Cover & Back Final

Cover & back_Size: 8.5”x11” with 5mm spine Issue Number 1 Get

SARAH // 7:00AM

*Yawn*...The only thing worse than waking up early is waking up hungry! TOASTER // 7:01AM

Not on my watch! The toast is done and there's tea in the kettle!

SARAH // 7:01AM

Mmmm....You had me at toast! :D You ordered the kettle to make tea?

CTO Straight Talk KETTLE // 7:02AM

Not really darling; it was more of a request. And it's done! :P

SARAH // 7:02AM http://straighttalkonline.com/cto Sigh... <3 you guys complete me! Available on: #jerrymcguiring TOASTER // 7:03AM Download CTO Straight Talk app on Google Play Store, Read CTO Straight Talk issue 1 digital magazine at Aww...You can thank Apple iTunes and Windows App Store. http://magazine.straighttalkonline.com/cto/issue1/ The Internet of Experiences for that! Check out Pg. 04!

KETTLE // 7:04AM

And for some brain breakfast, check out the interview with Tim Brown, the CEO of IDEO, on Pg. 44!

lnkd.in/CTOStraightTalk www.straightalkonline.com Issue Number 1

CONTENTS

The Possibilities 01 Are Limitless GH Rao President, Engineering and R&D Services, Connecting the Unconnected Soaring on the Wings of HCL Technologies James Robinson Visual Flight Simulations GM, IoT Group, Segments and Leann Ridgeway Broad Market Division, VP and GM of Simulation and Intel Corporation Training Solutions, 36 Rockwell Collins 52 Experiences The Internet of Things 04

Success in our evolving interconnected world is all about discovering the design and data secrets that delight both people and enterprises and keep them asking for more. Plus: • Internet of Things: Events Innovating Western Union Creating a Win-Win-Win for • Internet of Things: By The Numbers Partnering in Product Development • Internet of Things: An Intellectual History Into Its Third Century Sanjay Saraf Charles Gardiner CTO and SVP, Digital Product Global Delivery Group Strategy Engineering, and Technology Ofﬁcer, Western Union 60 Xerox 68

Beyond Technology for Technology’s Sake: a New Approach to Innovation An interview with Tim Brown, CEO and President, IDEO 44

How a Change Agent Became a The People-Centric Internet Catalyst for Collaborative Innovation Jean-Luc “Jl” Valente, Marcus Schabacker, VP of Product Management, VP of Medical Products R&D Cloud and Systems Management Baxter International Inc. Technology Group, 20 Cisco Systems 28 CTO Straight Talk Team Introducing Editor-in-Chief Paul Hemp

Managing Editor Gil Press CTO Straight Talk

Well, you might say, it’s about time! Contributing Writers Beth Schultz, Alan Earls Four years ago, we launched CIO Straight Talk magazine. It was based on the belief that some of the best Copy Editor Amy Halliday industry thinking comes not from consultants or analysts but from the people actually doing the work of IT. So we Art Director Daniel Upputuru (ITSA) decided to shine a spotlight on insights that CIOs and IT executives have distilled from their professional Designer and Concept Natasha Mehra (ITSA), experiences. Call it “practitioner thought leadership.” Aurnob Godinho (ITSA) CIO Straight Talk has since grown into a program that includes a LinkedIn community, a webinar series, Editorial Advisory Board Sandeep Kishore, Vittal in-person events, a Twitter feed, and a YouTube channel. Devarajan, Rajat Agarwal, Krishnan Chatterjee, Apurva Last November, the concept of practitioner thought NOT SEEING Chamaria, Anirban Sanyal leadership was validated when CIO Straight Talk received an ITSMA Diamond Award recognizing the Printing Lustra Print Process Pvt. Ltd., New Delhi global IT industry’s top thought leadership initiative. The success of CIO Straight Talk has led to requests IS BELIEVING Acknowledgements from CTOs that we develop a similar platform for those in The “next big thing” of 2014 is the Internet of Things, or IoT. The network will the product engineering community. The publication you ultimately connect every point of human intelligence on the planet, from our Anil Dhar, Anshul Verma, Apoorv Iyer, Harmeet S are reading is our response. brains to the bits of software code we put in countless other animate and Chauhan, Nitin Naveen, Partha Marella, Rahul Mantri, Like CIO Straight Talk, the magazine will feature inanimate things. Catch the new ﬁlm on "The Internet of Experiences.” Samaresh Swaro, Siba Satapathy, Surajit Dutta, Tarun experience-based insights of practitioners. In this issue, Punhani, Thomas Kenyon, Udaya Shankar you’ll see “Straight Talking” articles by product engineering executives from Baxter Medical Products, Contact Us Cisco Systems, Rockwell Collins, Intel, Western Union, and Xerox. We think you’ll find that what they have to For information on reprinting articles and all other say about their experiences is both interesting and useful. correspondence, please contact: Rajat Agarwal Of course, practitioners don’t have a monopoly on good HCL Technologies ideas. In the first of a series of “Big Thinking” interviews C 49, Sector- 57 with leading technology commentators, we hear from Noida – 201301, Uttar Pradesh Tim Brown, CEO and President of design shop IDEO, India who talks about how “design thinking” can improve the [email protected] products and services of the Internet of Things. CTO Straight Talk is a periodical published by HCL I’m tremendously excited about this inaugural issue of Technologies (HCLT) meant for its existing and prospective CTO Straight Talk. I hope as you read the magazine – or Engineering and R&D Services clients for information engage in other aspects of the CTO Straight Talk purposes. The information contained in the publication platform, including a newly created LinkedIn group – contains general views based on the experiences of technology practitioners and subject matter experts within and outside of you’ll find reason to share my excitement. HCLT, expressed by them in their individual capacity and in no event shall HCLT (including its affiliates and group companies) be liable for any claim, damages or any other liability arising out of or resulting from this publication. You are advised to seek professional advice before making any decision that may affect your business. Paul Hemp All contents are copyright © 2014 by HCL Technologies Ltd. Editor-in-Chief All rights reserved. Excerpts may be reprinted with attribution CTO Straight Talk / CIO Straight Talk to HCL Technologies. Watch the ﬁlm computation halves in that time span. If a other connected devices to convert geospatial The Possibilities MacBook Air had a 1992 energy efficiency, it inputs into tactile information for its visually would completely drain its battery in a mere challenged user, thereby creating an Are Limitless 1.5 seconds. immersive, all-encompassing experience. Koomey’s Law means that the energy The ability of IoT devices to interact with requirements for computation in embedded each other and analyze real-time information The Internet of Things, or IoT, represents a devices is shrinking to the point that to take intuitive action lends itself to a major departure in the history of the Internet. harvesting the required energy from ambient plethora of possibilities across consumer and No longer limited to connecting virtual sources should suffice to power the industrial scenarios. applications on computing devices, the computation necessary for many applications. One development facilitated by the IoT that Internet has begun to power billions of The third principle is Metcalfe’s law, which particularly fascinates me is the building of everyday devices in the physical world, from deals with the impact of the network. smart cities. The World Health Organization parking meters to home thermostats to Formulated by Ethernet inventor Bob predicts that in 2050, 70% of the world’s biosensors. In trying to grasp why there’s been Metcalfe, it states that the value of a network population will reside in cities. This creates an this explosion in the number of digitally increases exponentially to the number of its urgent demand for sustainable approaches to connected objects, I keep returning to three nodes. This is the foundational law on which transportation, sewage, electricity, water, and axioms of the digital age. many of the social networking platforms are building architecture. Kevin Ashton, who The first is Moore’s Law, which is familiar to based: The value of an additional user does coined the term Internet of Things, talks anyone following the technology sector. not increase the value on a linear scale but about how 40% of indoor water Described by Gordon Moore in 1965, it posits rather multiplies the number of connections, consumption is actually a waste. If the that the number of transistors on an and thus the value, for all users. information about it could be monitored integrated circuit doubles every 18 months. Think about it in the context of the Internet and acted on, there could be huge savings in As a result, more computation can be put of Things: The number of connected sensors per capita water consumption. into the same package and the price per unit was just 10 million in 2007, rose to 3.5 By involving citizens in smart connected of computation continues to go down billion in 2010, and is expected to reach 1 systems, governments can and will harness dramatically. The price of an accelerometer trillion by 2020. real-time information in densely populated will decrease from $2 in 2005 to 40 cents in Moore’s and Koomey’s laws make areas to create more efficient traffic 2015, and a gyroscope that cost $1.80 in 2010 embedding chips into almost everything both management, lighting systems, waste will cost only 90 cents in 2015. economically viable and technically feasible. recycling, and other government services. Today, a computer the size of a grain of salt The chips get smaller and cheaper, and their This will lead to an environment where we can (1x1x1 mm) includes a solar cell, a thin-film energy footprint decreases dramatically. But start building cities that are sustainable, battery, memory, a pressure sensor, and a it’s Metcalfe’s Law that implies a strong inclusive, and ultimately smart. wireless radio and antenna. Similarly, incentive to actually pull that off, because the Finally, a word of caution: While the IoT cameras the size of a grain of salt now have more nodes we connect to the network, the can enhance our quality of life, it also provides 250x250–pixel resolution. Sensors the size of more valuable the network becomes, and the more opportunities for antisocial elements to a speck of dust (0.05x0.005 mm) can detect more value we can derive from it. invade our privacy. Hence, IoT-based systems and communicate temperature, pressure, and The convergence of connected devices with have to be extremely robust and designed with movement. In the future, things connected applications and services allows us to stringent standards of security. to the Internet may be hard for the human eye constantly monitor the device environment, The possibilities are limitless. I’m very to see. A corollary of Moore’s Law is Koomey’s analyze the information, and take appropriate confident that future generations will enjoy Law, which posits that the energy efficiency of actions, all in near real time, to ensure a experiences that are currently unimaginable-all computation doubles roughly every one and seamless and intuitive consumer experience. made possible by the Internet of Things, or as a half years. That means, in essence, that the For example, a “smart walking stick” can we in HCL call it, the Internet of Experiences. energy required for the same amount of sense its environment and converse with

GH Rao President, Engineering and R&D Services, HCL Technologies CTO Straight Talk | 02 HOME SECURITY // 8:00PM

Welcome back, Sarah! Your bath is ready and can I heat up your food? SARAH // 8:00PM Experiences Oh...that would be perfect. You won’t believe the day I had. The Internet of Things

LIGHT // 8:01PM Success in our evolving interconnected world is all about Don’t worry, we’ll brighten things up! Cue the music! discovering the design and data secrets that delight both people and enterprises and keep them asking for more.

SARAH // 8:01PM

Ah... nothing like a little Kenny G. No doubt about it: The “next big thing” of much technology recedes to the background HOME SECURITY // 8:01PM 2014 is the Internet of Things, or IoT. and on the value provided by relevant data Forty-five years in the making, the IoT has and its timely analysis. Welcome to the finally arrived, solidifying its place in the Internet of Experiences. And..there’s cake in the fridge. public consciousness. This network will ultimately connect every point of human What Just Happened? intelligence on the planet, from our brains to SARAH // 8:02PM the bits of software code we put in shoes, TVs, The IoT has been the star of the show at the tablets, thermostats, cars, traffic lights, three big tech shows of the year so far—CES What?! How? supermarket shelves, hospital beds, shipping (Consumer Electronics Show), in Las Vegas; containers, and gas turbines, and that we put World Mobile Congress, in Barcelona; and on cows, dogs, ourselves, and countless other CeBIT, in Hanover, Germany. Jointly opening animate and inanimate things. the CeBIT technology trade fair in March with HOME SECURITY // 8:02PM But all of these connections are only a German Chancellor Angela Merkel, British means to an end, a technology in the service of Prime Minister David Cameron pledged something much bigger: creating hundreds of millions of pounds for projects Your mom swung by earlier and I let her in! phenomenal experiences for consumers and that increase Internet speeds and develop new SARAH // 8:02PM workers, experiences that move us to embrace IoT applications. “We need to change the and adopt new ways of improving our work Internet of Things from a slogan to reality,” activities and life outside of work. Success he said. You guys!!! This day just did the best 180 ever! in our inter connected world depends on how In fact, the IoT has been a reality for many

CTO Straight Talk | 04

overwhelmed but they can use it to improve Separating the Signal from the Noise Internet worldwide will grow to 152 million in their lives.” 2020, up from 23 million today, according to The collection of all the relevant data means These principles apply not only to consumers, IHS Automotive. That will be a small slice of also tapping into other sources of information but also to enterprises. The Internet of Things the embedded systems market that IDC says and not limiting it to a single “thing” or a promises to improve the internal operations will generate 4.4 trillion gigabytes of data single user. Hal Varian provides an example of enterprises everywhere, cutting waste and worldwide in 2020. from his home state of California, which is improving productivity in numerous Staying afloat in all this data becomes even suffering a severe drought. “Yet I still see lawn activities, from inventory management to more difficult if you attempt to increase sprinkler systems running while it is raining,” supply chain logistics to customer relations. relevance and value by integrating data from he says. “Certainly sprinkler systems should Just as with consumers, however, enterprises different sources — a task that’s particularly be smart enough to check the weather forecast will not benefit from the true potential of challenging for businesses. Says Cavaretta: and current conditions before turning on the increased connectivity if their workers are “As you take more and more data sets and water!” Or, as Aziza, the CMO and overwhelmed by data. If the data collected mash them together, you find that the value of self-described Quantified Self geek, says: “We and transmitted by the Internet of Things is the data can go up quite significantly. But it’s not relevant, if it is not provided in a timely a huge perennial challenge to look across fashion, if the analysis does not suggest ways different and disparate data sets. Big data to improve a work activity or process, then technologies such as Hadoop, however, allow enterprises will not benefit from the Internet you to put everything in one large repository.” of Experiences. If employees, managers, and And there’s value to be found in data from senior executives in enterprises big and small, outside the enterprise and its ecosystem: “One private and public, don’t have positive data source that is really important is experiences with this abundance of data, they government, and more generally, the open won’t take advantage of it. data movement. There’s a lot of value here,” Mike Cavaretta, the Technical Leader for says Cavaretta. Predictive Analytics and Data Mining at Ford Data merging and mashing, while Research and Innovation Center, highlights increasing the value of the analysis, raise this importance of separating the signal from another issue: My data does not always talk to the noise: “I don’t think the problem is the your data. Yes, they both consist of ones and storage of the data. It’s ingesting the data, the zeros, but they are formatted differently and work for the data today; instead, the data analysis of the data, and the understanding of may be using different codes, names, and needs to work for us.” the data. Machines don’t drown in data; labels to describe the same thing. For the data to work for us, we need to people drown in data.” Semantics in general and the Semantic follow a few Internet of Experiences Cavaretta is in a unique position to assess Web-a framework of common data principles: The data should be collected in the impact of the current data deluge, and of formats that allows data to be shared and non-intrusive ways; it should be collected the coming data tsunami unleashed by the reused across Web pages and applications from all relevant sources; the user should be Internet of Things, on both consumers and -in particular promise to overcome this involved in deciding what data is collected enterprises. Ford’s Fusion Energi car model difficulty. “I would like to see these and how it is analyzed; the analysis should be already generates about 25 gigabytes of data technologies take off,” says Cavaretta. provided to the user (or another “thing”) every hour, which is used to improve fuel “Google Trends is a great example of how in a timely fashion; and the analysis efficiency and reduce emissions. But Ford’s semantic technology can rationalize should provide value (e.g., benchmarks, research labs are experimenting with vehicles things across different domains.” recommendations, predictions), delighting that produce 250 gigabytes of data per hour. Steven Gustafson, the Manager of the users and encouraging further use. And the number of cars connected to the Knowledge Discovery Lab at GE Global

CTO Straight Talk | 06

network is too small, its cost exceeds its value; new entrants to develop technology for but if a network gets large enough to achieve technology’s sake. The number of possible Internet addresses the critical mass, then the sky’s the limit.” new Internet IPv6 protocol will be able to provide While the network effect has recently been The Principle of Great Expectations discussed mostly in terms of numbers of users (as reflected in the stock valuations of large The IoT has the potential to touch every 340,282,920,938,463,463, social networks such as Facebook, Twitter, aspect of our lives, from our bodies to our Instagram, and WhatsApp), the IoT brings us communities to our places of work to a back to the notion of compatibly fully connected world, improving our 374,607,431,768,211,456 communicating devices. Says Metcalfe: well-being, raising the quality of life, “Billions of embedded microcontrollers are increasing productivity, and fostering

CTO Straight Talk | 08

Research, established his lab several years ago down what they did to return the engine to language, thus creating data that can be and the role of data and analysis. They when he realized what semantics can do: service turning textual unstructured data shared by all other things on the Internet. The should follow the Principle of Great capture, retain, and share the domain into knowledge, eliminating uncertainty use of web standards, says Gustafson, will Experiences: The more inconspicuous and knowledge of GE’s engineers. “As data geeks, and providing enhanced understanding of “enable complex assets and data to work more data-centric the technology, the faster it will one of the things we first spend time on is an asset’s health.” This now-accessible easily with people.” In the Internet of spread among a growing network of delighted talking to engineers, understanding the data knowledge about prior maintenance allows Experiences, my data will talk to your data, no users. If we’re able to get technology to and how it gets processed. I felt that with the GE’s services teams to deliver better matter what you are. recede into the background and analyze the advent of Semantic Web there is a better, operational performance. onslaught of data in a way that reveals its more efficient way we can achieve things like “We will start moving this technology The Principle of Great Experiences significance, the Internet of Things will self-describing data, and that would make closer and closer to the asset,” says Gustafson. become a true Internet of Experience. finding patterns so much easier. We found a “When the data that is coming off of engines In Forrester’s latest global survey of way to allow domain experts to capture is already semantically tagged, we can start executives, 74% said their company has a their own knowledge in semantics and give connecting things to give them more digital strategy. Still, 93% believed “digital” them access to things like reasoning and autonomy, to schedule when maintenance will disrupt their business in the next 12 tools for data integration by developing occurs, for example.” months. Most important, only 15% believed what we call semantic application design Semantically tagged data could give their firms have the skills and resources to language, or SADL.” enterprises a much more granular view of execute their digital strategies. Using an example from aviation, where GE their operations, allowing them to move from With the emergence of the Internet of estimates that servicing aircraft engines tracking assets to servicing assets to Things, “digital” is taking on new dimensions, involves 205 million man-hours per year at a managing assets-even to giving assets more increasing the number of people connected to cost of $10 billion, Gustafson explains the autonomy to manage themselves. Web the Internet, as well as the even faster- utility of semantics. “We want to proactively standards provide a layer that masks the growing number of connected things. manage engines service to prevent idiosyncrasies of specific devices, To take advantage of the opportunities and unexpected repairs,” he says. “We use especially those that have been developed and overcome the challenges presented by the semantic technology to extract data from installed over the past 20 or 30 years and Internet of Things, product and service maintenance records-where somebody wrote communicate in their own specialized developers must re-evaluate product design Do We Really Need So Many Watches? Internet of Things: Events Aziza says, “you don’t get it. That’s how we are overwhelmed but they can use it to improve Separating the Signal from the Noise Internet worldwide will grow to 152 million in going to build more and more devices that are their lives.” 2020, up from 23 million today, according to Here’s a sample of IoT-related events around the Jun 24-26 After seeing hundreds of fitness devices on going to stay in more and more drawers and The collection of all the relevant data means These principles apply not only to consumers, IHS Automotive. That will be a small slice of world, from May to December 2014, some new display at the recent CES, Donna Hoffman provide value to nobody.” also tapping into other sources of information but also to enterprises. The Internet of Things the embedded systems market that IDC says and some that have contributed to its evolution asks: “How many watches do you need? Jakarta, Indonesia Janus Bryzek, the sensors guru, offers a and not limiting it to a single “thing” or a promises to improve the internal operations will generate 4.4 trillion gigabytes of data over the past decade. Aug 27-29 M2M Business more sanguine view, given recent progress single user. Hal Varian provides an example worldwide in 2020. Clearly consumers can’t use all of these Platform Asia of enterprises everywhere, cutting waste and different things and integrate them into their in how devices interact with their users. from his home state of California, which is improving productivity in numerous Staying afloat in all this data becomes even lives.” Hoffman is the Louis Rosenfeld May 8-9 Barcelona, Spain “User interfaces have advanced suffering a severe drought. “Yet I still see lawn activities, from inventory management to more difficult if you attempt to increase Distinguished Scholar and Professor of Sep 1-2 The 2nd International dramatically during the mobile explosion,” sprinkler systems running while it is raining,” supply chain logistics to customer relations. relevance and value by integrating data from Conference on Future Marketing at the George Washington London, UK Internet of Things he says. “More and more sensors are he says. “Certainly sprinkler systems should Just as with consumers, however, enterprises different sources — a task that’s particularly and Cloud University School of Business, the co-director Smart Grid World May 14-15 Saint Etienne, France embedded in mobile devices, and this be smart enough to check the weather forecast will not benefit from the true potential of challenging for businesses. Says Cavaretta: of the Center for the Connected Consumer, International should make all IoT devices more intuitive.” and current conditions before turning on the increased connectivity if their workers are “As you take more and more data sets and Workshop on Web and a longtime observer of consumer There is no question that significant water!” Or, as Aziza, the CMO and overwhelmed by data. If the data collected mash them together, you find that the value of Milwaukee, WI Intelligence and Sep 8-10 behavior in the digital world. She adds: “The May 19-20 Internet of Things Smart Sensing advances have been made recently in how self-described Quantified Self geek, says: “We and transmitted by the Internet of Things is the data can go up quite significantly. But it’s churn rate on fitness devices is about 60%. North America users and devices interact, and, more not relevant, if it is not provided in a timely a huge perennial challenge to look across People buy these things, use them for less Palm Beach Gardens, FL generally, in how products are designed. After fashion, if the analysis does not suggest ways different and disparate data sets. Big data Milano, Italy Sep 13-17 Smart Water Summit than three months, and then never wear 21 years of failed attempts, the iPad has finally to improve a work activity or process, then technologies such as Hadoop, however, allow M2M Plus and May 21-22 them again.” M2M Forum succeeded in providing the right combination enterprises will not benefit from the Internet you to put everything in one large repository.” Seattle, WA of weight, size, mode of interaction, and And there’s value to be found in data from “As far as I’m concerned, this is a very Sep 15-16 of Experiences. If employees, managers, and International immature market,” says Bruno Aziza, the San Francisco, CA useful and engaging applications to create a senior executives in enterprises big and small, outside the enterprise and its ecosystem: “One Jun 3-4 O’Reilly Solid Symposium on Chief Marketing Officer at machine-learning Wearable Computers sizable market for tablets. But will this be private and public, don’t have positive data source that is really important is start-up Alpine Data Labs. An early blogger Munich, Germany enough to make the Internet of Things experiences with this abundance of data, they government, and more generally, the open TSensors Summit and speaker in the Quantified Self movement, Austin, TX delighting and engaging to all users of all won’t take advantage of it. data movement. There’s a lot of value here,” NFC Solutions Jun 4-5 Sep 16-18 Aziza has also observed the limited appeal of Summit things, an Internet of Experiences? Mike Cavaretta, the Technical Leader for says Cavaretta. fitness devices. “Unless you are a Quantified Or would we need a new conception of what Predictive Analytics and Data Mining at Ford Data merging and mashing, while Self geek, you are going to stop using these Detroit, MI Phoenix, AZ Sep 16-18 constitutes great product design? Research and Innovation Center, highlights increasing the value of the analysis, raise devices,” he says. Adds Hoffman: “Most Jun 8-11 Telematics Detroit Rural Smart Grid this importance of separating the signal from another issue: My data does not always talk to Summit people are not interested in the Quantified Design and Data the noise: “I don’t think the problem is the your data. Yes, they both consist of ones and Delhi, India Self movement; they don’t want to track every storage of the data. It’s ingesting the data, the zeros, but they are formatted differently and Dubai, UAE 4th India Smart moment of their existence and quantify it.” Connected Cities Jun 17-18 Sep 22-24 Utilities Week Two of the most successful tech innovators of work for the data today; instead, the data analysis of the data, and the understanding of may be using different codes, names, and Both Aziza and Hoffman see the design of Middle East Forum this century, Apple and Google, have often needs to work for us.” the data. Machines don’t drown in data; labels to describe the same thing. been portrayed as taking different paths to For the data to work for us, we need to people drown in data.” Semantics in general and the Semantic the “things” in the Internet of Things, Palo Alto, CA Marseille, France Oct 6-8 especially their ease of use, as the key to Jun 22-24 Internet of Things NFC World Congress launching products that users find appealing, follow a few Internet of Experiences Cavaretta is in a unique position to assess Web-a framework of common data moving beyond the “tragically pathetic” stage. World easy to use, and even addictive. Apple is principles: The data should be collected in the impact of the current data deluge, and of formats that allows data to be shared and Aziza talks about a product’s “center of obsessed with design; Google with data. Great non-intrusive ways; it should be collected the coming data tsunami unleashed by the reused across Web pages and applications Phoenix, AZ Cambridge, MA design,” the idea that a specific technology is Nov 12-13 aesthetics and “good taste” have been the from all relevant sources; the user should be Internet of Things, on both consumers and -in particular promise to overcome this Municipal Smart Jun 24-25 4th Annual International particularly relevant for a set of defined use Grid Summit Conference on the foundation of Apple’s philosophy and involved in deciding what data is collected enterprises. Ford’s Fusion Energi car model difficulty. “I would like to see these Internet of Things cases. Product developers ignore this business strategy since the company’s and how it is analyzed; the analysis should be already generates about 25 gigabytes of data technologies take off,” says Cavaretta. La Jolla, CA when they think that their product is going to Amsterdam, Netherlands inception. Measurement, analysis, and provided to the user (or another “thing”) every hour, which is used to improve fuel “Google Trends is a great example of how Jun 24-26 Connected Cars14 TSensors Summit make an existing product obsolete, even if it Dec 8-9 data-driven decisions have guided Google in a timely fashion; and the analysis efficiency and reduce emissions. But Ford’s semantic technology can rationalize addresses a completely different set of use since its founding. should provide value (e.g., benchmarks, research labs are experimenting with vehicles things across different domains.” cases. “If you think that people will do on Johannesburg, These two philosophies are now converging recommendations, predictions), delighting that produce 250 gigabytes of data per hour. Steven Gustafson, the Manager of the South Africa Tokyo, Japan their watch what they do on their phone,” in the evolution of the Internet of Things. If users and encouraging further use. And the number of cars connected to the Knowledge Discovery Lab at GE Global M2M Africa Summit TSensors Summit

CTO Straight Talk | 10

Research, established his lab several years ago down what they did to return the engine to language, thus creating data that can be and the role of data and analysis. They when he realized what semantics can do: service turning textual unstructured data shared by all other things on the Internet. The should follow the Principle of Great capture, retain, and share the domain into knowledge, eliminating uncertainty use of web standards, says Gustafson, will Experiences: The more inconspicuous and knowledge of GE’s engineers. “As data geeks, and providing enhanced understanding of “enable complex assets and data to work more data-centric the technology, the faster it will one of the things we first spend time on is an asset’s health.” This now-accessible easily with people.” In the Internet of spread among a growing network of delighted talking to engineers, understanding the data knowledge about prior maintenance allows Experiences, my data will talk to your data, no users. If we’re able to get technology to and how it gets processed. I felt that with the GE’s services teams to deliver better matter what you are. recede into the background and analyze the advent of Semantic Web there is a better, operational performance. onslaught of data in a way that reveals its more efficient way we can achieve things like “We will start moving this technology The Principle of Great Experiences significance, the Internet of Things will self-describing data, and that would make closer and closer to the asset,” says Gustafson. become a true Internet of Experience. finding patterns so much easier. We found a “When the data that is coming off of engines In Forrester’s latest global survey of way to allow domain experts to capture is already semantically tagged, we can start executives, 74% said their company has a their own knowledge in semantics and give connecting things to give them more digital strategy. Still, 93% believed “digital” them access to things like reasoning and autonomy, to schedule when maintenance will disrupt their business in the next 12 tools for data integration by developing occurs, for example.” months. Most important, only 15% believed what we call semantic application design Semantically tagged data could give their firms have the skills and resources to language, or SADL.” enterprises a much more granular view of execute their digital strategies. Using an example from aviation, where GE their operations, allowing them to move from With the emergence of the Internet of estimates that servicing aircraft engines tracking assets to servicing assets to Things, “digital” is taking on new dimensions, involves 205 million man-hours per year at a managing assets-even to giving assets more increasing the number of people connected to cost of $10 billion, Gustafson explains the autonomy to manage themselves. Web the Internet, as well as the even faster- utility of semantics. “We want to proactively standards provide a layer that masks the growing number of connected things. manage engines service to prevent idiosyncrasies of specific devices, To take advantage of the opportunities and unexpected repairs,” he says. “We use especially those that have been developed and overcome the challenges presented by the semantic technology to extract data from installed over the past 20 or 30 years and Internet of Things, product and service maintenance records-where somebody wrote communicate in their own specialized developers must re-evaluate product design the Internet of Things is to provide real value Weiser went on to explain what was wrong Internet of Things: By the Numbers overwhelmed but they can use it to improve Separating the Signal from the Noise Internet worldwide will grow to 152 million in to users, design and data must be redefined with the personal computing revolution their lives.” 2020, up from 23 million today, according to and merged into a single philosophy for brought on by Apple and others: “The arcane The collection of all the relevant data means These principles apply not only to consumers, IHS Automotive. That will be a small slice of making products exciting and delightful aura that surrounds personal computers is Growth in IoT revenue opportunity Growth in the data created also tapping into other sources of information but also to enterprises. The Internet of Things the embedded systems market that IDC says to use. not just a ‘user interface’ problem. My worldwide by embedded systems and not limiting it to a single “thing” or a promises to improve the internal operations will generate 4.4 trillion gigabytes of data Great experiences will be provided by colleague and I at the Xerox Palo Alto single user. Hal Varian provides an example of enterprises everywhere, cutting waste and worldwide in 2020. products that are designed to be almost Research Center think that the idea of a 2012 $4.8 trillion from his home state of California, which is improving productivity in numerous Staying afloat in all this data becomes even invisible and revolve around the most useful ‘personal’ computer itself is misplaced and 2013 2% 2020 10% suffering a severe drought. “Yet I still see lawn activities, from inventory management to more difficult if you attempt to increase and engaging data for their users. that the visions of laptop machines, 2020 $8.9 trillion sprinkler systems running while it is raining,” supply chain logistics to customer relations. relevance and value by integrating data from he says. “Certainly sprinkler systems should Just as with consumers, however, enterprises different sources — a task that’s particularly be smart enough to check the weather forecast will not benefit from the true potential of challenging for businesses. Says Cavaretta: Growth in worldwide installed Growth in connected things and current conditions before turning on the increased connectivity if their workers are “As you take more and more data sets and water!” Or, as Aziza, the CMO and overwhelmed by data. If the data collected mash them together, you find that the value of base of smart meters 2013 14 billion objects Some of the work being done self-described Quantified Self geek, says: “We and transmitted by the Internet of Things is the data can go up quite significantly. But it’s around the Internet of Things . . .[is]. . .tragically pathetic. 2013 $313 million 2020 not relevant, if it is not provided in a timely a huge perennial challenge to look across 32 billion objects out fashion, if the analysis does not suggest ways different and disparate data sets. Big data 2020 $1.1 billion of 212 billion connectable objects to improve a work activity or process, then technologies such as Hadoop, however, allow enterprises will not benefit from the Internet you to put everything in one large repository.” Nicholas Negroponte of Experiences. If employees, managers, and And there’s value to be found in data from Cofounder, MIT Media Lab Growth in revenue from Growth in number of cars connected senior executives in enterprises big and small, outside the enterprise and its ecosystem: “One maintenance analytics to the Internet worldwide private and public, don’t have positive data source that is really important is experiences with this abundance of data, they government, and more generally, the open 2014 $9.1 billion 2013 23 million won’t take advantage of it. data movement. There’s a lot of value here,” The Disappearing Internet dynabooks and ‘knowledge navigators’ is only Mike Cavaretta, the Technical Leader for says Cavaretta. a transitional step toward achieving the real 2019 $24.7 billion 2020 152 million Predictive Analytics and Data Mining at Ford Data merging and mashing, while Bob Metcalfe’s hunch about what will make potential of information technology. Such Research and Innovation Center, highlights increasing the value of the analysis, raise the products of the IoT exciting to use is “not machines cannot truly make computing an Percentage of 2019 revenue this importance of separating the signal from another issue: My data does not always talk to so much good UX [user experience], but no integral, invisible part of people’s lives.” generated by predictive and the noise: “I don’t think the problem is the your data. Yes, they both consist of ones and UX at all. The IoT needs to disappear into the Weiser understood that, conceptually, the prescriptive maintenance Growth in the machine-to-machine storage of the data. It’s ingesting the data, the zeros, but they are formatted differently and woodwork, even faster than Ethernet has.” PC was simply a mainframe on a desk, albeit (M2M) market work for the data today; instead, the data analysis of the data, and the understanding of may be using different codes, names, and The idea that the best technology disappears with easier-to-use applications. He misjudged, needs to work for us.” the data. Machines don’t drown in data; labels to describe the same thing. into the woodwork may have originated at however, the powerful and long-lasting 2012 $300 billion For the data to work for us, we need to people drown in data.” Semantics in general and the Semantic Xerox PARC, where Metcalfe invented the impact that this new productivity and 2022 follow a few Internet of Experiences Cavaretta is in a unique position to assess Web-a framework of common data Ethernet. In 1991, Mark Weiser, then head of life-enhancing tool would exert on millions of $1.3 trillion principles: The data should be collected in the impact of the current data deluge, and of formats that allows data to be shared and users worldwide. Weiser wrote: “My 60% reused across Web pages and applications the Computer Science Lab at Xerox PARC, non-intrusive ways; it should be collected the coming data tsunami unleashed by the published an article in Scientific American colleagues and I at PARC believe that what from all relevant sources; the user should be Internet of Things, on both consumers and -in particular promise to overcome this titled “The Computer for the 21st Century.” we call ubiquitous computing will gradually Growth in the intelligent Growth in number of wearable involved in deciding what data is collected enterprises. Ford’s Fusion Energi car model difficulty. “I would like to see these The article opens with what should be the emerge as the dominant mode of computer buildings market ﬁtness bands and how it is analyzed; the analysis should be already generates about 25 gigabytes of data technologies take off,” says Cavaretta. rallying cry for the IoT today: “The most access over the next 20 years. [B]y making provided to the user (or another “thing”) every hour, which is used to improve fuel “Google Trends is a great example of how profound technologies are those that everything faster and easier to do, with less 2012 $69 billion 2014 17 million in a timely fashion; and the analysis efficiency and reduce emissions. But Ford’s semantic technology can rationalize strain and fewer mental gymnastics, it will things across different domains.” disappear. They weave themselves into the 2022 2017 should provide value (e.g., benchmarks, research labs are experimenting with vehicles fabric of everyday life until they are transform what is apparently possible. $297 billion 45 million recommendations, predictions), delighting that produce 250 gigabytes of data per hour. Steven Gustafson, the Manager of the indistinguishable from it.” [M]achines that fit the human environment users and encouraging further use. And the number of cars connected to the Knowledge Discovery Lab at GE Global

Sources: IDC, Navigant Research, Machina Research, Morgan Stanley, Catapult, ABI Research, Forrester Research, The Economist, Juniper Research, Canalys, IHS Automotive.

CTO Straight Talk | 12

Research, established his lab several years ago down what they did to return the engine to language, thus creating data that can be and the role of data and analysis. They when he realized what semantics can do: service turning textual unstructured data shared by all other things on the Internet. The should follow the Principle of Great capture, retain, and share the domain into knowledge, eliminating uncertainty use of web standards, says Gustafson, will Experiences: The more inconspicuous and knowledge of GE’s engineers. “As data geeks, and providing enhanced understanding of “enable complex assets and data to work more data-centric the technology, the faster it will one of the things we first spend time on is an asset’s health.” This now-accessible easily with people.” In the Internet of spread among a growing network of delighted talking to engineers, understanding the data knowledge about prior maintenance allows Experiences, my data will talk to your data, no users. If we’re able to get technology to and how it gets processed. I felt that with the GE’s services teams to deliver better matter what you are. recede into the background and analyze the advent of Semantic Web there is a better, operational performance. onslaught of data in a way that reveals its more efficient way we can achieve things like “We will start moving this technology The Principle of Great Experiences significance, the Internet of Things will self-describing data, and that would make closer and closer to the asset,” says Gustafson. become a true Internet of Experience. finding patterns so much easier. We found a “When the data that is coming off of engines In Forrester’s latest global survey of way to allow domain experts to capture is already semantically tagged, we can start executives, 74% said their company has a their own knowledge in semantics and give connecting things to give them more digital strategy. Still, 93% believed “digital” them access to things like reasoning and autonomy, to schedule when maintenance will disrupt their business in the next 12 tools for data integration by developing occurs, for example.” months. Most important, only 15% believed what we call semantic application design Semantically tagged data could give their firms have the skills and resources to language, or SADL.” enterprises a much more granular view of execute their digital strategies. Using an example from aviation, where GE their operations, allowing them to move from With the emergence of the Internet of estimates that servicing aircraft engines tracking assets to servicing assets to Things, “digital” is taking on new dimensions, involves 205 million man-hours per year at a managing assets-even to giving assets more increasing the number of people connected to cost of $10 billion, Gustafson explains the autonomy to manage themselves. Web the Internet, as well as the even faster- utility of semantics. “We want to proactively standards provide a layer that masks the growing number of connected things. manage engines service to prevent idiosyncrasies of specific devices, To take advantage of the opportunities and unexpected repairs,” he says. “We use especially those that have been developed and overcome the challenges presented by the semantic technology to extract data from installed over the past 20 or 30 years and Internet of Things, product and service maintenance records-where somebody wrote communicate in their own specialized developers must re-evaluate product design instead of forcing humans to enter theirs will overwhelmed but they can use it to improve Separating the Signal from the Noise Internet worldwide will grow to 152 million in make using a computer as refreshing as taking their lives.” 2020, up from 23 million today, according to a walk in the woods.” The collection of all the relevant data means These principles apply not only to consumers, IHS Automotive. That will be a small slice of More than 20 years after ubiquitous also tapping into other sources of information but also to enterprises. The Internet of Things the embedded systems market that IDC says computing was predicted to become the and not limiting it to a single “thing” or a promises to improve the internal operations will generate 4.4 trillion gigabytes of data dominant mode of computer access, isn’t it single user. Hal Varian provides an example of enterprises everywhere, cutting waste and worldwide in 2020. time for product design for the Internet of from his home state of California, which is improving productivity in numerous Staying afloat in all this data becomes even Things to focus on making things disappear? suffering a severe drought. “Yet I still see lawn activities, from inventory management to more difficult if you attempt to increase sprinkler systems running while it is raining,” supply chain logistics to customer relations. relevance and value by integrating data from Can We Get the Data to Work for Us? he says. “Certainly sprinkler systems should Just as with consumers, however, enterprises different sources — a task that’s particularly be smart enough to check the weather forecast will not benefit from the true potential of challenging for businesses. Says Cavaretta: To move from the Internet of Things to the and current conditions before turning on the increased connectivity if their workers are “As you take more and more data sets and Internet of Experiences, products and services water!” Or, as Aziza, the CMO and overwhelmed by data. If the data collected mash them together, you find that the value of should be developed not only with an self-described Quantified Self geek, says: “We and transmitted by the Internet of Things is the data can go up quite significantly. But it’s not relevant, if it is not provided in a timely a huge perennial challenge to look across fashion, if the analysis does not suggest ways different and disparate data sets. Big data to improve a work activity or process, then technologies such as Hadoop, however, allow enterprises will not benefit from the Internet you to put everything in one large repository.” The churn rate on ﬁtness devices is about 60%. of Experiences. If employees, managers, and And there’s value to be found in data from People buy these things, use them for less than three months, senior executives in enterprises big and small, outside the enterprise and its ecosystem: “One and then never wear them again. private and public, don’t have positive data source that is really important is experiences with this abundance of data, they government, and more generally, the open won’t take advantage of it. data movement. There’s a lot of value here,” Mike Cavaretta, the Technical Leader for says Cavaretta. Donna Hoffman Predictive Analytics and Data Mining at Ford Data merging and mashing, while Professor of Marketing, George Washington University School of Research and Innovation Center, highlights increasing the value of the analysis, raise Business, and Co-Director of the Center for the Connected Consumer this importance of separating the signal from another issue: My data does not always talk to the noise: “I don’t think the problem is the your data. Yes, they both consist of ones and storage of the data. It’s ingesting the data, the zeros, but they are formatted differently and emphasis on making technology fade into the work for the data today; instead, the data analysis of the data, and the understanding of may be using different codes, names, and background, but also with data and its needs to work for us.” the data. Machines don’t drown in data; labels to describe the same thing. analysis at their core. The value of the “things” For the data to work for us, we need to people drown in data.” Semantics in general and the Semantic in the Internet of Experiences is measured by follow a few Internet of Experiences Cavaretta is in a unique position to assess Web-a framework of common data how well the data they collect is analyzed and principles: The data should be collected in the impact of the current data deluge, and of formats that allows data to be shared and how quicklyl feedbased on this analysis is non-intrusive ways; it should be collected the coming data tsunami unleashed by the reused across Web pages and applications delivered to the user. The problem with the from all relevant sources; the user should be Internet of Things, on both consumers and -in particular promise to overcome this current crop of wearables is not only the involved in deciding what data is collected enterprises. Ford’s Fusion Energi car model difficulty. “I would like to see these poor design of the user interface but also the and how it is analyzed; the analysis should be already generates about 25 gigabytes of data technologies take off,” says Cavaretta. absence of relevant data and analysis. “For the provided to the user (or another “thing”) every hour, which is used to improve fuel “Google Trends is a great example of how mass market,” says Donna Hoffman, the in a timely fashion; and the analysis efficiency and reduce emissions. But Ford’s semantic technology can rationalize co-director of the Center for the Connected should provide value (e.g., benchmarks, research labs are experimenting with vehicles things across different domains.” Consumer, “you need to think about how to recommendations, predictions), delighting that produce 250 gigabytes of data per hour. Steven Gustafson, the Manager of the get this information to people so they are not users and encouraging further use. And the number of cars connected to the Knowledge Discovery Lab at GE Global

continued on page 17....

CTO Straight Talk | 14

Research, established his lab several years ago down what they did to return the engine to language, thus creating data that can be and the role of data and analysis. They when he realized what semantics can do: service turning textual unstructured data shared by all other things on the Internet. The should follow the Principle of Great capture, retain, and share the domain into knowledge, eliminating uncertainty use of web standards, says Gustafson, will Experiences: The more inconspicuous and knowledge of GE’s engineers. “As data geeks, and providing enhanced understanding of “enable complex assets and data to work more data-centric the technology, the faster it will one of the things we first spend time on is an asset’s health.” This now-accessible easily with people.” In the Internet of spread among a growing network of delighted talking to engineers, understanding the data knowledge about prior maintenance allows Experiences, my data will talk to your data, no users. If we’re able to get technology to and how it gets processed. I felt that with the GE’s services teams to deliver better matter what you are. recede into the background and analyze the advent of Semantic Web there is a better, operational performance. onslaught of data in a way that reveals its more efficient way we can achieve things like “We will start moving this technology The Principle of Great Experiences significance, the Internet of Things will self-describing data, and that would make closer and closer to the asset,” says Gustafson. become a true Internet of Experience. finding patterns so much easier. We found a “When the data that is coming off of engines In Forrester’s latest global survey of way to allow domain experts to capture is already semantically tagged, we can start executives, 74% said their company has a their own knowledge in semantics and give connecting things to give them more digital strategy. Still, 93% believed “digital” them access to things like reasoning and autonomy, to schedule when maintenance will disrupt their business in the next 12 tools for data integration by developing occurs, for example.” months. Most important, only 15% believed what we call semantic application design Semantically tagged data could give their firms have the skills and resources to language, or SADL.” enterprises a much more granular view of execute their digital strategies. Using an example from aviation, where GE their operations, allowing them to move from With the emergence of the Internet of estimates that servicing aircraft engines tracking assets to servicing assets to Things, “digital” is taking on new dimensions, involves 205 million man-hours per year at a managing assets-even to giving assets more increasing the number of people connected to cost of $10 billion, Gustafson explains the autonomy to manage themselves. Web the Internet, as well as the even faster- utility of semantics. “We want to proactively standards provide a layer that masks the growing number of connected things. manage engines service to prevent idiosyncrasies of specific devices, To take advantage of the opportunities and unexpected repairs,” he says. “We use especially those that have been developed and overcome the challenges presented by the semantic technology to extract data from installed over the past 20 or 30 years and Internet of Things, product and service maintenance records-where somebody wrote communicate in their own specialized developers must re-evaluate product design Internet of Things: An Intellectual History 1999 June 2002 September 2004 The Internet of Things was born with the Internet, a network that initially connected “things” in the form of mini-computers The Auto-ID (for Automatic Glover T. Ferguson, publishes “Have G. Lawton publishes “Machine - to - at research institutions. There have been a number of other terms associated with the concept of connecting everything to Identification) Center is established Your Objects Call My Objects” in machine technology gears up for everything, such as machine-to-machine (M2M), Radio Frequency Identification (RFID), context-aware computing, at MIT. Professors David Brock and Harvard Business Review. “It’s no growth” in Computer. Lawton writes: wearables, ubiquitous computing, and the Web of Things. Here are a few signposts in the evolution of the mashing of the Sanjay Sarma, co-directors of the exaggeration to say that a tiny tag “There are many more machines - physical with the digital. center, have researched the idea of may one day transform your own defined as things with mechanical, tracking all products by equipping business. And that day may not be electrical, or electronic properties - October 29, 1969 Early 1980s September 1994 them with low-cost RFID tags. very far off.” in the world than people. And a The first message is sent over the Members of the Carnegie Mellon The term “context-aware” is first Where previously tags were a growing number of machines are ARPANET, the predecessor of the Computer Science department used by B.N. Schilit and M.M. mobile database that carried networked… M2M is based on the Internet, between a network node at install micro-switches in the Coke Theimer in “Disseminating active information about the product or January 2003 idea that a machine has more value UCLA and another one at Stanford vending machine and connect them map information to mobile hosts,” container they were on with them as Bernard Traversat et al. publish when it is networked and that the Research Institute (SRI). The team at to the PDP-10 departmental Network, Vol. 8, Issue 5. they traveled, Sarma and Brock “Project JXTA-C: Enabling a Web of network becomes more valuable as UCLA tries to type “LOG” for computer so they can see on their turned RFID into a networking Things” in HICSS '03 Proceedings of more machines are connected.” “LOGIN.” They get through the first computer terminals how many 1995 technology by linking objects to the the 36th Annual Hawaii International two letters but then the system bottles are present in the machine Siemens sets up a dedicated Internet through the tag. Conference on System Sciences. crashes, making the first message and whether they are cold or not. (In November 2005 department inside its mobile phones They write: “The Web, the collection ever sent between two distant 2010, Coca - Cola introduces The International Telecommunications business unit to develop and launch a of all devices connected to the computers “LO” for “Lo and Behold!” Freestyle, a soda fountain that 1999 Union publishes the 7th in its series GSM data module called “M1,” based Internet, is on the verge of By December 1969, the network grew reports back to Coke headquarters Neil Gershenfeld publishes When of reports on the Internet, titled “The on the Siemens mobile phone S6, for experiencing a massive evolution to four nodes with the addition of the via the Internet every time it mixes Things Start to Think. He writes: Internet of Things.” The report machine-to-machine (M2M) from a Web of Computers to a Web of University of Utah and University of one of its over 100 drinks.) “Invisibility is the missing goal in “looks at the next step in ‘always on’ industrial applications, enabling Things.... The open-source Project California at Santa Barbara - computing ... Beyond seeking to make communications, in which new machines to communicate over JXTA was initiated a year ago to doubling the size of the network in computers ubiquitous, we should try ubiquitous technologies (such as wireless networks. The first M1 specify a standard set of protocols for less than two months. to make them unobtrusive." And "The radio-frequency identification and September 1991 module was used for point-of-sale ad hoc, pervasive, peer-to-peer Xerox PARC’s Mark Weiser publishes real promise of connecting computers computing as a foundation of the sensors) promise a world of (POS) terminals, in vehicle networked and interconnected January 23, 1973 “The Computer in the 21st Century” is to free people, by embedding the upcoming Web of Things.” telematics, remote monitoring, and devices (e.g. fridge, television, Mario Cardullo receives the first in Scientific American, using the means to solve problems in the things the tracking and tracing of vehicle, garage door, etc.) that patent for a passive, read-write RFID terms “ubiquitous computing” and around us.” applications. provide relevant content and tag, an idea he came up with in 1969. “embodied virtuality” to describe his October 2004 vision of how “specialized elements Neil Gershenfeld, Raffi Krikorian, information whatever the location of January 1, 2001 of hardware and software, connected December 1995 and Danny Cohen publish “The the user.” June 26, 1974 David Brock, co-director of MIT’s by wires, radio waves, and infrared, MIT’s Nicholas Negroponte and Neil Internet of Things” in Scientific A Universal Product Code (UPC) label Auto-ID Center, publishes a white will be so ubiquitous that no one will Gershenfeld publish “Wearable American. They write: “Giving is used to ring up purchases at a paper titled “The Electronic Product June 22, 2009 notice their presence.” Computing” in Wired. They say: “For everyday objects the ability to supermarket for the first time. The Code (EPC): A Naming Scheme for Kevin Ashton publishes “That hardware and software to connect to a data network would first UPC ever scanned is on a Physical Objects.” He writes: “For ‘Internet of Things’ Thing” in RFID comfortably follow you around, they have a range of benefits: making it package of Wrigley’s chewing gum over twenty-five years, the Universal Journal. Ashton writes: “I could be 1993 must merge into softwear… The easier for homeowners to configure (now on display at the Smithsonian’s Product Code (UPC or ‘bar code’) has wrong, but I'm fairly sure the MIT’s Thad Starner starts using a difference in time between loony their lights and switches, reducing National Museum of American helped streamline retail checkout and phrase ‘Internet of Things’ started specially-rigged computer and ideas and shipped products is the cost and complexity of building History), which was purchased at inventory processes…. The life as the title of a presentation I heads-up display as a wearable. shrinking so fast that it's now, oh, construction, assisting with home Marsh Supermarket in Troy, Ohio, emergence of the Internet, the made at Procter & Gamble (P&G) in “Ever since my first month of use… about a week.” health care. Many alternative utilizing NCR scanners. digitalization of information, and the 1999. Linking the new idea of RFID I've been hooked. The device enabled standards currently compete to do globalization of business offer new in P&G's supply chain to the a compelling new lifestyle in which I just that--a situation reminiscent of then-red-hot topic of the Internet December 1974 October 13-14, 1997 Carnegie possibilities for product identification felt more powerful, independent, and the early days of the Internet, when was more than just a good way to Vinton Cerf, Yogen Dalal, and Carl Mellon, MIT, and Georgia Tech and tracking. To take advantage of (most important to me) in control of computers and networks came in get executive attention. It summed Sunshine publish Specification of co-host the first IEEE International this network infrastructure, we my time,” Starner recalled years multiple incompatible types.” up an important insight—one that Internet Transmission Control Symposium on Wearable propose a new object identification later. Today, Starner is a Technical 10 years later, after the Internet of Program. It defines the common Computers, in Cambridge, MA. scheme, the Electronic Product Code Lead/Manager on Google's Project Things has become the title of internetwork protocol that allows (EPC), which uniquely identifies Glass and the director of the everything from an article in disparate networks to communicate objects and facilitates tracking Contextual Computing Group at Scientific American to the name of a with each other, and contains the first throughout the product life cycle.” Georgia Institute of Technology. European Union conference, is still use of the term “Internet” as an often misunderstood.” abbreviation for internetworking.

CTO Straight Talk | 16 overwhelmed but they can use it to improve Separating the Signal from the Noise Internet worldwide will grow to 152 million in their lives.” 2020, up from 23 million today, according to The collection of all the relevant data means These principles apply not only to consumers, IHS Automotive. That will be a small slice of also tapping into other sources of information but also to enterprises. The Internet of Things the embedded systems market that IDC says and not limiting it to a single “thing” or a promises to improve the internal operations will generate 4.4 trillion gigabytes of data single user. Hal Varian provides an example of enterprises everywhere, cutting waste and worldwide in 2020. from his home state of California, which is improving productivity in numerous Staying afloat in all this data becomes even suffering a severe drought. “Yet I still see lawn activities, from inventory management to more difficult if you attempt to increase sprinkler systems running while it is raining,” supply chain logistics to customer relations. relevance and value by integrating data from he says. “Certainly sprinkler systems should Just as with consumers, however, enterprises different sources — a task that’s particularly be smart enough to check the weather forecast will not benefit from the true potential of challenging for businesses. Says Cavaretta: and current conditions before turning on the increased connectivity if their workers are “As you take more and more data sets and water!” Or, as Aziza, the CMO and overwhelmed by data. If the data collected mash them together, you find that the value of self-described Quantified Self geek, says: “We and transmitted by the Internet of Things is the data can go up quite significantly. But it’s not relevant, if it is not provided in a timely a huge perennial challenge to look across fashion, if the analysis does not suggest ways different and disparate data sets. Big data to improve a work activity or process, then technologies such as Hadoop, however, allow enterprises will not benefit from the Internet you to put everything in one large repository.” of Experiences. If employees, managers, and And there’s value to be found in data from senior executives in enterprises big and small, outside the enterprise and its ecosystem: “One private and public, don’t have positive data source that is really important is experiences with this abundance of data, they government, and more generally, the open won’t take advantage of it. data movement. There’s a lot of value here,” Mike Cavaretta, the Technical Leader for says Cavaretta. Predictive Analytics and Data Mining at Ford Data merging and mashing, while Research and Innovation Center, highlights increasing the value of the analysis, raise this importance of separating the signal from another issue: My data does not always talk to the noise: “I don’t think the problem is the your data. Yes, they both consist of ones and storage of the data. It’s ingesting the data, the zeros, but they are formatted differently and work for the data today; instead, the data analysis of the data, and the understanding of may be using different codes, names, and needs to work for us.” the data. Machines don’t drown in data; labels to describe the same thing. For the data to work for us, we need to people drown in data.” Semantics in general and the Semantic follow a few Internet of Experiences Cavaretta is in a unique position to assess Web-a framework of common data principles: The data should be collected in the impact of the current data deluge, and of formats that allows data to be shared and non-intrusive ways; it should be collected the coming data tsunami unleashed by the reused across Web pages and applications from all relevant sources; the user should be Internet of Things, on both consumers and -in particular promise to overcome this involved in deciding what data is collected enterprises. Ford’s Fusion Energi car model difficulty. “I would like to see these and how it is analyzed; the analysis should be already generates about 25 gigabytes of data technologies take off,” says Cavaretta. provided to the user (or another “thing”) every hour, which is used to improve fuel “Google Trends is a great example of how in a timely fashion; and the analysis efficiency and reduce emissions. But Ford’s semantic technology can rationalize should provide value (e.g., benchmarks, research labs are experimenting with vehicles things across different domains.” recommendations, predictions), delighting that produce 250 gigabytes of data per hour. Steven Gustafson, the Manager of the users and encouraging further use. And the number of cars connected to the Knowledge Discovery Lab at GE Global

Businesses surveyed worldwide that are already We found a way to allow domain experts to capture their exploring the IoT and its expected growth own knowledge in semantics and give them access to things like reasoning and tools for data integration.

2013 2016 Steven Gustafson 75% 95% Manager, Knowledge Discovery Lab at GE Global Research

continued from page 14....

CTO Straight Talk | 18 CT SCANNER // 7:00AM HOW A CHANGE AGENT BECAME A CATALYST His heart is in the right place. FOR COLLABORATIVE INNOVATION

ECG MONITOR // 7:00AM Recreating a Fortune 100’s R&D operation proves a case study in change management and shows the value of internal and external partnerships. Oh, really?

CT SCANNER // 7:02AM

Yeah, I can see it. POSITION: Vice President of Medical Products R&D ECG MONITOR // 7:02AM COMPANY: Bet you haven't heard his pulse when Baxter International Inc. the nurse walks by! WORKS FROM: Deerﬁeld, Illinois

PROFESSIONAL BACKGROUND: Schabacker is a board-certified anesthesiologist who also holds certifications in intensive care, emergency medicine, and disaster medicine. He spent his first ten years in medical practice in Germany, Australia, and post-apartheid South Africa, where he worked for two years building an anesthesia MARCUS SCHABACKER department and intensive care unit in a tertiary, rural hospital. [email protected] After returning to Germany, he joined B. Braun as Vice President for global medical affairs and ultimately became head of R&D and regulatory affairs for the company’s U.S. operation. Schabacker then had a short stint with a start-up before moving to Bristol-Myers Squibb’s medical device division as Chief Scientific Officer of ConvaTec, prior to joining Baxter Medical Products, in 2011. At ConvaTec, he was responsible for R&D, clinical and medical affairs, environmental health and safety, quality, and regulatory affairs.

EDUCATION: MD and PhD in Anesthesiology, Medical University of Lübeck

PERSONAL PASSIONS: Spending time with my two kids (outdoors, tae kwon do), opera

CTO Straight Talk | 20 As I write this, I am reflecting on the time, coalition; a high-performing team that three years to the day, that I have been with both understands, embraces, and Baxter. This is a good time to reflect on the implements vision and can craft a We need to be able to translate customer changes that have taken place. When Baxter compelling strategy to achieve that vision. approached me in 2011, the company had just Once this team was formed, we set about needs into design requirements and brought its medication delivery and renal our work to transform R&D. those requirements into speciﬁcations business units together to create the Medical Our next task was the centralization of and clearly deﬁne what that circuit board, Products business. But research and an historically decentralized R&D development (R&D), which I was to lead, was organization. In the past, R&D took place for example, needs to be doing for us. fragmented into various R&D and clinical and in small groups aligned with specific medical organizations. My goal was to form a business units. While the model produced cohesive global R&D organization. results, decentralized R&D organizations My vision was to work with our team to often become reactive to short-term portfolio. Our governance and control we stood and what this meant for our create a culture of collaborative innovation, changes. Typically, business leaders focus processes needed to be addressed organization. I told my colleagues, “Here’s as well. the performance for 2011, and here’s what we’ve changed. We have the money, we Leading from the Front have the resources, we have the agreement My vision was to work with our team to of the supporting staff in quality, in manufacturing, and in regulatory affairs. create a culture of collaborative innovation, Our change management team’s first order of business was to establish better processes. We We’re out of excuses now. We must deliver now.” And the organization responded! We a coming together of experts, idea started a program management office, created dramatically improved our milestone generators, and business leaders inside and a new governance model, and instituted a performance and have launched prioritization process that allows us to move outside of Baxter. several products. resources from one project to another. We Today Baxter has R&D employees have also consolidated those disparate groups focused on breakthrough innovation at into one global organization within the strategically important locations worldwide, Medical Products business, and R&D now has a coming together of experts, idea on what is ahead in the next quarter or the augmented by contractors at laboratories in a seat on the Medical Products senior generators, and business leaders inside next year. R&D happens at a different Asia, Europe, and North America. In management team. and outside of Baxter all working toward a pace-in the medical health care industry; addition, we have key strategic partners in This took a lot of work and required leading mutual R&D goal: to bring innovative development cycles of five, ten, or even North America and India. from the front. My leadership team and I had therapy solutions to our patients. fifteen years are common. If you do not Global operations of this scope take to have the support of my peers and senior think strategically with an R&D collaborative innovation, of three different kinds. management. By the beginning of 2012, we organization, your gains are minimal. Instituting Change had everything we needed to be Another major strategy was the Collaborating with Experts successful with our global R&D Before we could get to a state of establishment of a more rigorous organization. We had a rigorous prioritization The first type of collaboration is to work with collaborative innovation, we had several prioritization process. We needed more process, we were able to plan for and achieve an outside partner who has expertise in an things to tackle. robust processes in place to determine our deliverables, and we had gotten the area outside of your core competency. Given The first was the establishment of a what we would and would not do, which money we needed to deliver on our plan. So the tremendous speed of technology highly motivated leadership team of would mitigate the risk of trying to do too I gathered my organization for what was development, it is imperative for a company experts both in their technical fields and many things at once. We also needed a likely the most important global town hall like Baxter, with its wide product and in the business of health care. In order to more disciplined approach to resource meeting of my time at Baxter. technology portfolios, to define what is truly effect change, one must create a guiding planning and staffing for our project During this meeting, I discussed where core to us. Where do we need to be best in

CTO Straight Talk | 22 class? And what are the areas where others have deeper expertise than Baxter and do work on a scale and/or in a specific area that Too often, there isn’t a strong enough we never could or should? Making the Most of Career collaboration between R&D and manufacturing. We must understand what the true needs of Opportunities our customers are. We need to understand the And that leaves room for improvement whether use cases of our devices and our products, and When I was asked to overhaul from a cost perspective, a quality perspective, a know how our drugs are used. We need to be Baxter’s R&D function, the move yield perspective, or whatever else. able to translate customer needs into design represented for me a great challenge requirements and those requirements into and opportunity to learn and to specifications and clearly define what that lead. Here are three principles I’ve circuit board, for example, needs to be doing found useful: for us. Then we can give all that information to Collaborating with Idea Generators collaboration between R&D and manufacturing. a partner that does circuit boards really • Define your mission and vision, And that leaves room for improvement develop a strategy for how you’re The second kind of collaborative innovation whether from a cost perspective, a quality going to get there, and drive has to do with finding the right innovative perspective, a yield perspective, or whatever ruthless execution. ideas to work on. Here I make a strong else. If a suboptimal design gets to the distinction between invention and manufacturing floor, we would be left In order to effect change, one • Always have a goal and know what innovation. Invention for me is the act of investing a substantial amount of time, must create a high - you want to achieve, but be open to creating something new. Innovation comes money, and resources to fix it-all of which performing team that making a sharp turn if the in knowing how to develop that idea so could have been avoided if we had done more that it generates value for Baxter and understands, embraces, and opportunity arises. collaborative work up front and gotten some for patients. expertise on how to bring our design from lab implements vision and can • Weigh your choices wisely, So we partner with universities, start-ups, scale to mass production. craft a compelling strategy to keeping in mind what you want to and others that can supplement our own idea It’s not easy to get different teams to generation and keep the product funnel filled. achieve that vision. achieve overall — and then go for it. rethink how they work together. But Toward this end, we have strong partnerships fortunately, when I started here, Baxter had with a number of leading universities. On an just assigned a new head of global annual basis, we put out a request for manufacturing, a longtime Baxter executive proposals and ask researchers there to submit who was open to a collaborative approach. their work. We then have the opportunity to Together we made a conscious decision to well, and have it design, build, validate, and fund the research programs we think are most work together. So, when people came to me verify that for our use. relevant for us, and, ultimately, bring them and said, “Well, you know those manufacturing At Baxter we have identified key areas in-house if appropriate. folks…,” I would say, “Let’s take a look at this for this type of collaborative innovation management tool. We’ve assigned in-house and make sure we don’t have a design issue. and forged strategic partnerships for work employees to stay in touch and help guide Collaborating with Other Let’s get to the root cause and fix it together.” in these areas. For example, we have the partnership. Internal Functions Similarly, my colleague in manufacturing outsourced many non-core electromechanical This collaborative innovation has really would say, “Hey, this isn’t necessarily an R&D engineering tasks to world-class specialists at helped us maximize our resource utilization. Lastly, collaborative innovation must take problem. We need to look at this together.” partner organizations. These engineers, And several times it has helped us quickly place within Baxter itself. There are numerous While he committed to making sure that the dedicated to Baxter, work on our projects ramp up in response to demand signals we examples, but the strongest one is in the area relevant resources would get involved early every day and are accessible to our had not anticipated. The ability to flex up and of design transfer. from the design perspective, I signed up by colleagues around the world via our resource down has been a major factor in our success. Too often, there isn’t a strong enough saying, “I understand you have a lot of things

CTO Straight Talk | 24 www.hcltech.com

that need R&D support but aren’t necessarily high on our agenda. But because these are so important to you and the company, we’ll support them, and we’ll make sure you have the relevant resources.” We demonstrated our · R&D that is too closely aligned with conscious choice of collaborative innovation business units can become reactive to the rest of the organization. And that had a to short-term changes. And you’ll lot to do with our success. never accomplish anything meaningful if you’re constantly Looking Ahead shifting your priorities.

The medical health care products industry · Sometimes you need to get your faces a variety of challenges-the rise of team’s attention with a blunt increasingly capable local and regional, if assessment of your situation- not global, competition; ever-increasing something like: “We’re out of regulatory scrutiny; tight competition for excuses now. If we don’t get this talent; and the need to become a solutions fixed, neither you nor I will be here provider. But after three years here, I think next year to discuss this.” we’re well-positioned to meet these challenges head on. And I’m looking forward to it. · Running a big R&D organization requires collaborative innovation of three kinds: collaboration with outside experts, partners who have expertise in an area outside your core competency and who can ramp up quickly to meet unanticipated demand; collaboration with idea generators, such as universities and start – ups, who can help you fill gaps in your product pipeline; collaboration with internal functions, such as manufacturing, which can help prevent the development of products that are suboptimal from a cost, quality, or yield perspective Where others see a Product, We see an Experience

As the world’s largest engineering services team, HCL’s engagement with you isn’t simply restricted to delivering quality products. While we accelerate product development, develop cutting edge technology, and deliver incredible value, what is more important is that we rigorously align our business goals with yours. This ensures that not only do we deliver an excellent product, we also

help you deliver a phenomenal experience to your customers. Visit our website to know more MODEM // 7:00AM THE PEOPLE-CENTRIC INTERNET

Oh no! I detect an additional user on Andy's broadband. A $19 trillion global opportunity for businesses and the public sector, driving big Prepare for slow internet speeds. changes in the way we live and work

COMPUTER // 7:00AM

It can't be that bad, we have ﬁbre optic cables POSITION: that can download anything in the blink of an eye. Vice President of Product Management, Cloud and Systems Management Technology Group, Cisco Systems

MODEM // 7:02AM WORKS FROM: Bay Area, California It's Sarah’s mom and she just discovered cat videos.

PROFESSIONAL BACKGROUND: JL is responsible for organizing, managing, and deﬁning the long-term COMPUTER // 7:02AM and medium-term product strategy and roadmaps for Cisco’s Cloud & Systems Management Technology Group (CSMTG), working with the CTO Sigh...prepare for low internet speeds. ofﬁce as well as partnering with the CSMTG-dependent business units to create inbound and outbound marketing strategies.

Prior to his current position, Valente was the CEO at blueKiwi Software, JEAN-LUC “JL” VALENTE the President and CEO at RiverMuse, Executive Chairman of Cittio, and Senior Vice President, Americas Operations, at InfoVista. Early in his [email protected] career, he spent several years at Computer Associates.

EDUCATION: Master’s degree in Computer Science from Ecole d'Ingénieurs des Technologies de l'Information et du Management

PERSONAL PASSIONS: British history (Tudor monarchy), Mezoamerican civilizations, motorcycling

CTO Straight Talk | 28 It can be difficult to speak about the Internet “things” are one of the four dimensions of Everything (IoE) without using (people, process, data, and things) we talk superlatives. No other technology has been so about in the Internet of Everything. Another challenge of the IoE concerns pervasive or as rapid in its growth as the Things include sensors, meters, actuators, the overwhelming amount of data that Internet—adding millions, if not billions, of and many other kinds of objects that are new connection points every year. However, either addressable directly through the requires correlation and integration and the number of people and things getting Internet or trackable indirectly (through cleaning. Some of that must be done in connected isn’t what matters most, but RFID tags, for example). And through the near real time. rather the outcomes those connections addressability and tracking of things, make possible. enormous amounts of information will be People can use Internet connections to created and shared, enabling new activities improve their lives, the way they work, and and enhancing existing ones. This will create how they manage the public sphere. And, as new ways to interact and control the world historical (stored) data. Network intelligence may be impacted only indirectly or over stated by John Chambers, Chairman and CEO around us, improving energy usage, making will eventually touch almost everything, from time, for other people the IoE may become an the home and the individual to environmental immediate competitive factor, either through sensors located almost everywhere. direct adoption or as it percolates through the Since the IoE is still evolving, as are the supply chain or is adopted by competitors. Internet of Things is a subset of Internet of Everything tools and regulations that may accompany it, If you want to participate in the IoE, you that focuses on the connections between machines. much remains uncertain. However, it’s a safe must figure out where you stand and where bet that privacy and security will be top your organization will fit. For example, if you Indeed, “things” are one of the four dimensions concerns, particularly if the IoE seems to are a systems integrator and you want to offer (people, process, data, and things) of the confirm people’s perceptions that they are fully integrated solutions, you will need to Internet of Everything. being tracked or watched by both the determine which technologies and markets public and private sectors. are relevant to the IoE or which have the most Another challenge of the IoE concerns the urgent needs or the most promising benefits. overwhelming amount of data that requires You also need to consider which skill sets will correlation and integration and cleaning. be needed in this new environment. of Cisco, governments can improve how they industrial processes more responsive, and Some of that must be done in near real time, You should also consider potential serve their citizens, and businesses can use opening an era of smart-transportation that while some can be done on a longer term constraints and regulations. Investing in the information they get from all these new adapts to and perhaps even anticipates basis. In both cases, we will need new tools, publications and attending events and connections to make better decisions, be more demand while working around weather and processes, and skills to get the job done. webinars focused on IoE (or IoT) can help productive, and innovate faster. other factors to ensure safety and efficiency. The IoE will bring people, processes, data demystify the topic and give you and your Let’s start with a level set: Cisco defines the Beyond “things” and the new data they will and things together as never before, team a solid grounding. Of course, it isn’t Internet of Everything (IoE) as the networked generate, the IoE will gather, stream, and impacting almost everything we just absorbing information but what you connections among people, process, data, distribute data from more sources than ever experience in new and profound ways. do with it that counts. and things-and the value that those and to more sources than ever, as smarter This will be transformative for individuals When we talk about the IoE, we are connections make. devices seek contextual information and and for organizations. implicitly talking about building or IoE is not a rebranding of the term Internet more-powerful analytical tools seek insights. strengthening a decision management of Things (IoT), which is used to describe the Because much of the IoE data has value that is Near-Term Decisions system and providing a structure for data. intelligence and Internet addressability that is transient, it may be quickly combed for This will likely encourage more increasingly added to the physical world. IoT insights and then discarded. There is also the The IoE will affect different people in development in and use of the cloud, is a subset of IoE that focuses, more or less, on notion that data in motion (real-time data) dramatically different ways. While, say, a where you can quickly add capacity and the connections between machines. Indeed, gains value as it is collected and becomes purveyor of fresh fruit at a roadside stand capabilities as the IoE evolves. Being able

CTO Straight Talk | 30

are and offer your favorite product obvious economic impacts of the IoE will be without prompting. on technology investments. Consider, for Again, the IoE is built on the realization that example, how many more sensors will be there are billions of objects that can be manufactured and deployed once there is a harnessed for their ability to deliver different market for more data. The number will sets of information from many locations that be huge. can then be leveraged in imaginative new There are already applications where ways. As the IoE develops, there will need to sensors are being put in the soil to ensure be more attention given to life cycle issues, more effective irrigation and soil treatment- updating and managing devices and much better than the “best guess” approach ensuring that protocols interact. The used today. The current drought in California devices or sensors will then be joining the is a reminder of the importance of that kind of information flow within the network, smarter water use, which the IoE can enable. along with user-generated information, which Consider too what those fixed and mobile can be very meaningful for business and society. sensors in the field will do to the need for different connectivity and processing. Local The Longer View processing and storage of data, the intelligence to forward urgent or important The IoE will offer more insights into the Today, we are just entering the IoE, and data, and the intermittent nature of those long-term habits of shoppers and provide communication service providers are likely to connections all will have a further impact on immediate feedback on how they are play a major role in creating future demand. technology investment and deployment. responding. Shoppers may be able to find For most service providers, only a small part Cisco and our partners are working with a information on products on mobile devices, of their revenues with both businesses and number of cities and city planners, both in the and the retailer may be able to correlate that consumers are attributable to the IoE today. growing cities in Asia and in the long- in real time. Sensors in a display or in a That will change – and there is a desire on the established cities in Europe, where there is a walkway can measure, count, or part of communication service providers to desire to digitize many services. The IoE is characterize what people are focusing on. grow the business, expanding connectivity for part of the vision for connected cities, in which A narrower example is the world of vending devices of all kinds and adding services on services ranging from planning and traffic machines, where the machines may be top. In addition, even though the price of management to emergency services become able to customize products-making them sensor and networking technology continues more efficient and smarter. For example, sweeter, for example - or identify who you to decrease, one of the most immediate and sensors and video cameras can provide timely

indicators of traffic problems and faster responses. The IoE can be transformative in a vast range of scenarios simply by enhancing situational awareness. The IoE also encompasses less sophisticated technologies. For example, in Las Vegas, some casinos are putting RFID into poker chips to see patterns in how chips are being used and leveraged, which helps with customer management, especially the high rollers, and security. Similar kinds of simple locational and usage data can be extracted from everyday things ranging from shoes to medicine to cars. There is so much over the next decade through increased information that, if gathered and analyzed, profits for businesses as well as cost savings, could be very useful. When we at Cisco improved citizen services, and increased have discussions today with CEOs of revenues for governments and other manufacturing companies and airlines, public-sector organizations. It is a huge they all “get” the value that the IoE market in the making, providing represents; they see the potential. defining the principles and standards that tremendous benefits for individuals, Countries such as Israel are looking at the need to be captured in an IoE architecture. organizations, and society. IoE holistically and figuring out how to Obviously, there will be regulations and leverage the new technology and what kind of constraints, and some of those will take advantages and capabilities their economies time to fully develop. might realize. They are making progress on Cisco’s research suggests that businesses in developed markets are currently realizing the greatest share of value from IoE. In addition, the barriers to further adoption continue to fall in all markets, thanks to cloud-based IT consumption models. So countries and enterprises just entering this new Internet phase have a good chance to catch up. In that sense, the IoE is leveling the playing field, allowing new entrants to compete more successfully in various markets. Anyone with the right mix of tools, technology, and vision can join the IoE economy. In a sense, the IoE is the ultimate democratization of technology, lowering barriers of entry and providing connectivity like never before. Cisco estimates that the IoE represents a $19 trillion global opportunity to create value historical (stored) data. Network intelligence may be impacted only indirectly or over will eventually touch almost everything, from time, for other people the IoE may become an the home and the individual to environmental immediate competitive factor, either through sensors located almost everywhere. direct adoption or as it percolates through the Since the IoE is still evolving, as are the supply chain or is adopted by competitors. tools and regulations that may accompany it, If you want to participate in the IoE, you much remains uncertain. However, it’s a safe must figure out where you stand and where bet that privacy and security will be top your organization will fit. For example, if you concerns, particularly if the IoE seems to are a systems integrator and you want to offer confirm people’s perceptions that they are fully integrated solutions, you will need to being tracked or watched by both the determine which technologies and markets public and private sectors. are relevant to the IoE or which have the most Another challenge of the IoE concerns the urgent needs or the most promising benefits. overwhelming amount of data that requires You also need to consider which skill sets will correlation and integration and cleaning. be needed in this new environment. Some of that must be done in near real time, You should also consider potential while some can be done on a longer term constraints and regulations. Investing in basis. In both cases, we will need new tools, publications and attending events and processes, and skills to get the job done. webinars focused on IoE (or IoT) can help The IoE will bring people, processes, data demystify the topic and give you and your and things together as never before, team a solid grounding. Of course, it isn’t impacting almost everything we just absorbing information but what you experience in new and profound ways. do with it that counts. This will be transformative for individuals When we talk about the IoE, we are and for organizations. implicitly talking about building or strengthening a decision management Near-Term Decisions system and providing a structure for data. This will likely encourage more The IoE will affect different people in development in and use of the cloud, dramatically different ways. While, say, a where you can quickly add capacity and purveyor of fresh fruit at a roadside stand capabilities as the IoE evolves. Being able

to analyze and correlate data in new ways will be a new strategic frontier for On January 15, 2014, the World many companies. Economic Forum published “Are When we talk about the IoE, we are Retail is an obvious area where more and You Ready for the Internet of implicitly talking about building or better sensor data could have an immediate Everything” by John Chambers, strengthening a decision bottom-line impact. For example, more can Cisco’s Chairman and CEO. Some be done to improve the experiences of selected observations from that management system and providing a shoppers from the moment they enter the article: structure for data. parking lot. On the basis of vehicles coming to the parking lot or people entering a store, • “Fueling the Internet of Everything you may need to reorganize the staffing or is the growing number of people and checkout lines or even reconfigure flows. things connecting to the Internet. There will be more mobile devices are and offer your favorite product obvious economic impacts of the IoE will be and smartphones connected than without prompting. on technology investments. Consider, for the total global population by 2015; Again, the IoE is built on the realization that example, how many more sensors will be by 2020, more than 5 billion people there are billions of objects that can be manufactured and deployed once there is a As the IoE develops, there will be connected, not to mention 50 harnessed for their ability to deliver different market for more data. The number will will need to be more billion things.” sets of information from many locations that be huge. can then be leveraged in imaginative new There are already applications where attention given to life cycle • “The Internet of Everything is ways. As the IoE develops, there will need to sensors are being put in the soil to ensure issues, updating and about creating a world where be more attention given to life cycle issues, more effective irrigation and soil treatment- managing devices and everything is connected to updating and managing devices and much better than the “best guess” approach everything else. It’s changing how ensuring that protocols interact. The used today. The current drought in California ensuring that protocols we live – safer streets, smarter devices or sensors will then be joining the is a reminder of the importance of that kind of interact. homes, better education and information flow within the network, smarter water use, which the IoE can enable. healthcare. It’s changing how we along with user-generated information, which Consider too what those fixed and mobile work – more information, better can be very meaningful for business and society. sensors in the field will do to the need for decisions, more agile supply chains, different connectivity and processing. Local more responsive manufacturing and The Longer View processing and storage of data, the increased economic value.” intelligence to forward urgent or important The IoE will offer more insights into the Today, we are just entering the IoE, and data, and the intermittent nature of those long-term habits of shoppers and provide • “We now have the technology, the communication service providers are likely to connections all will have a further impact on immediate feedback on how they are know-how and the experience to play a major role in creating future demand. technology investment and deployment. responding. Shoppers may be able to find create a world with the Internet of For most service providers, only a small part Cisco and our partners are working with a information on products on mobile devices, Everything. I see 2014 as the of their revenues with both businesses and number of cities and city planners, both in the and the retailer may be able to correlate that inflection point for this major consumers are attributable to the IoE today. growing cities in Asia and in the long- in real time. Sensors in a display or in a technology transition, which I That will change – and there is a desire on the established cities in Europe, where there is a walkway can measure, count, or predict will have a much bigger part of communication service providers to desire to digitize many services. The IoE is characterize what people are focusing on. impact on the world than the first grow the business, expanding connectivity for part of the vision for connected cities, in which A narrower example is the world of vending 20 years of the Internet. devices of all kinds and adding services on services ranging from planning and traffic machines, where the machines may be Are you ready?” top. In addition, even though the price of management to emergency services become able to customize products-making them sensor and networking technology continues more efficient and smarter. For example, sweeter, for example - or identify who you to decrease, one of the most immediate and sensors and video cameras can provide timely

CTO Straight Talk | 32

to analyze and correlate data in new ways will be a new strategic frontier for many companies. Retail is an obvious area where more and better sensor data could have an immediate bottom-line impact. For example, more can be done to improve the experiences of shoppers from the moment they enter the parking lot. On the basis of vehicles coming to the parking lot or people entering a store, you may need to reorganize the staffing or checkout lines or even reconfigure flows. are and offer your favorite product obvious economic impacts of the IoE will be without prompting. on technology investments. Consider, for Again, the IoE is built on the realization that example, how many more sensors will be there are billions of objects that can be manufactured and deployed once there is a harnessed for their ability to deliver different market for more data. The number will sets of information from many locations that be huge. can then be leveraged in imaginative new There are already applications where ways. As the IoE develops, there will need to sensors are being put in the soil to ensure be more attention given to life cycle issues, more effective irrigation and soil treatment- updating and managing devices and much better than the “best guess” approach ensuring that protocols interact. The used today. The current drought in California devices or sensors will then be joining the is a reminder of the importance of that kind of information flow within the network, smarter water use, which the IoE can enable. along with user-generated information, which Consider too what those fixed and mobile can be very meaningful for business and society. sensors in the field will do to the need for different connectivity and processing. Local The Longer View processing and storage of data, the intelligence to forward urgent or important The IoE will offer more insights into the Today, we are just entering the IoE, and data, and the intermittent nature of those long-term habits of shoppers and provide communication service providers are likely to connections all will have a further impact on immediate feedback on how they are play a major role in creating future demand. technology investment and deployment. responding. Shoppers may be able to find For most service providers, only a small part Cisco and our partners are working with a information on products on mobile devices, of their revenues with both businesses and number of cities and city planners, both in the and the retailer may be able to correlate that consumers are attributable to the IoE today. growing cities in Asia and in the long- in real time. Sensors in a display or in a That will change – and there is a desire on the established cities in Europe, where there is a walkway can measure, count, or part of communication service providers to desire to digitize many services. The IoE is characterize what people are focusing on. grow the business, expanding connectivity for part of the vision for connected cities, in which A narrower example is the world of vending devices of all kinds and adding services on services ranging from planning and traffic machines, where the machines may be top. In addition, even though the price of management to emergency services become able to customize products-making them sensor and networking technology continues more efficient and smarter. For example, sweeter, for example - or identify who you to decrease, one of the most immediate and sensors and video cameras can provide timely

indicators of traffic problems and faster responses. The IoE can be transformative in a vast range of scenarios simply by enhancing Anyone with the right mix of tools, technology, situational awareness. The IoE also encompasses less sophisticated and vision can join the IoE economy. In a Some casinos are technologies. For example, in Las Vegas, some sense, the IoE is the ultimate democratization casinos are putting RFID into poker chips to putting RFID into of technology, lowering barriers of entry and see patterns in how chips are being used and poker chips to see leveraged, which helps with customer providing connectivity like never before. management, especially the high rollers, and patterns in how chips security. Similar kinds of simple locational are being used and and usage data can be extracted from leveraged. everyday things ranging from shoes to medicine to cars. There is so much over the next decade through increased information that, if gathered and analyzed, profits for businesses as well as cost savings, could be very useful. When we at Cisco improved citizen services, and increased have discussions today with CEOs of revenues for governments and other manufacturing companies and airlines, public-sector organizations. It is a huge · When considering the power of the they all “get” the value that the IoE market in the making, providing Internet, don’t miss the forest for the represents; they see the potential. defining the principles and standards that tremendous benefits for individuals, trees: The number of people and Countries such as Israel are looking at the need to be captured in an IoE architecture. organizations, and society. things getting connected isn’t what IoE holistically and figuring out how to Obviously, there will be regulations and matters most, but rather the outcomes leverage the new technology and what kind of constraints, and some of those will take those connections make possible. advantages and capabilities their economies time to fully develop. might realize. They are making progress on Cisco’s research suggests that businesses in · One way to segment the vast amount developed markets are currently realizing the of real-time data generated by the greatest share of value from IoE. In addition, “Internet of Everything” is to the barriers to further adoption continue to distinguish between data of transient fall in all markets, thanks to cloud-based IT value, which may be quickly combed consumption models. So countries and for insights and then discarded, and enterprises just entering this new Internet data that gains value as it is collected phase have a good chance to catch up. In that and becomes historical data. Consider too what those sense, the IoE is leveling the playing field, ﬁxed and mobile sensors in allowing new entrants to compete more · The Internet of Everything is leveling successfully in various markets. the ﬁeld will do to the need the playing field, allowing new Anyone with the right mix of tools, entrants to compete more successfully for different connectivity technology, and vision can join the IoE in various markets. This represents and processing. economy. In a sense, the IoE is the ultimate the ultimate democratization of democratization of technology, lowering technology, lowering barriers of entry barriers of entry and providing connectivity and providing connectivity like like never before. never before. Cisco estimates that the IoE represents a $19 trillion global opportunity to create value

CTO Straight Talk | 34 TABLET // 7:00AM CONNECTING THE UNCONNECTED

Why does the laptop never win at cards? The immediate and transformative opportunity for beneﬁting from the Internet of Things

LAPTOP // 7:00AM lies in the billions of devices already out there.

Why?

TABLET // 7:02AM POSITION: General Manager, Internet of Things Solutions Group, Segments Because it always folds! Get it? :D and Broad Market Division

LAPTOP // 7:02AM COMPANY: Ha..ha.. funny…. :| Intel Corporation

WORKS FROM: Chandler, Arizona

PROFESSIONAL BACKGROUND: At Intel, Jim Robinson is responsible for delivering a comprehensive go-to-market, ecosystem, and channel strategy to serve thousands of Embedded ODM, OEM, Design House, and System Integrator customers and to cultivate new business to grow the IoT market. This includes key market segments such as Industrial, Energy, Gaming, Medical, Print Imaging, James Robinson Digital Surveillance and Security, and [email protected] Military/Aerospace/Government. In addition, Robinson’s organization is responsible for managing group supply/demand/revenue, and long life product delivery, as well as product documentation readiness.

EDUCATION: BA from Hamilton College; MBA from Arizona State University

PERSONAL PASSIONS: When not working, Jim enjoys spending time with his wife and three daughters.

CTO Straight Talk | 36 The Internet of Things is not just a buzzword Early Adopters each kind of device aggregates and analyzes create a new revenue stream. or a vision for the future. It exists today in data is going to be different, too. That makes it Daikin also wanted to take existing units in billions of installed devices and can come to Already today, industries such as hard to have a scalable methodology and to the field and add connectivity so they could life in many industries just by connecting manufacturing, retail, and health care are You need security at the edge of the IoT. participate efficiently in this IoT economy. extract data to improve the management of these devices to one another and to data demonstrating the benefits of the IoT, and A lot of data analysis will happen at the The role we at Intel try to play is to drive their business. We worked with them on a stores. The analysis of the data coming from enterprises in these industries are investing in device itself, where you need to make more standards that will enable end-to-end gateway concept and deployed that securely these devices can improve decision making to developing applications based on it. IoT deployment. We do that, for example, so that now it collects a wide range of reduce costs, improve operations, and find Take manufacturing at Intel, for example. real-time decisions. through our participation in the Industrial operational data, remotely. new sources of revenue. What we have been doing here internally is Internet Consortium (IIC). The IIC is an open Today, Daikin can access data on what Despite all the hype, the Internet of Things the IoT. We dig holes in the ground, erect membership group formed by AT&T, Cisco, equipment is running at a given location, and isn’t an entirely new concept. I like to say that huge “fabs,” or manufacturing facilities, and GE, IBM, and Intel to break down the barriers they can even control the temperature the newest things have often been 30 years in install very expensive equipment so that we of technology silos to support better access to remotely. They used to have a truck and a the making, and the IoT is no exception. For can fabricate millions of units for customers big data with improved integration of the technician working on a regular schedule to instance, many of the technologies central to around the world. We connect devices and hasn’t been connected very efficiently. society will continue to grapple with, much physical and digital worlds. For starters, consider all the ways you might The Immediate Transformative perform maintenance. Most of the time, it—like near field communication, barcodes, monitor the health of this equipment so we The IoT provides that missing link, the the same way we have with phones and like to extract data from your business Opportunity nothing was wrong, so it was not really network to connect all the devices and the laptops. Also, what privacy looks like and is environment. Most organizations have necessary to make the visit. If something was data they produce. considered acceptable is different by age and gradually become more instrumented, but the Uncovering opportunities that may improve failing-or had broken-they might not have the Retail is another sector where there is culture. Millenials are much less concerned IoT will lead to tremendous expansion. Any decision making in your organization down correct part. Now they can detect problems in already a lot of investment in the IoT. You can about personal confidentiality. They will opt processor or activity will be monitored in near the road is important. But you should also real time and save on operating costs by Despite all the hype, the Internet of Things isn’t see it when you go into a large retailer like in when they feel they are being offered real time and become a new source of data. consider what’s lying in plain sight. From deploying a truck only when it’s necessary- an entirely new concept. I like to say that the Walgreens or Walmart. Retailers have something that improves their life-or that of The data will need to be shared and analyzed our perspective, the transformative-and and they can usually arrive with the correct massive challenges that the IoT can help society at large-or is entertaining. so that it can help you make better decisions. immediate-opportunity is the billions of part. They also found the data had value for newest things have often been 30 years in the address, from creating better experiences for Security is another potential roadblock in Once you develop a plan identifying the best devices already deployed over the past 30 their customers and has led to better ways of making, and the IoT is no exception. customers to improving point-of-sale the widespread adoption of the IoT. As more opportunities for deploying the IoT, you need years in various sectors such as the energy distributing loads and operating more activities and inventory management to and more end points are connected, there is to discuss it at the highest levels of the grid, manufacturing, and infrastructure and efficiently. That’s a great example of what implementing dynamic pricing. more opportunity for attacks and business. The IoT is a strategic investment traffic management. A very large percentage you can do just by adding connectivity to exploitation. You need security at the edge of decision that cannot be made from the bottom of these devices and sensors have been based existing devices. Potential Roadblocks the IoT and across the network. A lot of data up. It should affect the entire business, not on proprietary systems and have not been Computing technology has evolved from analysis will happen at the device itself, where just individual functions or units. connected to anything. We refer to that as the mainframes to PCs to mobility, to the point Of course, there are some countervailing you need to make real-time decisions or Next comes implementation. Typically, “brown field” opportunity for the IoT-the where it is now ubiquitous. That is the essence and RFID tags—have been around for a while, can make real-time decisions. It is all about forces. Personal privacy, the security of data, because of corporate security concerns about when we engage with customers interested in opportunity to connect devices that are of the IoT. We think that Intel and others will and some have been applied in industry, improving throughput and having traceability and standards for interoperability are issues transporting sensitive data. You may not want the IoT, we work through a long list of already installed. continue to drive Moore’s Law forward, with including at Intel, for decades. at the unit level for all our that have to be resolved for the IoT to be to release some data to the cloud questions. For example: What is your cloud The thinking is that no one is going to rip out ever more transistors in a smaller form factor. Today, however, we have reached a tipping product lines. successfully and widely deployed. infrastructure. We view security as a critical Where to Start Your IoT Journey? strategy, and how will the IoT impact it? If and replace all those existing devices, which in That progress will be critical to the growth and point in cost and performance, helped by the Health care is very similar. There is so much Society is also just establishing what are component of effectively and seamlessly you could access this type of data, how many cases have a long useful life ahead of success of the IoT. falling prices for RAM and processor chips. technology in health care, whether it is at acceptable social norms around wearables. deploying the IoT. People can be mesmerized by the sexiness of would it change how you manage your them. That would take a very long time, and Coupled with the growing attention from home or in a hospital, and all of it produces For example, if you encounter someone Interoperability standards are always something new, like the IoT. It’s better to business? Could this specific application it’s not really necessary if you can simply analyst firms such as Gartner and Forrester, data. Improving access to that data will create wearing Google Glass, you don’t know important in driving the successful adoption focus on what matters most about the IoT: its of the IoT enable you to improve attach a secure gateway device and start this has turned the IoT into one of the most a tremendous amount of economic benefit for whether you are being recorded. There are of new technologies, and the IoT is no ability to bring more and better data into your operations, develop a new revenue stream, collecting data. talked about technology developments today. health care organizations and ultimately for certain social concerns about how much is too exception. For now, every deployment of the business. While the IoT will affect or achieve greater efficiencies? As an example, we have worked with According to at least one prediction, there will the person receiving health care. Medicine is much use of wearables in public spaces and IoT is still unique. HVAC units, say, will organizations in many ways, some general Those kinds of questions can elicit Daikin, a large Japanese air conditioner be 20 billion Internet-connected devices in awash in data, whether it is in a computer or defining what is an acceptable model for connect to one another in a different way than guidelines can help you choose where to focus information that builds awareness about manufacturer. They install many systems in use by 2020. involving imaging or wearable devices-but it interaction. This is one of the areas that medical devices or wearables will. The way your attention and spending. opportunities that might be hidden and how large buildings and wanted a way to improve we deploy the right resources to go after them. service and maintenance and perhaps even

CTO Straight Talk | 38 The Internet of Things is not just a buzzword Early Adopters each kind of device aggregates and analyzes create a new revenue stream. or a vision for the future. It exists today in data is going to be different, too. That makes it Daikin also wanted to take existing units in billions of installed devices and can come to Already today, industries such as hard to have a scalable methodology and to The IoT is a strategic investment decision the field and add connectivity so they could life in many industries just by connecting manufacturing, retail, and health care are participate efficiently in this IoT economy. Make it Wearable extract data to improve the management of these devices to one another and to data demonstrating the benefits of the IoT, and The role we at Intel try to play is to drive that cannot be made from the bottom up. their business. We worked with them on a stores. The analysis of the data coming from enterprises in these industries are investing in more standards that will enable end-to-end During his pre-show keynote for It should affect the entire business, not gateway concept and deployed that securely these devices can improve decision making to developing applications based on it. IoT deployment. We do that, for example, the 2014 International Consumer just individual functions or units. so that now it collects a wide range of reduce costs, improve operations, and find Take manufacturing at Intel, for example. through our participation in the Industrial Electronics Show, Intel’s CEO, operational data, remotely. new sources of revenue. What we have been doing here internally is Internet Consortium (IIC). The IIC is an open Brian Krzanich, demonstrated Today, Daikin can access data on what Despite all the hype, the Internet of Things the IoT. We dig holes in the ground, erect membership group formed by AT&T, Cisco, Intel-developed designs for equipment is running at a given location, and isn’t an entirely new concept. I like to say that huge “fabs,” or manufacturing facilities, and GE, IBM, and Intel to break down the barriers wearable devices, including smart they can even control the temperature the newest things have often been 30 years in install very expensive equipment so that we of technology silos to support better access to earbuds with biometric and fitness remotely. They used to have a truck and a the making, and the IoT is no exception. For can fabricate millions of units for customers big data with improved integration of the capabilities, an always-on smart technician working on a regular schedule to instance, many of the technologies central to around the world. We connect devices and hasn’t been connected very efficiently. society will continue to grapple with, much physical and digital worlds. headset that integrates with For starters, consider all the ways you might The Immediate Transformative perform maintenance. Most of the time, it—like near field communication, barcodes, monitor the health of this equipment so we The IoT provides that missing link, the the same way we have with phones and existing personal assistant like to extract data from your business Opportunity nothing was wrong, so it was not really network to connect all the devices and the laptops. Also, what privacy looks like and is technologies, and a smart wireless environment. Most organizations have necessary to make the visit. If something was data they produce. considered acceptable is different by age and charging bowl. gradually become more instrumented, but the Uncovering opportunities that may improve failing-or had broken-they might not have the Retail is another sector where there is culture. Millenials are much less concerned IoT will lead to tremendous expansion. Any decision making in your organization down correct part. Now they can detect problems in already a lot of investment in the IoT. You can about personal confidentiality. They will opt “Wearables are not everywhere processor or activity will be monitored in near the road is important. But you should also real time and save on operating costs by see it when you go into a large retailer like in when they feel they are being offered real time and become a new source of data. deploying a truck only when it’s necessary- Interoperability today because they aren’t yet consider what’s lying in plain sight. From Walgreens or Walmart. Retailers have something that improves their life-or that of solving real problems and they The data will need to be shared and analyzed our perspective, the transformative-and and they can usually arrive with the correct massive challenges that the IoT can help society at large-or is entertaining. standards are always aren’t yet integrated with our so that it can help you make better decisions. immediate-opportunity is the billions of part. They also found the data had value for address, from creating better experiences for Security is another potential roadblock in important in driving lifestyles,” he said. “We’re focused Once you develop a plan identifying the best devices already deployed over the past 30 their customers and has led to better ways of distributing loads and operating more customers to improving point-of-sale the widespread adoption of the IoT. As more the successful on addressing this engineering opportunities for deploying the IoT, you need years in various sectors such as the energy activities and inventory management to and more end points are connected, there is innovation challenge.” to discuss it at the highest levels of the grid, manufacturing, and infrastructure and efficiently. That’s a great example of what implementing dynamic pricing. more opportunity for attacks and adoption of new business. The IoT is a strategic investment traffic management. A very large percentage you can do just by adding connectivity to exploitation. You need security at the edge of technologies, and the Krzanich announced the Intel decision that cannot be made from the bottom of these devices and sensors have been based existing devices. Potential Roadblocks the IoT and across the network. A lot of data IoT is no exception. “Make it Wearable” challenge, up. It should affect the entire business, not on proprietary systems and have not been Computing technology has evolved from analysis will happen at the device itself, where calling on the smartest and most just individual functions or units. connected to anything. We refer to that as the mainframes to PCs to mobility, to the point Of course, there are some countervailing you need to make real-time decisions or creative minds to consider factors Next comes implementation. Typically, “brown field” opportunity for the IoT-the where it is now ubiquitous. That is the essence and RFID tags—have been around for a while, can make real-time decisions. It is all about forces. Personal privacy, the security of data, because of corporate security concerns about contributing to the proliferation of when we engage with customers interested in opportunity to connect devices that are of the IoT. We think that Intel and others will and some have been applied in industry, improving throughput and having traceability and standards for interoperability are issues transporting sensitive data. You may not want wearable devices and ubiquitous the IoT, we work through a long list of already installed. continue to drive Moore’s Law forward, with including at Intel, for decades. at the unit level for all our that have to be resolved for the IoT to be to release some data to the cloud computing, such as meaningful questions. For example: What is your cloud The thinking is that no one is going to rip out ever more transistors in a smaller form factor. Today, however, we have reached a tipping product lines. successfully and widely deployed. infrastructure. We view security as a critical Where to Start Your IoT Journey? usages, aesthetics, battery life, strategy, and how will the IoT impact it? If and replace all those existing devices, which in That progress will be critical to the growth and point in cost and performance, helped by the Health care is very similar. There is so much Society is also just establishing what are component of effectively and seamlessly security, and privacy. The you could access this type of data, how many cases have a long useful life ahead of success of the IoT. falling prices for RAM and processor chips. technology in health care, whether it is at acceptable social norms around wearables. deploying the IoT. People can be mesmerized by the sexiness of challenge will award more than would it change how you manage your them. That would take a very long time, and Coupled with the growing attention from home or in a hospital, and all of it produces For example, if you encounter someone Interoperability standards are always something new, like the IoT. It’s better to US$1.3 million in cash to winners business? Could this specific application it’s not really necessary if you can simply analyst firms such as Gartner and Forrester, data. Improving access to that data will create wearing Google Glass, you don’t know important in driving the successful adoption focus on what matters most about the IoT: its and will connect contenders with of the IoT enable you to improve attach a secure gateway device and start this has turned the IoT into one of the most a tremendous amount of economic benefit for whether you are being recorded. There are of new technologies, and the IoT is no ability to bring more and better data into your industry luminaries to help realize operations, develop a new revenue stream, collecting data. talked about technology developments today. health care organizations and ultimately for certain social concerns about how much is too exception. For now, every deployment of the business. While the IoT will affect their ideas. or achieve greater efficiencies? As an example, we have worked with According to at least one prediction, there will the person receiving health care. Medicine is much use of wearables in public spaces and IoT is still unique. HVAC units, say, will organizations in many ways, some general Those kinds of questions can elicit Daikin, a large Japanese air conditioner be 20 billion Internet-connected devices in awash in data, whether it is in a computer or defining what is an acceptable model for connect to one another in a different way than guidelines can help you choose where to focus information that builds awareness about manufacturer. They install many systems in use by 2020. involving imaging or wearable devices-but it interaction. This is one of the areas that medical devices or wearables will. The way your attention and spending. opportunities that might be hidden and how large buildings and wanted a way to improve we deploy the right resources to go after them. service and maintenance and perhaps even

CTO Straight Talk | 40 The Internet of Things is not just a buzzword Early Adopters each kind of device aggregates and analyzes create a new revenue stream. or a vision for the future. It exists today in data is going to be different, too. That makes it Daikin also wanted to take existing units in billions of installed devices and can come to Already today, industries such as hard to have a scalable methodology and to the field and add connectivity so they could life in many industries just by connecting manufacturing, retail, and health care are participate efficiently in this IoT economy. extract data to improve the management of · The Internet of Things is not just a these devices to one another and to data demonstrating the benefits of the IoT, and The role we at Intel try to play is to drive their business. We worked with them on a vision for the future. It exists today in stores. The analysis of the data coming from enterprises in these industries are investing in more standards that will enable end-to-end gateway concept and deployed that securely billions of installed devices and can come these devices can improve decision making to developing applications based on it. IoT deployment. We do that, for example, so that now it collects a wide range of to life in many industries just by reduce costs, improve operations, and find Take manufacturing at Intel, for example. through our participation in the Industrial operational data, remotely. connecting these devices to one another new sources of revenue. What we have been doing here internally is Internet Consortium (IIC). The IIC is an open Today, Daikin can access data on what and to data stores. Despite all the hype, the Internet of Things the IoT. We dig holes in the ground, erect membership group formed by AT&T, Cisco, equipment is running at a given location, and isn’t an entirely new concept. I like to say that huge “fabs,” or manufacturing facilities, and GE, IBM, and Intel to break down the barriers they can even control the temperature · Security issues could slow widespread the newest things have often been 30 years in install very expensive equipment so that we of technology silos to support better access to remotely. They used to have a truck and a adoption of the Internet of Things, with the making, and the IoT is no exception. For can fabricate millions of units for customers big data with improved integration of the technician working on a regular schedule to its billions of points of connection with instance, many of the technologies central to around the world. We connect devices and hasn’t been connected very efficiently. society will continue to grapple with, much physical and digital worlds. For starters, consider all the ways you might The Immediate Transformative perform maintenance. Most of the time, objects and devices. A lot of data analysis it—like near field communication, barcodes, monitor the health of this equipment so we The IoT provides that missing link, the the same way we have with phones and like to extract data from your business Opportunity nothing was wrong, so it was not really will happen at the device itself, at the network to connect all the devices and the laptops. Also, what privacy looks like and is environment. Most organizations have necessary to make the visit. If something was edge of the IoT, making it vulnerable to data they produce. considered acceptable is different by age and gradually become more instrumented, but the Uncovering opportunities that may improve failing-or had broken-they might not have the attacks and exploitation. The transfer of Retail is another sector where there is culture. Millenials are much less concerned IoT will lead to tremendous expansion. Any decision making in your organization down correct part. Now they can detect problems in that analysis or the raw data to corporate already a lot of investment in the IoT. You can about personal confidentiality. They will opt processor or activity will be monitored in near the road is important. But you should also real time and save on operating costs by servers or to a cloud infrastructure raises see it when you go into a large retailer like in when they feel they are being offered real time and become a new source of data. consider what’s lying in plain sight. From deploying a truck only when it’s necessary- additional security concerns. Walgreens or Walmart. Retailers have something that improves their life-or that of The data will need to be shared and analyzed our perspective, the transformative-and and they can usually arrive with the correct massive challenges that the IoT can help society at large-or is entertaining. so that it can help you make better decisions. immediate-opportunity is the billions of part. They also found the data had value for · Interoperability standards are crucial to address, from creating better experiences for Security is another potential roadblock in Once you develop a plan identifying the best devices already deployed over the past 30 their customers and has led to better ways of the adoption of the IoT. For now, nearly customers to improving point-of-sale the widespread adoption of the IoT. As more opportunities for deploying the IoT, you need years in various sectors such as the energy distributing loads and operating more every deployment of the IoT is unique. activities and inventory management to and more end points are connected, there is to discuss it at the highest levels of the grid, manufacturing, and infrastructure and efficiently. That’s a great example of what For example, HVAC units, say, will implementing dynamic pricing. more opportunity for attacks and business. The IoT is a strategic investment traffic management. A very large percentage you can do just by adding connectivity to connect to one another in a different way exploitation. You need security at the edge of decision that cannot be made from the bottom of these devices and sensors have been based existing devices. than medical devices or wearables will, Potential Roadblocks the IoT and across the network. A lot of data up. It should affect the entire business, not on proprietary systems and have not been Computing technology has evolved from and each kind of device aggregates analysis will happen at the device itself, where just individual functions or units. connected to anything. We refer to that as the mainframes to PCs to mobility, to the point and analyzes data differently. Of course, there are some countervailing you need to make real-time decisions or Next comes implementation. Typically, “brown field” opportunity for the IoT-the where it is now ubiquitous. That is the essence and RFID tags—have been around for a while, can make real-time decisions. It is all about forces. Personal privacy, the security of data, because of corporate security concerns about when we engage with customers interested in opportunity to connect devices that are of the IoT. We think that Intel and others will and some have been applied in industry, improving throughput and having traceability and standards for interoperability are issues transporting sensitive data. You may not want the IoT, we work through a long list of already installed. continue to drive Moore’s Law forward, with Read carefully including at Intel, for decades. at the unit level for all our that have to be resolved for the IoT to be to release some data to the cloud questions. For example: What is your cloud The thinking is that no one is going to rip out ever more transistors in a smaller form factor. between the lines of a contract and you will see room for a relationship. It is this Today, however, we have reached a tipping product lines. successfully and widely deployed. infrastructure. We view security as a critical Where to Start Your IoT Journey? strategy, and how will the IoT impact it? If and replace all those existing devices, which in That progress will be critical to the growth and relationship that makes us push the envelope and see beyond the clauses a, b and c. point in cost and performance, helped by the Health care is very similar. There is so much Society is also just establishing what are component of effectively and seamlessly you could access this type of data, how many cases have a long useful life ahead of success of the IoT. In such a relationship you’ll find interactions with trust, transparency and flexibility. falling prices for RAM and processor chips. technology in health care, whether it is at acceptable social norms around wearables. deploying the IoT. People can be mesmerized by the sexiness of would it change how you manage your them. That would take a very long time, and Coupled with the growing attention from home or in a hospital, and all of it produces For example, if you encounter someone Interoperability standards are always something new, like the IoT. It’s better to business? Could this specific application it’s not really necessary if you can simply Because, you see, a relationship is not just about a first party and a second party analyst firms such as Gartner and Forrester, data. Improving access to that data will create wearing Google Glass, you don’t know important in driving the successful adoption focus on what matters most about the IoT: its of the IoT enable you to improve attach a secure gateway device and start signing a deal on pieces of paper. It’s about people coming together this has turned the IoT into one of the most a tremendous amount of economic benefit for whether you are being recorded. There are of new technologies, and the IoT is no ability to bring more and better data into your operations, develop a new revenue stream, collecting data. to create ideas, value, and sometimes even history. talked about technology developments today. health care organizations and ultimately for certain social concerns about how much is too exception. For now, every deployment of the business. While the IoT will affect or achieve greater efficiencies? As an example, we have worked with According to at least one prediction, there will the person receiving health care. Medicine is much use of wearables in public spaces and IoT is still unique. HVAC units, say, will organizations in many ways, some general Those kinds of questions can elicit Daikin, a large Japanese air conditioner be 20 billion Internet-connected devices in awash in data, whether it is in a computer or defining what is an acceptable model for connect to one another in a different way than guidelines can help you choose where to focus information that builds awareness about manufacturer. They install many systems in use by 2020. involving imaging or wearable devices-but it interaction. This is one of the areas that medical devices or wearables will. The way your attention and spending. opportunities that might be hidden and how large buildings and wanted a way to improve we deploy the right resources to go after them. service and maintenance and perhaps even

watch the film

hcltech.com BEYOND TECHNOLOGY FOR TECHNOLOGY’S SAKE: A NEW APPROACH TO INNOVATION

IDEO’s Tim Brown explains how design thinking can improve the products and services of the Internet of Things.

Tim Brown is the CEO and president of An industrial designer by training, Brown IDEO, ranked as one of the most innovative has earned numerous design awards and has companies in the world by Fast Company exhibited work at the Axis Gallery, in Tokyo; and by business leaders surveyed by the the Design Museum, in London; and the Boston Consulting Group. Over more than 20 Museum of Modern Art, in New York. He years, IDEO has helped design the products, takes special interest in the convergence of services, spaces, and interactive experiences technology and the arts, and in the use of that have brought many new companies and design to promote the well-being of people in brands to life. emerging economies. His book on how design At the core of IDEO’s approach to thinking transforms organizations, Change innovation is what is known as “design by Design, was published by HarperBusiness thinking,” an approach from the world of in September 2009. He has written for industrial design that non-designers can use publications such as Harvard Business to address many kinds of challenges. Review and the Economist, and he frequently Organizations that embrace this speaks about the value of design thinking and approach-which combines what is desirable innovation to businesspeople and designers from a human point of view with what is around the world. technologically feasible and economically The following is an edited transcript of viable-can transform how they develop Brown’s recent phone conversation with CTO products, services, processes, and strategy. Straight Talk Editor-in-Chief Paul Hemp and Managing Editor Gil Press.

CTO Straight Talk | 44 What’s the best way to explain design rather than from a design perspective. And so that did things that didn’t really have a lot of Would you go so far as to say that to experience rapid acceleration, I expect, I love the fact that I can be somewhere and call thinking to non-designers like us? a lot of people had trouble using it. meaning. Why should we use this? How can we’ve had a quantum leap in over the next few decades. There is always a up a car and I’ll know, within a few moments, it help us? technology advancement, that we’re new technology to get excited about, but there how many minutes it’s going to be before it Design thinking is the set of tools and How might the principles of design The Internet of Things is also about Then along comes Nest, a start-up with a now on a plateau, a period of are always ones that are getting to the top of gets there and how much it’s going to cost. I methodologies that designers use to tackle thinking be applied to the Internet of connecting the physical and the digital worlds beautifully elegant concept for a thermostat. consolidation, in which we’re that S-curve. don’t have to worry about my credit cards or problems. The question design thinking asks Things? to create experiences we’ve never had before. It’s a beautiful little piece of home primarily taking advantage of this tipping. It’s the perfect example of bringing is, “How do you take a people-focused automation, although they don’t use this advancement to enable a design Can you apply what you’ve been the physical world and the digital world approach to problem solving, particularly In a number of ways. One aspect of the term. It’s also a beautiful example of the approach? talking about to any recent together in a simple and effective way. That is around the role of technology and the tools Internet of Things is connecting the physical Internet of Things, but they don’t call it that, experiences you’ve had with a the promise of the Internet of Things. and the environment we create for ourselves?” elements of our world much more directly to either. They just call it a simple way to I would suggest that that has always happened network of devices? communicating The approach depends on a pretty deep the digital elements. Essentially, we are manage the heating and cooling in your home. and will always happen, depending on what with one another? understanding of what people really do and augmenting experiences that we already have Then they come out with another product that technology you’re talking about. As an what they really want. It includes being able to today. In that situation, the challenges have is an elegant alternative to smoke alarms, and example, if you take the technological S-curve I am more and more pleasantly surprised The Internet of Things is also about digital enablement. That, potentially, connecting the physical to the digital? I think places where you make a difference today are take a disparate set of needs and results and to do with pulling that off without making life suddenly they’re selling themselves to Google of the automobile, the speed part of that when some system or even some piece of connecting the physical and the digital worlds prevents some things from happening. that could end up being one of the most at the level of user experience. Our synthesize those into solutions that are often more complex for users, allowing them to gain for $3 billion. They’re completely design-led. S-curve happened in the first 20 or 30 years of software anticipates my needs. It is a very to create experiences we’ve never had before. We’re quite interested in urban interesting benefits of the Internet of Things. computation capacity is so high that we can do dramatically different from the solutions that the benefits without too great a cost. If you There is almost no new technology in those the last century. While there were certainly prosaic example, and everybody uses it, but There, the challenge is conceiving of what environments and how the Internet of Things what we like most of the time. In many, many might emerge from a traditional product have to pull your phone out every time you products, but they’re very elegant continued technological advancements, the one of the applications I love – which is an those might be and understanding, again, the might allow us to make our cities more livable What recent changes in the way cases, it’s possible to create meaningful and development process. The tools and need to walk into a room, that could be great about the relationship between where assemblages of the right technology, very core of what automobiles do today they could Internet of Things application – is Uber [a real needs, the real potential benefits. The and more efficient. We’re also observing the people think about design and useful new products, new services, and new methodologies of design thinking, which have or it could be really annoying. Instead of things are made and where they’re used, much focused on, “What will make this a do 70 years ago. The vast majority of the mobile app that connects passengers with role of design in this instance is an exploratory potential of the Internet of Things in health product development made a device experiences just by changing the user evolved over decades, include live grabbing for a door handle and opening it, could change quite fundamentally through wonderful, new, elegant experience for growth of that industry, from then on, was drivers of vehicles for hire, enables online one. How can we quickly make prototypes, care. The Quantified Self movement — the like Nest possible? experience. That’s a design problem, right? prototyping, exploration, and improving ideas now I have to pull my phone out and program some of these technologies; they could have the user?” design-led. It was, “How are vehicles going to payment, and allows users to track the explore, iterate, and make sure these new idea that we can know more about ourselves I find it somewhat amusing when people through iteration in the real world. Design a code so that the door will open? Is that large implications for economies and jobs appeal to different needs in different parts of movement of the car they have been experiences will have an impact? I think because we can track ourselves, physically and I think it’s a combination of three things. One, talk about how important engineering is for thinking is a methodology that imbues the full easier or more difficult? If we aren’t careful, and so on. The Nest thermostat looks great, and the world?” assigned]. I think Uber has done a great job these two categories-improving existing ultimately mentally – is a subset of the we have a deeper understanding of what many start-ups in Silicon Valley. That’s true, spectrum of innovation we could make things less great for people, it’s very easy to use, but what are the That’s always happened with technologies. I connecting the real world to the digital world experiences and conceiving completely new Internet of Things that’s getting a lot of design does, when it’s working well, and what but what most of these engineers are doing is activities with a human- centered design rather than more great. Could you compare the design beneﬁts to the user of a smart think there are certain technologies now -that is, the real world of streets and cabs and experiences-are both places where design attention right now. I must say, I’m a little it can do. We’ve proliferated that across not very innovative stuff; it’s mostly cranking ethos. thinking approach to the traditional thermostat? where that’s happening, including the human beings and drivers to the digital world businesses and in the start-up world over the out code to deliver on the ideas. Most of the thinking will play an important role. skeptical about how valuable it is to track how approach in the context of the Internet. We’re just beginning to get involved, of maps and timing and mobility. They’ve past five to ten years-quite successfully, I really serious engineering that has already What is the downside of approaching many steps we take every day and how long Internet of Things? You want it to do a good job of making sure here at IDEO, in the design of some of the done that really well, and it makes getting think. I think that organizations, whether been done. We see it here in our organization. problems with a more traditional Have you gotten the chance, in your we sleep every night. I think we’re going to the house is at the right temperature at the biological technologies that allow us to build around town hugely easier than it used to be. have to go a little deeper than that, like, “What they are large corporations or start-ups, are In the past, we would conceive of a new design approach? own work or at IDEO, to engage in Well, take what used to be called “home right time. You want the technology to using biological materials. That space is going I think it’s a very simple example, but I love it. The challenge is to understanding more how design can make a and have a long and painful process of the Internet of Things? happens when you pop a pill that has an RFID automation.” It has been around for quite a become invisible. You want it to drop out of antenna on it so that we know what’s difference. That is very closely related to the working with the technical community to try Very often you end up with too much pull that off without long time-the idea that you could plug into your consciousness. I think that’s an Most of the work we do in this space is still happening when it gets into your body?” second trend. We now have a series of very to figure out how to make things work. Now I complexity. You get a focus on features and making life more washing machines and light switches and TVs important way of making things that could be fairly “out there,” and we’re still exploring it We just launched a piece of work called good examples of products and new know any number of designers who are able to functions rather than on benefits. We’ve all complex, allowing and you could talk to them and they could be valuable to us. They’re not things that we use. with our clients. Certainly we’ve looked at its “Made in the Future” (MadeInTheFuture.co). businesses that have design at their very core code and build their own stuff. That just experienced it, haven’t we? We’ve seen smart about things. There are a bunch of In other words, they take care of things that users to gain the role in the workplace and how it will affect the It looks at the future of making and -from the iPod and the iPhone from Apple to wasn’t possible a few years ago. I think the technologies that aren’t based on an organizations that have been working at this we used to have to apply our energy and our way we collaborate. A lot of collaboration is manufacturing, a lot of which is predicated on start-ups that have designers on the founding success we’ve had in the past five or ten years understanding of people’s modes of behavior, beneﬁts without too for a couple of decades, and yet there is hardly attention to. I think that’s a pretty interesting still face-to-face and physical; it’s still about the concepts of the Internet of Things, of team, like YouTube and Airbnb. The third in building out an infrastructure that allows how they use things, and what confounds great a cost. any take-up at all. You can certainly argue strategy, actually, for how you might conceive being together. It’s surprising how often you organizations and information moving back trend, which I think is most important and, in design to fit on top of it has really changed, them. A classic example is the VCR. that the technology wasn’t robust enough and of developing applications and devices. What walk into a room where people are and forth between the digital world and the many ways, most fundamental, is that the fundamentally, what can be done. Theoretically, the device was useful, but it was maybe not inexpensive enough, but I think a are the things that people have to apply physically collaborating and all you see are physical world. It’s clear that manufacturing technology world has done a very good job of developed from a technological perspective lot of it was because it was technology for attention to today but could happen invisibly building out the stack so that most of the Post-it Notes and flip charts, not a lot of and making things, and the way we think technology’s sake. It was lots of little gadgets if we designed them elegantly enough by

CTO Straight Talk | 46 that did things that didn’t really have a lot of Would you go so far as to say that to experience rapid acceleration, I expect, I love the fact that I can be somewhere and call meaning. Why should we use this? How can we’ve had a quantum leap in over the next few decades. There is always a up a car and I’ll know, within a few moments, You can argue that the it help us? technology advancement, that we’re new technology to get excited about, but there how many minutes it’s going to be before it We now have a series of very good technology wasn’t Then along comes Nest, a start-up with a now on a plateau, a period of are always ones that are getting to the top of gets there and how much it’s going to cost. I beautifully elegant concept for a thermostat. examples of products and new businesses that S-curve. don’t have to worry about my credit cards or robust enough and consolidation, in which we’re It’s a beautiful little piece of home that have design at their very core. primarily taking advantage of this tipping. It’s the perfect example of bringing maybe too expensive, automation, although they don’t use this advancement to enable a design Can you apply what you’ve been the physical world and the digital world but a lot of the term. It’s also a beautiful example of the approach? talking about to any recent together in a simple and effective way. That is problem was that it Internet of Things, but they don’t call it that, experiences you’ve had with a the promise of the Internet of Things. either. They just call it a simple way to I would suggest that that has always happened network of devices? communicating was technology for manage the heating and cooling in your home. and will always happen, depending on what with one another? technology’s sake. Then they come out with another product that technology you’re talking about. As an is an elegant alternative to smoke alarms, and example, if you take the technological S-curve I am more and more pleasantly surprised connecting the physical to the digital? I think places where you make a difference today are The Internet of Things is also about digital enablement. That, potentially, suddenly they’re selling themselves to Google of the automobile, the speed part of that when some system or even some piece of that could end up being one of the most at the level of user experience. Our connecting the physical and the digital worlds prevents some things from happening. for $3 billion. They’re completely design-led. S-curve happened in the first 20 or 30 years of software anticipates my needs. It is a very interesting benefits of the Internet of Things. computation capacity is so high that we can do to create experiences we’ve never had before. We’re quite interested in urban There is almost no new technology in those the last century. While there were certainly prosaic example, and everybody uses it, but what we like most of the time. In many, many There, the challenge is conceiving of what environments and how the Internet of Things products, but they’re very elegant continued technological advancements, the one of the applications I love – which is an What recent changes in the way cases, it’s possible to create meaningful and those might be and understanding, again, the might allow us to make our cities more livable about the relationship between where assemblages of the right technology, very core of what automobiles do today they could Internet of Things application – is Uber [a people think about design and useful new products, new services, and new real needs, the real potential benefits. The and more efficient. We’re also observing the things are made and where they’re used, much focused on, “What will make this a do 70 years ago. The vast majority of the mobile app that connects passengers with product development made a device experiences just by changing the user role of design in this instance is an exploratory potential of the Internet of Things in health could change quite fundamentally through wonderful, new, elegant experience for growth of that industry, from then on, was drivers of vehicles for hire, enables online like Nest possible? experience. That’s a design problem, right? one. How can we quickly make prototypes, care. The Quantified Self movement — the some of these technologies; they could have the user?” design-led. It was, “How are vehicles going to payment, and allows users to track the I find it somewhat amusing when people explore, iterate, and make sure these new idea that we can know more about ourselves large implications for economies and jobs appeal to different needs in different parts of movement of the car they have been I think it’s a combination of three things. One, talk about how important engineering is for experiences will have an impact? I think because we can track ourselves, physically and and so on. The Nest thermostat looks great, and the world?” assigned]. I think Uber has done a great job we have a deeper understanding of what many start-ups in Silicon Valley. That’s true, these two categories-improving existing ultimately mentally – is a subset of the it’s very easy to use, but what are the That’s always happened with technologies. I connecting the real world to the digital world design does, when it’s working well, and what but what most of these engineers are doing is experiences and conceiving completely new Internet of Things that’s getting a lot of Could you compare the design beneﬁts to the user of a smart think there are certain technologies now -that is, the real world of streets and cabs and it can do. We’ve proliferated that across not very innovative stuff; it’s mostly cranking experiences-are both places where design attention right now. I must say, I’m a little thinking approach to the traditional thermostat? where that’s happening, including the human beings and drivers to the digital world businesses and in the start-up world over the out code to deliver on the ideas. Most of the thinking will play an important role. skeptical about how valuable it is to track how approach in the context of the Internet. We’re just beginning to get involved, of maps and timing and mobility. They’ve past five to ten years-quite successfully, I really serious engineering that has already many steps we take every day and how long Internet of Things? You want it to do a good job of making sure here at IDEO, in the design of some of the done that really well, and it makes getting think. I think that organizations, whether been done. We see it here in our organization. Have you gotten the chance, in your we sleep every night. I think we’re going to the house is at the right temperature at the biological technologies that allow us to build around town hugely easier than it used to be. they are large corporations or start-ups, are In the past, we would conceive of a new design own work or at IDEO, to engage in have to go a little deeper than that, like, “What Well, take what used to be called “home right time. You want the technology to using biological materials. That space is going I think it’s a very simple example, but I love it. understanding more how design can make a and have a long and painful process of the Internet of Things? happens when you pop a pill that has an RFID automation.” It has been around for quite a become invisible. You want it to drop out of difference. That is very closely related to the working with the technical community to try antenna on it so that we know what’s long time-the idea that you could plug into your consciousness. I think that’s an second trend. We now have a series of very to figure out how to make things work. Now I Most of the work we do in this space is still happening when it gets into your body?” washing machines and light switches and TVs important way of making things that could be good examples of products and new know any number of designers who are able to fairly “out there,” and we’re still exploring it We just launched a piece of work called and you could talk to them and they could be valuable to us. They’re not things that we use. businesses that have design at their very core code and build their own stuff. That just with our clients. Certainly we’ve looked at its “Made in the Future” (MadeInTheFuture.co). smart about things. There are a bunch of In other words, they take care of things that -from the iPod and the iPhone from Apple to wasn’t possible a few years ago. I think the role in the workplace and how it will affect the It looks at the future of making and organizations that have been working at this we used to have to apply our energy and our start-ups that have designers on the founding success we’ve had in the past five or ten years way we collaborate. A lot of collaboration is manufacturing, a lot of which is predicated on for a couple of decades, and yet there is hardly attention to. I think that’s a pretty interesting team, like YouTube and Airbnb. The third in building out an infrastructure that allows still face-to-face and physical; it’s still about the concepts of the Internet of Things, of any take-up at all. You can certainly argue strategy, actually, for how you might conceive trend, which I think is most important and, in design to fit on top of it has really changed, being together. It’s surprising how often you organizations and information moving back that the technology wasn’t robust enough and of developing applications and devices. What many ways, most fundamental, is that the fundamentally, what can be done. walk into a room where people are and forth between the digital world and the maybe not inexpensive enough, but I think a are the things that people have to apply technology world has done a very good job of physically collaborating and all you see are physical world. It’s clear that manufacturing lot of it was because it was technology for attention to today but could happen invisibly building out the stack so that most of the Post-it Notes and flip charts, not a lot of and making things, and the way we think technology’s sake. It was lots of little gadgets if we designed them elegantly enough by

CTO Straight Talk | 48 that did things that didn’t really have a lot of Would you go so far as to say that to experience rapid acceleration, I expect, I love the fact that I can be somewhere and call meaning. Why should we use this? How can we’ve had a quantum leap in over the next few decades. There is always a up a car and I’ll know, within a few moments, it help us? technology advancement, that we’re new technology to get excited about, but there how many minutes it’s going to be before it I think Uber has Then along comes Nest, a start-up with a now on a plateau, a period of are always ones that are getting to the top of gets there and how much it’s going to cost. I beautifully elegant concept for a thermostat. consolidation, in which we’re that S-curve. don’t have to worry about my credit cards or done a great job It’s a beautiful little piece of home primarily taking advantage of this tipping. It’s the perfect example of bringing connecting the automation, although they don’t use this advancement to enable a design Can you apply what you’ve been the physical world and the digital world real world to the term. It’s also a beautiful example of the approach? talking about to any recent together in a simple and effective way. That is digital world – that Internet of Things, but they don’t call it that, experiences you’ve had with a the promise of the Internet of Things. either. They just call it a simple way to I would suggest that that has always happened network of devices? communicating is, the real world manage the heating and cooling in your home. and will always happen, depending on what with one another? of streets and cabs Then they come out with another product that technology you’re talking about. As an and human beings is an elegant alternative to smoke alarms, and example, if you take the technological S-curve I am more and more pleasantly surprised connecting the physical to the digital? I think places where you make a difference today are and drivers to the The Internet of Things is also about digital enablement. That, potentially, suddenly they’re selling themselves to Google of the automobile, the speed part of that when some system or even some piece of that could end up being one of the most at the level of user experience. Our connecting the physical and the digital worlds prevents some things from happening. for $3 billion. They’re completely design-led. S-curve happened in the first 20 or 30 years of software anticipates my needs. It is a very digital world of interesting benefits of the Internet of Things. computation capacity is so high that we can do to create experiences we’ve never had before. We’re quite interested in urban There is almost no new technology in those the last century. While there were certainly prosaic example, and everybody uses it, but maps and timing what we like most of the time. In many, many There, the challenge is conceiving of what environments and how the Internet of Things products, but they’re very elegant continued technological advancements, the one of the applications I love – which is an and mobility. What recent changes in the way cases, it’s possible to create meaningful and those might be and understanding, again, the might allow us to make our cities more livable about the relationship between where assemblages of the right technology, very core of what automobiles do today they could Internet of Things application – is Uber [a people think about design and useful new products, new services, and new real needs, the real potential benefits. The and more efficient. We’re also observing the things are made and where they’re used, much focused on, “What will make this a do 70 years ago. The vast majority of the mobile app that connects passengers with product development made a device experiences just by changing the user role of design in this instance is an exploratory potential of the Internet of Things in health could change quite fundamentally through wonderful, new, elegant experience for growth of that industry, from then on, was drivers of vehicles for hire, enables online like Nest possible? experience. That’s a design problem, right? one. How can we quickly make prototypes, care. The Quantified Self movement — the some of these technologies; they could have the user?” design-led. It was, “How are vehicles going to payment, and allows users to track the I find it somewhat amusing when people explore, iterate, and make sure these new idea that we can know more about ourselves large implications for economies and jobs appeal to different needs in different parts of movement of the car they have been I think it’s a combination of three things. One, talk about how important engineering is for experiences will have an impact? I think because we can track ourselves, physically and and so on. The Nest thermostat looks great, and the world?” assigned]. I think Uber has done a great job we have a deeper understanding of what many start-ups in Silicon Valley. That’s true, these two categories-improving existing ultimately mentally – is a subset of the it’s very easy to use, but what are the That’s always happened with technologies. I connecting the real world to the digital world design does, when it’s working well, and what but what most of these engineers are doing is experiences and conceiving completely new Internet of Things that’s getting a lot of Could you compare the design beneﬁts to the user of a smart think there are certain technologies now -that is, the real world of streets and cabs and it can do. We’ve proliferated that across not very innovative stuff; it’s mostly cranking experiences-are both places where design attention right now. I must say, I’m a little thinking approach to the traditional thermostat? where that’s happening, including the human beings and drivers to the digital world businesses and in the start-up world over the out code to deliver on the ideas. Most of the thinking will play an important role. skeptical about how valuable it is to track how approach in the context of the Internet. We’re just beginning to get involved, of maps and timing and mobility. They’ve past five to ten years-quite successfully, I really serious engineering that has already many steps we take every day and how long Internet of Things? You want it to do a good job of making sure here at IDEO, in the design of some of the done that really well, and it makes getting think. I think that organizations, whether been done. We see it here in our organization. Have you gotten the chance, in your we sleep every night. I think we’re going to the house is at the right temperature at the biological technologies that allow us to build around town hugely easier than it used to be. they are large corporations or start-ups, are In the past, we would conceive of a new design own work or at IDEO, to engage in have to go a little deeper than that, like, “What Well, take what used to be called “home right time. You want the technology to using biological materials. That space is going I think it’s a very simple example, but I love it. understanding more how design can make a and have a long and painful process of the Internet of Things? happens when you pop a pill that has an RFID automation.” It has been around for quite a become invisible. You want it to drop out of difference. That is very closely related to the working with the technical community to try antenna on it so that we know what’s long time-the idea that you could plug into your consciousness. I think that’s an second trend. We now have a series of very to figure out how to make things work. Now I Most of the work we do in this space is still happening when it gets into your body?” washing machines and light switches and TVs important way of making things that could be good examples of products and new know any number of designers who are able to fairly “out there,” and we’re still exploring it We just launched a piece of work called and you could talk to them and they could be valuable to us. They’re not things that we use. businesses that have design at their very core code and build their own stuff. That just with our clients. Certainly we’ve looked at its “Made in the Future” (MadeInTheFuture.co). smart about things. There are a bunch of In other words, they take care of things that There is always a new technology to get excited -from the iPod and the iPhone from Apple to wasn’t possible a few years ago. I think the role in the workplace and how it will affect the It looks at the future of making and organizations that have been working at this we used to have to apply our energy and our start-ups that have designers on the founding success we’ve had in the past five or ten years about, but there are always ones that are getting to way we collaborate. A lot of collaboration is manufacturing, a lot of which is predicated on for a couple of decades, and yet there is hardly attention to. I think that’s a pretty interesting team, like YouTube and Airbnb. The third in building out an infrastructure that allows the top of that S-curve. still face-to-face and physical; it’s still about the concepts of the Internet of Things, of any take-up at all. You can certainly argue strategy, actually, for how you might conceive trend, which I think is most important and, in design to fit on top of it has really changed, being together. It’s surprising how often you organizations and information moving back that the technology wasn’t robust enough and of developing applications and devices. What many ways, most fundamental, is that the fundamentally, what can be done. walk into a room where people are and forth between the digital world and the maybe not inexpensive enough, but I think a are the things that people have to apply technology world has done a very good job of physically collaborating and all you see are physical world. It’s clear that manufacturing lot of it was because it was technology for attention to today but could happen invisibly building out the stack so that most of the Post-it Notes and flip charts, not a lot of and making things, and the way we think technology’s sake. It was lots of little gadgets if we designed them elegantly enough by

CTO Straight Talk | 50 JOYSTICK // 7:00AM SOARING ON THE WINGS OF VISUAL All systems go! Let's race! Roger, Alpha, FLIGHT SIMULATIONS Charlie, Echo! First-class visual training systems and networking expertise make for a CONSOLE // 7:00AM high-ﬂying opportunity. No! There will be no race! JOYSTICK // 7:02AM POSITION: Oh, come on! You never let me race. Vice President and General Manager of Simulation and Training Solutions CONSOLE // 7:02AM COMPANY: That's because there literally IS no race! Rockwell Collins This is a ﬂight simulator, remember?! WORKS FROM: Sterling, Virginia

PROFESSIONAL BACKGROUND: LeAnn Ridgeway joined Rockwell Collins in 1988 and took on her current responsibilities for the company’s simulation and training business in 2011. In this role, she oversees technical publications, re-hosted avionics, computer and desktop training, training devices, and visual systems. She came to this position from roles in the supply chain and service businesses. Previous positions include vice president and LEANN RIDGEWAY managing director, Americas, for Rockwell Collins, where she was responsible for leading business development and operations for the [email protected] company’s service operations in North and South America; and senior director, Engineering Services, for Rockwell Collins, leading a global network of 400 ﬁeld service engineers and running the Network Operations Center, providing 24/7 technical support, network monitoring, data capture, trend analysis, and help desk services. Additionally, she led the company’s Integrated Logistics Support Organization. Ridgeway is a member of the National Training and Simulation Association, the National Defense Industrial Association, and Women in Defense, Washington, D.C. Chapter, and she is the Enterprise Chair for the Women’s Forum at Rockwell Collins.

EDUCATION: Bachelor’s degree in Business and Economics from Mt. Mercy College; Master of Business Administration from St. Ambrose University

PERSONAL PASSIONS: Promoting the advancement of women in the workplace, global travel, scuba diving, bicycling

CTO Straight Talk | 52 world use our visual systems, too. All told, to safely land a plane with 400 lives on board, challenge and an exciting opportunity. The these systems drive about 60% of my business then you’ve failed to get the training outcomes challenge is in integrating discrete pieces of portfolio right now. you’d hoped for. To circumvent that situation training equipment or events across the Believe me, if you were a pilot in one of Believe me, if you were a pilot in one of our and better measure effectiveness, our network. The opportunity is to enable a high our simulators, you would feel like you simulators, you would feel like you were flying instructor-operator systems work in sync with quality of training that produces a desirable the real aircraft. And that’d be the case the training platforms. outcome not just for one person but for people were ﬂying the real aircraft. regardless of whether you’re in one of our Say I’m an instructor, and my student is working on joint, interoperable assignments. full-flight simulators or in a simulator that training in a cockpit simulator. I have the In other words, this isn’t just about one guy doesn’t use motion. With the fidelity and ability to change the scenario in the cockpit. I in a cockpit or at a ship’s control panel any quality, just putting you in the seat with a might throw a thunderstorm at her or have longer. It’s the guy in the airplane, who has to screen and an image generator would do it- her aircraft lose an engine or encounter wind be able to talk to his counterpart in the this I know from my own experience. shear, for example. My instructor-operator submarine and in the ship on the surface and I’ve never been much of a video game system records her reactions and runs in the tanks on the ground and-oh, by the way player, and the whole motion thing disturbs real-time analysis on them. If it sees that her -to the soldier at the front whose job it is to When military watchers consider the Therein lie some of our biggest challenges as more sophisticated training involves live running your live asset is perfectly clear and my inner ear, yet here I am leading simulation reflexes were off and that reacting to the call in the fire. Your training scenario needs to Pentagon’s F-35 Joint Strike Fighter, they see well as opportunities. simulation, virtual simulation, and what we sunny? How does the intersection of the roads and training! Naturally, the first thing proud situation took her way too long, it would then account for them all, telling where they all a next-generation warplane and the world’s call “constructive” simulation, where happen, so the JTAC and the pilot coordinates need to be and what they need to do in order most advanced weapons systems in flight Trickery in the Cockpit simulated players use simulated systems in a are in the same place? to accomplish the mission in the most today. When I look at it, I see the realization of synthetic environment. As we work on this challenge at Rockwell effective way. my engineering team’s “If we can think it, we When you’re in this business, your goal is to In a recent demonstration of this live- Collins, we have the benefit of the company’s can do it,” mind-set. train at the maximum level of effectiveness virtual-constructive simulation and training, years of experience working in avionics and in The visual training platform that Rockwell and efficiency. The trick, made more difficult You might think creating this realism is all we involved a joint terminal attack controller, networking aircraft in the sky. We are a Collins Simulation and Training Solutions or JTAC-the frontline soldier providing attack company built on communications products. when facing financial constraints such as about cool graphics, like those you ﬁnd in created for the Joint Strike Fighter training those of today’s U.S. Department of Defense, coordinates to combat aircraft-in a virtual If you think about it, what is an airplane now represents the state-of-the art in visual is balancing effectiveness with fidelity popular video games. Cool graphics do make training room in the UK, a pilot in a cockpit if not a big network flying through the sky? It’s training systems. We took requirements that requirements. In order to be judged truly a big difference, but they’re not the only simulator in Cedar Rapids, Iowa, and a real full of information, and it’s transmitting this pilot flying an airplane over nearby Iowa City. information via satellite-air to air, air to had never before been requested, let alone effective at training, you’ve got to be able to piece of the puzzle. conceived of, and made them a reality. The immerse people fully in the environment-to As observers, we could see the JTAC visuals as ground, and, with our December 2013 F-35 pilots aren’t untested 18 year olds. trick their eyes and brains into thinking the he guided that airplane-the live asset-on acquisition of ARINC, ground to ground. They’ve got years of experience flying, and it’s simulation is real. High fidelity translates where to drop a munition. And from his The acquisition of ARINC, which handles a been gratifying to hear them say the training to realism. screen we could see if that pilot hit the target. lot of air traffic control communications and simulated experience are unlike any You might think creating this realism is all From the training perspective, the challenge is around the world, puts the last piece in place they’ve ever had. about cool graphics, like those you find in making that look real enough so that the for secure networked communications. employees want to do when they have build in more scenarios to overcome that But there’s been no resting on our laurels. In popular video games. Cool graphics do make a JTAC’s heart is racing as he believes he’s (Rockwell Collins has the U.S.’s highest-level something new is to throw me in the simulator training deficit. This is all done in real time, engineering simulation and training platforms big difference, but they’re not the only piece of really under fire and he’s really saving people security authorization for secure mission to check it out. I’ve gotten better over the past which is an advantage for achieving optimal today, we must be able to support joint, the puzzle. by calling in the proper coordinates for the transmissions.) You can see from the three years. outcomes for the trainee. interoperable mission scenarios that play out Rockwell Collins’s visual systems comprise strike. And that guy flying over Iowa City in training scenario I described just how Of course, measuring how green somebody As valuable as this type of individual in real time and among disparate locations. four components: a display, the data used in the airplane-his displays had to show a remote important these communications pieces are. turns isn’t really the best way to judge training is, it pales in comparison to the For Rockwell Collins, building the effective creating the visuals, the image generator, and village in Afghanistan where he was dropping Networked training, with its difficult, simulator effectivenes. Nor, for that matter, is training that’s possible in a networked From Iowa to Afghanistan and efficient simulation and training the projector. These all go into creating the his munition, the same visual the guy in the complex scenarios, is indeed a great testing a pilot’s heart rate or using other environment. The simulation and training platforms of tomorrow is as much about high-fidelity simulations for the F-35 training cockpit simulator had to see. opportunity for Rockwell Collins. biometrics. If you have a pilot who basically industry in the aerospace and defense market If that sounds complicated, it is. But it’s not seamlessly weaving together live, virtual, I mentioned, as well as for Black Hawk and Think about the complexity involved. How We see the benefit of that whole value knows the pattern of the training and doesn’t is becoming Internet-based and very much nearly as complicated as the type of training and constructive environments as it is about Apache helicopter flight training, for example. do you make it look like there are clouds and a stream, from design and development in feel any fear when the engine fails and he has network-centric, which is both a difficult enabled with networked connectivity. This understanding the nuances of networking. And most commercial airlines around the thunderstorm if the place where you’re avionics all the way through the life cycle,

CTO Straight Talk | 54

which includes service and support as well as simulation and training. And in Simulation and Training Solutions, we know that by having Rockwell Collins in the driver’s seat on the avionics, we’re in the best position to achieve appropriate training outcomes. Who’s to argue with those F-35 pilots, who have told us they’re the most equipped and well trained they’ve ever been in their careers? world use our visual systems, too. All told, to safely land a plane with 400 lives on board, challenge and an exciting opportunity. The these systems drive about 60% of my business then you’ve failed to get the training outcomes challenge is in integrating discrete pieces of portfolio right now. you’d hoped for. To circumvent that situation training equipment or events across the Taking Flight in Emerging The simulation and training industry in the Believe me, if you were a pilot in one of our and better measure effectiveness, our network. The opportunity is to enable a high Markets simulators, you would feel like you were flying instructor-operator systems work in sync with quality of training that produces a desirable aerospace and defense market is becoming the real aircraft. And that’d be the case the training platforms. outcome not just for one person but for people Rockwell Collins believes that the key Internet-based and very much network-centric, regardless of whether you’re in one of our Say I’m an instructor, and my student is working on joint, interoperable assignments. to success in emerging markets is to which is both a difﬁcult challenge and an full-flight simulators or in a simulator that training in a cockpit simulator. I have the In other words, this isn’t just about one guy provide technology transfer, not to doesn’t use motion. With the fidelity and ability to change the scenario in the cockpit. I in a cockpit or at a ship’s control panel any exciting opportunity. “build it here and ship it there.” quality, just putting you in the seat with a might throw a thunderstorm at her or have longer. It’s the guy in the airplane, who has to screen and an image generator would do it- her aircraft lose an engine or encounter wind be able to talk to his counterpart in the That means we use a “clean sheet” this I know from my own experience. shear, for example. My instructor-operator submarine and in the ship on the surface and approach, giving partners a I’ve never been much of a video game system records her reactions and runs in the tanks on the ground and-oh, by the way simulation open architecture player, and the whole motion thing disturbs real-time analysis on them. If it sees that her -to the soldier at the front whose job it is to structure on which they can base more sophisticated training involves live running your live asset is perfectly clear and my inner ear, yet here I am leading simulation reflexes were off and that reacting to the call in the fire. Your training scenario needs to development of their aircraft and simulation, virtual simulation, and what we sunny? How does the intersection of the roads and training! Naturally, the first thing proud situation took her way too long, it would then account for them all, telling where they all simulation and training platforms. call “constructive” simulation, where happen, so the JTAC and the pilot coordinates need to be and what they need to do in order For training, this comprises a basic simulated players use simulated systems in a are in the same place? to accomplish the mission in the most simulator unit that’s agnostic to any synthetic environment. As we work on this challenge at Rockwell effective way. aircraft cockpit platform and In a recent demonstration of this live- Collins, we have the benefit of the company’s aircraft-specific models that lock on virtual-constructive simulation and training, years of experience working in avionics and in in front of that unit. we involved a joint terminal attack controller, networking aircraft in the sky. We are a or JTAC-the frontline soldier providing attack company built on communications products. This is what we’ve done in China, with coordinates to combat aircraft-in a virtual If you think about it, what is an airplane now What is an airplane now if our joint venture with Beijing Bluesky training room in the UK, a pilot in a cockpit if not a big network flying through the sky? It’s not a big network ﬂying Aviation Technology, and what we simulator in Cedar Rapids, Iowa, and a real full of information, and it’s transmitting this pilot flying an airplane over nearby Iowa City. information via satellite-air to air, air to through the sky? It’s full of hope to do in countries like Brazil, India, and Russia. We’re taking a true As observers, we could see the JTAC visuals as ground, and, with our December 2013 information, and it’s global market approach, putting he guided that airplane-the live asset-on acquisition of ARINC, ground to ground. transmitting this design, engineering, where to drop a munition. And from his The acquisition of ARINC, which handles a screen we could see if that pilot hit the target. lot of air traffic control communications information via satellite-air manufacturing-the whole value chain -in place for indigenous development. From the training perspective, the challenge is around the world, puts the last piece in place to air, air to ground, and making that look real enough so that the for secure networked communications. employees want to do when they have build in more scenarios to overcome that ground to ground. JTAC’s heart is racing as he believes he’s (Rockwell Collins has the U.S.’s highest-level something new is to throw me in the simulator training deficit. This is all done in real time, really under fire and he’s really saving people security authorization for secure mission to check it out. I’ve gotten better over the past which is an advantage for achieving optimal by calling in the proper coordinates for the transmissions.) You can see from the three years. outcomes for the trainee. strike. And that guy flying over Iowa City in training scenario I described just how Of course, measuring how green somebody As valuable as this type of individual the airplane-his displays had to show a remote important these communications pieces are. turns isn’t really the best way to judge training is, it pales in comparison to the village in Afghanistan where he was dropping Networked training, with its difficult, simulator effectivenes. Nor, for that matter, is training that’s possible in a networked From Iowa to Afghanistan his munition, the same visual the guy in the complex scenarios, is indeed a great testing a pilot’s heart rate or using other environment. The simulation and training cockpit simulator had to see. opportunity for Rockwell Collins. biometrics. If you have a pilot who basically industry in the aerospace and defense market If that sounds complicated, it is. But it’s not Think about the complexity involved. How We see the benefit of that whole value knows the pattern of the training and doesn’t is becoming Internet-based and very much nearly as complicated as the type of training do you make it look like there are clouds and a stream, from design and development in feel any fear when the engine fails and he has network-centric, which is both a difficult enabled with networked connectivity. This thunderstorm if the place where you’re avionics all the way through the life cycle,

CTO Straight Talk | 56

which includes service and support as well as simulation and training. And in Simulation and Training Solutions, we know that by having Rockwell Collins in the driver’s seat on the avionics, we’re in the best position to achieve appropriate training outcomes. Who’s to argue with those F-35 pilots, who have told us they’re the most equipped and well trained they’ve ever been in their careers? world use our visual systems, too. All told, to safely land a plane with 400 lives on board, challenge and an exciting opportunity. The these systems drive about 60% of my business then you’ve failed to get the training outcomes challenge is in integrating discrete pieces of portfolio right now. you’d hoped for. To circumvent that situation training equipment or events across the Believe me, if you were a pilot in one of our and better measure effectiveness, our network. The opportunity is to enable a high simulators, you would feel like you were flying instructor-operator systems work in sync with quality of training that produces a desirable the real aircraft. And that’d be the case the training platforms. outcome not just for one person but for people regardless of whether you’re in one of our Say I’m an instructor, and my student is working on joint, interoperable assignments. full-flight simulators or in a simulator that training in a cockpit simulator. I have the In other words, this isn’t just about one guy doesn’t use motion. With the fidelity and ability to change the scenario in the cockpit. I in a cockpit or at a ship’s control panel any quality, just putting you in the seat with a might throw a thunderstorm at her or have longer. It’s the guy in the airplane, who has to screen and an image generator would do it- her aircraft lose an engine or encounter wind be able to talk to his counterpart in the this I know from my own experience. shear, for example. My instructor-operator submarine and in the ship on the surface and I’ve never been much of a video game system records her reactions and runs in the tanks on the ground and-oh, by the way player, and the whole motion thing disturbs real-time analysis on them. If it sees that her -to the soldier at the front whose job it is to more sophisticated training involves live running your live asset is perfectly clear and my inner ear, yet here I am leading simulation reflexes were off and that reacting to the call in the fire. Your training scenario needs to simulation, virtual simulation, and what we sunny? How does the intersection of the roads and training! Naturally, the first thing proud situation took her way too long, it would then account for them all, telling where they all call “constructive” simulation, where happen, so the JTAC and the pilot coordinates need to be and what they need to do in order simulated players use simulated systems in a are in the same place? to accomplish the mission in the most synthetic environment. As we work on this challenge at Rockwell effective way. In a recent demonstration of this live- Collins, we have the benefit of the company’s virtual-constructive simulation and training, years of experience working in avionics and in we involved a joint terminal attack controller, networking aircraft in the sky. We are a or JTAC-the frontline soldier providing attack company built on communications products. coordinates to combat aircraft-in a virtual If you think about it, what is an airplane now training room in the UK, a pilot in a cockpit if not a big network flying through the sky? It’s simulator in Cedar Rapids, Iowa, and a real full of information, and it’s transmitting this pilot flying an airplane over nearby Iowa City. information via satellite-air to air, air to As observers, we could see the JTAC visuals as ground, and, with our December 2013 he guided that airplane-the live asset-on acquisition of ARINC, ground to ground. where to drop a munition. And from his The acquisition of ARINC, which handles a screen we could see if that pilot hit the target. lot of air traffic control communications From the training perspective, the challenge is around the world, puts the last piece in place making that look real enough so that the for secure networked communications. employees want to do when they have build in more scenarios to overcome that JTAC’s heart is racing as he believes he’s (Rockwell Collins has the U.S.’s highest-level something new is to throw me in the simulator training deficit. This is all done in real time, really under fire and he’s really saving people security authorization for secure mission to check it out. I’ve gotten better over the past which is an advantage for achieving optimal by calling in the proper coordinates for the transmissions.) You can see from the three years. outcomes for the trainee. strike. And that guy flying over Iowa City in training scenario I described just how Of course, measuring how green somebody As valuable as this type of individual the airplane-his displays had to show a remote important these communications pieces are. turns isn’t really the best way to judge training is, it pales in comparison to the village in Afghanistan where he was dropping Networked training, with its difficult, simulator effectivenes. Nor, for that matter, is training that’s possible in a networked From Iowa to Afghanistan his munition, the same visual the guy in the complex scenarios, is indeed a great testing a pilot’s heart rate or using other environment. The simulation and training cockpit simulator had to see. opportunity for Rockwell Collins. biometrics. If you have a pilot who basically industry in the aerospace and defense market If that sounds complicated, it is. But it’s not Think about the complexity involved. How We see the benefit of that whole value knows the pattern of the training and doesn’t is becoming Internet-based and very much nearly as complicated as the type of training do you make it look like there are clouds and a stream, from design and development in feel any fear when the engine fails and he has network-centric, which is both a difficult enabled with networked connectivity. This thunderstorm if the place where you’re avionics all the way through the life cycle,

We see the beneﬁt of that whole value stream, from design and development in avionics all the way through the life cycle, which includes service and support as well as simulation and training.

which includes service and support as well as simulation and training. And in Simulation and Training Solutions, we know that by STRAIGHT TALK AD having Rockwell Collins in the driver’s seat on the avionics, we’re in the best position to · Building the effective and efficient 7000 achieve appropriate training outcomes. Who’s simulation and training platforms of to argue with those F-35 pilots, who have told tomorrow is as much about seamlessly us they’re the most equipped and well trained weaving together live, virtual, and they’ve ever been in their careers? constructive environments as it is about understanding the nuances of networking.

· The simulation and training industry in the aerospace and defense market is becoming Internet-based and very much network-centric, which is both a difficult challenge and an exciting opportunity.

· There is lot of value in managing the That’s the number of IT leaders – and thought leaders – who have engaged with the award-winning CIO Straight entire value stream, from avionics Talk in the past year, whether at events, as LinkedIn group members, or as magazine contributors and readers. design and development all the way Impressive? through the life cycle, which includes service and support as well as You ain’t seen nothin’ yet. From the publishers of CIO Straight Talk comes a brand-new engagement platform simulation and training. that will bring together CTOs and product engineering leaders from around the globe. CTO Straight Talk will drive conversations and ideas for creating world class products and experiences. Join the CTO Straight Talk LinkedIn community.

Join our group lnkd.in/CTOStraightTalk INNOVATING WESTERN UNION INTO ITS THIRD CENTURY

Revolutionizing the technology footprint to forge deeper relationships with customers

ATM MACHINE // 7:00AM POSITION: Hey look! A customer approaches! Chief Technology Ofﬁcer and Senior Vice President, Digital Product Engineering CCTV CAMERA // 7:00AM COMPANY: No more pranks this time. Western Union

ATM MACHINE // 7:01AM WORKS FROM: San Francisco, California I don’t know what you’re talking about. PROFESSIONAL BACKGROUND: CCTV CAMERA // 7:01AM As Senior Vice President and Chief Technology Ofﬁcer for Western Union, Sanjay Saraf leads a team responsible for You delay payments just to see them panic! developing next-generation web, mobile, digital wallet, and stored-value payment products and services. Saraf also leads the company’s technology strategy and the development of its ATM MACHINE // 7:02AM SANJAY SARAF fraud and risk management solutions, and he develops platforms based on Hadoop for online personalization and Stop spying on me! [email protected] forensics analysis. CCTV CAMERA // 7:02AM Prior to Western Union, Saraf was Vice President of eBusiness Umm, that’s my job. at Symantec Corporation, where he was responsible for managing a global e-commerce platform that generated over $2 billion in annual revenue. Prior to Symantec, Saraf spent a long career at management consulting ﬁrms in Delhi.

EDUCATION: Master’s degree in Chemical Engineering from the University of Wyoming; Bachelor of Science from Bombay University

PERSONAL PASSIONS: New challenges, building complex projects from the ground up, hiking, climbing, and skiing with his nine-year-old daughter

CTO Straight Talk | 60 Western Union is on a new mission. We The Netherlands, for example, is very believe our global retail network and deep modern, but the adoption of credit cards is understanding of what it takes to move money limited. People prefer direct credit or debit, Our CEO is a big believer in the promise nearly anywhere in the world-combined with even for online transactions. As we modernize a singular focus on the customer-provide a our payment systems to meet those kinds of of data analytics-not only for our business great foundation for digital transformation. local needs, we see an immediate uptick in but also for how we address social issues And we are harnessing the best available customer satisfaction scores. and effect positive change for consumers technology for the task so that we can better Our core strength is in cross-border money worldwide. understand our customers and their needs. transfer. Nobody in the industry can match The truth is that Western Union has always our scale, size, and the complexity of the been an innovator, in technologies such as cross-border elements we deliver. Today, our microwave data transmission, automated focus is on enhancing and modernizing our switching and networks, communication methods to meet current demands, and the We have an opportunity to unlock the transformation. We can use data to observe product definition, including business case or when they arrive in order to quickly complete satellites, and more. Today, technologies are biggest part of that is introducing more digital potential of the global scale of our business behavioral changes in sending and receiving gap analysis, and actual engineering. the transaction. evolving faster than ever, and so are we. capabilities, whether on the web or through and customer base. Our CEO is a big believer and to deliver a customer experience tailored The way we are architecting our solution in the promise of data analytics-not only for to individual users across multiple channels leverages our feet-on-the-ground knowledge Developing Frictionless Processes our business but also for how we address (retail, online, mobile, etc.). and capability. By taking a modular social issues and effect positive change for Data can also help us see the economic development approach, we can deliver a Corporate evolution is not a single strategy or Corporate evolution is not a single strategy consumers worldwide. predictors and migration shifts that can version of our applications for an individual set of rules. Nor is it about technology for or set of rules. Nor is it about technology for Western Union has been using data for a help shape business priorities, such as country, such as Germany. That approach technology’s sake. It’s a way of doing business. long time for tasks like segmentation and for regional expansion. may involve slightly more complexity and It’s awareness and a commitment to technology’s sake. It’s a way of doing insights into the propensities of individuals to A lot of the data we have and are already effort to account for local and regional understanding and meeting customer needs. business for and meeting customers' needs. conduct specific kinds of transactions. We’re using is structured. We are using it to look at regulatory requirements while still delivering And it’s about helping the different facets of now taking it to the next level. We are focusing customer segmentation and propensity to are unique to Western Union and must be core functionality to the consumer. the company do their jobs better and deliver on data complexity, large data sets from buy. The new element we are bringing in is protected. Outsourcing works well in cases We are also moving aggressively on mobile. results. multiple systems that are both structured and unstructured data from web and mobile where design standards have been defined We want to optimize that experience so users Perhaps the biggest challenge is stepping unstructured. We are looking at legacy transactions. We are trying to marry that and you are executing to a well-defined have the option of using a specific app as well back to answer the essential questions: Are we systems integration and alignment with new unstructured data to the structured data in a architecture. We have a combination of both. as a browser. The work we have done in that doing enough? Are we doing too much? Are When I worked for companies such as mobile devices, and making it easier for mobile and online capabilities. Hadoop-based system so that we can mine in We are using some strategic service regard has already paid off. The feedback has we focused on the things our customers need? Symantec, I had to explain to my mother what customers to transact. That is the journey we We have a staff of data scientists who are a faster and more targeted fashion to providers; HCL is one of them. Especially in gone from just average to extremely positive Are we helping to propel our the company is and what it does. By contrast, are on. It is web, mobility, and global leveraging the power of data analytics to understand customer segments, buying the digital space, I am working closely with in less than eight months; our app now has a business forward? when I took the CTO position at Western payments, without forgetting the strength of identify the trends that will shape our patterns, and preferred methods of payment. HCL, which is accustomed to building nearly four-star rating. So far, that is just in I work with our Global CIO to address those Union, she immediately recognized the name our existing retail network. We want to drive business moving forward. We see the For example, a given consumer will usually products for consumers. the United States and Australia, so there are questions and connect technology capabilities and was sure I was doing the right thing. that omnichannel capability and stitch potential of predictive analytics for consumer perform certain types of transactions on the Delivery is one area where we are adopting further opportunities for us. to their business strategies.We, in turn, work That’s just one example of Western Union’s everything together more seamlessly without engagement and advanced data mining for same day of the month. We can drive that methods that bring product development and The great thing is that many elements of our with colleagues across the business-senior global reach and brand value. losing our existing strengths. risk management. Such efforts can analysis close to real time so that we can engineering closer together. Specifically, we digital transformation are applicable to the management in the regions, marketing, sales, In 2013, we completed 242 million support our decision cycles and contribute to provide the right offers at the right time. have adopted agile, sprint-based, and part of our core business that still relies on our finance, legal, compliance, and other areas of consumer-to-consumer transactions, moving Taking Advantage of Data Analytics strategic business planning and, ultimately, to scrum-based approaches. That is core to what retail network and retail agents. For example, the company-to identify where we can $82 billion of principal, and we completed delivering a consistent omnichannel Going Modular and Mobile we do. We are not 100% there, but we do have we want users who need to pay in cash to be leverage the power of technology to transform 459 million business payments. The company Although we don’t often look at it this way, experience. In fact, our data is an integral part the ability to fast-track that methodology, and able to prepopulate forms from their devices their operations, create a better consumer and has a passion to make a difference in the lives of our customers represent a global social circle of our customer-centric strategy. We have been trying to do smart things, so we we are rapidly expanding it to other parts of rather than having to fill out paper forms. agent experience, and enhance loyalty. the tens of millions of consumers and businesses that is comparable in many ways to the Custome-centricity is at the heart of are making some strategic investments in our tech ecosystem. For it to work, there has They can do this in advance of visiting a retail At Western Union, we are focused on we touch. And we know our markets very well. leading social networks. everything we do, and it is driving our transformative technologies and business to be tight integration between software location and just provide a PIN or a QR code optimization and agility, both in terms of

CTO Straight Talk | 62 initiatives. By using Hadoop and Cloudera, we established a robust data ecosystem in just five months. We’ve also invested in making Western Union’s Global Reach The truth is that Western Union has always our web architecture more mobile-oriented. (as of December 31, 2013) Our CEO recognized that doing these things been an innovator, in technologies such as would require some new skill sets. So he • 70 million+ consumers microwave data transmission, automated established a digital venture team in San • 100,000 B2B customers switching and networks, communication Francisco. It’s our customer-focused, online, • 242 million consumer-to-consumer and mobile efforts that are helping to satellites, and more. transform our global brand. Now we are transactions; 459 million business taking a two-pronged approach, inspecting payments our legacy systems while embracing new tools • $82 billion of principal moved and technologies. between consumers We have an opportunity to unlock the transformation. We can use data to observe product definition, including business case or when they arrive in order to quickly complete Our traditional platform is pretty robust. potential of the global scale of our business behavioral changes in sending and receiving • 200 countries and territories gap analysis, and actual engineering. the transaction. We just needed to turn our legacy capabilities and customer base. Our CEO is a big believer and to deliver a customer experience tailored • 500,000+ agent locations and more The way we are architecting our solution into consumable APIs or gateway systems that in the promise of data analytics-not only for to individual users across multiple channels than 100,000 ATMs leverages our feet-on-the-ground knowledge Developing Frictionless Processes newer systems can connect with. We also our business but also for how we address (retail, online, mobile, etc.). and capability. By taking a modular decided to work with innovative technology • 120+ currencies social issues and effect positive change for Data can also help us see the economic development approach, we can deliver a Corporate evolution is not a single strategy or companies and leverage these relationships to • 75+ language consumers worldwide. predictors and migration shifts that can version of our applications for an individual set of rules. Nor is it about technology for build new processes. Western Union has been using data for a help shape business priorities, such as country, such as Germany. That approach technology’s sake. It’s a way of doing business. long time for tasks like segmentation and for regional expansion. may involve slightly more complexity and It’s awareness and a commitment to insights into the propensities of individuals to A lot of the data we have and are already effort to account for local and regional understanding and meeting customer needs. conduct specific kinds of transactions. We’re using is structured. We are using it to look at regulatory requirements while still delivering And it’s about helping the different facets of now taking it to the next level. We are focusing customer segmentation and propensity to are unique to Western Union and must be core functionality to the consumer. the company do their jobs better and deliver on data complexity, large data sets from buy. The new element we are bringing in is We have been trying to do protected. Outsourcing works well in cases We are also moving aggressively on mobile. results. multiple systems that are both structured and unstructured data from web and mobile smart things, so we are where design standards have been defined We want to optimize that experience so users Perhaps the biggest challenge is stepping unstructured. We are looking at legacy transactions. We are trying to marry that have the option of using a specific app as well back to answer the essential questions: Are we making some strategic and you are executing to a well-defined systems integration and alignment with new unstructured data to the structured data in a architecture. We have a combination of both. as a browser. The work we have done in that doing enough? Are we doing too much? Are mobile and online capabilities. Hadoop-based system so that we can mine in investments in We are using some strategic service regard has already paid off. The feedback has we focused on the things our customers need? We have a staff of data scientists who are a faster and more targeted fashion to transformative providers; HCL is one of them. Especially in gone from just average to extremely positive Are we helping to propel our leveraging the power of data analytics to understand customer segments, buying technologies and the digital space, I am working closely with in less than eight months; our app now has a business forward? identify the trends that will shape our patterns, and preferred methods of payment. HCL, which is accustomed to building nearly four-star rating. So far, that is just in I work with our Global CIO to address those business moving forward. We see the For example, a given consumer will usually business initiatives. products for consumers. the United States and Australia, so there are questions and connect technology capabilities potential of predictive analytics for consumer perform certain types of transactions on the Delivery is one area where we are adopting further opportunities for us. to their business strategies.We, in turn, work engagement and advanced data mining for same day of the month. We can drive that methods that bring product development and The great thing is that many elements of our with colleagues across the business-senior risk management. Such efforts can analysis close to real time so that we can engineering closer together. Specifically, we digital transformation are applicable to the management in the regions, marketing, sales, support our decision cycles and contribute to provide the right offers at the right time. have adopted agile, sprint-based, and part of our core business that still relies on our finance, legal, compliance, and other areas of strategic business planning and, ultimately, to retail network and retail agents. For example, the company-to identify where we can We have invested both in our operational scrum-based approaches. That is core to what delivering a consistent omnichannel Going Modular and Mobile we want users who need to pay in cash to be leverage the power of technology to transform capabilities and in our technical architecture. we do. We are not 100% there, but we do have experience. In fact, our data is an integral part able to prepopulate forms from their devices their operations, create a better consumer and We are now working to be more modular. I am the ability to fast-track that methodology, and of our customer-centric strategy. We have been trying to do smart things, so we rather than having to fill out paper forms. agent experience, and enhance loyalty. of the view that you apply core IT capabilities we are rapidly expanding it to other parts of Custome-centricity is at the heart of are making some strategic investments in They can do this in advance of visiting a retail At Western Union, we are focused on to your key strategic differentiators. In other our tech ecosystem. For it to work, there has everything we do, and it is driving our transformative technologies and business location and just provide a PIN or a QR code optimization and agility, both in terms of words, some of our capabilities and processes to be tight integration between software

CTO Straight Talk | 64 We have an opportunity to unlock the transformation. We can use data to observe product definition, including business case or when they arrive in order to quickly complete potential of the global scale of our business behavioral changes in sending and receiving gap analysis, and actual engineering. the transaction. and customer base. Our CEO is a big believer and to deliver a customer experience tailored The way we are architecting our solution in the promise of data analytics-not only for to individual users across multiple channels leverages our feet-on-the-ground knowledge Developing Frictionless Processes our business but also for how we address (retail, online, mobile, etc.). and capability. By taking a modular social issues and effect positive change for Data can also help us see the economic development approach, we can deliver a Corporate evolution is not a single strategy or consumers worldwide. predictors and migration shifts that can version of our applications for an individual set of rules. Nor is it about technology for Western Union has been using data for a help shape business priorities, such as country, such as Germany. That approach technology’s sake. It’s a way of doing business. long time for tasks like segmentation and for regional expansion. may involve slightly more complexity and It’s awareness and a commitment to insights into the propensities of individuals to A lot of the data we have and are already effort to account for local and regional understanding and meeting customer needs. conduct specific kinds of transactions. We’re using is structured. We are using it to look at regulatory requirements while still delivering And it’s about helping the different facets of now taking it to the next level. We are focusing customer segmentation and propensity to are unique to Western Union and must be core functionality to the consumer. the company do their jobs better and deliver on data complexity, large data sets from buy. The new element we are bringing in is protected. Outsourcing works well in cases We are also moving aggressively on mobile. results. multiple systems that are both structured and unstructured data from web and mobile where design standards have been defined We want to optimize that experience so users Perhaps the biggest challenge is stepping unstructured. We are looking at legacy transactions. We are trying to marry that and you are executing to a well-defined have the option of using a specific app as well back to answer the essential questions: Are we systems integration and alignment with new unstructured data to the structured data in a architecture. We have a combination of both. as a browser. The work we have done in that doing enough? Are we doing too much? Are mobile and online capabilities. Hadoop-based system so that we can mine in We are using some strategic service regard has already paid off. The feedback has we focused on the things our customers need? We have a staff of data scientists who are a faster and more targeted fashion to providers; HCL is one of them. Especially in gone from just average to extremely positive Are we helping to propel our leveraging the power of data analytics to understand customer segments, buying the digital space, I am working closely with in less than eight months; our app now has a business forward? identify the trends that will shape our patterns, and preferred methods of payment. HCL, which is accustomed to building nearly four-star rating. So far, that is just in I work with our Global CIO to address those business moving forward. We see the For example, a given consumer will usually products for consumers. the United States and Australia, so there are questions and connect technology capabilities potential of predictive analytics for consumer perform certain types of transactions on the Delivery is one area where we are adopting further opportunities for us. to their business strategies.We, in turn, work engagement and advanced data mining for same day of the month. We can drive that methods that bring product development and The great thing is that many elements of our with colleagues across the business-senior risk management. Such efforts can analysis close to real time so that we can engineering closer together. Specifically, we digital transformation are applicable to the management in the regions, marketing, sales, support our decision cycles and contribute to provide the right offers at the right time. have adopted agile, sprint-based, and part of our core business that still relies on our finance, legal, compliance, and other areas of strategic business planning and, ultimately, to scrum-based approaches. That is core to what retail network and retail agents. For example, the company-to identify where we can delivering a consistent omnichannel Going Modular and Mobile we do. We are not 100% there, but we do have we want users who need to pay in cash to be leverage the power of technology to transform experience. In fact, our data is an integral part the ability to fast-track that methodology, and able to prepopulate forms from their devices their operations, create a better consumer and of our customer-centric strategy. We have been trying to do smart things, so we we are rapidly expanding it to other parts of rather than having to fill out paper forms. agent experience, and enhance loyalty. Custome-centricity is at the heart of are making some strategic investments in our tech ecosystem. For it to work, there has They can do this in advance of visiting a retail At Western Union, we are focused on everything we do, and it is driving our transformative technologies and business to be tight integration between software location and just provide a PIN or a QR code optimization and agility, both in terms of

www.hcltech.com

internal processes and external-facing initiatives. We talk about “the next generation of transacting” and a “new generation of financial services.” What that really means is building frictionless · Leverage the power of data analytics processes-for Western Union employees, our to identify the trends that will shape agents, and our customers. your business moving forward. The bottom line is that we are focused on revolutionizing our technology footprint to · Consider establishing a digital venture forge a deeper relationship with our team that is focused on online and customers. We believe our efforts will help mobile efforts that will help transform ensure long-term value for the services your global brand. Western Union offers. And we believe we will be able to support and enhance an · Develop frictionless processes-for omnichannel experience that will span your employees, your partners, and geographies and cultures. your customers.

ENGINEERING ON YOUR MIND. EXPERIENCE AT YOUR FINGERTIPS.

Get the HCL ERS App for your phone and tablet, turn your engineering strength into a competitive advantage and provide best in class experiences to your end customers.

Download The Download The App On I Tunes App On Google PRINTER // 7:00AM CREATING A WIN-WIN-WIN FOR PARTNERING IN PRODUCT DEVELOPMENT Hello friend, do I have a job for you! An outsourcing deal of an unprecedented nature shows one way to innovate in a global, COPIER // 7:00AM mobile, and always-connected world.

Hello friend, do I have a job for you!

PRINTER // 7:01AM POSITION: Global Delivery Group Strategy and Technology Officer What? What is it? COPIER // 7:01AM COMPANY: Xerox What? What is it? WORKS FROM: Webster, New York PRINTER // 7:02AM PROFESSIONAL BACKGROUND: Stop COPYING ME!! After nine years overseas, first in Europe and then Asia, Charles Gardiner returned to New York in October 2013. Besides serving COPIER // 7:02AM as Chief Strategy and Technology Officer for the Global Delivery Group, he has responsibility for the User Experience Design Stop COPYING ME!! :o Group and Advanced and Distributed Development activities. Previously, he was Vice President for Distributed Development in Chennai, India. His mission in Chennai was to develop strategies CHARLES GARDINER and partnership models with Product Engineering Service [email protected] providers in India and Asia and to ensure their effective operation. Gardiner joined Xerox in 1980 and has held several positions in engineering, development, and research in the United States, the United Kingdom, and the Netherlands. He holds six patents.

EDUCATION: Honors degree in Applied Physics from the University of Strathclyde; completed the Advanced Management Program at Duke University’s Fuqua School of Business and postgraduate studies in the Management of Technology at the MIT Sloan School of Management

PERSONAL PASSIONS: Technology, travel, media, and diving

CTO Straight Talk | 68 The snow has been falling steadily all launch of Xerox’s global product development morning, early in February as it is and one of initiative, when I moved to Chennai, India, to the worst winters on record across the states. establish the foundation for a unique Six inches have piled up here at the Xerox partnership for product engineering. One way to think about this is in terms of Research Center Webster, in New York, and I When we began this journey, neither a lock and key. You’re the lock, and hear it won’t be letting up anytime soon. outsourcing nor operating in Asia were somebody comes along with the key. It’s been rough, I have to say, since I’ve been foreign concepts to Xerox, as they wouldn’t back home in the United States only for about have been to many companies in various five months now. I arrived in October, after industries at the time. But this initiative spending nine years overseas, and so I’m just would be quite different, an initial foray starting to get back to the American way. into the outsourcing of product Don’t get me wrong. Winter storms aside, development work. multi-connected, we get a new way to enrich Of course, putting this decision into action this is an exciting place to come home to. It’s Many companies might wonder how we and enhance our customers’ experience with wasn’t easy or smooth. We had to take a lovely to see new and interesting things arrived at the decision to find an external us and with our devices. variety of strategic and operational concerns So in 2008, as we at Xerox talked about into account, do a lot of homework on how ideas like the Internet of Things, best to address those, and spend untold hours personalization, and the user experience, we building consensus. But in the end, we asked ourselves, “In this changing world of developed a proposal that we believed would technology, what are the chances that any one get us to the win-win-win -and then we Many companies might wonder how we company can be expert in multiple, evolving selected our partner, HCL Engineering and arrived at the decision to ﬁnd an external domains?” Since we figured the answer was R&D Services. partner for product engineering in the ﬁrst “fairly limited,” it quickly became obvious to us that we needed a partner that had scale and Better Together Than Alone place, even before they wonder if we’ve experiences in other domains with been successful. technologies adjacent to ours. Clearly, the choice of a partner is critical in Any partner who was going to help us with any product development decision, but product development needed to be willing to especially when you’re trying to do something grow and evolve with us, to be in it with us for as unique as we were. One way to think about the long term. We even identified a little this is in terms of a lock and key. You’re the happening-developments I’ve known about partner for product engineering in the moniker to help keep the kind of relationship lock, and somebody comes along with the key. but now can be involved in. first place, even before they wonder if we wanted top of mind. We call it a The lock and key have to fit together. Anytime But I won’t get too comfortable, because we’ve been successful. win-win-win: a win for Xerox, a win for our there is misalignment, you’re going to get travel is one of the things I do a lot of here at partner, and a win for the people involved in stress points. Xerox. During my 33 years with the company, Going for the Win-Win-Win the transitions. A company like Xerox, we But even with the occasional stress point, I’ve had the opportunity to work in Asia, realized, needed to be represented globally. At we believe that we are better with our partner Europe, and North America. These days, I try In a sense, you could say that the Internet of that point, with the majority of our global than we could be alone. If you think about to spend a couple of weeks each quarter in Things served as at least one motivation for R&D expenditures in North America and a long-term relationship, as we do, you don’t Asia: India, Malaysia, and Singapore. I like to taking what some might consider a rather Europe, it seemed appropriate to look East, to have the fear of giving something up-of losing think of my career with Xerox in this way: I’ve daring decision. think about developing products uniquely the ability to innovate. This isn’t a zero-sum always been with the company, but I’ve never Xerox is clearly involved in the Internet of for Asia and other developing markets and to game that would have us thinking, “If we let been in the same place. Things-we have to respond to it, and we want access the talent there. We felt we could build them invent, we won’t be inventing I’ve had some super experiences, but the to respond to it. With the Internet of Things, the best of the best if we married the East with ourselves.” In fact, at Xerox we took the exact really big one began in 2009, following the as objects become more connected and the West, bringing together the scale of Asia opposite view. “Collectively,” we thought, “we with our subject matter expertise. can invent more.”

CTO Straight Talk | 70

The challenge was in finding a way to build on Xerox’s excellent history of innovation and to exercise our methodology in a new way. And we did that by challenging our partner to invent for us. We even track inventions in our service level agreements. Now, you might wonder, “How can you take a thing like an invention, which by its very nature doesn’t exist yet, and develop a methodology and a process that make it possible for people who are fairly new to the domain to contribute and invent?” Well, I’d be happy to tell you that for the past two years is as much about people development as it is tremendously, too. At the good advice of a we’ve achieved that and more. about technology innovation. fellow I talked to before I left for India, “I left Going back to that win-win-win, we’ve You have to take the hearts and minds of the my Western head behind” and opened my proven the success of this model. We get more individuals with you or there’s no way you can mind to my new environment. Your inventions for Xerox, we get a partner that is be successful. That’s why it’s so important that perspective can’t help but change when you we identified the win for the people as an walk for four years in your partner’s shoes. important dimension. This wasn’t just about Certainly the decisions you make are two companies. influenced by your environment; I know It’s important to me that I’m not a stranger living in India changed the way I thought to the people who work at the global facilities. about problems. Toward this end, nothing beats taking a walk. That’s not to say I didn’t have constant While I lived in Chennai and now on my reminders from the West about needing to frequent trips back to India, Malaysia, and maintain the strategic intent of the Singapore, one of the most important things relationship. But because I was living in to do is walk. We walk around the labs, and we Chennai, I was able to bring the local walk around the organization. For senior perspective and the global perspective to bear leaders, managing by walking around is an old when making decisions. trick but a good one. You’ve got to get out, walk around, and make contact with the No Turning Back people, because ultimately it’s the people who deliver the results, not us. From the start, I was part of a core team of In the five years we’ve been at this, we’ve individuals who believed that, in light of the found that we can engage more fully with changing technical world and the prospect of learning how to invent for its own benefit, and People to People people if we embed senior leaders in the local global development, we faced a “burning the people in the labs get the satisfaction that environment for ten days to two weeks at platform.” Once you set a direction to address comes with invention. One shining So much gratification comes in the last win a time. So we’re rotating some of our people a particular situation and start moving in that example is ConnectKey, an embedded -the people part of all this. It’s been great to through, giving them time to bond with the direction, you then have to burn the bridge software system for Xerox multifunction see new people grow in our domain-there are partner’s people both operationally and behind you. There’s really no going back. printers. Xerox introduced ConnectKey, a 1,200 individuals involved in this relationship socially. This cements relationships and As I said, we had quickly come to the product of the development partnership with now-and to watch them do great things at makes them easier to manage at a distance. conclusion that solving the challenge of HCL, in February 2013. scale. In a way, this engineering relationship Living in India for four years helped me competitive product development in the

modern era required the new and unique. I’m not aware of many other companies that have tried to solve this problem the way we did. But we believe this was a good competitive response to the burning platform that would give us access to scale and novelty while letting us maintain some expertise and know-how and not put ourselves at a disadvantage in the future. It was not an easy task to create a system where our engineering partners could develop new concepts with us, halfway around the world. The relationship will sometimes have its rough edges, but you’ll never find Xerox second-guessing its decision. We’re in a partnership now, we’re developing globally, and we’re accessing scale as we never could before. The challenge now is continuing to operate and improve the model. We have to move forward. There’s no return. The bridge is gone. Bringing in an outside company, such as HCL, to become an internal partner in this way is a tough balancing act. But I personally believe the burning platform was there and is still there for many companies. This is not just a Xerox challenge. The snow has been falling steadily all launch of Xerox’s global product development morning, early in February as it is and one of initiative, when I moved to Chennai, India, to the worst winters on record across the states. establish the foundation for a unique Six inches have piled up here at the Xerox partnership for product engineering. Research Center Webster, in New York, and I When we began this journey, neither hear it won’t be letting up anytime soon. outsourcing nor operating in Asia were It’s been rough, I have to say, since I’ve been foreign concepts to Xerox, as they wouldn’t back home in the United States only for about have been to many companies in various five months now. I arrived in October, after industries at the time. But this initiative spending nine years overseas, and so I’m just would be quite different, an initial foray starting to get back to the American way. into the outsourcing of product Don’t get me wrong. Winter storms aside, development work. multi-connected, we get a new way to enrich Of course, putting this decision into action this is an exciting place to come home to. It’s Many companies might wonder how we and enhance our customers’ experience with wasn’t easy or smooth. We had to take a lovely to see new and interesting things arrived at the decision to find an external us and with our devices. variety of strategic and operational concerns So in 2008, as we at Xerox talked about into account, do a lot of homework on how ideas like the Internet of Things, best to address those, and spend untold hours personalization, and the user experience, we building consensus. But in the end, we asked ourselves, “In this changing world of developed a proposal that we believed would technology, what are the chances that any one get us to the win-win-win -and then we company can be expert in multiple, evolving selected our partner, HCL Engineering and domains?” Since we figured the answer was R&D Services. “fairly limited,” it quickly became obvious to us that we needed a partner that had scale and Better Together Than Alone experiences in other domains with technologies adjacent to ours. Clearly, the choice of a partner is critical in Any partner who was going to help us with any product development decision, but product development needed to be willing to especially when you’re trying to do something grow and evolve with us, to be in it with us for as unique as we were. One way to think about the long term. We even identified a little this is in terms of a lock and key. You’re the happening-developments I’ve known about partner for product engineering in the moniker to help keep the kind of relationship lock, and somebody comes along with the key. but now can be involved in. first place, even before they wonder if we wanted top of mind. We call it a The lock and key have to fit together. Anytime But I won’t get too comfortable, because we’ve been successful. win-win-win: a win for Xerox, a win for our there is misalignment, you’re going to get travel is one of the things I do a lot of here at partner, and a win for the people involved in stress points. Xerox. During my 33 years with the company, Going for the Win-Win-Win the transitions. A company like Xerox, we But even with the occasional stress point, I’ve had the opportunity to work in Asia, realized, needed to be represented globally. At we believe that we are better with our partner Europe, and North America. These days, I try In a sense, you could say that the Internet of that point, with the majority of our global than we could be alone. If you think about to spend a couple of weeks each quarter in Things served as at least one motivation for R&D expenditures in North America and a long-term relationship, as we do, you don’t Asia: India, Malaysia, and Singapore. I like to taking what some might consider a rather Europe, it seemed appropriate to look East, to have the fear of giving something up-of losing think of my career with Xerox in this way: I’ve daring decision. think about developing products uniquely the ability to innovate. This isn’t a zero-sum always been with the company, but I’ve never Xerox is clearly involved in the Internet of for Asia and other developing markets and to game that would have us thinking, “If we let been in the same place. Things-we have to respond to it, and we want access the talent there. We felt we could build them invent, we won’t be inventing I’ve had some super experiences, but the to respond to it. With the Internet of Things, the best of the best if we married the East with ourselves.” In fact, at Xerox we took the exact really big one began in 2009, following the as objects become more connected and the West, bringing together the scale of Asia opposite view. “Collectively,” we thought, “we with our subject matter expertise. can invent more.”

The challenge was in finding a way to build on Xerox’s excellent history of innovation and to exercise our methodology in a new way. Making Product Development How can you take a thing like an invention, which And we did that by challenging our partner to Partnering Work by its very nature doesn’t exist yet, and develop a invent for us. We even track inventions in our methodology and a process that make it possible service level agreements. Take the time to do your homework, Now, you might wonder, “How can you take identify all the strategic and for people who are fairly new to the domain to a thing like an invention, which by its very operational concerns, and build contribute and invent? nature doesn’t exist yet, and develop a internal consensus before making the methodology and a process that make it outsourcing decision. possible for people who are fairly new to the domain to contribute and invent?” Well, I’d be Find a partner with global scale, happy to tell you that for the past two years complementary skills and is as much about people development as it is tremendously, too. At the good advice of a we’ve achieved that and more. experiences, and the willingness to about technology innovation. fellow I talked to before I left for India, “I left Going back to that win-win-win, we’ve learn and grow with you. You have to take the hearts and minds of the my Western head behind” and opened my proven the success of this model. We get more individuals with you or there’s no way you can mind to my new environment. Your inventions for Xerox, we get a partner that is Include in the service level agreement be successful. That’s why it’s so important that perspective can’t help but change when you a target for the number of inventions we identified the win for the people as an walk for four years in your partner’s shoes. and patent applications the partner important dimension. This wasn’t just about Certainly the decisions you make are will deliver. two companies. influenced by your environment; I know It’s important to me that I’m not a stranger living in India changed the way I thought Your perspective can’t help Make the relationships as much about to the people who work at the global facilities. about problems. people development as about but change when you walk Toward this end, nothing beats taking a walk. That’s not to say I didn’t have constant technology innovation. While I lived in Chennai and now on my reminders from the West about needing to for four years in your frequent trips back to India, Malaysia, and maintain the strategic intent of the partner’s shoes. Certainly Embed senior leaders from your Singapore, one of the most important things relationship. But because I was living in the decisions you make are organization in the local environment to do is walk. We walk around the labs, and we Chennai, I was able to bring the local on a rotating basis to facilitate walk around the organization. For senior perspective and the global perspective to bear inﬂuenced by your bonding, both operationally and leaders, managing by walking around is an old when making decisions. environment. socially, with the partner’s staff. trick but a good one. You’ve got to get out, walk around, and make contact with the No Turning Back people, because ultimately it’s the people who deliver the results, not us. From the start, I was part of a core team of In the five years we’ve been at this, we’ve individuals who believed that, in light of the found that we can engage more fully with changing technical world and the prospect of learning how to invent for its own benefit, and People to People people if we embed senior leaders in the local global development, we faced a “burning the people in the labs get the satisfaction that environment for ten days to two weeks at platform.” Once you set a direction to address comes with invention. One shining So much gratification comes in the last win a time. So we’re rotating some of our people a particular situation and start moving in that example is ConnectKey, an embedded -the people part of all this. It’s been great to through, giving them time to bond with the direction, you then have to burn the bridge software system for Xerox multifunction see new people grow in our domain-there are partner’s people both operationally and behind you. There’s really no going back. printers. Xerox introduced ConnectKey, a 1,200 individuals involved in this relationship socially. This cements relationships and As I said, we had quickly come to the product of the development partnership with now-and to watch them do great things at makes them easier to manage at a distance. conclusion that solving the challenge of HCL, in February 2013. scale. In a way, this engineering relationship Living in India for four years helped me competitive product development in the

CTO Straight Talk | 72

modern era required the new and unique. I’m not aware of many other companies that have tried to solve this problem the way we did. But we believe this was a good competitive response to the burning platform that would · When you choose a partner, think give us access to scale and novelty while about it in terms of a lock and key. letting us maintain some expertise and You’re the lock, and somebody comes know-how and not put ourselves at a along with the key. The lock and key disadvantage in the future. have to fit together. Anytime there is It was not an easy task to create a system misalignment, you’re going to get where our engineering partners could develop stress points. new concepts with us, halfway around the world. The relationship will sometimes · Make sure to challenge your partner have its rough edges, but you’ll never find to invent for you-track inventions in Xerox second-guessing its decision. We’re your service level agreements. in a partnership now, we’re developing globally, and we’re accessing scale as we · Solving the challenge of competitive never could before. product development in the modern The challenge now is continuing to operate era requires a new and unique and improve the model. We have to move approach-getting access to scale and forward. There’s no return. The bridge is gone. novelty while maintaining expertise Bringing in an outside company, such as and know-how. HCL, to become an internal partner in this way is a tough balancing act. But I personally believe the burning platform was there and is still there for many companies. This is not just a Xerox challenge.