Creating Intelligent Machines at Deere &

THE 2018 CT HALL OF FAME CES 2019 PREVIEW

NOVEMBERDECEMBER 2018

BLOCKCHAIN NEW WAYS TO TRANSACT SMART CARS MONITORING DRIVERS TECH CONNECTING DOCTORS WITH PATIENTS

SENIOR VP, INTELLIGENT SOLUTIONS GROUP John Stone Creating Intelligent Machines at Deere & Co.

i3_1118_C1_COVER_layout.indd 1 10/24/18 3:50 PM MEET THE MOST IRRESISTIBLE NEW POWER COUPLE

EVERYBODY’S TALKING

Sharp’s all-new, modern and elegant, built-in wall oven features an edge-to-edge black glass and stainless steel design. The SWA3052DS pairs beautifully with our new SMD2480CS Microwave DrawerTM, the new power couple of style and performance. This 5.0 cu. ft. 240V. built-in wall oven uses True European Convection to cook evenly and heat efﬁ ciently. The 8 pass upper-element provides edge-to-edge performance. Sharp’s top-of-the-line Microwave Drawer™ features Easy Wave Open for touchless operation. Hands full? Simply wave up-and-down near the motion sensor and the SMD2480CS glides open. It’s just the kind of elegant engineering, smart functionality and cutting-edge performance you’d expect from Sharp.

NEW TOUCH GLASS CONTROL PANEL EDGE-TO-EDGE, BLACK GLASS & STAINLESS STEEL OPTIONAL 30" EXTENSION KIT SHOWN

Simply Better Living

www.SharpUSA.com

© 2018 Sharp Electronics Corporation. All rights reserved. Sharp, Microwave Drawer™ Oven and all related trademarks are trademarks or regis- tered trademarks of Sharp Corporation and/or its afﬁ liated entities. Product speciﬁ cations and design are subject to change without notice. Internal capacity calculated by measuring maximum width, depth and height. Actual capacity for holding food is less.

SMD240CS_SWA3052DS_i3_CTA_TWICE.indd 1 8/21/2018 4:56:47 PM i3_1118_C2_AD_Sharp_Layout.indd 2 10/23/18 3:02 PM Contents 16

02 From the CEO The Increasingly Dangerous Trade War with China 50 60 04 Policy FACES OF BY THE 46 Editor’s Note INNOVATION NUMBERS Merging Worlds POLICY UPDATE Apprentice CEO Residential 5G Brings The Latest and Co-founder, Speed to Consumers on Tari s Tech Angelo 62 Stracquatanio 8 48 CT REPORTS 52 INNOVATOR GUEST BLOG • CTA Foundation: Advancing Consumers TECH HUB Tech Helps Autonomous Save $3.5 Billion Hardware Club Populations in Need Farming 24 • CTA Events Calendar 20 24 in Energy 12 Consumption 63 Human Machine Tech: The Third Business INTERNATIONAL MARKET BEAT Interfaces Evolve Wheel in the 54 FOCUS 5G – the Future in Cars Doctor Patient C SPACE Singapore Relationship is Now Cars, enabled by Streaming: It’s All 13 64 AI, are getting so The rise of more About Connections A TECHNOLOGY smart they may sophisticated and STATS & FACTS Angelica 56 TO WATCH eventually detect accurate sensors Understanding Melendez FORWARD Making Machines human emotions to behind this house- 5G and Its STRATEGIES Think Like make driving safer hold revolution. 49 Features Build and Maintain Humans and more 28 POLICY IN a High-Tech Edge 14 enjoyable. Special: CES ACTION 57 C4 TRENDS 2019 Preview The Business of ON THE COVER ADVICE FOR The Promise of Selling Services John Stone ENTREPRENEURS 5G at Home Meet the 2018 CT Online Photographed by Seth Lowe Hall of Fame Class Options Lead 15 8 to Success PIPELINE 58 Connecting Homes RETAIL to the Smart Grid STRATEGIES Buying Group Features Roundtable 16 Rethinking Business, Block by Block Blockchain could massively reduce ine ciencies in business.

CTA.tech/i3 20 NOVEMBERDECEMBER 2018 1

i3_1118_01_FOB_TOC_layout.indd 1 10/24/18 8:41 AM From the CEO

The Increasingly Dangerous Trade War with China

By almost every measure, China and the U.S. trade was less signi cant to our nation. are the world’s two global economic super- We are vulnerable. We elected the rst anti- powers. Yet we are in a dangerous game of trade president in generations. We put too many “chicken” with China with no clear winnable of our eggs in the China basket — something I end game for either nation. Each passing day have cautioned against in the past. We let China of new tari s, trade barriers, harsh words get away with unfair practices for too long. and lack of meaningful negotiations gives lit- But we can only look forward. We have tle hope for a resolution. fought successfully for free trade for decades. President Trump and President Xi are two Our industry, economy and consumer stan- strong leaders and neither are likely to back dard of living all bene ted because of trade. down. More, President Trump has been consis- Yet now we are seeing a 180-degree reversal tent in his view that unbalanced trade with on trade with China. China is not in the interest of the U.S. We can advocate. We can lobby. We can even The U.S. technology industry is being hurt sue — as Congress never gave the president Our industry, by escalating tari s. They a ect the supply authority to start retaliatory trade wars. But we economy and chain of components and increasingly nished must be honest: we face an administration hostile consumer products from China. But the auto, footwear, to China, focused illogically and simplistically on standard of chemical, clothing, equipment and several equality in in ow and out ow of products. living all other industries will also be a ected. Now we must hunker down, plan for tough bene ited The trade war will hurt our economy. times and continue to innovate. We must make Companies will be hurt. Jobs will be lost. sure our voices are heard and reason prevails. because of Consumer prices will rise as these tari s/ trade. taxes are imposed. In ation will increase. Our overheated economy will cool and soon other nations will feel the impact. We saw all this with the Smoot-Hawley tar- i s Congress passed in 1930, which helped Gary Shapiro,

cause the Great Depression. At that time, President and CEO Images Pengpeng/Getty

2 NOVEMBERDECEMBER 2018 IT IS INNOVATION

i3_1118_02_FOB_CEO_layout.indd 2 10/24/18 8:58 AM HOLLYWOOD STABILIZATION IN THE PALM OF YOUR HANDS

Visit us at CES® Booth #14036

Smartphone Stabilizer (Android & iOS Compatible)

Smooth, Shake-Free Video Footage

Lightweight & Collapsible

GoPro® Compatible

8 Hours of Battery Life

Sport Mode / & Movie Mode

LEARN MORE AT TIFFEN.COM/STEADICAMVOLT

Tiffen Company LLC. 90 Oser Avenue Hauppauge, NY 11788

i3_1118_03_AD_Tiffen_Layout.indd 3 10/23/18 3:02 PM Editor’s Note

IT IS INNOVATION

PRESIDENT AND CEO Gary Shapiro Merging SENIOR VICE PRESIDENT Jean Foster

EDITORINCHIEF Worlds Cindy Lo er Stevens

MANAGING EDITOR I have had the privilege of working with some of the best Mark Chisholm and brightest leaders in our industry with CTA’s CT Hall EDITORIAL ASSISTANT of Fame program. This year we have a phenomenal class Jeremy Snow SENIOR CREATIVE ADVERTISING MANAGEMENT of visionaries that will be honored at the annual dinner MANAGER Eric Schwartz held on November 7 at Capitale in New York City. John Lindsey Oleg Burdo GRAPHIC DESIGNER CIRCULATION Ian Shields MANAGER Gretchen Mitchler he 2018 class includes Group at Deere & Company who is MANAGER, CREATIVE DIRECTION John Briesch, the Sony leading a digital transformation at Matt Patchett

executive who led the CD the nexus of tech and farming. At EDITORIAL CONTRIBUTORS T launch; Dr. John Ciofi, CES, Deere will show how sensors Gary Arlen, Alan Breznick, Robert Calem, Jack Cutts, John Gaudiosi, the father of DSL (Digital Subscriber and AI are equipping farmers with Steve Koenig, Natalie Hope McDonald, Allan Richter, Ron Schneiderman, Steve Smith, Susan Schreiner, Murray Slovick Line), Robert Cole founded World smart machines that will improve all EDITORIAL ADVISORY BOARD Wide Stereo; Richard Doherty an our lives. Look for the Deere tractor Kari Aakre, Intel; Dave Arland, Arland Communications; inluential analyst; Peter Lesser in the self-driving lot and the com- Sally Washlow, Cedar Electronics; Peter Brinkman, Casio; Gabriele Collier, HDMI; Kristen Cook, The Marketing Shack; founded X10 USA Ltd., ushering in bine called the “interconnected fac- Danielle Deabler,NPR Labs; John Dunstan, Netgear; Sean Durkin, the smart home era; Mike tory on wheels” on the show loor. Tencent; Bill Kircos, Intel; Bill Leebens, LM&M; Chris Loncto, Sharp Electronics Corp.; Daniel Pidgeon, Starpower; David Steel, Romagnolo created high-tech DOW This pre-CES issue also looks at the Samsung; John Taylor, LG Electronics Stereo/Video; and Edgar Villchur enormous changes in automotive

invented the acoustic suspension intelligence, 5G tech, blockchain, DESIGN, PRODUCTION AND PUBLISHING MANAGEMENT speaker. Teams include: Jim Thiel computing and digital health

founder and chief designer of Thiel enhancing doctor patient relation- 228 E 45TH ST., SUITE 701, NEW YORK, NY 10017 Audio’s innovative speakers and for- ships along with some energized

mer CTA Chair and President of startups. To see the latest innova- SENIOR ART DIRECTOR PRODUCTION TECHNOLOGY Thiel, Kathy Gornik who grew the tions, join us at CES 2019, January Carolyn Miller Cheryl Beaver, company into a prestigious brand; 811. Please send comments to PHOTO EDITOR Andy Gulczynski Leah Rudolfo OPERATIONS MANAGER and the Skype Team who devel- [email protected]. Gabby Tan oped the person-to-person video phone platform in 2003. These lead- It Is Innovation (i3) is published as a service to the members of the ers helped to shape the world. See Consumer Technology Association (CTA) and to key players in the consumer technology industry. CTA represents more than 2,200 U.S. manufacturers bios on page 31. of audio, video, digital imaging, accessories, mobile electronics, home Our cover story proiles John networking, wireless communication, information technology and multimedia Cindy Lo er Stevens, products that are sold through consumer channels. Stone, SVP, Intelligent Solutions Editor-in-Chief The opinions expressed in articles are those of the authors and not necessarily those of CTA. Comments, questions and letters to the editor are welcome. Address responses to: It Is Innovation (i3), Consumer Technology Association, 1919 South Eads St., Arlington, VA 22202, tel: 703 907 7600. © 2018 Consumer Technology Association Articles from this issue may be reproduced in whole or in part, Statement of Ownership, Management and Circulation provided full credit is given to CTA. It Is Innovation (i3) (USPS 022897) is published (bi-monthly) six times a year by the Consumer Technology CES® and International Consumer Electronics Show® Association. The mailing address of both the publication and the publisher is 1919 South Eads Street, are trademarks owned by CTA. Arlington, VA 22202. The publisher and editor is Cindy Stevens. The managing editor is Mark Chisholm. The owner of the publication is the Consumer Technology Association. There were 25,643 copies of It Is It Is Innovation (i3) (USPS 022897 Vol. 6, No. 6) is published bi-monthly by the Innovation (i3) published for the September/October 2018 issue; the average for the preceding 12 months Consumer Technology Association, 1919 South Eads St., Arlington, VA 22202. was 27,776. The paid/requested outside county mail subscriptions for the September/October 2018 issue Periodicals Postage Paid at Arlington, VA and at additional mailing o ices. was 20,628; the average for the preceding 12 months was 20,280. The other classes mailed through USPS POSTMASTER:Send address changes to It Is Innovation, CTA, 1919 South Eads for the September/October 2018 issue were 3,108; the average for the preceding 12 months was 2,262. The St., Arlington, VA 22202. Canadian Publications Agreement No. 41502062. Non-requested Copies Distributed outside of USPS (Pick-up Stands, Trade Shows, Showrooms and Other U.S. & Canada—$24.99 a year; $5 for a single issue Sources) for the September/October 2018 issue was 1,487; the average for the preceding 12 months was Mexico—$39.99 a year; $7.50 for a single issue 4,817. Total distribution for the September/October 2018 issue was 25,223; the average for the preceding 12 Elsewhere—$49.99 a year; $9.00 for a single issue months was 27,359. 420 copies of It Is Innovation (i3) were not distributed during the September/October ISSN 23257350 2018 issue (o ice use, leftovers, spoiled and all other copies not distributed) and the average number of copies not distributed during the preceding 12 months (o ice use, leftovers, spoiled and all other copies not distributed) was 417. The percent paid/requested circulation in the September/October 2018 issue was 93%; the average for the preceding 12 months was 81%.

4 NOVEMBERDECEMBER 2018 IT IS INNOVATION

i3_1118_04_FOB_Ed_Letter_layout.indd 4 10/24/18 9:32 AM Control your smart home on the go. Hands free. Worry free.

Hey Google, is the garage door open?

Okay, checking. The garage door is open.

Hey Google, close the garage door.

You got it, closing the garage door.

CAR-TO-HOME SMART HOME INTEGRATION READY You don’t need to leave your connected world at home.

Have a connected smart home? SMART SMART THERMOSTAT1 GARAGE2 Google Assistant™ is now a part of Android Auto™, meaning that Google Assistant compatible devices can now report their SMART SMART LOCK3 LIGHT4 status and be controlled directly from your car. Available now on all Android Auto compatible Pioneer in-dash receivers, including the flagship AVIC-W8400NEX.

PIONEERELECTRONICS.COM/CAR FACEBOOK.COM/PIONEERNORTHAMERICA INSTAGRAM.COM/PIONEERCARAUDIO YOUTUBE.COM/PIONEERELECTRONICS 1Compatible smart thermostat required. 2Compatible smart garage door opener required. 3Compatible smart locks required. 4Compatible smart lights or smart switches required.

Caution: Read all safety instructions in the product documentation before use. Distracted driving can result in serious injury, or death. Only use a function when it is safe and legal in your location, pay aention to the road and your surroundings, and obey all tra ic rules. Requires the Android Auto app on Google Play and an Android compatible smartphone running Android™ 5.0 (“Lollipop”) or higher. Additional apps may be required. Standard text message rates apply. Android Auto may not be available on all devices and is not available in all countries or regions. Visit support.google.com/androidauto for more information. Google Assistant, Android, Android Auto, Google Play and other related marks are trademarks of Google LLC. PIONEER and the Pioneer logo are trademarks of Pioneer Corporation. ©2018 Pioneer Electronics (USA) Inc.

PIONEER-Connected_AndroidAuto_082918.inddi3_1118_05_AD_Pioneer_Layout.indd 5 2 10/23/188/30/18 3:02 11:54 PM AM Tech

A LOOK AT NEXTGEN TECH Disruptive innovation is central to America’s entrepreneurial culture

8 Innovator John Stone Leading Digital Farming at Deere

8 Innovator 12 International Focus 13 A Tech to Watch 14 C4 Trends 15 Pipeline Seth Lowe Photography Seth Lowe

6 NOVEMBERDECEMBER 2018 IT IS INNOVATION

i3_1118_06_TECH_Opener_layout.indd 6 10/24/18 9:37 AM i3_1118_07_AD_AfterShokz_layout.indd 7 10/23/18 3:02 PM Tech Cindy Loler Stevens

INNOVATOR John Stone Driving Digital Farming at Deere John Stone is senior vice president at Deere and Company's Intelligent Solutions Group

e is leading a digital renaissance for farming. Since his appointment to the position in 2016, he has been leading the company's efforts to deliver innovative technologies that enhance the performance of John Deere equipment and allow customers to improve their operational performance and better manage costs. HStone joined Deere & Company in 2002 as a project manager and has since held numerous executive leadership positions at the company. Prior to joining Deere, Stone worked for General Electric and before that was an ocer in the U.S. Army. He has a B.S. degree in mechanical engineering from the United States Military Academy and an MBA from Harvard Business School. Deere & Company provides advanced products and services to its customers who cultivate, harvest, transform, enrich and build upon the land to meet the world’s dramatically increasing need for food, fuel, shelter and infrastructure. Stone says, “This year, we surpassed a signicant milestone of having our precision agriculture technology adopted in more than 100 countries and have well over 100 million acres engaged in our digital ecosystem.” i3 had the opportunity to learn about Deere’s latest advances and their plans for CES 2019.

Q Can you talk about the cross section of are a few key technologies we’re focused on insights to solve their needs. A clear oppor- farming and technology? to build a continually smart, evolving and tunity emerged for Deere to drive advance- A Our world is changing, from the rapidly more eicient farm. ments in technology to bring new answers increasing population and globalization of to these evolving customer needs. It meant resources, to the impact of human interac- Q How has your business model changed? bringing the tech revolution to the farm to tion on the land. In fact, the Global Harvest A Getting the most out of a farming operation work in combination with Deere machinery Initiative predicts we’ll have about 2.5 billion has always been challenging, but today’s to deliver economic impact to the farmer. more people to feed on this planet by 2050. farmers face conditions that dictate a new As a result, Deere made a strategic These changes are requiring farmers to level of eort and concern for their opera- investment to ensure its role in the tech- produce signiicantly higher crop production, tions, such as changing weather patterns nology revolution on the farm with the proitably and sustainably, while they deal and the availability of arable land. As the ISG. Outside of Deere’s ive traditional with a declining rural workforce. This is only challenges became more pronounced, product platforms and operating globally, going to be possible by bringing precision ag farmers could take advantage of technology ISG has roughly a thousand engineers, technologies to the farm. Many outside the advances to optimize farming operations. developers, data scientists and computer farming world might not be aware that Deere Deere has always partnered closely with scientists who design and develop the has been investing in leading edge technolo- farmers to advance the use of technology hardware and software that make Deere gies for many years. Automation, connectivity, on the farm and over time, it became clear machines smarter, more precise and more

artiicial intelligence (AI) and machine learning that customers needed more and more productive. ISG helped capitalize on the Seth Lowe by Photography

8 NOVEMBERDECEMBER 2018 IT IS INNOVATION

i3_1118_08-09_TECH_Innovator_layout.indd 8 10/24/18 9:54 AM Tech

use of technologies such as GPS, vision, share data with each other while operating less wasted seed, fertilizer, fuel and time. sensors, robotics and machine learning. together in the ield to ensure optimal preci- GPS technology is also essential to precise Adding this capacity opened the route to sion and accuracy of the job being done. data capture, which in turn enables a farmer precision agriculture, providing software Farming generates a ton of data. We built to make more informed decisions. For exam- and data-based solutions that work with up a large data platform in the cloud and ple, through GPS technology, farmers today equipment and analyze outcomes to solve have developed a robust set of web and can create geospatial maps of data collected complex problems on the farm. mobile apps for farmers to store, visualize, each planting season which can show a secure and analyze their data. Additionally, farmer what areas of their land was most since most farmers don’t farm alone, the successful in growing the crop and areas John Deere Operations Center has over 100 they might want to avoid. Having that insight connected software companies oering captured for many years, in some case up to tools and services that farmers can elect to twenty, enables better decision making and connect with and utilize. No other company more automation of the individual jobs as the has such a large and diverse ecosystem as the farmer can tell the machine where it wants Operations Center. Our extensive APIs enable the seeds to go.

Q Is this just for commercial farming? A Our technologies are used in over 100 Automation, connectivity, AI and countries in the world on farms focused on row and broad acre crops. To provide you machine learning are a few key with some context, of the 309 million acres technologies we’re focused on to of land in the U.S. that grows a crop, 99 percent of it is used for row crops like corn or build a continually smart, evolving broad-acre crops like wheat. The other one and more eicient farm. percent is used for fruits, nuts and veg- etables. We are focused on evolving farming practices for both types of crops using AI, robotics, data science and sensors. a collaborative approach across agriculture. The Deere-led eco-system provides farmers Q Is there a learning curve to using with insights for decision making and Deere this equipment? equipment with intelligence to automate A As with any technology, having a com- complex operations, both of which are critical prehensive understanding may not happen to managing the 1,500 variables that can be overnight, but we’re focused on making the associated with each acre of farm land. With technology impactful and easy to learn. Most this online platform, farmers can access, view, people are surprised to hear that farmers are archive, manage and share a wide variety some of the most tech-savvy professionals in of business information right from their the world. We’re seeing customers at all ages smartphone, tablet or computer whenever and backgrounds embracing and using the and wherever they need it. This tool connects technology. We continue to invest heavily customers with their trusted advisors and in building up capabilities in Digital User gives them the ability to make choices about Experience research, a truly fascinating and Q How is the collected data used and trans- the use and low of the data. Now farmers can important space. mitted? Can you explain how the MyJohn- store their data in a system that never forgets. Deere platform works? Q Can you talk about your presence in A Data is essential for farming operations Q How is GPS incorporated? Silicon Valley? today. Think of our machines as platforms for A It is important to note that John Deere has A In the spring of last year, we announced software and data. Our machines collect the our own, captive GPS company in Torrance the creation of our John Deere Labs in highest quality and most relevant data from California called Navcom Technologies downtown San Francisco to create a physical each job done in the ield. Sometimes, this whom we acquired in 1999. Our technology presence in Silicon Valley for prospective data is analyzed and acted upon in near real allows for accurate localization to within one partnerships and to advance new technolo- time within the machine itself or bringing an inch and we have leveraged this technology gies in AI, machine learning and robotics. operator or remote manager into the loop to now allow our machines to steer them- Late last year, Deere also acquired Blue by streaming data to a mobile device to help selves through the ield on precise guidance River Technology, a Silicon Valley startup, quickly identify and address any issues or lines. Think of the bene its: a farmer using to further strengthen our core capabili- problems that may come up. Our large ag this technology will never plant the same row ties. Blue River Technology’s main product, machines leave the factory with a 4G LTE twice, never miss a row and never spray the See&Spray — a smart sprayer system that can modem with Wi-Fi and Bluetooth and transmit same row twice. Most estimates would say distinguish weeds from plants in a ield — has data to mobile devices as well as to the cloud. that using Deere GPS technology will save a the potential to reduce herbicides use by up This connectivity also allows machines to farmer 10 percent of total input costs due to to 90 percent based on ield tests. That is truly

CTA.tech/i3 NOVEMBERDECEMBER 2018 9

i3_1118_08-09_TECH_Innovator_layout.indd 9 10/24/18 9:54 AM Tech

a breakthrough, and while we are a couple their farm through intuitive user interfaces line. We’ve since elevated this technology to years away from full production, we see great outside of the machines on the ield. I equip farmers with machines that not only promise in this technology and for many other recently met a farmer who said he expects drive themselves but have the lexibility to con- Deere machines. Together, we’re helping to manage his entire farm from his smart- trol other machines and make smart decisions. farmers move from making and implement- phone by the time he is 40. He is 35 today. In addition to focusing on other ele- ing decisions at a ield level to addressing the ments of the operation, one critical beneit needs of each individual plant. Q When did John Deere irst move into of this technology is having data on things This strategy and vision puts Deere in a digital farming? like the exact positioning of where seeds unique position to oer software engi- A John Deere has consistently pushed the are placed, year-over-year, in a geo-spatial neers, machine learning engineers and boundaries of what’s possible with technology map which enables a level of actionable data scientists an opportunity to work on the farm, starting with the introduction of insight not previously attainable. The insight for a company that is not only develop- our irst mechanically powered tractor 100 gleaned from this documentation, spanning ing cutting-edge technology but helping years ago. More recently, we ushered in the 20 years in some cases, has enabled more transform one of the only industries that irst elements of autonomy to the farm 20 precise job automation and will be founda- impacts every single person in the world. years ago with the acquisition of NavCom, tional as we continue innovating. where we integrated highly-precise GPS The introduction of IoT was another major Q What tech areas do you think will navigation and self-driving technology into disrupter for the farming world, and we’ve most signi icantly impact farming in the our tractors and other equipment. This was a delivered wireless, data and sensor technolo- coming years? groundbreaking development which enabled gies to simplify operational decisions, enable A The challenges associated with farm- farmers to focus on the other key elements of machine-to-machine communication and aid ing are not going to ease over the coming their operation such as setting adjustments in leet management. A great example of this years, so we’ll continue to see growth in taking place in the cabs of our equipment, technology in action is our remote service smart technology such as AI and machine rather than focusing on driving in a straight capabilities, which enables John Deere Seth Lowe by Photography learning on the farm. AI and machine learning will become as core to Deere as engines and transmissions are today. In fact, we have a camera sensor on board our new S700 Combine Harvester that uses a convolutional neural net to moditor har- vested grain quality and make recommen- dations to optimize other settings to ensure the best outcome. Think about that — John Deere has machine learning systems in production, in customer hands today. We envision a world where agriculture machines not only navigate without human intervention, but they will perform millions of micro jobs per day better than a human. By continuing to automate more and more machine elements of the operation, the farmer will be able to focus on other, non- autonomous parts of the business. Machine learning and computer vision technology will begin to open the opportunity to farm at an individual plant level. Machines will be designed to sense, understand and tend to the needs of every plant, maximizing yield and productivity, and reducing costs. Data will play an ever more important role. We’ll see more precise and actionable data generated from the equipment that will not only help improve analysis and better decisions by the farmer but will also help drive the machine learning and autonomous systems I mentioned already. Finally, as autonomy increases, we’ll

see more and more farmers interacting with credit

10 NOVEMBERDECEMBER 2018 IT IS INNOVATION

i3_1118_08-09_TECH_Innovator_layout.indd 10 10/24/18 9:55 AM Tech

dealers to remotely check the health of farm- Q What is precision agriculture? Has this up having waste in some areas because the ers’ machines proactively. If an alert comes resulted in higher yields and other bene its? soil couldn’t hold the nutrients and serve up, the service technician is notiied instantly A Precision agriculture is all about using the plant at that level in all spots. To better and can remotely analyze the root cause and, technology like sensors, GPS, data, AI and design, develop and bring advanced preci- in many cases, even solve the issue remotely, automation to make more informed and sion technologies to market, we developed without the farmer even knowing about the accurate decisions. Before the introduction John Deere’s ISG. ISG is at the core of Deere’s issue in the irst place. of precision agriculture technology, all ields innovation, working across all divisions to The John Deere Intelligent Solutions and crops were treated as if they were the make sure that the company is aligned in Group (ISG) is a division of Deere that creates same and had the same needs. For example, technological advancements. The use of advanced AI, machine learning, IoT, mobil- by applying the same amount of fertilizer precision ag not only results in higher yields, ity, guidance and automation technology to down over the entire ield, famers ended but these machinery systems also enable ultimately improve our customers’ productivity, farmers to increase their eiciency and proitability. Through partner- output while controlling ships and R&D, we continue to innovate at a costs, conserving land scale that’s faster and more advanced than and water resources anyone else in the industry and will continue Can you talk about and reducing the overall to lead the charge to bring intelligence to farm environmental footprint of equipment to enable farmers to feed the world. your participation agriculture. We’re shifting from bigger, faster and at CES? stronger machines, to solutions that are more Q Q What are your global automated, easier and precise. We’re also A This year’s CES is huge for us. We’re going big. Our goals for the company? proving that not only does “Nothing Run Like a booth will be located on the lower level of South Hall A Farmers need to con- Deere,” but “Nothing Thinks Like a Deere” too. (LVCC, South Hall 2 – 26408) within the artiicial intel- tend with a lot of chal- ligence section. We’re excited about this space because lenges stemming from a attendees will have the opportunity to speak with our growing population and team and see in person the intricate technologies that unpredictable weather. At farmers are using today – from sensors to AI, connectiv- the same time, we’re see- ity and everything in between. They’ll get an up-close ing an increase in urban- view of our latest combine, or what we like to call our ization and a decrease interconnected factory on wheels, right on the show in arable land and skilled loor. It will be hard to miss! On top of that, you won’t just workers in rural areas. see cars in this year’s self-driving lot. It will be hard to Our goals revolve around miss the big green tractor driving around the lot show- our farmer customers. ing o our automated technology. We strive to bring leading edge technologies to solve problems and capture opportunities that will make Deere customers the most proitable and sustainable farmers in the world. This year, we surpassed a signiicant milestone of having our precision agriculture technology adopted in more than 100 countries and have well over 100 million acres engaged in our digital ecosystem. On top of that, 25 percent of the world’s arable land is being farmed with Deere technology. Our global growth isn’t just rooted in products, but in bringing connectivity to rural areas in South America, Africa and India so that the technology works. It’s also driven by a deep customer understanding of regional-speciic farming practices which drove each technology value proposition required for customer adoption.

GO ONLINE: Read the entire

credit interview at CTA.tech/i3.

CTA.tech/i3 NOVEMBERDECEMBER 2018 11

i3_1118_08-09_TECH_Innovator_layout.indd 11 10/24/18 9:55 AM Tech By Mark Chisholm

Singapore INTERNATIONAL FOCUS Named ‘Innovative SINGAPORE Champion’ by CTA In the 2018 International Innovation Scorecard, produced by CTA, Singapore is ranked the sixth most innovative country in the world. According to the scorecard, Singapore is a “playground for innovative tech,” outranking every other country in its percentage of highly-skilled employees and tax friendliness. Singapore The report also praised the country for its high levels of Government ethnic diversity and having little unruly regulation on Launches $30 self-driving vehicles and drones. Learn more at www. Million Clean internationalscorecard.com. Tech Grant Singapore’s Senior Minister of State for the Environment and Water Resources Amy Khor in INTEL, MICROSOFT TO September announced a new $30 million grant for SUPPORT AI WORKSHOP businesses to oset the AI Singapore — a national initiative to enhance cost of eicient cleaning Singapore’s arti cial intelligence (AI) capabili- technologies. Waste ties — unveiled a new program in late August management companies called AI for Everyone, which will provide looking to enlist technol- free AI training to 10,000 participants. The pro- ogies such as automated gram also aims to assuage fears that AI street cleaners and will replace jobs. AI for Everyone features a smart waste bins can series of three-hour workshops over the next receive up to $250,000 three years. Materials for these workshops per company. The grant will be provided by the program’s content will be available until partners, Intel and Microsoft. January 2020.

Facebook to Build $1 Billion Data Center Facebook selected Singapore as the location for a new $1 billion data center, slated to open in 2022. The new facility will run on 100 percent renewable energy and use a liquid cooling system to reduce the amount of water used by 20 percent. The new 11-loor, 170,000 square foot site is expected to create hundreds of jobs in the west- ern Singapore region. From top right: Joyt/Getty Images, Courtesy of Facebook, Jonathan Chiang/Getty Images, Peter Hermes Furian/Alamy, Martin Puddy/Getty Image. Image. Martin Puddy/Getty Hermes Furian/Alamy, Images, Peter Jonathan Chiang/Getty Images, of Facebook, Courtesy top right: Joyt/Getty From

12 NOVEMBERDECEMBER 2018 IT IS INNOVATION

i3_1118_12_TECH_InternationalFocus_layout.indd 12 10/24/18 10:14 AM By Murray Slovick Tech

A TECH TO WATCH Making Machines Think Like Humans

ight at the start, I want to invoke a temporary restrain- from, that of a human. The Turing test ing order: Nowhere in this column will I use the phrase works like this: One of two partners in a R “machines will never think like humans.” Once upon a conversation is a machine. A person com- municates with both the machine and time no one thought humans would ever y in a machine, so I human via text on a screen and must guess will be careful about saying what machines can do. whether the typed responses are being written by the human or the computer. The With that disclaimer, even with the large quantities of human-provided data. more often the AI is mistaken for a human, advent of arti cial intelligence (AI), The main obstacle we face in duplicating the better it is. When the human cannot computer programs that think like human learning is how to get machines to reliably tell the machine from the other humans are far beyond where we are learn in an unsupervised manner. They human, the machine has passed the test. now. Today’s AIs are powerful and need to become more adaptable. We even- Part of the diculty of developing truly skilled machines (or chips) that can tually want machines that can learn a new intelligent machines is that we don’t “learn” in new ways. The obvious evi- skill from just one or two examples, dupli- understand how natural intelligence dence of the improved powers of AI are cating the human ability to work success- works. Our brain contains billions of neu- gadgets like smart speakers with virtual fully in entirely new situations. rons and we learn by establishing electri- assistants, being able to unlock your Supervised learning is not how humans cal connections between dierent iPhone via face recognition, online apps learn. Children can learn just by observa- neurons. But we don’t know exactly how that anticipate your next purchase and tion. Teachers don’t tell a child “this is these connections add up to achieve upcoming self-driving vehicles. water and water is wet.” They experience higher reasoning, not to mention infer- We’ve also watched IBM’s Watson it for themselves and know it with cer- ence, instinct and self-awareness. defeat human contestants on the game tainty after just one trial. Machine reasoning will improve as we show “Jeopardy,” and Google’s AlphaGo In 1950, Alan Turing, a computing pio- develop systems that continuously sense, beat the world’s best players of the com- neer, conceived a test to measure the prog- interact and learn from the world. But plex Chinese board game Go. ress of a computer exhibiting intelligent building a machine that can replicate key behavior equivalent to, or indistinguishable facets of human thinking will take time. AI Breakthroughs Machine learning involves training computers to perform tasks based on examples, rather than solely on programming. Deep learning has made this approach more powerful by using arti cial neural networks that loosely mimic how our brain cells work, forming adjustable connections between dierent network parts. The machine can then learn from its experience and build up an ability to interpret similar data in the future. But even after deep learning, an AI computer still must gather facts about a situation through sensors, compare this Machine learning information to its stored data, run involves training through possible actions, choose the computers to perform action likely to be successful, and nally “remember” to replicate this action the tasks based on next time it encounters the situation. examples, rather than The diculty is that all the impressive solely on programming. CES 2019 See the latest in AI, robotics progress we’ve made to date is mostly due and the smart home. to learning systems that take advantage of 2019

CTA.tech/i3 NOVEMBER DECEMBER 2018 13

i3_1118_13_TECH_ATechToWatch_layout.indd 13 10/24/18 10:14 AM Tech By Susan Schreiner

C4 TRENDS

way we enjoy these things in the future.” The Promise of 5G at Home Vicky Coif, CTO at Warner Bros. says, “We’re engaging with 5G because we rec- G is becoming reality with carriers rolling it out in ognize 5G is going to impact how fans and limited markets. Combined with the scaling of the consumers engage and interact with our 5 Internet of Things (IoT) and artificial intelligence content. But not just that — if you look at our production and distribution opera- (AI), 5G offers new capabilities beyond enhanced broadband, tion, it’s going to change fundamentally including the promise of hyperconnectivity. With the added how those work as well. It’s going to demand of sending and receiving data from IoT devices, rang- improve how our creatives and employees ing from refrigerators to dog collars, people will expect function on a day-to-day basis.” instantaneous gratification with 5G’s increased transmission speeds and amplified bandwidth. Connected Screens Although smartphones will still be used, In 2019, 5G will impact gaming, dis- the Super Bowl in Minneapolis to VR 5G can deliver video streams to many plays and TV experiences. 5G will boost headsets in New York City. It provided a di¤ erent displays. Every wall, surface AI — including virtual assistants such as virtual in-stadium experience to fans, and screen could become an entertain- Amazon’s Echo and Google Home. Early including high-resolution replays on ment window, letting consumers enjoy applications will include xed wireless secondary screens that employed multi- HD video without expensive hardware. access for the home and connected shut- ple 4K and HD video streams. Low-cost slim-line screens could tle services in cities. Ultimately real- In Japan, NTT DOCOMO has hosted remotely access interactive entertain- time information will let cars talk to “new sensory music live events,’ employment from cloud-based servers. other cars, making roads safer and more ing a range of image technologies such as In 2020, Foxconn plans to produce e cient with always-on connected cam- head-mounted displays and 5G-connected displays supporting ultra- eras, sensors and alarms. 3D-holographic image projection tech- sharp 8K. Hollywood is beginning to pro- The key to 5G lies in “how we take trials nology to give remote viewers the sense duce movies in 8K, and Japanese public TV and learnings and make them consumable of a live performance. “8K video trans- company, NHK, plans to broadcast the products,” says Igal Elbaz, SVP of wireless missions are ideal for customers who 2020 Tokyo Olympics in 8K. Meanwhile, network architecture and want a more realistic live personal 8K video cameras are becoming design at AT&T. 5G will be experience of sports and available from manufacturers like GoPro. a game changer in enter- music,” according to 5G is expected to generate new invest- tainment. It promises to By 2035, 5G DOCOMO. “In combina- ment across the ecosystem. “By 2035, deliver 4K and 8K Ultra will enable tion with technologies 5G will enable $12.3 trillion of global High-De nition, 3D and $12.3 trillion of like AR and VR, it has the economic output and support 22 million holographic video, as well global economic potential to change the jobs worldwide,” says Ronan Dunne as augmented reality (AR) output and executive vice president and group and virtual reality (VR) president of Verizon Wireless. “5G applications for gaming support 22 million is creating the conditions to and immersive TV. jobs worldwide. bring pieces together and har- ness talent to build new Immersive Experiences opportunities. It will her- With 5G, be thoroughly immersed in the ald a new Renaissance,” comfort of your home as if you were at an adds Dunne. events venue with new digital services and content for connected stadiums. For CONTACT: instance, live sports coverage could be Reach Susan at broadcast with a 360-degree view [email protected] from the athlete’s perspective. In early 2018, Verizon used a prototype 5G network to CES 2019 See how 5G enables everything from smart cities to arti icial intelligence. stream live, 360-degree 2019

stereoscopic video from Images Millionsjoker/Getty

14 NOVEMBER DECEMBER 2018 IT IS INNOVATION

i3_1118_14_TECH_C4_Trends_layout.indd 14 10/24/18 10:14 AM By Leslie King, CTA Tech

PIPE LINE The Standard for Energy Management Connecting Homes to the Smart Grid

s consumers and homeowners, we are using more elec- for power with available supplies. tronic devices and appliances, and looking for ways to Consumer devices equipped with A conveniently connect those products to our home net- ANSI/CTA-2045-A interfaces can par- work. We expect our gadgets to “stay on,” but that can also mean ticipate in energy management programs such as demand response and higher energy bills. Being able to determine our energy usage can interconnect with distributed and adjust usage based on personal needs can help consumers energy resources including local gener- manage their energy costs. ators (wind and solar) and energy storage devices.” The smart grid vastly improves our nation’s energy infrastructure by allowing A Look at One Case for instant, real-time information sharing Con Edison in New York has made between an electric utility and its cus- CTA-2045-compliant modules avail- tomers. With the right equipment, con- able to customers buying packaged ter- sumers can monitor and manage their minal air conditioners typically found homes’ energy use. This same equipment in hotels, hospitals and apartment also enables the electric utility to digitally buildings. Under the Con Edison pro- respond to changing electricity demands gram, the utility can remotely adjust a or conditions, maximizing network e - customer’s thermostat on hot days ciency and minimizing costs for both when the demand for power is high, utilities and their customers alike. saving both the customer and Con ANSI/CTA-2045-A, Modular Edison money. The customer is always Communications Interface for Energy in control, though. Customers are elec- Management, outlines speci cations for a tronically noti ed when their thermo- communications interface (known as a stat has been adjusted by the utility modular communications interface or and the customer can manually over- MCI) that facilitates communications ride the utility’s action. The program is between residential devices and the CTA Standards part of Con Edison’s strategy for main- smart grid for applications such as taining reliable service during extreme energy management. This interface can weather conditions. pass simple communication through ANSI/CTA2045A, MCI for Energy ANSI/CTA-2045-A, revised in March standard protocols, allowing energy man- Management 2018, has several companion standards agement signals and messages to be ANSI/CTA2045.1, MCI for Firmware for smaller interface designs and device exchanged among devices in a home and Transfer Message Set pro les including message sets for ther- the smart grid system. These devices can mostats, rmware transfer and generic ANSI/CTA2045.2, and ANSI/CTA2045.2, include consumer products such as sen- display. Members of CTA’s Modular Amendment 1 MCI for Generic Display sors, thermostats or appliances, as well as Communication Interface for Energy Message Set energy-related equipment such as energy Management Committee have made management hubs, energy management ANSI/CTA2045.3, MCI Interface for e orts to harmonize ANSI/CTA-2045-A controllers and residential gateways. Thermostat Message Set with international standard ISO/IEC As explained by Dr. Kenneth Wacks, 10192-3, Modular Communications Chair of CTA’s Modular Communication Interface for Energy Management. Interface for Energy Management and to accommodate new technologies CTA’s standards committee is consid- Committee: for power production. Smart grid pro- ering additional message sets for light- “Utilities worldwide are investing grams are being offered to consumers ing control and solar inverters. Contact heavily in smart grid infrastructures to for energy conservation, and for Leslie King: [email protected] for infor-

Chesky_W/Getty Images Chesky_W/Getty ensure a reliable supply of electricity energy management to align demand mation on how to get involved.

CTA.tech/i3 NOVEMBERDECEMBER 2018 15

i3_1118_15_TECH_Pipeline_layout.indd 15 10/24/18 10:32 AM block block RETHINKING by BUSINESS,

i3_1118_16-19_FEATURE_Blockchain_layout3.indd 16 10/24/18 11:14 AM JACK CUTTS BY

Unlike encryption/decryption, data that is properly hashed cannot be unhashed, greatly bolstering its security and usefulness for this block type of application. Using hashing in this way, a doctor’s o ce, for example, could verify your epending upon whom you ask, block- Social Security number by having the patient block chain is either the next big thing in tech give them the hashed value of their number or is just more of the dross drummed which the doctor’s o ce could compare against up by the never-ending tech hype the hashed value stored in the blockchain. Dcycle. Like many things in the world of Similarly, the blockchain can store images, video tech, the reality likely will fall somewhere in clips, code or anything that can be stored digi- between those two extreme ends of the spec- tally — all securely hashed. trum. As a broad technological concept, block- RETHINKING chain has the potential to reduce ine ciencies in REDUCING INEFFICIENCY certain economic processes, disseminate infor- WITH BLOCKCHAIN mation in a more democratized way and help As startups around the world have proven, mitigate unfairness or con icts of interest when there are plenty of antiquated business models di erent parties’ incentives may not be aligned. out there that are ripe for disruption by someone who is willing to rethink a process, become by HOW DOES more customer-centric, or anger more estab- BLOCKCHAIN WORK? lished players. At its most basic, blockchain is a One industry ripe for this disruption is the distributed database whose trans- shipping industry. The increasingly globalized actional data is stored sequentially in nature of commerce means that transoceanic a way that cannot be edited, deleted shipping is as important as ever for the free or re-ordered without a consen- ow of goods around the world. sus of other parties who are Perhaps emblematic of that importance, also maintaining the long-haul shipment of goods often come with same transactional data- hundreds of pages of paperwork to help it pass BUSINESS, base. Those counterpar- through the hands of the various ports, dock ties can be friend, foe, neither workers, insurers, transport companies and or both. Data stored in the block- governments it interacts with on the way to its chain is hashed – encrypted in destination. At best, shippers use a 60-year- a way that values or info old system called electronic data interchange stored in the block- (EDI), whose best days are well behind it. chain can be veri ed Delays in certain key pieces of paperwork and without being read- transmittal of data can delay a shipment for able by non-parties to hours, days or even weeks. a transaction. Some heavy hitters within the shipping and tech industry are setting out to change that. IBM and Danish shipping titan Maersk teamed up on a new project called TradeLens that uses the power of blockchain to help goods move faster and more e ciently around the world. Projects like TradeLens seek to streamline shipping by, for Shana Novak/Getty Images Shana Novak/Getty

i3_1118_16-19_FEATURE_Blockchain_layout3.indd 17 10/24/18 11:14 AM THE BENEFITS INCREASING TRANSPARENCY WITH BLOCKCHAIN Blockchain technology can also use the power of OF BLOCK the “distributed ledger” to increase transparency among parties to a transaction and, potentially, CHAIN those who have oversight over a certain industry or group of companies. One of the primary causes of the housing bust 1. of the late 2000s was overleverage. Many indi- Reduces viduals and small-time investors got caught up in Ine iciency the housing boom and spent more on their house (or houses) than they could aord. Money was cheap, so to speak, and lending standards were lax compared to prior eras in American history. Many banks were overleveraged as well. Not 2. only did certain banks make loans that turned Increases out to be bad bets, many investment banks Transparency traded in collateralized debt obligations (CDOs) that were derivative securities designed to secu- ritize and sell cash ows generated by mortgage payments made by individuals. However, because of the nature of the derivatives 3. trade in CDOs, there was nothing stopping a mort- Overcomes gage on the house at 123 Pine Street in Miami from Misaligned example, encoding being securitized and sold three, ve, even 20 times all necessary paper- in a short time span. If the mortgagee pays on time, Incentives work and approvals then all is well, and banks make money. However, in the blockchain if the mortgagee defaults, the economic damage before a container spreads beyond the lien holder to all the banks hold- leaves its port of ori- ing CDOs based on the underlying mortgage. gin. Normally, the The damage from default on that mortgage has alternative is waiting weeks or months for con- the potential then to be three, ve or even 20 tracts to be executed and payments to be made to times worse. In some cases, banks packaged the various parties involved in a shipment. derivative CDOs made of other CDOs (dubbed a Further, using the power of smart contracts “CDO-squared”), bringing about the potential for — code that is embedded in the blockchain and exponentially more nancial harm. executed when certain conditions are met — a What if blockchain allowed all parties and payment to a port could be triggered automati- potential parties to a transaction to see exactly cally once cargo is inspected and approvals get who owned each side of a nancial transaction, obtained, allowing a ship to easily set sail for thereby making an opaque transaction more its next waypoint. transparent? What if a central bank, for exam- The mortgage underwriting process can also ple, could use blockchain to determine which benet from blockchain. Now, each party requir- local markets were the most overleveraged in the ing information requests copies of relevant doc- CDO market and use that information to warn uments individually using delivery methods as banks, adjust underwriting standards or modu- diverse as electronic upload, email, fax, courier late interest rates to mitigate risk? and carrier pigeon. A blockchain that can encode By using blockchain to tie all CDOs and CDOs- frequently requested documents and keep them squared back to the underlying asset, parties safe could be a boon to hopeful home buyers making a transaction could untangle a mess of during an extremely stressful and invasive time. intertwined transactions to determine just how Imagine a mortgage underwriting process where the potential buyer inputs all relevant nancial documents into the blockchain, making the title company, the buyer’s agent and so forth readily available for the underwriting bank.

18 NOVEMBERDECEMBER 2018 IT IS INNOVATION

i3_1118_16-19_FEATURE_Blockchain_layout3.indd 18 10/24/18 11:14 AM money than the next highest bidder simply because the high bid carries more risk for the underwriter and therefore might inadvertently scuttle a sale at the eleventh hour. Blockchain can help solve a couple of issues leveraged an asset really was, thereby allowing inherent in the scenario described above. If bids them to price their risk accurately. are encoded in blockchain, the timing and quan- Another interesting use of blockchain to tity of bids can be known by all parties and poten- increase transparency comes from the world of tial bidders. Second, technology exists to determine the Internet of Things (IoT). The blockchain’s if an incoming bid is higher or lower than a bid ability to store video footage could be used to already recorded in the blockchain, even if that store video feeds from a police ocer’s body value is hashed and not human-readable. camera. If data from the body camera were That way, a home seller can verify the quantity, stored not just on the camera itself but uploaded timing and competitiveness of incoming bids while to a cloud-based blockchain each maintained by, a buyer’s agent can bid enough to be the high bidder for example, the police department, the police without causing their client to overpay for a home. union and the state’s attorney general, then foot- It is important to point out that the majority of age could neither be added, deleted or edited to buyer’s and seller’s agents are honest people work- cover up misdeeds or corruption. ing in the best interest of their respective clients, but In this example, the blockchain increases it is rare to nd an economic system or arrangement transparency by being a solution that overcomes that cannot benet from some measure of increased the misalignment of incentives between a police transparency and reconciliation of incentives. department, a union representing employees and an attorney general’s oce looking to stamp NO SILVER BULLET out corruption or other transgressions. By Blockchain is not the perfect solution to every encoding data into the blockchain in multiple problem. Many of the problems described above locations, video footage cannot “go missing” or could, in theory, be solved with a database and a be altered. Events like turning o a body camera well-crafted and vigilantly enforced legal frame- or device failure could also be encoded in the work. The power of blockchain to solve these chal- blockchain for all to see and verify. lenges lies primarily in its distributed nature along with its ability to be both open to inspection (and OVERCOMING MISALIGNED therefore transparent) while also protecting its INCENTIVES WITH BLOCKCHAIN data from loss, theft, alteration or misuse. A third major benet of blockchain is its ability to Further, there is a potential cost of non-participa- overcome misaligned incentives and asymmetry of tion if certain players in an industry like shipping or information in certain situations. Real estate is real estate choose not to work within the blockchain another tradition-bound industry that is on the ecosystem. Imagine being the only port in southeast cusp of signicant disruption. Anyone who has Asia to still require faxed paperwork or being the ever bought or sold a house can tell you about the last real estate agent in town who only accepts bids opacity of the negotiation process between the over the phone and won’t disclose relevant details. buyer’s and seller’s agents. It is not uncommon for Blockchain is still in its infancy. Many exciting sellers’ agents to negotiate the sale price of a home projects with interesting applications of the over the course of hours or days while the seller technology have been announced. Many of those waits by the phone for news of the nal sale price. projects will never make it beyond the press Sellers can inquire as to the details of oers release. Some will fail because they were mis- made on a property, but the timing and nature of applications of a headline-grabbing hot-this- bids from potential buyers, especially in multiple- year buzzword. But we will surely see unique bid situations, are often not disclosed or glossed situations where blockchain is the best and most over. Further, in a competitive bidding situation, logical solution to a problem that, as of yet, we the seller’s agent is the only party to the transac- have failed to solve. tion who holds all the information on bids and other negotiated terms. It is not inconceivable that a seller’s agent, who is motivated rst and foremost to generate a successful sale, might steer

Shana Novak/Getty Images Shana Novak/Getty a home sale away from a buyer who oers more

NOVEMBERDECEMBER 2018 19

i3_1118_16-19_FEATURE_Blockchain_layout3.indd 19 10/24/18 11:14 AM CAR

he computers, sensors T and software in cars are getting so smart they may eventually detect whether the driver and passengers are happy or sad, comfortable or uncomfortable, alert or distracted. And as a result, driving automobiles can be made safer and more enjoyable. “Driver monitoring is extremely important for active safety systems as well as automated systems,” says Phil Magney, founder and principal at VSI Labs, an automotive technology applied research rm based in St. Louis Park, MN. “It may have been a nice-to-have feature beforehand. Now you can say it de - nitely is a must-have feature.” Nevertheless, he says, car occupant monitoring overall remains in a state of ux — particularly regarding user experience. SMARTS Images Triloks/Getty i3_1118_20-23_FEATURE_Car_layout.indd 20 10/24/18 11:29 AM FROM GAZE TRACKING TO otherwise, to give a tired or distracted driver extra EMOTION SENSING time to react, Shapiro says. “Once you have the camera or other sensors around Emotion-sensing technology could lead the car the vehicle, it’s just software that’s taking that infor- to take actions proactively, such as playing certain mation and doing di erent things with it. And so, music or adjusting cabin temperature. Or it may you’re going to see an evolution of the vehicle con- make suggestions and engage in a conversation tinue ever after you have it,” says Danny Shapiro, with a passenger, for instance, o ering to lower a senior director of automotive at NVIDIA Corp. in window if lip-reading software senses someone Santa Clara, CA. “You’re going to get updates that complaining about being hot. will add new convenience features and new sensing To realize this vision, NVIDIA has brought to capabilities,” he says. “The fundamental shift that’s market a new low-power (30 watt) computer sys- enabling this is AI (arti cial intelligence), and spe- tem-on-a-chip named DRIVE Xavier and a com- ci cally deep learning is the ability to take that data plementary software development kit (SDK) and make sense out of it and analyze it with super- named DRIVE IX (Intelligent Experience) that human levels of detection.” provides the building blocks for behavior under- For example, Shapiro says a camera inside the standing and action based on it. vehicle could determine a driver’s attentiveness by The setup uses facial recognition technology to detecting their eye blink rate and sensing their unlock the car door for an approaching driver, head pose. These checks could also determine if the open the trunk if they are seen lugging grocery driver is close to falling asleep. This could be bags, and keep a car door locked to prevent some- merged with input from outside sensors that detect one inside from opening it into the path of an a pedestrian preparing to cross the oncoming cyclist, Shapiro says. It car’s path. And the car may then will be in new vehicles shortly, determine if it needs to issue a he predicts. It was announced collision warning and auto- at CES 2018 that Tier 1 brake sooner than it would auto industry suppliers

SMARTSBy Robert E. Calem i3_1118_20-23_FEATURE_Car_layout.indd 21 10/24/18 11:29 AM In 2017, Eyeris began working on emotional AI for monitoring a person’s face and upper body region employing standard (2D) cameras and showcased this technology at CES 2018 in a Tesla Model S demo car equipped with ve cameras “By mating that track the driver and all passengers. “We also released an algorithm for action, action recognition and activity predic- tion, which uses body tracking as a pre- activity requisite,” Alaoui says. It recognizes, for instance, that the driver is smoking, and body texting, eating or drinking. Although the driver’s head and eyes are looking at tracking the right place, he might be reaching out to the glove box or trying to open a with face bottle of water, which of course trans- lates to distraction. analytics, “By mating action, activity and body tracking with face analytics, we derive a we derive wholistic interpretation of the human behavior inside the vehicle,” he says. A a wholistic higher layer of algorithms called a deci- would receive rst shipments of DRIVE sion-making AI engine then responds to Xavier early this year. interpreta- this interpretation and informs the vehi- In fact, AI is a “very pragmatic” way to cle — allowing it to passively or actively understand both the driver’s engagement tion of the react, such as by readying a collision and the context in which he’s operating, avoidance technology to take over. says VSI Labs’ Magney. “You can pick up human Further, Eyeris’ technology predicts on many di erent attributes and many dif- imminent distraction on a second-by- ferent elements.” But the technology’s need behavior second basis, Alaoui says. for training data is never-ending and Beyond safety, Alaoui anticipates “nothing is ever nished,” he adds. inside the Eyeris’ technology could be used in For Eyeris, a four-year-old Palo Alto, shared self-driving cars to tailor vehicle CA, company specializing in deep learn- vehicle.” performance and interior and infotain- ing-based emotion recognition software, ment features — including the suspen- the pursuit of driver monitoring discus- Modar Alaoui sion’s ride quality, ambient lighting and Founder & CEO sions emerged early to much skepticism as streamed content — corresponding to Eyeris well as interest, says Founder and CEO the number of passengers and their gen- Modar Alaoui. He rst presented “driver ders, ages, activities and moods. monitoring that incorporates emotional “The future of mobility is going to distraction as a measure for determining depend hugely on human-centric data cognitive workload” at the 2014 TU in the ridership economy,” he declares. Automotive conference in Detroit, when “This is really going to change transpor- driver monitoring focused only on eye gaze tation as we know it.” and head position tracking technology. He While vehicles like the Tesla Model 3 adds, “We argued that is not enough to and the 2018 Cadillac CT6 today have determine attention or distraction because one camera in the cabin to watch the a person can still be looking at the right driver alone, “future generations of vehi- spot, their eyes are open and their head is cles are going to have an average of still in the right direction, but they could be highly emotionally distracted.”

22 NOVEMBERDECEMBER 2018 IT IS INNOVATION

i3_1118_20-23_FEATURE_Car_layout.indd 22 10/24/18 11:29 AM between three and six cameras inside the concept car with another way to identify Fingerprint identi cation of drivers is car” to track all occupants, Alaoui says. the vehicle’s passengers and conform it coming, too, and ultimately augments He expects the rst cars with three cabin to them: four iris scanners in drop- both computer vision and voice biomet- cameras to be in dealerships next year, down screens supplied by Gentex Corp. rics in self-driving cars, says Sunil and next-generation cars to include as The biometrics technology identifies Thomas, vice president of automotive at many as seven cabin cameras. each person and personalizes the seat semiconductor maker Synaptics Inc., in The company’s demonstration vehicle position, HVAC controls, streaming San Jose, CA. “We think a ngerprint at CES 2019 will contain 10 cameras, audio and other settings according to sensor is the entry point,” Thomas says. Alaoui notes. user-determined presets. In addition, it To begin with, it could be put on the At least one driver-facing camera is a facilitates secure access to cloud-based vehicle’s “engine start” button for theft necessity in any Level 3 self-driving car, work files or e-commerce. deterrence and to enable user-de ned like the CT6, says Christian Reinhard, For in-cabin monitoring, “the holy functions — and he expects this to be on vice president and head of customer grail would be one camera that does the market in 2020. projects at Elektrobit, a supplier of everything,” says Craig Piersma, director Fast forward ve years, and Thomas embedded and connected software and of marketing at Gentex in Zeeland, MI. foresees voice interactions extending services for the automotive industry, “That’s just not as easy as it sounds.” outside the vehicle, as well — cars in based in Erlangen, Germany. Level 3 On the other hand, VSI Labs’ Magney e ect listening to and conversing with requires the car to cede control to a says, people are generally unwilling to be pedestrians. “We have some experimen- human under certain conditions, and watched by a camera. “I’m a little leery of tal versions of that currently,” he says. the camera confirms that a person is that whole approach, frankly,” he adds. “Technologies are there and capabili- piloting. However, “you can really do a A further possibility is identifying a ties are there,” concludes Synaptics’ lot with the camera,” Reinhard pro- driver or passengers by their voice pattern Thomas. But the auto industry must claims. “You can even detect the heart to customize the in-cabin experience, says “open its mind to think a little bit di er- rate of the passengers using the camera, Daniel Sisco, director of cockpit systems ently, to bring these technologies into and other health data.” And this can at Renesas Electronics America Inc., in their cars faster,” he declares. lead to a variety of health applications Milpitas, CA. On-screen user-interface inside the car, he adds. choices could be fewer or greater depend- CES 2019 See the latest in self-driving Indeed, emotion-recognition and ing on the audience. “That’s well within cars and vehicle intelligence. physiology monitoring are popular reach technically,” he says. 2019 subjects among automotive user experience designers now, says Jacek Spiewla, user-experience manager of advanced development at Mitsubishi Electric Automotive America in Northvale, MI, which makes driver “Emotion-recognition and monitoring systems for automakers. But scant attention has been paid to physiology monitoring are “what are we actually going to do with this information. You can’t ultimately determine whether somebody is dis- popular subjects tracted from the driving task,” he says. There can be indications, “but I really among automotive don’t know whether you’re spacing out or not,” he contends. user-experience ID’ING WHO’S WHO AND designers WHAT’S WANTED Also at CES 2018, Rinspeed AG — a now.” Swiss car design rm — unveiled its Snap “skateboard and pod” self-driving

CTA.tech/i3 NOVEMBERDECEMBER 2018 23

i3_1118_20-23_FEATURE_Car_layout.indd 23 10/24/18 11:29 AM TECH: THE THIRD WHEEL IN THE DOCTOR PATIENT RELATIONSHIP BY ROBIN RASKIN Kawi Chumrak / EyeEm Chumrak Kawi

i3_1118_24-27_FEATURE_Digital_Health_Layout2.indd 24 10/24/18 11:41 AM decade ago, physicians struggled to cope when their patients came in armed with A reams of Google printouts that explained their symptoms. Today, that same patient is often generating personal data through the use of apps and wearable devices. As more patients rely on a host of new technologies and services, rather than a traditional doctor’s office visit, the medical profession is re-examining the traditional doctor/patient relationship, making room for the third wheel: tech. Tech adoption, along with the expanded depth of what devices and apps can monitor and detect, is well docu- mented. According to a 2018 survey by Rock Health, the number of respondents adopting at least one THE THIRD WHEEL IN THE digital health tool increased from 80 percent in 2015 to 87 percent in 2017. Nearly 70 percent of Americans have used mobile platforms to handle their health issues and 80 percent use some kind of wearable device to stay updated DOCTOR about their health PATIENT RELATIONSHIP

i3_1118_24-27_FEATURE_Digital_Health_Layout2.indd 25 10/24/18 11:41 AM activities. A Deloitte study indicates company that o ers mobile products rede ning itself as a wellness company, that DIY health spans generations. and wearables catering to older citi- rather than a weight loss company. The While millennials are more likely to zens, caregivers and those who need company learned that roughly 1.3 mil- use digital health tools, seniors are emergency help. At the same time Best lion unique members have a synced t- actively using apps or websites for Buy is testing a service called Assured ness device; 1.8 million unique refilling prescriptions or prescrip- Living to help older adults age in members engaged on Connect, the tion reminders. places with tech assistance. And the company’s digital social network com- store’s digital health and wellness foot- munity; and 2.6 million members used A HEALTHCARE print has expanded to carry a variety the barcode scanner to track food. SHOPPING SPREE of devices from baby monitors and Today’s health and wellness consumer pre-natal care to tness devices, smart THE DOCTOR IS HOME can shop for health tech just about thermometers, blood pressure devices Digital health o ers many alterna- anywhere - pharmacies, supermar- and more. For example, Walgreens’ tives to a doctor’s o ce visit. kets, big box stores, cosmetic super- Find Care Now option o ers immedi- Tytocare, a new telehealth platform, stores, convenience stores and online ate telehealth care online and a suite looks like a small docking station. retail, in partnership with their physi- of apps to manage everything from Consumers can plug various adapters cians or not. Walgreens, CVS, Costco prescriptions to smoking cessation. into it to capture data from their and Amazon are just a few of those Health purchases often occur out- ears, throat, lungs and more. Data is stepping up their digital health game side of traditional stores, too. Fitness relayed via smartphone to the doctor, with more products and services. clubs like Orangetheory Fitness use where it can be evaluated. Alivecor’s Best Buy made news this summer heart rate monitors during group KardiaMobile, an electrocardiogram when it acquired GreatCall, a workouts. Weight Watchers is (EKG) monitoring system, eliminates the need for multiple sojourns to the doctor’s o ce by o ering a special ngertip pad that records the EKG and transmits the data via Bluetooth to your mobile device. today’s health and wellness consumer can shop for health tech just about

anywhere. Smart cameras enable another sort of diagnosis tool. After you receive its special kit, Healthy.io, analyzes your urine for conditions like infection or pregnancy. SkinVision o ers regular skin cancer screenings by smartphone. At home genetic testing has also become more refined. Color looks at your propensity for inherited diseases like breast and lung cancer through in home genetic testing. Finally, on the rehabilitation and retraining side, apps like Brainpower provide mental workouts for students Images Roberts/Getty Caiaimage/Andy

26 NOVEMBERDECEMBER 2018 IT IS INNOVATION

i3_1118_24-27_FEATURE_Digital_Health_Layout2.indd 26 10/24/18 11:41 AM with ADHD or autism. Apps for everything from depression to stress management are hoping to replace a new drug therapies. generation of THE PHYSICIAN’S “hearables” are DILEMMA Medical professionals are feel- adding functionality ing the disruption, but ethical, legal beyond audible and insurance reasons are con- straining technology from an inno- improvments. vative takeover. While orthodontists make a living on expensive (not to mention painful) metal braces, companies like Invisalign have raised excitement by making a faster, more comfortable alternative that depends announced a hearing aid that on frequent digital scans of the teeth tracks physical activity, cognitive (not making molds) and frequent health, and features Amazon Alexa modifications of a plastic computer- connectivity. Valencell also part- printed invisible brace. nered with Sonion to make biomet- Further, audiologists have learned to ric sensing universal in hearables di erentiate their services from over- and hearing health devices. the-counter hearing devices and Neutrogena’s SkinScanner is a Personal Sound Ampli cation Products dermatologist-in-a-box, thanks to (PSAPs). Those who want to amplify the handheld device which has 12 sound and tune it to their own levels high-powered LED lights, a 30 times can choose from o erings from dozens magnification lens and highly accu- of companies including Audicus and rate sensors to measure above and Resound. A new generation of “hear- below the skin’s surface. It captures ables” are adding functionality beyond the size and appearance of pores, the audible improvements. Ryan Kaudel of size and depth of fine lines and wrin- Valencell, maker of a hearable chip kles and the skin’s moisture, and technology, points to Starkey, a large then gives you an analysis and pre- hearing aid brand, that recently scriptive advice.

AI: The New Key to the Kingdom

While consumers are experimenting with rate, an electrocardiogram reader, a gyroscope healthcare devices, they are generating an un- for fall detection and Apple o ers an open API for precedented amount of data that can be used medical apps. These features make it an impor- to teach computers to make correct medical tant collector of mega amounts of health data. diagnosis, tailor personalized medicine and Drug companies, traditionally high-tech learn how to treat illness. laggards, are moving forward to create per- Google’s Deep Mind, an AI engine, is al- sonalized health solutions and new pharma- ready predicting certain eye diseases with the ceuticals. CB Insights says top pharmaceu- same accuracy as a physician. The FDA-ap- tical companies including Novartis, Sanoi, proved software, Viz.ai, analyzes brain scans GlaxoSmithKline, Amgen and Merck have all and notiies healthcare providers of potential announced partnerships in recent months strokes in patients based on what it learned with AI startups aiming to discover new drug from analyzing millions of scans. candidates for a range of diseases including Apple’s iWatch 4 features an alert for low heart oncology and cardiology.

CTA.tech/i3 NOVEMBERDECEMBER 2018 27

i3_1118_24-27_FEATURE_Digital_Health_Layout2.indd 27 10/24/18 11:41 AM JANUARY 811, 2019 | LAS VEGAS, NV

CES 2019 Brings Tech Advances to CES® 2019 is the global stage for innovation – the largest and most in uential Vegas technology event on the planet. Today, every company is a tech company and CES is where tech business gets done. It’s the proving ground for transformative tech including 5G connectivity, articial intelligence, augmented and virtual reality, smart cities, sports and robotics. Everyone fom global companies to tech startups come to launch products, build brands and partner to solve soci- etal challenges. CES 2019 will feature 4,500 exhibiting companies – including more than 1,200 startups from over 40 countries – showcasing tech to improve the world. Taking place January 811 in Las Vegas, NV, CES 2019 is fast approaching. Take a sneak peek on how to best navigate the show and get a glimpse of what you’ll see this January.

C SPACE C Space at CES brings together the world’s innovators, marketers and creatives in one venue. Discover disruptive trends and how they will change the future of brand marketing and entertainment. Experience new technologies that change how consumers behave and learn from leaders in content creation, major KEYNOTES AT CES 2019 studios and top advertising IBM Chairman, President and CEO, nesses operate and people work for new computing technolo- irms at keynotes and panels. Ginni Rometty, will headline the and live. Technologies such as AI gies — from solving some of the C Space features confer- CES 2019 keynote stage, opening and quantum computing, when world’s toughest challenges to ences, keynotes and exhibits the show on Tuesday, January 9 built on a foundation of trust the future of gaming, entertain- from companies like Google, at 8:30 AM in the Venetian’s Pala- and transparency, will drastically ment and virtual reality with the Hulu, NBCU, NeuLion, Nielsen, zzo Ballroom. Rometty will share a change business and society for potential to redeine modern life. Sirius XM, Snap, TMobile and unique outlook for how technol- the better. The keynote program will also Vevo. C Space is the place to ogy — built on a foundation of AMD President and CEO Dr. include LG President and Chief share content, creativity and responsibility and trust — will Lisa Su’s keynote will provide a Technology Oicer Dr. I.P. Park technology with other like- signiicantly improve how busi- view into the diverse applications and Verizon CEO Hans Vestberg. minded professionals.

28 NOVEMBERDECEMBER 2018 IT IS INNOVATION

i3_1118_28-30_FEATURE_CES_Layout.indd 28 10/24/18 11:50 AM CES Unveiled New York kicks o the CES season with a networking celebration featuring emerging tech trends. This exclusive event helps companies to build relationships and allows media to experience some of the leading technologies that will be at CES 2019. CES UNVEILED LAS VEGAS CES Unveiled Las Vegas is the oicial media event of CES, welcoming press and industry analysts from more than 150 countries, before the oicial start of CES. The venue allows innovative startups and established global brands to break news early to journalists. CES This annual press event draws more than 1,500 inluential media from MARKETPLACES around the world and features the CES 2019 Best of Innovation Awards With 11 oicial venues, CES Honorees and tabletop displays from more than 180 local and global spans more than 2.5 million tech companies. CES Unveiled Las Vegas takes place on January 6, in the net square feet of exhibit Mandalay Bay, Shorelines Exhibit Hall. space, features 24 product categories and more than 20 Marketplaces. CES Mar- ketplaces are exhibit areas that group new technology CES INNOVATION AWARDS The annual CES Innovation Awards program celebrates outstanding product design and markets and feature up-and- engineering in brand-new consumer technology products. coming products, services The Innovation Awards program recognizes two levels of honorees among 28 award categories: and companies. Check out Honoree: A product or technology that scores above the threshold set for a speciic category. the following Marketplaces at • Best of Innovation: Given to only the highest-rated product or technology in each CES 2019: • category — or to multiple, in the event of a tie. • 3D Printing • Accessibility For more information, visit CES.tech/Innovations. • AI & Robotics • AR/VR & Gaming • Baby Tech • Design & Source • Digital Money • Drones Enterprise EUREKA PARK • The Eureka Park Marketplace at CES 2019 will be the Eureka Park™ • largest startup event on the planet, with more than Family & Kids Technology • 1,200 startups from more than 40 countries showing Fitness • o the latest innovations in tech. Innovators come Health & Wellness • here to make connections and create new opportuni- iProducts • ties for success. Meanwhile, investors also come to Resilience • Eureka Park searching for the next unicorn. And global Self-Driving Technology • media come to look for their next story. Corporations Sleep Technology • come to look for partnerships and acquisitions. Come Smart Cities • to the Eureka Park Marketplace located in the Sands Smart Home • Expo to meet the world’s newest innovators. • Sports Zone • Tourism • Wearables

VENUES AT CES 2019 Venues are grouped into three geographical areas: Tech East, Tech West and Tech South. Tech East spans the Las Vegas Convention and World Trade Center (LVCC), Westgate Las Vegas and Renaissance Las Vegas. Tech West includes the Sands Expo, The Venetian, The Palazzo, Wynn Las Vegas and Encore at Wynn. Tech South stretches across ARIA, Park MGM/Park Theater and Vdara.

CTA.tech/i3 NOVEMBERDECEMBER 2018 29

i3_1118_28-30_FEATURE_CES_Layout.indd 29 10/24/18 12:52 PM JANUARY 811, 2019 | LAS VEGAS, NV

EXTREME TECH CHALLENGE: FROM CES TO THE VIRGIN

ISLANDS up an gives it another go,” said XTC’s An Island Getaway for Entrepreneurs COO, Sabine Schindlbauer. Three companies from the CES event are chosen for the workcation of a lifetime tweet from tech billionaire population, the three businesses spend in Necker Island. XTC hopes all partici- Richard Branson best describes their time on Necker Island pitching their pants use the opportunity to network the Extreme Tech Challenge: company to Branson and others. When with the many Fortune 500 businesses “We are looking for people and ideas that they’re not going through intensive Q&A within the circle, meet mentors and feel can literally change the world.” sessions and meeting major tech inuenc- more empowered through the experience. It may seem like a lofty goal, but as one ers, they can usually nd time for some “Applicants get unprecedented access of the largest and most prestigious tech snorkeling and windsurng. to incredibly accomplished serial entre- competitions, XTC prides itself on giving But before the island getaway, the com- preneurs, investors, mentors, advisors the world’s most innovative businesses a petitors must go through a rigorous pro- and innovators that can help them scale platform to pitch their ideas to investors, cess where the many applicants are much quicker and with much less fric- businessmen and Branson himself. For narrowed down to 25 companies, then 10. tion,” Schindlbauer said. “The Extreme Those 10 semi-nalists go to CES, where Tech Challenge certainly has all compo- they pitch their companies to a lineup of nents of a regular tech competition, but inuential judges, including CTA on top of that we create unique experi- President and CEO Gary Shapiro, ences and thereby encourage our appli- Samsung Electronics President Young cants think outside of box as well.” Sohn and Plug and Play Tech Center Previous winners and XTC nalists Founder Scott Robinson. have shown that that competitors are The competing companies – whose worthy of the spotlight, with products work ranges from healthcare to drones and ideas that could revolutionize what and 3D printing – come from all over the we know about technology. In 2018, world to compete. These companies also Vantage Robotics won XTC with the Snap this year’s competition, roughly 600 com- exhibit their work in CES’ startup area, drone, a portable, a¥ordable and durable panies entered the “Ultimate Startup Eureka Park™. drone camera. ReDeTec, another 2017 Adventure,” but only three get to go to the XTC is designed to help entrepreneurs nalist, showed the Protocycler, the nals on Necker Island, Richard who are “natural winners.” In other words, “rst and only system for recycling waste Branson’s 74-acre private island. “Someone who is not afraid to try things plastic into new lament.” For more Usually known for its picture-perfect out and also someone who is not afraid to information, visit: www.extremetech- beaches and sustainable amingo fail and if it happens (which it will), gets challenge.com.

30 NOVEMBERDECEMBER 2018 IT IS INNOVATION

i3_1118_28-30_FEATURE_CES_Layout.indd 30 10/24/18 11:50 AM Te mer chnolog Cons u y

John Briesch pg 34 / Dr. John Ciofﬁ pg 35 / Robert Cole pg 36 / Richard Doherty pg 37 / Team: Kathy Gornik, Jim Thiel pg 38 / Peter Lesser pg 39 / Michael Romagnolo pg 40 / Team: Skype Team pgs 41 42 / Edgar Villchur pg 43

CTA.tech/i3 NOVEMBERDECEMBER 2018 31

i3_1118_31-43_FEATURE_HOF_Layout.indd 31 10/24/18 1:32 PM INNOVATORS TECHNOLOGISTS Edgar Villchur Acoustic Research Dr. John Cio Father of DSL/Ininity Group

FOUNDERS EXECUTIVES John Briesch Sony

DISTRIBUTORS RETAILERS Robert Cole World Wide Stereo Mike Romagnolo DOW Stereo/Video

JOURNALIST Rick Doherty Envisioneering Group

INDUSTRY HONORING Te ADVANCEMENT Peter Lesser mer chnolog X10 USA EXCELLENCE Cons u y The CT Hall of Fame honors the innovators that have made the consumer THE 2018 CLASS ALSO INCLUDES technology industry the vibrant marketplace that it is today. Determination, resolve, TWO TEAMS creativity and vision are among the attributes that the inductees to the CT Hall WHO COMBINED of Fame possess. The program serves as a bridge from the past to the present, EFFORTS TO BETTER THE INDUSTRY: enabling younger generations to build on the foundation laid by their colleagues Last year at the Rainbow before them. Room, the 2017 CT Hall These leaders create, promote, merchandise and advance the products, of Fame dinner honored TEAM services and technologies that connect, inform and entertain consumers. 12 individuals whose Kathy Gornik, work enhanced the lives Created in 2000, the CT Hall of Fame will increase to 261 members with the 14 of consumers. Jim Thiel new honorees inducted at this annual dinner. We honor these inluential leaders Thiel Audio who have contributed their talents to help to grow the $377 billion consumer technology (CT) industry. “The CT Hall of Fame honors the exceptional visionaries in our industry,” said TEAM Gary Shapiro, president and CEO, CTA. “The new class of inductees includes Niklas Zennström, engineers and inventors, business executives, retailers and a journalist who drove Janus Friis, Jaan Tal- new solutions and technologies that made a di erence in our lives.” linn, Priit Kasesalu, Ahti Heinla THE JUDGING PROCESS: The class was selected on February 27, 2018, in New York City by media Skype and industry professionals, who met to discuss the nominations submitted by manufacturers, retailers and journalists. The judges used the democratic process of the most votes to select the new class. We thank the following judges for volunteering their time and expertise:

2018 CT HALL OF FAME JUDGES GO ONLINE: Nominate an indus- RICK ALBUCK, 2020 COMPANIES CHERYL GOODMAN, SONY ELECTRONICS INC. try leader for the CT MELISSA ANDRESKO, LUTRON ELECTRONICS CO. INC. SUZANNE KANTRA, TECHLICIOUS Hall of Fame that you TOM CAMPBELL, VIDEO AND AUDIO CENTER NANCY KLOSEK, DEALERSCOPE believe has made a MARGE COSTELLO, COSTELLO COMMUNICATIONS GREG TARR, HD GURU.COM signi icant impact on BOB FIELDS, BEACON TECHNOLOGIES GROUP STEVE TIFFEN, THE TIFFEN COMPANY the industry by illing PAUL GLUCKMAN, CE DAILY JOHN TAYLOR, LG ELECTRONICS USA out the form at CTA. PAM GOLDEN, GLA COMMUNICATIONS STEWART WOLPIN, TECHNOLOGY WRITERHISTORIAN tech/hallo ame.

32 NOVEMBERDECEMBER 2018 IT IS INNOVATION

i3_1118_31-43_FEATURE_HOF_Layout.indd 32 10/24/18 1:32 PM Distinguished Members of the CT Hall of Fame

2018 2014 2001 Briesch, John Conn, C.W. Berliner, Emile Cioi, Dr. John Gerzberg, Dr. Levy Kraft, Richard Roach, John Fleming, Sir John Cole, Robert Ivey, Loyd McCann, Frank Team: Dr. Donald Ambrose Doherty, Rick Lee, Dr. David Mondry, David & Eugene Bitzer, Gene Slottow, Gernsback, Hugo Lesser, Peter Maloney, James Philips, Frederik Robert Willson Jensen, Peter Laurits Romagnolo, Mike “Cowboy” Sotolo, Al Team: Andrew Grove, Muntz, Earl Villchur, Edgar McCarthy, Gerald Upson, Cynthia Gordon Moore Poniato, Alexander M. Team: Mossberg, Walter Weber, Dr. Larry Westinghouse, George Niklas Zennström, Westergren, Tim Team: Dr. Ivan Getting, 2005 Janus Friis, Jaan Tallinn, Team: George Antheil, Dr. Bradford Parkinson 2000 Priit Kasesalu, Ahti Hedy Lamarr Crane, Ken Heinla Team: Victor & Janie Tsao 2009 Donahue, Joseph Abrams, Benjamin Team: Kathy Gornik, Elias, Harry Adler, Robert Jim Thiel Cohen, Maurice, Fezell, George Armstrong, Edwin 2013 Norman & Philip Gold, Saul Baird, John Logie Basu, Dr. Samar Flaherty, Dr. Joseph Levis, Art Balderston, William 2017 Barton, Jim Jacobs, Dr. Irwin Luskin, Jack Bardeen, John Jobs, Steve Matsushita, Masaharu Bell, Alexander Graham Grand, Marcia Burrell, Gary Neretin, Aaron Winegard, John Blay, Andre Harris, Arlene Greenberg, Manning Shalam, John Team: William Hewlett, Brattain, Walter Issa, Darrell Ho, Dr. Marcian Stinson, Walt David Packard Braun, Karl Ferdinand Kamen, Dean Kao, Dr. Min Terk, Neil Bushnell, Nolan Kurzweil, Ray Katayama, Mikio Wiley, Richard Crosley Jr., Powel Lazaridis, Mike Machida, Katsuhiko Team: Karl Hassell, 2004 DeForest, Lee Mohr, Mitch Omidyar, Pierre Ralph Mathews Blumlein, Alan Dower Dolby, Ray Tandy, Charles Ramsay, Michael Brief, Henry DuMont, Allen Team: Dr. Leonardo Tang, Dr. Ching Gerson, Robert E. Edison, Thomas Chiariglione, Tweten, Jim 2008 Kai, Ken Eilers, Carl Dr. Hiroshi Yasuda Tweten, Len Abt, Jewel & David Kalov, Jerry Farnsworth, Philo T. Team: Frank McIntosh, Van Slyke, Steven Clayton, Joe Klipsch, Paul Fessenden, Reginald Gordon Gow Whitman, Meg Dunlavey, Dean Ohga, Norio Aubrey Fantel, Hans Paik, Dr. Woo Fisher, Avery 2016 2012 Hartenstein, Eddy Wozniak, Steven Freimann, Frank Briskman, Robert Kutaragi, Ken Team: Richard Frenkiel, Galvin, Paul Cooper, Sidney Boyle, William Lieberfarb, Warren Joel Engel Ginsberg, Charles Haartsen, Dr. Jaap Citta, Richard Sennheiser, Dr. Fritz Goldmark, Peter Lorsch, David B. Dybdahl, Bjorn Sharp, Richard Harman, Dr. Sidney Pagano, Chuck Engelbart, Douglas Team: Martin Cooper, 2003 Hertz, Heinrich Smith, Steve Ergen, Charles Donald Linder Borchardt, Herbert Ibuka, Masaru Spira, Joel Finley, Larry Feldman, Leonard Johnson, Eldridge Tien, Nat Gregg, Fansy & Henry Immink, Kilby, Jack Yamauchi, Hiroshi Koo, I. H. 2007 Kees A. Schouhammer Kloss, Henry Team: Norm Hunt, Lee, Byung-chull Allen, Paul Kasuga, William Koss Sr., John Ed Tuck, Don Rea Smith, George Bose, Dr. Amar Kent, Atwater Lachenbruch, David Team: Dr. Peter Bing- Crutchield, William Steinberg, Jules Lansing, James B. ham, Dr. Jim Carnes, Dr. Day, J. Edward Takayanagi, Kenjiro Marantz, Saul Curt Crawford, Dr. Jae 2011 McDonald, John Tushinsky, Joseph Marconi, Guglielmo Lim, Jerry Pearlman, Baer, Ralph Sasson, Steven Wurtzel, Alan Matsushita, Konosuke Donald Rumsfeld Bloomberg, Sandy Schulze, Richard McDonald Jr., Cmdr. Harari, Dr. Eli Weinberg, Art 2002 Eugene 2015 Hubbard, Stanley S. Team: Dr. Karlheinz Morita, Akio Masuoka, Dr. Fujio Brandenburg, Alexanderson, Ernst F.W. Noyce, Robert Borchardt, Robert Metcalfe, Dr. Robert Dr. Heinz Gerhäuser, Dr. Appel, Bernard Poulsen, Valdemar Campbell, Tom Runco, Sam Dieter Seitzer Baker, W.G.B. Roberts, Ed Feldstein, George Shannon, Dr. Claude Boss, William E. Sarno, David Hayes, Vic Viterbi, Dr. Andrew 2006 Ekstract, Richard Scott, Hermon Hosmer Lee, Noel Team: Ivan Berger, Fisher, Walter Shiraishi, Yuma Mitchell, Bernie Lancelot Braithwaite Doyle, Jack Gates, Raymond Shockley, William Schwartz, Wilfred Galvin, Robert Lear, William Powell Siragusa Sr., Ross Toole, Dr. Floyd Heilmeier, George Polk, Sol Takano, Shizuo 2010 Holonyak Jr., Dr. Nicholas Sauter, Jack K. Tesla, Nikola Christopher, Dr. Lauren Ladd, Howard Wayman, Jack Friedman, Rachelle & Joe Richard, Alfred J. Zworykin, Vladimir

CTA.tech/i3 NOVEMBERDECEMBER 2018 33

i3_1118_31-43_FEATURE_HOF_Layout.indd 33 10/24/18 1:32 PM Te mer chnolog Cons u y

SONY EXECUTIVE (1949 – )

Te iversiication is often transformed Sony into a total the key to a company’s umer chnologdirect sales operation, eliminating D long-term success its distributors. and John Briesch Cons was the key In April 1989,y Briesch was to Sony’s. In the early 1980s, as promoted to president of Sony’s Sony’s vice president of audio Consumer Products Group. marketing, Briesch headed Briesch established Sony Audio as a leader in Under his guidance, Sony’s annual the company’s full expansion portable audio, component (Hi-Fi) audio and consumer electronics sales into audio components and revenue surpassed $6 billion spearheaded the industry’s car stereo. – ive times its previous totals – drive to successfully bring the and Sony became the leading compact disc to market. market shareholder in the U.S. Born in Chicago to John and consumer technology industry Genevieve, Briesch earned with leading shares in portable a B.S. from Northern Illinois would require a total change in Sony building the irst U.S. CD audio, digital imaging, home audio University in 1971. After two years consumer habits and a redesign manufacturing plant in Indiana. products and premium television in the Army, Briesch looked for of the music industry. Vinyl To ensure fast consumer products. Briesch also led Sony’s a marketing/sales position in records and compact cassette acceptance for CD, Briesch introduction of DVD, satellite a dynamic, growth-oriented tapes were cheap to produce, created and co-chaired the receivers, HDTVs and telephones. industry. had a high replacement demand Compact Disc Industry Group, In July 1998, Briesch was tapped Briesch joined Sony in 1975 and retailers had established working with record labels and to lead Sony’s Business Systems as a Midwest sales rep, rising to packaging/racking displays hardware competitors to market Group, and led the company’s national Hi-Fi sales manager in for LPs. Plus, there were no CD the new technology. During e orts to market directly to end 1981. In 1982, he was promoted to manufacturing facilities in the these CD promotions and selling users via a co-branded credit card vice president of audio marketing U.S. From 1982 through 1984, activities, Briesch also earned in partnership with Citibank: the and created the marketing Briesch and his team visited a professional master’s degree Sony Card, which would attract and distribution strategy for almost every music company from Harvard in 1984. more than 900,000 customers Sony Audio products, which in America, along with more Frustrated by the lack of audio and $2 billion in annual revenue. had been distributed and sold receptive artists and engineers, options for children at Toys R Us, Briesch also chaired Sony’s irst by Superscope. Using Sony’s to introduce not only CD Briesch, now a father of young e-commerce e ort in the U.S., Walkman and the pending CD technology, but to explain the children with his wife, Cindy, SonyStyle.com, which launched in as foundations, Briesch soon business model and the potential led the U.S. e ort to design November 2000. established Sony Audio as a leader for future format expansion such and launch the My First Sony After retiring from Sony in in portable audio, component (Hi- as CD¥ROM and video. He signed products in fall of 1986. January 2010, Briesch became Fi) audio and car stereo. licenses with a variety of labels In 1987, Briesch became an independent consumer Briesch understood to produce and sell limited CD president of Sony’s Consumer electronics, credit card and loyalty establishing a new music format titles in the U.S., which lead to Sales Company, and quickly marketing consultant.

34 NOVEMBERDECEMBER 2018 IT IS INNOVATION

i3_1118_31-43_FEATURE_HOF_Layout.indd 34 10/24/18 1:32 PM Te mer chnolog Cons u y

“FATHER OF DSL” (1956 – )

Te arly online internet Amati’s DMT-enabled Prelude access was slow and mer chnologADSL modem could transmit E ine icient through u faster than 6 Mbps, four times the plain-old telephone Cons lines. That speeds of othery proposed designs is, until Digital Subscriber Line, from AT&T/Lucent, Bellcore and or DSL, the irst broadband data- Broadcom, and was unanimously transmission technology. Forms Forms of DSL now connect nearly 75 percent agreed to by more than 200 of DSL now connect nearly 75 voters. On March 10, 1993, Cio i’s percent of global internet homes of global internet homes at faster per DSL technology was o icially at faster per customer speeds customer speeds than cable broadband, declared the U.S. standard by the than cable broadband, thanks American National Standards to Dr. John Cio i, founder of DSL thanks to Dr. John Cioffi, founder of DSL Institute (ANSI), followed by the modem maker ASSIA and known European Telecommunications as the “father of DSL.” modem maker ASSIA and known as the “father Standards Institute (ETSI) a few Cio i was born on November of DSL.” months later, and International 7, 1956, in Park Forest, south of Telecommunication Union (ITU) Chicago. Cio i’s father, John, two years later. worked in insurance, while his (bps) early voice-band modems to which was limited by the lack In 1995, Amati successfully mother, Lorraine, was a stay-at- the then adaptive echo-cancelled of AI. Cio i’s proposed smarter went public and was bought by home mom. Cio i got a taste full-duplex modems at speeds system learned each phone line’s Texas Instruments in 1997. Cio i, of his future on a family trip to of 9600 bps and later higher. speciic disturbances, and then who had returned to Stanford, 1964’s New York World’s Fair, He also helped Bell Labs solve applied machine learning to and a new group of Ph.D. where a demonstration of AT&T’s echo-cancelation problems for adjust the transmission format. students, developed Dynamic videophone fascinated him. the then-contemplated Integrated Cio i and Ph.D. candidate Peter Spectrum Management (DSM) After graduating in 1978 as the Services Digital Network (ISDN) – Chow’s proposed method was and “vectored DSLs,” which valedictorian of the University the beginnings of DSL. called Discrete Multi-Tone (DMT) increased DSL speeds to 150 of Illinois’ engineering school, In 1984, Cio i joined IBM’s modulation and the speciic Mbps. These vectored methods Bell Labs hired him and paid for San Jose lab to work to increase machine-learning algorithm used form the basis for Massive MIMO his graduate work at Stanford hard drive bit density using AI “bit-swapping.” DMT pushed LTE and Multi-User MIMO (MU- University. Cio i spent six years algorithms. In early 1986, Stanford data speeds to 1.5 megabits MIMO) Wi-Fi systems. shuttling cross country between promoted Cio i to an electrical per second (Mbps) – “good From 2003 to 2004, Cio i, his Bell Labs’ Holmdel, NJ, facilities and engineering assistant professor, enough” for video. In 1991, Cio i wife Assia and former students Stanford, where he earned both where he continued working on separately co-founded Amati founded ASSIA (Adaptive- his master’s and Ph.D. in electrical DSL. Communications. Spectrum-and-SIgnal-Alignment), engineering. Cio i worked at both Cio i proposed a signiicant In January 1993, the DSL which serves 40 telcos globally institutions to help quadruple the architecture change: they “Olympics” was held in Miami with more than 150 million DSL/ speed of 2400 bits per second pursed a “single-carrier” method, to determine a DSL standard. wireless subscribers.

CTA.tech/i3 NOVEMBERDECEMBER 2018 35

i3_1118_31-43_FEATURE_HOF_Layout.indd 35 10/24/18 1:32 PM Te mer chnolog Cons u y

FOUNDER, WORLDWIDE STEREO (1948 – )

Te uccessful careers are often peppered with umer chnolog S radical shifts, and good, sister.” Shey gave him a rap that is particularly Cons true with upside the head and told him the Bob Cole. He put a career in Pope did good. “You need to do clinical psychology on hold Rather than just sell boxes, Cole strives well, Robert.” He replied, “Why to found World Wide Stereo, can’t I do well by doing good?” Philadelphia’s most successful to do good via passionate customer service, That got another rap, but the independent AV retailer, by philosophy stuck. Rather than just following a simple philosophy: improving people’s lives and inspiring sell boxes, Cole strives to do good “Do well by doing good.” employee loyalty. via passionate customer service, Born November 12, 1948, in improving people’s lives and Long Branch, NJ, Cole developed inspiring employee loyalty. WWS a strong work ethic at an early experiences low sta turnover, has age. At 13, he cleaned houses, amassed a loyal customer base, worked in a hardware store and and is active in both local and lipped burgers at McDonald’s. By Partial Hospitalization Program of Montgomeryville, PA. He national charities. 16, he was a union laborer doing – which became the national borrowed $2,000 from a friend Cole opened a second World carpentry, ironwork, masonry and model for the National Institute of to show some solvency and to Wide Stereo location in Ardmore, exercising horses at Monmouth Mental Health – rising to Clinical convince a bank to loan him PA, in 2000 and then opened a Park, learning essential business Director. an additional $16,000 without large distribution center in 2016. lessons along the way. In 1978, funding for his clinical collateral. Withstanding recessions and He left home at 17 and worked work ended and, with it, his ability First to step up were car competition from big box and his way to a BA in psychology to work directly with patients. stereo manufacturers, the only local rivals over four decades, from LaSalle College. While Unhappy, he left one month suppliers willing to extend a World Wide Stereo remains a attending college, he was a after marrying the love of his life, line of credit. Well before stereo Philadelphia institution, with 2017 house master at an orphanage Karen. Using his love of music TV, he wired his demo TVs to a sales reaching $56 million and and worked at an experimental and gadgets as a compass, Cole stereo system creating a whole trending to $70 million in 2018. psych facility, Spruce House, decided to open a stereo store new category and gaining In 2013, World Wide Stereo which was to open many doors despite a lack of experience attention. was named by CEPro magazine for him in psychology. He earned and funding. Cole worked for A memorable moment as a “Top Ten Integrator” and a master’s degree in clinical the retail franchisor, World Wide in Catholic school provided 29th overall in the Top 100 list of psychology from Temple in 1974. Stereo, to resuscitate failing him with his retail philosophy. the largest custom electronics Concurrently, Cole worked at stores. When the franchisor went Cole was in sixth grade when integrators in the U.S. He is also the Albert Einstein Community out of business, Cole opened his his teacher, Sister Mary Dora, the PROsource 2018 dealer of the Mental Health Center in own 1,500-square-foot store in asked him, “How are you doing year. Clearly, Bob Cole has done Philadelphia where he created its the Northern Philadelphia suburb Robert?” He replied, “I’m doing quite well by doing good.

36 NOVEMBERDECEMBER 2018 IT IS INNOVATION

i3_1118_31-43_FEATURE_HOF_Layout.indd 36 10/24/18 1:32 PM Te mer chnolog Cons u y

ENGINEER/JOURNALIST/ANALYST (1952 – 2016)

t is rare for a journalist Run, a larger-than-life cross- to both seek quotes and country automobile race. For I be sought for quotes. the competition, he planned, But Richard “Rick” Doherty – a designed, engineered and built a familiar sight in the front row dream machine decked out with at consumer electronics press everything an electro-physicist conferences armed with a could devise to drive faster, safer camcorder perched atop a Te and longer without stopping. In monopod – was more than 1981, Doherty organized – and just a journalist, acting also as umer chnologwon – his own cross-country race, a knowledgeable and quoted the U.S. Express,y with all entry consumer technology Cons and fees, less expenses, donated to engineering consultant and local charities. That same year analyst. [Doherty] was more than just a journalist, he married his wife, Carolyn. The Born in Jamaica, Queens, NY, couple honeymooned at CES, and on January 22, 1952, the family acting also as a knowledgeable and quoted both their daughters, Heather and moved to Levittown to take Sabrina, attended their £irst trade advantage of better schools. consumer technology and engineering shows while still in diapers. Doherty’s parents provided consultant and analyst. A life-long space enthusiast, in him with both knowledge and 1986, Doherty both witnessed and inspiration. His mother Gertrude assisted in the investigation of the was a legal secretary for a Space Shuttle Challenger disaster. leading patent attorney, while In 2003, Doherty was nominated his father Norman worked as a by longtime friend Steve Wozniak machinist and inventor. Father for a seat on the Presidential and son would later share many Medal of Technology Award patents, working together in The prototype received several Group, hiring diverse experts Selection Committee during both his father’s Doherty Technology awards for innovative features, from varied specialties to consult the George W. Bush and Barack Corporation lab, where he taught including one of the £irst rearview on engineering projects and Obama administrations. the youngster that the seemingly cameras with an in-dash display conduct technology market Doherty was a member of impossible doesn’t always have installed in a passenger car. He research. numerous industry societies to be. helped £inance his education Doherty spent 11 years at EE and sat on the board of many Young Doherty worked odd via Mad Rick’s Electronic Repair, Times, covering every major standards and technical working jobs to buy equipment and £ixing or installing student technology development of the groups including various Institute publications, including NASA electronics. late 1980s and early 1990s, and of Electrical and Electronics operations manuals. Throughout After graduation in 1970, continued to write after ending Engineers societies, numerous his youth, he participated Doherty spent two years as his fulltime job in 1994. He also Society of Motion Picture and in science fairs, exploring an engineer at Data General, grew The Envisioneering Group, Television Engineers digital TV topics such as electroplating, moved to Lourdes Industries building his reputation as both a and HDTV standards committees anodization, lasers and as chief engineer, then started knowledgeable tech reporter as and was on the CES Advisory holograms. freelancing for EE Times as a well as an insightful source for Committee. His vast £ield of While attending Pratt Institute tech reporter in 1981. In 1983, he tech reporters. knowledge combined with his in New York, Doherty ran joined the publication full-time Doherty also indulged his quick wit made him a favorite go- communications for the Pratt as a senior tech writer, and playful side; in 1975 and 1979 he to expert when an independent Urban Vehicle Design Team. founded The Envisioneering competed in the Cannonball opinion was needed.

CTA.tech/i3 NOVEMBERDECEMBER 2018 37

i3_1118_31-43_FEATURE_HOF_Layout.indd 37 10/24/18 1:32 PM Te mer chnolog Cons u y

CO-FOUNDERS, THIEL AUDIO

or nearly 40 years, a small about customers. Gornik often told company in Lexington, new employees about the three F Kentucky, churned tenets of Thiel Audio: “Satisfy the out speakers designed to give customer, satisfy the customer and even the biggest audiophile satisfy the customer.” goosebumps after hearing While Gornik led the them. Thanks to their high- business side, Thiel designed quality speakers, Thiel Audio Te all his speakers and their parts, – the revolutionary business co- assembling each one in Lexington. founded by Jim Thiel and Kathy umer chnologIn his designs, Thiel committed Gornik – became the yardstick all to the conceptsy of phase- and other speakers were Cons measured time-coherence in his pursuit of against. Thiel’s success has made loudspeaker accuracy, leading to the two founders some of the (1947 – ) (1947 – 2009 ) some unique technical features. most ubiquitous and inluential Ultimately, he created the leaders in the home audio and Coherent Source design concept, consumer technology industries. Between Gornik’s marketing philosophy which gave his company’s Thiel Audio started in and Thiel’s engineering prowess, Thiel Audio speakers a sonic edge along with 1976, when Jim Thiel started their iconic alpha designations. building custom electronic became a bonafide success. Thiel’s a ordable high-end components for studio and speakers became legendary stage applications. Born during his lifetime, winning nearly on September 29, 1947, in second-generation Slovenians, Between Gornik’s marketing every award extant, including six Covington, KY, the young Thiel Gornik quickly picked up on the philosophy and Thiel’s Audio/Video International Product always loved music, taking challenges and strategies behind engineering prowess, Thiel Audio of the Year Awards. Meanwhile, piano lessons and playing in a running a business while working became a bonaide success. Inc. Magazine named Gornik band during high school. Thiel at her family’s high-end men’s After several years of trial and the Kentucky/Southern Indiana also displayed a keen interest in clothing shop. Her strong work error and a focus on engineering, Region “Entrepreneur of the Year” science, especially electronics, ethic served her well and she in 1980 the company’s loor- in 1993. In 1994, she helped create creating sound reproduction graduated from the University of standing Thiel CS3 brought and served as the irst chairperson gear and attempting to build Dayton with a B.S. in education the ledgling company high of the High-Performance Audio lying machines during his early in 1969. sales, a genuine place in the subdivision of CTA, from 1995¥97 school years. After college, he Thiel Audio initially operated industry and, most importantly, she served as chairperson of CTA’s realized there was still room for on a shoestring budget, inanced proitability. On the lead-up to Audio Division, in 1998¥2006 she improvement in loudspeakers mostly by friends and family and their success, Gornik turned served on CTA’s executive board, and started Thiel Audio despite a equipped with an array of used down most dealer applications, in 2003¥04 as chair, in 2007 was lack of professional experience. tools. To save money during waiting to do business with chair of its Small Business Council, As he developed his business, their irst trip to CES in Chicago only the best in the market – a and from 2010¥12 served on its Thiel recruited his younger in 1977, Thiel and Gornik packed strategy which allowed the Business Industry Leaders. brother Tom, an expert wood their own food, for example. Over company to double their annual After a ight with cancer, Jim worker, and a few college friends, time, Gornik helped jumpstart revenues each year for ive years Thiel passed away in 2009. The including Kathy Gornik, who went the company, driving around running. Under Gornik’s iscal company was bought by a private on to be Thiel Audio’s president mid-Atlantic states selling leadership, Thiel was proitable equity irm in 2012 and Gornik and essential business leader. loudspeakers to independent each year except 1991. retired. Since then, she has served As the fourth of nine children of audio dealers. But above all, Thiel Audio cared on various education boards.

38 NOVEMBERDECEMBER 2018 IT IS INNOVATION

i3_1118_31-43_FEATURE_HOF_Layout.indd 38 10/24/18 1:32 PM Te mer chnolog Cons u y

FOUNDER, X-10 USA (1935 – )

he smart home is now X10 proved popular with tech a familiar concept. But early adopters and engineers. T the seeds for today’s When Fry’s Electronics opened its familiarity with the smart home Te irst store in Sunnyvale, CA, X10 were planted by the introduction played a signiicant part of the of X10 home automation umer chnologfranchise’s success. In 1980, X10 technology in 1978, and grown began producingy products for by X10 USA, founded Cons by Peter Leviton and, in 1984, GE introduced Lesser. its X10 Homeminder, a set-top box Lesser was born in 1935 in The seeds for today’s and remote that allowed control New York City. His facility with of the X10 system from a TV mathematics led him to enter familiarity with the smart home and away-from-home control via the pre-engineering program at phone lines. Several PC interface Queens College of the City of were planted by the introduction control modules followed as well. In New York in 1951. Lesser earned a of X-10 home automation 1984, Lesser and his Pico partners B.S. from Queens College and a bought out BSR’s interest, and B.S. in electrical engineering from technology in 1978. Lesser became president of X10 Columbia University in 1956, then (USA) in 1984. In 1989, the company an MBA from Harvard in 1960. introduced the world’s irst low-cost After four years at IBM, DIY wireless home security system, Lesser was persuaded by a followed by several other security former manager to form and monitoring systems and services. run a new division at computer While X10 achieved a level manufacturer Olivetti to sell of success with major retailers, the company’s Programma 101, While the Accutrac failed, In 1978, Lesser started selling the company su¤ ered one big the irst self-contained desktop Lesser saw value in remotely the X10 system, consisting problem: it was alone in the computer. In 1973, he was named controlling a wider variety of of a 16-channel command market. With no competition, X10 vice president of marketing home gear such as lights and console, a lamp module and by itself couldn't build a totally at General Instrument’s appliances. He asked Pico to an appliance module. He soon new market with mainstream microelectronics division, which come up with a remote-control followed by adding a wall consumers. But within the made chips for the irst mass- solution that didn’t use IR or switch module. Two years later industry, X10 was hailed for produced chip-based calculators ultrasonics since neither could a timer was introduced. After establishing a product and market and Atari’s Pong. penetrate walls, or RF because of a demo, Sears was dazzled, that had never existed. The GI chips Lesser sold FCC restrictions. and the system got a full page Lesser retired as president of had been designed by Pico Pico’s engineers designed in the retailer’s January 1979 X10 USA in 2000. In December Electronics. By 1975, chip prices and patented a protocol that catalog. Sears installed X10 2003, Lesser was elected to the had dropped precipitously, passed signals through standard demo consoles in all its 800 board of VOXX International. so Pico developed a remote- home electrical wiring. Since stores. Lesser then sold X10 to Lesser also served as a member of controllable turntable called the Accutrac project had been Radio Shack, which featured CTA’s executive board from 1999 the Accutrac and gave Lesser a dubbed X9, Pico called the it in both their catalog and its to 2000, and Industry Executive demo. home control e¤ ort X10. 5,000 stores. Advisor from 20052010.

CTA.tech/i3 NOVEMBERDECEMBER 2018 39

i3_1118_31-43_FEATURE_HOF_Layout.indd 39 10/24/18 1:32 PM Te mer chnolog Cons u y

FOUNDER, DOW STEREO/VIDEO (1944 – )

hen consumer technology W companies had new of 10 DOW Stereo/Video stores, technologies to introduce, the including locations in Chula irst person they’d call was Mike Vista, east El Cajon, Vista, La Romagnolo at San Diego’s DOW Jolla and Clairemont. Other than Stereo/Video, which, for over inancing, Romagnolo attributed 30 years, has been the irst to Te his success to being nimbler than sell more than two dozen new his larger competitors and shifting products. umer chnologquickly when he recognized a Soon after he wasCons born promising technologyy was being in Jersey City, NJ, in 1944, introduced. DOW’s penchant for Romagnolo’s family moved to showcasing new tech created a San Diego. After graduating high cool-factor bond with tech-savvy school, he found work in sports Romagnolo attributed his success to being customers, as well as a trusting and commercial ishing boats. nimbler than his larger competitors and relationship with manufacturers He soon discovered there looking for high-proile national was no future in ishing. In 1968, shifting quickly when he recognized a retail exposure for their next-gen after getting married to Sandy, technologies. Romagnolo answered an ad for a promising technology was being introduced. Over the years, DOW became salesman at Mr. TV, a local three- known as a “launching pad.” store chain. After six months, his Consumers lined up for hours boss asked him to run a failing for a chance to be the irst to location. While building up the buy more than two dozen new store’s business by expanding Romagnolo’s success Anchor. Most importantly, he also technologies irst sold at DOW into stereo consoles, Romagnolo was built on inding and got the contacts with higher- including 8mm camcorders, large and his wife realized they could developing talented and loyal end brands. After a few months, screen direct view TVs, Super VHS accomplish the same thing on individuals and recognizing Romagnolo closed his other players, digital audio tapes, CD¡Rs, their own. the need for inancing in the three locations and focused on digital cell phones, DVD players, In spring 1969, Romagnolo days before ubiquitous credit DOW’s 7,000-foot store. satellite TVs and HDTVs. Highly- bought four stereos with his cards, especially for college Romagnolo picked up promoted irst-day availability $1,000 tax return and got four students. Romagnolo set up the lines he needed and of new gear by “D¡O¡W DOW” more stereos on consignment. his own inancing department, also opened an on-premise attracted thousands of early Romagnolo called his rented advertising payment plans for as installation subsidiary up the adopters, along with national, 1,000-square-foot North Park little as $10 a month. street. In 1981, he added video and often international, media store Anchor Stereo. After the A retailer called DOW Sound and TV, and he consolidated coverage, most featuring DOW eight stereos quickly sold, he City, a seller of higher-end audio all his operations into a single spokesperson Tom Campbell. ordered more, developing systems, was the area’s dominant 15,000-square-foot, two-story In April 1999, DOW was relationships with manufacturers. seller of component stereos. But building 10 blocks away. In awarded the Smithsonian Award Romagnolo expanded both his when Dow went bankrupt in 1971, 1983, he added a 9,000-square- for Heroic Achievement in inventory and locations, adding a Romagnolo bought the retailer’s foot location by the San Diego information technology. Once 2,500- and then a 3,500-square- inventory, name and the lease for Sports Arena. having reached this height, foot store in the area around San its main store at 37th and El Cajon Over the next 14 years, Romagnolo sold DOW Stereo/ Diego State University. Boulevard, down the street from Romagnolo expanded to a total Video and retired.

40 NOVEMBERDECEMBER 2018 IT IS INNOVATION

i3_1118_31-43_FEATURE_HOF_Layout.indd 40 10/24/18 1:32 PM Te mer chnolog Cons u y

Te NIKLAS ZENNSTRÖM umer JAAN TALLINN chnolog AHTI HEINLA (1966 –)Cons (1972 –) y(1972 –)

JANUS FRIIS PRIIT KASESALU (1976 –) (1972 –)

alling folks around the engineering physics from the Kazaa, along with three overseeing the creation of its world used to be an Royal Institute of Technology, engineers from Tallinn, Estonia: underlying technology. C expensive proposition, then spent a year at University Ahti Heinla, Priit Kasesalu and Kasesalu, born April 10, by both standard phone lines of Michigan. In 1991, he got a job Jaan Tallinn. The three school 1972, worked with Tallinn as a and especially cellular. But in in Amsterdam at the European friends had co-founded games programmer for a local hardware August 2003, using software on telecom operator Tele2, and studio Bluemoon Interactive manufacturer of 8-bit PCs for use in a personal computer connected helped build the company’s dial- in 1989, and created the irst public schools in 1986, then earned to the internet, a Swede, a Dane up internet service. Estonian commercial computer a degree in automation and system and three Estonian coders In 1996, Zennström met Janus game, Kosmonaut. technology from Tallinn Technical united to launch Skype, the irst Friis at Tele2. Born June 26, 1976, Born May 2, 1972, in Tallinn, University. With Heinla and Tallinn mainstream voice over internet in Copenhagen, Friis dropped Heinla’s parents were both at Bluemoon, as well as Zennström protocol (VoIP) calling service, out of high school to work at computer programmers, and Friis, he helped develop Kazaa whose software has been the Danish ISP CyberCity before teaching him to program at age along with several other peer-to- downloaded more than a billion getting a job to lead Tele2’s 10. After co-founding Bluemoon, peer services before becoming a times and has more than 300 customer support. Zennström he attended the University of core library developer for Skype. million active users daily and Friis together launched Tartu, and then worked as a Tallinn, born February 14, 1972, Niklas Zennström,born get2net, another Danish ISP. programmer on the Swedish was programming Z80-based February 16, 1966, in the But the pair left Tele2 and, in Everyday.com web portal in Yamaha MSX computers when he Stockholm, Sweden, suburb January 2000, Friis moved into 1999, which brought him to the met Heinla and Kasesalu in 1988. of Järfälla, earned degrees Zennström’s tiny Amsterdam attention of Zennström and Friis. He earned a B.S. in theoretical in business administration apartment to develop the peer- In 2002, Heinla was named chief physics from the University of from Uppsala University and to-peer music sharing application technical architect of Skype, Tartu in 1996.

CTA.tech/i3 NOVEMBERDECEMBER 2018 41

i3_1118_31-43_FEATURE_HOF_Layout.indd 41 10/24/18 1:32 PM Te mer chnolog Cons u y

the Year in the European Business By 2003, Kazaa had become Within a month, [SKYPE] attracted a million Leaders Awards (EBLA). In 2009, the world’s most downloaded the Swedish KTH Royal Institute internet software. At its height, users, 4.1 million in its first business of Technology awarded him its Kazaa constituted 50 percent KTH Great Prize and he received of all internet tra ic, but also quarter, and 19.8 million in its first year. a Lifetime Achievement Award attracted lawsuits from record from the Oxford Internet Institute labels. The pair sold Kazaa and in 2011. In 2013 was awarded a co-founded Joost, an interactive Te Swedish King’s Medal as well TV service, and another peer- as a gold medal by the Royal to-peer software development umer chnologSwedish Academy of Engineering company. Cons Sciences. y While working between In 2006, along with the shared Amsterdam and Estonia on 2003 and was downloaded through a period of corporate TIME Magazine and Wharton various projects, the ive 10,000 times. Within a month, restructuring and technical honors, Friis won the “It Prize” programmers racked up it attracted a million users, 4.1 rebuilding to make the system from the Danish IT industry. With extensive international phone million in its irst business quarter, usable on smartphones. Over the Heinla, Friis co-founded Starship bills. Looking to lower these and 19.8 million in its irst year. years, Skype improved service Technologies in 2014 to develop expenses, they wondered, “Why Skype call quality was so good, by adopting cloud technology as small self-driving unmanned can’t we talk over the internet?” a user said his mother could well as dedicated “supernodes” delivery robots for cities. The ive decided to leverage their hear him smoking. Skype soon hosted in data centers. They also Heinla serves as Starship peer-to-peer technologies and was acquiring ive new users developed a network of beta Technologies’ co-CEO and CTO. create a VoIP communication every second, virtually 500,000 testers to ensure smooth usage. He also helped organize Let’s Do system. new users per day. After a In 2011, a more robust Skype was It 2008, during which 50,000 Originally dubbed Skyper – a 17-month development period, sold to Microsoft for $8.5 billion. volunteers – four percent of the compressed version of “sky peer- Skype added video chatting Zennström, an avid yacht country’s population – helped to-peer” – the “r” was dropped in December 2005. “Skype” racer, founded and became clean up the Estonian countryside so the group could procure a soon became a byword for CEO of tech investor Atomico in one day, inspiring the global .com domain. After a year or so, internet voice and video calling in 2006, and, in October 2015, World Cleanup Day held each tired of testing the system with worldwide. was tapped to head the new September. In 2003, Heinla, other engineers, Zennström tried With a nearby college European Tech Alliance (EUTA), Kasesalu and Tallinn co-founded calling an old school friend in supplying freshly-minted promoting Europe as a tech hub. Ambient Sound Investments. Singapore. After 45 minutes of computer science graduates, In 2007, Zennström and his wife Tallinn also co-founded the catching up on old times, it was ambitious new developer Catherine founded Zennström Cambridge Centre for the Study clear to Zennström that Skype hires poured in, and Skype Philanthropies to support human of Existential Risk and Future of worked. soon outgrew its Tallinn HQ. rights, ight climate change Life Institute, and the medical But would consumers sit The company also started to and encourage environmental consulting irm MetaMed, is on the in front of PCs to make phone attract deep-pocketed suitors. entrepreneurship. Along with Board of Sponsors of the Bulletin calls over the internet? It turned In October 2005, Skype was Friis in 2006, Zennström was of the Atomic Scientists and has out that free – or close to it – bought by eBay for $3.1 billion. In named one of TIME Magazine’s served on the Estonian President’s international calling overcame 2009, Zennström and Friis led a 100 Most Inluential People, Academic Advisory Board. He is potential user objections; consortium of private investors to received a Wharton Infosys also an active angel investor and a people “got” Skype immediately. re-acquire a controlling interest Business Transformation Award former investor in and director of It launched on August 29, in Skype, which then went and was voted Entrepreneur of the AI company DeepMind.

42 NOVEMBER DECEMBER 2018 IT IS INNOVATION

i3_1118_31-43_FEATURE_HOF_Layout.indd 42 10/24/18 1:32 PM Te mer chnolog Cons u y

INVENTOR, ACOUSTIC SUSPENSION SPEAKER (1917 – 2011)

here is not a more acoustic suspension and his new important innovator direct-radiator tweeter, patented T in the development in 1959, would later be displayed of modern consumer sound at the Smithsonian Institution’s reproduction than Edgar Villchur. Information Age exhibit. In 1961, He invented and patented the Te he invented the independent acoustic suspension speaker, suspension turntable that reduced which became the basis for umer chnologskipping, motor noise and nearly all loudspeakers Cons that vibration. The ysmaller AR4 in 1964 followed and founded Acoustic was a hit with college students. Research to sell them. Villchur Villchur promoted his new also invented the direct-radiator There is not a more important innovator in speakers by sponsoring “live tweeter, one of the irst dome versus recorded” concerts around tweeters, the independent the development of modern consumer sound the country. A string quartet would suspension turntable, and reproduction than Edgar Villchur. alternately play a piece of music technology used in nearly every or mime it to their own recording hearing aid sold. played through the AR speakers, Edgar Marion Villchur was with listeners rarely able to detect born in Manhattan on May 28, a di erence. 1917, the only child of Russian Sales soared and by the mid- emigres Mark and Mariam. He 1960s, AR had captured nearly a earned both his undergraduate that automatically dropped the Speaking to his acoustics third of the home speaker market. and his master’s degree in art tone arm slowly onto a record, a class at NYU in spring 1954, he Competing speaker brands began history from the City College of technology he later added to AR hinted at his ideas being more licensing Villchur’s design, then New York in 1939. The following turntables. e ective for producing bass. copying them, and a new market for year, Villchur was drafted into the In 1952, Hi-Fi speakers were One student, Henry Kloss, stayed smaller home speakers was born. Army Air Corps, where he trained huge boxes to e ectively after class, eager to learn more. Villchur was president of as an electronics technician and reproduce bass, featuring Student and teacher perfected AR, known for its progressive was made responsible for his open backs because speaker the design, which received a employment and liberal repair squadron’s radio operations in designers discounted the patent in 1956. Villchur tried policies along with star-studded the Paciic, rising to captain. e ect of the cabinet. Villchur unsuccessfully to license ads, until 1967 when he sold After the war, Villchur opened began tinkering with smaller, the technology, but speaker the company. He then founded a radio shop in Greenwich Village, closed-back designs in his makers thought the design the Foundation for Hearing Aid repairing and building custom basement workshop, replacing impossible. So Villchur founded Research, and developed a Hi-Fi sets, taught the irst college the nonlinear mechanical spring Acoustic Research (AR) in Kloss’ prototype of the multichannel course in sound reproduction at with a linear air cushion to reduce Cambridge, MA, loft, and the pair compression hearing aid. But New York University and married distortion. He built a prototype produced the AR1, introduced he purposely didn’t patent the Rosemary Shafer with whom he from a plywood box, and his wife, at the New York Audio Show in design, altruistically allowing had two children. He also worked a draftswoman during the war, 1954, along with its successor, hearing aid makers to widely for the American Foundation for sewed the pattern for the lexible the lower-priced AR2, in 1956. deploy the design that has the Blind, inventing a turntable surround out of mattress ticking. The AR3 combined both become the industry standard.

CTA.tech/i3 NOVEMBERDECEMBER 2018 43

i3_1118_31-43_FEATURE_HOF_Layout.indd 43 10/24/18 1:32 PM ARE YOU CES READY?

The most inﬂuential technology show on the planet is returning to Las Vegas, January 8-11, 2019.

With 4,500 exhibiting companies — including more than 1,200 startups — it’s the proving ground for new innovations.

It’s all ready for you, if you’re CES ready.

i3_1118_44_AD_HOUSE_CES_Layout.indd 44 10/23/18 3:02 PM Policy

THE PACE OF TECHNOLOGY Encouraging Innovation to Prosper

49 Policy in Action The Business of Selling Services Online

46 Policy Update 48 Guest Blog 49 Policy in Action 50 Faces of Innovation 52 Tech Hub Ikon Images/Getty Images Images/Getty Ikon

CTA.tech/i3 NOVEMBERDECEMBER 2018 45

i3_1118_45_POLICY_Opener_layout.indd 45 10/24/18 4:04 PM Policy By Sage Chandler

POLICY UPDATE Understanding Trump’s Taris

he trade war with China is charging forward and the As an unintended consequence of a implications on the U.S. could linger into the future. tari on PCA, American manufacturers T On September 24, the U.S. began collecting 10 percent of products that rely on imported Chinese PCAs will cut orders some six taris on $200 billion in Chinese imports – this tari will shift to 12 percent from suppliers because to 25 percent if things are not resolved by January. On top of the cost will rise by nine to 23 percent. that, the U.S. is collecting taris on washing machines, steel These costs ultimately will be passed on and aluminum. Combined all these taris will cost the economy to American consumers and could $30.4 billion and eliminate nearly 100,000 jobs according to increase prices on electronics by up to the Tax Foundation. six percent. More, taris on PCA will cost the U.S. economy anywhere between $110 million to $613 million How Does this Aect the their products taken o the lists. annually, for the ten percent and 25 Tech Industry? By exempting these products, the percent taris respectively. In the latest round of taris – $200 bil- Trump Administration may feel it has lion list – the Trump Administration helped certain Americans. But all tar- What Impact will this have spared $10.5 billion worth of connected is are taxes and they create trade wars. on Businesses? devices imported from China, such as On the list remain $11.5 billion worth Taris will cost the U.S. money, jobs tness activity trackers, smart speakers, of networking goods, including and our innovative spirit. During the smartwatches, wireless earbuds and modems switches, routers and $11.6 United States Trade Representative wireless headphones. While this was a billion worth in printed circuit assem- hearing in August, this is what CTA small victory for many in the tech blies (PCA), which accounts for 68 per- member companies said: industry, others weren’t as lucky to nd cent of all U.S. PCA import. Aaron Emigh, Co-founder and CEO of Brilliant, a Californian company that created a smart home control device: “It would cost approximately a million dollars and take many months to relo- cate manufacturing outside of China. These costs and timelines are not prac- tical for Brilliant, as a small startup company with modest resources. Essentially, the proposed taris amount to a punitive tax on selling US technology, manufactured by a US company, to the domestic market.” A Mark Karnes, vice president, strategic planning and business develop- 25% ment of Illinois’ Cedar Electronics, maker of aftermarket products such as TAX CB radios, jump starters and dash- could slow cams: said, “The products that are U.S. output impacted at the 25 percent tariff level by have a dramatic effect on 60 percent of our company’s annual revenue. The dramatic increases in our product $332 billion costs are making us less competitive over the next ten years. with our foreign-based competition and the substantial loss of income

from our main product categories of Images Pixel/Getty Wild

46 NOVEMBERDECEMBER 2018 IT IS INNOVATION

i3_1118_46-47_POLICY_PolicyUpdate_Layout.indd 46 10/24/18 2:00 PM By Bronwyn Flores Policy

our business will force us to cut jobs in the U.S immediately.” China tariffs directly impact the live- Future lihood of U.S. small businesses. of Work: What is at Stake? At stake is 5G and cloud computing. Demand for Skilled Taxing network equipment and other Tech Workers Rises vital components used in 5G technology will raise the cost of U.S networking infrastructure by hundreds of The U.S. unemployment rate is at millions of dollars and reduce the a nearly 50-year low, but CTA’s sec- incentives to improve it. Rolling out ond annual Future of Work survey the next generation of wireless net- found 92 percent of its small business mem- works, which runs 100 times faster bers still need skilled tech workers, up six points from 2017. At than the current 4G, requires fewer the same time, optimism about finding qualified candidates obstacles, not more. Otherwise, the shrunk two points to seven percent while three quarters (74 U.S. will fall behind China. percent) of respondents say it will be hard to find candidates with the right skills, three points higher than last year. Also, the networking equipment, like routers, in data centers will cost more. And the services cost will rise on the Many companies also are look- Hull, SVP, human resources, internet service providers (ISPs) that ing how to best reskill their cur- AT&T Communications. access those data centers. Additionally, rent workforce to retain their IBM is investing in public the ISPs’ costs would rise between 10 top talent. Of the 37 percent of school system reform through its Pathways in Technology and 25 percent on each product, such respondents who anticipate their company will displace Early College High (P-TECH) as the modems they import. Those workers because of technologi- school. The six-year program costs and fees could pass on to some- cal change, about half of them bridges the gap between high one else in the supply chain until they (57 percent) also plan to reskill school and college to help stu- reach the consumer. and retain their workers. dents earn a degree that pre- As a result, American consumers will For example, AT&T is commit- pares them for the jobs of the face an internet of things tax. The first ted to reskilling 35 percent of 21st economy. “We're shifting will be on the networking products they its employees by 2020 as part mindsets and recognizing that buy at retail stores or online, and the of a $1 billion effort that not all candidates need tradi- second will be in the form of increased includes online courses and tional degrees – rather, it's costs associated with accessing the inter- collaborations with universities their skills that matter most. With our focus on ‘new collar’ net and tapping into the cloud. A 25 to prepare workers for new jobs and career advancement. jobs, IBM is creating pipelines percent tax could slow U.S. output by “Rather than the wholesale hir- to employment and new $332 billion over the next ten years. ing of new talent from outside, opportunities for learning and These cost increases will make it dif- we launched several years ago skill development in emerging ficult for the U.S. to lead in 5G innova- a significant effort to help our technologies such as block- tion, something President Trump has employees learn the skills to chain, AI and cybersecurity,” been adamant to do. And without the prepare for the jobs of the says Kelli Jordan, talent leader, processing power needed to make 5G future at AT&T. We’re working New Collar Initiatives, IBM. applicable in artificial intelligence, constantly to engage and reskill For case studies on how CTA self-driving vehicles, smart city infra- our over 250,000 employees, members are working to train structure and increased rural connec- and to inspire a culture of con- and upskill Americans, visit CTA.tech/FutureOfWork. tivity, the Trump Administration is tinuous learning,” says Dahna making it harder to achieve any technological advancements.

CTA.tech/i3 NOVEMBER/DECEMBER 2018 47

i3_1118_46-47_POLICY_PolicyUpdate_Layout.indd 47 10/24/18 2:00 PM Policy

GUEST BLOG Consumers Save $3.5 Billion in Energy Consumption By NCTA – The Internet & Television Association

he industry’s green e orts to reduce set-top box on smart TVs, tablets or using low-power energy consumption through voluntary devices such as an Apple TV or a Roku device. T agreements are paying o . In July, D+R International’s audit on home internet equip- Tracking Savings ment found that devices such as modems and To help track energy savings resulting from consumer use of apps, revisions were made to the voluntary agreement routers were nearly 20 percent more energy e - that require service providers to track and report the num- cient than they were prior to the voluntary ber of devices that customers used to access their content agreement for small network equipment, in the prior year, and to identify the platforms on which and the good news continues. their apps are available. Every provider reported supporting between four and 14 platforms — such as D+R released its latest data, which reported the Samsung, LG, Roku, Apple TV, Amazon Fire TV, strongest year yet in achieving savings under the Google Chromecast and Android — with more plat- voluntary agreement for set-top box energy effi- forms under development. In 2017, consumers used ciency. Consumers saved a tremendous $3.5 billion more than 100 million devices to access the pay TV ($1.4 billion in 2017 alone) and avoided more than providers services using these apps, compared to just 20 million metric tons of carbon dioxide emissions in over 200 million set-top boxes. the past five years since the award-winning program This is the rst time that actual app usage data was implemented. The signatories of the agreement from the major U.S. service providers has been avail- include pay TV providers, manufacturers and energy able, and it shows that consumer adoption of efficiency advocates. video apps is o to a strong start. The report found that national set-top box As NCTA General Counsel Neal annual energy consumption has declined by Goldberg said, “One-third of all 34 percent in the ve years under the vol- D+R released its latest devices used by consumers untary agreement, even as set-top data, which reported to access [multichannel boxes have been upgraded and video programming] ser- enhanced with new features and the strongest year yet in vices in 2017 were not operator functions. More, from 2016 to 2017, achieving savings under the provided set-top boxes, and as the industry saw its year-over-year voluntary agreement for that percentage continues to energy savings increase by nearly 50 set- top box energy increase, consumers will save even more percent as the parties implemented e iciency. energy in addition to enjoying more more rigorous energy levels that choice in how they watch video.” became e ective in 2017. “To date, the Voluntary Agreement has brought D+R reported that DVRs, once the most progress in set-top box energy e ciency — in the energy-intensive type of set-top box, are a key form of energy and cost savings — to more than 90 million area of savings. D+R found that new DVRs use 46 percent U.S. households,” said Jennifer Amann, buildings program less energy than those that were purchased prior to the director for the American Council for an Energy-E cient agreement, and that nearly all DVRs today were purchased Economy. “We look forward to continuing to work with under the agreement’s commitments. the industry to ensure ongoing improvements to set-top More, consumers are using fewer DVRs because of boxes and related advances that will save consumers even whole-home technologies that enable them to watch more on energy costs while reducing emissions.” recorded content on multiple TVs using a single DVR, and For more information on the energy efficiency because of apps that enable customers to watch the service voluntary agreements and a list of signatories, visit providers’ video services without any operator-provided www.energy-efficiency.us/

48 NOVEMBERDECEMBER 2018 IT IS INNOVATION

i3_1118_48_POLICY_Guest_Blog_layout.indd 48 10/24/18 1:58 PM By Caitlin Cline Policy

POLICY IN ACTION The Business of Selling Services Online

isruptive companies such as Airbnb and Amazon are helping experience helping boost individuals sell their services online – whether its renting a small business activity – D basement room, giving a cooking lesson or selling hand- while assisting individuals to make extra income – made goods. These companies allow anyone with a passion to is hospitality service become an entrepreneur. Airbnb. As more trav- elers want to experi- This is true of Amazon seller Angelica ence cities like Elena Castaneda, founder Melendez residents do and not as and CEO of Bling Jewelry, tourists, the short-term who started her business rental platform has helped with a credit card and an increase tourism to more Amazon account. After ten diverse neighborhoods, gen- years in business, Bling erating greater support for Jewelry employs 40 people local businesses. and sells to customers in For example, Airbnb reports almost a dozen countries. A it hosted 236,000 guests in share of her success is due to Washington, DC in 2016, and the opportunities Amazon guests spent $160 million in provides small businesses. local businesses. District resi- “Amazon gives you every dent Angelica Melendez is one possible tool you can think of of those hosts, and helped to manage your business and drive foot tra c to her neigh- make it successful,” says Cas- borhood’s shops, as she used taneda. She attributes some the platform to help pay for of her success to Amazon her mortgage while she Prime Day, where she has attended graduate school. She been able to achieve growth often opens her home to and hire more employees. interns looking to o set the “Sales generated on Prime high cost of living in the Day have helped us expand nation’s capital. our team and move into a “I’m providing a di erent larger o ce space in New kind of service to make a job Jersey. In fact, since moving accessible,” says Melendez. She to our new space, we have hopes visitors – especially already hired 10 new young people – view the short- employees,” adds term rental platform as more Castaneda. than just a tourism app. In general, small The 21st-century new econ- business owners view Elena omy has changed how busi- Castaneda online retailing as a nesses operate, shifting away way to boost sales. from “us versus them” to help- According to a 2018 Insureon The 21st-century new economy ing individuals thrive. To sur- and Manta poll, over two- has changed how businesses vive in this new economy, thirds (68 percent) of small operate, shifting away from companies must invest in their businesses say Amazon’s mar- “us versus them” to helping users – whether it be Amazon ketplace has a positive individuals thrive. sellers or Airbnb hosts – impact on businesses sales. because their success is critical

Ikon Images/Getty Images Images/Getty Ikon Another e-commerce to a company’s standing.

CTA.tech/i3 NOVEMBERDECEMBER 2018 49

i3_1118_49_POLICY_PolicyInAction_Layout.indd 49 10/24/18 1:56 PM Policy By Caitlin Cline

FACES OF INNOVATIONINNOVATION CEO and Co-founder, Angelo Stracquatanio

capability, which directly increases safety, control and reliability in the workplace. With our solution, users are equipped with all of the critical data they need in order to understand a task and perform it lawlessly. It will alert users before an error is made and provide the correct next steps.

Q Can you talk about the software behind Apprentice? A Our technology is built industry compliant and platform independent, able to run on various devices from ARCore/ARKit for mobile, through monocular smart glasses like RealWear HMT, to full immersive AR on HoloLens or Magic Leap smart glasses. Our solution experts irst evaluate each of our customer’s needs and then determine which pprentice.io is proving my background in development, I knew that type of device, or combination of devices, that tech’s incorpora- with the right technology, these errors were will be most beneicial for each unique avoidable. I began to develop a solution to A tion in the workplace environment. address these pain points and empower the is very bene cial. Its indus- scientists and engineers operating in the lab Q How do you see AR changing in the trial augmented reality (AR) or manufacturing suite. next ive years? glasses are changing how sci- A AR has evolved into one of the most Q How does Apprentice incorporate AR entists, engineers and manu- promising digital technologies. It is trans- in its products? forming all major enterprise industries and facturers interact with A We developed the irst conversational changing the way companies compete complex work environments augmented reality and artiicial intelligence for space. The truth is that when applied and give an unparalleled sense platform to signiicantly improve complex smartly, AR can unleash a workforce’s full- workplace processes conducted by scientists est potential. Industry leaders are realizing of control and e ciency. The in the lab or operators/engineers in manu- this and are accepting this tech as the way innovative glasses allow pro- facturing suites. We use AR and machine of the future. Imagine easily visualizing fessionals to work hands-free learning to provide users with live AR demon- procedures and checking for errors before while having access to perti- strations, SOPs, direct real-time feedback for making them or intelligently scanning and performance correction and hands-free data recording data just by looking at it. AR is nent information to help them capture. We also use AR for risk-free training, all about the user experience and discov- reach their full potential. audit-readiness and global communication, ering new ways that technology can help ushering in the next wave of human potential. humans achieve goals and learn from that Our pharma and biotech clients are specii- interaction. Q How did Apprentice get its start? cally using our AR tech to conduct research On the consumer side, AR will continue A I had close relationships with profession- and safely manufacture drugs that most of us to bring new opportunities for engag- als in the pharma and biotech space who have either heard of or take regularly. ing with customers and creating a brand would talk about the billion dollar losses, experience. Enterprise AR will become a massive production delays and lost batches Q How is it helping create a safer common solution for building a stronger all caused by human error. Hearing these workplace? workforce. With the ability to communicate stories completely changed the way I A We like to say that we don’t just aug- in real time across the world and the capa- thought about how humans operate in com- ment reality; we augment human ability. bility to access critical data at a moment’s plex, compliance-driven environments. With The Apprentice platform magniies human notice, the possibilities are endless.

50 NOVEMBERDECEMBER 2018 IT IS INNOVATION

i3_1118_50_POLICY_Faces_of_Innovation_layout.indd 50 10/24/18 3:44 PM NATIONAL CONSUMER TECHNOLOGY INDUSTRY AWARDS TRIBUTE & INDUSTRY DINNER ZIEGFELD BALLROOM • NEW YORK SAVE THE DATE 11.10.18

HONORING

RICK ALBUCK STEPHANIE DISMORE Vice President Vice President & General Manager Business Development | 2020 Companies Americas Channels | HP Inc.

MICHAEL PETRICONE DANIEL PIDGEON DAVID PIDGEON Senior Vice President Co-Founder | Starpower Co-Founder/CEO | Starpower Government Affairs | CTA

For more information or to purchase tickets visit www.adl.org/consumer-tech or contact Beth Katznelson at [email protected] Established in 1913, ADL is the premier, civil rights/human relations agency ghting all forms of bigotry. Its mission, celebrating diversity and respect for human individuality is achieved with outreach programs through a network of Regional and Satellite of ces.

i3_1118_51_AD_HOUSE_ADL_Layout.indd 51 10/23/18 3:02 PM Policy By Jeremy Snow

TECH HUB Hardware Club Members

With hundreds of members around the "At the Hardware Club, world, Hardware Club features some of the most exciting companies in transportation, robotics and smart home. Community Comes First" Here are two companies positioned to ardware companies are known as some of the riskiest become household names. investments in Silicon Valley, but a successful one has H the possibility to dene an industry and change consumers’ lives. Just look at companies like Apple, Fitbit and GoPro.

Alexis Houssou deals with the highs and people and gaining information,” lows of hardware startups every day as Houssou says. “I would bet that every- the co-founder and president of one in Hardware Club could nd at Hardware Club, a venture rm that exclu- least one other company that is going sively deals with hardware. But Houssou through — or already overcame — the cares about much more than signing the same problem as you.” check, spending the past three years mak- Hardware Club describes itself as ing Hardware Club a community where “stage agnostic” instead of an accelera- REACH ROBOTICS: At CES 2018, doz- roughly 500 startups of all sizes and types tor or incubator, since just three per- ens of attendees gathered around a large network and share advice. cent of member companies have box in front of Reach Robotics’ booth to Before starting the company, Houssou investments with it. Instead, the rm see spider-like robotics crawl around. invested in multiple hardware busi- focuses on bringing together startups The attendees were watching MekaMon, nesses but noticed each of his invest- of all levels to provide mentorship and the lagship product of the Hardware Club member. Users can control the ments suered similar challenges, like advice. Once a member is accepted, robots on their phone and through a distribution or Chinese manufacturing. startups join for free and have access to combination of remote control and VR, So, Houssou set out to create a place all other members, as well as commu- use them to play di erent games or ight where companies could work together to nity events and unique opportunities at other MekaMon. Reach Robotics envision solve these problems. trade shows. Participants immediately their creation as the future of gaming — “Hardware is hard, denitely, but recognized the value of exibility and an unforgettable experience that makes one of the easiest ways to make it more access at Hardware Club. playing both digital and physical. approachable is connecting to other The VC has allowed dozens of companies to come to CES since 2015. In 2018, Hardware Club brought 18 companies, including 3D-body scanning scale Shapescale and internet-connected helmet Cosmo Connected. CES continues to be essential for many Hardware Club members, introducing them to distributors, investors and manufacturers. For 2019, Houssou plans to bring a total of 23 member companies to their “CES alley.” “CES is the best way for our members COWBOY: Described by Hardware Club to meet the whole system behind the as the “Tesla of e-bikes,” Cowboy is look- industry,” Houssou says. “It’s not just ing to revolutionize urban travel in the about launching a company — it’s a age of the smartphone. The European week where you can focus on connect- company, now worth over $1.3 billion, ing to the community.” creates a high-end bicycle complete with a brake light, removable battery

Alexis Houssou, and an accompanying app for your co-founder and CES 2019 More than 1,200 entrepre- phone that acts like a dashboard with president of neurs and startups will showcase navigation, ride stats and GPS. Hardware Club. 2019 innovation at Eureka Park.

52 NOVEMBERDECEMBER 2018 IT IS INNOVATION

i3_1118_52_POLICY_TechHub_layout.indd 52 10/24/18 1:57 PM Business 57 Advice for Entrepreneurs Options Always Lead to Success

STRATEGIES TO GROW THE INDUSTRY Insights to help improve the bottom line

54 C Space 56 Forward Strategies 57 Advice for Entrepreneurs 58 Retail Strategies 60 By The Numbers 62 CT Reports 63 Market Beat 64 Stats & Facts Jorg Greuel/Getty Images Greuel/Getty Jorg

CTA.tech/i3 NOVEMBERDECEMBER 2018 53

i3_1118_53_BUSINESS_Opener_layout.indd 53 10/24/18 2:43 PM Business By Gary Arlen

C SPACE Streaming: It’s All About Connections

s streaming video accelerates its juggernaut into homes sions in the face of an increasingly com- worldwide, its role in the media economy continues to petitive market,” says Ampere analyst A shift. Although mobile and dedicated over-the-top Richard Cooper. But, streaming video faces several hur- receivers will continue to play a signi cant role in ful lling dles, notably audience fragmentation. viewers’ appetites for streamed programs, the growing adop- Concerns include capabilities, such as section of smart TV sets is very important. One reason is the ond-screen access, that distract viewers increased demand for reliable quality of the signal. and make it more di cult to break through the clutter. Two-thirds of the ad- tech respondents in a Viant study say ad A recent report by real-time streaming will stop watching a video after two rebuf- clutter is now a major barrier. platform Phenix, The Streaming Wars, fers — crucial in programming such as live found that more than half of viewers sportscasts. Limelight’s State of Online Data Deluge on Streaming Media abandon a poor-quality stream in 90 sec- Video report found that 60 percent of One factor stands out: steaming media is onds or less. The report found about 27 global consumers are more likely to watch immensely popular. The Limelight study percent of streaming customers “don’t live sports online if they are guaranteed found in the U.S., young binge viewers think ‘live’ is worth paying for” if there is not to experience viewing delays. watch nearly three hours of programs (two consistently poor quality. hours 56 minutes) during a session; well Another analysis by Limelight It’s about Content and Competition above the global average of two hours Networks concluded frequent bu ering The big-buck commitments of Net ix and seven minutes). In contrast, online view- interruptions make viewers abandon a Amazon to produce original programming ers above 60 years old watch just one hour program. It found two-thirds of viewers will keep viewers tuned into the subscrip- seven minutes at a time, Limelight says. tion video-on-demand (SVOD) As technical challenges are resolved, channels. Net ix has commis- and programming proliferates, price may sioned more than 250 new pro- become a more dominant factor in 27 percent of streaming grams, says Ampere Analysis; streaming. More than half of streaming customers “don’t think ‘live’ doubling the 229 original shows customers say price increases would be is worth paying for” if there is now on the company’s servers. the major reason to cancel an SVOD ser- Amazon Prime Video has about vice — slightly more than the percentage consistently poor quality. 105 original titles and is expected of cable customers who will cancel based to create an equal number of new on price increases. Today most SVOD cus- shows and series, Ampere says. tomers also are (for now) cable TV sub- Audience and program segmentation scribers. The Limelight study found that is also important. Net ix’s new shows — cable customers are supplementing, not largely comedy and science ction — are replacing, traditional TV with online aimed at young audiences, while 29 per- video. Cable subscribers pay for an average cent of Amazon’s new titles will be drama of 1.2 streaming services, while non-cable series that appeal to older viewers. subscribers buy just 0.7 services. Ampere also found that YouTube, And that’s why quality di erentiators Apple and Facebook are boosting are now so important. The Phenix study their original show distribu- — with its bias toward live programming tion. The three stalwarts concluded that nearly one- fth of custom- have a total of 65 shows ers who use a streaming service “would be in their pipelines. “All likely to switch platforms if there were an the major players alternative with a better ‘live’ option.” are expanding the number of CES 2019 Experience the latest original technologies related to advertising 2019

commis- and marketing analytics at C Space. Images iStockphoto/Getty

54 NOVEMBERDECEMBER 2018 IT IS INNOVATION

i3_1118_54_BUSINESS_CSpace_layout.indd 54 10/24/18 2:41 PM BRIGHT LIGHTS, BRIGHTER IDEAS. Las Vegas is the destination for next-gen pioneers. A place where the impossible meets the believable. It’s a city built on bright ideas, so it shouldn’t be a surprise that Vegas hosts the global stage for consumer innovation each year. If you innovate, you’ll find yourself here.

VegasMeansBusiness.com

i3_1118_55_AD_LVCVA_Layout.indd 55 10/23/18 3:02 PM Business By Scott Steinberg

FORWARD STRATEGIES optimize eorts and try out new strategies and solutions don’t have to be expensive or time consuming. For example, one global multinational New Technologies cloud services and storage rm rolls out new apps every six weeks for under Take Center Stage $20,000 on a year-round basis. Others regularly hold hackathons or host global How to turn your consumer tech company innovation contests where workers vote into a powerhouse of innovation on ideas to turn into product pilots. Others oer both employees and exter- ales of high-tech products are expected to hit $377 billion nal parties access to open innovation portals where customers or partners can S this year, with an annual increase of six percent, accord- suggest ideas for new solutions. ing to a recent CTA report. But with new advances com- Hundreds of technology tools and ing in elds ranging from articial intelligence (AI) to smart providers oer solutions for building home solutions, how can industry leaders stay competitive? an innovation framework or quickly testing new concepts. As a result, the process of turning your organization into a dynamo of innovation can be simple and aordable when you tap into the power of high-tech tools. Analytic programs and Internet of Things (IoT) solutions can help you invent your way to success by:

● Monitoring consumer behavior and predicting solutions shoppers need before they realize it.

● Letting employees pool resources to create minimum viable products (MVP). Success starts with realizing that innovation ● Leveraging networks of connected isn’t a one-time event. devices to better anticipate inventory needs and allocations, which products to stock and how to maximize sales conversion rates.

● Accessing white-label solutions for The secret to keeping ahead of the curve To fuel these ventures, don’t cut expenses quickly and aordably creating or rede- isn’t to slash costs to the bone or take when planning your business strategy. This signing custom-branded apps and fewer chances. Rather, it’s to double down approach promotes short term gains at the online services; rolling out new pro- on innovation and take more risks in the expense of long-term growth and com- grams or platforms; or adding new form of small, cost-eective learning petitive advantage. Instead, reassess the plug-and-play features to existing soft- experiments designed to help your busi- products’ and programs’ value to the ware or service solutions. ness grow its capabilities and become organization then funnel savings gained more adaptable and forward thinking. by shelving initiatives that are underper- Mastering innovation isn’t so much Success starts with realizing that inno- forming into more productive activities about embracing a methodology as it is a vation isn’t a one-time event. It’s an ongo- that help drive organizational growth. mindset. The more comfortable you are ing series of activities that every with routinely stretching your comfort organization should engage in, and a pro- Pioneering New Solutions zone and capabilities, the easier the process of self-reinvention. The more rapidly As fast as disruption occurs today, nd- cess of successful innovation will be. ■ and aordably you can bring new solu- ing ways to streamline eorts and digest tions to bear with feedback from real- the consumer feedback that comes with Scott Steinberg is the author of Millennial world shoppers, the faster you can them is crucial to sustaining market lead- Marketing: Bridging the Generation Gap.

streamline strategies to succeed. ership. Creating systems that allow you to His website is AKeynoteSpeaker.com. Images Mitch Blunt/Getty

56 NOVEMBERDECEMBER 2018 IT IS INNOVATION

i3_1118_56_BUSINESS_ForwardStrategies_layout.indd 56 10/24/18 2:40 PM Business By Jake Sigal

ADVICE FOR ENTREPRENEURS Options Always Lead to Success

core mission. For non-entrepreneurial employees and clients, even discussing options can induce fear and uncertainty. Imagine nishing an all-day product planning session and declaring, “OK, now everything that we just planned may not work, and if it doesn’t, let’s pivot.” Think about telling your vice president of sales, “Great job. But if this pending purchase order doesn’t come through, we need you to go out and book the team on another project.” These things happen when you’re Be careful: Reducing looking at options. options can lead to a While my sta downward spiral. would probably never admit it, I’d bet that openly discussing the options caused more ositive thinking and hard work are a clear path to suc- than one person to lose a lot of accrued cess. However, an unusually high number of economic con dence in our company’s ability to P and political events have recently challenged the viability execute. Though increasing options is always better for business, the cost of some businesses in the CTA community. This is not the rst options create is real. Pivoting is the time the tech community has faced adversity, but this is the rst king of all options and carries an inter- time in 10 years it’s happened with so many potentially dark pos- nal luxury tax to deploy. sibilities looming on the horizon. Still, the way in which options are pitched and created is as important as the When I started my rst company in not what the money could buy, it’s the options themselves. I always have a Plan 2008, there were probably more dark options the savings create and how it C, but typically only share up to Plan B. futures, but I either didn’t see them or makes me feel. About once a month, we are left with only they weren’t as easy to see. Economic one viable option for one reason or outlooks these days are like a 10-day Exploring Possibilities another after a scenario shakes out. weather forecast: They’re always For me, this cycle of creating options Be careful: Reducing options can interesting, but they’re only right half through deal ow, di erent structures lead to a downward spiral. It’s a riptide the time. and product roadmap forks not only pro- that’s very di cult to get out of I’ve always been a saver. I learned at vides sound business solutions, it creates unscathed. With the constant barrage an early, pre-bar-mitzvah age from my the right attitude that enables success. of negative economic forecasts, policy father to put away a percentage of I’ve written in past i3 articles about changes and client rollbacks, it’s easy to everything I’ve earned for a rainy day. It the importance of communicating with scale back options to t the needs. Stay wasn’t a matter of if I’d need it, it was all stakeholders. However, no amount of in front of the shifting political and when I’d need it. What I didn’t learn communication can replace the need for economic conditions by keeping your until I hit my 30s is that it isn’t about options. Options take time to work out options calculated and open. Options

Jorg Greuel/Getty Images Greuel/Getty Jorg saving, it’s about creating options. It’s and doing that can distract from the always lead to success.

CTA.tech/i3 NOVEMBERDECEMBER 2018 57

i3_1118_57_BUSINESS_Advice_For_Entrepreneurs_layout.indd 57 10/24/18 2:35 PM Business By Steve Smith

RETAIL STRATEGIES How to be an Independent Fish in the Pond of Mega-Retailers

he holiday shopping season is critical to ● Walt Stinson, CT Hall of Famer and co-founder of the success of consumer technology (CT) ListenUp, founded in 1972 in Colorado, helped to introduce T suppliers and retailers. When many con- CD players in the U.S. Known as an AV and control systems installer and designer for commercial and residential mar- sumers think about buying tech, Best Buy, kets, ListenUp is also an upscale brick-and-mortar and Amazon, Walmart and the mega-retailers that e-commerce retailer that operates five hybrid custom dominate the industry’s sales often come to mind. design showroom/retail locations — four in Colorado and one in New Mexico. But privately-held regional retailers and ● Ben Willis is executive merchandiser custom installers are thriving today. They Our sales associates with Queen City Audio Video provide consumers with good value, Appliances, a family-owned retailer that including delivery and installation if are very knowledge- has been in business for more than 65 needed. And they provide their suppliers able. We provide them years. It has a similar mix of products as with a distribution channel where their with intensive training Cowboy Maloney’s and operates six midrange to upscale products can be dem- three or four times a stores in the Charlotte, NC, area. onstrated, explained, installed and sold at year on technology pro table price points. and product features. Three executives with leading regional Q What do independent retailers provide to CT resellers contributed to this edited consumers that mega-retailers don’t? “virtual” roundtable to explain the role of Willis: Clarity. The average consumer is still independent retailers and installers: very confused about 4K, 1080p and the like. ● Eddie Maloney, president of Cowboy So, the consumer comes in, sometimes they will buy something else or just look around. Maloney’s Electric City, operates a 13-store They are afraid they will make a bad deci- electronics, appliance and furniture business sion. We train our team on the features of based in Jackson, MI, with his brothers Con every product in a category. [Qualifying the and Johnny. Founded by their father, CT Hall customer] and providing the right solution of Famer John “Cowboy” Maloney in the is critical to us. And you need to provide on- 1950s, the company sold the rst color TVs in time delivery and installation. We provide a Eddie Maloney, president of Cowboy Maloney’s the 50s, then years later sold DirecTV — Electric City. His father "Cowboy" Maloney was tremendous mix and support premium prod-

Sirius’ rst car audio system — and DishNet. inducted into the CT Hall of Fame in 2014. ucts versus mass commodity products. If you Images Gunnar3000/Getty

58 NOVEMBERDECEMBER 2018 IT IS INNOVATION

i3_1118_58-59_BUSINESS_RetailStrategies_layout.indd 58 10/24/18 2:17 PM Business

show consumers the di erences they can Walmart and Best Buy. And most importantly, if a step themselves up to a better-quality TV. It is There is no question customer is in our store we can describe the fea- hard to see the di erences between a $399 that qualifying the tures of the product, tell the story and explain it. 55-inch TV and a $1599 model online. customer today is Stinson: If consumers want a less complex Maloney: Our sales associates are very item they will go online. But when consumers knowledgeable. We provide them with more important than go to brick-and-mortar they go because they intensive training three or four times a year on ever, to ind out what are confused and afraid to make the wrong technology and product features. We explain they want and need. choice. Salespersons must guide confused to our customers why the same size TV is $499 consumers. Sometimes they can make an versus $1499. And we can match pricing from incorrect decision online. That’s why manu- Best Buy and Walmart as well as provide quick facturers still need strong brick-and-mortar delivery and installation. Online retailers can’t distribution, as well as online. For many match us based on service. We also do a lot customers this is a complex decision and of local advertising, internet ads and TV in our there is a lot of value for them to speak to an markets on a consistent basis. expert. As for our online sales, we work closely Stinson: The big di erence is services. Mass with higher-end brands that need to be online merchants focus on selection and price. We but do not want to undercut [pricing] for their focus on quality-curated products, services brick-and-mortar distribution. We want a and system design. We tend to focus [on healthy ecosystem, we want to perpetuate it customers] who are getting into a project and and are very concerned about it. will have labor attached to it. That is usually Ben Willis, executive merchandiser of Queen City Audio Video Appliances a higher-ticket sale involving products at the Q How do privately-held retailers and install- top end of a manufacturer’s line. Our customers contribute to their communities? ers appreciate getting the right product. Willis: Many studies indicate that plenty of While we take for granted the di erences dollars go back into local communities from between OLED versus QLED or 4K versus independent retailers. We think of ourselves non-4K TV, consumers struggle with it, versus If consumers want as a retailer with a conscience. We provide our career installers and salespeople who live a less complex item technology like TVs for local [charity] events. and breathe the technology. And we try to contribute to our local com- they will go online. munities and hire locally, especially since we Q Industry executive Joe Clayton once said But when consumers opened two stores in the past year. if a retailer understands the price, volume, go to brick-and-mor- Maloney: We do as much as we can to make mix and the consumers’ wants and needs, local charitable contributions, be involved you can pretty much give them what they tar they go because with the local Chambers of Commerce and get want. Is that still true? they are confused involved in city programs where our stores are Willis: There is no question that qualifying the and afraid to make located. Cowboy Maloney is built on relation- customer today is more important than ever, the wrong choice. ships. When it comes to recruiting and hiring, if to ind out what they want and need. We have we see a sales associate that shows real poten- to help determine what their expectations are. tial, we give them extra training and responsibil- A vast majority of consumers who are disap- ity to make sure they grow and continue to be pointed with their electronics don’t realize what better than the people down the street. they were buying. We need to help consum- Stinson: We have a great story based on ers make the right decision for their needs. our success in the industry and community Consumers are wary of making an incorrect involvement. One of our vendors gave us a decision, so sometimes they’ll make no deci- “career builder” award for training people sion. You need to be involved in a conversation who have left us yet remain in the industry to ind out what they expect and need. in key positions. Our company policy sup- Maloney: A lot of our customers want a face- ports non-proits in the performing arts for to-face meeting for our sales associates to show the public to get involved to experience Walt Stinson, CT Hall of Famer the di erences between the technologies we better sound in live music performances and co-founder of ListenUp sell. Millennials like to go to brick-and-mortar and support local musicians. We provide stores to see what they like and then order sound, video and overall tech support. It is online. The ironic thing is sometimes millen- important for local companies like ours to nials buy online and try to ask us to exchange remain healthy to provide good jobs and what they bought [from an online retailer] for tax bases for the communities we serve. something we have in our store. That happens more than you would think. Our big thing is that Steve Smith was the former editor-in-chief we can guarantee prices [on electronics] with of TWICE.

CTA.tech/i3 NOVEMBERDECEMBER 2018 59

i3_1118_58-59_BUSINESS_RetailStrategies_layout.indd 59 10/24/18 2:17 PM Business By Bobby Baumler

BY THE NUMBERS Residential 5G Broadband Brings Speed to Consumers

ollowing several years of testing and standards development, network providers will for the rst-time begin F oering consumers 5G wireless connectivity. While many use cases exist for 5G, including for edge computing, IoT devices, mobile devices, medical applications and self-driving cars; xed-wireless residential service is among the most impactful for consumers in the near term.

Broadband access is paramount for eco- will be underway and new internet nomic opportunity and consumers have providers may emerge. come to expect internet speeds good The technologies will vary by provider enough to simultaneously connect mul- with short, mid- and high-range millime- tiple devices for a variety of purposes, ter waves delivering high-speed access to such as streaming content, gaming or mobile and xed-wireless devices at basic internet searches. According to the speeds exceeding today’s typical xed- Federal Communication Commission’s line home broadband connection. To 2018 Broadband Deployment Report, deliver high speeds over limited range 90.8 percent of the U.S. population has spectrum, providers must install anten- access to 50 megabits per second nas at far closer range than traditional (Mbps)/5Mbps broadband connection cellular towers. Comparatively, 4G (though just 64 percent of the U.S. rural equipped cellular towers provide a range population). This means millions of of several miles, whereas 5G service is Americans are limited to either a zero or limited in many cases to several hundred a single broadband provider. feet. This requires the installation of Residential 5G service will increase antenna units on existing infrastructure both consumer access and competition including on lamp posts, telephone poles with low latency, high-speed wireless as well as indoor antennas in public data connections in the home. Earlier spaces like airports and sporting venues. this fall, Verizon launched its 5G resi- AT&T’s 5G service will initially be dential service with AT&T expected to deployed via mobile hotspot devices and begin mobile 5G service by year end. utilize a short-range millimeter wave while This will be followed by Sprint and delivering peak speeds of roughly 1 Gbps. T-Mobile launching offerings to con- Sprint’s 5G network incorporates MIMO sumers in early 2019. By 2020, it is (multiple input, multiple output) antennas estimated that full-scale deployment within the 2.5 GHz spectrum, which for both residential and mobile service allows for dual deployment of 4G and 5G

CTA’S SALES & FORECAST REPORT: 5G HOME GATEWAYS

$6 MILLION $295 MILLION $960 MILLION $1.61 BILLION $2.42 BILLION Expected wholesale Expected wholesale Expected wholesale Expected wholesale Expected wholesale revenue on 50,000 revenue on 2.4 million revenue on 8 million revenue on 14 million revenue on 22 million

units in 2018 units in 2019 units in 2020 units in 2021 units in 2022 Images James Teohart/Getty

60 NOVEMBERDECEMBER 2018 IT IS INNOVATION

i3_1118_60-61_BUSINESS_ByTheNumbers_layout.indd 60 10/24/18 2:14 PM Business

on the same equipment. T-Mobile’s net- 5G home gateways will ship in 2019, repre- work provides more widespread cover- senting $295 million in wholesale revenue. age compared to other major carriers by CTA By 2022, shipments will reach 22 million using 600 MHz spectrum, though initial units annually and more than $2.4 billion data speeds will only be 25-50 percent FORECASTS in annual wholesale revenue. Residential faster than existing 4G networks. 5G advances home internet connectivity Verizon’s residential 5G service utilizes a 2.4 MILLION into the next continuum, unlocking new xed-base gateway device and accesses choices for consumers at data speeds the network via high frequency millime- 5G HOME once thought to be impossible. ■ ter wave in the 28 GHz spectrum with initial data speeds of 300 Mbps and GATEWAYS WILL CES 2019 See how carriers and mobile peak speeds of roughly 1 Gbps. operators are transforming industries, As consumers begin to adopt residential SHIP IN 2019 2019 enabling everything from smarter 5G, many will choose to purchase a home homes and businesses to self-driving gateway device. CTA forecasts 2.4 million cars with 5G tech.

CTA.tech/i3 NOVEMBERDECEMBER 2018 61

i3_1118_60-61_BUSINESS_ByTheNumbers_layout.indd 61 10/24/18 2:14 PM Business By Steve Ewell

CT REPORTS using drones to augment coverage in regions with outages can help people Tech Helps Vulnerable connect to alerts. Social media solutions like the Facebook Crisis Populations in Need Response allows users to report themselves safe to their networks. urricanes in the Atlantic Ocean and Gulf of Mexico ● Power: When the power grid goes in the past few years have massively impacted the down, there are automated operating functions in place to keep systems, and H communities across those regions. When a disaster the devices connected to them, online. strikes, it often eects vulnerable populations like the elderly These include solar solutions like and people with disabilities the most. Consumer technologies GoalZero and WakaWaka. Generators can ensure that these populations receive the necessary ser- and battery systems also can help oset vices when catastrophic events do occur. periods of time without power. ● Transportation: Ridesharing services like Lyft and Uber can help augment public transportation when residents are trying to leave a disaster area. Also, this could be an opportunity for self-driving vehicles to help provide fleets of cars that can operate for long periods of time without suffer- ing the exhaustion of human drivers. ● Health Tech: One of the biggest impacts for seniors amid a disaster is losing access to medication or other medical services. Technology can provide medication reminders, health tracking, and alerts to inform individuals and their caregivers about issues before they reach a critical state. Many of these products and services After Hurricane Irma struck Florida in Support the that aid in the planning and response 2017, the country was shocked to learn CTA Foundation to a disaster will be at CES 2019. that eight seniors died in a nursing home However, there are still lots of oppor- when the air conditioning was cut o by Be recognized by the CTA Foundation at tunities for the technology community a blown transformer. When Hurricane CES 2019 and other events to provide innovations to serve these Maria struck Puerto Rico, many of the ● Be highlighted on the CTA Foundation groups. Recently Call for Code, a pro- islands deaths were seniors unable to website and in materials gram supported by IBM and other receive medical care. Recognizing the companies, issued a challenge to ● Receive opportunities to engage in dis- needs of the older inhabitants, FEMA cussions about these technologies at CES developers to create new solutions for has specic resources on ready.gov to and other events disaster response. serve this community. The CTA Foundation is excited to ● Receive opportunities to engage in spe- Consumer tech can play an active cial research or service projects see the continued emergence of these role in helping these communities plan types of technologies. Join us as we ● Gain access to sta subject matter and respond. A few technologies that help support the use of technology in experts and in the CTA Foundation network can help include: improving the lives of older adults and ● Ensure your resources make a true dier- ● Communications: Social connec- people with disabilities. Learn more at ence to communities in need tions and access to information are CTAFoundation.tech. two critical pieces to planning and Support us at SupportCTAF.org recovery. Many traditional forms of Follow us on Twitter @CTAFoundation, Facebook and LinkedIn. telecommunications like landline or CES 2019 The winners of the CTA cellular telephone systems are critical. Thank you for your support. Foundation’s Accessibility Contest will 2019

Innovations in mesh networks or be at Eureka Park. Images Coast Guard/Getty U.S.

62 NOVEMBERDECEMBER 2018 IT IS INNOVATION

i3_1118_62_BUSINESS_CT_Reports_layout.indd 62 10/24/18 2:12 PM By Steve Koenig Business

MARKET BEAT 5G – The Future is Now fter years of development and planning, A we’re nally hearing about the rst deployments of 5G technology in the U.S., but 2019 is when 5G initiatives really heat up. Therefore, CES 2019 will be a key focal point in the ongoing narrative of 5G deployment worldwide.

The dening characteristics of 5G include faster speed, greater capacity and lower latency compared to existing 4G LTE technology. 5G is a key require- ment to fully enabling emerging technologies like self-driving cars and smart cities. It also has the potential to revolutionize residential broadband and close (Waco, TX) urban areas. What’s signi- relative to the buzz around 5G — that the digital divide. cant is AT&T’s move represents the rst advancements to the existing 4G LTE Residential broadband today involves commercial implementation of a 3GPP- network will take place in tandem with buried cables and in some standards-based 5G NR 5G deployments. In fact, these upgrades cases ber to the home, but (New Radio) network in are an important stepping stone on the that may soon change. the U.S. The initial devices path to full 5G network connectivity. Verizon recently announced Verizon, to run on AT&T’s new 5G An example of what this looks like is Indianapolis as the fourth TMobile and network won’t be 5G AT&T’s 5G Evolution initiative happening U.S. city (in addition to Sprint have smartphones, they will be across many markets, which involves Houston, Los Angeles and announced 5G “pucks” that work like upgrading its 4G LTE network with LTE Sacramento) to receive its hotspots. Advanced features as a “runway” for full-on 5G home internet service intentions to That said, 5G smart- 5G wireless networks. LTE Advanced uses using “xed wireless” tech- form full-on phones are coming. We’re additional antennas and wider channels to nology (which promises 5G networks getting a view of the rst deliver faster speeds to more users. AT&T is speeds up to one gigabit ASAP. crop of 5G handsets through also rolling out LTE-LAA, which uses unli- per second) before year product announcements like censed spectrum to oer “gigabit-range” end. Fixed wireless broad- the Motorola Moto Z3 that speeds. Note: other carriers are working on band uses radio waves can become a 5G phone similar initiatives as precursors to standing (instead of cable, copper phone lines or with a special mod. And Sprint is working up their inaugural 5G networks (likely in ber) to deliver an internet connection with LG to deliver the rst 5G handset to 2019) in dierent U.S. markets. to households that receive the signal via the U.S. market in the rst half of 2019. Consumers can expect faster, better a “xed” antenna. In July 2018, CTA predicted that 2.1 mil- wireless service even before 5G becomes lion 5G handsets will ship in 2019, grow- available in their locality. It will take sev- What about Mobile Broadband? ing to more than 20 million in 2020. It eral years before 5G becomes ubiqui- Verizon, T-Mobile and Sprint have will be several years (2022 at the earliest) tous, but it will fuel the American announced intentions to form full-on 5G before 5G handsets represent the lion’s economy to shine ever brighter. networks ASAP. AT&T has been very share of the smartphone market. CES vocal about the debut of its 5G wireless 2019 will give us a better view of 5G CES 2019 CTA’s Research Summit at network in 12 U.S. cities representing a handsets and when they will be available. CES provides intelligence on the trends 2019

Linghe Zhao/Getty Images Linghe Zhao/Getty mix of larger (Atlanta) and smaller This leads us to an important point and technologies shaping the industry.

CTA.tech/i3 NOVEMBERDECEMBER 2018 63

i3_1118_63_BUSINESS_Marketbeat_layout.indd 63 10/24/18 2:10 PM Business

STATS AND FACTS 5G BENEFITS Flexibility • 5G-ready network core to enable lexible service delivery • Network capabilities delivered on demand for a large number of users and connections Speed • Higher speeds than 4G networks • Speeds upwards of 10Gbps, and an improved distribution of Understanding 5G high-speed connections Capacity and Its Features • Supports billions of applications and hundreds of billions of users and endpoints There’s been a lot of hype behind the benefits of 5G, but a • Extremely large number of always-on users per cell look at the numbers prove this next-gen network is destined for success. While only 2,100 5G wireless handsets will ship Latency in 2019, the next decade marks the technology’s grand • 1ms versus 4G networks' 10ms to support real-time control entrance. In 2020, shipments will skyrocket to 20,259 and and collaboration applications then 72,500 in 2021. Meanwhile, 4G use will go down from • Support large number of simultaneous low-latency applications 169,420 wireless handsets this year to 40,641 by 2022. Consumers will benefit from the upgrade, thanks to 5G’s E iciency improvements to the mobile network’s flexibility, speed, • Lower power consuption, 1/3 to 1/2 LTE-advanced (LTE-A) capacity, latency, efficiency and convergence. • Deliver signiicant improvements in battery life performance Convergence • Converged iber-wireless networks deliver e icient backhaul and access services • Enable connectivity in locations hard to reach via ixed line

ENHANCING LTE IS THE STARTING POINT FOR MOVING TO 5G KEY BENEFITS OF LTEA

Self-organizing networks

Faster download speeds

Supports spectrum diversity

Spectrum friendly technology

Improved performance at cell edge

Lower latency

WIRELESS HANDSET SHIPMENT FORECAST U.S. MARKET THOUSANDS

Forecast Year 2017 2018 2019 2020 2021 2022

CES 2019 4G Handsets 167,947 169,420 168,417 151,110 99,346 40,641 Learn about the latest 5G advances 5G Handsets - - 2,100 20,259 72,500 131,944 at CTA's Research Summit at CES. Source: CTA People Images/Getty Images Images/Getty People

64 NOVEMBERDECEMBER 2018 IT IS INNOVATION

i3_1118_64_BUSINESS_StatsAndFacts_layout.indd 64 10/24/18 2:09 PM i3_1118_C3-C4_AD_Freeman_Vox_Layout.indd 3 10/23/18 3:02 PM Innovation that’s right on track.

After more than 50 years navigating both OEM and dealership landscapes, VOXX is primed to spot exactly what drivers want today, and will demand tomorrow. Intelligent devices. Creative conveniences. Flexible, forward thinking integration. That’s how VOXX continues to deliver on those electronic extras that accelerate sales for the most prominent automotive brands in the world. Everywhere automotive security, connectivity and entertainment are in demand, VOXX is on it.

VOXX Corp Automotive v3.indd 1 12/6/17 4:34 PM i3_1118_C3-C4_AD_Freeman_Vox_Layout.indd 4 10/23/18 3:02 PM