Contact: Matthew Longbottom
Deloitte
PR Manager
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The Technology, Media and Telecommunications (TMT) practice at Deloitte today announced its predictions for the technology sector for 2007, forecasting that the environment’s impact on technology and how it influences the conception, marketing and distribution of various technologies will be a key development.
David Tansley, technology partner at Deloitte, comments: “The technology industry is going to have to raise its green credentials in 2007. Technology companies will be looking to build the case for technology’s considerable positive contribution to the global environment. This includes the designing of products and services that are environmentally friendly, highlighting how technology-based services have provided less damaging alternatives for activities such as business travel, or by differentiating themselves on the basis of responsible power consumption.
“Power-scavenging technologies also look set to boom in numbers in 2007, as the technology industry starts to deal with one of its most critical problems – portable power. Power-scavenging technologies are able to generate energy from a variety of sources in their immediate environment including, sunlight, changes in temperature, vibration, motion, sounds and pressure.
“In 2007, user interface technology will have to become much easier and simplistic in order to improve commercial success. Currently over half of all consumer electronic devices returned to retailers are not broken – they have just confounded their owners with their complexity. The falling cost of processors may be a key culprit, encouraging manufacturers to include increasing functionality in their products without a real need. In 2007, companies that manage to minimize product complexity will achieve greater success than competitors with superior, but relatively inaccessible, technology.”
Three key trends identified in the report are:
Technology goes green
As consumers, businesses and governments around the world become increasingly aware of and concerned about the state of the environment, there may well be an escalation in the search for both genuine causes and scapegoats for climate change. While the energy, transport and industrial sectors have borne the brunt of criticism to date, the finger of blame may increasingly be pointed at the technology sector. Technology companies will need to respond, both by building the case for technology’s positive contribution to the global environment (which is likely to be considerable) and by designing products and services that are environmentally friendly.
Parasitic power to the people
2007 will also see the technology industry start to deal with one of its most critical problems – portable power. Over $31 billion is spent every year on disposable dry-cell batteries; $6 billion is spent on rechargeable batteries; and over a billion rechargeable batteries are included with the sale of electronic devices. Given that the limits of lithium ion technology may be approaching, it is likely that technology companies will turn to power scavenging solutions which draw energy from the environment around them. Body-heat, ambient light, vibrations and movement may all be harvested to supply supplementary charge to tiring batteries.
Reinventing the user interface
Over half of all consumer electronic devices returned to retailers are not broken – they have just confounded their owners with their complexity. Consumers’ tolerance is limited to 20 minutes, after which they tend to give up, assume the product is faulty and return it to the store. In 2007, technology companies will have to make concerted efforts to reduce product complexity. Many will focus on redesigning the user interface, using both existing technologies and newer solutions, from haptics to artificial intelligence. Companies able to minimise product complexity may achieve greater success than competitors with superior, but relatively inaccessible, technology.
Access the Technology Predictions 2007 report.
Ends
Notes to Editors
The Deloitte Predictions series has been designed to provide a diverse selection of views and thoughts that challenge, inform and engage industry leaders and executives. It neither aims, nor claims to be a comprehensive forecast of every anticipated event.
The methodology used to generate the Predictions series is revisited every year. For the 2007 series Predictions have included inputs from conversations with member firm clients, contributions from DTT member firms’ 5,000 partners and managers, specializing in TMT, and discussions with industry analysts. This series of Predictions has incorporated two additional sources.
The first is a series of 36 interviews with leading executives from around the world on the key industry theme of convergence. This global primary research exercise, spanning the TMT sectors, produced a wealth of insight, much of which is reflected in many of this year’s Predictions. The interviews, collectively published by DTT as a book, Convergence Conversations, are available from www.deloitte.com/tmt.
The second source is a column, Drowning by Numbers, that the Financial Times invited Deloitte & Touche LLP in the United Kingdom to write on a fortnightly basis. Some of the ideas for Predictions have been tested in this column.
About DTT’s TMT Group
The TMT Group is composed of service professionals who have a wealth of experience serving technology, media and telecommunications companies throughout the world in areas including cable, communications providers, computers and peripherals, entertainment, media and publishing, networking, semiconductors, software, wireless, and related industries. These specialists understand the challenges that these companies face throughout all stages of their business growth cycle and are committed to helping them succeed. DTT is a leader in providing strategic, financial and operational assistance to its TMT clients.
About Deloitte
In this press release references to Deloitte are references to Deloitte & Touche LLP which is among the country’s leading professional services firms, providing audit, tax, consulting and corporate finance services. Deloitte & Touche LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein whose member firms are separate and independent legal entities. Neither DTT nor any of its member firms has any liability for each other’s omissions. Services are provided by member firms or their subsidiaries and not by DTT. Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority. The information contained in this press release is correct at the time of going to press.
Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority.
The information contained in this press release is correct at the time of going to press.
