Ideation to Integration: Smart Glasses for Enterprise
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1 Ideation to Integration: Smart Glasses for Enterprise Tony Sun Analyst May 10, 2016
2 Agenda Idea origin: Looking for the next smartphone Evolution of idea: Failure in the initial market Execution of idea: Unexpected success elsewhere 2
3 Consumer electronic devices evolved, displacing incumbents along the way? 2000s 2010s 2020s? Value (billion $) Smartphones: U.S. sales US Census Bureau; CEA * 2015* 2016* What is the next smartphone? 3
4 Google looks to a new form factor as a solution to enable new experience [Using smartphones,] you're standing rubbing this featureless piece of glass. Is this the way we were meant to use our bodies? You want something that will free your eyes." Sergey Brin, Google co-founder Ultimately, a lot of your experiences can move to Glass. Larry Page, Google (now Alphabet) CEO Taking pictures Video calls Real-time information Creating the next smartphone is difficult, but can Google do it? 4
5 Agenda Idea origin: Looking for the next smartphone Evolution of idea: Failure in the initial market Execution of idea: Unexpected success elsewhere 5
6 Google relies on the Glass program to find the use cases for the Glass I think part of the answer [what is the best use for Glass] is that we don t know. I love taking pictures of my kids with Glass. For me, that is enough. Larry Page, Google (now Alphabet) CEO Announced Project Glass and Glass Started shipping to s Expanded Glass Available for the public purchase for one day Apr 2012 Mar 2013 Nov 2013 Mar 2014 Glass Creative Collective 6
7 Consumers don t want it because there are so many underlying problems to be solved Humidity Short battery life Overheating Privacy concerns High price tag Announced Project Glass and Glass Started shipping Expanded Glass Available for the public purchase for one day Closed the Program Apr 2012 Mar 2013 Nov 2013 Mar 2014 Jan 2015 Get it out sometime next year [2013]. It's probably a year-ish away [2014]. Stopped sales to individual customers Google Glass failed to make its way to the consumers 7
8 Agenda Idea origin: Looking for the next smartphone Evolution of idea: Failure in the initial market Execution of idea: Unexpected success elsewhere 8
9 The Glass program seeded a broad range of enterprise use cases Announced Project Glass and Glass Apr 2012 Started shipping Mar 2013 Expanded Glass Available for public purchase for one day Nov 2013 Mar 2014 Closed the Program Jan 2015 Various enterprise use cases Surgical operation at Warehousing at DHL Durham Regional Hospital Maintenance at Las Vegas Air Conditioning Customer service at HP Inspection at Roger'sO'Brien Construction Employee training at KFC Law enforcement at LAPD Quality control at BMW 9
10 Enterprises have long been looking for proper tools to improve efficiency Able to solve the customer s mistrust over additional charges; lead to 25% more orders by identifying new problems. Maintenance at Las Vegas Air Conditioning The traditional two-hour documentation process now takes about 15 minutes. Patient examination at Dignity Health The time needed to pick out an item and pack it for shipping is reduced by 25%. Factories, hospitals Cloud? Worker Warehousing at DHL 10
11 Google Glass is now pivoted to Enterprise Announced Project Glass and Glass Apr 2012 Started shipping Expanded Glass Available for the public purchase for one day Mar 2013 Nov 2013 Mar 2014 Various enterprise use cases Closed the Program Apr 2014 Launched Glass-AtWork Jun 2014 Announced 5 partners Oct 2014 Announced 5 new partners Jan 2015 Dec 2015 Filed Enterprise Edition to FCC 11
12 Not just Google Glass, enterprise smart glasses are on their way towards mass adoption Smart glasses: More than 50 products Announced to roll out smart glasses as standard equipment in one plant Pilot test: Well above 70 corporates 12
13 Takeaways Versatility is the key for a platform technology. To find the market for your disruptive devices, you need to identify disruptive use cases as well. How your product evolves is unpredictable and does not necessarily come from you, but you need to be prepared with the industry knowledge to identify the opportunities. 13
14 Thank you Tony Sun Analyst +1(857) Lux Research Inc. 100 Franklin Street, 8th Floor USA Phone: Fax:
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