designing smart

systems

How Can We Catalyze Smart Systems and Internet of Things Growth

Relationships

Skills Technology

Data & Content

Experience Behaviors

Boulder Zurich San Francisco

Discovering and Designing

Smart Systems & Services.....

........its about.....

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Innovators like Thomas Edison and Steve Jobs understood the value of “systems thinking” ...... each understood the value of product innovation and the business system that has created entire industries around their products. Their genius lies in the ability to look beyond discrete innovations and conceive of entirely new smart systems experiences that become new marketplaces.

The Internet of Things demands that we think about opportunities as.... ...systems not products....

Managing “Complexity”

Ease

of U

se

Harnessing The Value of Technology

Understanding User Behavior & Experience

Creating New Value For Customers Through New Smart Systems Technologies

Managing “Ambiguity”

Confi

denc

e

Understanding Business Models

Rapid Testing &Experimentation

High

Capturing Value For StakeholdersThrough Business System Innovation

+

High

Low Low

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Its also about doing things differently........ In our continued work with industry leaders pioneering new smart systems and services who have been able to drive sustainable growth and innovation over the long term, five major differences have emerged.

Designing New Experiences & Systems:

By looking at the customer experience through the user’s eyes and through the creativity of multiple parallel participants, players can gain a deeper appreciation of the viability of their offering. Domain knowledge provides a rich context in which to address new opportunities and it also minimizes the time investment to get new business development teams moving forward.

Extending Skills Through Relationships, Ecosystems and “Strange Bedfellows”:

Seemingly superior offerings can often fail because there is little understanding of how to participate or incentivize to participate at all. Inviting users’, customers’ & partners’ participation facilitates an acute understanding of the customer experience and the potential business system to support the solution. New solutions will increasingly be comprised of coalitions of self-motivated participants that pursue a common goal, not mere subcontractors tied to “command and control” schemes.

Organizing Clever Combinations of Smart Systems Technology:

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1

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Rapid Experimentation & Business Systems Innovation:

Success will depend upon understanding and choosing new or modified business models and acting quickly. Continuous experimentation is a must as new opportunities will often fail and re-form as learning grows.

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Companies can deliberately anticipate sustaining technologies ......innovation that creates new (and unexpected) opportunities can be systematically developed by leveraging cross-industry perspective to solve problems in radically new ways.

5 Aligning The “Business Architecture” With The “Technology Architecture”:

For the first time in the evolution of networked businesses, these two “architectures” must be viewed in close proximity. The two thrusts need to be mutually supportive without inhibiting one or the other. However, trying to coordinate and leverage the respective roles of technology architecture and business architecture often creates contention. We see the continuously evolving relationship between these two dimensions as fertile ground for innovation. They need to be interwoven and mutually supportive. In fact, we believe success in either increasingly goes to the company that effectively utilizes the combined potential of both.

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Designing technology and products for radically new systems & solutions....

In fact, combining device connectivity with collaborative networking platforms opens the potential for substantially new forms of collaboration between people and things. Connectivity of people and connectivity of devices are no longer independent phenomena - the Internet of Things and the Internet of People are rapidly converging.

Obtaining value from collaboration will often mean de-emphasizing products in a manner that’s understandably difficult for product companies to do. After all, if product companies aren’t selling material objects full of features that buyers touch and interact with and admire physically, then what are they selling?

We believe smart business design needs to transcend discrete product innovation. Assuming that the role of technology is only about making existing products or services more attractive no longer works. Technology suppliers need to creatively imagine fully developed systems and whole marketplaces. Players need to envision their market role as one that can address product, service and business systems in a world of infinitely expanding interactions and relationships.

The Interactions & Relationships Between & Amongst Devices, People & Systems

Will Drive Future DIfferentiation - Not Just Features & Isolated Capabilties

Simple monitoring of intelligent devices is not nearly enough to drive market impact. The fact that many common devices have the capability to automatically transmit information about status, performance and usage and can communicate with other devices anywhere in real time also points to the potential for intelligent devices that can interact with people, systems and collaborative networks.

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Organizing clever combinations of smart systems technologies & capabilities The Internet of Things Drives Opportunities To Leverage Technologies From Across Diverse Domains

Vehi

cles

Air T

rans

port

Inte

llige

nt Tr

ansp

ort

Syst

ems

Mar

ine T

rans

port

Rail S

yste

ms

Cons

umer

Ele

ctro

nics

Domes

tic S

ervi

ces

Home

Auto

mat

ion

Med

ical /

Hea

lthca

re

Secu

rity S

yste

ms

Fina

nce

Syst

ems

Offi

ce A

utom

atio

n

Build

ing

Auto

mat

ion

Back

-Offi

ce S

yste

ms

Com

mun

icatio

ns

Fact

ory/

Proc

ess C

ontro

l

Utility

/Grid

Sys

tem

s

Reso

urce

s / E

nviro

nmen

tal

Com

man

d/Co

ntro

lTe

lem

etry

/Gui

danc

e

Managed Services

EvolvingSoftware Architectures

Wireless & Sensor Networks

Human-MachineInterfaces & Software

Embedded ControlAlgorithms

Power Control& Smart Actuators

Smart Sensors& Switches

Mixed SignalProcessing

Cellular MobileCommunications

Technologies & Innovation Driving The Internet of Things & People

Location /

Presence

Mobile & Transport Systems Residential & Personal Commercial & Institutional Resources, Industrial & Security

Evolution ofOut-Sourced Services

Development ofWireless Carrier Platforms& Support Systems

Explosion of Social Networking

Advanced MilitaryCommand & Control

AerospaceCommunications

Telemetry Systems& Command/Control

Vehicle Navigation /UI/Dashboard Systems Industrial

Control & Automation Military Training& Simulation Systems

VehicleControl

IndustrialHVAC & Power Control

Electronics

Industrial& Utility Control Systems

Marine, Rail, Aero & Vehicle Power Control

Consumer Game Systems

Financial TradingSystems

Industrial& UtilityControlSystems

Military Navigation, Guidance &

Communications SystemsConsumer Electronics& Smart Phone Developments

Vehicle Sensors& Systems

GPS / Navigation SystemsCommercial Vehicle Fleet Management

Cellular MobileCommunications

Cellular MobileCommunications

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Rapid experimentation becomes the defacto mode in new systems innovation3

Leveraging discovery and experiential processes fosters communications across traditional functions and creates work streams that cross disciplines and boundaries to drive new value

UnderstandingInternal& External Behaviors

Developing SystemConcepts

Identifying unmetNeeds

V 1Rapid ExperimentsFor Insights

Development drivenby co-evolutionaryinputs & process

Synergies drive new design thinking, advanced features, and business model iteration

V 2 V 3 V 4 Launch Model

ContextualDesign

User ParticipatoryDesign

Rapid Low CostConcept Simulations &Testing

Customer “End-To-End”Experience

Higher FidelityConcept Simulations

Customer ParticipatoryDesign

InformationArchitecture

Larger Scale CustomerParticipation & Testing

System Prototypes &Pilot Designs

Defined End-To-EndExperience

Pilot Product orService

UserExperience& Systems

Design

Concept Releases

BusinessModeling & Design

Discover/Define Develop Deploy

Understanding& DiscoveringInnovation Assets

Initial BusinessModels & Prototyping

Understanding User& PartnerRelationships &Interactions

Trade-Off Analysis

Develop RIsk Models & Options

Eco-SystemConcepts &Development

Future Road Map

Technology Sourcing & Alliance Options

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The Smart Business phenomena is giving rise to a whole new generation of technology and services enabling players who are linking users, producers and intermediary channels in new ways which, in turn, is creating many opportunities to offer customers a “managed experience.” This ultimately allows the service provider to create and bundle new values such as offering financing for the traditional product within the managed services agreement -- “rent it; don’t buy it” - driving new economic impacts in the marketplace.

Relatively few traditional product companies have succeeded in pursuing both product and services activities on a balanced, closely coupled basis. They are missing the opportunity to create a new model of success. These emerging combinations of players are acting in a truly disrupting manner in the marketplace.

Evolving Internet of Things and Smart Systems Player Landscape

Lantronix

CalAmp

Opto-22Belden

Telit

EKA SystemsTendril

Crossbow SynapSense

Sentilla

Millennialnet

Helicomm

Apprion

Echelon

Freescale

Freescale ST Micro

Intel

Texas Instruments

Ember Jennic

Hitachi

Samsung

Qualcomm Connect One

Atmel

IBM

Cisco Systems

SAP VM Ware

Oracle

Microsoft

Hewlett Packard

EMC

NetApp

Apple

Nokia

Verizon

Telefonica / O2T-Mobile

Vodafone

ATT

Sprint Nextel

China Mobile

BT

Google

Amazon

SunGrid

IBM BlueGrid

Symantec

CA

SAICDeloitte

CSC Wipro

Infosys

CapGemini

EnernocSmartSynch

Elutions Trilliant

Comverge

Lantronix

Sierra Wireless

Ruggedcom

Tridium

Kore Telematics

Numerex

Aeris

Jasper Wireless

Axeda

Esprida

Ei3

M2M Datacorp

Orbcomm

Skytel

Cimetrics

Mocana

Box Telematics

WylessWireless Matrix

GridAgents

MAYA Design

Qualtech SystemsRichards-Zeta

NextNine

Sensus

GridPoint Sigma Designs

Crestron 4Home

Control4

Sensinode

Daintree

Palantiri Systems

DeepStream

Eurotech

Advantech

Raytheon Lockheed Martin

Elster

ItronSilver Spring

Iridium

Meshnetics

DPAC

Data Online

Comtrol Cinterion

Orchesys

Crossbridge

B&B Electronics

MotorolaSixnet

Avid Wireless

NexAira

Arch RockEnOcean

Greenpeak

Pedigree Tech

RF Code

Smart Signal

V2com

Atos Origin

Airbiquity

TelenorOrange

Enfora

Imetrik

Digi Int’l

Accenture

Qualcomm

Comtech M2M

SkyFoundry

force.com

Facebook

Ebay

QNX

Wind River

Dust Networks

Echelon

Moxa

Laird Technologies

eDevice

RF Monolithics

Man

agem

ent

Inte

grat

ion

Har

dwar

e

“Platform” Focus “Portfolio” Leverage Focus

The boundaries between products and services are becoming so fluid that success in either can only go to those who utilize the combined potentials of both

4 Extending skills through relationships and ecosystems....

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These parallel “architectures” need to be mutually supportive without inhibiting one or the other, because he continuously evolving relationship between these two dimensions as fertile ground for innovation

5 Aligning the “business architecture” with the “technology architecture”...

Technology Integration Information Models Collaboration Tools

Integrating Business Design and Information and Technology Architecture Will Be Critical To Success

We see the continuously evolving relationship between these two dimensions as fertile ground for innovation. They need to be interwoven and mutually supportive. In fact, we believe success in either increasingly goes to the company that effectively utilizes the combined potential of both.

Trying to coordinate and leverage the respective roles of technology architecture and business architecture often creates contention

Business Strategy Competitive Positioning Go-To-Market System

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STRATEGY DESIGN

FORUMS, TOOLS& INTERACTIONSRESEARCH

DISCO

VER

Ex

plor

e

Ex

peri

ence

Map

Conceive

Participate Prototype ModelInnovate

ValidateDEFIN

E DEVELOP

ArchitectInvest

Build

Research, Analysis, Forecasts,Content & Reports

Player & Event Tracking Platform

Smart Systems Framework

Smart Systems Lab

Tech Discovery Forums

Domain Adoption Forums

Revenue &Business Models

Innovation Workshops

GrowthOpportunityAssessments

DEPLO

Y

We plan and build new businesses and growth opportunities by leveraging deep analysis, thoughtful interactions and unique systems and business model design and development tools

To discover, design and develop innovative smart systems, organizations must consider all the elements involved and the context they fit into. The benefits that will flow from the recognition that traditional strategy and product development protocols will not meet the needs of a connected business are nearly infinite.

Harbor Research Inc. has nearly 30 years of experience supporting new business creation and development. We continually strive to generate deep insight into what drives value creation and competitive advantage in our clients’ businesses and the economy as a whole. Harbor helps companies outperform their peers and rivals by instilling innovation into the core of their business development processes. We help client’s foster creative thinking, facilitate diverse perspectives and unconventional insight and, most importantly, we directly participate. The result is increased certainty around vital new business decisions.

We work collaboratively to help clients come to confident answers today while also building their capabilities for the future - we are passionate about creating lasting impact. We believe that innovation can be driven from systematic methods and that enduring capabilities and processes can be built to reduce the risks associated with new growth ventures. Every solution we propose is informed by a combination of real world experience and unique processes and methods that are tailored to the dynamics of your organization.

Our approach is simple: help clients create and capture value by combining accurate data discovery and analysis with strategy development and creative systems-thinking

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Value Created From Our New Model Is Informed By Community Interactions ....

The relationships and interactions we help foster serve as a context for deep insight and more value creation. Every relationship building event, every workshop and platform project, regardless of its focus, is enhanced by the range and depth of these relationships. The Lab intends to be a significant catalyst for migration of indus-try and technology experience.....

Harbor seeks out clients whose strate-gic and business development mode shows a desire to drive disruption and manage change effectively, both in their organization and through their relationships in the marketplace. These are the forward looking com-petitors who can benefit most directly from the breadth of knowledge and process skills embodied in Harbor.

lairtsudnI Energy & Infrastructure Consumer Healthcare Buildings Transportation

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Contact UsBoulder USAAlex Glaser

Harbor Research, Inc.1942 Broadway Suite 201Boulder, CO 80302USAp +1 303.786.9000 f +1 720.282.5801

m +1 314.374.8656Email: aglaser@harborresearch.com

Contact UsZurich EuropeGlen Allmendinger

Harbor Research, Inc.Badenerstrasse 549 8048 ZurichSwitzerlandp +41.435016.783 f +1 720.282.5801

m +1 617.290.3797Email: gallmendinger@harborresearch.com