, although international growth will be driven by US companies' expansion overseas. Internet video will grow at a 9.6% CAGR – the fourth largest US E&M segment CAGR, following Virtual Reality, E-sports and Internet Advertising, respectively – to produce revenues of $18.8B in 2021. Nearly 75% of revenue at this time will be attributable to subscription video-on-demand (VOD) services, with transactional VOD platforms accounting for the remainder.

Internet Advertising revenue in the US reached $72.5B in 2016, comfortably the largest market in the world. This figure is forecast to reach $116.2B in 2021, rising at a CAGR of 9.9%. While it was previously predicted that internet advertising would overtake TV advertising in 2017, the former actually surpassed the latter by the close of 2016. New tech innovations, especially around AI, will create both challenges and opportunities for incumbent players. The introduction of new screens, such as those in connected cars; the rollout of new content formats, like VR; and changes in the way we interact with technology, such as voice-activated search, create opportunities for new ways of engaging with and advertising to audiences. However, all require innovation and investment in order to meet their potential. Separately, the dominant force that is mobile advertising comprised 50.5% of total internet advertising revenue in 2016, rising from 34.7% the previous year and besting the contribution from wired internet advertising in the process. By 2021, PwC expects mobile to account for 74.4% of all US internet advertising.

Cinema revenue will grow over the forecast period by a 1.3% CAGR. Specifically, box office revenue will rise from $10.6B in 2016 – the biggest box office year in all of American history – to $11.2B in 2021, a CAGR of 1.2%. PwC had expected China to overtake the US in box office revenue in 2017, which would have marked this as the first time the US has not held the leading position in an E&M segment. However, the second half of 2016 and the first half of 2017 were much softer at the Chinese box office than had been expected. That said, Chinese cinema revenue is still the most lucrative and the fastest-growing in the world. The big studio blockbusters remain the driving force, but the perennial debate about the three-month exclusive "window" for films in cinemas is intensifying – especially faced with intensifying competition from disruptors.

The Music industry has continued to turn the corner on nearly two decades of decline. The market was worth $17.2B in 2016. Total music revenue is forecast to increase at a 5.6% CAGR to reach $22.6B in 2021. The ongoing growth of digital music streaming – up an astonishing 99.1% year-over-year in 2016 to total $3B – was THE music story of last year as consumers turned in huge numbers to on-demand services. Competition for new subscribers will likely be fierce in 2017. In addition to the uptick in streaming, the live music sector continues to deliver, with fans appearing to have a nearly insatiable appetite for music events and festival brands eager to franchise overseas.

Additional Industry Segment Data Points –

(Source: PwC)

Deloitte explores the rapid evolution of business technology in its eighth annual technology report, "Tech Trends 2017: The Kinetic Enterprise." Released last week, the report describes how companies presently must sift through the promotional noise and hyperbole surrounding emerging technologies to find those solutions offering real potential. To realize that potential, they should become "kinetic" organizations — companies with the dexterity and vision required to thrive amid ongoing technology-fueled disruption.

Tech Trends 2017 examines seven key trends that will likely revolutionize enterprise technology in the next 18 to 24 months. Among the trends discussed are machine intelligence, dark analytics and mixed reality, which is a blend of augmented reality, Internet-of-Things and virtual reality. The report also covers innovations in analytics, digital and cloud that are transforming the way organizations engage with customers and citizens; and reimagine products, services and business models.

"Kinetic enterprises are fluid and their leaders understand that to remain relevant, they will need to develop a deliberate innovation response to these disruptive forces," said Bill Briggs, chief technology officer and managing director, Deloitte Consulting LLP. "It's not about chasing every shiny new object; it's about translating the raw potential of emerging technology into a focused set of priorities with measurable, tangible business impact."

According to the report, some of the key trends that will transform the business landscape in 2017 and beyond include:

"This goes beyond the CIOs and IT department. There are factors changing every element of business," said Briggs. "Machine intelligence, blockchain and other technologies will have huge implications for talent, operations, and for the enterprise as a whole. Developing a strategy for prioritizing investments and harnessing these emerging technologies has become a boardroom directive."

The report's "Exponentials" chapter identifies four key areas blending science and applied technologies — nanotechnology, advanced energy storage, synthetic biology and quantum computing. Business leaders across industries should be aware of the looming potential these technological advances hold and begin exploring ways to harness exponentials within their organizations.

In addition, each chapter features a "Cyber Implications" section, which helps CIOs balance potential with responsibility around security, privacy and compliance. For the kinetic enterprise, striking this balance is necessity, and reflects a shift toward viewing risk strategically as a core discipline. The report also includes case studies, perspectives from industry luminaries, and experience from Deloitte practitioners that crosses government, business and society.

(Source: Deloitte)

HTC VIVE, the leader in room-scale Virtual Reality (VR), last week at the WEForum announced ‘VR For Impact’, a $10 Million program to drive VR content and technologies that will create positive impact and change in support of the United Nation's Sustainable Development Goals by 2030.

Virtual Reality provides a tremendous opportunity to develop and share ideas in impactful ways that lead to change, and through VR for Impact, HTC Vive will fund and support content and technologies that create the most powerful experiences to transform our world.

The United Nation's Sustainable Development Goals are a universal call to action to end poverty, protect the planet, and ensure that all people enjoy peace and prosperity. Virtual Reality's ability to immerse people into an experience is unmatched, and VR can drive the world to act on global issues the human race is facing. Through VR for Impact, HTC Vive is committing $10 million dollars to industry partners and content developers to create experiences that improve awareness, education, and lead to action.

"The potential for Virtual Reality to help us learn, understand, and transform the world is limitless. VR for Impact is a challenge to the VR community and content developers across the globe to help drive awareness and to solve the biggest challenges of mankind," said Cher Wang, Chairwoman and CEO, HTC. "HTC Vive will fund the best ideas using Virtual Reality that truly drive awareness and positive change in our world. We encourage all players in the VR eco-system to join as only together can we drive real impact."

"HTC is a pioneer in recognizing the work the UN has done to promote social change through virtual reality," said Gabo Arora, Creator of the UN's VR Initiative and Creative Advisor to the World Food Programme. "The Vive's room-scale VR capability can be a powerful tool for immersive storytelling, education and training; their support will empower more people to affect global change, give voices to the most vulnerable and provide access to new possibilities for the most marginalized."

"There are millions of untold stories in every crisis, especially on the front lines where much of our work takes place," said Corinne Woods, Director of Communications for the World Food Program. "HTC's support of new ways to tell important stories, and help in shaping innovation for the UN's sustainable development agenda, will build on the impact of our work and take it in new and exciting directions."

(Source: HTC Vive)

Virtual Reality (VR) and Augmented Reality (AR) were popular topics in 2016 and the industry is now considered as the technology of the future. The development of AR technology is changing the way people see and learn. According to a research report published by Zion Research, augmented reality market is expected to reach approximately $133.78 billion by 2021, with an annual compound growth rate of 85.2%. The research indicates that High penetration of smartphone and escalating convergence between AR and wearable devices continue to drive demand for the market.

The revolution of Augmented reality applications brings people a different kind of living experiences. For example, TryLive by Total Immersion changes consumers' shopping experience by enabling virtually try-on glasses, clothes and many accessories. Wearable display glasses enable people to run applications. The gaming sector benefits the most with AR technology, but the technology now is used in many other fields, like aerospace & defense, education, tourism, retails and e-commerce.

Vuzix Corporation is a supplier of Smart-Glasses, AR and Virtual Reality (VR) technologies and products for the consumer and enterprise markets just announced earlier today that, "the Company has completed, passed, and filed with the US Federal Communication Commission (FCC) all of the (FCC) emission's requirements for its next generation M300 Smart Glasses. Vuzix expects to commence shipping of the M300 Smart Glasses to customers in the USA and Canada within days of this filing. With FCC filings now in place and the recent certification for shipments to Europe completed last month, the Company is now positioned for the full commercial launch to its largest initial markets. Other major regions of the world should follow with submissions of their required regulatory filings through the first quarter of 2017, enabling Vuzix to expand its M300 offerings near worldwide.

The new Vuzix M300 represents the next generation of smart glasses, designed to address customer feedback from more than three years of productive use of the earlier M100.  This field experience has led to the addition of many empowering, barrier-reducing features such as improved ergonomics, modern security capabilities, enhanced Wi-Fi and Bluetooth connectivity, and industry leading video streaming. These improvements are just some of the many that allow the M300 to be a central communications platform to and from a client's remote workforce, connecting their corporate data and IOT field devices in real time to the people in the field who need them.

The work over the last six months to establish the Vuzix VIP application software partner program has resulted in a significant pipeline of customer budgeted and approved projects awaiting the arrival of the M300. Vuzix will begin with production M300 shipments to these EU and US VIP partners who have been pre-allocated units for immediate deployment to their existing client base. In addition, we have many orders from customers that have taken advantage of the M100/M300 migration program and/or placed pre-orders for the M300.

These order pipelines are significantly greater than when the M100 launched and the Company expects that it will continue to enjoy robust growth in smart glasses revenues, as clients accelerate volume deployments.  "We are now set up to ship the M300 to the hundreds of US customers that represent the beginnings of volume roll outs," said Paul Travers, President and Chief Executive Officer at Vuzix."

Cloud infrastructure and business mobility company, VMware Inc. announced the addition of new smart glasses management features to VMware AirWatch(R). According to the statement, the update will bring a consistent management platform to streamlined onboarding experiences, network setup and application deployment to organizations seeking to leverage augmented and mixed reality devices to transform business processes. VMware is the first unified endpoint management solution to extend into wearables, enabling customers to manage their smart glasses alongside existing desktop and mobile endpoints.

VMware is also working alongside with APX Labs, Atheer, Intel, ODG and VUZIX Corporation to help provide wearable management and application delivery solutions.

American multinational semiconductor and telecommunications, QUALCOMM Inc. company subsidiary along with developer and manufacturer of mobile head worn computing and augmented reality technologies and products, Osterhout Design Group announced that R-8 and R-9 will be the first announced devices powered by the Qualcomm's Snapdragon(TM) 835 processor, which uses 10-nanometer FinFET process technology to enable a new generation of premium consumer devices in small form factors with breakthrough performance and superior power efficiency. R-8 is Osterhout Design Group's consumer mobile Augmented Reality/Virtual Reality smartglasses, and R-9 is for a wide variety of wide field-of-view experiences from light enterprise.

Global semiconductor company, STMicroelectronics reported that its LSM6DSM 6-axis Inertial Measurement Unit is now to be used in next-generation mobile devices running with Alphabet Inc. (NASDAQ: GOOGL) high-performance virtual-reality platform, Google Daydream, along with a platform that maps 3-Dimensional space enabling it to be overlaid with virtual objects, Tango. "Certification of ST's 6-axis motion-sensing device for operation with Daydream and Tango for amazing virtual- and augmented-reality experiences demonstrates our abilities to design and deliver an exceptionally accurate and power-efficient IMU," said Aymeric Gisselbrecht, Vice President Global Key Accounts Sales, and STMicroelectronics. "Our long-term developments in sensing and actuation, along with our work with Google, are contributing to making mobile applications incredibly immersive and even more fun."

(Source: FinancialBuzz)

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