Harbor Currents Archive
 
 2004.05.06 Issue 16

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Conferences, Summits, Meetings & Shows

Stay tuned for future events
We’re planning some exciting conferences and executive summits on the M2M / Pervasive Internet phenomenon. News will be posted in future issues of Currents.



Profile your company

Technology suppliers: We want you in our Knowledge Base
If your company has anything to do with Internet-enabled devices or M2M (from sensors to services), we want your full profile in the Knowledge Base that drives our online SmartSphere® projects on M2M and the Pervasive Internet (PDF, 224 KB). In addition to our regular subscribers, nearly 700 business and high-tech journalists have full access to this ever-growing relational database of companies, products and events.

There is no cost to your company, but we do need your help. Please download our company profiling form—a Microsoft Word document with fields that you can easily fill out on screen. Complete the form and email it to us to start the process. We’ll follow up for additional information, if needed. When complete, we’ll send you an attractive PDF file of your profile that you can use for your own purposes.

Of course, your PDF-based profile will be a static document. But users of our online SmartSphere® projects will see your company and its information dynamically—as part of graphical sector and venue maps, and in auto-generated links to other records in the database, such as other companies and ongoing events related to you and your products or services.



Profile your company

Suppliers and Adopters: We want your Press Releases
If your company emails press releases about Pervasive-related events, put us on your list at pr@harborresearch.com. We’ll include your announcements in the events-tracking of our SmartSphere® projects, linked to a databased profile of your organization. (You can help us create a good profile by filling out our company profiling form.)



Contact us

Our free white papers reflect both our research activities and our consulting.

“Think Smart, Think Connected: Maintaining Competitive Advantage in an Open, Connected Landscape” (August, 2003)
EU Corporate Leaders Meet in Paris to Discuss New Business Opportunities of a Connected World. PDF format, 220 KB.

“Let the Circle Be Unbroken: How Device Networking / M2M and the Internet Will Automate the Global Enterprise” (July, 2003)
Direct and easy to understand, this paper is an excellent introduction to the Pervasive Internet and the many ways in which wired and wireless device communication will completely automate global business. PDF format, 392 KB.


“Core Network Providers: Can They Escape the Commoditization Spiral?” (June 2003)
Today, core connectivity providers are in a declining-profit commodity business and suffocating under mountains of dot-com build-out debt. Meanwhile, a vast source of future growth and revenue—device networking / M2M—lies just outside their human-centric blinders, along with the chance to adopt a truly 21st century business model: that of the enterprise-automation “infotributor.” PDF format, 740 KB.


“The ‘Always On’ Pervasive Internet: Why Broadband Means More Than Bits” (January, 2002)
The buzz about broadband always emphasizes bandwidth and human-centric applications such as video-on-demand or voice-over-IP. But for the device-centric Pervasive Internet, broadband’s virtue is not its bandwidth but the fact that it’s “always on.” PDF format, 180 KB.


“Catalytic Strategy: Hasten Change, Shape Your Industry” (January, 2002)
In chemistry, a catalyst is an agent that speeds up the reaction that produces a desired compound.

In high-tech business, the relentless rapid change can be unnerving, but trying to resist it will only get you hurt. In fact, it’s often a good idea to speed it up—and then use the resulting disruption and momentum to your advantage. To do so, find a way to become a catalyst yourself, or find a business ally to be a catalyst for you. PDF format, 180 KB.



Contact us

Our popular Pervasive Internet diagrams are vector-based PDF files that look great at any screen size or printer resolution.

The “Device ISP” Opportunity
Major connectivity providers have made some device-centric strides, but we’re still living in “The Telephone Age.” A huge M2M / Pervasive Internet opportunity exists for those who “own the wire” or control a piece of wireless spectrum. (This diagram is also featured in this issue of “Currents.”)

M2M Ecosystems

Click here to download the Device ISP PDF (400 KB).


M2M Ecosystems
Potential M2M adopters are looking for a bridge across the chasm between technology innovation and real-world business value. Only full supplier ecosystems can build that bridge. This diagram uses Harbor’s SIGNALSmart™ framework to show what’s needed, and what adopters do—and do not—care about.

M2M Ecosystems

Click here to download the M2M Ecosystems PDF (70 KB) .


M2M Market Landscape
Distribution of Pervasive Internet / M2M players in terms of product / services mix and scope of solution, circa March 2004. This diagram is not intended to portray every active player, nor is it etched in stone. Company position is constantly evolving.

M2M Market Landscape

Click here to download the M2M Market Landscape PDF (125 KB) .


SIGNALSmart™ Technology Framework
The Pervasive Internet begins with data generated by intelligent devices. It ends with the smart Web services that automate and optimize manufacturing, marketing, business logistics, supply chain, and customer service. In between, many complex, interoperable technologies must come into play.


We created our SIGNALSmart™ Framework to provide a clear portrait of this technology path, along with terminology and examples for suppliers and adopters alike.

Click here to download our 2-page SIGNALSmart™ Framework diagram (PDF, 368 KB).


Pervasive Internet Venue Map
Now you can see the entire Pervasive Internet laid out on a single page—segmented by market, service opportunities, and example devices.

Click here to download our Pervasive Internet Venue Map.


Device Networking Hierarchy
Some Internet-connected devices are mobile, others are stationary. Some, like PDAs and mobile phones, deliver full value only when given complete human attention. “Pure” Pervasive Internet devices get no direct human attention at all.

In this diagram, we place devices along the “human-centric” / “device-centric” continuum, give examples of each type, and suggest deployment figures for 2005.

Click here to download our Device Networking Hierarchy diagram.



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Why Currents?
Our title means many things
Invisible forces running through water. Electricity running through wires. The many wireless signals in the air all around us. And all the things (“current events”) that are happening right now.

“Currents” was also the title of a publication series we did some years ago. There was no Web when we started it. Very few of our subscribers even had email. Today we have better ways to share our thoughts and news. But in casting about for a newsletter title, nothing sounded better than our own legacy, so “Currents” is back.

And there’s one other reason: Mark Twain.

The passenger who could not read it was charmed with a peculiar sort of faint dimple on [the river’s] surface, but to the pilot that was an italicized passage ... for it meant that a wreck or rock was buried there that could tear the life out of the strongest vessel that ever floated. In truth, the passengers who could not read this book saw nothing but pretty pictures in it, whereas to the trained eye these were not pictures at all, but the most earnest of reading matter.
—Life on the Mississippi

Anyone can see the ripples on the surface of the water. The expert eye reads the currents beneath.

 



 
Think Pervasive

Approaching Zero Downtime: Machine Prognostics

So far, the marvels of computing have taken place on the computer’s terms, thanks to the amazing adaptability of human beings. In the M2M / Pervasive Internet era, IT will have to grow up and live in the real world by itself.

It won’t be easy, but it will bring enormous rewards. One example: Machines that watch out for themselves rather than failing and taking your profits with them.

Download this essay in printable PDF format (104 KB).

Overview

  • The Goal: Near-zero-downtime for manufacturing, mining, farming, service, etc. equipment and processes.

  • The Means: Modeling optimum machine performance and monitoring real-world performance degradation, using sensor data already available (but underutilized) on most state-of-the-art equipment. Developing software systems to share this information over networks. Using the networked devices to schedule predictive maintenance before failure occurs. Ultimately, creating machines that learn, self-optimize, and even repair themselves.

  • The Players: A university-industry partnership called The Center for Intelligent Maintenance Systems (IMS), consisting of The University of Wisconsin at Milwaukee and The University of Michigan, along with more than 40 corporate members and sponsors, including GM, Rockwell Automation, Harley-Davidson, Hitachi (Japan), Intel, ITRI (Taiwan), KONE Elevators (Finland), Questra, Siebel, United Technologies, Xerox, and others.

  • The Gains: An estimated $35B per year savings across the US economy, not to mention incalculable growth opportunities in smart services.

Computing in the Real World
Marvin Minsky, one of the fathers of artificial intelligence, likes to say that we can make a computer capable of beating the reigning genius of chess, but we can’t make a robot capable of walking across the street as well as any normal two-year-old child.

Why? The real world is not a strictly regulated, closed system like a chess game. Sensing a player’s moves on a wired chessboard and responding quickly and intelligently is one thing. Sensing and physically responding to reality—stones, curbs, potholes, pedestrians, oncoming cars—is quite another.

Not long ago, the booming AI industry collapsed—taking with it many worthy businesses founded by serious scientists, such as Danny Hillis’s Thinking Machines—largely because it was unable to meet the unrealistic public and investor expectations generated by non-real-world computing triumphs like those of IBM’s “Deep Blue” chess-playing machine.

The Evolution of Product, Manufacturing, and Quality Goals as Automation Has Matured
IMS table
Smart machines and products, increasing business automation, and next-generation e-services are intertwined phenomena.
(Click the image for a larger on-screen version.)
Source: Center for Intelligent Maintenance Systems (IMS)

Digital computing has radically transformed human affairs, but so far that transformation has taken place entirely on the computer’s terms. Computing’s many marvels have occurred in rigidly regulated systems to which human beings have adapted. With people as its focus and its crutch, IT has managed to float blissfully above the profound messiness of reality.

Today, if you want the benefits of computing, you sit down at a computer. Once at the computer, you do things the way the computer expects them to be done. If your hardware and software are decently designed, the experience feels relatively “natural” after a while—but only because you, the amazingly adaptable human being, have adapted to it.

To this day, IT has been something like a baby in diapers—cared for by people, coddled by people, tolerated by people. And rather astonishingly, most people don’t expect IT to get out of its diapers. They expect it to get cheaper, faster, and perhaps more entertaining, but they don’t expect it to grow up.

Academics and Entrepreneurs
Thus the promise of the M2M / Pervasive Internet era—i.e., billions of smart devices sharing their real-world, real-time data and controlling each other on a global network—has often been greeted with the kind of cynicism that killed its sexier predecessor, AI.

Even without AI’s massive self-hype, pervasive technologies face overt hostilities from various quarters (labor unions, misguided privacy protectors, misinformed members of the public and their elected representatives), as well as the standards battles being waged by private-sector companies who want the next era of computing to be based upon their proprietary technologies. The editor of a leading magazine for the “digerati” recently said, in a private conversation, “We’ve been hearing for years about the day when any electronic device will be able to talk to any other device. When is it actually going to happen?”

The dot-com crash caused investors to treat Internet technologies like the plague, but the people who actually understand and create high-tech innovation knew better. They knew that the crash was merely a speed-bump in an unstoppable journey. To continue innovating, and especially to “cross the chasm” between innovation and real-world impact, they had to find sources of greater sanity and support than a fickle investment community obsessed with quarterly reports.

In the years since the crash, academic / industry cooperation has proven to be indispensible. One excellent example is MIT’s Auto-ID Center, which was founded with the mission of building “an Internet of things.” The Center gathered over 100 corporate sponsors and delegates, created the Electronic Product Code (EPC™—now widely accepted as the successor to the barcode), and specified numerous proposed standards and industry milestones that have greatly advanced the commercialization of RFID technology. (Its work completed, the Auto-ID Center officially closed on October 26, 2003, transferring its technology to EPCglobal. Its university labs continue to exist as Auto-ID Labs.)

IMS and Automated “Machine Health”
The Center for Intelligent Machine Maintenance (IMS), headquartered at the University of Wisconsin at Milwaukee, is another example of academic researchers and scientists joining with industry stakeholders to create a future that everyone wants. IMS is a National Science Foundation Industry / University Cooperative Research Center whose industry members contribute cash or in-kind donations of technology, equipment, and expertise that enable the Center to create the research environment, industrial testbeds, and standardized software tools that will make automated “machine health” a reality.

When smart machines are networked and remotely monitored, and when their data is modeled and continually analyzed with sophisticated systems, it is possible to go beyond mere “predictive maintenance” to true machine “prognostics”—the process of pinpointing exactly which components of a machine are likely to fail, and when.

IMS’s mission is to achieve near-zero-downtime of industrial machinery. When the “health” of machinery is almost perfectly visible, a business can plan intelligently rather than being blindsided by failure. If a machine is about to fail, a sibling machine’s output might be accelerated (even automatically) to compensate for it, or another machine’s output might be slowed down, or the delivery of raw goods to the failing machine might be postponed. Whatever the case, knowledge becomes the power to optimize processes, save significant amounts of money, and achieve across-the-board “business automation.”

Seeing Failure Before it Occurs
Most machine maintenance today is either purely reactive (fixing or replacing equipment after it fails) or blindly proactive (assuming a certain level of performance degradation, with no input from the machinery itself, and servicing equipment on a routine schedule whether service is actually needed or not). Both scenarios are extremely wasteful.

To human beings, it often seems that machines fail suddenly, but in fact machines usually go through a measurable process of degradation before they fail. Today, that degradation is largely invisible to human users, even though a great deal of technology has been developed that could make such information visible.

Most state-of-the-art manufacturing, mining, farming, and service machines (e.g., elevators) are already quite “smart,” containing many sophisticated sensors and computerized components capable of delivering data about a machine’s status and performance.

The problem is that little or no practical use is made of most of this data. We have the smart devices, but we do not have a continuous and seamless flow of information throughout entire processes. Sometimes this is because the available data are not rendered in useable form. More often, no infrastructure exists for delivering the data over a network, or for managing and analyzing the data even if the devices were networked.

IMS’s leadership and industry partners are creating consensus and developing technologies that will make that continuous and seamless information-flow possible, and save industry literally billions of dollars in downtime-related costs. For example, in most production equipment or systems, different sensors measure different aspects of the same physical phenomena. In much the way that human “stereo” vision gives us depth perception, or multiple 2D perspectives can be combined into a 3D view, IMS is working on techniques for “sensor fusion” that will combine currently incompatible data from a variety of sensors to model a useable, holistic image of the actual state of a machine component.

Jay Lee and Jun Ni, the Co-Directors of IMS, recently estimated that the application of the “business automation” techniques and procedures being developed by their organization could result in a $35B annual savings across the US economy1, broken down as follows:

  • Spare parts inventory reduction: $6B annually

  • Improved resources scheduling: $9B annually

  • Enhanced logistics and supply chain: $15B annually

  • Equipment uptime improvement: $5B annually

Turning Manufacturers into Service Providers
Bear in mind, however, that the Pervasive Internet’s vast power and reach is barely suggested by those numbers. Savings related to better machine uptime and supply chain visibility are only the beginning of the story. When a manufacturer is able to monitor its equipment remotely, and offer intelligent service plans based upon the real-world status of machines, the manufacturer is in a position to sell not merely equipment but a full business solution based upon that equipment—a solution that amounts to true, across-the-board “business automation.”

This will be of particular interest to OEMs that find themselves increasingly “disintermediated” from their ultimate customers. An OEM that stays connected to a customer for the life of a product can provide solutions-packages that might include not only smart maintenance scheduling but also vastly more intelligent, targeted marketing, as well as offers (from the company itself, or from partners) of data-warehousing and management services, upgrades, third-party merchandise, business expertise, and so on.

Even makers of commercial equipment (typically not as disintermediated as OEMs of retail products) stand to benefit greatly from the Pervasive Internet work being done at IMS. For example, KONE Corporation, one of IMS’s member companies, is the world’s fourth-largest manufacturer of elevators, escalators, and autowalks. Yet 60% of KONE’s revenue comes from maintenance and modernization of its machines, as well as maintenance of automatic building doors from other manufacturers. Despite its manufacturing, the company calls itself a service business.2 Because KONE has had the foresight to position itself as a leading service provider in its market, the machine prognostics of IMS will gracefully blend with KONE’s existing business model and serve to improve that model and enhance the company’s profitability.

Conclusion
To participate in such savings, efficiencies, and new growth opportunities, companies need to understand and act upon the opportunities now. Beyond the technology itself, the Pervasive Internet is about forging new alliances and doing business in a new way. Driven by innovative collaborations like IMS and the Auto-ID Center, and with the additional impetus of new social drivers like homeland security, the technical “plumbing” issues of global device networking—and the applications for true enterprise automation—will see remarkable advances in the next calendar year.

Members of research and development partnerships like IMS will have earliest access to full solutions, and this will provide an important advantage. Early adopters will create significant barriers to latecomers. Yes, the tools of device networking and Web-based business services will be commonly available soon. So why not wait? Well, a crucial differentiator will be the imagination, creativity, and efficiency with which companies use the capabilities engendered by global device networking: automated asset management, supply-chain management, customer-relationship management, and so on. Intelligent use of these new capabilities will take time to plan. Often, it will involve significant re-structuring of business processes, business models, and business alliances. Potential adopters who are waiting on the sidelines for the M2M phenomenon to “shake out” or “get safe” will find themselves playing a game of catch-up that may be impossible to win.

The Pervasive Internet is nothing less than the next great era of digital technology. It marks a distinct divide between 20th century business and 21st century business, and its opportunities will literally dwarf those of the PC and dot-com eras. Right now, foresighted companies are hammering out the technological and business details of supply and adoption. If your company is not among them, your competitors are stepping into the future without you, and that may well cost you your chance for 21st century global market leadership.

NOTES
1 Telephone interview with Dr. Jay Lee of the Center for Intelligent Maintenance Systems (IMS).

2 KONE Web site.

Download the above essay in printable PDF format (104 KB).

Harbor Research welcomes your feedback. Send it to feedback@harborresearch.com.



SmartSphere Living Business Intelligence

Your secret weapon has arrived. Announcing a totally new kind of business research experience.

Harbor’s new online platform for research services offers continually updated intelligence and stunning data-visualization.

Static, printed reports can’t track the complex ecosystems and warp-speed pace of high tech. SmartSphere® projects can.

The brains of the Web. The brawn of server databases. The beauty of a CD-ROM.
For nearly ten years, we’ve been waiting for Web media to get good enough to let us do this. It’s finally here. Harbor SmartSphere® re-invents the whole concept of delivering research value. It’s to business research what the Pervasive Internet will be to business itself: a huge injection of dynamic intelligence and sheer voltage. SmartSphere® is online, interactive, dynamic, and visualized. There’s nothing static, rigid, or dead about it. Eventually, we at Harbor will do everything in SmartSphere® that we used to do on paper, and we’ll do it better. And you can, too. in a custom-configured project of your own, SmartSphere® can be anything you want it to be.

And yes, you can get printed reports. We’ve re-invented those, too. Not fixed, one-size-fits-all printed reports, but custom printed reports that you configure and SmartSphere® creates for you on the fly in PDF format.

See SmartSphere® and find out more right now:

  1. Visit our free, live SmartSphere® demonstrations. They say pictures are worth a thousand words. What are they worth if they’re pictures of your whole world, and you can fly around inside the pictures with your mouse?
  2. Download a brochure on the SmartSphere® research platform and services (PDF, 970 KB).
  3. Download a brochure about our SmartSphere® “living research” projects on the M2M/Pervasive Internet phenomenon (PDF, 240 KB).
Pervasive Internet Study

A small portion of an interactive Harbor SphereMap™. This one portrays a company’s world. You “fly around” the map by dragging it with your mouse, bringing into focus any area you want to explore. You see a company’s peers, investors, products, and alliance-structure at a glance. Clicking nodes fetches additional information from the database. Shift-clicking nodes creates new maps of other companies—and maps of markets, too.

Projects, projects, projects. Ours, and yours.
SmartSphere® is an online platform that Harbor uses to deliver Web-based services. You don’t buy SmartSphere® the way you buy a program for your computer. You buy access to one or more SmartSphere® projects. We define projects of our own on important high-tech subjects, and clients can subscribe to those projects. Clients can also define their own custom (and completely private) projects.

SmartSphere® projects are laser-focused on their subjects. No waste, no fluff, no irrelevance. A SmartSphere® project delivers continually updated information on whatever the project has been defined to track. Some of that information is created in the good old-fashioned way, by experienced researchers and analysts. And some of it is created with 21st century tools like automated news feeds and Web-based info services. Every time you log in to a project, there’s new information—freshly tracked events, new company alliances, new company and market comparisons, enhanced company, market, and technology profiles, and insightful Harbor commentary and analysis.

When you visit our SmartSphere® demonstration, you’ll see a limited version of our own “Pervasive Internet Suppliers” project. Bear in mind that the free demo offers limited information and functionality. The full “Pervasive Internet Suppliers” project, for example, was created to replace and improve our own earlier online publication, Pervasive Internet Report.

Custom SmartSphere® projects. Your secret weapon has arrived.
You’ve heard about some of our SmartSphere® projects. Now let’s talk about yours. Does your company have business development, M&A, R&D, or sales and marketing goals? We hope the answer is yes. How would you like “living business intelligence”™ on the companies that interest or worry you? Or on the markets and technologies that are defining your future? A custom SmartSphere® project is the perfect way to do that. “Living business intelligence”™ means research that is laser-focused on your targets, and continually updated for as long as you need it.

Any collection of companies, markets, or technologies can become the backbone of a SmartSphere® project. You define who or what they are. You define what you want to track about them, and how you’d like to rank or score or weight them. You define the types of cross-company or cross-market comparisons you’d like to see.

You need Flash to use Harbor’s site and our SmartSphereŽ demos. It’s free and easy. Get it here.

Take action and take control.
If you’ve read this much about SmartSphere® without clicking something, it’s time to click. Here are those links once again.

  1. Visit our free, live SmartSphere® demonstrations.
  2. Download a brochure on the SmartSphere® research platform and services (PDF, 970 KB).
  3. Download a brochure about our SmartSphere® “living research” projects on the M2M/Pervasive Internet phenomenon (PDF, 240 KB).


Polling and Charting

Vote on key Pervasive questions and get our community’s opinions instantly.

Harbor polling booth


What do your colleagues and customers think about key Pervasive issues? Find out, fast and free.

Harbor’s site visitors are technologists and business leaders with the same thing on their minds: Internet-enabled device networking, smart services, and enterprise automation.

Our Polling Booth lets you can tap into this unique community in a very real and valuable way. Cast your own vote on a key Pervasive question and see all votes charted in real time. (Click “Vote!” in the site’s navigation to get there.) You can vote only once on each question, but you can come back any time to see the latest results. You can even cite the polling data in your own site pages or publications—providing you credit Harbor Research as the source.

We’ve started with a handful of questions about core Pervasive issues, and we’ll add more regularly. Do you want community opinion on something we haven’t asked about? We welcome suggestions for the Polling Booth at feedback@harborresearch.com.

Visit our site and try out the polls and charts. Click “Vote!” in the main navigation.





[Editor’s note: You can comment on anything we do by sending email to feedback@harborresearch.com.]
 
Harbor Research, Inc.