Ideation to Integration: Smart Glasses for Enterprise

IdeationtoIntegration:Smart
GlassesforEnterprise
TonySun
Analyst
May10,2016
Agenda
  Ideaorigin:Lookingforthenextsmartphone
  Evolutionofidea:Failureintheinitialmarket
  Executionofidea:Unexpectedsuccesselsewhere
2
Consumerelectronicdevicesevolved,displacing
incumbentsalongtheway
?
2010s
2000s
2020s?
Smartphones:U.S.sales2005-2016
60.
50.
USCensusBureau;CEA
Whatisthenext
smartphone?
40.
Value
30.
(billion$)
20.
2016*
2015*
2014*
2013
2012
2011
2010
2009
2008
2007
2006
0.
2005
10.
3
Googlelookstoanewformfactorasasolutionto
enablenewexperience
“[Usingsmartphones,]you'restandingrubbingthis
featurelesspieceofglass.Isthisthewaywewere
meanttouseourbodies?Youwantsomethingthatwill
freeyoureyes."SergeyBrin,Googleco-founder
“Ultimately,alotofyourexperiencescanmoveto
Glass.”LarryPage,Google(nowAlphabet)CEO
Takingpictures
Videocalls
Real-timeinformation
Creatingthenextsmartphoneisdifficult,butcanGoogledoit?
4
Agenda
  Ideaorigin:Lookingforthenextsmartphone
  Evolutionofidea:Failureintheinitialmarket
  Executionofidea:Unexpectedsuccesselsewhere
5
GooglereliesontheGlassExplorerprogramtofind
theusecasesfortheGlass
“Ithinkpartoftheanswer[whatisthebestuse
forGlass]isthatwedon’tknow….Ilovetaking
picturesofmykidswithGlass.Forme,thatis
enough.”LarryPage,Google(nowAlphabet)CEO
Announced
ProjectGlass
andGlass
Explorer
Apr2012
Started
shippingto
Explorers
Expanded
GlassExplorer
Mar2013
Nov2013
Availableforthe
publicpurchase
foroneday
Mar2014
Glass
Creative
Collective 6
Consumersdon’twantitbecausetherearesomany
underlyingproblemstobesolved
Humidity
Shortbatterylife
Announced
ProjectGlass
andGlass
Explorer
Started
shipping
Apr2012
“Getitout
sometimenext
year[2013].”
Overheating
ExpandedGlass
Explorer
Mar2013
“It'sprobablya
year-ishaway
[2014].”
Nov2013
Privacyconcerns
Highpricetag
Availableforthe
publicpurchase
foroneday
Closedthe
Explorer
Program
Jan2015
Mar2014
Stoppedsales
toindividual
customers
GoogleGlassfailedtomakeitswaytotheconsumers
7
Agenda
  Ideaorigin:Lookingforthenextsmartphone
  Evolutionofidea:Failureintheinitialmarket
  Executionofidea:Unexpectedsuccesselsewhere
8
TheGlassExplorerprogramseededabroadrangeof
enterpriseusecases
Announced
ProjectGlass
andGlass
Explorer
Apr2012
Started
shipping
ExpandedGlass
Explorer
Mar2013
Availablefor
publicpurchase
foroneday
Nov2013
Closedthe
Explorer
Program
Mar2014
Jan2015
Variousenterpriseusecases
Surgicaloperationat
WarehousingatDHL
DurhamRegionalHospital
CustomerserviceatHP
InspectionatRoger'sO'BrienConstruction
MaintenanceatLas
EmployeetrainingatKFCLawenforcementatLAPD QualitycontrolatBMW
VegasAirConditioning
9
Enterpriseshavelongbeenlookingforpropertools
toimproveefficiency
Abletosolvethecustomer’s
mistrustoveradditionalcharges;
leadto25%moreordersby
identifyingnewproblems.
MaintenanceatLas
VegasAirConditioning
Thetraditionaltwo-hour
documentationprocessnow
takesabout15minutes.
Patientexamination
atDignityHealth
Thetimeneededtopickoutan
itemandpackitforshippingis
reducedby25%.
Factories,
hospitals…
Cloud
?
Worker
WarehousingatDHL
10
GoogleGlassisnowpivotedtoEnterprise
Expanded
Glass
Explorer
Available
forthe
public
purchase
foroneday
Mar
2013
Nov
2013
Mar
2014
Announced
Project
Glassand
Glass
Explorer
Started
shipping
Apr
2012
Variousenterpriseusecases
Closed
the
Explorer
Program
Apr
2014
Launched
Glass-AtWork
Jun
2014
Announced
5partners
Oct
2014
Announced
5new
partners
Jan
2015
Dec
2015
Filed
Enterprise
Editionto
FCC
11
NotjustGoogleGlass,enterprisesmartglassesare
ontheirwaytowardsmassadoption
Smartglasses:Morethan50products
Announcedtorolloutsmartglasses
asstandardequipmentinoneplant
Pilottest:Wellabove70corporates
12
Takeaways
Versatilityisthekeyforaplatformtechnology.
Tofindthemarketforyourdisruptivedevices,youneedtoidentifydisruptiveuse
casesaswell.
Howyourproductevolvesisunpredictableanddoesnotnecessarilycomefrom
you,butyouneedtobepreparedwiththeindustryknowledgetoidentifythe
opportunities.
13
Thankyou
TonySun
Analyst
Tony.tianyi.sun@luxresearchinc.com
+1(857)702-3916
LuxResearchInc.100FranklinStreet,8thFloorUSAPhone:+16175025300Fax:+16175025301www.luxresearchinc.com