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Design and development of all hardware/software/service elements for launch

Alliance network and/or ecosystem mapping and definition

Coordination of common information sources and partner protocols

Development plan 3

1

4

2

Software Information Devices (from embedded to Web services)

User Information “Devices” (from end-user to service provider)

Data/Information Sources (liquid flow of information throughout system)

Activities/Information Design (defines the business blueprint and currency)

Formulate business capitalization requirements

5

Venture Development For The Internet of Things Requires A Different Approach .......

An Approach That Can Span From Very Early Stage To Growth Maturity .....

Early stage nurturing of new technology ventures is really a “no-man’s” land today

These types of opportunities are not well addressed by either corporate venture programs or institutional investors

The “spread bet” mode of venture capitalists & private equity firms has been increasingly trending towards more and more conservative investments for several years .....

Corporations have become addicted to acquisitions and consolidation as a growth mechanism ........ companies are willing to overpay for established businesses to mitigate risk ........ players need to understand that to create sustaining value they must take risks .....but how?

Existing schemas, institutions and approaches for new venture development are, for the most part, broken....

The complexity, interdependent relationships and related timing required for new growth ventures in the Internet of Things arena only compound the challenges

Diversifed Industrial Players Need To Completely Re-Think How To Create New Growth Ventures...

In Most Businesses Today, New Venture Development Is Broken ...

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In Most Companies Today, People, Functions & Processes Are Too Disconnected To Realize New Smart Systems Opportunities....

Large organizations have many rules and policies that often seem completely disconnected. We have created language, business processes and systems that seem to be a triumph of technique over value and performance. Consequently, most businesses today are organized around functional disciplines that only interact on an “as needed” basis.

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. In many companies, lean practices have been applied so aggressively that people are simply consumed by “running the business.” It restricts their ability to harness the collective intelligence available throughout a company and its networks to ensure timely decisions and creative solutions.

In our work, we see ‘disconnects’ around us all the time - between people, functions, organizations and leadership. This reminds us that life and business are complex, and as new business designers and developers, we must resist the seduction of simplicity and the safety of Byzantine processes and decision models that allow good ideas to fade too quickly. In this environment growth is dependent on interacting in new and creative ways. Linking functions by breaking down the barriers to communication is the first step, but it can’t stop there. The key is building collaborative networks.

It’s Not Just About Ideation, Strategy, Design or Planning ..........

R&D & New Business Development

Marketing& Sales

Purchasing &Strategic Sourcing

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The solutions we are describing here have no managerial hierarchy, command and control decision making or proprietary ownership of ideas.

These networks will be self-organized by people who are motivated to explore and develop ideas they care deeply about. Collaborative innovation will extend beyond ideas about new products and services to the very manner in which business is conducted.

To discover, design and develop innovative systems, organizations must consider all the elements involved and the context they fit into.

Developing Solutions Based on User Centered Experience Organizing The Rapidly Growing

Amounts of Data From Open Systems For Wider Use, Awareness and Collaboration

Utilizing New Modes of Collaboration & Integration Tools To Leverage The Wealth of Experience Across Venues and Markets

Leveraging Human Capital and Skills In This Connected World Will Create Entirely New Solution Values

Potential To Engage & Leverage Extended Communities of Users, Companies, OEMs, Suppliers With Real-Time Interactions and Information Value

Emerging Technologies, If Properly Nurtured and Applied, Can Foster Many Opportunities To Disrupt Current Competitive Structure

Technology Skills

Relationships

Experience

Content

Behaviors

SMART

SYSTEMS

FRAMEWORK

A New Frame Of Reference Is Required .............. How Do We Connect The Dots?

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To Conceive and Design Smart Systems & Services, Organizations Need An Integrated Approach.....Many organizations today do not even recognize the many smart connected product and services oppprtunities that surround them.

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 and relationships, and manufacturing and distribution capacities.

DISCOVER How to use customer experience and technology uncertainty to reveal new opportunities

DEFINE Specific development opportunities including formal and informal relationships

DESIGN System and services delivery modes including go-to-market design

DEVELOP Align investments with strategy and model

Understand likely evolution of competitive environment

Business modeldesign and validation

User experienceand understanding

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Processes To Design and Develop Smart Systems Must Leverage All Value Participants...

Determining Value Creation Role

ModelWhat characteristics should we use to segment our markets & articulate the benefits of our proposed offering?

Which actual or anticipated segments are most attractive?

What role/s can we play in the proposed system?

What eco-system 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 business model best aligns with the opportunity?

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 product/service realization? ValidateHow can we best test our 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?Building

The Platform

DiscoveringEmergingSmart Systems Opportunities

ConnectWho are our natural allies (players; devices; peers? Who is best poised to help develop our opportunity; what participants and companies will play in the new system?

What formal and informal relationships might exist in the future?

ParticipateHow can we best test our hypothesis? Who can we invite to collaborate?

What manner of interactions can we use to drive empathy? involvement? innovation?

InteractIs there an explicit (or implicit) community of participants? If so, which participants interact with which value elements?

What are the critical information interfaces? Interactions? How will information flow between and among constituents?

PrototypeHow should we prototype the customer experience?

What are the key system elements & design factors?

How can we quickly iterate our assumptions to learn more; which potential participants can help us best understand the potential user system experience?

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?

Anticipating Interactions, Relationships & Collaboration

ArchitectWhat are the key eco-system 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 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?

How should the new business relate to the parent?

What are the critical path elements that need to addressed: activities; timing; responsibilities; costs; uncertainties?

SupportWhat 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

Design

Develop

Discovering Emerging

Smart SystemOpportunities

Anticipating Experiences,

Interactions and

Relationships

Determining Value Creation Role

BuildingThePlatform