?

Customer Foresight
Perception of information
Products & Innovation, Product Portfolio Management
December 2010
Agenda.

 Motivation, summary and impact

 Key messages
- Basics of cognitive processing

- Changes within communication and media

- Filtering layers

- Perception of overload

 Appendix

- for internal use only - Perception of information, P&I Product Portfolio Management 2
Motivation.

Did you know that ...

... 99% of all SMS are read … ... a facebook ... 90% of all
and 90% of them within three minutes.1 installed apps
member has are Key questions
130 friends on only used
... your brain needs 5 minutes ... the human average. 2
once.3  How do people perceive
to refocus attention information? Where are
after a 30 second call.4 is a limited limitations?
resource,
where multiple  What are the challenges for
distractions and ...30% of ... 50% of ...70% of the use of information and
... mental illness due to job
stress causes a damage of requirements visual audiovisual self said communication?
8 bn € per year in Germany.5 compete for it! content is remembered.6
 How do people deal with
the rising amount of
48% of internet time is spent ... there are content and data?
... an iPhone 5 billion pictures on flickr,
with communication
is used  What are the conditions for
in Germany in 2010 4,6 m uploads with
80 min daily. 7
(only 39% in 2009).8 information overload?
geotags. 9

Sources: 1Single Point, 2010; 2Facebookmarketing, 2010; 3BVDW-Mobilekompass 2010; 4Computerworld, Mar 2010;
5FTD, Nov 2010; 6Proconsult, 2004; 7Admob, May 2010; 8Busemann/Gscheide, Aug. 2010; 9 Flickr, Sep 2010

- for internal use only - Perception of information, P&I Product Portfolio Management 3
Summary.

Key statements

 The amount of information available and the number of

communication acts rise constantly.
 People protect themselves from information (over-)load by using an
individual set of interacting filtering layers which support the user
to prioritize and identify relevant content and reduce complexity.
 Social, societal and job-driven pressure can lever out the filtering
system and pave the way for individual perception of overload.
 Offers that combine attention triggers (e.g. emotions) with focused
content and services to enhance convenience successfully guide
the users’ media usage – as demonstrated by social networks.

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Impact on Deutsche Telekom.

Customer demand Strategic impact

Make it unified: Offer all-in-one sync solutions and cloud

Multiplying of channels and screens leads to an increased
services to manage all data. Service portability with the same
Simplicity complexity to manage all personal data. Ease of use and data
“look and feel” and seamless user experience are crucial,
availability everywhere is highly demanded.
additional a market positioning as trustful provider.

Emotions are a key trigger to stimulate user’s attention and to Catch attention: Advertisements as well as services have to be
Emotions pass information through personal filters. Personalized content emotionalized and embedded in a multi-channel strategy to be
leads to high involvement and satisfaction. perceived and memorized. Personalization rules.

Increased amount and complexity of information challenge the Give orientation: Provide convenience by offering all relevant
Guidance consumer to prioritize and manage services and data. People communication and content on one platform. Semantic web
need solutions that help organize data and communication. solutions and intelligent search develop into powerful tools.

Be there, everywhere: Mobile internet and advertising models

Availability of situation and location adapted information and
are increasingly determined by location and context.
Context service is crucial. Appropriate reachability mechanisms to be
Reachability management and multimodality ease the usage of
best connected are increasingly expected in every situation.
services in any situation, e.g. text2speech within cars.

- for internal use only - Perception of information, P&I Product Portfolio Management 5
Agenda.

 Motivation, summary and impact

 Key messages
- Basics of cognitive processing

- Changes within communication and media

- Filtering layers

- Perception of overload

 Appendix

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People have limited resources for perceiving and focusing on
information.

Basics of cognitive processing. Findings

 Attention means focusing

human awareness on a
aware specific item.
Attention is
Resource only partly  Recovery time to refocus the
are
“attention” unaw under control. attention takes 20 times the
length of an interruption.1
 The perception of information
Awareness depends on personality and surrounding. is strongly limited. Only part of
the perceived information
moves into the long-term
perceive check store
memory.
Processing of
information 2

People can perceive
7 information every
3 seconds.
Source: 1Computerworld, Mar 2010; 2 Schraw/McCrudden, 2009
Only some information Long-term memory  Provider have to be aware that
is processed within supports selection
short-term memory. by schemata. a rising amount of digital
media competes for the
limited resource “attention”.

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The volume of data constantly grows, while boundaries between
information and communication erode.

New channels create a vast amount of new attractors. Findings

Communication Media consumption  Amount of communication

acts increases steadily.
Traditional channel Traditional New situations
 New aspects of media and
 Voice, mail, IM, SMS
 Chat, etc.
behavior
 Lean back
+  Mobile
 More multi-tasking communication permanently
 Lean forward  Interactive, 3D, etc. challenge the consumer's
+ attention.
Personal touch  Information and communicat-
 Social networks Media exposure ion blur with increasingly
 Twitter, newsfeeds automated messages from
 Status messages (e.g. Traditional screens
friends, appliances)
persons or personal devices.
 TV, radio
- Facebook friendship means
 Newspaper, books
 Web
receiving an average of 20
status updates per day.1
Content formats +
Traditional Situation Multiple new screens
contents adapted
 Picture +  Geo-tagged
 Web on TV
 Smartphone  Telcos have to focus on tools
 Video  Real-time  eBook and services which support
 Text  Augmented reality  Netbook, pads customers to manage personal
Source: 1Facebookmarketing, 2010; own calculation Customer Foresight Team data and communication.

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Each new screen shapes a new pattern of user's attention.

New screens extend the options for media consumption. Findings

 Complexity of content and

device management rises.
World of  The use of communication
TV, radio and media on a new screen
and print leads to a modified behavior.
PC world
 “Smartphonization” of society.
- 20% of German2 and 40% of
US American3 mobile phone
Internet usage1 owners use mobile internet.
Mobile (Proportion of absolute internet time)
 Mobile internet activities differ
world 100
%
Others from desktop ones. Sessions
80
Search, portals
are shorter and more “quick
60 Entertainment
diving” instead of “surfing”.
40
Functionality between devices Communication
20
overlaps more and more.  DT has to ensure the avail-
0
Services are increasingly decoupled Desktop Mobile ability of services and data
from a device. internet internet
across all devices with
Source: 1Nielsen, May/Jun 2010; 2Admob, May 2010, 3BVDW-Mobilekompass, 2010 seamless user experience.

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Users reduce variety of content and services.

Users focus on a relevant set. Findings

Mobile app-world: TV world : 5

 Although having access to
Thousands of apps in the app-store
amounts of content/services,
1.030 channels existing users actually only use a few.
Initial set of pre-installed apps  After a trial phase, each user
+ focuses on his relevant set
9 downloads 73 channels
per month.1 available on which best suits his needs.
average
(Germany)  People’s relevant set often
- 90 % “trial and
delete” and just
contains a similar selection of
used once.2 popular contents or services.
14 channels - In Germany, t-online.de ranks
used regularly on position 4 concerning
27 apps are installed on average.3
6 channels in
reach behind google, ebay
 5 apps are used regularly by “relevant set” and youtube.8
40% of people.4

@ @@
Online-world:
@@ @
@ @@ @ 6 web sites are visited on average

@ @ within a single surf sesssion.6

@ @@ @
 DT has to be present in the
@ @ @@
Kids and teens (6–16 years) use
only 6 websites regularly.7 customer's relevant set. Focus
on core business areas with
Sources: 1Admob, May 2010; 2BVDW-Mobilekompass, 2010; 3Nielsen, Sep 2010; 4TNS Emnid, 2010; 5SevenOne Media, 2010; an significant market impact.
6eResult, 2010; 7Elements of Art, 2010; 8GfK WebValue, Jul 2010

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Individual set of filters selects relevant information out of the vast
amount of data.

Different filters reduce and evaluate contents and sources. Findings

 Filters determine the

perception of the world and
Personal filters are powerful guiding systems.
Media &  Evaluate and select information  All three filtering layers
communication sphere based on: Physiological limitations, cooperate and interact with
learned routines, personality and each other.
mood.
 Together, they define the
permeability of the individual
Situation filters filtering system for every
single person.
 Place, time, activity and mode build
the setting for the perception of
media.

Digital filters
 Tools and services that support a  DT is able to influence the
person to select and prioritize individual filter criteria to
information. attract customer attention.

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Personal filter: Character is decisive for the ability of filtering.

The individual set of personal characteristics shapes this filtering layer. Findings

 Perception of information load

 Interests, values, objectives is highly subjective depending
on the personal ability to
Individual  Involvement, prejudices
“protect” oneself.
predisposition  Self-confidence
 Personal filters are not fix, they
 Age, multi-tasking ability, may change during the
learned routines personal course of life.
 The decision making type is a
strong personal filter. The
Decision making types Emotions “Maximizer” more easily suffers
from information overload.
Satisficer Maximizer Information Memory
 Information enriched by emo-
tions passes filters more often.

Two main types: Consideration of Information with an emotional touch  Emotionalizing as a key
facts until a given decision criteria is stimulates personal attention and strategy! Personal touch in
fulfilled vs. consideration of all facts. leads to a better memorization. advertising, hardware,
services, etc. is crucial!

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Situation filter: The personal situation determines the choice of
media channels and tools.
Place, time, activity and mode build the setting for media consumption.
Example for “place & time”
 Users’ attention is focused on the
local surrounding.
 World will be seen with Google
glasses – not being listed means
being out.
Example for “activity & mode”
 While driving, people have
limited cognitive resources left.
 Choice of channels is limited.
SMS can not be written, but
speech-to-text is helpful.
- for internal use only -
Findings
 Information perception and
needs are strongly situation-
German restaurant search in New York City dependent.
 Situation predetermines the
chosen device and channel.
 Users increasingly expect
situation-adapted information
and interfaces, e.g. reach-
ability management or unified
communication.
 Location-based services
Driving a car develop into content
Yes
aggregators.
Mobile calls,
radio, music, etc.
No  Existing customer usage data
enables DT to provide best
SMS, text, video
fitting situation-, location- and
context-based services.
Perception of information, P&I Product Portfolio Management 13
Digital filter: Preselection evolves as an effective filter besides
blocking and selecting.
Main filtering principles.
Push
Blocking of stimuli that
try to catch attention.
Examples:
 Spam filter, pop-up-
blocker
 Mailbox
 Black and white-list
Prevent overload
focusing on relevance!
Source: 1ENISA, 2009
- for internal use only -
Findings
 Filters for pushed content
Pull Preselection block information and protect
the limited personal attention.
Focus of perception on a Rely on a given structure - In Europe, e-mail provider sort
given need. within an eco-system. out more than 95% of the total
email traffic.1
search  “Pull filters” help to actively
focus on needed content and
Out of scope information.
 Eco-systems with preselected
Examples: Examples: content and services reduce
 Search engines  Social networks complexity, what makes them
 Favorites, apps,  Portals successful.
recommendations  Content aggregating
 Intelligent agents services
Save time and Filtering and prioritizing  DT has to focus on most
get best information! as guiding system! relevant filter approaches to
reduce complexity and pro-
vide useful guiding systems.
Perception of information, P&I Product Portfolio Management 14
Extrinsic stress factors are main drivers for the perception of
overload.

Extrinsic stress factors. Findings

 Extrinsic stress factors increase

the rate of burn-outs.
Work factors Social factors
- In Germany, 80% increase of
 Work enforcements:  Necessity for self- absence hours due to psycho-
Volume, dynamics, marketing in all social logical illness in last decade.1
requested knowledge areas  Multi-tasking causes reduced
 Enhanced  Personal dependency concentration and productivity.
multi-tasking on social appreciation
requirements - An average office worker is
 Peer-group pressure disrupted every 11 minutes.2
 Required response - Immediacy of
times response
 Overload and burn-outs arise
especially in high competitive
- 24x7
knowledge societies.
- Digital
- Mental illness causes a damage
Market constraints friendships
of 8 bn € per year in Germany.1
 Multiple communication
opportunities  Opportunities for DT arise to
 Interaction all over establish B2B-mechanisms to
 Critical reliability of sources reduce stress factors at work.
Source: 1FTD, Nov 2010; 2Focus online, Feb 2009

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Social networks are a successful combination of user experience,
simplicity and emotions to gain user's attention.

Social networks take an increasing part of internet time. Findings

Emotions Preselection  Social networks position

themselves as “guided -
guarded - gated” gardens.
+  Services outside these guiding
lines lose attractiveness.
 Success of social networks is
still increasing.
 Facebook reaches over 500 m
users in 2010 with the highest
Success of social networks part of active users (> 50%).3
% Germany1 % USA2  They create emotional lock-ins
100 100
80 80 with a focus on relationships
Time that users spend
Internet time

and emotions.
60 60 in social networks
Other
40
activities
40 grows strongly, with
20 Social 20 US as leading market.
0 9 16 networks
0
16 23
 Combination of DT communi-
2009 2010 2009 2010 cation assets, simplicity and
emotions are the levers to
Source: 1ARD/ZDF-Onlinestudie, 2010; 2Nielsen, Aug 2010; 3Facebookmarketing, Jul 2010; Nielsen, Mar 2010 success.

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Contact information.

Customer Foresight Team.

For more detailed information please contact:

Ralph Schepp
+ 49 228 181 22150
r.schepp@telekom.de

Dr. Susanne Adis

+ 49 6151 937 8213
susanne.adis@telekom.de

Customer Foresight is a regularly task of the P&I Product Portfolio Management.

- for internal use only - Perception of information, P&I Product Portfolio Management 17
Agenda.

 Motivation, summary and impact

 Key messages
- Basics of cognitive processing

- Changes within communication and media

- Filtering layers

- Perception of overload

 Appendix

- for internal use only - Perception of information, P&I Product Portfolio Management 18
Best practices - I.

Online relationship management for E-mail  Communication and Gmail response tracking plug-in
 Managing user's media across multiple devices and
Social media synchronization social networks

Crowd sourced mood search  Search of social media based on sentiments

 Services connect real-word objects with social and

Real-world tagging personal web information
 Solutions to merge communications channels into an
Aggregation of communications all-in-one interface
 Rich metadata enables video search over multiple
Tag-based movie search categories and contexts and reactivates old content

Source: Product and Service Radar

 Several kind of current services help the user to find and reach the information that fits best.

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Best practices - II.

MobileMe, Apple Windows live, Microsoft Ovi, Nokia

 Cloud based web-service.
 Synchronization of mail, contacts, and
calendar information across all Apple
devices (iPhone, iPad, Mac), PC, and
the web.
 Numerous services to communicate
and exchange.
 Integration of services (e.g. mail,
address book, calendar, instant
messaging, cloud storage, …).
 Synchronization of mobile data with
global data bases (e.g. address book).
 Integration of services.
 All propositions (e.g. mails, contacts).

 Automatically. No docking required.  All services in one place, access

mobile or desktop-based.

Source: www.apple.com, Dec 2010; www.windowslive.de, Dec 2010; www.ovi.com, Dec 2010

 Example for different all-in-one communication propositions.

 Services to keep all personal data (calendar, photos, music, etc.) in sync across all screens. All services, data and
hardware are integrated and interoperable.

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Best practices – III.
Siri.com - a personal digital assistant App for iPhone and iPod.

Example: Description
 The conversational interface
„Get me a table for two tonight at a good understands spoken requests,
User steakhouse“. typed keywords and phrases, or
graphical user requests.
OK I found these recommended steak restaurants  It works with a patented algorithm
near by.
that searches multitudes of
possible interpretations.
The following have open tables for two tonight: …  The service integrates many
sources (e.g. local business
directory, geospatial database,
- First filter by wording (Restaurant – Snack bar)
restaurant guides, online
- Second filter by the way words are interpreted
Used filters: reservation service).
- Third filter according to the online availability of contacts reservation services
- It filters out location off way, offline and not recommended locations.

Source: Siri, 2010; Searchengineland, 2010

 Siri.com is a service with personal context awareness. It applies what it knows about the users location, the time,
preferences and the task context to determine the most probable understanding of the intent.
 Apple took over the start-up company to get a foot into voice command search.

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Attention can be monetized.

Market volume of online advertisement Description

in Germany1
5000  Market volume of online
In million Euro

4000 Advertising targets at user’s advertisement is constantly rising.

3000 attention.
2000
 Users are paying for their usage -
1000 - 13,9 m € spending per day. with their attention spent on the
0 Year ads.
2007 2008 2009 2010e - 111 m hours of internet time
per day in Germany.  Emotion is a key trigger to gain
users attention. Emotionalized
Online users in Average online time per
Germany 20102 user per day (2010) 2 advertisement is deeper
memorized.

49 million 13 ct
136 min for each hour of internet
attention of a person.

Source: 1BVDW -OVK Online Report, 2010; 2ADR/ZDF Online Studie, 2010

 Online advertising is the most accepted way to get free content and services within the internet.
 Advertisers value each hour of internet attention of a person with 13 cent.

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Information processing model.

Sensory Working Long term Description

memory memory memory  Sensory and working memory
limits the incoming amount of
Capacity 3 to 7 discrete units 7 to 9 units of information Infinite information. Their memorization is
only short term.
Duration of 5 to 15 seconds  Long-term memory is a permanent
0,5 to 3 seconds Permanent storage.
retention without rehearsal

Provides initial Assigns meaning to Provides a permanent

screening and stimuli. It links individual repository for different
processing of incoming pieces of information types of knowledge.
stimuli. into larger units. This
enables people to derive
meanings and perform
mental operations.

Source: Schraw/McCrudden, 2009

 Sensory and working memory are limited in regard to duration and capacity.
 Especially due to the limited working memory, multi-tasking is just performable to a certain level.

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Lorenzkette.

We remember … Description
 The Lorenzkette shows the
proportion of content people
remember in dependency of the
displayed form.
 The percentage of what people
... 10% of ... 20% of ... 30% of ... 50% of ... 70% of ... 90% of really perceive is highly different.
what we what we what we what we what we what we  For example visual information is
read hear see see + hear say do stronger memorized than
information that is read.

Source: www.proconsult.cc, 2004

 The channel and presentation of an information or message plays an important role in regard to the long-term
memorization.

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Distractions and their consequences.

Process of interruptions: Description

 Knowledge workers have to switch
Interruption between concentration and a
Refocusing Refocusing after distraction
rising number of distraction.
Productivity requires 10-20 fold of time.
E.g. it takes 5 min to refocus  An average knowledge worker is
after a 30 second call.1 interrupted every 11 minutes.2
 This causes people to be more
and more distracted from their
main tasks, being irritated, more
impulsive and uneasy and in long-
ADT = Attention Deficit Trait term less productive.
- Phenomenon created by psychiatrist Dr. Edward Hallowell, 2005.
 Attention deficit trait leads to a
- Learned behavior where the brain actively seeks the interruption, as the brain can
difficulty to sustain attention and
no longer stay on one task for more than a couple of minutes. organize tasks and activities.
- People are easily distracted by extraneous stimuli and forgetful in daily activities.

Source: 1Computerworld, Mar 2010; 2Focus online, Feb 2009; Blewett; Klingberg;

 Frequent distractions cause a reduction of productivity, due to recovery effects. Multi-tasking by humans involves
interrupting one task with another.
 ADT costs the business world a substantial amount in lost productivity.

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Information input is just helpful up to a certain limit.

Description
 The decision accuracy rises only
to a specific amount of consumed
information.
 After a certain point, an
Decision accuracy

information overload takes place

and additional information will be
Overload counterproductive.

Information load

Source: Eppler and Mengis, 2004

 Information input beyond a certain point leads to a drop of decision accuracy.

 Too much information results in an overload.

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Different usage behavior of fixed and mobile Internet.

If all U.S. Internet time were condensed into one hour, how much time would be spent in the Description
most heavily used sectors?
 Email is still the most important
Social networks/ Others activity within mobile internet
Blogs Video/Movies E-mail usage.
Sports
Others
 The proportion of social network
Weather
Music
usage - already the biggest part
Entertain-
within the computer based
ment internet - is also strongly rising
Games within mobile internet usage.
News
Classifieds Search
Auctions
E-Mail
Multi-category
Entertainment Portals Social networks/
Search Instant Messaging Blogs Portals
Software Info Videos/Movies

Internet Mobile Internet

Source: Nielsen, May/Jun 2010

 Usage patterns of computer based Internet and mobile internet differ.

 People allocate different activities and distinct means to both Internet forms.

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Rising number of personal contacts.

Description
„There are persons, Chat Search contact Social community
which I contact over member  Different kind of contact ways
mobile or internet within the internet are used by a
every day at least higher proportion of people in
one time.” 75 comparison to 3 years ago.
67
63 64 62
57

43 44
48  Within the younger generation, the
34 33
36 38 number of people using internet
31
24
based communication was and is
15 remarkably higher than within the
average of population.

2007 2010 2007 2010 2007 2010 2007 2010

Basis: German population, 14-64 years Population People under 30 years

Source: ACTA 2010

 The proportion of people having contact over the internet has notably risen within the last 3 years.
 Social media offerings within the internet enlarge the number of personal contact points.

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Reachability and synchronization of personal data.

100% Description
Do not agree at all 15
80% 39
 18% of all people would like to
13
50 use their data on all their screens.
60% 29 85
They want to be able to
20 synchronize all data on all screens.
40% 14
24
 Already 43% would like to do so in
18 23 6 within the group of innovators in
20% 5
9 19 8 1 the area of communication
Agree totally 0%
9 9 3 products (19% of population).
All Innovators Early Late adoptors
adoptors

“It is important for me to have access to all my contact data over all devices
und to be able to synchronize these data.”

Source: Benefit 2010

 To have all personal information on all screens is of growing importance.

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Sources - I.

 ACTA: Allensbacher Computer und Technik-Analyse, 2010, http://www.acta-online.de/

 Admob: Mobile metrics report, May 2010
 Appelbaum/Marchionni: The multi-tasking paradox: perceptions, problems and strategies, management decision Vol.46 No.9,
p1313-1325, 2008,
 ARD/ZDF-Online-Studie: Van Eimeren/Frees: Fast 50 Millionen Deutsche online – Multimedia für alle?, Media Perspektiven 7-
8/2010, S. 334 ff
 Armand, Monika: Aufmerksamkeitssysteme, Informationsverarbeitung und Verhaltenssteuerung aus neuropsychologischer
Sicht, 28.4.2008, www.neuropaedagogik.de
 Blewett, Craig: Attention Deficit Trait, 26.3.2009, http://www.craigblewett.com/2/post/2009/03/first-post.html
 Busemann/Gscheide: Web 2.0: Nutzung steigt – Interesse an aktiver Teilhabe sinkt, Media Perspektiven 7-8/2010, S. 359 ff
 BVDW (Bundesverband Digitale Wirtschaft e.V.): OVK Online-Report 2010/02, 2010
 BVDW (Bundesverband Digitale Wirtschaft e.V.): Mobile Kompass 2010/2011, 2010
 Computerworld: Office technology - Productivity boost or time sink?, 30 March 2010, http://www.computerworld.com/s/article/
print/9174223/Office_technology_Productivity_boost_or_time_sink_?taxonomyName=Management&taxonomyId=14
 Deutsche Telekom AG, Product Portfolio Management: Benefit-Studie, 2010
 Deutsche Telekom AG, Product Portfolio Management: Product & Service Radar
 Dr. Rötzsch, Frank: Umgang mit der Informationsflut – Effizientes Wissensmanagement, proconsult,
http://www.proconsult.cc/download/Wissensmanagement_HR_Vortrag.pdf

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Sources - II.

 Dürnberger, Christian: Umgang mit der Informationsflut - Von einer Kultur des Rückzugs aus der Vernetzung, Ludwig-
Maximilians-Universität München, 23. Juli 2010, http://www.ttn-institut.de/node/1146
 Elements of Art: Die Lieblings-Websites der Kids – Entstehung, Zusammensetzung und Entwicklung des Relevant Set im
Interne, 2010
 ENISA: What Are the Measures Used by European Providers to Reduce the Amount of Spam Received by Their Customers?,
Third Anti-Spam Measures Survey, December 2009
 eResult: Anzahl genutzter Sites pro Surfsession, Usability-Blog, 27. Januar 2010, http://www.usabilityblog.de/2010/01/anzahl-
genutzter-sites-pro-surfsession-gibt-es-zielgruppenunterschiede/
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