The second fundamental change impacting third-wave product design is a new architecture. Given the ingredients of cloud technology, ubiquitous connectivity and sensing, a device-to-cloud architecture would seem right. Just capture the sensor data, upload to the cloud, and analyze. However, a device-to-cloud architecture (often called a cloud-oriented architecture) is the exception today, not the norm.
Computers used to look like computers. Of course, we saw an evolution of form factors from large mainframes to portable mobile devices, but this was a measured evolution with user interface paradigms anchored around screens and manual input methods (e.g. keyboard, touch, voice). If we transported a DEC VT100 terminal user from 1978 to the present day, they might be surprised by the vivid color and graphics of a laptop or touch screen computer, but they would instantly understand how to interact with it.
The Economist describes the current state of the Internet of Things (IoT) as a “quiet revolution” that is impacting both product and service firms across all sectors of the economy. Their 2013 survey found that 75% of companies were exploring uses and applications leveraging the IoT.
With the most conservative revenue estimate of the connected car market at 75 – 80 billion dollars in 2020, automakers’ IT and engineering departments are feeling a huge strain today to build out necessary capabilities in an efficient and scalable manner.