As digital transformation takes root across the consumer ecosystem, businesses must expand and deepen their relationships with consumers to better understand their wants, needs, and aspirations.
"Technology is causing massive shifts in the way consumers live their lives, and technology companies, from hardware vendors to software developers to service and infrastructure providers, must think hard about how these shifts will impact their future offerings," said Tom Mainelli, group vice president, Devices and Consumer Research at IDC.
He commented that IDC believes organisations must redefine their mission to be more relevant to the individual to drive toward that successful future. "This new approach requires rethinking company operating models and cross-industry business models with an eye toward better understanding and enabling cooperation and collaboration with adjacent companies and industries," he continued.
11 tech trends driving the transformation of consumer behaviour and markets
New pricing and business models – subscriptions, bundling, and loyalty: Hardware products, in addition to media and services, are moving toward a subscription model.
On-body ecosystems: Gradually, more people will use multiple devices, phone + wrist/hand + ears, that work as integrated ecosystems.
Wireless & broadband connectivity – 5G, Wi-Fi 6, Bluetooth, WANs, and more: Digital connectivity will become more reliable, responsive, and seamless to enable more engaging and immersive experiences.
Augmented and virtual reality: Vendors have struggled to develop AR and VR that consumers will embrace widely. Over the next five years, vendors will crack the code on augmented audio, and improve AR for phones, smart glasses, and VR goggles.
Digital productivity devices: Many people start with a smartphone – and many will grow into using an integrated digital service platform across their PC, tablet, smart speaker, and virtual desktop service.
Blending work & personal devices, services, and places: The pandemic accelerated the consumerisation trend, as work from home and touchless workflow drove greater use of personal technologies for work.
Smart connected products: IoT technology is enabling a wide range of smart, connected products that upgrade or transform many experiences, especially for well-being.
Personal digital/cloud services for life, security, and privacy: Solutions will help consumers manage an unruly, messy combination of personal services and experiences by improving password management, financial monitoring, and security services.
Digital media, social media, and advertising are colliding: Consumers are embracing digital streaming and the creator economy while dodging advertising, and challenging business models.
Digital money: Asian consumers are already deep into super apps for payment, while the pandemic pushed Western consumers away from currency to cards, tap-to-pay, and digital wallets, but not into super apps. Much more change is on the horizon.
AI and ML will enable new consumer services: Consumers don't use artificial intelligence and machine learning, but they do embrace compelling experiences that those technologies enable. Advances will enable experiences such as selective listening and highly personalised media.