Wearables

• Connected devices worn by users for closer human-machine interface and convenience
• Limited by current hardware battery and connectivity considerations
• Value limited by number of use cases, expanding rapidly via Apple Watch and Android ecosystems

Examples:

• Apple Watch
• Fitbit
• Jawbone Up
• Google Glass

Upgradeable Vehicles

• Vehicles whose functionality evolves after purchase through software or hardware upgrades
• Upgrades may be difficult for core vehicle functions based for hardware or legal issues; comparatively easy for infotainment
• Usually requires OTA (over-the-air) upgrade functionality, upgrade marketplace and strong data ethics foundation

Examples:

• Tesla
• BMW ConnectedDrive (limited)
• Automatic (brand) plug-in connected car tool

Software-Defined Products

• Responsive design
• Products where value is defined in part (or fully) by software, so that value evolves over time
• Requires the ability to upgrade hardware devices over the air (OTA), usually via the internet and/or mobile networks

Examples:

• Smartphones
• Tesla upgradeable vehicle features
• BMW ConnectedDrive
• Nest Thermostat
• Software-defined networks (eg, upgradeable firewalls and routers)

Social Products

• Products whose core value involves social functions
• Smart, connected software layer for physical products
• Usually requires access to existing social networks; may also require a ‘social network of things’ for hardware integration
• Done well, creates pull for users to interact with the brand, minimizes ‘pushes’ of brand content
• “If you want to build loyalty, spend less time using data to tell customers about you, and spend more time telling them something about themselves.”—Mark Bonchek

Examples:

• Instagram
• Nike+/Nike Fuel

Autonomous Driving

• Varying degrees of machine augmentation or automation of human driving capacity
• Five levels of autonomous driving by US NHTSA (National Highway Traffic Safety Administration)
• (Level 0): No assistance or automation
• Function-specific Automation (Level 1): i.e. ABS, ESC
• Combined Function Automation (Level 2): i.e. Adaptive Cruise Control with Lane Centering
• Limited Self-Driving Automation (Level 3): i.e. Tesla Autopilot or early Google Car test vehicles
• Full Self-Driving Automation (Level 4): i.e. Google Car

Examples:

• Google Car
• Tesla Autopilot
• Traditional Automaker Prototypes (Mercedes, Audi, Etc)