Accenture Tech Vision 2020 - Trend 3

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

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

#TECHVISION2020
When customers
buy products today,
do they completely
own them?
#TECHVISION2020
Technology Vision 2020 | accenture.com/technologyvision
The Dilemma of Smart Things

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

#TECHVISION2020
5
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
are purchased.

#TECHVISION2020
6
“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 remote troubleshooting,
performance optimization and more.

#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 customers overwhelmed, frustrated and wary of
what’s around the corner.
7

#TECHVISION2020
8
Failure to address the beta
burden will limit businesses’
innovation opportunities
down the road.
Agile approaches in the engineering space started businesses
down this path. Now businesses must expand that approach to
permeate every aspect of their organization, from marketing
to product to security to sales. Those who don't will face
mounting customer frustration and attrition.
Even the most
successfully delivered
product or service will
look like a failure if the
business can’t keep up
with its evolution.

#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 become more comfortable releasing
“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.
9

#TECHVISION2020
Developing experience-
driven products
also means handling
more sensitive data.
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.
#TECHVISION2020The Dilemma of Smart Things

#TECHVISION2020
11
Done right, product-
driven experiences are
shaped by continuous
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.
#TECHVISION2020

#TECHVISION2020
12
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.

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

#TECHVISION2020
14
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?

#TECHVISION2020
15

#TECHVISION2020
16
⎮ 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).
How is your business responding to the changing
nature of ownership with the products you sell?
Decision Points

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

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

Accenture Tech Vision 2020 - Trend 3

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