experience behaviors smart framing smart systems ... · b o u l d e r z u r i c h relationships...
TRANSCRIPT
B o u l d e r Z u r i c h
Relationships
Skills Technology
Data & Content
Experience Behaviors
Framing SmartSystems andServices GrowthOpportunities
smartsystems
design
?
what are smart systems andthe internet of things?Why Is It So Important?
Global expansion; re-engineering; lean practices; mergers and acquisitions. For most companies these strategies for growth and value creation have reached the point of diminishing returns. As networks continue to integrate the physical and virtual worlds, what worked in the past to drive growth is less likely to work now or in the future...
How Should We Think About Framing Opportunities?
The assumption that the role of new business design and development is only about making existing products or services more attractive no longer works. We believe smart systems design needs to transcend discreet product or service innovation. Business developers need to creatively imagine fully developed systems and whole marketplaces.
To discover, design and develop innovative smart systems, organizations will need new and uniquely facilitated processes...
where are the biggest growth opportunities?
What Are The Success Factors?
Diverse collaborative networks will be self-organized by people who are motivated to explore and develop ideas they care deeply about. Business innovation will extend beyond ideas about new products and services to the very manner in which business is conducted.
Building new ventures for the Internet of Things requires new and very different modes of design and development – organizations will need to push the boundaries of collaboration to include many new and unfamiliar participants...
how should our organization respond?
What unrealized technology, system and market leadership opportunities are available in the smart systems and IoT arena?
Which combination of customer value elements will differentiate us? How can we make, partner of acquire those elements?
What business design, revenue model and management priorities will help build long term success?
Smart SystemsGrowth
Opportunities
01 Framing Smart Systems Growth Opportunities Page 04
02 Smart Systems Growth Models and Strategies Page 14
03 Smart Systems Design Process and Methods Page 28
04 Smart Systems Design Client Cases Page 38
CONTENTS
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01framing smart systems growth opportunities
Strategy &Business Model
Relationships & Interactions
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FramingSmart Systems
GrowthOpportunities
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framing smart systems growth opportunities
Overview
User Experience
Business
MarketRelationships
Technology
Smart Systems are quickly becoming a massive, global digital nervous system conecting billions of people, tens of billions of devices, and trillions and more data points through a network of unprecedented scale
Smart Systems and theInternet of Things Stack
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Framing Smart SystemsGrowthOpportunities
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As these intersections blend the physical with the digital, they are mediated by ongoing user interactions, business processes, technology architectures, and newly created market forces
Business
Relationships Tech
ContextIdentity // Location // Time
InteractionVisual // Audio // Tactile
User Experience
Market
Tech
User Experience
Rel
atio
nshi
ps
Business
Revenue TypeSubscription // Managed // Indirect
Market Delivery Direct // Channel // Value Adders
BusinessBusiness ModelSolo // Cooperative // Collaborative
MonetizationCost + // Value-Based // Disruptive
Market
Wireline
WPAN
WLANWWAN
LPWAN
Mobile & Collaboration
Analytics & Dashboards
Hardware
Software
Connectivity & Device Enablement
Network Services
System Applications
Value Added ApplicationsApp’l Enablement
Data Aggregation
Device Management
Customers Early Adopters // Co-Creation
SuppliersElectronics // Software // Modules
OperationsOutsourced Mfg // Logistics
Design Design Firms // Incubators
Investors VCs // PE // Corporate Funds
Value Added Partners Prof Services // Integrators
Channel Partners VARs // VADs // Retailers
ResearchUniv’s // Consortia
Ecosystem
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Overview User ExperienceLayer
“User Experience” is the sum of our relationship with technology. It encompasses the practical—like which
senses, gestures, and inputs we use to interact with our devices and surrounding
environment—as well as the emotional: how the interaction makes us feel.
Context
Handheld / Mobile
Fixed
Embedded
Accessories
Interfaces
Internal
Device
Textile Adhere/Patches
FootwearClippedEarbuds
StrappedEyewear Headware
Identity
Location / Surroundings
TIme
Visual / Audio /
Tactile /
Gaze TrackingFacial Expression Tracking
Emotion RecognitionVoice Recognition
Haptic Sensors Pressure Sensors
Taste/Smell SensorsJoysticks / Mice
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Technology Layer
From the design of silicon to the end-user experience, the technologies of the IoT are driven by data.
Sensors, software, and networked infrastructure collect, analyze, transmit and present data for the users and devices who need it most.
Overview
Routers & Gateways- 2G, 3G, 4G Routers
- Ethernet Routers
- Gateways & Proxy Servers
- Data Aggregator
- Residential Gateways
- Set Top Box
- Voice Gateway
- WAP Gateway
Silicon / Embedded Intelligence- 64 bit Microcontrollers
- 32 bit Microcontrollers
- 16 bit Microcontrollers
- 8 bit Microcontrollers
- 4 bit Microcontrollers
- DSP Controllers
- Graphic Processors
- System on a Module
- Systems on a Chip
- Single Board Computers
Software
Device Management- FOTA (Firmware Over the Air)
- Distributed Version Control
- Configuration Management
- Software Versioning
- Device Drivers
Network Hardware
Security & Encryption- Security / Anti-Virus
- Encryption
- Patch Mgmt
- End Point Authentication
- Anti-Device Tampering
- Preboot Verification
- IP SEC
- Certificate Management
- Cryptography
- Data at Rest Encryption
Comms Stacks- Wireline
- WPAN
- WLAN
- LPWAN
- WWAN
Operating System- Virtualization S/W
- Desktop and Mobile GUI OS
- Embedded / GUI based RTOS
- Commercial RTOS
- Open RTOS
- Boot Loaders / Comm’s stacks
Connectivity & Device Enablement
Network Services
Wireline
WPAN
WLANWWAN
Cloud Services
Security / Data Policies & Governance
Protocols / Frameworks
System Applications
Application Enablement - API Services
- Application Enablement Tools
Data: Agg / Transformation / MGMT // Edge Processing- Storage
- Data Normalization
- Data Classification
- Data Governance
- Ad Hoc Queries
- Rules Engine
- Statistical Analysis
- Streaming Analysis
- Real-Time (time series) Analysis
- Presentation & Visualization
- Event Processing
Device Management & Connectivity- Upgrades and Versioning
- System Configuration
- Device Registry
- Identify, Security and Encryption
- Device Provisioning & Commissioning
- Firmware Management
- Gateway Management
Monitoring & State
Prognostics
Automation / Analytics
Location & Tracking
Diagnostics
Security Management
Energy Management
Supply Chain & Logistics
Customer Support
Asset Management
Mobile & Collaboration
Analytics & Dashboards
Value Added Applications
- Bluetooth
- 6LoWPAN
- NFC
- RFID
- Cellular (4G/LTE - 2G/GSM
3G GPRS)
- WiMax
- Ethernet
- Modbus
- Powerline
- WiFi
- DECT
- Thread
TCP / UDPIPv4 / IPv6
CoAPMQTTXMPPRESTful HTTPAMQPLWM2MThread
OneM2MDDSDTLSuIPTelehashUPnPAllJoyn
SMPP (Short Message Peer to Peer) Virtual IC SMSOMA Device Management CPE WAN Management Protocol (CWMP)Weave
REST APINode JSHTML 5Web SocketsJSON/JSONP
Physical- Power- Sensors - Actuators
LPWAN- Sigfox
- LoRA
SaaSPaaSIaaS
Core Messaging / Application
Technology Layer
From the design of silicon to the end-user experience, the technologies of the IoT are driven by data.
Sensors, software, and networked infrastructure collect, analyze, transmit and present data for the users and devices who need it most.
Overview
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Market Layer
Some markets adopt new technologies faster than others, but no sector of the economy is immune to the expanding influence of the IoT.
While there are similarities that apply across the board, each vertical has its own set of needs and challenges that shape the way networked technologies add value.
Overview
Transportation Infrastructure Aerospace
• Tra c Management• Toll Collection• Parking Systems
• Military Aircraft• Commercial Aircraft• Personal Aircraft
• Military Watercraft• Commercial Watercraft• Personal Watercraft
• Rolling Stock• Urban Transit• Locomotives• Infrastructure
Marine Rail
• Construction O• Military O• Personal On-road• Commercial On-road• Emergency On-road
Vehicles
Mobility
InformationTechnology &
Communications
Industrial
• Lighting• Power Distribution• Life Safety• Climate Control• Water & Gas• Security & Access Ctrl
ResidentialCommercial & Institutional
• Lighting• Power Distribution• Life Safety• People Moving• Climate Control• Water & Gas• Security & Access Control
• Climate Control• Appliances
• Security & Access Control• Power Distribution
• Water & Gas• Life Safety• Lighting
Facilities &Security
Borders & Ports
of Entry
Secu
rity
Campuses, Bases & Public Venues
• Access Control• Security & Detection• Surveillance
• Access Control• Security & Detection• Surveillance
Indu
stria
l
Hybrid/Converting
• Processing• Auxiliary Equipment• Controls &
Instrumentation
• Processing• Converting• Handling &
Packaging• Controls
Manufacturing Supply Chain
• Fabrication• Material Handling• Assembly/Test• Controls
• Handling• Warehouse /
Distribution Systems
Resources &Production
Reso
urce
s
Power Generation
Alternative PowerConventional Generation
Power Transmission & Distribution
Transmission & Distribution
Power Quality & Electrical
BackupEner
gy
Institutional & Commercial
Tran
spor
tRe
tail
/ C
omm
erci
al• Restaurants• Hotels
• Goods & Groceries
• Convenience/Gas
Hea
lthca
re
• Patient Care• Surgery• Labs
Hospitals & Health Facilities
Home / Personal Healthcare
• Home Care• Mobile Care• Lifestyle
• Entertainment• Public Venues
& Stadiums
• Advertising• Vending• Repair Services
• Cleaning Services
CommercialServicesPublic Venues HospitalityRetail
Enterprise
• Computing • Communication• O ce
• Mobile• Field
Prof
essio
nal
Con
sum
er
Home
• Communication• Infotainment• Home O ce
Water Utility
Oil & Gas
• Oil & Gas Extraction
• Oil & Gas Processing
• Oil & Gas Transport
Agriculture
• Farming• Cultivation• Livestock
Management
• Water Extraction• Water Processing
/ Treatment • Water Transport
Mining
• Extraction• Material
Handling• Material
Processing
Environment & Infrastructure
• Infrastructure Monitoring
• Environment Monitoring
Power Generation
Build
ings
••
•
•
Industrial
• Lighting• Power Systems• Life Safety• Climate Control• Water & Gas• Security & Access
ResidentialCommercial & Institutional
• Lighting• Power Distribution• Life Safety• People Moving• Climate Control• Water & Gas• Security & Access Control
• Climate Control• Appliances
• Security & Access • Power Distribution
• Water & Gas• Life Safety• Lighting
Facilities &Infrastructure of Entry
Campuses, Bases & Public Venues
• Air Monitoring• Water Monitoring • Floods• Trasnport Sys
RetailHealthcare &Commercial
Services Reta
il /
Com
mer
cial
• Restaurants• Hotels
• Goods & Groceries
• Convenience/Gas
Hea
lthca
re
• Patient Care• Surgery• Labs
Hospitals & Health Facilities
Home / Personal Healthcare
• Home Care• Mobile Care• Lifestyle
• Entertainment• Public Venues
& Stadiums
• Advertising• Vending• Repair Services
• Cleaning Services
CommercialServicesPublic Venues HospitalityRetail
Build
ings
Transportation Infrastructure Aerospace
• Tra�c Management• Toll Collection• Parking Systems
• Military Aircraft• Commercial Aircraft• Personal Aircraft
• Military Watercraft• Commercial Watercraft• Personal Watercraft
• Rolling Stock• Urban Transit• Locomotives• Infrastructure
Marine Rail
• Construction O�-road• Military O�-road• Personal On-road• Commercial On-road• Emergency On-road
Vehicles
Mobility
Tran
spor
t
Industrial Data Centers
• Network Equip• Storage Devices• Servers• Cooling Systems• Sensors• Security & Access
Borders & Ports
• Access Control• Security • Surveillance• Detection
• Access Control• Security • Surveillance• Detection
Environment Urban Systems
• Air Monitoring• Water Monitoring • Floods• Trasnport Sys
Infr
astr
uctu
re
• Waste Mgmt• Lighting• Parking• Pedestrian Sys
Resources &Production
Indu
stria
l
Hybrid/Converting
• Processing• Auxiliary Equipment• Controls &
Instrumentation
• Processing• Converting• Handling &
Packaging• Controls
Discrete Manufacturing Supply Chain
Reso
urce
sProcessing Industries
Water Utility
Oil & Gas
• Oil & Gas Extraction
• Oil & Gas Transport
• Oil & Gas
Agriculture
Mining
• Extraction• Material
Handling• Material
Processing
Electrical Power
• Power Generation • Transmission &
Distribution
Processing
• Alternative Power
Enterprise IT
• Computing • Communication• O�ce
• Mobile• Field
Prof
essio
nal
Cons
umer Home IT & Appliances
• Communication• Infotainment• Home O�ce
InformationTechnology &
Communications Cons
umer
• Warehouse /Distribution Systems
• Livestock Management
• Fabrication• Material Handling• Assembly/Test• Controls
• Mat’l Handling• Farming• Cultivation
• Water Extraction• Water Processing
/ Treatment • Water Transport
• Big Box Retail
Specialty Retail•
• Water Mgmt• Air Pollution• Floods• Chemicals• Weather • Transport Sys
• Appliances
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BusinessLayer
OverviewIntegrating smart systems into business processes requires restructuring long-held assumptions about how products and services are brought to market.
Collaboration between and among users, customers, developers and partners will be a minimum requirement for success.
R evenue Model
License & Delivery
Market Delivery
Revenue Type
DeliveryOn Premise
Bundled / HybridHosted
Co-location
Cloud
LicenseProprietary - Commercial
Proprietary - Shareware
Open SourceApache / BSD / GPL / GNU / MIT Mozilla / Eclipse / Creative Commons/ Public / LGPL / AGPL Model
North America, Europe, S. & Central America, Asia, Africa, Oceania, Worldwide
RegionB2B / B2C / C2B / ETCTransaction Type
Indirect
One-time
Pay-per
Subscription
• Per seat• Per device
•• Per application
• Per site• Royalty
• Usage-based• Tiered / Freemium• Unit-based
• Transaction•Value-based• Timed
• Flexible - Capped• Open / One -time• P2P
LoyaltyInternal Use
••
Direct ServicesChannelDirect
Distributers & WholesalersProfessional / Tech ServicesOEM / ODM
VARsSystems Integrators
Maintenance / Service Monitoring
After-Market Support & Logistics
Training
System Selection / Integration
Type
Physical Product
Software
Data
Service
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Relationship Layer
Overview The solutions we are describing here will have no managerial hierarchy, command and control decisions or proprietary ownership of ideas.
These relationships will be self-organized by people who are motivated to explore and
Collaborative innovation will extend beyond ideas about new products
in which business is conducted.
and develop ideas they care deeply about.
and services to the very manner
Channels
Users & Customers
Value-Adders Tech
Research
Ops
Suppliers Investments
End Use
OEMs
customers
Facilities
Infrastructure
Power
OEMs
Machines
Venture I-Banks
Strategic Ventures
Private Equity
Public Funding
Healthcare
Industrial
Transportation
Buildings
Energy Developer Kits
venues
Investors
Managed Services
Appls
Systems
Products
Technology
sourcing
channel
Enablers
strategicalliances
Smart Devices
LANs
Gateways
Sensors
Wireless
marketing
vendors
technology Tools
Devices
The solutions we are describing here will have much less managerial hierarchy, command and control decisions or proprietary ownership of ideas.
These relationships will be self-organized by people who are motivated to explore and de-velop ideas they care deeply about.
Collaborative innovation will extend beyond ideas about new products and services to the very man-ner in which business is conducted
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the interactions represent the convergence of users, devices, systems, data, and networks
Smart Systems and the Internet of Things will be built from complex interrelationships between the stack.
Integrating these layers together are myriadInteractions
A bi-directional link between digital user experiences and the physical world.
BusinessMarket
TechUser Experience
Overview
Interactions
Relationships
Smart Systems and the Internet of Things will be built from complex interrelationships between the stack.
Integrating these layers together are myriadInteractions
A bi-directional link between digital user experiences and the physical world.
BusinessMarket
TechUser Experience
Overview
Interactions
Relationships
success will increasingly go to those that effectively utilize the combined potential
Smart Systems and the Internet of Things will be built from complex interrelationships between the stack.
Integrating these layers together are myriadInteractions
A bi-directional link between digital user experiences and the physical world.
BusinessMarket
TechUser Experience
Overview
Interactions
Relationships
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re-thinking things and products as systems
questions to frame your smart systems opportunity
USER EXPERIENCE
INTERACTIONS
TECH
BUSINESS
Your Product / Service
MARKET
RELATIONSHIPS
Value Added Applications
Security / Data Policies
Sector
Device Application
System Applications
Network Services
Connectivity & Device Enablement
Informal
Formal
Connections(People, Processes &External Systems)
Interaction
Context
Device
Revenue Model
License & Delivery
Market Delivery
Revenue Type
Who are our natural allies?
Who are we best poised with?
What is the context “in use” for device?
What is the device form factor?
What is the nature of interactions?
What is the native intelligence of device and communications mode?
How are comms services provided?
What platform, devie management and related functions provided?
What applications and functions are required?
How will identity mgmt, access and security work?
Which industry segments and applications provide best opportunities?
What specific use cases and apps will need to be addressed?
What is best path to monetization?
Where used; via what services model?
What channel partners are required?
License, transactions or what?
What is the nature of relation-ships, interactions, requirements and dependencies between and among systems elements?
Usage What are the expected usage needs?
3
02
smart systems growth models and strategies
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SmartSystems
Growth Models and Strategies
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IT Infrastructure &Software Providers
Machine andEquipment OEMs
End Users andEnd Customer Accounts
OEMs and Services ProvidersCore Enabling Technologies End Users
smart systems and IoT solutions are comprised of complex solutions development and delivery chainsoften, multiple parallel “upstream” technology enablers are adopted by ”mid’stream” OEMs and/or services providers who, in turn, deploy solutions into “downstream” vertical end use segments
while the business models for developing and delivering core technologies are relatively stable, the rapidly evolving business and revenue models for OEMs and services providers are anything but......
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Smart SystemsGrowth Models and Opportunities
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High-Performance
Networks & Infrastructure
Distributed Data and
Information Architecture
Real-time patient data and medical application updates
Medical staff and critical asset tracking &monitoring
Integrated mechanical and energy sensors for multi-use
Substation monitoring and process monitoring
Remote machine maintenance, health anddiagnostics
Fleet tracking and road condition monitoring
Information access and data set fusion for disease management
Power distribution, automation and control
Syncing global operations for collaboration and efficient management
Transport systems schedule and resources to fit demand cycles
Cross-leveraging data from various building and facility sources
Internal vehicle information access coordinated with urban systems
Artificial Intelligence
and Machine Learning
Fusing patient data sets and AI capable of diagnosing patients
Automation of driverless trucking fleets
Timeline to completion and sensing faults during production
Ability to balance grids, manage demand and provide services
Ability to optimize energy requirements and resource usage
Building owners & operators are able to share data across facility
Analytics on production and individual machines improve efficiencies
Analytics on processes and systems for equipment optimization
Application Development
and Developer Tools
Telehealth and wearables applications for wellness
Building systems that leverage data across lighting, HVAC, alarms, fire detection
Ticketing analytics for demand and asset tracking/ scheduling
Predictive maintenance and workflow applications
Renewable energy production trends and predictions
Sensors & Sensor Data
Fusion
Energy & Utilities
TransportationBuildings &
FacilitiesManufacturingHealthcare
core smart systems technologies will impact all end use segments
as users and customers have become more familiar with digital and IoT capabilities, they arerealizing these technology innovations will push the boundaries of how products, systemsand equipment are used and managed within their operations which, in turn, has increasedpressure on machine builders and equipment manufacturers to embrace these capabilities. End customers in factories, hospitals, buildings and more are coming to see how these technologies work together in new and novel ways to solve operational and business problems. As a result, specification and adoption of digital and IoT enabled equipment and systems is beginning to shift towards a “shared” set of roles between end customers and their OEMs.
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SmartSystems
Growth Models and Strategies
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IT Infrastructure &Software Providers
Machine andEquipment OEMs
End Users andEnd Customer Accounts
OEMsCore Enabling Technologies End User Speci�cation and Buying In�uencersProvide horizontal technologies and tools that must be contextualized for speci�c industries and customers
End customers want to adopt smart services solutions, but are wary of working with tech suppliers who may not have industry expertise--OEMs can �ll this role
If enabled with the right tools, OEMs can help disseminate these solutions to end customers due to their application expertise and existing relationships
OEMs are uniquely positioned to capture smart systems values
Value AddedServices
NetworkServices
SoftwareInfrastructure
Software Toolsand Platforms
SoftwareApplications
ElectronicComponents
ConnectivityComponents
NetworkHardware
InfrastructureComponents
IndustrialMachinery
MobileEquipment
MedicalMachines
BuildingEquipment
PowerEquipment
DiversifiedManufacturers
Automationand Controls
Test andMeasurement
AdvancedComponents
Electrical/PowerDistribution
Transportation ManufacturingHealthcare
Energy & Utilities
Buildings & Facilities
Transportation ManufacturingHealthcare
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Smart SystemsGrowth Models and Opportunities
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machinery and equipment OEMs across all segments are facing dramatic changes in their business and in their competitive arenas ......
DiversifiedManufacturers
ElectricalPower Dist
AdvancedComponents
MobileEquipment
Automationand Controls
PowerEquipment
Test & Measurement
BuildingEquipment
IndustrialMachinery
MedicalMachines
Mobile construction, agriculture, mining and material handing machines
Healthcare imaging, diagnostic and patient monitoring and care equipment
Portfolio players with no LoBaccounting for more than 40% of revenues
Fixed machines and machinery systems primarily used in manufacturing
Sub-system equipment within buildings including HVAC, lighting, transport and safety
Equipment for electrical power generation, transmission, distribution and storage
Components, products and systems for control incl electrical, flow, regulatory and pneumatics
Sensors, instruments and measurement devices for testing, analyzing equip and systems
Low and medium voltage components utilized for power distribution and switching
Diverse precision or multi-function mechanical and/or electronic devices
DiversifiedManufacturers
ElectricalPower Dist
AdvancedComponents
MobileEquipment
Automationand Controls
PowerEquipment
Test & Measurement
BuildingEquipment
IndustrialMachinery
MedicalMachines
Mobile construction, agriculture, mining and material handing machines
Healthcare imaging, diagnostic and patient monitoring and care equipment
Portfolio players with no LoBaccounting for more than 40% of revenues
Fixed machines and machinery systems primarily used in manufacturing
Sub-system equipment within buildings including HVAC, lighting, transport and safety
Equipment for electrical power generation, transmission, distribution and storage
Components, products and systems for control incl electrical, flow, regulatory and pneumatics
Sensors, instruments and measurement devices for testing, analyzing equip and systems
Low and medium voltage components utilized for power distribution and switching
Diverse precision or multi-function mechanical and/or electronic devices
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Growth Models and Strategies
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....which, in turn, is driving new impacts to their business models
DiversifiedManufacturers
MobileEquipment
Mining EquipmentAgricultural Equipment
Construction Equipment
Mobile Mat’l & People Handing
IndustrialMachinery
MedicalMachines
Surgical Devices
Imaging and Diagnostic EquipPatient Monitoring EquipPatient Care Equipment
Electronics & Semi Equip
Material Handling Equip
Food Processing Equip
Textile MachineryGlass MachineryPapermaking Machinery
Robotics
Plastics Machinery
Metalworking Equip
Printing
Machine Focused
Companies with business models focused on the development and production of a single class of machines, such as metal working, off-road vehicles, medical imaging machines, and similarLeveraging digital and IoT for:
• after market services expansion
• improve costs and efficiencies
• expand customer support
Automationand Controls
ElectricalFluid/FlowPneumaticsProcess/Regulatory
PowerEquipment
Trad’l Power Gen
Power T&D EquipAlt Power Gen
Energy Storage
Test & Measurement
Electrical/ElectronicsLife Sciences Laboratory and AnalyticalNavigation and Weather
BuildingEquipment
Climate/HVACSecurity and AccessLightingElevators/EscalatorsFire & Safety
Application-Focused Portfolio Companies with business models focused on inter-related product portfolios that can be integrated into applications such as smart buildings, machine control systems, and test systems Leveraging digital and IoT for:
• easier systems integration• expanded services/support• help customers optimize
the use of their products within systems
ElectricalPower Dist
AdvancedComponents
Vision and Imaging DevicesAdvanced Sensor SystemsMechanical Power Transmission Equipment
Power QualityElectrical Components
LV/MV Switchgear
Component FocusedCompanies with business models focused on components and subsystems. Leveraging digital and I0T for:
• channel enablement• higher efficiencies• new customer interactions
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Smart SystemsGrowth Models and Opportunities
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and servicesinnovation
OEM current state is one of confusion and excitementmany OEMs provide basic customer support services, but OEMs face open questions in expanding smart systems and services to provide new business values for customers
What does service & support mean for me? How will definitions of service & support change in the future?
How should we frame the resistance towards data ownership and security?
What services should be prioritized in development for customers?
How will the future market for services evolve? What steps must we take to support customers?
How do we identify partners for scalable relationships in offering services?
How do we create valuable services that will incentivize customers to adopt these new solutions?
Challenges“Real-Time[Managed] Services”
Systems & ApplicationDeployment
Basic Smart Service Development & Integration
ProvideBusiness
Process Improvements
ImproveOperatingEfficiency
EnhanceTechnology
Infrastructure
High
LowCustomer Tech Support Today
Use proven KPIs to expand platform to entire customer base
Leverage Value Adding Partners To Extend Business Processes & Risk Services
Customer Experience
Provide Engineering & Technical Support
“Provide Collaborative Solutions”
“Basic Customer Support Services”
Evolution of Digital Manufacturing Services Maturity
Identify anchor end-customers and partners to develop connected solutions via platforms
Cus
tom
er B
enef
it
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SmartSystems
Growth Models and Strategies
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diverse challenges hindering digital and IoT adoptionalthough challenges vary among OEMs, the issues fall into the general categories of technology, business and customers
Customer
TechnologyBusiness
Data Ownership & SecurityCustomers are increasingly aware of the value and importance of their data, and are concerned about the security of their IP
Aligning the Business to Support ServicesMoving from decades-old cultures resistant to change; becoming a service-driven organization, both structurally and culturally
Clear Strategy To Start With…Developing a clear strategy to engage internal support and quickly gain customer adoption by generating tangible value; knowing what to do and how to do it
Fragmented Customer RequirementsWhile equipment may be easy to customize or configure to specific customer scenarios, doing the same for software and services is difficult
Poor User ExperienceIndustrial suppliers typically do not consider or emphasize user experience in the development of smart systems and services, resulting in diminished value and use of these systems
Managing Complex DataCollecting, transforming and integrating data from complex machines and processes to enable new application values
Planning for the FutureUnderstanding and being flexible in technology and solution development today to be prepared for future technology developments
New work styles and processes
New modes of interaction
New business and revenue
models
Recruiting The Right TalentFinding and hiring leaders and evangelists that can help drive the development and diffusion of digital throughout the company
Finding your Place in the EcosystemFinding and engaging the right partners to help fill capability gaps and add value to smart solutions, while not creating tension with current partners, channels or customers
Lack of Consensus & Leadership SupportDeveloping a shared understanding of digital and gaining top level support
Determining Organization & Relationships Walling off digital initiatives and operating independently from the mothership to drive speed and freedom has advantages, but can also just deprive mew ventures of investment, capabilities and resources
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Smart SystemsGrowth Models and Opportunities
smartsystems
and servicesinnovation
Embedded Innovator
System Professional Solutionist Collaborator
Value Chain Aggregator Community
Solo Driven Partner Driven Open Collaboration Driven
Largely focused on remote support automation & data value for speci�c product
Leverages services automation to feed diverse needs across product provider delivery chain
Builds broad support capabilities across the entire life cycle of target equipment or delivery chain
Collects, organizes data with aim to optimize interactions across single provider dominant delivery chain
Builds and extends value via collaboration with customers, channels and providers across collective delivery chains
Drives value via extensive multi-party systems and collaboration and by leveraging private, public, and partnered information sharing
Simple
Complex
Compound
OEMs will need to design and develop new business and operating models
23smart
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SmartSystems
Growth Models and Strategies
smartsystemsand servicesinnovation
SoloDriven
PartnerDriven
OpenCollaboration
Largely focused on remote support automation & data value for speci�c product
Manage System/User Experience & Delivery Chain Relationships, Intelligence and Interactions
Foster Multi-Vendor, Multi-User Interactions & Cooperative Mgmt
Leverages services automation to feed diverse needs across product provider delivery chain
Builds broad support capabilities across the entire life cycle of equipment or service delivery chain
Simple Compound Complex
Application Complexity
Busi
ness
Mod
el P
rogr
essi
on
Adoption DrivenMainly by Machine and Device OEMs
Adoption Drivenby Mix of End Customers, OEMs and Services Providers
new business models are progressive; open collaboration drives innovation
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design 24
Smart SystemsGrowth Models and Opportunities
smartsystems
and servicesinnovation
Digital and IoT Monetization Models
Cost-Plus Value-Based
Col
labo
rativ
eTr
ansa
ctio
nal
Rel
atio
nal
Rel
atio
nshi
p w
ith C
usto
mer
Disruptive
Value-Based
Cost-Plus
Market-Based
Cost-Plus Pricing Market-Based Pricing
Without adding significant value that differentiates your offering from the competition, prevailing market conditions will dictate your pricing.
Cost-Plus pricing is exactly what you think it is: Figure out the cost to deliver your offering, multiply by an acceptable margin, and set a price. In a commodity market, this might work.
Value-based pricing allows you the flexibility to price your offering dependent on the value you deliver to your customer- whether it is dollars saved, dollars earned, any combination of the two, or any intangible savings or benefit.
Value-Based Pricing
Transformation of this type happens when your offering is so compelling and delivers so much unique value that it literally changes the way customers experience and purchase for the entire category.
Disruptive Pricing
Product-BasedOnly
Hardware-Centric w/ Subscription
Services
Often the easiest transition to a connected product, customer pays a one-time/up-front fee and receive connectivity at no incremental costs.
In this model, customers still incur a substantial percentage of the cost of hardware (if not the entire cost), but also pay an ongoing subscription fee.
BundledModel
Subscription-Centric w/ Hardware
This approach attempts to blend the best of both worlds – some investment up front with a modest recurring expense.
Subscription-based services with customers typically incurring some modest expense up front usually at or near cost.
Managed Services Focused
A more common model in the age of smartphones, customers receive the product at no cost and vendor provides a complete ”managed” experience
Collaborative Services Focused
Builds and extends value via collaboration with customers, channels and providers across collective delivery chains
Pricing Models
new business models also require new monetization and new revenue models
25smart
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SmartSystems
Growth Models and Strategies
smartsystemsand servicesinnovation
digital and IoT requires different modes of strategy development
Validated System & Solution
Opportunities
Frame New Growth Opportunities
Discover Trends,Forces &
Disruptions
Identify Apps, Use Cases &
Solution Concepts
Research, Analysis & Investigations
User, Customer, Partner Interactions
& Learnings
Design & Architect Platform & Services
Develop Strategy & Business Model
Develop & Deploy Solution
Which players, events and technologies should we care about?
Are there new combinations of technologies, products, services and partners that can drive sustained differentiation?
Does our go-to-market system design align well with the opportunity and market?
Which value elements should we develop, which obtain by partnering and which by sourcing?
What formal and informal relationships among allies might exist in the future?
How do we address systemic issues with our organizations ability to fully address the new opportunity?
Which trends, forces and disruptions likely will shape the future competitive environment?
What value elements will increase and extend the value to the customer of our core offerings?
Are our products, systems or services correctly spec’d and configured?
smartsystems
design 26
Smart SystemsGrowth Models and Opportunities
smartsystems
and servicesinnovation
business model design and development needs to be truly creative .........
Which trends, forces and disruptions likely will shape the future competitive environment?
What value elements (e.g. embedded logic, networked devices, software, analytics, wireless, etc.) will increase and extend the value to the customer of our core offerings?
Can we design a superior solution offering that dominates market share or earns a substantial premium?
How can we best make, partner or acquire those value elements; who are the allies we should cultivate?
Are there new combinations of technologies, products, services and partners that can drive sustained differentiation?
Which value elements should we develop, which obtain by partnering and which by sourcing?
What formal and informal relationships among allies might exist in the future?
What characteristics should we use to describe our user’s and customer’s needs; how should we segment our world?
Which actual or potential segments are most attractive; which opportunities should we focus on?
Are customers measurably pleased with our offerings; do customers speak directly about their interactions with our company; does our brand reflect unique attributes?
Are there robust partners and communities that enhance users’ experience?
BUSINESS ORGANIZATION and DESIGNConfiguring core skills and relationships within an OEM are the basis for new innovation models
SMART SYSTEMS and SERVICES OFFERINGSOrganizing customer and user innovations
Unique / Distinct Features, Functions and Capabilities
Augmenting Capabilitiesand Services/Support
CustomizationModularityManageabilityBest-in-Class PerformanceEnvironment/SustainabilityProductivity and EfficienciesResource UtilizationContent ElementsSafety
Integrated OfferingsDirect Add-onsThird Party ExtensionsBundled FunctionsGuaranteeFinancial Incentives (e.g. lease)Loyalty ProgramsPersonalizationSelf-ServiceService Supplements/RangeUser CommunitiesSupport Systems
Systems and Solutions
Function & Content
PlatformCapabilities
DeliveryServices
What Unrealized Technology and Innovation Opportunities Are Available To Our Company?
What creative and disruptive players are present in the arena; what new competitive structure might these trends forge?
What is the evolving competitive and value structure and how can we align but distinctly?
How open and interoperable are our solutions; can we integrate and connect with peers in unique ways?
Does the company offer modularproducts and services that can also be integrated or purchased as packages?
How Can We Best Use Technological & Market Uncertainty To Our Advantage?
USER and CUSTOMER EXPERIENCEStructuring the elements to enable unique user and customer interactions
Customer Engagement
User Experience
Sales & Channel
Target CustomerEngagement & Brand
UX/UI EffectivenessEase of UseFunctionalityLook, feel & StyleConfigurabilityPersonalization CurationAutomationEnablingSimplificationCuration
Behavioral SegmentationIndustry SegmentationUser Segmentation AffinityEmpathyCommunityValues AlignmentStatus and RecognitionBrand Leverage/ExtensionCo-BrandingModular BrandingPrivate Labeling
Context SpecificCross-SellingDiversificationExperience CenterFlagship StoreGo DirectIndirect DistributionMulti-Level MarketingNon-Traditional ChannelsOn DemandPop-Up Presence
How Offerings Are Delivered Users
Positioning,Empathy and Affinity
Uniquely Enabled Interactions
Which value elements in which segments will give us a sustainable advantage?
Leadership StyleCompany CultureDecentralized Incentive SystemsTeam StructuresStaff DevelopmentStaff EducationPlanning SystemsCorp Venture Dev DevelopmentIncubatorsCompetency Centers
Monetization andWays To Make Money
Value Creating Networks and Relationships
Alignment, Leverage and Development of Resources
Micros ServicesPremiumRisk-SharingScaled TransactionsSwitchboardAd-SupportedAuctionBundled pricingCost LeadershipDisaggregated Pricing
Technology SourcingCommercial AlliancesCustomer CollaborationPartner Collaboration FranchisingOpen InnovationCrowdsourcingMerger/AcquisitionsMinority Investments
Intellectual PropertyKnowledge MgmtOrganizational DesignIT Sys and IntegrationLean/Flex ProductionLogistics SystemsProcess AutomationProcess EfficiencyStandardizationAnalyticsStrategic DesignInnovation Modes
SubscriptionsFlexible PricingFreemiumInstalled BaseLicensingMembershipMetered TransactionsFinancing
Business Design and Core Capabilities
EcosystemRevenueModel
Structure Processes & Systems
EnablingSkills
Technology& IP
What Business Design and Architecture Will Build Long-Term Success For Our Company?
What configuration of business skills, partners, business model and systems drives uniqueness?
Can we monetize our offerings in ways that are different from competitors or industry norms; can we make money and better margins via multiple revenue streams from different constituencies?
What Business Design Should We Pursue; Which Combination Of Value Elements Will Give Us An Advantage?
What organizational levers will best operationalize these priorities? How should they be configured?
What are our most important capability gaps to fill?
How can we align investment resources with our chosen strategy?
What top management priorities will lead to the most effective fulfillment of our market role?
What Management Priorities Will Allow Us To Realize Our Strategy?
What Unrealized Market Leadership Opportunities Are Available To Our Company?
Do our systems and solutions possess unique features and functionality that captivate customers?
Does the company deliver its offerings to customers and users in ways that challenge industry norms?
Do diverse partners help sell or deliver the company’s offerings?
27smart
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SmartSystems
Growth Models and Strategies
smartsystemsand servicesinnovation
OEMs need new ways to interact to create new growth strategies
IoT and Digital Building Blocks
Strategic Assets
Customer Experience
Operational Process
Business Model
Customer Understanding
Customer Touch Points & Experiences
New Top Line Growth
Process & Manufacturing Digitization
Worker & Process Enablement
Performance Management
Digitally-Modif ied Business
New Digital Partnered Models
New Revenue and Value Realization
Transformative IoT and Digital Vision
Iterative Transformation Roadmap
Sales force
Sales & channels
Products & content
Product innovationPartnership network
Brand
Customer knowledge
Culture
Infrastructure InvestmentSkills Initiatives
IoT and D
igital Governance
IoT
and
Dig
ital
Eng
agem
ent
• Defining a digital and IoT vision and strategy based on understanding new and novel requirements for manufacturing and customers
• Development and acceleration for new smart systems, services and solutions
• Supported by new internal processes, skills and roles required to adopt new tech and capabilities
• Supported by building and sustaining partner and ecosystem values
Most knowledge comes from human experience and expertise. Today, however, knowledge and expertise largely resides in functional silos and systems dispersed across organizations. Acting singularly, functional organizations are constrained by the resources under their control. Legacy processes and habits inhibit any natural ability to communicate and work together to solve big problems or create new solutions.
04smart systems design process and methods
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Smart SystemsDesign and
DevelopmentProcess
smartsystemsand servicesinnovation
smart systems design process and methods
Smart systems design is a new discipline that lies between the fault lines of existing disciplines
Today, with the emergence of connected products and information-based services, even more complexity has arisen in the design of systems and services as well as in the core of the product.
Because networks add yet more complexity to the process and because just about everything will get connected, we strongly believe this environment requires combinations of several disciplines and methods in order to fully address the nature of smart connected business opportunities.
Convergence of design, strategy and innovation processes is creating a new smart systems design process
Business Strategy
Related Disciplines& Fields
Product & ServiceDesign
Innovation Processes
Graphic Design
Industrial Design
ServicesDesign
InteractionDesign
ComplexSystemsDesign
Product & ServiceStrategy
Line of BusinessStrategy
CorporateStrategy & Portfolio Mgmt
Innovation Processes& Mgmt
Design Thinking
Smart Systems Design
Design, as well as strategy, is concerned with creating values and making them visible, not to mention profitable. Business strategy and design today need to extend to the experience that customers will have with connected products, services, spaces or a mix of these and, therefore must integrate the processes and systems that are behind these experiences with decisions related to both design and strategy.
The convergence of design with strategy and related innovation processes will inevitably lead to a new integrated set of processes, methods and disciplines -- the advent of what we are calling Smart Systems Design.
recognizing the need for new methods and processes is a minimum requirement...
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Smart SystemsDesign andDevelopmentProcess
smartsystems
and servicesinnovation
Skills
T
echnology
How can we drive empathy, participation and motivation? How can we put human sensibilities and behaviors at the center of the solution?
How can an organization turns its workers, partners, and customers into believers and contributors? How can we solve really big problems or create unique new offerings?
How can we move beyond a conventional view of technology where all tangible and intangible skills and assets including people, brands, technologies, relationships, and processes are fully leveraged?
How can we deliberately organize to anticipate technologies that are disruptive or sustaining in nature.....innovation that creates new (and unexpected) opportunities?
we need a radically new frame of reference...that leverages the convergence of design, strategy and innovation processes
Relationships
Skills Technology
Data & Content
Experience Behaviors
How can we better understand customer experience through the user’s eyes and through the creativity of multiple parallel participants?
How can we bettter understand the value of data and information coming from products, systems and people?
31smart
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Smart SystemsDesign and
DevelopmentProcess
smartsystemsand servicesinnovation
its also about doing things differently........ developing new smart systems and services innovation requires abandoning traditional protocols; critical success factors include..
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:
3
1
2
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.
4
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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Smart SystemsDesign andDevelopmentProcess
smartsystems
and servicesinnovation
designing radically new systems and experiences...
The Interactions & Relationships Between & Amongst Devices, People & SystemsWill Drive Future DIfferentiation - Not Just Features & Isolated Capabilities
assuming that the role of technology is only about making existing products or services more attractive no longer works; players need to creatively imagine fully developed systems and whole marketplaces
1
33smart
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Smart SystemsDesign and
DevelopmentProcess
smartsystemsand servicesinnovation
organizing clever combinations of smart systems technologies & capabilities 2
Vehi
cles
Air T
rans
port
Inte
llige
nt Tr
ansp
ort
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/En
viro
nmen
t
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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Smart SystemsDesign andDevelopmentProcess
smartsystems
and servicesinnovation
rapid experimentation and customer innovation & collaboration becomes defacto3
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
35smart
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Smart SystemsDesign and
DevelopmentProcess
smartsystemsand servicesinnovation
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
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
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
smart system technologies are giving rise to a whole new generation of technology and services enabling players who are linking users, producers and intermediary channels in new ways; players need to envision their market role to address product, service and business systems in a world of infinitely expanding interactions and relationships
4 extending skills through relationships and ecosystems....
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Smart SystemsDesign andDevelopmentProcess
smartsystems
and servicesinnovation
5 aligning the “business architecture” with the “technology architecture”...
Technology Platform Information and Interaction Models
Collaboration Tools
Integrating Business Design and Information and Technology Architecture
The continuously evolving relationship between these two dimensions is fertile ground for innovation. They need to be interwoven and mutually supportive. 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
37smart
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Smart SystemsDesign and
DevelopmentProcess
smartsystemsand servicesinnovation
DISCOVER How to use customer experience and technology uncertainty to reveal new opportunities
DEFINE Specific development opportunities including formal and informal relationships
DEVELOP System and services delivery modes including go-to-market design
DEPLOY Align investments with strategy and model
Understand likely evolution of competitive environment
Business modeldesign and vali-dation
User experienceand understanding
SYSTEMS DESIGN
We believe design needs to transcend discrete product or service innovation. Assuming that the role of design is only about making existing products or services more attractive no longer works. Business designers need to creatively imagine fully developed systems and whole marketplaces. Companies need to envision the design role as one that can address product, service and business systems.
RELATIONSHIPS
Problem solving for new Smart Systems opportunities must address tough questions: how can an organization turns its workers, partners, and customers into believers and contributors? How can we make changes that can impact multiple functions and organizations and ultimately solve really big problems or create unique new offerings? We are firm believers in the human element - the community as a manifestation of the system and visa versa. Behaviors of users, customers, teams, functions, leadership, all need to considered. Understanding empathy, participation, motivations - putting human sensibilities and behaviors at the center of the solution is key.
SKILLS
Companies need to move beyond a conventional orientation to technology skills and knowledge. Organizations need a disciplined process focused on optimizing all tangible and intangible skills and assets including people and competencies, brands and positioning, technologies and intellectual property, alliances, relationships and business and operational processes.
to conceive and design smart systems, organizations need an integrated approach...
05
2018 2019 2020 2021 2022
smart system design client cases
39smart
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Methodologies and
ClientCases
smartsystemsand servicesinnovation
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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Smart SystemsDesign andDevelopmentProcess
smartsystems
and servicesinnovation
smart systems design is driven by a core set of critical questions.......
Developing Value Creation Model & Role
ModelWhat characteristics should we use to segment our users, custoemrs, markets and articulate the benefits of our proposed offering?
Which actual or anticipated segments are most attractive?
What role/s can we/they play in the proposed system?
What ecosystem configuration best supports our strategy; open; closed; hierarchical; select members?
Which value elements should we own; which should we obtain by partnering?
What are the business model alternatives; which is best aligned with the offering?
InnovateWhat technology innovation is available to enhance or extend our system’s value?
What is the architectural “blueprint” behind the customer experience?
What technology alllies will be required for system/service realization? ValidateHow can we best test our business design? What is the best means to prove our system’s value in the field?
How attractive are the economics of the business case; what will it cost to bring the system to market? Will it result in cost savings; new values; new experience?Deploying The
Smart System
DiscoveringEmergingSmart Systems Opportunities
Explore Who are our customers? What are their experiences?
What personas, applications, devices & systems does our product or service touch? What is the nature of the interactions?
How can we best use technological and market uncertainty to our advantage?
ExperienceWhat primary customer activities can we observe; be involved with?
Which activities represent opportunities for us? Do these activities benefit from smart devices and/or services?
What adjacent activities can we observe; be involved with? Will these activities benefit from smart devices and/or services?
MapWhat elements will combine to create value for the customer? What benefits can be added over time & what advantages will they bring? Are there special challenges in making the value salient to the customer?
Do these elements extend existing product or service offerings or are they completely new?
Based on desired peer interaction & technology maturity, is the timing right?
Defining Interactions, Collaboration & System Values
ArchitectWhat are the key systems and ecosystem design factors? How will our role or the role of others evolve?
What is the business system that will best enable the customer experience
How should the new system be positioned in the marketplace?
InvestHow can we align investments and resources with our chosen strategy?
How should we approach critical make, buy, partner decisions?
BuildWhat is our system development and launch plan?
What technology allies will be required for product / service / system realization?
What organization levers will best drive this business? What leadership priorities will drive the most effective market role?
What are the critical path elements that need to addressed: activities; timing; responsibilities; costs; uncertainties?
What key on-going support elements need to be in place to continue to enhance our objectives?
What will be the mode of iteration for improving and expanding the business?
Discover
Define
Develop
Deploy
Discovering Emerging
Smart SystemOpportunities
Anticipating Experiences,
Interactions and
Relationships
Determining Value Creation Role
BuildingThePlatform
ConceiveWho will be the users and customers potentially participating in our solution?
What needs, concepts and solutions will serve our users, customers and partners?
Who are our natural allies (players; devices; peers); what companies will play or contribute to the new system; who is best poised to help develop our opportunity?
What formal and informal relationships might exist in the future?
ParticipateIs there an explicit (or implicit) community of participants? If so, which participants interact with which value elements?
What manner of interactions can we use to drive empathy? involvement? innovation?
Who can we invite to collaborate? Which potential participants can help us best understand the user/system experience?
How can we best present, iterate and test our system concepts; hypothesis?
PrototypeHow should we prototype the customer and partner experiences?
What are the critical information interfaces? Interactions? How will information flow between and among constituents?
What are the key system elements & design factors?
How can we quickly iterate our assumptions to learn more?
41smart
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Smart SystemsDesign and
DevelopmentProcess
smartsystemsand servicesinnovation
1
3
A well known manufacturer of power distribution devices and energy management equipment and systems came to Harbor looking to better understand customer experience and requirements for a potential new “connected” services offering. Our team worked closely with their technologists and support organization to facilitate a group of customer and user participatory design workshops to enhance and validate their development plans and road maps.
We talked with internal staff as well as industry experts and developed a short list of target participants who were not familiar users of our clients products and services
We hosted in-depth the design sessions with users, having them evaluate the concepts including creation of their own mock-ups and selection of mock-ups they valued most
2
4
We organized multiple participatory design workshops based on a set of use cases we developed with the client
We functionally validated key elements of the system and refined client’s view of customer benefits and related economics/values as well as presentation organized for developing support with senior management
I N Q U I R Y I M P A C T
client case: customer needs analysis for platform and interaction design
Use CasesWhat key elements in the design of the customer’s “connected” experience should we be focusing on? What new connectivity, content, or data values can our client uniquely leverage? How will these new capabilities impact our customers?
Defining Platform & Interaction RequirementsWhat connected products and services are already in the market today and how are they applied? What will the requirements be for a data management/ service delivery platform solution? How will stakeholders and users interact with these new systems? How can we make user experience a differentiating element in our offerings?
Validating OpportunitiesUsing a workshop approach, we helped client gain direct inputs from users and stakeholders to quickly iterate its assumptions driving this program. We were able to give client the confidence to make new investments in core sensing and platform technologies and helped build a road map and roll out program.
Our work encompassed the entire product development and user experience: from research to interaction design to platform selection.
We conducted extensive field research to understand what users, stakeholders and operators monitored in use. We prototyped platform usage and interactions that received data from sensors, and detailed requirements for a system and platform for managing equipment, users, and communications remotely.
I N V E S T I G A T I O N S
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I N Q U I R Y I M P A C T
Excavators can do more than just move dirt. With the addition of GPS, telematics, and other technology, these machines are now also information devices, producing and releasing vast amounts of data about what they know. One of the world’s largest manufacturers of heavy machinery, asked Harbor to perform in-depth research throughout China to understand the business value of this information and how it might be used.
client case: heavy equipment manufacturer validates user needs and data values
Field ResearchWe conducted dozens of stakeholder interviews and performed field research in nine cities throughout the country to make certain that our insights were grounded in real-world needs and possibilities.
Persona and User MappingOur research revealed a complex landscape in which social constructs, such as national identity and personal relationships, were as important to the business as the value of the information.
Validating User NeedsWe found that the data captured by our client’s machines proved to be of great interest to potential new customers and markets, such as resale and insurance
Platform Road Map By investing in data architecture, collaborating with key stakeholders, and developing new and targeted products and services, our manufacturing client could avoid some unforeseen pitfalls and accelerate growth.
The result: a new platform and underlying data architecture with user interfaces that provided a quick overview of the system’s performance, with the ability to dig deeper into the numbers using a “bubble up, drill down” approach allowing diverse users to easily evaluate states, usage and diagnose problems on their own. User needs analysis approach combined with a future-proofed design helped create a sustainable design for the client to take to market.
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client case: hygiene chemicals manufacturer and services provider develops digital and IoT strategy
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Anticipating Future Customer Needs- Scenario PlanningHow will this market likely evolve? How will IoT change customer needs, buying behaviors and requirements? What will be the impact on the market, competitive structure and the existing suppliers if our client develops a family of new digital and IoT solutions? How can we utilize future scenarios to guard against the unexpected?
Digital Strategy DevelopmentWhich internal projects are worth funding, what are the business cases, which technologies should we source and which should we develop directly? How should we organize a new digital and IoT initiative? Who should be involved? How should our digital and IoT team align itself with the existing organization; what should be their role, mission and objectives? What critical investments should we be considering?
Platform RequirementsWhat products and services are already in the market today and how are they applied? What will the requirements be for data management/ service platform solutions? How can we leverage data sciences and analytics to address new optimization opportunities?
Strategies and Business ModelsWhat business models are likely to be adopted and which ones will be most successful? How will revenue models evolve? How can we accelerate adoption rates and how can these tactics play into a broader strategy? What business case framework, methodology and metrics should we utilize to focus on the best opportunities?
Road Map What investments should we prioritize: platform innovations, data architecture and analytics, collaboration with key stakeholders, etc. for development of new services? How can we organize our skills, capabilities and functional organizations to accelerate our market development for new solutions?
By first helping our client to form a digital and IoT strategy team and charter, we assisted in organizing over 15-20 disparate projects and unifying a digital strategy process to evaluate which projects were worth in-vesting in.
Subsequently, developing an architecture, platform and tech-nical development and sourcing partner strategy helped the or-ganization to put its arms around the many and diverse and con-fusing technologies required.
In parallel, developing a business case methodology and project selection process increased con-fidence in the organization that the best projects and programs were being developed.
The combination of the above processes has accelerated the market development of a suite of new solutions within targeted customer segments.
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We conducted a focused assessment of future customer needs and requirements and utilized them in scenario planning workshops to build a view of future market needs and requirements
Given the key requirements, we analyzed the competitive landscape and determined potential maneuvers for differentiated solutions and market development requirements
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4To help make these strategies a reality, we created a comprehensive implementation plan outlining the phases or both technical and market development involved, and the likely future adoption cycles based on deep modeling. Based on this modeling, we helped build an investment plan, skills acquisition strategy and organizational model to help support market roll out.
We then Identified key platform and architecture requirements; including addressing the the development of supporting business cases and revenue models for different solutions configurations
A leader in hygiene and cleaning chemicals wanted to embrace digital and IoT technologies to help differentiate new solutions for customers. Being uncharted territory for the client, our team worked closely with their business leaders, technologists, and services management to understand future user needs, new business models, solution packaging, pricing and monetization as well as establish an IoT architecture and platform strategy, including the development of new data management and analytics capabilities.
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The largest after-fabrication galvanizing business in North America with 40+ plant locations wanted to reduce the subjective nature and overly manual processes in their operations. Considered one of the leading galvanizing businesses in the world, leadership wanted to overcome the barriers to adopting Industrial Internet of Things technologies and completely re-think the relationship between new digital technologies and their operations.
client case: transforming industrial operations in hot dip galvanizing with internet of things strategy
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The result: our client realized significant improvements in throughput, safety, quality, rawmaterials utilization, on-time deliveries and customer satisfaction.
The IIoT program has been rolled out to over 20 facilities and has increased quality levels, resource management and utilization ultimately leading to a consistent increase in operating profits at each plant.
Identifying ObstaclesWe conducted interviews with stakeholders to determine most critical needs, requirements and hurdles to adoption. Emphasis focused on barriers to new technology adoption.
Pilot Plant ProgramOur research indicated best approach would be to pilot a master operating platform for all plants (40+ facilities) in a target plant first, including: » Dynamic machine and production monitoring,
control, and automation » Real-time product visibility » Digital order entry, order life-cycle tracking,
and automated invoicing
Integration and TransformationSuccessfully piloting and integrating new IoT technologies with existing systems helped eliminate need for “rip-and-replace” implementation. This allowed client to be able to deliver today’s most advanced technology and sensors to optimize & automate operations and enable future innovation.
Platform Road Map By planning or and investing in next gen platform and data architecture, collaborating with key stakeholders, and developing new sensor and data acquisition capabilities, our client has significantly and cost effectively upgraded capabilities and technologies for galvanizing operations and established a blueprint for plant roll outs and future innovations.
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Network Architecture EvolutionHow does information flow around the networks in these applications and markets? What topologies and protcols are in use; which will win in the future?
Standards AdoptionWhat standards do we believe will be used in key markets? Which ones are already established? Which standards are emerging and which ones show promise? What do we believe the timing will look like for the adoption of these networks and what factors will most impact adoption timing?
Scenario PlanningHow will this market likely evolve? What will be the impact on the market, competitive structures and the existing suppliers if our client develops a disruptive strategy? How can we utilize future scenarios to guard against the unexpected?
Platform RequirementsWhat products and services are already in the market today and how are they applied? What will the requirements be for data aggregator / service platform solutions?
Strategies and Business ModelsWhat business models are likely to be adopted and which ones will be most successful? How can our client accelerate adoption rates and how can these tactics play into a broader strategy?
Risk AssessmentWhat are some potential disruptive strategies? What will be the impact on the market, competitive structures and the existing suppliers if our client develops new unexpected network technology? What are the risks for the client and how should they be weighted?
client case: market analysis and modeling to support iot and platform strategy developmentA leader in silicon technology was looking to validate a new opportunity that could enable them to disrupt the Internet of Things arena much as they had previously disrupted the mobile phone and device market. We used our Smart Systems and IoT quantitative forecast model to help uncover the scale of opportunity across select markets, venues and application segments and used this understanding to co-develop scenarios that could predict the long-term value creation opportunity for our client.
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We conducted a focused assessment of available and anticipated networks to best understand size, impacts of tech-nology and potential future states
We analyzed the landscape and determined needs and requirements to determine a proposed architec-tire and road map
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4 We developed an architecture and ecosystem plan outlining the device quantities involved, and all the players producing solutions coupling their financial strength to our scenarios as a means to determine likely outcomes to the proposed strategy
By providing our client with a creative combination of strong data modeling and creative insights we were able to better inform their strategic decisions and the potential risks.
Given the complex nature of the new tech adoption environment, the scenarios that we created helped our client make and balance important decisions that could generate long-term value and allow them another chapter of market leadership.
We then Identified key network requirements; including sizing, timing, adoption rates and barriers to entry
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client case: portfolio expansion acquisition analysis and due diligence
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Targeting CandidatesBased on our understanding of the Smart Systems and Services market and the market’s likely future states, which candidates will make the best targets?
Screening For Strategic FactorsHow will economic indicators, regulations, application opportunities, and technology development combine to impact our clients future market and acquisition decision-making criteria?
Product PortfolioIn order to create the most value, what should our clients end product portfolio look like? In terms of scope, breadth and depth, how does our client stack up against that their competitors pre and post acquisition?
Technology SynergiesHow does the short list of candidates potentially extend existing capabilities within our client? What are the strengths and weaknesses that can be enhanced and supported?
Target Candidate Due DiligenceHow does our client’s target candidate stack up against their competitors and peer group in the marketplace? How do their customer bases, product mix, financial situation and market positions align?
Recently, we engaged with an industrial communications provider who was looking to make a series of acquisitions to help them drive growth and expand into the smart connected systems space. After being recently acquired by a private equity firm, it was vital that the acquisition targets were well coordinated and could generate significant returns and synergies.
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We conducted in-depth assessment of the acquisition candidate compa-nies comparing the group to it peer com-panies in the market as well as to existing capabilities in our clients portfolio
We created a highly detailed view of the opportunities facing the candidate pre- and post acquisition and leveraged to model and quantify the opportunities in regions and markets
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4Finally, we organized and presented the informa-tion to ensure our client, the private equity firm and their bankers had a comprehensive frame-work of information from which to make their acquisition decisions and also to help support their company integration pro-gram post acquisition
With the target analysis complete our client successfully acquired the candidate as recommended and is now well-positioned to expand their customer base, generating significant ROI, and insulate themselves against potential threats from competitors.
At the end of the project, our client not only had the information that allowed them to make a informed decision, but under our counsel, they were able to understand the breadth of information that was required to make a complicated decision and, most importantly, act upon it in a very compressed time line.
We then visited a short list of candidate companies to validate and further research our findings to rank the short list of can-didates
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Technology and Player TrackingWhat new technologies and disruptive capabilities will customers value? What elements in a Smart Systems and Services offering will drive sustaining value?
Customer Drivers and Use CasesWhat key elements in the design of the customer’s “connected” experience should we be focusing on? What new connectivity, content, or data values can our client uniquely leverage?
Market Modeling, Sizing and DimensioningWhat new markets and types of applications should our client be looking to address in the future? Which segments will drive innovation and/or disruption in connected services?
New Business ModelsWhat evolving business system and business model design elements can be leveraged to our client’s advantage? How will these elements impact our client’s business model and go-to-market strategy?
Ecosystem PartnersWho are our client’s natural allies in a Connected Services model? Who is poised in the future to help develop this opportunity? How might the ecosystem evolve and how could this impact our client?
Validating Growth OpportunitiesHow can our client quickly iterate its assumptions driving this program to learn more? Are there any ecosystem participants that could help our client best understand the potential for future customer and marketplace impact?
client case: market, player and technology tracking and briefingsBeing a large, established leader in networking technologies, our client was interested in understanding how key Internet of Things innovations could impact their business. As part of a broader research subscription, they could participate in our on-going market and player tracking services and couple these to briefing forums with thought-leaders and innovators to build a view of the future that helped the client understand potential competitive scenarios and identify key opportunities to pursue
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We configured a defined set of technologies and players and utilzied our research ser-vices platform and tracking services to build a knowledge-base for the client focused on high impact market intelligence
We leveraged our deep market un-derstanding and the firm’s Smart Systems architec-ture and forecast model to help the client pinpoint specific custom-er, segment and application targets and size/scope these for further evaluation
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From our base of research and client work, we organized use cases and busi-ness model portrayals to help the client understand new growth and disrup-tion opportunities. These were presented virtually to diverse internal staff constit-uents
We utilized out alliance and ecosystem mapping capabilities such that the client could screen and rank potential value add-ing and solution delivery alliances and partners
By providing an outsiders perspec-tive, we were able to help our client generate new insights about where the most attractive growth oppor-tunities were and what capabilities were required to penetrate and develop these opportunities.
Additionally, we were able to estab-lish an on-going market intelligence and player tracking system for the client’s organization to help diverse staff functions keep up with rapidly changing market conditions
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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.
Harbor seeks out clients whose strategic and business develop-ment mode shows a desire to drive disruption and manage change effectively, both in their organiza-tion and through their relationships in the marketplace. These are the forward looking competitors 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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STRATEGY DESIGN
FORUMS, TOOLS& INTERACTIONSRESEARCH
DIS
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Ex
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Map
Conceive
Participate Prototype ModelInnovate
Validate
DEFINE 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
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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