3. The Dilemma Of Smart Things - Tech Vision 2020

#TECHVISION2020 The Dilemma of Smart Things Overcome the “beta burden” Technology Vision 2020 | We, the Post-Digital People

#TECHVISION2020 We, the Post-Digital People Can your enterprise survive the “tech-clash”? The I in AI and Me The Dilemma of Robots in Innovation Experience Reimagine the Smart Things the Wild DNA Helping people business through Overcome the Growing the Create an engine for choose their own human and AI “beta burden” enterprise’s reach – continuous innovation adventure collaboration and responsibility Technology Vision 2020 | accenture.com/technologyvision 2

The Dilemma of Smart Things ##TTECHVECHVISISIONION22020200 When customers buy products today, do they completely own them? TeTechchnnoolologygy VisVisioionn 22002200 | | accaccentuenturere..ccomom//tteecchhnnolologyogyvvisioisionn 3

The Dilemma of Smart Things #TECHVISION2020 75B Products consumers think of as “theirs” can The Internet of Things be redefined at the drop market is expected to grow to 75.44 billion connected of a code release. devices by 2025. Take Jibo, a social home robot, who in early 2019 announced its own death to its owners. The supported services were Internet of Things Connected Devices shutting down, and while the simple “Hey, Jibo” command Installed Base Worldwide from 2015 to 2025. Statista. could still draw the robot’s attention, it would no longer understand or respond to any other voice commands. Internet of Things (IoT) Market 2019: Global Industry Analysis, Size, Share, Trends, Market Demand, Growth, Opportunities and Forecast 2026. (2019, July 16). VC NewsNetwork. Technology Vision 2020 | accenture.com/technologyvision 4

The Dilemma of Smart Things #TECHVISION2020 As companies design experience- driven and updateable products, they are introducing a state of “forever beta.” This is challenging traditional perspectives on ownership, as businesses must retain some control and responsibility over devices even after they arepurchased. Technology Vision 2020 | accenture.com/technologyvision 5

TThe he DiDilemlemmama ofof SSmamarrt t TThihingsngs #TECHVISION2020 “Forever beta” expands to the enterprise. Caterpillar’s new generation of industrial equipment is being integrated with Cat Connect, a platform that allows the company to continuously explore and introduce new telematics-driven services to customers, like remotetroubleshooting, performance optimization and more. TeTechchnnoolologygy VisVisioionn 22002200 | | accaccentuenturere..ccomom//tteecchhnnolologyogyvvisioisionn 6

The Dilemma of Smart Things #TECHVISION2020 Experience-driven products are a wellspring of opportunity, but can also bring unintended consequences—this is the beta burden. As products become conduits for experiences, their features and functionality are constantly in flux. If mishandled, businesses risk leaving their customersoverwhelmed, frustrated and wary of what’s around the corner. Technology Vision 2020 | accenture.com/technologyvision 7

The Dilemma of Smart Things #TECHVISION2020 Failure to address the beta burden will limit businesses’ innovation opportunities down the road. Agile approaches in the engineering space started businesses Even the most down this path. Now businesses must expand that approach to successfully delivered permeate every aspect of their organization, from marketing product or service will to product to securityto sales. Those who don'twill face look like a failure if the mounting customerfrustration and attrition. business can’t keep up withits evolution. Technology Vision 2020 | accenture.com/technologyvision 8

The Dilemma of Smart Things #TECHVISION2020 Enterprises now have a deeper stake in long-term product lifecycles, and must be able to support that. Businesses must design products to evolve and transform over time, and must simultaneously becomemore comfortablereleasing “unfinished” products. These products will gain value from the ecosystem of experiences that form around them, but only if organizations shift from thinking about what is minimally viable, to what will make a product maximally valuable over its lifecycle. Technology Vision 2020 | accenture.com/technologyvision 9

The Dilemma of Smart Things ##TTECHVECHVISISIONION22020200 Developing experience- driven products alsomeans handling more sensitivedata. Data—from cameras, microphones, telematics or geographic and location tracking—allows companies to power valuable, individualized experiences. But the risk this presents to privacy and security is yet another extension of the beta burden. Businesses must re-think their data practices to emphasize privacy, security and accountability. New technology techniques including use of the intelligent edge, distributed learning and homomorphic encryption offer a path forward. Technology Vision 2020 | accenture.com/technologyvision 10

The Dilemma of Smart Things ##TTECHVECHVISISIONION22020200 Done right, product- driven experiences are shaped bycontinuous value expansion. As companies move into the future, updateable products with the ability to expand services and experiences in the future will help them respond to changing customer demands and expectations at a moment’s notice. Technology Vision 2020 | accenture.com/technologyvision 11

The Dilemma of Smart Things #TECHVISION2020 By embracing “forever beta,” enterprises can constantly reimagine their products. All Tesla cars have been produced and sold with full self-driving hardware since 2016, but without complete self-driving software capabilities. This has let Tesla gather data and information as people drive their cars, which they use to train and improve their self-driving technology. It also lets the company deliver those new self-driving capabilities to customers as they are made possible, via seamless over-the-air updates. Tesla customers have seen their car transform without ever visiting a mechanic, as new functions like autonomous driving, accommodations for pets and enhanced safety features are pushed through firmware updates. Technology Vision 2020 | accenture.com/technologyvision 12

The Dilemma of Smart Things #TECHVISION2020 And they can reimagine ownership models, centering them around experiences. Signify is delivering continuous Shiseido is reimagining lighting experiences. individualized beauty experiences. Signify Circular lighting is an enterprise Shiseido'sOptuneis a platform that uses solution that offers lighting based on the artificial intelligence to create uniquely uptime and energy needs oftheir customers, tailored lotions. Customers who subscribe essentially providing “lighting-as-a-service.” to a monthly subscription service have The company maintains the materials, access to the platform.Optuneanalyzes lightbulbs and sensors needed to deliver the pictures of their skin, combined with experience themselves, swapping out older external data, and applies intelligence pieces for new in order to deliver a consistent to create a specially tailored “recipe.” experience. This also allows Signify to reuse, A connected device that is provided for refurbish and recycle as much as possible, free to subscribers mixes and dispenses helping them and their clients meet the lotion delivering a truly individualized, sustainability goals. in-the-moment beauty experience. Technology Vision 2020 | accenture.com/technologyvision 13

The Dilemma of Smart Things #TECHVISION2020 Next-generation smart products are paving the way for experiences, and are changing how companies approach their relationship with customers. How will you build these new relationships? Technology Vision 2020 | accenture.com/technologyvision 14

The Dilemma of Smart Things #TECHVISION2020 Technology Vision 2020 | accenture.com/technologyvision 15

The Dilemma of Smart Things #TECHVISION2020 Decision Points How is your business responding to the changing nature of ownership with the products you sell? ⎮Traditional models of ownership are shifting as devices gain the capacity to significantly change their functionality. Evaluate your organization’s current ability to support a shared model of product ownership: everything from how customers are on-boarded, to how they are engaged with over time can present myriad new opportunities to build relationships with customers, but it requires changes across the organization (from product development, to marketing, to support). Technology Vision 2020 | accenture.com/technologyvision 16

The Dilemma of Smart Things #TECHVISION2020 What is your company’slong-termplan for products? ⎮As the focus turns to selling ⎮Identify the biggest stakeholders in ⎮Help customers meet their continuous experiences, your product ecosystem. This will include sustainability goals. What can your company will need customers as well as app developers or they do with aging hardware, a different strategy for the other device providers. Design a review and what expenses will they products that support those process that will uncover what obstacles incur over time? Explore new experiences. Explore ways these stakeholders may face as software strategies like developing a of helping customers updates change the functionality, recycling and trade-in program through this transition to interoperability and features of or allowing people to repair ensure long-term loyalty. their products. devices themselves. Technology Vision 2020 | accenture.com/technologyvision 17

The Dilemma of Smart Things #TECHVISION2020 How are you creating maximallyvaluable products? ⎮Design products to evolve and grow ⎮Make future-focused design thinking over time in response to customer usage a part of every product development and insights. Build a feedback loop by process. Explore what customers identifying what data would be necessary might want in five years and work to understand your customers’ evolving backward to consider what sensors needs. Develop the tools and platforms or technologies might be necessary to capture that data. to support those ambitions. Technology Vision 2020 | accenture.com/technologyvision 18

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