WEARABLE DEVICES: (REALLY) READY TO WEAR

Ariad Communications

July, 2015

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OutlineThe landscape of wearables• What are “wearables”?• Who’s using them?• What are they used for?

Wearables and health• Wearables & health• Stakeholder map

The Future of Wearables

The landscape of wearables

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What are weareables?

Wearable technology, wearables, fashionable technology, wearable devices, tech togs, or fashion electronics are clothing and accessories incorporating computer and advanced electronic technologies (Wikipedia).

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Sales top 20 million units in 2014 20

million…And growth is expected to continue

Sources: Emarketer.com and pwc

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Wearables usage is taking off

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We’re in early adopter territory…But also in the beginning of hyper-growth years

10% of US online adults report having used a wearable device such as FitBit or Jawbone to track daily activity. In traditional s-curve models of product adoption, 10% represents the hyper-growth year, the point at which the curve bows upward, carrying the product toward mass-market adoption. (Forrester)

We are here

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Wearables strong among 30 – 54 something mass affluent

Source: NPD Group, January 2015

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And businesses are clamouring for them even more

68%of global technology and business decision-makers say that wearables are a priority for their firm

E.g., To monitor field workers' safety and occupational efficiency, Thiess (an Australian construction company) is piloting wearable devices from Amiigo and other vendors to measure blood oxygenation, body temperature, and movement to determine when employees are at risk. (Forrester)

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Marketers see contextual targeting based on wearable dataDeliver marketing messages directly to a wearable

“…the thinking goes, where there’s a screen, there’s an opportunity—and if projections are correct that sales of wearables could reach over 130 million units and gross almost $6 billion by 2018, that opportunity is a big one. …Wearables turn advertising into activity based engagement and integrate it even more closely with other content and experiences.” (PwC)

How are consumers using them?

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Most people want to use wearables for fitness and health

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Once you have a wearable, you tend to wear it a lot

Wearables & Health

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Exercise and calories top the list for health app users

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56% of US mobile app usershave shared their tracked information with their doctors.

(Source: emarketer)

56%

If you wear it you want to share it with your doctor…

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…But doctors don’t necessarily want it

“Sources in the medical devices, digital health, and healthcare industries say that most doctors have little time for, or interest in, using wellness data collected by wearable devices. They don’t want to spend money on additional (and unproven clinical systems), and most of all, they don’t want to worry about keeping the data private.”

(Source: VentureBeat)

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Employers want their employee’s health data

“employers will help mainstream wearable devices through sponsored wellness programs, and pharmaceutical and provider networks will leverage wearables to integrate with other content and services around key solutions that go beyond prescriptions and pills to drive meaningful behavior change.” (PWC)

70%of consumers say they would wear employer-provided wearables streaming anonymous data to a pool in exchange for a break on their insurance premiums…

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Insurance companies are incenting customers to use it

John Hancock Insurance offers discounts and points that can be redeemed for travel and merchandise just for living a healthy lifestyle.

Data from fitness trackers can be monitored automatically.

The Future of Wearables

From: Wearables Are Poised To Change The Marketing Landscape — Is Your Company Ready?

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Companies will create new business and service models with wearables• Wearables aren't going to be about hardware. They'll be about

creating innovative services — often served by entirely new business models — that reach people in mobile moments of need.

• Delivering insights derived from healthcare data. Founded by a physician, Vivametrica analyzes data from a variety of wearable devices — including consumer fitness trackers — and applies algorithms to help predict future health states like diabetes and heart disease. Users can share these insights with approved medical professionals for ongoing monitoring. In the future, such systems will extend from the consumer through the insurer and into the healthcare organization, providing analytics and insights to help people make better health-related decisions. (Source: Forrester)

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The endgame for wearables: The all-body networkCrossover devices. The Dash smart earbuds combine onboard storage for music with biometric tracking. Combining music and fitness allows you to create playlists suited to your athletic ambition or to pick you up when you're feeling down. Not far off, other crossover devices will bring biometrically informed personalization to everyday experiences; imagine food recommendations based on your mood or health status. (Source: Forrester)

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Recommendations

“Start by not designing a wearables strategy. Instead, begin with an analysis of your customer's journey to identify micro moments — those mobile moments that require only a glance to identify and deliver quick information that customers can either consume or act on immediately.” (Source: Forrester)

Focus on micro moments, then decide if wearables is right for them

The future of wearable devices in healthcare

$117 billion market For Internet of Things in healthcare by 2020

Source: MarketResearch.com

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Smart insulin injectors

http://www.usvigilant.com/bee/

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Ingestible sensorsFor medication adherence

Sensor measures stomach acids registers time medication was taken, patient’s heart rate, activity, and rest patterns Received FDA approval in 2012

“Half of medications will be digitized by 2020 – that’s our goal”

http://www.proteus.com/

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Vessyl: Track what you drink

“While we don't get into the specifics of how the technology works, we can tell you that there are sensors built in throughout the entire Vessyl. These are in the same realm of technology

as quality control in the food industry.”

Cup senses the liquid in it and tracks your hydration, calories, etc. Strictly speaking non a wearable but still a smart sensor that tracks health related data.

https://www.myvessyl.com/

Smart Infant monitors

Uses respiration sensors which relays live data and audio to your smartphone

http://mimobaby.com/

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Smart diapersFor kids and seniors

Diaper sensors track hydration, infection, UTI, Type 1 Diabetes, and kidney issues

http://www.pixiescientific.com/

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Scandu: a “Tricorder”Like the one they had on Star Trek

https://www.scanadu.com/

Interventions that have workedWhere wearables would track progress

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Interventions that have worked

Does monitoring, per se, increase goal-directed behaviour?• In general, YES.

– E.g., Study in which control participants were given pedometer vs. experimental participants were given fitbit and website tracking.

– Self-monitoring group increased steps and weight loss relative to their baseline, whereas control participants did not.

Source: American Journal of Preventative Medicine

To help people move more and weigh less

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Interventions that have worked

Does forming a specific plan help to increase goal-directed behaviour?• In general, YES.

– Connect a future critical situation (e.g., getting home from work) with a goal-directed behaviour (e.g., run for 15 minutes).

– E.g., Study in which control participants were asked to attend health and diet meetings vs. experimental participants who made specific implementation intentions (e.g., where, when, how I’ll exercise this upcoming week).

– Implementation intentions group lost more weight than control participants over a 2-month period.

Source: Health Psychology

To help people move more and weigh less

THANK YOU

Richard Marcil

General Manager, Ariad Health

rmarcil@ariad.ca

416-646-4192