DGI_The_Smart_Object_Age

IOT+HREPORT|MARCH2015
SMART
OBJECT AGE
THE
Fig 01. Jibo, The World’s First Family Robot.
http://www.jibo.com/

2© DESIGN GROUP ITALIA
PETER NEWBOULD
Partner
Combining analytic skills with a human centered design mindset, creating
sound solutions for products, communication, and business models.
RE INVENTING
PRODUCTS
IOT+H REPORT |
Design Group Italia has been around since
1968 helping companies design and innovate
their physical products.
Like most of our clients, our history was built on the
creation of manufactured products, isolated units sold
off store shelves and the only communication with the
end user would occur if there was problem put to the
customer service helpline.
These days, most of our clients have had to face, in some
shape or form, the competitive pressure to make their
products connected and become part of an ongoing
conversation with their end users, creating a positive
user and brand experience. These dumb objects must
now become smart and create new forms of value.
Taking physical products into the digital world means
the digital transformation of business.
Our experience across many consumer markets has
taught us to tread wisely and not get blown away with
the glory and ‘innovation’ new technologies can ‘poten-
tially’ deliver. Adopt only the necessary technologies
and do it with sense that is right for your brand.
As designers, we finding ourselves more and more
helping companies path find their way in building the
product-service ecosystem when physical products go
digital.
This white paper on the IoT aims to help the reader
reflect on the human centered design challenges and
opportunities the future holds. There are already more
connected devices than humans on the planet, yet, even
with some guided behaviour change, it is humans that
must remain and feel on control.

IOT+H REPORT | AUTHORS
3 © DESIGN GROUP ITALIA
GIANANDREA GIACOMA
Design Research Director
Psychologist, expert in psychology of mediated interaction, persuasive
motivational design, user needs.
SIGURDUR THORSTEINSSON
Partner
An interpreter of culture and humans in general, affronting the
challenges of the world with design powered innovation
STEFANIA BERSELLI
Service Designer
An italian service designer, specialized in human behaviors, stretegic
design and infographics visualization.
GABRIEL ZANGARI
Managing Director New York
Bridging the gap between New York and Milan by interpreting and
harnessing European design talents to innovate with success.
LEANDRO AGRO’
Digital Design Director
Awarded IxD/UX Director, IoT Guru, patents contributor, with 15+
years of design and team leadership.
CONTRIBUTORS
AUTHORS

Human beings no longer have a monopoly
on memory, perception and the elaboration
of knowledge. In fact, we now find classically
human cognitive capabilities in many objects
that fill our homes and offices, or are even
worn around our necks or on our arms.
We are not talking about science fiction here,
but rather a very concrete vision of today’s
product design scenario.
Smart objects are manufactured products that
interact with users and digital platforms. Products
that no longer wait for users to push their buttons,
but proactive machines that interpret their user’s
habits and tastes, to then propose new functions
autonomously. They are changing our daily habits
and ways of living in the world.
At Design Group Italia, we believe design is about
helping people, companies and communities create
meaningful objects, systems, services and solutions
that take care of all of us as human beings.
In our 40 years of history, we have embraced new
technologies that help us in our quest, and smart
objects are another exciting frontier to help us keep
user needs at the center of our design to create
value for the final consumer. Never stupid gadgets,
but meaningful design that lasts, that respects our
earth, that fulfills a real need or emotion.
We dare to believe that the most important design on
the horizon will be the one that is able to adapt and
plan specific mental processes as well as behavior
with other objects and people: a mind-centered
design
LET’S KEEP
THE SMART AGE
FROM
BECOMING
STUPID
IOT+H REPORT | INTRODUCTION Fig 02. Recon Instruments Snow2,
heads up display for alpine sports, 2014
http://www.reconinstruments.com/products/snow2/.
“ WE ARE AT A TURNING POINT
IN THE AUTONOMY OF
THE OBJECTS AROUND US ”

IOT+H REPORT | 4S OF SMART OBJECTS
4S OF
SMART
OBJECTS
The term ‘smart’ refers to the quality of intelligence
that will increasingly characterize our products in
the future. Intelligence is the mix of cognitive and
behavioral abilities used to achieve specific goals in a
given context.
So it is clear that the more intelligent an object, the
more it will understand its context and its user’s goals.
That is why a human-centered approach is paramount.
In the end, understanding people is the key to innovating
products with success. And with technologies like
sensors, processors and internet connections, objects
are becoming more effective at doing what they were
always meant to do: serve their owners.
FROM MATERIAL TO SENSORIAL
Products are becoming ever more capable of sensing
their surroundings. Evolving perceptive qualities
makes it easy for the object to remember user
behavior and then proactively propose new uses and
services.
FROM ISOLATED TO SYSTEMIC
Objects are no more than nodes in a web of
communication between users and products, online
and offline. This allows the products to communicate
more information and of course receive more
information from other nodes in the web.
FROM OBJECT TO SELF
With increased intelligence and high proactivity levels,
there is no debating that objects now have a real
personality, a self. Their way of interacting directly
influences the manner in which others perceive them.
FROM OWNED TO SHARED
The logic of inclusiveness works for hard products
just as much as with social media: more and more
often even classic commodities like cars and homes
are shared rather than owned. Newer generations see
little use for the burdens of ownership when sharing
is so easy and economically accessible. In fact, each
person has the ability to share their lives with others
and find new social possibilities.
SMART
OBJECT
SENSORIAL
SYSTEMICSELF
SHARED
“ PRODUCING REAL VALUE
FOR CONSUMERS, NOT JUST
ANOTHER GADGET ”

automatically start to warm the house, or our wa-
shing machine can regulate its cycle in relation to the
power absorption of other appliances in the house.
The next step in this evolution is a seamless
relationship of everyone’s ecosystem with others,
moving towards the building of a smart city. When all
the devices can communicate with each other, they
can also regulate the streams of energy, information,
resources and people to achieve a more sustainable
and livable city. This evolution is already happening:
for example, GPS navigators can sense if traffic is
slow on a certain road and warn others nearby to
take a different route.
With so much information available nowadays, we
need objects not only smart enough to filter it, but
also wise enough to interpret it for us.
+ TRANSPARENT INTERACTION
Influenced by the aeronautical, military, medical and
gaming avant-garde, the ways of interacting with
technologies progressively gain new channels in a
more efficient way even for the consumer. Interaction
methods like vocal, gesture, and eye movement are
Today, we are experiencing a shift in the
paradigm of smart objects: they are not just
passive monitors anymore, they can sense
and interpret what happens in the world,
becoming more and more active. We can
now break down the relationship into three
simple stages: passive, reactive, pro-active.
At the same time, the relation with smart objects
is changing. In the past, we had a 1-to-1 relation
with our devices. Now, they are starting to create
an ecosystem where each object that we own inte-
racts with the others, exponentially increasing the
processing power and the quantity of data gathe-
red. For example, our smartphone can inform our
thermostat that we are on our way home, so it can
TECH
TRENDS
IOT+H REPORT | TECH TRENDS Fig 03. Apple watch, 2015.
https://www.apple.com/watch/

replacing dials, buttons and touch screens. The
progressive integration of sensors and processors
in objects and clothing will transform our way of
communicating.
+ SELF - AWARENESS
Early-adopters are using a new generation of tools
to monitor just about everything about themselves.
Whereas just a few years ago “quantified self” was
a sparsely populated market, the space has since
become saturated with activity trackers embedded in
clothes and worn on body parts, from your wrist to
your dog’s collar.
Tracking and wearable devices - from wristbands
to stay fit, to headbands to focus, to pillows to track
posture, and so on - are monitoring and taking data
from almost everything (see the wearable database
http://vandrico.com/database), but there’s still a gap
between the collected data and the real meaningful
values that the users might get.
The recent proliferation of “quantified self” devices,
like FitBit or Apple Watch, has been shifted into
everything from a piece of jewelry tracking sun
intensity and exposure to promote healthier skin
to a sensor-laden sleep number bed monitoring
sleep patterns. Beyond wearable devices, quantified
health sensors may find their way into even ordinary
household items.
The better we know our own bodies - and can
integrate, analyze, and understand the trends - the
more we are empowered to own our own health,
and the earlier we can catch and prevent anomalies:
shifting from analytics to “predictalytics”.
+ PATTERN RECOGNITION
There’s a growing number of companies and startups
that are using pattern recognition (face and gestures)
for security and mostly marketing purposes to better
understand their customers, their motivation and
buying triggers.
Just a few examples: PittPatt was recently acquired
by Google for Marketing purposes and Face.com
by Facebook to improve the face recognition of 200
million* photos uploaded per day, or 6 billion per 6
months (Source: Quora). This technology is breaking
out out (from deceptive to disruptive) right now.
First, it may be derivatives of Microsoft’s Kinect, or
Google’s new Project Tango.
PRO-ACTIVEREACTIVEPASSIVE
“ TECHNOLOGY TRIGGERS
DEEP CHANGE, BUT
DESIGN DEFINES REAL
OPPORTUNITIES ”
IOT+H REPORT | TECH TRENDS

PAST
PRESENT
“ LIFE IS A
NETWORK
OF INFORMATIONS ”
As Google demonstrated in February, this technology
gives smartphones the ability to do realistic 3D
mapping. Your phone will be able to create 250
million 3D measurements per second to build a 3D
model.
+ AUGMENTED REALITY
Imagine wearing low-cost, lightweight sensors
that pick up your body’s precise movements and
replicate them perfectly in a virtual world. As you
raise your arms, twirl around, flex your muscles or
do your best runway walk, the sensors gather real-
time data and reflect those movements in a virtual
world.
This technology exists. Developed originally for the
video game world, PrioVR came out of, naturally, a
successful Kickstarter campaign (see www.priovr.
com).
The next piece of tech is the Oculus Rift VR headset
– virtual reality goggles you wear to enter into a
virtual world. Just 18 months after a $2.5 million
Kickstarter campaign in Aug 2012, Facebook
acquired Oculus VR for $2 billion.
Their next generation of headgear, DK2, is potentially
spectacular (check it out here: www.oculusvr.com).
Augmented reality lenses to monitor sugar in our
blood, glasses to have real time information, system
powered exoskeletons which allow ill people to walk,
bionic arms, feet, hearts, bones and so on... are just
starting a next phase of augmented humanity.
+ BIG DATA
Big corporations and startups alike are focusing
their major business models on data collection and
analytics, combining hardware with software and
cloud services.
The volume, complexity and variety of today’s data
is challenging organizations to find new ways to
grow and innovate, but we believe that the most
remunerative technology in which corporations
should invest is: predictive analytics.
In the present-future everything will learn from big
data: smarter classrooms, smarter stores, smarter
medicines, smarter privacy and protection, smarter
cities and cognitive computing systems will learn and
interact naturally with people.
IOT+H REPORT | TECH TRENDS Fig 04 E-TRACES, Memories of dance with Arduino, 2014.
http://lilypadarduino.org/?cat=15

USER
NEEDS
TRENDS
“ WE ARE INFLUENCED
BY THE TECHNOLOGY WE
INVENT THROUGH MUTUAL
CO-EVOLUTION ”
IOT+H REPORT | USER NEEDS TRENDS
IDENTITY
EXPRESSION
EMOTIONAL
COMFORT
AWARENESS
PRIVACY
PEAK
TIME
The co-evolution of technology and user is
circular: starting with humans’ initial impulse,
products go even farther than the imagination
expected. For this reason we can say that
they influence each other in a reciprocal and
cyclical way.
+ EMOTIONAL COMFORT
We live in a stressful society and this influences the
lives of many. For this reason business must create
contents and experiences that gratify on an emotional
level and fuel our self esteem.
In this realm, the relationship role of objects will
extend into our very own personality and identity, and
will create new opportunities to create truly great
products.

+ AWARENESS
In an ever more complicated world, consumers -
or better yet prosumers - will have an increasing
necessity to gain awareness on many fronts: higher
ecological standards, transparency and sourcing to
name just a few.
Patients that check their doctor’s sources and the
latest innovations in medicine. Not to mention citizens
of many countries that realize the limits of their
humanitarian and political condition and organize on
social networks to create a better future. They all feel
the need to know more, to gain knowledge. And to think
that it was once only for the privileged! Information is
now for everyone!
On a more personal level, there is clearly greater
awareness through self-tracking: we do not have to
write down our exercise program in a spiral notebook
anymore. A bracelet can remember everything, analyze
the information, and even make recommendations on
how to improve. We start asking ourselves: can we
have a better and more gratifying experience with a
bracelet than with an annoying personal trainer? In
many cases, the answer is YES!
+ PEAK TIME
Time is becoming our most precious commodity.
We always have less and less and it is diluted into
IOT+H REPORT | USER NEEDS TRENDS Fig 05. Netamno Welcome, a camera that recognized your loved ones, 2014.
https://www.netatmo.com/en-US/product/camera

THANKS
MILAN
DESIGN GROUP ITALIA SRL
VIA ALEARDO ALEARDI, 12 - 20154 MILANO
PHONE +39 02 58325272
Peter Newbould
peter.newbould@designgroupitalia.it
NEW YORK CITY
DESIGN GROUP ITALIA Corp.
234 West 39th Street, 2nd floor New York, NY 10018
PHONE +1 (718) 577-1385
Gabriel Zangari
gabriel.zangari@designgroupitalia.it
IOT+H REPORT | CONTACTS
micro-moments.
We search for new services and products to help
manage our time, but then we do not have the time
to even try them, never mind enjoy them.
This is a problem especially when we add the fact
that employers ask for greater and greater efficiency
and production from each employee. Thus more
pressure from work, more pressure to be socially
active in the digital realm and the person is stuck in
the middle, feeling inadequate. In the end, it is clear
that successful smart objects will find fertile terrain
on the market if they both manage time and help
balance our emotional needs.
The reduction of time maximizes the need for
efficiency and tests people’s resilience. For
this reason, we always find ourselves delegating
information and services to technology.
These products are becoming an extension not only
of our needs, but also of our identities, as we will see
in the next point.
+ IDENTITY EXPRESSION
Identity is now fluid, never set in stone, as it is
represented and communicated not only by our
online profiles and by the communities we have
joined, but also by pairing with smart objects that
have a certain autonomy and personality. They can
be just as important as a personal pet like a dog or
cat to express our personal world, and our identity.
+ PRIVACY
Our identities are increasingly co-produced and
amplified by social networks and the web. On the
one hand we can express ourselves freely, but are
we losing our privacy?
In a context of constant automation of services and
user profiling, we must maintain balance and keep
the user’s need for privacy as one of the cornerstones
for designing smart objects and systems.
IOT+H REPORT | USER NEEDS TRENDS

In some degree, every design project has to
consider relations, human interactions and
communication. The objects that we design
never live in a vacuum without human
interaction. Products live in our ecosystem
and, in the digital smart object age, we can
even go so far as to say that design creates
the networks in which we live.
That is the reason why designers need to arm
themselves with psychological capabilities.
Designers must become familiar with the
motivational processes that govern users’
interactions with products.
These are currently represented by change
behavior studies, but they are now continuously
evolving more and more into frontiers like
social incentives in the virtual world, as well
as relationships with non-human subjects like
robots.
These new scenarios naturally bring uncertainty
and skepticism. As a response, we need to develop
a design of trust, where efficiency and credibility
are communicated subliminally through general
presentation, form and interface.
Now that objects can be proactive, they can beco-
me more human with subjective and independent
behavior. So - as designers - we need to under-
stand psychology, intelligence, cognition, meaning
and needs. We are not designing a mere form or
graphic interface, we are creating a personality.
The Internet of Things will flourish if it is an
Internet of Caring Things.
DESIGN
EVOLUTION
IOT+H REPORT | DESIGN EVOLUTION Fig 06. Moto Hint by Motorola, a wireless earbud controlled by voice, 2015.
http://www.motorola.com/us/accessories-bluetooth-headsets/Moto-Hint/moto-hint-pdp.html

“ OUTSOURCING OUR
COGNITIVE CAPACITIES TO
OBJECTS INCREASES THE
NEED TO STUDY DESIGN
DYNAMICS WITHIN
THE HUMAN MIND ”
IOT+H REPORT | DESIGN EVOLUTION

2015 is on the edge between cloud computing and
the Internet of Things era. Being connected is the
natural state of mind for any smart object.
In fact, adding a personality to a digital product or
connecting an already digital object to the Internet of
Things provides a range of opportunities for business
- very tempting for companies looking to bring their
goods and services even closer to the needs of their
customer base.
Placing an object in a pocket, in a car, on a desktop
or in customers’ homes means building a personal,
bi-directional, “always-on” communication channel.
II you have a product, then it must be connected.
It must be a system and never a stand-alone
identity.
Lately, the gold rush is on. Many companies are
attempting to take their traditional products and
blindly push them into the digital era. Some have
been successful, but many others have fallen into
the pitfall of investing without understanding how
the digital world works.
They overlook the hardware/software cycle ratio. For
many companies, accustomed to long development
cycles that involve design, tooling, manufacturing
and shipping for months, the rapid software cycle is
unfathomable.
There is a rule of thumb compressed into the
INNOVATION
“ HUMANS...
ARE HERE TO STAY.
WE MUST GIVE THEM
MEANINGFUL DESIGN,
NOT GADGETS. ”
IOT+H REPORT | INNOVATION Fig 07. Ara Project, an open hardware platform
for creating highly modular smartphones.
http://www.projectara.com/

concept of 3y3m: 3 years development cycle for
hardware to 3 months for software. This does
not mean changing software platforms. On the
contrary, developers need to be confident that they
can design and innovate in a platform that will
remain and will host their future creations - always
updateable to guarantee that the user interface is
up-to-date and competitive, because the last thing
a company wants is an aging UI.
Here are a few general considerations:
1. System rules! Hardware/software development
must be planned and evolved in harmony.
Consider the 3y/3m approach.
2. Be scared if software or user interfaces are
under-considered in your company. Even
market leaders tend to rest on their laurels and
depend on a rich hardware history. They need
to know that users expect seamless interfaces
that are intuitive and easy to use. 3.
3. Facebook has more than 1 billion active users
and so every time they introduce something
new, that means the world learns something new.
The learning curve is immense and companies
need to be informed.
Never undervalue the consequences of software
running on your products. It is the portal through
which everything in your business will flow.
Nokia is an extreme example of how to lose market
share by underestimating the importance of UI.
In the early 2000’s Nokia was the market leader,
but they had dozens of models all with the same
software. They invested completely in hardware.
The customer experience was weak and they left
the door open for Apple to come in and take control
of the market. Now where is Nokia?
Every day without innovation is a day losing
competitive advantage. Companies entering a more
technologically advanced world need to sense
urgency in creating gratifying user interfaces.
If they do not, they will perish and, along with them,
the hard work of generations of workers before
them.
HYBRID
INTELLIGENCE
HOMO
INTELLIGENCE
THE
TOOLS
NETWORK
SOCIETY
INDUSTRIAL AGE
CIVILIZATION
TRIBE
TIME
NOW
ARTIFICAL INTELLIGENCE
DIGITAL TECHNOLOGY
COGNITIVE ARTEFACTHOMO SAPIENS INTELLIGENCE
COLLECTIVE INTELLIGENCE
IOT+H REPORT | INNOVATION

IT’S JUST
THE
BEGINNING
There are various reasons for which we
love certain products.
There are functional reasons and practical
ones too, but also aesthetic and value-
based reasons that reinforce the idea we
have of ourselves.
Objects themselves are inserted in
contexts where the brand shines as a
beacon. In the end, there are unique
moments, individuals and emotions that
we continue to project onto the use of that
object.
They accompany us in our personal and
professional lives. They should gain
importance. Be meaningful. Gratify us
and make us feel better through smart
technologies and peace of mind.
This will keep smart objects from
becoming stupid.
Smart objects are extensions of our
cognitive capacity.
They will take care of us.
A neo-animis will emerge from the influence
of smart objects on our perception and
imagination.
“ FIND OUT JUST
HOW DEEP THE
RABBIT HOLE GOES ”
IOT+H REPORT | CONCLUSION Fig 08. Mother by Sense, a family of smart sensors
that you can set according to your nedds, 2014.
https://sen.se/store/mother/

THANKS
MILAN
DESIGN GROUP ITALIA SRL
PHONE +39 02 58325272
Peter Newbould
peter.newbould@designgroupitalia.it
NEW YORK CITY
DESIGN GROUP ITALIA Corp.
234 West 39th Street, 2nd floor New York, NY 10018
PHONE +1 (718) 577-1385
Gabriel Zangari
gabriel.zangari@designgroupitalia.it
IOT+H REPORT | CONTACTS

IOT+HREPORT|MARCH2015
DESIGN GROUP ITALIA
TEL. +39 02 58325272 FAX. +39 02 58325264
www.designgroupitalia.it

DGI_The_Smart_Object_Age

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