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The Internet has disrupted almost every industry on earth in the past 25 years. Now, smart products, embedded with sensors and mechanisms that link them through the Internet, are turning the physical world into an information system.
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THE FUTURE IS NOW SOFTWARE-ENABLED INNOVATIONThe Internet has disrupted almost every industry on earth in the past 25 years. Now, smart products, embedded with sensors and mechanisms that link them through the Internet, are turning the physical world into an information system. This new wave of innovation connects everything, from homes to Happy MealsTM. Manufacturers must adapt to this ex-plosion of software, or risk losing competitive advantage.
This wave of software-enabled products offers:
1 TRILLION
100 MILLION
8 BILLION
FIRST BROWSER APP LAUNCHES
THE WORLD WIDE WEB
WAS BORN
THE EMERGENCE OF SMART DEVICES
THE GROWTH OF THE INTERNET OF THINGS
VALUE FOR MANUFACTURERS
Emergence of Smart, Connected Products
There are good reasons to up the ante on software engineering beyond designing for customer demand:
Excellence in embedded software development has led to:
By improving capabilities around embedded systems development, several companies have improved time to market by 30-40%.
A PRODUCT DEVELOPMENT APPROACH
FASTER TIME-TO-MARKET MARKET-WINNING PRODUCTS
HIGHER PROFIT MARGIN REDUCED DEVELOPMENT TIME
DEMAND FOR SMARTER PRODUCTS
CONVENIENCE CONNECTIVITY
FUNCTIONALITY ENTERTAINMENT
93% Agreed that controlling the home remotely will have a
positive impact on the quality of their daily lives.
Believe Wi-Fi connectivity will be an important purchase
consideration when they replace house-hold items.
77%
Expect that within 10 years the majority of devices or appli-
ances they purchase will include smart technology.
63% Think it’s important for their passengers to surf the internet
via a monitor in the car. 57%
Respondents in a recent survey demonstrate that there is a surge of consumer interest in smart products:
Consumer preferences and product innovation will continue to create a smarter future.
Self-driving cars will significantly improve transportation safety.
By 2018, the ‘smart home’ industry will reach $71B.
Data-driven planting could help improve the average corn harvest and generate an extra $182 an acre in revenue for farmers.
SMARTER CARS SMARTER HOME SMARTER AGRICULTURE
NO INCREMENTAL MANUFACTURING COSTS PER UNIT
$ $ $ $UPDATES
UPDATES ENABLE NEW FEATURES & REPAIR DEFECTS
69% of companies that leverage soft-ware development effectively outperform their competitors.
Best-in class performers have been able to reduce product cost by 7%; profit margin increased 2.1 times their competitors.
SUCCESS HAS BECOME SOFTWARE DRIVEN For more info on how to plug into innovation, go to: www.ptc.com/topics/software-intensive-products
Software-driven innovation is at the heart of this growth, and this means rethinking how product development gets done. How will you lead the transformation to create smarter products?
Mobile phone platform development time dropped 42%, from 33 months to 19 months.
Closed Loop Lifecycle Management
Servi
ce
Operate
Manufacture
Requirements Verify
Architect Validate
Implement
© 2014, PTC Inc. (PTC). All rights reserved.
This demand for smarter products has created:
The increase of embedded software has contributed to:
164.5 Million 489.9 Million
2018
2012
5.2 Million
10.5 Million
Lines of Code
Luxury Car (20 Million for the navigation system)
Android Phone
Boeing 787
F-22 Raptor Jet
100Million
12Million
6.5Million
1.7Million
Growth of Public Wi-Fi HotspotsGrowth of Cellular Connections for M2M Communication
AN EXPLOSION OF SOFTWARE AND NETWORKS
Sources:http://www.mckinsey.com/insights/business_technology/disruptive_technologieshttp://venturebeat.com/2014/02/11/study-the-smart-home-industry-will-double-in-size-by-2018-reaching-71b/http://online.wsj.com/news/articles/SB10001424052702304450904579369283869192124?mg=reno64-wsjhttp://finance.yahoo.com/news/wi-fi-connectivity-increases-purchase-130000250.htmlhttp://www.accenture.com/us-en/landing-pages/products/Documents/ivi/Accenture-Connected-Vehicle-Survey-Global.pdf#zoom=50http://www.informationisbeautiful.net/visualizations/million-lines-of-code/http://www.berginsight.com/ShowReport.aspx?m_m=3&Id=169 http://www.wballiance.com/resource-center/wba-industry-report/ http://geography.about.com/od/obtainpopulationdata/a/worldpopulation.htmhttp://www.internetsociety.org/history?gclid=CILNmubylb8CFabm7AodxzkA7Qhttp://thenextweb.com/insider/2011/08/06/20-years-ago-today-the-world-wide-web-opened-to-the-public/http://www.sprint.com/companyinfo/history/Harald Bauer & Ondrej Burkacky, When Software Meets Hardware: Excellence in embedded software development, Mckinsey & Company https://www.ibm.com/smarterplanet/global/files/se__sv_se__products__the_software_edge__.pdfMichelle Bouchar & Kelly-Rand, Embedded Software, Aberdeen Group