This document discusses three approaches ("flavors") for developing smart products: leveraging existing products, retrofitting existing products, and building new smart products from scratch. It provides examples of each approach, including leveraging sensor data to improve fire detection and retrofitting a car sharing system. All three approaches can help drive industry transformation by enabling new business models and scaling effects as smart products connect and share more data. The document advocates considering each approach's constraints and potential for incremental versus disruptive innovation.

1. Three flavors of Smart Product development 1
CONFIDENTIAL Template Innovation Day 2017CONFIDENTIAL
Three flavors of smart products
development
Rudy Van Raemdonck
Coordinator Embedded LAB
rudy.vanraemdonck@verhaert.com
TRACK 1 - TRANSFORMATIONAL TECHNOLOGIES

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CONTENT
How smart products are transforming the industry
Flavor 1 : Leveraging existing products assets
Flavor 2 : Retrofitting existing products
Flavor 3 : Scratch building smart products
Conclusion

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How smart products are
transforming the industry
And why it is a challenge

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What are smart products?
?

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Smart product definition
“A Smart Product is an entity (tangible object, software, or service)
designed and made for self-organized embedding into different
(smart) environments in the course of its lifecycle, providing
improved simplicity and openness through improved p2u and p2p
interaction by means of context-awareness, semantic self-
description, proactive behavior, multi-modal natural interfaces, AI,
planning and machine learning.”
Mühlhäuser, M., Smart Products: An Introduction, in Constructing Ambient Intelligence

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What enables smart products?
Connectivity
• Internet
• Standard Communication Protocols
• Faster and more reliable data networks
• World-wide coverage
Technology
• Sensors
• Miniaturized, powerful embedded
processing platforms (864bit)
• (Low power) wireless
communication
Intelligence
• Algorithms
• Data science
• Semantics
• Artificial intelligence

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Smart products are inherently scalable in multi-dimensions
Connectivity
Technology
Intelligence

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Impact of smart products scaling on business opportunities
Use cases
• Where am I
• Finding your way
Markets/potential users/stakeholders
• Car driver
Use cases
• Avoiding traffic jams
• Traffic sign control (variable speed)
• Real time traffic info (warnings)
• Road maintenance
• New road planning
Markets/potential users/stakeholders
• Car driver
• Traffic control
• Police
• Government
Location of 1 car Location of 1000 cars

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Smart products and industry transformation
Standard
product
Intelligent
product
Smart product
Smart system
Industry
transformation
• State-of-the-art in technology, connectivity and
intelligence enables smart product
development
• Inherent multi-dimensional scaling of smart
products lead to smart systems and open up
new business opportunities
• Smart products are becoming a platform for
business innovation and new business
generation
Technology
Intelligence
Connectivity
Scaling
GPS
Route calculation
Avoid traffic jam
Traffic management system
New business
Traffic management services

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Challenges of smart products and industry transformation
• Can you make your installed base
smarter?
• How to introduce new technologies,
connectivity and intelligence into
your company, your product, your
service?
• How to cope with new
type of users?
• How to anticipate
different type of usage
of your product?
• How could you valorize on
existing assets?
• How and when can you
scale-up?
• Should you retink your
business model?
• Will your balance between
product and service
business need to change?
And to what extent?

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How to transform without falling?

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Three flavors of smart products
development
Possible ways for industry transformation through smart products

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Leveraging existing products assets
The power of data science

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Leveraging - Challenges
Generate new ideas
from existing product
assets
Out of the box
thinking
Introducing new skills

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Leveraging - Case : Safesens
Early fire detection
Multi-sensor fire detector
Multiple fire detectors in building

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Leveraging - Case : Safesens
Understand sensor
behavior
Compensate for cross
sensitivity
Detect unexpected
behavior
Noise filtering
Feature detection (max,
min, std dev)
Advanced calculations
(differentiation,
integration, ...)
Sensor behavior
Visual inspection of
features for different
use cases
Reduce dimensionality
of data using PCA
analysis
What features do really
matter
Problem simplification
Improve robustness
Labeling of test data
(fire/no fire)
Select classification
dataset
Train classifier (Support
Vector Machine)
Sweep SVM parameters
Determine optimal
settings
Implement model

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Leveraging - Range of tools
Data clustering
RegressionData visualization
Pattern mining
Classification
Differential equations
• High-Level
• Abstracted
• Data driven
• Seek coverage
• Low-Level
• Specified
• Knowledge driven
• Seek leverage

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Leveraging - Generic data science approach
Business
understanding
• Understand
business objectives
• Define
representative use
cases and
requirements
• Convert this
knowledge into a
data science
solution
MILESTONE
Does data
suit problem?
MILESTONE
Are improvements
possible?
BUSINESS TECHNICAL USER
What to solve? How to solve? How to apply?
Data
understanding
• Data selection
• Data exploration
Data
preparation
• Data
transformation
• Data integration
• Data imputation
Data
modelling and
analysis
• Clustering
• Classification
• Regression
• Visualization
• Statistical
Model or
algorithm
deployment
• Ingesting Data
• Processing Data
• Storing Data
• Analyzing Data

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Leveraging - Case : Safesens Sensor signals
Fire detection
RealityClassification
Smart product solution
Purpose
Early fire detection
Smart product flavor
Leverage on existing product assets
Solution
Existing assets
• Fire sensor node (Humidity, temperature, MOX)
• Sensor communication (mesh network)
Leveraging
• Feature detection
• Compensation for cross sensitivity (knowledge driven)
• SVM trained model (data driven)
Industry transformation potential
• Detect fire earlier
• Increase convenience and reliability : less false alarms
Potential scaling effects
• Predict fire evolution within building
• Optimize escape routes
• Better inform and assist fire fighters

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Leveraging - The impact of time
What is the evolution of
traffic jam lenght and
duration over the past 10
years?
Traffic jam warning (‘There is
a traffic jam on your current
route’)
Traffic jam avoidance based
on current location, time and
route (predict if you will end
up in a traffic jam and adjust
route up front)
PAST
Historic
• Post processing
• No time constraints
• Possibility to analyze big
amounts of data
• Data exploration
• Acquire insights
NOW
Real-time
• Closed loop control (react
immediately on changes)
• End2end system throughput
considerations (no or limited
buffering)
• Fast data processing
• Deterministic
• Reliability
FUTURE
Predictive
Prescriptive
• Anticipate changes (look
ahead)
• Intelligent, high level model
needed (AI, self learning)
• Context sensitive
• Highest level of optimization
• Operational excellence

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Leveraging on your data
Statistics
Analytics
Trend
Mean value
Standard deviation
Algorithms
Feature detection
Delay
Spike
Rate of change
Context
Open data
Artificial intelligence
Data science
Predictive model
Data based service
Data intelligence
Explore
Insights
Leverage
Existing data
Enhanced Data
Linked Data

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Retrofitting existing products
Making your product smart(er)

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Retrofitting - Challenges
Compatibility
with existing
product
Shift to non-trained
installer (end-user)
Large product
variety

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Retrofitting – Case #1 : StappIn

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Retrofitting – Case #1 : StappIn

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4 Ways to ‘smartfit’ your product
Upgrade Extend
• Firmware update
• Faster sampling
• Log more parameters
• Add new features
• Piggy pack
• Use communication i/f
• Add new sensors
• Re-use existing platform
• Within room/power
constraints
• New submodule
• Form/fit/function
• Leap in technology
(sensors, computing
platform, communication)
• Dispose of old submodule
• Non-intrusive
• Within room constraints
• Add new sensors +
platform +
communication
Replace Complement

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Retrofitting – Case : StappIn
Smart product solution
Purpose
Offer car sharing service
Smart product flavor
Retrofit - Extension
Solution: Retrofitting of car
• Control unit
• Key immobilizer
• NFC card reader
• GPS
• OBD/CAN interface with car
Industry transformation potential
• From car selling to transport solution provider
• New earning mode / More regular income
• Take advantage of garage domain knowledge and expertise
(car purchase, maintenance, facilities)
• Existing network (no extra investment)
• Rent a car fit for the occasion (shopping, holiday)
• IP owned by StappIn possibility of franchising
Potential scaling effects
• Optimize fleet management
• Use car behavior data : user profile, car maintenance, sell data
to other stakeholders

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Retrofitting – Case : Engie Gecosens
Smart product solution
Purpose
Measure energy consumption/production on
non-smart meter
Smart product flavor
Retrofit - Complement
Solution
Technology
• Optical lens system
• LED
• Phototransistor
Connectivity
• Serial / Z-wave
Industry transformation potential
• Smart meters not yet deployed
• Quick and easy install / Auto calibration
• Cheaper than current clamps
• Large installed base of non-smart meters
Potential scaling effects
• Detailed, real-time info on energy consumption
Intelligence
• Focus less measurement
principle
• Ambient light suppression
• Advanced signal processing

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Scratch building smart products
How to find your way?

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?

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Scratch building - Challenges
New to the company
Newtothemarket
Known
New
Where do you want/need to go?
?
Markets
Users
Technology
Business
model
Cost
Time to scale
Risks
Roadmap

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Scratch building - Case : Bosch eyes outdoor camera

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Scratch building - Case : Bosch eyes outdoor camera
Need for extensive user and
features survey before starting
smart product design

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Integrated product development approach
User centric
Hollistic
Multi-
disciplinary
Stage gated
Risk
controlled

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Scratch case : Bosch eyes outdoor camera
Smart product solution
Purpose
Provide integrated surveillance and lighting
solution
Smart product flavor
Scratch build (new smart product development)
Solution
Multi-functional solution
• Outdoor surveillance (camera)
• Lighting (ambient light, guidance light, alarm)
• Intercom
Smart features
• High resolution camera
• Smart movement detection
• Connected (app)
• Multi-camera management
• Possibility to control other lights
Industry transformation potential
• Enables Bosch to enter home automation market
• Integrated solution in a converging market (door videophone,
security, home automation, lighting)
• Does not look like a camera (appealing design)
Potential scaling effects
• Image sharing with neighbors (e.g. during holiday)

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Conclusions and take-away

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Smart products development flavors
Constraints
Competition
Time to scale
Cost
Risk
Leverage Retrofit Scratch
SMART
PRODUCTS
INCREMENTAL INNOVATION DISRUPTIVE INNOVATION

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How smart products support industry transformation
SMART
PRODUCTS
DIGITAL
TRANSFORMATION
INDUSTRY
TRANSFORMATION
• Leverage
• Retrofit
• Scratch
• Big data
• New and better insights
• New products and
services
• New markets
• New business models
• New stakeholders
• Addressing or creating
new needs
• Synergetic effect of
scaling

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Which flavor do you like?

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Innovation Day is an initiative of Masters in Innovation,
the umbrella brand of the Verhaert Group which aims
to connect, train and accelerate professional innovators.
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