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The Future is Now – Software-Enabled Innovation

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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.

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The Future is Now – Software-Enabled Innovation

  1. 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

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