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Competing Visions for the
        Future

      Post-PC Era

         @MITEFCMB
          #MITForum
        October 9, 2012
Competing Visions

•   Two seemingly competing visions for the future
•   Friendly smack-down (or so I was promised)
•   Tonight = “The Voice” for the most powerful idea
•   Who will win?
•   You decide!
Lora Kratchounova,
  Scratch Marketing + Media
• Twitter: @ScratchMM
• Principal at Scratch M+M
• MIT Enterprise Forum Vice Chair,
  Innovation and Startup Committee
• Inspired by what the MIT Enterprise Forum has to offer
• Inspired by compelling visions for the future
The Future is Mobile

• The future is going to be mobile
• Mobile phones/tablets (mostly by Apple) =
  the dominant way we interact with the
  world around us
• The mobile phone/tablet becomes our
  universal “remote control”
The Mobile Revolution
• Through Q1 2012, just 2 years after Apple
  shipped the initial iPad, Apple has sold 67
  million of them
   – It took Apple 24 years to sell that many Macs
   – Over 3 years for that many iPhones
   – 5 years for that many iPods
• 1.2 billion smartphones over the next 5
  years, about 40 % of all handset shipments
  (ABIResearch)
How Mobile Are We?
How Mobile Are We?
Michael Davies,
  Endeavour Partners
• The Future is Mobile
• @MichaelAMDavies
• CEO of Endeavour Partners; Expert
  witness in the DoJ ATT/T-Mobile merger
• Senior Lecturer at MIT at the Systems Division
• Guest Lecturer at Harvard Business School and
  London Business School
Competing visions for the future in a post-PC era


M ichael Davies spends his tim e advising and teaching


                Education                           Experience                        Expertise
Masters of Arts,                    Strategy Consulting               Expert positions
University of Cambridge             • Chairman,                       • Senior Lecturer, MIT
• Electronic Sciences                 Endeavour Partners
                                                                      • Guest Lecturer,
• Engineering                       • Chairman,                         London Business School
                                      Mercator Partners
Master of Engineering,                                                • Board of Advisors,
University of Durham                • Principal,                        US Military Academy,
                                      GeoPartners Research              Systems Engineering
• Cybernetics and Robotics
                                    Executive Management
• Microelectronics                                                    • Expert Witness in AT& T/T-
                                    • Head of Strategy,                 Mobile case
• Management Science
                                      BellSouth International           Department of Justice
MBA,                                  (now Vodafone)
London Business School                                                • Massachusetts Technology
                                    Strategy Consulting                 Leadership Council
• Business strategy, technology     • Manager,
  management and decision                                             • Executive Committee,
                                      Boston Consulting Group           IEEE
  science
                                    • Consultant,
• Doctoral level w ork on systems                                     • Board of Advisors,
                                      Braxton Associates
  dynamics and systems thinking                                         Motorola Research
                                      (now Deloitte)
Postgraduate work,                  Engineering                       • R& D Board,
Harvard Business School                                                 Telecom New Zealand
                                    • Robotics and cybernetics
• Innovation & Organization           engineer,
                                      Mars Electronics




                                                           2"                                        3 October 2012
Competing visions for the future in a post-PC era


W hat are you going to do with your future, your life?




                            3                                          3 October 2012
Competing visions for the future in a post-PC era



App phones dominate value             High volume and value: 2.9 billion app phones sold globally, 5.5 billion installed base by
creation and capture in the digital   2018; $416 billion in value; important associated service revenues; shift from native to
ecosystem                             HTML5

Developing world will dominate
                                      Developing world is largest source of volume with 65% of market in 2018; developed
volume; developed world will          world leads in device profit with 63% in 2018
dominate value

                                      There will be significant difference in adoption, selection and usage across cohorts; the
Consumer cohorts shape context
                                      major challenge is crossing the chasm to mainstream for digital immigrants in the
and behavior                          developed world


                                      End to end experience drives consumers’ purchase criteria, choice, satisfaction, loyalty
Complete end-to-end experience
                                      and lock-in; complements, such as cloud services, content and accessories become more
will drive long-term success          important


In medium term, major shift to soft   Major shift from hard factors (features, functions, form factor, price) in app phones in the
factors in purchase criteria          developed world to soft factors (usability and aesthetics)



                                      Tablets will grow very rapidly, ushering in the post-PC, post-CE era; huge unfilled appetite
Tablets explode                       in short term



App phones + cloud + tablet           Platforms (2-sided market) for content, commerce, convergence enable new businesses;
become dominant digital platform      drive asymmetric competition; consumerization of IT



The connected home is the next        The home is the next critical battleground for consumer choice as app phones and tablets
major area for value shift            become the dominant control plane and major content consumption devices


                                                    4                                                            3 October 2012
Competing visions for the future in a post-PC era


Ten reasons why it‟s all about app phones + tablets +
cloud services (=algorithm s)
    Everyone (soon) has one…
    …that is personalized for them…
    …w ith them all of the time…
    …wherever they go…
    …and they are powerful computing devices…
    …w ith broadband connectivity…
    …that enables them to exploit amazing algorithms in the cloud…
    …and they are intuitively easy to use…
    …and really exible…
    …and really easy and cheap to develop applications for.


•   Everything else becomes an adjunct or accessory

                                   5                                             3 October 2012
Competing visions for the future in a post-PC era


Everything becom es accessories or adjuncts to app
phones and tablets and cloud (=algorithm s)

          Accessory                            Adjunct                            Algorithm

ac·ces·so·ry                     ad·junct                            al·go·rit hm
[ak-ses-uh-ree]                  [aj-uhngkt]                         [al-guh-rith-uhm]
noun, plural -ries, adjective

noun                             noun                                noun
1.          a subordinate or     1.            something added       1.              a set of rules for
            supplementary                      to another thing                      solving a
            part, object, or                   but not essential                     problem in a
            the like, used                     to it.                                 nite number of
            mainly for                                                               steps
            convenience,
            attractiveness,
            safety, etc., as a
            spotlight on an
            automobile or a
            lens cover on a
            camera.

                                                   6                                               19 October 2011
Competing visions for the future in a post-PC era


“Just one word…”



             Access • o • rithm


              Alg • o • cessory




                      7                                       3 October 2012
Competing visions for the future in a post-PC era




Smart phones       Dumb things




               8                                       3 October 2012
Competing visions for the future in a post-PC era




                            Global device revenue
                              (in billions of USD)
$500                                                                                                           CAGR
                                                                                                           (2010 – 2018)


                                                                               App phones                      21%
$400




$300




$200

                                                                               Connected TV                    19%
                                                                               Tablets                         28%
$100                                                                           PC                               -7%
                                                                                      Other connected CE        -3%
                                                                                      Non-connected CE         -19%

                                                                                      Feature & basic
  $0                                                                                                           -16%
                                                                                      phones
       2010   2011   2012      2013     2014     2015       2016   2017    2018




                                                        9                                                   3 October 2012
Competing visions for the future in a post-PC era

                                                                                  Device pro t by product and geography, $B
                                                                                                                                       2018
                                                                                                                                        $230 B
                                                                                                                                                                   Other non-connected CE
                                                                                                                                                                   Other xed CE
                                                                                                                                                                   Connected TVs
                                        App phones represent 64% of
                                                                                                                                                                   PCs
                                         pro t by 2018 of all devices,
                                            up from 29% in 2011

                                                                                                                                                                   Tablets (16%)




                                                             2010
                                                             $130 B

Other non-connected CE                                        $
                         $2                  $5                             $6                $5        $18
                                                              1
     Non-connected TVs   $0                   $1                  $0             $1              $1     $4
Other connected xed CE        $2               $3                      $3                   $3          $10
         Connected TVs                                                                                  $2                         Ld.
                                                                                                                     Lagging       dev. JKT               North    App phones
                  PCs 1            $5          $2                 $7                        $7          $21                                   Europe +
                                                                                                                    developing                           America
                                                                                                                                                                   (64%)
           Tablets (6%) 1 1        1                $3                                 $4               $8


                          Lagging            Ld.
                                                  J K/ T
                                                   /              Europe +
                                                                                            North             4X
 App phones (29%)           dev.             dev.                                          America      $37
                                                    $4              $10
                             $8               $4                                             $10



           Feature and
                                             $14                            $4        $1 $3        $3   $24
          basic phones
                                                                                                                                                                   Feature and basic phones
           Portable CE        1          1               1                             3                $6                                                         Portable CE




                                                                                                               10                                                  3 October 2012
Competing visions for the future in a post-PC era


   2018 landscape
                                Drivers of choice                                                                                     Device base and spending
                                                                                                                                         Developing      Developed
                           Soft factors and aesthetics                                                           4.1B units                                     1.4B               5.5B app phone installed base
                            Look and feel of device
   Demand                                                                                                                      $205B                                        $211B                     $416B app phone sales
                                    Brand loyalty
opportunity
                             End to end experience                                                                                           $57B            $64B      $121B tablet sales

                            (Performance no longer                                                                                                  $326B                                     Mobile services (excl. conn.)
                                 differentiates)
                                                                                                                                                      $68B      Accessories spending


                                                                                                                                             Device pro t
                                                                                                                                         Developing      Developed
                                     OS share                                                                                                $59B             $91B            $150B app phone pro t
                                                                                     New /others
                                                                                                                                               $15B          $23B        $38B tablet pro t
   Business                         $174             $46                 $167           $416
                                                                                                                Devices                          Netw ork                                   Cloud
 ecosystem                 $55      $45 $111
                                                                                                      PC          TV      App phone
                                                                                                                           Tablets




                                                                                                   App stores




                             Post PC, post CE era                                                               Apps                                                             Connected home
               Installed            5,501
                 base                                                                 iOS, Android and HTML5                Cloud apps



                                    4,098
  Technical                                                                                                                                                          Personal app phones                Shared (household)
                                                                                                                                                                          and tablets                         tablets
architecture                                        TV                                                                                  Algorithms
                                                             1,629
                           1,208                    1,004     597       Developing
                                            944
                            664     1,403   354      566     1,032      Developed                                                                                   Commentary             Control            Content
                            544             590      438
                           Tablet    App    PC       TV       Other
                                                                                                                                                                       plane                plane              plane
                                    phone                   connected
                                                                CE


                                                                                                   12                                                                                          3 October 2012
Competing visions for the future in a post-PC era


     Com puting and storage costs fall exponentially, m aking
     „cloud services‟ incredibly cheap

                        Moore‟s Law - cost per                                         Average hard drive storage cost
                   million calculations per second                                                 (Cost / GB, 1984 – 2009)
Cost per MIP                                                           Cost per GB
  (log scale)                                                            (log scale)
$1,000,000                    $294,031
                                                                       $1,000,000
                                                                                             $177,000

  $100,000                                                                 $100,000

   $10,000                                                                 $10,000

    $1,000                                                                  $1,000

      $100                                                                    $100

       $10                                                                     $10

         $1          35% annual decline                                         $1            45% annual decline

     $0.10                                                  $0.05             $0.10
                                                                                                                                     $0.07
      $0.01                                                                   $0.01
           1970 1975 1980 1985 1990 1995 2000 2005 2010                               1984        1989               1994   1999     2004           2009

                Source: Singularity.com; EndeavourPartners analysis                     Source: alts.net, cnet.net




                                                                      16
Competing visions for the future in a post-PC era


“The new panel in the iPhone 5 is sim ply rem arkable in
quality and if it were a PC m onitor, I 'd give it a Gold
Award on the basis of its perform ance”

        Color gamut                        Saturation




                                                                           AnandTech

                            17                                         3 October 2012
Competing visions for the future in a post-PC era


An iPhone is now as fast as recent personal com puters




                                                                          Geekbench

                           18                                         3 October 2012
Competing visions for the future in a post-PC era


“The re-im agination of nearly everything – powered by
new devices + connectivity + UI + beauty…”
•   Telephony                      •   Books
•   Newspapers                     •   Music
•   Life stories                   •   Sound
•   Magazines                      •   Video consumption
•   Shopping and commerce          •   Video creation and production
•   Healthcare                     •   Home entertainment
•   Wellness and tness             •   Television
•   News and information ow        •   Navigation
•   Note taking                    •   Sports information
•   Drawing                        •   Calling a cab
•   Photography                    •   Yellow Pages
•   Diaries                        •   Coupons and local offers
•   Scrapbooking                   •   Cash registers
                                                             Mary Meeker at D10, 30 May 2012

                              20                                                 3 October 2012
Competing visions for the future in a post-PC era


W inners and losers


       ✓ Apple
       ✓ Google                             Microsoft
      ✓ Amazon                                Intel
      ✓ Facebook                              Yahoo!
        ✓ ARM                                  Sony
      ✓ Samsung                                  Dell
                                                  HP
     ✓ Algorithms                           Motorola
    ✓ Smartphones                              Nokia
       ✓ Tablets
       ✓ Cloud                        PCs and servers
     ✓ LTE and WiFi


                      23                                    9June 2010
Competing visions for the future in a post-PC era


The key challenge is wizardry – m aking “ magic”
through system level usability




       Focus on system level
              usability
                                               “ Any suf ciently advanced
                                             technology is indistinguishable
   Effectiveness Get jobs done
                                                       from magic”
    Ef ciency     Simple, easy to use         Arthur C. Clarke’s Third Law
                  Enable a great
   Satisfaction
                  experience




                                        24                                           19 October 2011
The Future is
   Enchanted Objects
• The things we live with are getting smarter
• Imagine a chair that plays your Pandora
  music
• A kitchen cabinet that instantly connects
  you to a loved one
• A trash can that reorders household
  essentials via Amazon…
David Rose,
      Roseology, Ditto
• The Future is Enchanted Objects
• Twitter: @DavidRose
• CEO of Ditto, Serial entrepreneur;
  Vitality/ GlowCaps, Ambient Devices
• Enchanted objects, glanceable technology
• Research Scientist at the MIT Media Lab, teaching in
   the Tangible Media Group with Hiroshi Ishii,
Competing visions for the future
Competing visions for the future
Competing visions for the future
Ambient Orb        HyperCello         Furby          Toumaz Sensor       Little Printer    IO Brush      Nokia Broach




 Botanicals     Ambient Umbrella     Nabaztag       Hangsters Mobile   Nest Thermostat     GlowCap       Withings Scale




  Roomba          Sifteo Cubes     MotorolaActv      Pebble Watch      Sony SmartWatch     IO Bulb         Green Wheel




                      LEGO
Nike FuelBand      Mindstorms      Parking Meters     Photo Frames       Hancock Tower      Nike+          Kodak Locket




                                                      Responsive
  Anoto Pen       APEX Glasses      MIT CityCar                        Amazon Trashcan    Guitar Hero   Proverbial Wallets
                                                         Fork

                                   evidence for connected objects
Competing visions for the future
Competing visions for the future
Competing visions for the future
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Competing visions for the future
Competing visions for the future
Competing visions for the future
Competing visions for the future
Competing visions for the future
Competing visions for the future
Competing visions for the future
Competing visions for the future
Competing visions for the future
Competing visions for the future
Competing visions for the future
Competing visions for the future
Competing visions for the future
Competing visions for the future
Ari Adler, IDEO

• Twitter: @IDEO
• Design and Community Lead at IDEO,
  health and wellness group
• Inventor to19 patents
• Former MIT Media Lab research assistant
How might we use connected devices to enhance
  the experience and efficiency of our homes?




   Nest learning thermostat                         Twine smart home sensors
   www.nest.com                                     www.supermechanical.com/twine/




   Yello smart meter and application                Withings baby monitor and app
   www.ideo.com/work/sparzahler-electricity-meter   http://www.withings.com/en/babymonitor
How might we use connected devices to take
better control of our own health and wellness?




  Nike+ FuelBand fitness tracker   The Eatery app by Massive Health
  www.nike.com/fuelband/           eatery.massivehealth.com




  Zeo sleep tracking system        Scanadu diagnostic device
  www.myzeo.com/sleep/             tinyurl.com/scanadufastco
How might we use connected devices to effortlessly
 collect and aggregate data for the greater good?




    Asthmapolis asthma device and app   Ginger.io behavioral analytics platform
    www.asthmapolis.com                 www.ginger.io




    Street Bump app                     Waze community mapping app
    http://tinyurl.com/numstreetbump    http://www.waze.com/
Adam Laughlin,
         ImpulseSave
•   Twitter: @a_laughlin
•   Non-profits
•   Nextstage Evolution
•   Media Lab (Lifelong Kindergarten)
•   ImpulseSave
Do I want to
  think about it?

        Yes       No



               Delegate to
Phone         Object/System
Competing visions for the future
Our Selves

Our Companies

Our Governments
Adam’s Final Words
• Mobile interfaces handle the things you want to
  think about. Objects/Systems handle the rest.
• Sensors (especially phone) are systems’ portals into
  you
• Increasingly engineered human experiences for
  good & harm
• Sensors/Systems measure health & well-being
• Increasing multiple-bottom-line companies
Adam’s Final Words
Stuff you can play with today:
FUNF - funf.org (android sensor data)
BSMeter - goo.gl/NH6Q6 (paid)
PersonaScope - goo.gl/Ai1xx (paid)
Related:
Speaker - BostonCHI Nov 13.
Human Dynamics - Media Lab
Affective Computing - Media Lab
Ginger.io
Behav.io

Great books:
Thinking in Systems - goo.gl/SkzKH
Reading Virtual Minds V1 - goo.gl/EQJ2P
   If you are interested in measuring well-being, let’s talk!
Jennifer Lum,
      Adelphic Mobile

• Twitter: @JenniferLum
• Co-founder of Adelphic Mobile
• Mentor at 500 Startups and Tech Stars
• Serial entrepreneur with Quattro Mobile,
  and iAd, now part of Apple
• Angle investor though Apricot Capital
Current state of
               mobile
•   Mobile phone subs are 5x landline subs and passed landline subscriptions 10
    years ago and in the U.S. mobile broadband is ubiquitous at 64%

•   Tablet installations are 30% and exploding in the U.S. while mobile internet use
    has passed wired internet use in some emerging countries

•   Compared to online, mobile advertising is
    significantly more effective. When mediums
    are combined ‘mobile only’ holds its own and
    in some cases outperforms.
Market opportunity
Mobile media consumption is growing exponentially.
Ad spend is disproportionately low compared to other media.



                  $10.8B opportunity

                                                                            ~$20B+ opportunity




 *US Mobile Ad Spending. Source: eMarketer   *US Ad Spending vs Time Spent. Source: Flurry
Market challenges
Audience-based buying is an unsolved problem
   • Buyers: Struggle to reach targeted audiences at scale
   • Sellers: Struggle to understand and monetize audiences

Why hasn’t this been solved?
                                        2) Difficult and Complex problem
1) Mobile is different
                                                • Principles
   • User identification
                                                • Data collection
   • Apps - new media type
                                                • Implementation
   • More data - location, device, behavior

Existing ad platforms and technology are ineffective in mobile
Mobile advertising -
     the next two years
               •       Mobile Consumer
Innovation         •     Consume more services via mobile and connected
                         devices
                   •     Mobile payments
1. Scalable    •       Advertisers
 performance       •     Shift to real-time 1to1 marketing - cross screen
                   •     Data sources
                   •     Desired action/conversion
               •       Media
2. Creative
                   •     Content personalization and programming - cross
                         screen
                   •     Monetization strategies
Ambient intelligence
   & advertising
• Is there a role for advertising in ambient
  intelligence and if yes, what solutions are
  most likely to work?
    • More sensors/data, more personalized and
      targeted communication
    • Rich, continuous services delivered from cross-
      environment
    • How will consumer data be managed and
      distributed?
    • Which payment methods will be most effective?
Follow the discussion
• #MITForum:
    – Post or ask questions
•   @MichaelAMDavies
•   @DavidRose
•   @JenniferLum
•   @a_laughlin
•   @IDEO for Ari
•   @ScratchMM

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Competing visions for the future

  • 1. Competing Visions for the Future Post-PC Era @MITEFCMB #MITForum October 9, 2012
  • 2. Competing Visions • Two seemingly competing visions for the future • Friendly smack-down (or so I was promised) • Tonight = “The Voice” for the most powerful idea • Who will win? • You decide!
  • 3. Lora Kratchounova, Scratch Marketing + Media • Twitter: @ScratchMM • Principal at Scratch M+M • MIT Enterprise Forum Vice Chair, Innovation and Startup Committee • Inspired by what the MIT Enterprise Forum has to offer • Inspired by compelling visions for the future
  • 4. The Future is Mobile • The future is going to be mobile • Mobile phones/tablets (mostly by Apple) = the dominant way we interact with the world around us • The mobile phone/tablet becomes our universal “remote control”
  • 5. The Mobile Revolution • Through Q1 2012, just 2 years after Apple shipped the initial iPad, Apple has sold 67 million of them – It took Apple 24 years to sell that many Macs – Over 3 years for that many iPhones – 5 years for that many iPods • 1.2 billion smartphones over the next 5 years, about 40 % of all handset shipments (ABIResearch)
  • 8. Michael Davies, Endeavour Partners • The Future is Mobile • @MichaelAMDavies • CEO of Endeavour Partners; Expert witness in the DoJ ATT/T-Mobile merger • Senior Lecturer at MIT at the Systems Division • Guest Lecturer at Harvard Business School and London Business School
  • 9. Competing visions for the future in a post-PC era M ichael Davies spends his tim e advising and teaching Education Experience Expertise Masters of Arts, Strategy Consulting Expert positions University of Cambridge • Chairman, • Senior Lecturer, MIT • Electronic Sciences Endeavour Partners • Guest Lecturer, • Engineering • Chairman, London Business School Mercator Partners Master of Engineering, • Board of Advisors, University of Durham • Principal, US Military Academy, GeoPartners Research Systems Engineering • Cybernetics and Robotics Executive Management • Microelectronics • Expert Witness in AT& T/T- • Head of Strategy, Mobile case • Management Science BellSouth International Department of Justice MBA, (now Vodafone) London Business School • Massachusetts Technology Strategy Consulting Leadership Council • Business strategy, technology • Manager, management and decision • Executive Committee, Boston Consulting Group IEEE science • Consultant, • Doctoral level w ork on systems • Board of Advisors, Braxton Associates dynamics and systems thinking Motorola Research (now Deloitte) Postgraduate work, Engineering • R& D Board, Harvard Business School Telecom New Zealand • Robotics and cybernetics • Innovation & Organization engineer, Mars Electronics 2" 3 October 2012
  • 10. Competing visions for the future in a post-PC era W hat are you going to do with your future, your life? 3 3 October 2012
  • 11. Competing visions for the future in a post-PC era App phones dominate value High volume and value: 2.9 billion app phones sold globally, 5.5 billion installed base by creation and capture in the digital 2018; $416 billion in value; important associated service revenues; shift from native to ecosystem HTML5 Developing world will dominate Developing world is largest source of volume with 65% of market in 2018; developed volume; developed world will world leads in device profit with 63% in 2018 dominate value There will be significant difference in adoption, selection and usage across cohorts; the Consumer cohorts shape context major challenge is crossing the chasm to mainstream for digital immigrants in the and behavior developed world End to end experience drives consumers’ purchase criteria, choice, satisfaction, loyalty Complete end-to-end experience and lock-in; complements, such as cloud services, content and accessories become more will drive long-term success important In medium term, major shift to soft Major shift from hard factors (features, functions, form factor, price) in app phones in the factors in purchase criteria developed world to soft factors (usability and aesthetics) Tablets will grow very rapidly, ushering in the post-PC, post-CE era; huge unfilled appetite Tablets explode in short term App phones + cloud + tablet Platforms (2-sided market) for content, commerce, convergence enable new businesses; become dominant digital platform drive asymmetric competition; consumerization of IT The connected home is the next The home is the next critical battleground for consumer choice as app phones and tablets major area for value shift become the dominant control plane and major content consumption devices 4 3 October 2012
  • 12. Competing visions for the future in a post-PC era Ten reasons why it‟s all about app phones + tablets + cloud services (=algorithm s) Everyone (soon) has one… …that is personalized for them… …w ith them all of the time… …wherever they go… …and they are powerful computing devices… …w ith broadband connectivity… …that enables them to exploit amazing algorithms in the cloud… …and they are intuitively easy to use… …and really exible… …and really easy and cheap to develop applications for. • Everything else becomes an adjunct or accessory 5 3 October 2012
  • 13. Competing visions for the future in a post-PC era Everything becom es accessories or adjuncts to app phones and tablets and cloud (=algorithm s) Accessory Adjunct Algorithm ac·ces·so·ry ad·junct al·go·rit hm [ak-ses-uh-ree] [aj-uhngkt] [al-guh-rith-uhm] noun, plural -ries, adjective noun noun noun 1. a subordinate or 1. something added 1. a set of rules for supplementary to another thing solving a part, object, or but not essential problem in a the like, used to it. nite number of mainly for steps convenience, attractiveness, safety, etc., as a spotlight on an automobile or a lens cover on a camera. 6 19 October 2011
  • 14. Competing visions for the future in a post-PC era “Just one word…” Access • o • rithm Alg • o • cessory 7 3 October 2012
  • 15. Competing visions for the future in a post-PC era Smart phones Dumb things 8 3 October 2012
  • 16. Competing visions for the future in a post-PC era Global device revenue (in billions of USD) $500 CAGR (2010 – 2018) App phones 21% $400 $300 $200 Connected TV 19% Tablets 28% $100 PC -7% Other connected CE -3% Non-connected CE -19% Feature & basic $0 -16% phones 2010 2011 2012 2013 2014 2015 2016 2017 2018 9 3 October 2012
  • 17. Competing visions for the future in a post-PC era Device pro t by product and geography, $B 2018 $230 B Other non-connected CE Other xed CE Connected TVs App phones represent 64% of PCs pro t by 2018 of all devices, up from 29% in 2011 Tablets (16%) 2010 $130 B Other non-connected CE $ $2 $5 $6 $5 $18 1 Non-connected TVs $0 $1 $0 $1 $1 $4 Other connected xed CE $2 $3 $3 $3 $10 Connected TVs $2 Ld. Lagging dev. JKT North App phones PCs 1 $5 $2 $7 $7 $21 Europe + developing America (64%) Tablets (6%) 1 1 1 $3 $4 $8 Lagging Ld. J K/ T / Europe + North 4X App phones (29%) dev. dev. America $37 $4 $10 $8 $4 $10 Feature and $14 $4 $1 $3 $3 $24 basic phones Feature and basic phones Portable CE 1 1 1 3 $6 Portable CE 10 3 October 2012
  • 18. Competing visions for the future in a post-PC era 2018 landscape Drivers of choice Device base and spending Developing Developed Soft factors and aesthetics 4.1B units 1.4B 5.5B app phone installed base Look and feel of device Demand $205B $211B $416B app phone sales Brand loyalty opportunity End to end experience $57B $64B $121B tablet sales (Performance no longer $326B Mobile services (excl. conn.) differentiates) $68B Accessories spending Device pro t Developing Developed OS share $59B $91B $150B app phone pro t New /others $15B $23B $38B tablet pro t Business $174 $46 $167 $416 Devices Netw ork Cloud ecosystem $55 $45 $111 PC TV App phone Tablets App stores Post PC, post CE era Apps Connected home Installed 5,501 base iOS, Android and HTML5 Cloud apps 4,098 Technical Personal app phones Shared (household) and tablets tablets architecture TV Algorithms 1,629 1,208 1,004 597 Developing 944 664 1,403 354 566 1,032 Developed Commentary Control Content 544 590 438 Tablet App PC TV Other plane plane plane phone connected CE 12 3 October 2012
  • 19. Competing visions for the future in a post-PC era Com puting and storage costs fall exponentially, m aking „cloud services‟ incredibly cheap Moore‟s Law - cost per Average hard drive storage cost million calculations per second (Cost / GB, 1984 – 2009) Cost per MIP Cost per GB (log scale) (log scale) $1,000,000 $294,031 $1,000,000 $177,000 $100,000 $100,000 $10,000 $10,000 $1,000 $1,000 $100 $100 $10 $10 $1 35% annual decline $1 45% annual decline $0.10 $0.05 $0.10 $0.07 $0.01 $0.01 1970 1975 1980 1985 1990 1995 2000 2005 2010 1984 1989 1994 1999 2004 2009 Source: Singularity.com; EndeavourPartners analysis Source: alts.net, cnet.net 16
  • 20. Competing visions for the future in a post-PC era “The new panel in the iPhone 5 is sim ply rem arkable in quality and if it were a PC m onitor, I 'd give it a Gold Award on the basis of its perform ance” Color gamut Saturation AnandTech 17 3 October 2012
  • 21. Competing visions for the future in a post-PC era An iPhone is now as fast as recent personal com puters Geekbench 18 3 October 2012
  • 22. Competing visions for the future in a post-PC era “The re-im agination of nearly everything – powered by new devices + connectivity + UI + beauty…” • Telephony • Books • Newspapers • Music • Life stories • Sound • Magazines • Video consumption • Shopping and commerce • Video creation and production • Healthcare • Home entertainment • Wellness and tness • Television • News and information ow • Navigation • Note taking • Sports information • Drawing • Calling a cab • Photography • Yellow Pages • Diaries • Coupons and local offers • Scrapbooking • Cash registers Mary Meeker at D10, 30 May 2012 20 3 October 2012
  • 23. Competing visions for the future in a post-PC era W inners and losers ✓ Apple ✓ Google Microsoft ✓ Amazon Intel ✓ Facebook Yahoo! ✓ ARM Sony ✓ Samsung Dell HP ✓ Algorithms Motorola ✓ Smartphones Nokia ✓ Tablets ✓ Cloud PCs and servers ✓ LTE and WiFi 23 9June 2010
  • 24. Competing visions for the future in a post-PC era The key challenge is wizardry – m aking “ magic” through system level usability Focus on system level usability “ Any suf ciently advanced technology is indistinguishable Effectiveness Get jobs done from magic” Ef ciency Simple, easy to use Arthur C. Clarke’s Third Law Enable a great Satisfaction experience 24 19 October 2011
  • 25. The Future is Enchanted Objects • The things we live with are getting smarter • Imagine a chair that plays your Pandora music • A kitchen cabinet that instantly connects you to a loved one • A trash can that reorders household essentials via Amazon…
  • 26. David Rose, Roseology, Ditto • The Future is Enchanted Objects • Twitter: @DavidRose • CEO of Ditto, Serial entrepreneur; Vitality/ GlowCaps, Ambient Devices • Enchanted objects, glanceable technology • Research Scientist at the MIT Media Lab, teaching in the Tangible Media Group with Hiroshi Ishii,
  • 30. Ambient Orb HyperCello Furby Toumaz Sensor Little Printer IO Brush Nokia Broach Botanicals Ambient Umbrella Nabaztag Hangsters Mobile Nest Thermostat GlowCap Withings Scale Roomba Sifteo Cubes MotorolaActv Pebble Watch Sony SmartWatch IO Bulb Green Wheel LEGO Nike FuelBand Mindstorms Parking Meters Photo Frames Hancock Tower Nike+ Kodak Locket Responsive Anoto Pen APEX Glasses MIT CityCar Amazon Trashcan Guitar Hero Proverbial Wallets Fork evidence for connected objects
  • 52. Ari Adler, IDEO • Twitter: @IDEO • Design and Community Lead at IDEO, health and wellness group • Inventor to19 patents • Former MIT Media Lab research assistant
  • 53. How might we use connected devices to enhance the experience and efficiency of our homes? Nest learning thermostat Twine smart home sensors www.nest.com www.supermechanical.com/twine/ Yello smart meter and application Withings baby monitor and app www.ideo.com/work/sparzahler-electricity-meter http://www.withings.com/en/babymonitor
  • 54. How might we use connected devices to take better control of our own health and wellness? Nike+ FuelBand fitness tracker The Eatery app by Massive Health www.nike.com/fuelband/ eatery.massivehealth.com Zeo sleep tracking system Scanadu diagnostic device www.myzeo.com/sleep/ tinyurl.com/scanadufastco
  • 55. How might we use connected devices to effortlessly collect and aggregate data for the greater good? Asthmapolis asthma device and app Ginger.io behavioral analytics platform www.asthmapolis.com www.ginger.io Street Bump app Waze community mapping app http://tinyurl.com/numstreetbump http://www.waze.com/
  • 56. Adam Laughlin, ImpulseSave • Twitter: @a_laughlin • Non-profits • Nextstage Evolution • Media Lab (Lifelong Kindergarten) • ImpulseSave
  • 57. Do I want to think about it? Yes No Delegate to Phone Object/System
  • 60. Adam’s Final Words • Mobile interfaces handle the things you want to think about. Objects/Systems handle the rest. • Sensors (especially phone) are systems’ portals into you • Increasingly engineered human experiences for good & harm • Sensors/Systems measure health & well-being • Increasing multiple-bottom-line companies
  • 61. Adam’s Final Words Stuff you can play with today: FUNF - funf.org (android sensor data) BSMeter - goo.gl/NH6Q6 (paid) PersonaScope - goo.gl/Ai1xx (paid) Related: Speaker - BostonCHI Nov 13. Human Dynamics - Media Lab Affective Computing - Media Lab Ginger.io Behav.io Great books: Thinking in Systems - goo.gl/SkzKH Reading Virtual Minds V1 - goo.gl/EQJ2P If you are interested in measuring well-being, let’s talk!
  • 62. Jennifer Lum, Adelphic Mobile • Twitter: @JenniferLum • Co-founder of Adelphic Mobile • Mentor at 500 Startups and Tech Stars • Serial entrepreneur with Quattro Mobile, and iAd, now part of Apple • Angle investor though Apricot Capital
  • 63. Current state of mobile • Mobile phone subs are 5x landline subs and passed landline subscriptions 10 years ago and in the U.S. mobile broadband is ubiquitous at 64% • Tablet installations are 30% and exploding in the U.S. while mobile internet use has passed wired internet use in some emerging countries • Compared to online, mobile advertising is significantly more effective. When mediums are combined ‘mobile only’ holds its own and in some cases outperforms.
  • 64. Market opportunity Mobile media consumption is growing exponentially. Ad spend is disproportionately low compared to other media. $10.8B opportunity ~$20B+ opportunity *US Mobile Ad Spending. Source: eMarketer *US Ad Spending vs Time Spent. Source: Flurry
  • 65. Market challenges Audience-based buying is an unsolved problem • Buyers: Struggle to reach targeted audiences at scale • Sellers: Struggle to understand and monetize audiences Why hasn’t this been solved? 2) Difficult and Complex problem 1) Mobile is different • Principles • User identification • Data collection • Apps - new media type • Implementation • More data - location, device, behavior Existing ad platforms and technology are ineffective in mobile
  • 66. Mobile advertising - the next two years • Mobile Consumer Innovation • Consume more services via mobile and connected devices • Mobile payments 1. Scalable • Advertisers performance • Shift to real-time 1to1 marketing - cross screen • Data sources • Desired action/conversion • Media 2. Creative • Content personalization and programming - cross screen • Monetization strategies
  • 67. Ambient intelligence & advertising • Is there a role for advertising in ambient intelligence and if yes, what solutions are most likely to work? • More sensors/data, more personalized and targeted communication • Rich, continuous services delivered from cross- environment • How will consumer data be managed and distributed? • Which payment methods will be most effective?
  • 68. Follow the discussion • #MITForum: – Post or ask questions • @MichaelAMDavies • @DavidRose • @JenniferLum • @a_laughlin • @IDEO for Ari • @ScratchMM

Editor's Notes

  • #59: What will that information be used for? Sensor technologies help us understand and adapt our environments to suit our goals. Increasing: Sensors that learn about us and our environmentsIncreasing learning human desires and needs (gmail, ginger.io, affectiva, nextstage, mappiness. What do we do with this)?Increasing:Environments that learn about us (dvr that recognizes when you see a show that’s interesting, and automatically records it)Delegating decisions to objects/systems