Minimum Viable Ecosystems: Finding Growth in a Quantified World

Jaideep Raje

Managing Consultant – EMEA, Lux Research

“Smarter Living” Track

June 16, 2015

The dawn of the Age of Self-Quantification

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Source: Stratos, ASID, SmartHome01

Personal and medical wearables

Smart home and intelligent buildings

The dawn of the Age of Self-Quantification: The crazy rest

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Ping, the social networking garment

Smarter Socks Plus+

Aurora Dream Inducing Headband

Peekiboo

Necomimi Brainwave Cat Ears

The desire for self-quantification stems from two fundamental consumer needs

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Transparency Autonomy

Self-quantified

Sustainability

Clean Label

Self-empowered

Self-promoted

Trust/ Product Claims

Today’s “toys” will stretch out into areas known and unexpected, but uniformly meaningful

The Slam Dunks

High-end athletics

Fitness buffs

Nutritionally aware/enlightened consumers

‘Pre’ people

Pre-hypertensive

Pre-hypercholesterolemic

Pre-obesity

Pre-diabetes

Health at Home

Aging in Place

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Traditional product thinking falls short of unlocking the “smarter living” growth opportunity

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Home parameters Food

Exercise Data

analytics Readout device/

controller

Appliances/Systems

Sensor Science

Regulation

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Home parameters Food

Exercise Data

analytics Readout device/

controller

Appliances/Systems

Sensor Science

Regulation

Traditional “product” thinking =

Cool gadgetry + Noisy data

Traditional product thinking falls short of unlocking the “smarter living” growth opportunity

Unlocking growth: A “smarter living” solution necessarily transcends product boundaries

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Appliances/Systems

Sensor Science

Regulation

Exercise

Home parameters Food

Data analytics

Readout device/ controller

Illustrative demand moment: Good morning!

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Components of this “solution” – minimum viable products – already exist as proofs of concept (1)

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Smart home

Smart lighting

Smart appliances

Sleep Number x12 bed

Components of this “solution” – minimum viable products – already exist as proofs of concept (2)

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Monitors blood flow, heart rate, tissue fluid levels, and body

movement, to calculate calorie intake as well as burning

Tracks liquid calorie intake Glucose sensing patch UC San Diego

Lactate sensing patch UC San Diego

Saliva-based hydration measurement devices

Carbon nanotube-based biosensors for point-of-care

diagnostics

CNT-based sensors for breath-based lung diagnostics

Components of this “solution” – minimum viable products – already exist as proofs of concept (2)

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Why do I (the consumer) need to do the hard work of envisioning this and integrating it?

Minimum Viable Ecosystem

= Integration of suitably-mature products that together satisfy

the right consumer need

Commercial entry strategy in a minimum viable ecosystem must look at the full solution

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Proof of concept Mass market readiness

1-3 years

1-3 years

0-1.5 years

Smart appliances 0-3 years

Wearable devices

“Sensor” science

0-3 years

5+ years

Summarizing our journey to sustainable growth in a Self-Quantified World

“Smarter living” is here to stay Proofs of concept are abundant but companies struggle to embrace an overarching vision Capturing growth within this vision of a minimum viable ecosystem will require very different strategic actions

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Lux Research Inc. 100 Franklin Street, 8th Floor Boston, MA 02110 USA Phone: +1 617 502 5300 Fax: +1 617 502 5301 www.luxresearchinc.com

Thank you

Jaideep Raje Managing Consultant – EMEA jaideep.raje@luxresearchinc.com +31 (06) 2762 3275