Ebook: Wearables, mobile revolution (English)

REVOLUTION TRENDS MOBILE: NOW YOU WEAR IT

WEARABLES 01 02

Much more than just work gadgets Millennials, potential customers

03 04

INNOVATION TRENDS SERIE

Wearable devices in banking INFOGRAPHIC

The rising value of wearables

05

CASE STUDIES

Companion to chronic patients

01 Wearables, much more than just work gadgets Over seven out of ten people believe there is at least one benefit to using some type of technology at work… but what about wearable technology? ( ) Efficiency. Productivity. Safety.

These are not only three of the pillars of the workplace but also three of the areas where wearable technology can benefit the workers that use them, according to data collected by the Workforce Institute at Kronos Incorporated and Harris Poll after conducting a questionnaire to find we are using this wearable technology in our everyday work.

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“There’s a strong belief that wearable technology will take off in the workplace before the home because devices such as smart watches and even fitness and health monitors can provide organizations with uncharted data collection points to greatly improve safety, productivity, collaboration, and overall workplace effectiveness”, notes

Joyce Maroney, director of Kronos' Workforce Institute.

We can therefore say that wearables are a new opportunity to obtain data about a worker's daily routine, so if the company analyzes these data (Big Data analysis), you can improve the output and efficiency of that routine ( ).

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Security and privacy Workflows and productivity can be measured using the data collected from wearable devices worn by the workers.

This application is considered by many to be invasive, as corporate policy is somewhat unclear, and there are no processes in place to protect both the employee's privacy and the company's security.

This is the balance that has to be achieved.

technology. 44% of US workers questioned by the Workforce Institute consider that privacy could be a issue, whereas 35% believe there could be security failures that make the use of these devices a problem.

But let's take a look at the data found by this survey:

Over seven out of ten respondents believe that wearables could benefit or improve their work. Many workers agree that it could help them achieve the much desired balance between personal life and work and even favor collaboration and "friendly" competition in workplace ( ).

Use of wearables at work

In fact privacy and possible security failures are the two main concerns when asked about the "buts" of this

Fuente: The Workforce Institute at Kronos “Wearables at Work” survey INNOVATION TRENDS SERIE · FEBRUARY 2015 · www.centrodeinnovacionbbva.com/en

According to the data shown in the graph, the potential of this type of technology is clear, as many of the respondents mention improved efficiency and productivity and improved safety among the benefits they find when using these wearable devices in the workplace.

Safety is one of the most commonly mentioned reasons for using this technology, particularly in countries like India (56%), Mexico (54%) and China (49%). However improving profitability, competition and customer experience and satisfaction are other reasons for using this type of wearable device.

What are the leading devices in the workplace?

Headphones, watches and armbands or smart wristbands are the three types of wearable devices considered most useful at work.

Although there's something for everyone… Around 20% of workers in the US, United Kingdom, France and Germany believe that they would find smartwatches useful at work, whereas this percentage is higher in China (56%), India (49%), Mexico (40%) and Australia (33%).

Among the main benefits to be obtained with these devices is a improved attendance at

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of workers find smartwatches useful at work.

meetings, based on analyzing people's preferences and habits from data collected with the wearables.

For example, another use being made of this real-time information and the analysis extracted from the devices is the improvement in the process of integrating employees in new departments by providing them with orientation and training manuals preloaded in a device which is issued to the employee and adapted to their needs.

And naturally wearables related with health and sport are also winners at work. Taking care of their employees' health is vital for a company that wishes to reduce absenteeism, and

devices like Fitbit promote exercise and enable data tracking, for example to correct a worker's posture at their workplace or suggest using the stairs to get more exercise after a certain number of hours sitting down, or eating something healthy after a few days of fast food.

The company can reward the healthiest decisions.

Source: Techcrunch and The Workforce Institute at Kronos “Wearables at Work” survey. This online survey was sent to respondents aged over 18 in Australia, China, France, Germany, India, Mexico, United Kingdom and United States..

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02 The Millennials, potential customers of wearables Although many people have already bought or used wearable devices, the truth is that most admit they soon stop using them. That is why the market is looking closely at the so-called Millennium generation (aged between 18 and 34): they are the consumers who could provide the final breakthrough in the use of wearables.

Wearables are a (r)revolution of the mobile trend that has in recent years has seeped into practically all the socioeconomic sectors. These wearable devices are a step beyond smartphones and mobility: they mean INNOVATION TRENDS SERIE 路 FEBRUARY 2015 路 www.centrodeinnovacionbbva.com/en

carrying this mobile technology on you, whether as a watch, a bracelet, an item of clothing or even as contact lenses...

And those who are driving its use are young people from the millennium generation (aged between 18 and 34), who want to be different and to test all the technologies available, such as 3D and wearables. These are two examples they are prepared to include in a variety of environments in their everyday life and use them to the full: from work to leisure time and entertainment.

In fact, 7 out of 10 say that they will buy a wearable device. And one of the main reasons why they are destined to become potential customers for these devices is that they are more inclined to share personal information, so their barrier to intimacy is much lower.

"The traditional thinking is that consumers would never agree to share information like location, with brands and the like, but this research shows that consumers, particularly the millennials, would share their location and much more," insists Luis Felipe Rinc贸n, managing director of Wearables.com, following the publication of the study The Unexpected State of Consumer Wearable Technology.

According to the research data, these young people feel much more comfortable sharing information anonymously with the government (40% vs. 25% of other adults), anyone on the Internet (35% vs. 20%) and their employer (30% compared with 16%).

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These data may be key for pushing big companies to these devices, as they can become a business opportunity on which advertising has already set its sights. In fact, wearables are expected to be a turning point for the new mobile advertising: better targeted advertisements thanks to the data offered by these devices about how their owners use them and their habits in specific activities, such as sports, games, consumption of entertainment... And it is the millennials who are the targets of this type of advertising of the future.

That is why one of the answers that all those involved in the world of wearables want to know is how to boost the use of wearables. A study by PwC, Wearable Future, asked the millenniums for the keys that would make them increase their use of these kinds of devices.

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Media and leisure: These devices offer a more immersive and fun experience in leisure activities. In this case, 79% of the expectations had high expectations in the leisure factor, such as more visual and attractive games. It is not a case of creating new genres, but rather of improving the gaming experience in existing ones.

Social media: The interaction between wearable devices and social media profiles is one of the keys to their boom among the millennials, as it allows them to update their profiles in real time.

Information in real time: If you use your wearable device for exercise, to follow a diet or access medical records, one of the advantages of this technology is that it offers this type of information through an improved, simpler and more attractive user experience.

Loyalty: if the devices had applications that rewarded their use, the millennials believe they would increase the frequency with which they used them.

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And the reasons these users give for showing their enthusiasm for devices of this kind are: Safety: 9 out of 10 consider that wearables can offer the safety many people are looking for Healthier living: 8 out of 10 firmly believe that with the help of these devices they can eat healthier and do exercise smarter Simplicity: 8 out of 10 cite this quality in wearables: they are simpler to use than other types of technology. .

03 The first steps for wearable devices in banking The mobile aspect is the current fashion trend in banking 2.0: the apps already available in the iOS and Android stores allow us to perform all kinds of procedures and transactions from our smartphones, but the push by technology companies for such services is outstripping the boundary of smartphones and tablets, bringing banking to the next step: wearable devices.

According to Juniper Research, 100 million wearable devices will be manufactured per year by 2017, including glasses, bracelets and smart watches, among others. And the banking sector has already turned its

attention to this market.

First applications for wearable devices While awaiting the arrival of the Apple smartwatch (which could be a turning point in the

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implementation of wearable banking), companies such as the Australian Westpac or the US firm Wells Fargo are already working with software for Google Glass, and PayPal PayPal launched an app for the Samsung Galaxy Gear 2 during the summer. Several months beforehand, eBay had launched another app for this model that made it possible to buy and sell items from anywhere. The case of the app

being developed by Westpac New Zealand is much more interesting. It will allow Google Glass to access information on special offers as you move around establishments as well as check your bank balance on the fly by using peripheral vision.

If banks are already preparing for the wearable market, it is because they believe that the growth of banking in this niche could be much faster than that seen in mobile banking and, of course, online banking. An example is the case of Wells Fargo that was reported

by The Wall Street Journal: the bank took 12 years to reach 10 million active users for its online banking service, while it has only taken six years to add the same number of mobile users

Apple's disruptive innovation According to the Mongan Stanley executive and specialist in Apple, the company expects to sell between 30 and 60 million smartwatches in their first 12 months on the market, some estimates that could increase if the outlook for wearable banking continues to progress.

Furthermore, in a kind of 'virtuous circle', this new device could drive the mass adoption of this new channel of banking services.

Apple already knows what it is to boost mobile payments: in the first 73 hours after launching its service in Apple Pay users added data on a million credit cards to the platform.

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It is all part of the Internet of Things If we analyze this phenomenon in perspective, we cannot forget that wearable devices are only a part of a much greater revolution – the Internet of Things –, which is capable of revolutionizing the use we give to our data in real time... and we cannot forget the fact that, so far, banking has been one of the main data repositories, but also one of the least likely

players to do something innovative with that data, because of a combination of external elements (legal regulation) and internal (mentality of the sector). But this is a status quo that consumers will no longer put up with once they see the advantages of "quantified self" in many other more dynamic sectors.

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Myths about wearable technology In an Accenture study several misconceptions about wearable devices were identified, which are all widespread in several sectors, including banking. The most noteworthy include: Consumers will quickly embrace these devices without the need to educate them on the value they bring.

Wearable devices are just another form factor for smartphones.

First to market is a can'tmiss winning formula.

Wearable devices are secure.

Power consumption will not be a big issue.

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04/INFOGRAPHIC The rising value of wearables Is it just a fashion trend or will be a now mobile revolution? The wearable devices begin to be gradually in some of our daily uses: at work, doing sports or playing, in health centers ...

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Map wearable devices uses For work uses For personal use

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Wearable devices uses Users value more the followings advantages

Advantages Make us more efficient

77%

Help us get more out of our time

76%

Relieve stress

74%

Improve customer service

72%

Strengthen my connection

72%

While users show the following drawbacks

Drawbacks 86%

Vulnerability to security breaches

82%

Invade my privacy 72% 68%

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Hurt our ability to relate humans Dependence on technology

Consumer willingness to adopt wearable tech when

This year we buy If you buy a wearable this year, what device would be?

… although people sceptic do not think they’ll actually use these products:

INNOVATION TRENDS SERIE · FEBRUARY 2015 · www.centrodeinnovacionbbva.com/en

Wearables can improve

health

retail

Patient monitoring

Improved access to medical information Higher clinical trial participations More accurate diagnosis INNOVATION TRENDS SERIE 路 FEBRUARY 2015 路 www.centrodeinnovacionbbva.com/en

Improve customer experience Improved payments Improved loyalty programs More targeted advertising

05/CASE STUDIES The potential of wearables as a companion to chronic patients Wearable devices like smartwatches and wristbands have found a goldmine in the sports and health sector. These accessories that are able to constantly monitor the user's physical activity can be extremely valuable to people who suffer from chronic diseases like diabetes.

Diabetes is a chronic disease that affects more than 347 million people all over the world, according to the World Health Organization. It is calculated that this figure will skyrocket to 592 million in the next 20 years, as sedentary lifestyles and poor diet are the main causes of the disease. In Spain there are more than 5.3 million diabetics and 25,000 people die each year from the disease, according to the Spanish Diabetics Federation (FEDE). Diabetes, along with obesity ( ), is one of the great pandemics of the 21st century , INNOVATION TRENDS SERIE 路 FEBRUARY 2015 路 www.centrodeinnovacionbbva.com/en

This ailment can cause damage to the heart, blood vessels, kidneys and nervous system.

Sufferers need to monitor their levels of blood insulin and their blood pressure. They also need to follow a healthy diet, watch their weight and take regular physical exercise.

According to a report on ICT and personal health published by the Telefónica Foundation in 2013, tools to monitor health are set to become the key to “raising awareness among the population that the evolution of their health is in their own hands”. The document sees wearable devices ( ) as a major step forward in controlling chronic health problems such as diabetes and hypertension.

Diabetes is a disease that appears when the pancreas does not produce sufficient insulin, the substance that regulates the quantity of sugar in the blood.

Failure to control the amount of sugar in our organism produces hyperglycemia, which can ultimately affect many of our organs. This is the reason it is essential for diabetics to monitor their glucose levels frequently.

The report highlights that thanks to its connectivity with smartphones this technology enables patients to monitor their condition much more effectively, and even to automatically send alarms whenever necessary. It also points to the usefulness of this technology for reminding patients when they need to

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receive treatment, as one in every three diabetic patients occasionally misses a dose of medication. These devices include particularly the glucose meters Glooko and iBGStar, that are synchronized with an app on your cell phone.

Google lenses Recent months have seen the appearance of a number of other wearable technology projects aimed at diabetics. The most widely publicized thanks to their futuristic design are Google's lenses. In July 2014, the search engine announced an alliance with the pharmaceutical company Novartis to develop and market smart contact lenses designed to help diabetics. These lenses, which are still under development, will analyze the levels of glucose in tears through a small antenna finer than a human hair. This information will be sent to patients' phones and enable them to constantly monitor their condition.

Apple climbs on the bandwagon Watch, Apple's smartwatch goes on sale in April and will feature diabetes-related applications. Dexcom, a company that develops packages to monitor glucose levels is working on an application for Watch and iOS devices timed to coincide with the launch of the watch.

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Dexcom's patches will send the data to a device for processing, but from April they will offer the option of managing this task via the Apple watch, phones and tablets.

The interest shown by these titans of the technology sector in the health industry highlights the potential of wearable technology in this field. Indeed a number of specialized

publications have recently reported that the Watch was originally designed as a device targeted more specifically to personal healthcare. Apple is thought to have decided to eliminate functions on the watch such as heart-rate, blood-pressure and stress-level monitors after finding they were not sufficiently accurate. Apparently, the sensors did not work well on excessively hirsute arms, on dry skins or on users who did not tighten the watch strap sufficiently, which decided the makers to discard certain features.

The wearable devices launched

by Microsoft to accompany their Windows Phone operating system also follow this trend: they are accessories for sport and fitness, but also for monitoring health.

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A watch for diabetics made in Spain In Spain, the Valencia-based company imasD began developing a smartwatch intended for diabetics called imasD Health, according to a blog specializing in technology applied to diabetes.

On the back of the watch there is a reagent that comes into contact with the skin and allows the glucose concentration to be measured every four minutes.

The device receives these data and monitors them constantly.

It also offers geolocation options and enables the wearer to make an automatic call to the emergency services when necessary.

The project was already at an advanced stage of development and was due to be completed between November 2015 in February 2016; however the Valencian company recently ceded it to an American company.

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Wearables continue to grow (

)

The latest report by Telef贸nica on the information society in Spain (2014) shows that wearable devices have made major inroads in our country in recent months. Gadgets that monitor physical activity such as the smart wristbands known as smartbrands and smartwatches have become highfashion items in recent months. According to the study, in the first quarter of 2014, 2.7 million smartbrands were sold, with the brands Pebble Technology, Sony andSamsung como leading the field.

The report indicates that the wearables market will continue to grow in coming months. It is calculated that 50 million wearable devices were sold in 2014 and sales are expected to hit 90 million in 2015. The accumulated sales predicted through to 2017 could be as high as 250 million devices.

In fact, 39% of Spanish users have expressed interest in accessing Internet through their watch. However, this is not the element that most interests Spanish Internet users: 42% would like to access the web through glasses, whereas 57% would like to do so through their car.

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