The Internet has disrupted almost every industry on earth in the past 25 years. Now, smart products, embedded with sensors and mechanisms that link them through the Internet, are turning the physical world into an information system.

1. THE FUTURE IS NOW
SOFTWARE-ENABLED INNOVATION
The Internet has disrupted almost every industry on earth in the past 25 years. Now, smart
products, embedded with sensors and mechanisms that link them through the Internet,
are turning the physical world into an information system. This new wave of innovation
connects everything, from homes to Happy MealsTM. Manufacturers must adapt to this ex-plosion
of software, or risk losing competitive advantage.
Respondents in a recent survey demonstrate that there is a surge of consumer interest in smart products:
CONVENIENCE CONNECTIVITY
93% Agreed that controlling the
home remotely will have a
positive impact on the quality of their
daily lives.
77%
FUNCTIONALITY ENTERTAINMENT
63% Think it’s important for their
SMARTER CARS SMARTER HOME SMARTER AGRICULTURE
This demand for smarter products has created:
AN EXPLOSION OF SOFTWARE AND NETWORKS
The increase of embedded software has contributed to:
1 TRILLION
Emergence of Smart, Connected Products
DEMAND FOR SMARTER PRODUCTS
57%
THE GROWTH OF THE INTERNET OF THINGS
100 MILLION
8 BILLION
This wave of software-enabled products offers:
FIRST BROWSER APP
LAUNCHES
THE
WORLD WIDE WEB
WAS BORN
THE EMERGENCE
OF SMART DEVICES
VALUE FOR MANUFACTURERS
There are good reasons to up the ante on software engineering beyond designing for customer demand:
UPDATES ENABLE NEW FEATURES
Excellence in embedded software development has led to:
& REPAIR DEFECTS
FASTER TIMETOMARKET MARKETWINNING PRODUCTS
By improving capabilities around embedded
systems development, several companies
have improved time to market by 30-40%.
HIGHER PROFIT MARGIN REDUCED DEVELOPMENT TIME
A PRODUCT DEVELOPMENT APPROACH
Believe Wi-Fi connectivity will
be an important purchase
consideration when they replace house-hold
items.
Expect that within 10 years the
majority of devices or appli-ances
they purchase will include smart
technology.
passengers to surf the internet
via a monitor in the car.
Consumer preferences and product innovation will continue to create a smarter future.
Self-driving cars will significantly
improve transportation safety.
By 2018, the ‘smart home’ industry
will reach $71B.
Data-driven planting could help
improve the average corn harvest
and generate an extra $182 an
acre in revenue for farmers.
NO INCREMENTAL MANUFACTURING
COSTS PER UNIT
$ $ $ $
UPDATES
69% of companies that leverage soft-ware
development effectively outperform
their competitors.
Best-in class performers have been able to
reduce product cost by 7%; profit margin
increased 2.1 times their competitors.
Mobile phone platform development
time dropped 42%, from 33 months to
19 months.
Software-driven innovation is at the heart of this growth, and this means rethinking
how product development gets done. How will you lead the transformation to create
smarter products?
Operate
Closed Loop
Lifecycle Management
Service
Manufacture
Requirements Verify
Architect Validate
Implement
SUCCESS HAS BECOME SOFTWARE DRIVEN
For more info on how to plug into innovation, go to:
www.ptc.com/topics/software-intensive-products
© 2014, PTC Inc. (PTC). All rights reserved.
164.5 Million 489.9 Million
2018
2012
5.2 Million
10.5 Million
Lines of Code
Luxury Car
(20 Million for the navigation system)
Android Phone
Boeing 787
F-22 Raptor Jet
100
Million
12
Million
6.5
Million
1.7
Million
Growth of Cellular Connections Growth of Public Wi-Fi Hotspots
for M2M Communication
Sources:
http://www.mckinsey.com/insights/business_technology/disruptive_technologies
http://venturebeat.com/2014/02/11/study-the-smart-home-industry-will-double-in-size-by-2018-reaching-71b/
http://online.wsj.com/news/articles/SB10001424052702304450904579369283869192124?mg=reno64-wsj
http://finance.yahoo.com/news/wi-fi-connectivity-increases-purchase-130000250.html
http://www.accenture.com/us-en/landing-pages/products/Documents/ivi/Accenture-Connected-Vehicle-Survey-Global.pdf#zoom=50
http://www.informationisbeautiful.net/visualizations/million-lines-of-code/
http://www.berginsight.com/ShowReport.aspx?m_m=3Id=169
http://www.wballiance.com/resource-center/wba-industry-report/
http://geography.about.com/od/obtainpopulationdata/a/worldpopulation.htm
http://www.internetsociety.org/history?gclid=CILNmubylb8CFabm7AodxzkA7Q
http://thenextweb.com/insider/2011/08/06/20-years-ago-today-the-world-wide-web-opened-to-the-public/
http://www.sprint.com/companyinfo/history/
Harald Bauer Ondrej Burkacky, When Software Meets Hardware: Excellence in embedded software development, Mckinsey Company
https://www.ibm.com/smarterplanet/global/files/se__sv_se__products__the_software_edge__.pdf
Michelle Bouchar Kelly-Rand, Embedded Software, Aberdeen Group