why u.s. innovation needt technology mega-trend … · transportation, petroleum and healthcare...

11/7/2014 Why U.S. Innovation Needs China to Achieve the Next Technology Mega-Trend

http://www.entrepreneur.com/article/239236 1/10

INTERNET OF THINGS

Why U.S. Innovation Needs China toAchieve the Next Technology Mega-Trend

Image credit: Sean Pavone / Shutterstock.com

Masanari AraiContributor

Co-Founder & CEO, Kii

NOVEMBER 3, 2014

Since long before the arrival of the Apple Watch, businesses and consumers have

kept close tabs on the Internet of Things (IoT) market, which is projected to hit $7.1

trillion in 2020 with 28 billion connected devices. IoT luminaries leading the

charge are thinking well beyond the realm of smart watches, fitness bands and

thermostats like Nest.



A recent report from Goldman Sachs Equity Research identified five areas primed

for IoT success: Connected Wearable Devices, Connected Cars, Connected

Homes, Connected Cities and the Industrial Internet, which includes the

transportation, petroleum and healthcare verticals. Fully automated homes, smart

vehicles, agricultural equipment and even entire smart cities are on the horizon, all

run by billions of tiny robots and interconnected sensors. It’s enough to make you

think the Terminator movies weren't far off the mark.

It’s often easily missed when concentrating on the inevitability of IoT and any

dystopian concerns. However, it is imperative that in order to embrace today’s rise

of the machines, there requires a partnership between Silicon Valley innovation

and China manufacturing.

Related: Mobile + Sharing Economy + Internet of Things = the Coming

Economic Boom

IoT: Built on software, hardware and cloud servicesFrom enterprise resource planning (ERP) systems to apps to social media, software

drove most of the last decade’s disruptive innovations. California's famed Silicon

Valley proliferated the majority of new billion dollar companies, creating a rich

ecosystem of developers, venture-funded startups and entrepreneurs. Most have

ideation, design, development and marketing firmly rooted in the United States.

What’s different about the new IoT multi-industry tectonic shift is that it relies on a

combination of software, hardware and cloud services. It heavily leverages sensors,

beacons and microprocessors, with storage and other services provided in the

cloud, while also measuring the environment and connecting with big data

analytics systems.

In order to build the best IoT possible over the next decade, hardware, software

and cloud services need to be working together in perfect harmony. While the



United States holds the upper hand in software and cloud services, this does not

mean that U.S. companies can simply design the software on their own and

outsource the hardware manufacturing to China. Instead, a true, collaborative

partnership needs to be formed where both sides contribute from the beginning.

This future system of open collaboration between the two sides differs greatly from

the current system, where US companies rely on China simply to manufacture at

scale.

Working capital leaves little room for missteps

Startups driving IoT innovation and growth are constantly fighting to compete and

introduce their products first. Both fueled and limited by working capital, it's a world

where the small guys need to rapidly bring products to market to prove their worth,

win more funding and achieve profitability.

One of the biggest challenges for IoT startups is that the suppliers and customers

who are driving IoT demand span several continents. At the same time,

competition is hot on their heels There's pressure to deliver on price, without

sacrificing quality. Challenges lie throughout the supply chain, from placing the

right orders based on demand, to delivering design to fulfillment, shipping and

managing payments -- all with an international lens.

Related: 8 Ways the 'Internet of Things' Will Impact Your Everyday Life

The high stakes require startups to burn through their budget with a very small

margin of error, making manufacturing at scale even harder. These challenges can

be overcome with greater collaboration between developers and manufacturers

during the beginning of the process, minimizing these chances for errors and

missteps.

Scaling from Day One



For the IoT, the true value of China’s labor force stems from its massive force of

engineers. Having these engineers available to collaborate from the beginning,

with the US software developers and cloud services providers, streamlines the

development process for IoT devices. This allows for a holistic approach to be

taken from day one, leading to better devices being created in less time, with

fewer issues and glitches.

While the US may bring software innovation to the table, it is unable to conjure up

anywhere near the type of trained workforce needed to produce IoT devices at

scale. This is where the rest of China’s massive workforce comes into play.

However, because the China-based manufacturers have been in on the process

since the beginning, there is no disconnect between the developers and

manufacturers, allowing for quick and cost-efficient scaling. This is one of the

primary benefits of the two powers coming together.

Bottom line: From divisive to complementaryFor IoT initiatives of any size, companies must be aware of all the opportunities

available to them in China and the United States, and then understand how things

differ when dealing with corporate regulation and politics in each country.

Collaboration is encouraged, but that doesn’t mean common interests and rules

are aligned.

It is not always easy, at first, when two big but very different powerhouses come

together for a particular cause. Both sides are usually set in their own ways, with

differences of opinion and egos often getting in the way. As they work together in

the trenches, however, those differences become less divisive and more

complementary, with each side bringing their own skill sets and strengths to the

table. Because the IoT is expected to become such a huge change within the

global economy, this partnership between the companies -- large enterprises and

startups-- in United States and China will go a long way towards bringing the two

very different DNA’s working towards a common goal, and as partners.



INTERNET OF THINGS

Talking Lamp Posts Are Just theBeginning in Verizon's Vision of a SmartCity

Related: Why the Investment Potential of the 'Internet of Things' May Be

Overblown

Geoff WeissEntrepreneur Staff

Staff Writer. Frequently Covers Tech, Fad Foods, YouTube, Celebrity Entrepreneurs And Viral Trends.

OCTOBER 20, 2014

Imagine a world where lamp posts double as 911 operators and solar-powered trash cans

compact waste on city streets. Where public park benches serve as phone-charging

stations and robots go to school on behalf of ailing children.

It’s an urban prophecy that could be here sooner than you think.

While the costs associated with implementing a smart home have made its viability on

the current marketplace uncertain, Verizon Wireless, the nation’s largest mobile provider,

has cast its eye towards a loftier prize. Through its Verizon Innovation Program, a

subdivision whose mission is to bring wireless connectivity to non-traditional devices, the

company is laying an innovative infrastructure for the smart cities of tomorrow.

Related: 5 Steps the 'Smart' Home Industry Must Take to Develop a Consumer

Market

To realize this vision, the Innovation Program offers up Verizon’s wireless powers, state-



of-the-art labs and marketing strategists to hundreds of partner companies -- a roster that

includes both gadget startups and global leaders in tech. While Verizon’s resources are

free to partners, the rationale behind the program is to create more products running on

its network.

Entrepreneur.com toured the company’s facility in Waltham, Mass., where a staggering

array of devices in various stages of readiness is on display. From nascent concepts to

market-ready inventions, here are 5 of the most eye-popping things we saw.

1. Speaking streetlights

Intellistreets

Image credit: Illuminating Concepts

Intellistreets are wirelessly connected lamp posts that can create visual, audio and

interactive cues for commuters. Digital screens can be affixed to the motion-sensor light

fixtures to showcase ads or direct traffic. Additionally, embedded speakers can play



music, broadcast announcements and even serve as emergency call stations for

endangered pedestrians. Verizon ultimately envisions that such devices could bring

sustainability and orderliness to downtown areas, universities and sporting venues across

the country.

Related: Why the Investment Potential of the 'Internet of Things' May Be Overblown

2. A whole new parking paradigm

Streetline parking tech

Image credit: Streetline

"Stats say that 30 percent of all the traffic in a city is basically people circling, looking for

a parking spot,” says Tim Gorman, associate director of the Verizon Innovation Program.

And while some parking app startups have been met with controversy, a company called

Streetline is hoping to assist aimless drivers. Wireless sensors installed under public

parking spaces communicate data that is viewable over the company’s mobile app,



Parker. Such a platform could not only aid drivers, Gorman says, but also help parking

enforcement officials distribute tickets more optimally.

3. A robotic telepresence

Vgo

Image credit: VGo Communications, Inc. via Facebook

Craig Jackowski, manager of the Verizon Innovation Program, calls VGo one of Verizon’s

most emotionally resonant partners yet. A tall, white robot on wheels, VGo acts as a

telepresence, replicating somebody in a distant location and allowing them to talk, hear

and move as if they were present. The device could potentially be used by health-care

workers to monitor patients, or by students with extended illnesses to attend school

without leaving home. Though not many have sold, Jackowski says, the device’s potential

uses are particularly poignant.

Related: It's a Bird. It's a Plane. No, It's a Flying Car (Finally)!



4. Wirelessly-connected waste stations

A BigBelly unit in Boston.

Image credit: Geoff Weiss | Entrepreneur

BigBelly public waste stations -- each of which comprises a recycling unit and a solar-

powered trash compactor -- can hold up to 180 gallons of waste, or roughly four times

that of a normal trash can. Each machine is wirelessly connected to a digital dashboard

that alerts collectors as soon as they are primed for pickup. Today, there are tens of

thousands of BigBelly stations in the U.S. and 45 countries across the globe, each of

which has helped reduce litter, encourage recycling and remove excess garbage trucks

off of busy city roads.

5. A life-saving resource for first responders



The HealthID Band and app.

Image credit: HealthID via Facebook

The HealthID Band was born of a father’s concern for his diabetic son -- though the

device could ultimately have wide-ranging impacts upon the emergency health-care

sector. The bracelets utilize NFC (near-field communication) technology to transmit

detailed information about a patient’s medical condition in the event of an emergency.

Medical conditions, allergies, medications and emergency contacts are all accessible with

the mere tap of a smartphone, streamlining resources for first responders and potentially

saving lives.

Related: This Smart Skin-Scanning App Could Save Your Life

why u.s. innovation needt technology mega-trend … · transportation, petroleum and healthcare...

Documents