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The Aware
Gary DeNardo
Aditya Dhongade
Zach Cummings
Yi Sun
Jon Linton
Drexel University
https://www.kickstarter.com/projects/efitaware/the-aware-kickstart-the-hearable-revolution
FEEDBACK
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Is there a sound superiority? Better than Beats, JBL, Bose? -Yi
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WIll there be health regulations? -Adi
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Is there a potential health issues with the device in your ear 24/7? -Adi
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How do they scan your ear when ordering online? -Adi
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How long is the wait time from scan to product? -Adi
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Is the scanning technology patented? Is it a concern?-Yi
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Sensors provides more while you’re wearing (e.g. clench teeth)- Zach
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Benefits were more feature based and not customer-focused. Answer the question of how does this actually
benefit me on a daily basis? You used the example of confirming if I’m stressed which is probably nice to
have. How do you turn it into a need to have? -Jon
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What do you say about the people that may have said there is a health issue with always having something over
your ears?-Adi
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Ears can track more detailed information. Talk more about how the ear tracking can be more scientific vs.
wearable wristbands can be more “nice to have” data. Back this up with consumer behavior research.-Yi
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What is the lead time you suspect they need between orders and delivery? -Adi
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How can they improve this? What will in-house manufacturing do to help the process?-Adi
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Pricing: really analyze it. Don’t just share it. Good analysis of the middle tier, but overall, analyze this a little
more about who the target market is for each tier. -Adi
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Need video marketing strategy Good. About what?-Gary
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You talked about how it integrates vs. clunkiness, but you should address the marketing/advertising around
how this can be worn doing everything without being a distraction. My perception is a wristband is far easier
to fit in with fashion than ear pieces. Address this.-Gary
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You talk about licensing at the very end. Run with this more as part of your analysis. You should probably
analyze this as a market segment that could alleviate Manufacturing Challenges. -Gary
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How do I size up my ear? Explain value proposition. What makes people convinced to go and get their ear
scanned? -Jon
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What are the Value Propositions of the Aware? Why should they buy it over other products? -Jon
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I.
Introduction
II.
1.
Brief description of the product
2.
3.
Why would the consumer electronics industry benefit the most?
4.
5.
Why not other industries?
6.
I.
Product Value in the Consumer Electronics Industry
II.
1.
Consumer benefits
2.
1.
Fitness tracking
2.
3.
Sleep tracking
4.
5.
Activity tracking
6.
7.
Stress tracking
8.
9.
Data collection
10.
3.
Financial Benefits
4.
1.
Why will this succeed?
2.
3.
What sets it apart?
4.
5.
Intellectual property
6.
III.
Competition
IV.
1.
Is Aware a first-mover, early-follower, or late-entrant and why?
2.
3.
Competitor comparisons
4.
I.
Challenges
II.
1.
Manufacturing Difficulties
2.
1.
Individual scanning
2.
3.
3D printing costs
4.
5.
Risk of delay from sensor assembly manufacturers
6.
7.
Location based problems with placing components within the wearable
8.
3.
Price
4.
1.
Product Levels and market segmentation
2.
1.
Custom fitted earphones
2.
3.
Scanner headset
4.
5.
SDK package
6.
3.
What other products monitor brain activity?
4.
5.
Uniqueness and differentiated product
6.
5.
Advertising and Marketing
6.
1.
Social Media
2.
3.
World Tour
4.
5.
Product placement
6.
7.
Trade shows/conventions
8.
9.
Large company sponsors
10.
1.
Demand
2.
1.
Wearable market size
2.
3.
Growth
4.
5.
Types of people that would buy
6.
7.
Number analysis
8.
1.
Privacy
2.
I.
Conclusion
II.
1.
Summarize the main findings and provide an overall assessment. Will you invest in this
project? Highlight key assumptions and limitations of your assessment.
2.
consideration when talking about the Aware could be the Apple iWatch, Fitbit or Google Glass, but
none of these come close to the advancements of technology used by United Sciences. With that being said,
this is where the Aware will have its biggest impact. The CE industry continues to grow with emerging
technologies as these innovations redefine its landscape by broadening horizons. 3D printing, one of the
many named emerging technologies in the CE industry, contributed to roughly $10 billion in revenue in the
CE industry in 2015. This is only 5% of the industry but it is continuously growing and with technologies
like Aware, it will only happen faster and more efficiently. Aware is going to dominate the industry with its
unmatched approach to information accuracy and new applications. The future of electronics is changing
before our eyes as innovators are finding ways to track information, usIntroduction
United Sciences is introducing Aware hearable, a custom 3D printed headset. Karol Hatzilias, co-
founder of the Aware, was working on a project for the Navy when he was running a 3D scanning company,
which was to develop 3D scanning technology in efforts to improve hearing protection. As a result, he
invented the e-fit 3D ear scanner which can scan the ear in under a minute. With this development, came the
innovation of the Aware headset which is built by the e-fit scanner. Aware has recently surpassed its goal of
$100,000 on kickstarter.com and is branding itself as “kickstarting the hearable revolution”. This innovation
is the world’s first 3D printed, custom fit Bluetooth headphones with brain and body sensors. This headset
connects you with your music and mobile phone as well as connecting you with your mind and body in ways
that haven’t been possible on a consumer product ever before. Aware creates a 3D ambient environment so
you can hear surrounding noise from a particular side. The headset contains 3 electrodes on each ear piece,
which are used to pick up bodily information such as EEG data - brainwave date, ECG data – heart muscle
activating, and EMG data – muscle activation, mainly in the head and neck (picks up tensing of the jaw
especially while sleeping, this can indicate grinding of the teeth). These sensors enable users to obtain real-
time feedback related to focus, stress, relaxation, and sleep patterns. This information, along with data from
the other attributes like the Pulse Ox sensor which senses heart rate, and the Accelerometer which tracks
motion, is gathered and connected to an app that is currently being developed and will be released with the
Aware headset. Due to the fact that the Aware is customized, United Sciences has predetermined scanning
locations, which uses e-fit 3D scanning to create the Aware.
The Aware hearable can be defined as innovating with creativity because they have produced this
headset differently than any other headset before (by far), but also because it will be useful to many people.
When introducing a radical innovation like the Aware, it goes to show the creativity of United Sciences and
how much work has to be put into new innovations like this. United Sciences, being a 3D hole scanning
firm, knows the direction 3D printing is going, and they were able to use their absorptive capacity to
recognize and utilize the new knowledge to take a step ahead of the market by being the first movers. The
market they have cracked, with a big leap, is the consumer electronics industry. Some major innovations that
could be in e it, and be creative, which is opening up new opportunities in markets that will eventually create
huge revenues, in this case for the CE industry.
Along with consumer electronics, the innovation of the Aware is appealing to other markets such as
health and fitness, but United Sciences is too far ahead of the market to have a quick adjustment. A lot of the
information it tracks will open up new ideas on how to improve health with these applications but that is
down the road. This is because of the new technologies Aware uses, that other electronics have not yet
tapped into. So, right now consumers are going to want to get their hands on this electronic innovation
whether it is for custom e-fit headphones they sell for $99, the hearable for $249 or the whole SDK package
for $500. The industry has to be introduced into a market in which everyone uses (CE), then once it is
established, for example, will grow into health and fitness once that industry has a necessity and is able to
produce results with the information used in this hearable. Although this device is going to be very attractive
to consumers that like to track their workouts, we are not convinced that market is ready to take on a
technology to this extent when it hits the market. Since this electronic is different from anything we’ve seen
before from the way it’s made; 3D scanned and printed with sensors on the inside and electrodes sculpted on
the exterior, to the way it’s used; listening to music and tracking health by keeping this mass of information
safe and secure in an app on your smartphone is going to have an astronomical effect on the way we use
technology.
https://www.kickstarter.com/projects/efitaware/the-aware-kickstart-the-hearablerevolution?ref=navsearch
http://www.businesswire.com/news/home/20150715006129/en/Tech-Drive-CEIndustry-Growth-2015-
Projectsemost
http://www.unitedsciences.com/blog/
http://www.prweb.com/releases/2016/4/prweb13359113.htm
Consumer benefits
The benefits that the Aware gives to its customers are far superior than anything else on the market
today. Like most devices on the market today the Aware offers fitness tracking, it monitors the number of
stars climbed, active hours in a day, miles ran and walked, along with a suite of traditional tracking metrics
that you would find on almost any athletic device. It also gives you in workout prompts to help give you a
more efficient better work out.
On top of the fitness tracking there is a built in high grade sleep monitor that is also far
superior than most equipment on the market in the same price range. Not only does it give you a detailed
report of how you slept every night but also provides you if instructions of what to do for a better sleep and
when to go to bed so that when you wake up in the morning you feel completely rested.
Along with the Sleep and Fitness tracking the Aware comes equipped with a standard activity
tracker which monitors your daily not fitness related activities and reports them all back to an app for your
viewing so you can see how many steps you have walked in a day and other standard daily metrics.
One of the more unique features of the Aware is it has a stress monitoring function and when
you get too stressed it will notify you and run through a program that is designed to help bring your stress
levels down. This is truly revolutionary because it has been proven high stress levels causes less focus and
even worse health issues so for those who work in high stress environments the Aware will help be aware of
what causes your stress and help you maintain those levels.
On top of all the monitoring and tracking the aware performs it also stores that data
for further calculations by the owner of the device or to be submitted to a health professional for further
evaluation and better diagnoses of the individual. All with the aim to make the
user more Aware of their health and there how their actions affect it.
If that weren’t enough added options, the piece that does all the monitoring is a custom fit earpiece,
where the user goes into a local scanning facility and get their ear scanned for a 100% custom fit ear insert
that performs all the tasks for the Aware, not only is this said to be more comfortable than any other earpiece
but the Aware team claims you could wear it 24/7 and not even notice it’s there after the first hour of wearing
it. This is a far superior method to ear buds than anything else just because of the comfort level it provides
over a tradition earpiece.
This is a need to have device because it takes some many different aspect of a person's life where
you would need multiple devices to perform the task and puts it all into one easy to use device that is small
and desecrate. It also provides health benefits that other devices don’t and they have plans to keep
developing new and life changing application for it. It a product that won’t just be a fad and then fade out of
the usefulness but instead constantly be updated and brought to the relevant forefront of its marketplace to
continually provide its users with a useful product.
Competition
Fitness trackers have long been in use in the market for over a decade now. The Aware is designed
to monitor the performance of an individual’s fitness. The device is the world’s first customized headphone
that has both brain and biometric sensors. It is embraces Bluetooth technology through tracking of real time
activity and sleep. It is a product of 3-D printing. The device collects data such as brain waves, heart rate,
steps distance and calories burned and other information that are recorded on phone. The device enhances
awareness of the state of the users and maybe used in lowering stress levels, improving sleep patterns and
maintaining physical fitness. There are different packages that come along with the device and the aware
package costs $ 249. United science will be in four continents and 118 cities (United sciences n.d.).
The current major players in the market include Apple Watch, Microsoft Band, and Fitbit among other. Each
company’s tracker device has distinct features that differentiate them from other company’s products. The
companies have designed their products in a way that appeal their customers. The significant difference
between their products lies in the company’s creation of algorithms and the appearance of the device
(Rettner 2013). The differences are usually distinct, which can be used and are frequently used as an identity
for the companies. In other words, the consumers identify certain features in a device with a particular
company that creates the feature.
Aware is an early –follower. This is because it has almost similar features as other devices currently
in the market with similar abilities except for few improvements. The existing firms in the market before the
entrance of new firms due to the new technology are currently lagging behind concerning power and
influence in the market. In cases of competition in the market, the moves by the players are critical in
determining the power and the influence of the player in the market. The competition structure, the nature of
the competition and the players in the market are always determined by the moves by the existing firms and
the early follower which is Aware.
Various brands for example Jawbone, who also deal in products related to sports and athletics, have
remained significant in the market even with the rise of new market powerhouses in Apple and Microsoft.
The emergence of new technology for the existing products became the game changer in the market. The
first movers were Apple with Apple Watch, assuming that the activity timers are a differentiated product
from the existing timers in the market. The Apple Company, therefore, created a new market for the new
technological-fitness tracker, including the existing consumers of the fitness trackers. To remain in the
market, the existing firms before the entrance of the Apple Company had to incorporate their products into
the new technology introduced in the product.
The Fibit Company and Microsoft Company with their Microsoft Band incorporated the new
technology in their fitness trackers into the market. Since the market for the new technological fitness
trackers is young and ever growing, it is easy for any new market to enter the market. In other words, the
demand for the new technological-fitness trackers is higher than the supply the Apple Company makes to the
market. Therefore, it is easy for new firms to enter the market. Besides the large national or domestic market
for the fitness trackers, the need to enter the global market increases the demand for the product. However,
like any other market, there will always be market drivers who eventually shape the market structure that
would always determine the major players or firms in the market. In the fitness trackers market, Apple,
Microsoft Band, and Fitbit remain the major players in the market.
The Apple Company holds a significant competitive advantage over other companies for being the
first mover in the game. Their brand name, the locked-in consumers and a more sophisticated technology
include the advantages the Apple Company holds. Furthermore, the deep knowledge of the market in regards
to the new product also remains as there significant competitive advantage, usually credited to the new
entrants to the market.
Aware is an early follower as it provides similar services to those provided by preceding devices of
similar nature in the markets (United sciences n.d.). The early-followers in the market include all the firms
that follow the first-movers in regards to the first move by first movers in the market. They often have the
advantage on the knowledge about the existing products in the market and the consumer response to the
existing products. Such firms quickly enter the market with better products than the current ones, which
include new accompanied features and miscellaneous products. In our case, Microsoft Band and Fitbit are
the middle-entrants in the market.
Aware is an improvement of the Apple Watch, Fitbit and Microsoft Band are among the most
famous and established companies in the market for fitness trackers. The major and most noticeable
competition for the activity trackers in the market is among these three companies. However, a detailed
comparison on the advancements in their competition basing on the features of the product between Apple
Watch and Fitbit Band follows.
The consumers of the fitness trackers often base their preferences on a variety of factors, which the
companies have done very well meeting almost all of them in different measures. The fact that one company
stipulates fulfillment of a particular consumers’ requirements at certain periods over the other requirements
brings the significant differences between the companies. However, at every waking, both companies have
been releasing new models of their activity trackers to conform to their customers’ requirements. The new
models are just the improvements of the already existing models in the market. The main differences arise
between their prices, design, performance, apps, battery life among other features provided by Aware.
The main feature counted by Aware is activity tracking, stress monitoring and sleep tracking
(United sciences n.d.). Fitbit main feature core is fitness. Aware comes with aps that are used in phones and
software that provides results to the users just as seen in the apple watch. A key improvement in the device is
the range of coverage that is seemingly more than apple and Fitbit. The Apple Company has Apple Health
Kit supported in their iPhones, which Fitbit do not support. The main apps offered by Apple include activity
and Workout app. The Activity app provides daily routine and wellness progress, and as well as movement
and health.
In a nutshell, Aware is an early-follower in the markets after the early entrants, which are: apple,
Fitbit among others. The device has a potential in clinching the markets as a result of the improvements in
the services offered and the convenience of use. It monitors stress levels through brain waves, activity, and
tracks sleep (United sciences n.d.). The earl entrants do not apply the same mechanism and may focus on
one or two of the areas of focus of aware. This makes it possible for Aware to attract more customers as it
solves more problems for the customers at once as compared to the early entrants. Despite the concrete base
of the early entrant brands, Aware may cover a remarkable portion of the markets as a result of the improved
nature of services offered.
Manufacturing highly customized and fitted ear pieces for each customer poses vast logistical
challenges. Fortunately manufacturing can begin as soon as the supply chain is set up, United Sciences will
not need to secure any regulatory approvals from any government agency – namely the FDA, as it is not a
medical device. The fact remains that manufacturing of wearable devices is still a challenging proposition.
Components are minute in size and require precision manufacturing. Customizing the shape and size of each
headset adds a new layer of challenges. In order to craft fitted headsets, United Sciences is leveraging eFit
3D ear scanner technology. These scanners map the ears in under a minute (citation – kickstarter). However,
the customer must be physically present to have their outer ears scanned. United Sciences is setting up
“scanning locations” in numerous cities around the world to make this possible. Locations are set up with the
scanning equipment and personnel, they then scan the ears of all customers in the city, and transport
equipment to the next location. This represents additional expenses for United Sciences. Currently they plan
to set up scanning locations in 120 cities across 24 countries. It is critical for this cost to be minimized as it is
a variable cost i.e. it will grow as sales of the Aware grow.
The Aware packs in a tremendous amount of technology. There are several types of sensors in the
headset – all of which are sourced from different suppliers. Effective co-ordination between suppliers will be
difficult. Some components of the Aware will be manufactured by two contract manufacturers. United
Sciences will also be responsible for the manufacturing of some components in-house. This is a precarious
situation for United Sciences. Sensors from several suppliers will have to be shipped to the correct contract
manufacturer or United Sciences’ manufacturing facility. They will then need to be assembled into the
appropriate customized headset. The configuration of each headset will be different most headsets will have
unique shapes customized to the ears of the respective customer. This leaves little room for standardization
in the manufacturing process. Setting up an effective supply chain that churns out customized high quality
headsets without any faults in a timely manner will prove to be a significant challenge. Delays from any one
supplier could have a knock-on effect on the entire production process and cause downstream interruptions.
It should be noted that United Sciences has worked with the aforementioned contract
manufacturers in the past, and they have been able to scale up manufacturing for other products (kickstarter).
Professionals working at the company will have developed tacit knowledge and best practices for working
with contract manufacturers. While the Aware will require enhanced cooperation, past experiences such as
these should give stakeholders confidence in United Sciences’ ability to deliver the Aware on time. United
Sciences is also trying to consolidate the number of suppliers it uses for its products (kickstarter). This in
turn should reduce the hazards associated with having multiple suppliers. A precaution United Sciences
should take during this process is to ensure that they can maintain the quality of components. Delivering
high quality headsets should be the top priority for United Sciences. The fact remains that while they are
being addressed, completely mitigating these manufacturing challenges is critical for the success of the
Aware.
United Sciences will start scanning customers’ ears in the month of July this year. It is not clear
which cities will receive scanning locations, the company has not released a concrete schedule as of yet. As
per information on the Kickstarter page, first deliveries of the headsets are expected to start in the month of
November. This means there is a lead time of 5 months. Longer leads times are to be expected during the
initial rollout of a new product, more so for the Aware given its additional complexities and its breakthrough
nature. While this wait is acceptable with the initial batch of headset, United Sciences will have to minimize
lead times by ramping up production. Failure to do so will put off potential customers and exasperate
existing customers. More importantly this limited capacity will effectively place a cap on the number of
units that can be manufactured and sold in a given period of time. United Sciences should consider bringing
certain parts of the manufacturing process in house after the initial batch of headsets are delivered. This will
give them more control and reduce the fragmentation of the overall process. The propensity for
miscommunication and errors in complex outsourced operations will be curtailed by doing so. Any mistakes
in manufacturing will only elongate the already lengthy lead times.
The Aware is being offered in three tiers. Each tiers offers different levels of functionality. The
entry level model offers custom fitting, Bluetooth connectivity, and audio capabilities and costs $99. The
mid-tier device offers the same features as the entry level device but with added features. These include
media storage, biometric sensing, and brain sensing. This version of the Aware costs $249. The most
expensive model includes the same features and also makes the SDK available to the user. Users can then to
develop their own applications and alter any device functionality as they see fit. This version costs $500.
Each of the three tiers appeal to different segments of the market. The entry level device will appeal to
casual users. The Aware’s custom fitting and superior sound technology will make it more appealing over
generic Bluetooth headphones and other such devices. A common complaint these headphones is that they
cannot be used for extended periods of time, and cause a considerable amount of fatigue. The Aware’s
custom fitting will remedy this complaint. The price also makes this a good “starting point” for customers
who wish to learn more about the technology. Once they are comfortable enough with it and are convinced
of its potential, they can purchase a version with more capabilities. The pricing of the entry level model also
makes the mid-tier version look more appealing. Customers will realize they can receive additional features
for just an extra $150. This could potentially push up the Average Selling Price of the product, improving
United Sciences’ revenue.
The mid-tier headset will cater more toward health-conscious consumers. Growing sales of fitness
focused wearables indicates that this is a growing segment of the market (Banks, 2016). This version of the
Aware is priced at the same level as high end FitBits, but lower than entry level Apple Watches. This way the
Aware might be perceived as a premium product being sold at a discount given its differentiating factors and
enhanced capabilities. The Aware is differentiated from its competition in a few key ways. Most wearables
are worn on the wrist, while the Aware is a headset. No other wearable currently offers brain sensing, which
is more than just a novelty feature. There is value in monitoring brain waves. The Aware not only
miniaturizes brain sensing technology, it bundles it with features such as media playback and heart rate
monitoring among others. All of these features at its price point will go far in making the mid-tier Aware a
serious competitor to existing wearables.
The third tier, which includes the SDK, will cater to power users who like to tinker with their
products. These are the type of users who enjoy the freedom of being able to do modify products while not
being restricted. The SDK will allows users to develop their own functions for the Aware, and even change
certain characteristics of the product. United Sciences has been smart in identifying and serving this segment
of the market. These customers are also willing to pay a premium just for access to the SDK, driving margins
up for United Sciences. The company’s willingness to open up their platform to users will also earn it
goodwill, and could result in the development of complementary products and applications. This in turn will
help increase network externalities, and will go far in increasing the size of the install base. On the whole,
United Sciences’ pricing of the Aware fits well with its strategy to ensure maximum market adoption.
Analyzing United Sciences’ pricing strategy from a supply side perspective proved to be more
challenging. The company has not published any cost data, and requests for such data were not responded to.
Making educated estimates of costs is nearly impossible given the fragmented manufacturing process
(including the cost of setting up scanning location in cities around the world) and numerous suppliers.
Requests for data to certain suppliers were also turned down. We believe as with any technological product,
prices of the Aware will fall over time. United Sciences will gain economies of scale in the manufacturing of
the Aware. Prices of individual components will also fall. This should increase the appeal of the product to
consumers, and make it more competitive in the wearables market.
Banks, R. (2016, February 03). News: Wearable Sales to Increase 18.4% in 2016 - Mobile Industry Review.
Retrieved May 31, 2016, from http://www.mobileindustryreview.com/2016/02/news-wearable-sales-
increase-2016.html
References
Betteridge, Ian. (2016). Apple Watch Review: Pricier Than the Competition, But This is One Superb
Smartwatch. Alphar.com. Retrieved from <http://www.alphr.com/apple/apple-watch>
Danova, Tony. (2015). The Entire History of the Smartwatch and Fitness-Band Market in One Infographic.
Business Insider. Retrieved from <http://www.businessinsider.com/the-smartwatch-and-
fitness-band-market-2015-1>
Jary, Simon. (2016). Fitbit Trackers vs Apple Watch. TechAdvisor. Retrieved from
<http://www.pcadvisor.co.uk/feature/wearable-tech/fitbit-trackers-vs-apple-watch-
3612954/>
Rettner, Rachael. (2013). Tracker Craze: Fitness Wristband’s Popularity Will Continue to Grow. Live
Science. Retrieved from http://www.livescience.com/42144-activity-monitors-
popularity.html
United sciences. The aware kickstart the honorable revolution. (nd) web. Retrieved from:
https://www.kickstarter.com/projects/efitaware/the-aware-kickstart-the-hearable-
revolution
Villapaz, Luke. (2015). Microsoft Band 2 vs. Apple Watch vs. Fitbit vs. Jawbone: Microsoft Takes Seconds
Stab at Fitness Tracking. Ibtimes.com. Retrieved from
<http://www.ibtimes.com/microsoft-band-2-vs-apple-watch-vs-fitbit-vs-jawbone-
microsoft-takes-second-stab-2129191>
Conclusion
After hearing our point of view on bringing Aware to the market, you may or may not be
on the same page, we believe it is the first of many new technologies that are going to have an
impact on changing and innovating the markets they are entering. Although Aware is a
technology that is different and unlike any other, we believe the value proposition it brings to the
consumer as well as its appeal is what is going to entice people to pay for it and is going to open
up the market for continuous innovation. The Aware’s uniqueness from being 3D scanned and
printed to containing bio-sensing through its electrodes, is bringing information we haven’t been
able to track in the past, to our very eyes. Instead of shopping for headphones and then going to
purchase a fit-bit, consumers are going to buy the Aware and get much more for their dollar, than
what they would get for two or three devices combined. This is what the future holds, and it is
finally here. We have done extensive research on what Aware’s possible market(s) could be, what
and who it is going to benefit, its competitors and why Aware is on the next level, the challenges
it must overcome to be successful, and why it is ultimately going to be a success for United
Sciences, but more importantly for its consumer base. As United Sciences finishes up its testing,
gets all health questions answered, and patents taken care of, Aware will be ready to hit the
market and consumers that have not helped back on kickstarter, can go purchase there Aware and
start to make an impact on the market itself. Since Aware is altered but upgraded technology, it
make take some time for consumers and industries other than consumer electronics to find a
reason why they need to have it, but once these industries have caught up to times and found
effective ways to use the technology Aware provides, United Sciences is going to have another
successful completed project on their hands.

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  • 1. The Aware Gary DeNardo Aditya Dhongade Zach Cummings Yi Sun Jon Linton Drexel University https://www.kickstarter.com/projects/efitaware/the-aware-kickstart-the-hearable-revolution FEEDBACK • Is there a sound superiority? Better than Beats, JBL, Bose? -Yi • • WIll there be health regulations? -Adi
  • 2. • • Is there a potential health issues with the device in your ear 24/7? -Adi • • How do they scan your ear when ordering online? -Adi • • How long is the wait time from scan to product? -Adi • • Is the scanning technology patented? Is it a concern?-Yi • • Sensors provides more while you’re wearing (e.g. clench teeth)- Zach • • Benefits were more feature based and not customer-focused. Answer the question of how does this actually benefit me on a daily basis? You used the example of confirming if I’m stressed which is probably nice to have. How do you turn it into a need to have? -Jon • • What do you say about the people that may have said there is a health issue with always having something over your ears?-Adi • • Ears can track more detailed information. Talk more about how the ear tracking can be more scientific vs. wearable wristbands can be more “nice to have” data. Back this up with consumer behavior research.-Yi • • What is the lead time you suspect they need between orders and delivery? -Adi • • How can they improve this? What will in-house manufacturing do to help the process?-Adi •
  • 3. • Pricing: really analyze it. Don’t just share it. Good analysis of the middle tier, but overall, analyze this a little more about who the target market is for each tier. -Adi • • Need video marketing strategy Good. About what?-Gary • • You talked about how it integrates vs. clunkiness, but you should address the marketing/advertising around how this can be worn doing everything without being a distraction. My perception is a wristband is far easier to fit in with fashion than ear pieces. Address this.-Gary • • You talk about licensing at the very end. Run with this more as part of your analysis. You should probably analyze this as a market segment that could alleviate Manufacturing Challenges. -Gary • • How do I size up my ear? Explain value proposition. What makes people convinced to go and get their ear scanned? -Jon • • What are the Value Propositions of the Aware? Why should they buy it over other products? -Jon •
  • 4. I. Introduction II. 1. Brief description of the product 2. 3. Why would the consumer electronics industry benefit the most? 4. 5. Why not other industries? 6. I. Product Value in the Consumer Electronics Industry II. 1. Consumer benefits 2.
  • 5. 1. Fitness tracking 2. 3. Sleep tracking 4. 5. Activity tracking 6. 7. Stress tracking 8. 9. Data collection 10. 3. Financial Benefits 4. 1. Why will this succeed? 2. 3. What sets it apart? 4. 5. Intellectual property 6. III. Competition IV. 1. Is Aware a first-mover, early-follower, or late-entrant and why?
  • 6. 2. 3. Competitor comparisons 4. I. Challenges II. 1. Manufacturing Difficulties 2. 1. Individual scanning 2. 3. 3D printing costs 4. 5. Risk of delay from sensor assembly manufacturers 6. 7. Location based problems with placing components within the wearable 8. 3. Price 4. 1. Product Levels and market segmentation 2. 1. Custom fitted earphones
  • 7. 2. 3. Scanner headset 4. 5. SDK package 6. 3. What other products monitor brain activity? 4. 5. Uniqueness and differentiated product 6. 5. Advertising and Marketing 6. 1. Social Media 2. 3. World Tour 4. 5. Product placement 6. 7. Trade shows/conventions 8. 9. Large company sponsors 10. 1.
  • 8. Demand 2. 1. Wearable market size 2. 3. Growth 4. 5. Types of people that would buy 6. 7. Number analysis 8. 1. Privacy 2. I. Conclusion II. 1. Summarize the main findings and provide an overall assessment. Will you invest in this project? Highlight key assumptions and limitations of your assessment. 2. consideration when talking about the Aware could be the Apple iWatch, Fitbit or Google Glass, but none of these come close to the advancements of technology used by United Sciences. With that being said, this is where the Aware will have its biggest impact. The CE industry continues to grow with emerging technologies as these innovations redefine its landscape by broadening horizons. 3D printing, one of the many named emerging technologies in the CE industry, contributed to roughly $10 billion in revenue in the CE industry in 2015. This is only 5% of the industry but it is continuously growing and with technologies like Aware, it will only happen faster and more efficiently. Aware is going to dominate the industry with its
  • 9. unmatched approach to information accuracy and new applications. The future of electronics is changing before our eyes as innovators are finding ways to track information, usIntroduction United Sciences is introducing Aware hearable, a custom 3D printed headset. Karol Hatzilias, co- founder of the Aware, was working on a project for the Navy when he was running a 3D scanning company, which was to develop 3D scanning technology in efforts to improve hearing protection. As a result, he invented the e-fit 3D ear scanner which can scan the ear in under a minute. With this development, came the innovation of the Aware headset which is built by the e-fit scanner. Aware has recently surpassed its goal of $100,000 on kickstarter.com and is branding itself as “kickstarting the hearable revolution”. This innovation is the world’s first 3D printed, custom fit Bluetooth headphones with brain and body sensors. This headset connects you with your music and mobile phone as well as connecting you with your mind and body in ways that haven’t been possible on a consumer product ever before. Aware creates a 3D ambient environment so you can hear surrounding noise from a particular side. The headset contains 3 electrodes on each ear piece, which are used to pick up bodily information such as EEG data - brainwave date, ECG data – heart muscle activating, and EMG data – muscle activation, mainly in the head and neck (picks up tensing of the jaw especially while sleeping, this can indicate grinding of the teeth). These sensors enable users to obtain real- time feedback related to focus, stress, relaxation, and sleep patterns. This information, along with data from the other attributes like the Pulse Ox sensor which senses heart rate, and the Accelerometer which tracks motion, is gathered and connected to an app that is currently being developed and will be released with the Aware headset. Due to the fact that the Aware is customized, United Sciences has predetermined scanning locations, which uses e-fit 3D scanning to create the Aware. The Aware hearable can be defined as innovating with creativity because they have produced this headset differently than any other headset before (by far), but also because it will be useful to many people. When introducing a radical innovation like the Aware, it goes to show the creativity of United Sciences and how much work has to be put into new innovations like this. United Sciences, being a 3D hole scanning firm, knows the direction 3D printing is going, and they were able to use their absorptive capacity to recognize and utilize the new knowledge to take a step ahead of the market by being the first movers. The market they have cracked, with a big leap, is the consumer electronics industry. Some major innovations that could be in e it, and be creative, which is opening up new opportunities in markets that will eventually create huge revenues, in this case for the CE industry. Along with consumer electronics, the innovation of the Aware is appealing to other markets such as health and fitness, but United Sciences is too far ahead of the market to have a quick adjustment. A lot of the information it tracks will open up new ideas on how to improve health with these applications but that is down the road. This is because of the new technologies Aware uses, that other electronics have not yet tapped into. So, right now consumers are going to want to get their hands on this electronic innovation whether it is for custom e-fit headphones they sell for $99, the hearable for $249 or the whole SDK package for $500. The industry has to be introduced into a market in which everyone uses (CE), then once it is established, for example, will grow into health and fitness once that industry has a necessity and is able to produce results with the information used in this hearable. Although this device is going to be very attractive to consumers that like to track their workouts, we are not convinced that market is ready to take on a technology to this extent when it hits the market. Since this electronic is different from anything we’ve seen before from the way it’s made; 3D scanned and printed with sensors on the inside and electrodes sculpted on the exterior, to the way it’s used; listening to music and tracking health by keeping this mass of information safe and secure in an app on your smartphone is going to have an astronomical effect on the way we use technology.
  • 10. https://www.kickstarter.com/projects/efitaware/the-aware-kickstart-the-hearablerevolution?ref=navsearch http://www.businesswire.com/news/home/20150715006129/en/Tech-Drive-CEIndustry-Growth-2015- Projectsemost http://www.unitedsciences.com/blog/ http://www.prweb.com/releases/2016/4/prweb13359113.htm Consumer benefits The benefits that the Aware gives to its customers are far superior than anything else on the market today. Like most devices on the market today the Aware offers fitness tracking, it monitors the number of stars climbed, active hours in a day, miles ran and walked, along with a suite of traditional tracking metrics that you would find on almost any athletic device. It also gives you in workout prompts to help give you a more efficient better work out. On top of the fitness tracking there is a built in high grade sleep monitor that is also far superior than most equipment on the market in the same price range. Not only does it give you a detailed report of how you slept every night but also provides you if instructions of what to do for a better sleep and when to go to bed so that when you wake up in the morning you feel completely rested. Along with the Sleep and Fitness tracking the Aware comes equipped with a standard activity tracker which monitors your daily not fitness related activities and reports them all back to an app for your viewing so you can see how many steps you have walked in a day and other standard daily metrics. One of the more unique features of the Aware is it has a stress monitoring function and when you get too stressed it will notify you and run through a program that is designed to help bring your stress levels down. This is truly revolutionary because it has been proven high stress levels causes less focus and even worse health issues so for those who work in high stress environments the Aware will help be aware of what causes your stress and help you maintain those levels. On top of all the monitoring and tracking the aware performs it also stores that data for further calculations by the owner of the device or to be submitted to a health professional for further evaluation and better diagnoses of the individual. All with the aim to make the user more Aware of their health and there how their actions affect it. If that weren’t enough added options, the piece that does all the monitoring is a custom fit earpiece, where the user goes into a local scanning facility and get their ear scanned for a 100% custom fit ear insert that performs all the tasks for the Aware, not only is this said to be more comfortable than any other earpiece but the Aware team claims you could wear it 24/7 and not even notice it’s there after the first hour of wearing it. This is a far superior method to ear buds than anything else just because of the comfort level it provides over a tradition earpiece. This is a need to have device because it takes some many different aspect of a person's life where you would need multiple devices to perform the task and puts it all into one easy to use device that is small and desecrate. It also provides health benefits that other devices don’t and they have plans to keep developing new and life changing application for it. It a product that won’t just be a fad and then fade out of
  • 11. the usefulness but instead constantly be updated and brought to the relevant forefront of its marketplace to continually provide its users with a useful product. Competition Fitness trackers have long been in use in the market for over a decade now. The Aware is designed to monitor the performance of an individual’s fitness. The device is the world’s first customized headphone that has both brain and biometric sensors. It is embraces Bluetooth technology through tracking of real time activity and sleep. It is a product of 3-D printing. The device collects data such as brain waves, heart rate, steps distance and calories burned and other information that are recorded on phone. The device enhances awareness of the state of the users and maybe used in lowering stress levels, improving sleep patterns and maintaining physical fitness. There are different packages that come along with the device and the aware package costs $ 249. United science will be in four continents and 118 cities (United sciences n.d.). The current major players in the market include Apple Watch, Microsoft Band, and Fitbit among other. Each company’s tracker device has distinct features that differentiate them from other company’s products. The companies have designed their products in a way that appeal their customers. The significant difference between their products lies in the company’s creation of algorithms and the appearance of the device (Rettner 2013). The differences are usually distinct, which can be used and are frequently used as an identity for the companies. In other words, the consumers identify certain features in a device with a particular company that creates the feature. Aware is an early –follower. This is because it has almost similar features as other devices currently in the market with similar abilities except for few improvements. The existing firms in the market before the entrance of new firms due to the new technology are currently lagging behind concerning power and influence in the market. In cases of competition in the market, the moves by the players are critical in determining the power and the influence of the player in the market. The competition structure, the nature of the competition and the players in the market are always determined by the moves by the existing firms and the early follower which is Aware. Various brands for example Jawbone, who also deal in products related to sports and athletics, have remained significant in the market even with the rise of new market powerhouses in Apple and Microsoft. The emergence of new technology for the existing products became the game changer in the market. The first movers were Apple with Apple Watch, assuming that the activity timers are a differentiated product from the existing timers in the market. The Apple Company, therefore, created a new market for the new technological-fitness tracker, including the existing consumers of the fitness trackers. To remain in the market, the existing firms before the entrance of the Apple Company had to incorporate their products into the new technology introduced in the product. The Fibit Company and Microsoft Company with their Microsoft Band incorporated the new technology in their fitness trackers into the market. Since the market for the new technological fitness trackers is young and ever growing, it is easy for any new market to enter the market. In other words, the demand for the new technological-fitness trackers is higher than the supply the Apple Company makes to the market. Therefore, it is easy for new firms to enter the market. Besides the large national or domestic market for the fitness trackers, the need to enter the global market increases the demand for the product. However, like any other market, there will always be market drivers who eventually shape the market structure that would always determine the major players or firms in the market. In the fitness trackers market, Apple, Microsoft Band, and Fitbit remain the major players in the market.
  • 12. The Apple Company holds a significant competitive advantage over other companies for being the first mover in the game. Their brand name, the locked-in consumers and a more sophisticated technology include the advantages the Apple Company holds. Furthermore, the deep knowledge of the market in regards to the new product also remains as there significant competitive advantage, usually credited to the new entrants to the market. Aware is an early follower as it provides similar services to those provided by preceding devices of similar nature in the markets (United sciences n.d.). The early-followers in the market include all the firms that follow the first-movers in regards to the first move by first movers in the market. They often have the advantage on the knowledge about the existing products in the market and the consumer response to the existing products. Such firms quickly enter the market with better products than the current ones, which include new accompanied features and miscellaneous products. In our case, Microsoft Band and Fitbit are the middle-entrants in the market. Aware is an improvement of the Apple Watch, Fitbit and Microsoft Band are among the most famous and established companies in the market for fitness trackers. The major and most noticeable competition for the activity trackers in the market is among these three companies. However, a detailed comparison on the advancements in their competition basing on the features of the product between Apple Watch and Fitbit Band follows. The consumers of the fitness trackers often base their preferences on a variety of factors, which the companies have done very well meeting almost all of them in different measures. The fact that one company stipulates fulfillment of a particular consumers’ requirements at certain periods over the other requirements brings the significant differences between the companies. However, at every waking, both companies have been releasing new models of their activity trackers to conform to their customers’ requirements. The new models are just the improvements of the already existing models in the market. The main differences arise between their prices, design, performance, apps, battery life among other features provided by Aware. The main feature counted by Aware is activity tracking, stress monitoring and sleep tracking (United sciences n.d.). Fitbit main feature core is fitness. Aware comes with aps that are used in phones and software that provides results to the users just as seen in the apple watch. A key improvement in the device is the range of coverage that is seemingly more than apple and Fitbit. The Apple Company has Apple Health Kit supported in their iPhones, which Fitbit do not support. The main apps offered by Apple include activity and Workout app. The Activity app provides daily routine and wellness progress, and as well as movement and health. In a nutshell, Aware is an early-follower in the markets after the early entrants, which are: apple, Fitbit among others. The device has a potential in clinching the markets as a result of the improvements in the services offered and the convenience of use. It monitors stress levels through brain waves, activity, and tracks sleep (United sciences n.d.). The earl entrants do not apply the same mechanism and may focus on one or two of the areas of focus of aware. This makes it possible for Aware to attract more customers as it solves more problems for the customers at once as compared to the early entrants. Despite the concrete base of the early entrant brands, Aware may cover a remarkable portion of the markets as a result of the improved nature of services offered. Manufacturing highly customized and fitted ear pieces for each customer poses vast logistical challenges. Fortunately manufacturing can begin as soon as the supply chain is set up, United Sciences will not need to secure any regulatory approvals from any government agency – namely the FDA, as it is not a medical device. The fact remains that manufacturing of wearable devices is still a challenging proposition.
  • 13. Components are minute in size and require precision manufacturing. Customizing the shape and size of each headset adds a new layer of challenges. In order to craft fitted headsets, United Sciences is leveraging eFit 3D ear scanner technology. These scanners map the ears in under a minute (citation – kickstarter). However, the customer must be physically present to have their outer ears scanned. United Sciences is setting up “scanning locations” in numerous cities around the world to make this possible. Locations are set up with the scanning equipment and personnel, they then scan the ears of all customers in the city, and transport equipment to the next location. This represents additional expenses for United Sciences. Currently they plan to set up scanning locations in 120 cities across 24 countries. It is critical for this cost to be minimized as it is a variable cost i.e. it will grow as sales of the Aware grow. The Aware packs in a tremendous amount of technology. There are several types of sensors in the headset – all of which are sourced from different suppliers. Effective co-ordination between suppliers will be difficult. Some components of the Aware will be manufactured by two contract manufacturers. United Sciences will also be responsible for the manufacturing of some components in-house. This is a precarious situation for United Sciences. Sensors from several suppliers will have to be shipped to the correct contract manufacturer or United Sciences’ manufacturing facility. They will then need to be assembled into the appropriate customized headset. The configuration of each headset will be different most headsets will have unique shapes customized to the ears of the respective customer. This leaves little room for standardization in the manufacturing process. Setting up an effective supply chain that churns out customized high quality headsets without any faults in a timely manner will prove to be a significant challenge. Delays from any one supplier could have a knock-on effect on the entire production process and cause downstream interruptions. It should be noted that United Sciences has worked with the aforementioned contract manufacturers in the past, and they have been able to scale up manufacturing for other products (kickstarter). Professionals working at the company will have developed tacit knowledge and best practices for working with contract manufacturers. While the Aware will require enhanced cooperation, past experiences such as these should give stakeholders confidence in United Sciences’ ability to deliver the Aware on time. United Sciences is also trying to consolidate the number of suppliers it uses for its products (kickstarter). This in turn should reduce the hazards associated with having multiple suppliers. A precaution United Sciences should take during this process is to ensure that they can maintain the quality of components. Delivering high quality headsets should be the top priority for United Sciences. The fact remains that while they are being addressed, completely mitigating these manufacturing challenges is critical for the success of the Aware. United Sciences will start scanning customers’ ears in the month of July this year. It is not clear which cities will receive scanning locations, the company has not released a concrete schedule as of yet. As per information on the Kickstarter page, first deliveries of the headsets are expected to start in the month of November. This means there is a lead time of 5 months. Longer leads times are to be expected during the initial rollout of a new product, more so for the Aware given its additional complexities and its breakthrough nature. While this wait is acceptable with the initial batch of headset, United Sciences will have to minimize lead times by ramping up production. Failure to do so will put off potential customers and exasperate existing customers. More importantly this limited capacity will effectively place a cap on the number of units that can be manufactured and sold in a given period of time. United Sciences should consider bringing certain parts of the manufacturing process in house after the initial batch of headsets are delivered. This will give them more control and reduce the fragmentation of the overall process. The propensity for miscommunication and errors in complex outsourced operations will be curtailed by doing so. Any mistakes in manufacturing will only elongate the already lengthy lead times.
  • 14. The Aware is being offered in three tiers. Each tiers offers different levels of functionality. The entry level model offers custom fitting, Bluetooth connectivity, and audio capabilities and costs $99. The mid-tier device offers the same features as the entry level device but with added features. These include media storage, biometric sensing, and brain sensing. This version of the Aware costs $249. The most expensive model includes the same features and also makes the SDK available to the user. Users can then to develop their own applications and alter any device functionality as they see fit. This version costs $500. Each of the three tiers appeal to different segments of the market. The entry level device will appeal to casual users. The Aware’s custom fitting and superior sound technology will make it more appealing over generic Bluetooth headphones and other such devices. A common complaint these headphones is that they cannot be used for extended periods of time, and cause a considerable amount of fatigue. The Aware’s custom fitting will remedy this complaint. The price also makes this a good “starting point” for customers who wish to learn more about the technology. Once they are comfortable enough with it and are convinced of its potential, they can purchase a version with more capabilities. The pricing of the entry level model also makes the mid-tier version look more appealing. Customers will realize they can receive additional features for just an extra $150. This could potentially push up the Average Selling Price of the product, improving United Sciences’ revenue. The mid-tier headset will cater more toward health-conscious consumers. Growing sales of fitness focused wearables indicates that this is a growing segment of the market (Banks, 2016). This version of the Aware is priced at the same level as high end FitBits, but lower than entry level Apple Watches. This way the Aware might be perceived as a premium product being sold at a discount given its differentiating factors and enhanced capabilities. The Aware is differentiated from its competition in a few key ways. Most wearables are worn on the wrist, while the Aware is a headset. No other wearable currently offers brain sensing, which is more than just a novelty feature. There is value in monitoring brain waves. The Aware not only miniaturizes brain sensing technology, it bundles it with features such as media playback and heart rate monitoring among others. All of these features at its price point will go far in making the mid-tier Aware a serious competitor to existing wearables. The third tier, which includes the SDK, will cater to power users who like to tinker with their products. These are the type of users who enjoy the freedom of being able to do modify products while not being restricted. The SDK will allows users to develop their own functions for the Aware, and even change certain characteristics of the product. United Sciences has been smart in identifying and serving this segment of the market. These customers are also willing to pay a premium just for access to the SDK, driving margins up for United Sciences. The company’s willingness to open up their platform to users will also earn it goodwill, and could result in the development of complementary products and applications. This in turn will help increase network externalities, and will go far in increasing the size of the install base. On the whole, United Sciences’ pricing of the Aware fits well with its strategy to ensure maximum market adoption. Analyzing United Sciences’ pricing strategy from a supply side perspective proved to be more challenging. The company has not published any cost data, and requests for such data were not responded to. Making educated estimates of costs is nearly impossible given the fragmented manufacturing process (including the cost of setting up scanning location in cities around the world) and numerous suppliers. Requests for data to certain suppliers were also turned down. We believe as with any technological product, prices of the Aware will fall over time. United Sciences will gain economies of scale in the manufacturing of the Aware. Prices of individual components will also fall. This should increase the appeal of the product to consumers, and make it more competitive in the wearables market.
  • 15. Banks, R. (2016, February 03). News: Wearable Sales to Increase 18.4% in 2016 - Mobile Industry Review. Retrieved May 31, 2016, from http://www.mobileindustryreview.com/2016/02/news-wearable-sales- increase-2016.html References Betteridge, Ian. (2016). Apple Watch Review: Pricier Than the Competition, But This is One Superb Smartwatch. Alphar.com. Retrieved from <http://www.alphr.com/apple/apple-watch> Danova, Tony. (2015). The Entire History of the Smartwatch and Fitness-Band Market in One Infographic. Business Insider. Retrieved from <http://www.businessinsider.com/the-smartwatch-and- fitness-band-market-2015-1> Jary, Simon. (2016). Fitbit Trackers vs Apple Watch. TechAdvisor. Retrieved from <http://www.pcadvisor.co.uk/feature/wearable-tech/fitbit-trackers-vs-apple-watch- 3612954/> Rettner, Rachael. (2013). Tracker Craze: Fitness Wristband’s Popularity Will Continue to Grow. Live Science. Retrieved from http://www.livescience.com/42144-activity-monitors- popularity.html United sciences. The aware kickstart the honorable revolution. (nd) web. Retrieved from: https://www.kickstarter.com/projects/efitaware/the-aware-kickstart-the-hearable- revolution Villapaz, Luke. (2015). Microsoft Band 2 vs. Apple Watch vs. Fitbit vs. Jawbone: Microsoft Takes Seconds Stab at Fitness Tracking. Ibtimes.com. Retrieved from <http://www.ibtimes.com/microsoft-band-2-vs-apple-watch-vs-fitbit-vs-jawbone- microsoft-takes-second-stab-2129191> Conclusion After hearing our point of view on bringing Aware to the market, you may or may not be on the same page, we believe it is the first of many new technologies that are going to have an impact on changing and innovating the markets they are entering. Although Aware is a technology that is different and unlike any other, we believe the value proposition it brings to the consumer as well as its appeal is what is going to entice people to pay for it and is going to open up the market for continuous innovation. The Aware’s uniqueness from being 3D scanned and printed to containing bio-sensing through its electrodes, is bringing information we haven’t been able to track in the past, to our very eyes. Instead of shopping for headphones and then going to purchase a fit-bit, consumers are going to buy the Aware and get much more for their dollar, than what they would get for two or three devices combined. This is what the future holds, and it is finally here. We have done extensive research on what Aware’s possible market(s) could be, what and who it is going to benefit, its competitors and why Aware is on the next level, the challenges it must overcome to be successful, and why it is ultimately going to be a success for United Sciences, but more importantly for its consumer base. As United Sciences finishes up its testing, gets all health questions answered, and patents taken care of, Aware will be ready to hit the market and consumers that have not helped back on kickstarter, can go purchase there Aware and start to make an impact on the market itself. Since Aware is altered but upgraded technology, it make take some time for consumers and industries other than consumer electronics to find a
  • 16. reason why they need to have it, but once these industries have caught up to times and found effective ways to use the technology Aware provides, United Sciences is going to have another successful completed project on their hands.