Lecture 2 Flashcards
which core elements do smart, connected products have?
1 - physical component (mechanical and electrical parts)
2 - smart components (amplifies capabilities and value of physical component i.e., sensors)
3 - connectivity component (amplifies the capabilities and enables some of them to exist outside of the physical product itself i.e. ports/ wireless connection)
what are the three types of connectivity?
- one-to-one (individual product connects through an interface. Ex, smartwatch to sync data for individual user)
- One-to-many (central system connected to many products at the same time. Ex, An electric utility company remotely monitoring smart energy meters installed in thousands of homes simultaneously through a central IoT platform)
- Many-to-many (multiple products connect to many other types of products and external data sources. Ex, Fleet of self-driving trucks coordinating deliveries based on inputs from traffic APIs, customer order systems and internal logistics software.)
What is the purpose of connectivity?
- allows information to be exchanged between the product and its operation system.
- enables some functions of the product to exist outside the physical device, product cloud
What is the technology stack?
A series of layers of new technology infrastructure to connect smart products.
what are the capabilities of smart and connected products?
- monitoring through sensors and external data sources (alert changing environment/performance or understand how the product is used)
- control through remote commands or algorithms (control of product functions/ personalisation of the user experience)
- optimisation to:
- enhance product performance
- predictive diagnostics - Autonomy (product learns about their environment, self-coordinate operations, enhance and self-diagnose)
What are the forces that drive competition?
- the bargaining power of buyers
- the nature and intensity of the rivalry among existing competitors
- the new threat of new entrants
- the threat of substitute products and services
- the bargaining power of suppliers
Define the concept of expanding industry boundaries
The competitive boundaries of an industry widen to encompass a set of related products that together meet a broader underlying need. The function of one product is optimized with other related products.
Describe two ways that industry boundaries are expanding beyond traditional product categories
1 - Industry boundaries are expanding even beyond product categories to systems of systems; a set of disparate product systems and related external information can be coordinated and optimised (e.g. smart home).
2 - new competitors are created, resulting in the need for new and broader capabilities.
What is the net effect of smart products on industry structures?
- rising barriers to entry; first movers collect data on how people use their products to gain an edge.
- consolidation pressure expanding industries; If an industry is expanding, companies that make only one product might struggle against those that make multiple products that work together seamlessly
- opportunities for new entrants; new companies might emerge because they can be agile.
Explain what is meant by the term “productless” in relation to new industry entrants taking advantage of connected products.
“Productless” refers to new companies whose core advantage is the system that connects products, rather than the products themselves. They are free to optimize systems of interconnected products in new ways.
what are the competitive advantages of smart products?
- Operational effectiveness (embracing the best practices across all fields like technologies, IT solutions but must be sustainable)
- Design (can accommodate late-stage and post-purchase design. agile software development essential)
- After-sale services
(real-time data can reveal problems which can be solved; feedback insight to reduce problems in future products; validate warranty claims) - marketing
(data reveal new insights how products creates value; tailor product to each segment) - human resource
(need to recruit new skill sets) - security
(robots security management to protect data between products/unauthorised use; new authentication processes)
what mistakes to avoid when creating smart products?
- adding functionality that customers don’t want to pat for
- underestimating security and privacy risks
- failing to anticipate new competitive threats
- waiting to long to get started (new entrants gain foothold by capturing and analysing data)
- overestimating internal capabilities (assessment what should be developed in-house and which should be developed by new partners is crucial).
What is a layered modular architecture?
A hybrid of the modular architecture of a physical product and the layered architecture of digital technology
What are the key characteristics of digital innovation?
- Reprogrammability (allows to perform a wide array of functions)
- homogenisation of data
( any digital content can be stored, transmitted, processed, and displayed using the same digital devices and networks but also combine easily with other digital data, dissolving product and industry boundaries) - self-referential nature of digital technology (* The diffusion of digital innovation creates positive network externalities that further accelerate the creation and availability of digital devices, networks, services, and content)
what are the layers of layered architecture of digital technology?
- Device layer
- Logical capacity (operating system)
- Physical machinery (hardware)
- Network layer
- Logical transmission layer (network standards like peer-to-peer protocols)
- Physical transport layer (cables, transmitters, radio spectrum)
- Service layer
Deals with application functionality that directly serves users as the create, manipulate, store, and consume contents. - Contents layer
Includes data such as text, sounds, images, and videos that are stored and shared.
