The hoi polloi are running fast towards the banner marked “Internet of Things“.   They are running at full speed chanting “I-o-T, I-o-T, I-o-T” all along the way. But for the most part, they are each running towards something different.  For some, it is a network of sensors; for others, it is a network of processors; for still others, it is a previously unconnected and unnetworked  embedded system but now connected and attached to a network;  some say it is any of those things connected to the cloud; and there are those who say it is simply renaming whatever they already have and including the descriptive marketing label “IoT” or “Internet of Things” on the box.

So what is it?  Why the excitement? And what can it do?

At its simplest, the Internet of Things is a collections of endpoints of some sort each of which has a sensor or a number of sensors, a processor, some memory and some sort of wireless connectivity.  The endpoints are then connected to a server – where “server” is defined in the broadest possible sense.  It could be a phone, a tablet, a laptop or desktop, a remote server farm or some combination of all of those (say, a phone that then talks to a server farm).  Along the transmission path, data collected from the sensors goes through increasingly higher levels of analysis and processing.  For instance, at the endpoint itself raw data may be displayed or averaged or corrected and then delivered to the server and then stored in the cloud.  Once in the cloud, data can be analyzed historically, compared with other similarly collected data, correlated to other related data or even unrelated data in an attempt to search for unexpected or heretofore unseen correlations.  Fully processed data can then be delivered back to the user in some meaningful way. Perhaps the processed data could be displayed as trend display or as a prescriptive suite of actions or recommendations.  And, of course, the fully analyzed data and its correlations could also be sold or otherwise used to target advertising or product or service recommendations.

There is a further enhancement to this collection of endpoints and associated data analysis processes described in my basic IoT system.  The ‘things’ on this Internet of Things could also use to the data it collects to improve itself.  This could include identifying missing data elements or sensor readings, bad timing assumptions or other ways to improve the capabilities of the overall system.  If the endpoints are reconfigurable either through programmable logic (like Field Programmable Gate Arrays) or through software updates then new hardware or software images could be distributed with enhancements (or, dare I say, bug fixes) throughout the system to provide it with new functionality.  This makes the IoT system both evolutionary and field upgradeable.  It extends the deployment lifetime of the device and could potentially extend the time in market at both the beginning and the end of the product life cycle. You could get to market earlier with limited functionality, introduce new features and enhancement post deployment and continue to add innovations when the product might ordinarily have been obsoleted.

Having defined an ideal IoT system, the question becomes how does one turn it into a business? The value of these IoT applications are based on the collection of data over time and the processing and interpretation (mining) of said data.  As more data are collected over time the value of the analysis increases (but likely asymptotically approaching some maximal value).  The data analysis could include information like:

• Your triathlon training plan is on track, you ought to taper the swim a bit and increase the running volume to 18 miles per week.
• The drive shaft on your car will fail in the next 1 to 6 weeks – how about I order one for you and set up an appointment at the dealership?
• If you keep eating the kind of food you have for the past 4 days, you will gain 15 pounds by Friday.

The above sample analysis is obviously from a variety of different products or systems but the idea is that by mining collected and historical data from you, and maybe even people ‘like’ you, certain conclusions may be drawn.

Since the analysis is continuous and the feedback unsynchronized to any specific event or time, the fees for these services would have to be subscription-based.  A small charge every month would deliver the analysis and prescriptive suggestions as and when needed.

This would suggest that when you a buy a car instead of an extended service contract that you pay for as a lump sum upfront, you pay, say, $5 per month and the IoT system is enabled on your car and your car will schedule service with a complete list of required parts and tasks exactly when and as needed.

Similarly in the health services sector, your IoT system collects all of your biometric data automatically, loads your activity data to Strava, alerts you to suspicious bodily and vital sign changes and perhaps even calls the doctor to set up your appointment.

The subscription fees should be low because they provide for efficiencies in the system that benefit both the subscriber and the service provider.  The car dealer orders the parts they need when they need them, reducing inventory, providing faster turnaround of cars, obviating the need for overnight storage of cars and payment for rentals.

Doctors see patients less often and then only when something is truly out of whack.

And on and on.

Certainly the possibility for tiered levels of subscription may make sense for some businesses.  There may be ‘free’ variants that provide limited but still useful information to the subscriber but at the cost of sharing their data for broader community analysis. Paid subscribers who share their data for use in broader community analysis may get reduced subscription rates. There are obvious many possible subscription models to investigate.

These described industry capabilities and direction facilitated by the Internet of Things are either pollyannaish or visionary.  It’s up to us to find out. But for now, what do you think?

On June 2, 2014, we released our first Android application to the Google Play store.  “Llama Detector” is a lifestyle app that gives end-users ability to detect the presence of llamas in social situations.  It affords the end-user greater comfort in their daily interactions by allowing them to quietly and quickly detect hidden llamas wherever they may be. It does this using the your platform’s on-device camera hardware and peripherals. This amazing and technologically advanced application is guaranteed to provide end-users with seconds or even minutes of amusement. This posting serves as the end-user documentation and FAQ listing.

Usage

Using the Llama Detector is simple and straight forward.  The application prioritizes use of the rear-facing camera on your device.   If the device has no rear-facing camera then the front-facing camera is used. If the device has no camera then you will need to ask the supposed llama directly if it is a llama or spend a few minutes carefully examining the suspected area for llamas.

Upon launching the application, point the camera at the item or region that you suspect to be llama-infested.  Depress the button labelled ‘Scan’ when you have successfully framed the area that needs to be analyzed. The image will be captured and the red scan line will traverse the screen and the detection process will begin.

If you decide against analysis after beginning the scan, for any reason, you may cancel the operation by depressing the ‘Cancel’ button. Otherwise, scanning will continue for approximately 10 seconds.  After scanning, the Llama Detector will indicate if any llamas have been detected. Sometimes other items are detected and Llama Detector is able to indicate what it has identified.

If you would like to alter the detection sensitivity of the application, you may do so through the application preferences.  Choose the preferences either through the soft button or menu bar.  Then, display the Llama Sensitivity Filter.  Enter an integer value between 1 and 1000 where 1000 is the highest sensitivity value (and 1 is lowest).  This will alter the detection algorithm characteristics. A higher value will make the results more accurate with fewer false positives.  The default value is 800.

FAQ

1. How much does this amazing application cost?

Llama Detector is an absolutely free download from the Google Play store.

2. Free? That’s crazy! How do you do that?

How do we do it? Volume.

3. What sort of personal information does Llama Detector collect?

Llama Detector collects no personal information and does not communicate with any external servers. It should be noted though that by downloading the application you have identified yourself as either a llama or a llama enthusiast.

4. I went to the zoo and used Llama Detector at the llama exhibit but it detected no llamas.  Why is that?

Llamas are very difficult to hold in captivity.  They tend to sneak out of their pens and hang out at the concession stands eating hot dogs and trying to pick-up women. For this reason, most zoos use camels or, in some cases, baby giraffes dressed up as llamas in the llama pens.  The Llama Detector application can be used to indicate if a zoo is engaged in this sort of duplicity.  For this reason, many zoos nationwide ban the use of Llama Detector within the confines of their property.

5. I used Llama Detector in my house and it detected a llama in my bathroom. Now I am afraid to use the bathroom.  What do I do?

Llamas are quite agile and fleet of foot.  It is important to note that detection of llamas should be run multiple times for surety.  If the presence of a llama is verified, start making lettuce noises and slowly move to an open space.  The llama will follow you to that space.  Then stop making the lettuce noises.  The llama will wonder where the lettuce went and start looking around the open space.  Then quickly and silently proceed into the now llama-free bathroom.

6. When will the iOS version be available?

Our team of expert programmers are hard at work developing a native iOS version of this application so that iPhone user can enjoy the comfort and protection afforded by this new technology. The team is currently considering whether to wait for the release of iOS 8 to ensure a richer user experience.

7. I have another question but I don’t know what it is.

Feel free to post your questions to android at formidableengineeringconsultants dot com.  If it’s a really good question, we’ll even answer it.

Back in 1992, after the Berlin Wall fell and communist states were toppled one after another, Francis Fukuyama authored and published a book entitled The End of History and The Last Man.  It received much press at the time for its bold and seemingly definitive statement (specifically that whole ‘end of history’ thing with the thesis that capitalist liberal democracy is that endpoint). The result was much press, discussion, discourse and theorizing and presumably a higher sales volume for a book that likely still graces many a bookshelf, binding still uncracked.  Now it’s my turn to be bold.

Here it is:

With the advent and popularization of the smartphone, we are now at the end of custom personal consumer hardware.

That’s it.  THE END OF HARDWARE.  Sure there will be form factor changes and maybe a few additional new hardware features but all of these changes will be incorporated in smartphone handsets as that platform.

Maybe I’m exaggerating – but only a little.  Really, there’s not much more room for hardware innovation in the smartphone platform and as it is currently deployed, it contains the building blocks of any custom personal consumer device. Efforts are clearly being directed at gadgets to replace those cell phones.  That might be smart watches, wearable computers, tablets or even phablets. But these are really just changes in form not function.  Much like the evolution of the PC, it appears that mobile hardware has reached the point where the added value of hardware has become incremental and less valuable.  The true innovation is in the manner in which software can be used to connect resources and increase the actual or perceived power that platform.

In the PC world, faster and faster microprocessors were of marginal utility to the great majority of end-users who merely used their PCs for reading email or doing PowerPoint.  Bloated applications (of the sort that the folks at Microsoft seem so pleased to develop and distribute) didn’t even benefit from faster processors as much as they did from cheaper memory and faster internet connections.  And now, we may be approaching that same place for mobile applications.  The value of some of these applications is becoming limited more by the availability of on-device resources like memory and faster internet connections through the cell provider rather than the actual hardware features of the handset.  Newer applications are more and more dependent on big data and other cloud-based resources.  The handset is merely a window into those data sets.  A presentation layer, if you will.  Other applications use the information collected locally from the device’s sensors and hardware peripherals (geographical location, speed, direction, scanned images, sounds, etc.) in concert with cloud-based big data to provide services, entertainment and utilities.

In addition, and more significantly, we are seeing developing smartphone applications that use the phone’s peripherals to directly interface to other local hardware (like PCs, projectors, RC toys,  headsets, etc.) to extend the functionality of those products.  Why buy a presentation remote when you get an app? Why buy a remote for your TV when you can get an app? Why buy a camera when you already have one on your phone? A compass? A flashlight? A GPS? An exercise monitor?

Any consumer-targeted handheld device need no longer develop an independent hardware platform.  You just develop an app to use the features of the handset that you need and deploy the app.  Perhaps additional special purpose sensor packs might be needed to augment the capabilities of the smartphone for specialized uses but any mass-market application can be fully realized using the handset as the existing base and few hours of coding.

And if you doubt that handset hardware development has plateaued  then consider the evolution of the Samsung Galaxy S3 to the Samsung Galaxy S4.  The key difference between the two devices is the processor capabilities and the camera resolution.  The bulk of the innovations are pure software related and could have been implemented as part of the Samsung Galaxy S3 itself without really modifying the hardware.  The differences between the iPhone 4s and the iPhone 5s were a faster processor, a better camera and a fingerprint sensor.  Judging from a completely unscientific survey of end-users that I know, the fingerprint sensor remains unused by most owners. An innovation that has no perceived value.

The economics of this thesis is clear.  If a consumer has already spent $600 or so on a smartphone and lives most of their life on it anyway and carries it with them everywhere, are you going to have better luck selling them a new gadget for $50-$250 (that they have to order, wait for learn how to use, get comfortable with and then carry around) or an app that they can buy for $2 and download and use in seconds – when they need it?

Everyone who is anyone loves bandying about the name of Clayton Christensen, the famed Professor of Business Administration at the Harvard Business School, who is regarded as one of the world’s top experts on innovation and growth and who is most famous for coining the term “disruptive innovation“. Briefly, the classical meaning of the term is as follows. A company, usually a large one, focuses on serving the high end, high margin part of their business and in doing so they provide an opening at the low end, low margin market segment.  This allows for small nimble, hungry innovators to get a foothold in the market by providing cheap but good enough products to the low end who are otherwise forsaken by the large company who is only willing to provide high priced, over-featured products.  These small innovators use their foothold to innovate further upmarket providing products of increasingly better functionality at lower cost that the Big Boys at the high end.  The Big Boys are happy with this because those lower margin products are a lot of effort for little payback and “The Market” rewards them handsomely for doing incremental innovation at the high end and maintaining high margins.  In the fullness of time, the little scrappy innovators disrupt the market with cheaper, better and more innovative solutions and products that catch up to and eclipse the offerings of the Big Boys, catching them off guard and the once large corporations, with their fat margins, become small meaningless boutique firms.  Thus the market is disrupted and the once regal and large companies, even though they followed all the appropriate rules dictated by “The Market”, falter and die.

Examples of this sort of evolution are many.  The Japanese automobile manufacturers used this sort of approach to disrupt the large American manufacturers in the 70s and 80s; the same with Minicomputers versus Mainframes and then PCs versus Minicomputers; to name but a few.  But when you think about it, sometimes disruption comes “from above”.  Consider the iPod.  Remember when Apple introduced their first music player?  They weren’t the first-to-market as there were literally tens of MP3 players available.  They certainly weren’t the cheapest as about 80% of the portable players had a price point well-below Apple’s $499 MSRP.  The iPod did have more features than most other players available and was in many ways more sophisticated – but $499?   This iPod was more expensive, more featured, higher priced, had more space on it for storage than anyone could ever imagine needing and had bigger margins than any other similar device on the market. And it was a huge hit.  (I personally think that the disruptive part was iTunes that made downloading music safe, legal and cheap at a time when the RIAA was making headlines by suing ordinary folks for thousands of dollars for illegal music downloads – but enough about me.)  From the iPod, Apple went on to innovate a few iPod variants, the iPhone and the iPad as well as incorporating some of the acquired knowledge into the Mac.

And now, I think, another similarly modeled innovation is upon us.  Consider Tesla Motors.  Starting with the now-discontinued Roadster – a super high end luxury 2 seater sport vehicle that was wholly impractical and basically a plaything for the 1%.  But it was a great platform to collect data and learn about batteries, charging, performance, efficiency, design, use and utility.  Then the Model S that, while still quite expensive, brought that price within reach of perhaps the 2% or even the 3%.   In Northern California, for instance, Tesla S cars populate the roadways seemingly with the regularity of VW Beetles.  Of course, part of what makes them seem so common is that their generic luxury car styling makes them nearly indistinguishable, at first glace, from a Lexus, Jaguar, Infiniti, Maserati, Mercedes Benz, BMW and the like. The choice of styling is perhaps yet another avenue of innovation.  Unlike, the Toyota Prius whose iconic design became a “vector” sending a message to even the casual observer about the driver and perhaps the driver’s social and environmental concerns.  The message of the Tesla’s generic luxury car design to the casual observer merely seems to be “I’m rich – but if you want to learn more about me – you better take a closer look”. Yet even attracting this small market segment, Tesla was able to announce profitability for the first time.

With their third generation vehicle, Tesla promises to reduce their selling price by 40% over the current Model S .  This would bring the base price to about $30,000 which is within the average selling price of new cars in the United States.  Even without the lower priced vehicle available, Tesla is being richly rewarded by The Market thanks to a good product (some might say great), some profitability, excellent and savvy PR and lots and lots of promise of a bright future.

But it is the iPod model all over again. Tesla is serving the high end and selling top-of-the-line technology.  They are developing their technology within a framework that is bound mostly by innovation and their ability to innovate and not by cost or selling price.  They are also acting in a segment of the market that is not really well-contested (high-end luxury electric cars).  This gives them freedom from the pressures of competition and schedules – which gives them an opportunity to get things right rather than rushing out ‘something’ to appease the market.  And with their success in that market, they are turning around and using what they have learned to figure out how to build the same thing (or a similar thing) cheaper and more efficiently to bring the experience to the masses (think: iPod to Nano to Shuffle).  They will also be able thusly to ease their way into competing at the lower end with the Nissan Leaf, Chevy Volt, the Fiat 500e and the like.

Maybe the pathway to innovation really is from the high-end down to mass production?

Let me start by being perfectly clear.  I don’t have Google Glass.  I’ve never seen a pair live.  I’ve never held or used the device.  So basically, I just have strong opinions based on what I have read and seen.  And, of course, the way I have understood what I have read and seen.  Sergei Brin recently did a TED talk about Google Glass during which, after sharing a glitzy, well-produced video commercial for the product, he maintained that they developed Google Glass because burying your head in a smartphone was rude and anti-social.  Presumably staring off into the projected images produced by Google Glass but still avoiding eye-contact and real human interaction is somehow less rude and less anti-social.  But let that alone for now.

The “what’s in it for me” of Google Glass is the illusion of intelligence (or at least the ability to instantly access facts), Internet-based real-time social sharing, real-time scrapbooking and interactive memo taking amongst other Dick Tracy-like functions.

What’s in it for Google is obvious.  At its heart, Google is an advertising company – well – more of an advertising distribution company.  They are a platform for serving up advertisements for all manner of products and services.  Their ads are more valuable if they can directly target people with ads for products or services at a time and place when the confluence of the advertisement and the reality yield a situation in which the person is almost compelled to purchase what is on offer because it is exactly what they want when they want it.  This level of targeting is enhanced when they know what you like (Google+, Google Photos (formerly Picasa)), how much money you have (Google Wallet), where you are (Android), what you already have (Google Shopping), what you may be thinking (GMail), who you are with (Android) and what your friends and neighbors have and think (all of the aforementioned).  Google Glass, by recording location data, images, registering your likes and other purchases can work to build and enhance such a personal database.  Even if you choose to anonymize yourself and force Google to de-personalize your data, their guesses may be less accurate but they will still know about you as a demographic group (male, aged 30-34, lives in zip code 95123, etc.) and perhaps general information based on your locale and places you visit and where you might be at any time.  So, I immediately see the value of Google Glass for Google and Google’s advertising customers but see less value in its everyday use by ordinary folks unless they seek to be perceived as cold, anti-social savants who may possibly be on the Autistic Spectrum.

I don’t want to predict that Google Glass will be a marketplace disaster but the value statement for it appears to be limited.  A lot of the capabilities touted for it are already on your smartphone or soon to be released for it.  There is talk of image scanning applications that immediately bring up information about whatever it is that you’re looking at.  Well, Google’s own Goggles is an existing platform for that and it works on a standard mobile phone.  In fact, all of the applications touted thus far for Google Glass rely on some sort of visual analysis or geolocation-based look-up that is equally applicable to anything with a camera. It seems to me that the “gotta have the latest gadget” gang will flock to Google Glass as they always do to these devices but appealing to the general public may be a more difficult task.  Who really wants to wear their phone on their face?  If the benefit of Google Glass is its wearability then maybe Apple’s much-rumored iWatch is a less intrusive and less nerdy looking alternative.  Maybe Apple still better understands what people really want when it comes to mobile connectivity.

Ultimately, Google Glass may be a blockbuster hit or just an interesting (but expensive) experiment.  We’ll find out by the end of the year.

In a previous post, I admitted to the fact that I was ignorant of or perhaps merely immune to the magic of the iPad.  Since that time, through a series of discussions with people who do get it I have come to understand the magic of the iPad and also why it holds no such power over me.  

Essentially, the iPad is a media consumption device.  It is for those who consume movies, videos, music, games, puzzles, newpapers, facebook, MySpace, magazines, You Tube and all of that stuff available on the web but do not have a requirement for lots of input (typing or otherwise).  You can tap out a few emails, register for a web site but, really, it’s not a platform for writing documents, developing presentations, writing code or working out problems and doing analysis.  That is unless you buy a few pricey accessories.

The pervasive (well, at least around here) iPad billboards really say it best.  They typically feature casually attired torsos reclining, with legs raised, bent at the knees to support the iPad.  These smartly but simply dressed users are lounging and passively consuming media.  They are not working.  They are not developing.  They are not even necessarily thinking.  They are simply happy (we think – even though no faces are visible) and drinking in the experience.  You are expected to (lightly) toss the iPad about after quickly reading an article, keep it on your night stand for those late night web-based fact checks, leave it on your coffee table to watch that old episode of Star Trek at your leisure or pack it in your folio to help while away the hours in waiting rooms and airports.

But this isn’t me. I am more of a developer.  Certainly of software, sometimes of content.  I like a full-sized (or near full-sized) real keyboard for typing.  If I need to check something late at night, my cell phone browser seems to do the trick just fine.  I can triage my email just fine on my cell phone, too.  So, I am not an iPad.  At least not yet.  But if it really is only a consumption platform then not ever.  But one never quite knows what those wizards in Cupertino might be conjuring up next, does one?

My world is about to change but I fully admit that I don’t get how. That’s right…everything changes this Saturday, April 3rd when the Apple iPad is released. Am I the only one who looks at it and thinks of those big button phones that one purchases for their aging parent? Yes, I know Steve Jobs found the English language lacking sufficiently meaningful superlatives to describe it. And, yes, I know there will be hundreds of pre-programmed Apple zombies lining the streets to collect their own personal iPad probably starting Friday evening. But, I don’t understand why I would want an oversized iPhone without the phone or the camera or application software or a keyboard and why and how this gadget will change civilization. Don’t get me wrong, I know it will. But I don’t see how the iPad will revolutionize, say, magazine sales. Why would I buy Esquire for $2.99 when I get the print version for less than $1 and throw it out after reading it for 30 minutes (full disclosure: I am a subscriber – I admit that freely)? I also know I can’t take the iPad to the beach to read a book because it will get wet, clotted with sand and the screen will be unreadable in sunlight. But, I’m sure the iPad will be a huge hit. And I’m sure my life will change. Just tell me how. Someone…..please….?