The Next Big Thing
Posts about next generation technologies and their effect on business.

Service centric innovation – does it require a change in thinking?

 

SaaS.pngI was just in a stimulating discussion with a co-worker preparing to be part of a panel (that ISSIP is hosting) and looking at the question:

“Most product companies are making a shift from product-centric business models to more service-centric business models?  How does this impact your innovation ecosystem and how can entrepreneurs leverage this trend?”

 

This question seems to be based on the foundation that companies that may be product centric don’t understand services. I don’t actually see this as true. Almost all companies get a significant amount of value from service activities and innovation, even if it is just servicing and maintaining their products. The day of throwing the product out the door and checking the transaction complete are over.

 

In fact the whole IoT phenomenon is based on adding services to devices, whether it is your TV now being able to download content or your thermostat managing temperature based on how the environment around it is being used – these are all services – and IoT will have significant implications.

 

Now I do think there is a fundamental question about how much the context and culture of the companies has changed and if a company’s (or IT’s) approach to innovation has shifting. Since almost everyone lives in a consumer-oriented lifestyle, service innovation has been creeping into our thoughts and expectations for a very long time.

 

We have all this talk about digital natives and digital companies maybe that is all misplaced and we should be looking at it from a services impact and futures perspective. It is not that companies are becoming digital – it is that they are being more services oriented and in the process, hunger for greater information and action.

 

New retail e-zine

 

retail e-zine.jpgHP Enterprise Services continues to create e-zines on a number of industries like banking, automotive, … We just released a new e-zine focused on consumer/retail. The topics being covered are:

  • The future of consumer industries: agility in a fast-paced world
  • Grow globally and profitably in a consumer-centric world
  • Coca-Cola® gets personal with HP Indigo digital technology
  • Increase speed, productivity and agility through transformation
  • Mary Kay successfully builds a mobility platform in China
  • Create, manage, and expand thriving brand categories
  • Avon Cycles Ltd. improves supplier management with SAP HANA
  • Regulatory compliance and overcoming risks
  • Brady Corporation helps stop the spread of counterfeit products

Also included is a 'meet the experts' (Lawrence Guevel, Tony Galli, Michael Donovan) to provide a little context for some of those focused on this space.

 

A little bit of the Internet of Things

invention.pngThe Internet of Things doesn’t have to be only about new things, it can also be about adding automation capabilities to existing devices. Makers have been playing with this for a while, but littleBits electronics is the first set of components I’ve seen that addresses both the consumer and education markets in such a broad fashion.

 

It reminded me of those 101 electronic projects kits that were around when I was growing up. I’ve never touched this product, but it does show how wide the exposure is likely to be, in a relatively short time. It will be interesting to see what kinds of innovative solutions people will generate with a modular approach like this that hides some of the more difficult ‘plumbing’ issues.

IoT standards war begins

tug of war.pngI seem to have done quite a number of blog posts in the last month related to the Internet of Things. I just noticed that there have been numerous announcements about standards efforts. This may have spurred me on. 

 

There are a number of them, but the three I’ve seen the most about are:

  • AllSeen Alliance that supports the open source project AllJoyn that provides “a universal software framework and core set of system services that enable interoperability among connected products and software applications across manufacturers to create dynamic proximal networks.”
  • The Open Interconnect Consortium with “the goal of defining the connectivity requirements and ensuring interoperability of the billions of devices that will make up the emerging Internet of Things. “
  • And Google (not to be left out) has defined Thread. Its goal is: “To create the very best way to connect and control products in the home. “ These devices all run over IEEE 802.15.4.

The IEEE has its own set of IoT standards efforts, but those haven’t been getting the press as the recently announced ones above.

 

It is clear that IoT needs standards, but if it is too fragmented there will be no standard at all.

 

Hopefully this will shake out soon, since standards will help make the services and the software needed that actually provide the value for the end consumer.

 

Where did the IoT come from?

I was talking with some folks about the Internet of Things the other day and they showed me some analysis that made it look like it was relatively recent.

 

where did the IoT come from.jpg

 

My view is that its foundations go back a long way. I worked on (SCADA) Supervisory Control and Data Acquisition systems back in the 80s, which were gathering data off the factory floor, analyzing it and performing predictive analytics, even way back then.


In the 70s, passive RFID came into being and one of the first places it was used was tracking cows for the department of agriculture to ensure they were given the right dosage of medicine and hormones – since cows could talk for themselves.

 

In the late 70s and early 80s barcodes become widely used to identify objects, allowing greater tracking of manufacturing lines as well as consumers in stores.

 

In the 90s, higher speed and greater range allowed for toll tags to be placed on cars, allowing for greater ease of identification but still very little use of sensors to collect additional information.

 

At the turn of the century, the military and Walmart required the use of RFID to track products and that caused significant increase in their adoption. About the same time, low powered sensing capabilities were developed since RFID only provided identification and the scanner provided location, people began to look at other information that could be collected like temperature, humidity as well as ways to gather information remotely like smart metering in the utilities space (although even that started much earlier).

 

Most technology adoption follows an S curve for investment and value generation. We’re just now entering the steep part of the S curve where the real business models and excitement is generated. It is not really all that new it is just that the capabilities have caught up with demand and that is making us think about everything differently (and proactively).

Search
Showing results for 
Search instead for 
Do you mean 
Follow Us
Featured
About the Author(s)
  • Steve Simske is an HP Fellow and Director in the Printing and Content Delivery Lab in Hewlett-Packard Labs, and is the Director and Chief Technologist for the HP Labs Security Printing and Imaging program.
Labels
The opinions expressed above are the personal opinions of the authors, not of HP. By using this site, you accept the Terms of Use and Rules of Participation.