The Human Side of Innovation

Many people go to CES this year with a different mindset. Global events have completely changed people’s priorities and made them question everything more deeply – from brand purpose to sustainability. There is also a growing sense of personal efficacy that people want to live their whole lives two years into the pandemic, which affects the way they work, communicate and consume.

Here are some of the top trends we expect to see at the show, which take into account how companies are dealing with this changing human mindset:

metaverse

Most of the major platform companies have their eyes set on the same space: the metaverse. Originally defined as a virtual reality space where users can interact with computer-generated environments and other users, definitions tend to differ depending on who is speaking.

The Metaverse promises great opportunities for businesses as the market is expected to reach $814 billion by 2028. Resurrecting from a year of limited physical and human interaction, research by Accenture found that in 2021, businesses doubled on virtual reality, with 88% of organizations which invest in technologies to create virtual environments, and of these, 91% plan to increase the investment.

There are many different ways in which people can participate in these spaces. For some, it’s a collaborative space where they can work, chat, or play together. For others, the value lies in being able to access different platforms and services through a single account or device. A first step might be to consider the metaverse’s ability to blur the lines between the real and digital worlds. Instead of thinking of it as virtual reality, think of more augmented reality: two worlds that are indistinguishable from one another. For example, digital advertising, telehealth, and virtual offices can happen in the real world using augmented reality-enabled devices.

Reaching the metaverse will require companies from all industries to participate — an ecosystem of device manufacturers, artists, communication service providers, platforms, advertisers and health service providers. For example, telecom and Internet providers should consider how the metaverse will require more bandwidth and connection points. Party speed may be enough for some, but not all. Besides the typical problems encountered in high-density regions, the emergence of the metaverse will also depend on focused efforts to build connectivity in underserved regions, which we as a global community have not yet been able to solve.

smart home

The past two years have made it clear that the home is a new battleground for innovation as more and more people continue to work remotely and seek entertainment in the comfort of their own home.

That includes digital fitness equipment and services, with a few categories having seen the kind of growth the digital fitness industry has seen over the past two years. From Peloton bikes to Zwift’s growing community of online cycling and regular gyms offering digital workouts, it’s clear that people are changing the way they exercise. This year will be a great opportunity to see which model is taking over the turbulent fitness market. On the one hand, comprehensive ecosystems based on special exercise equipment such as the Peloton that have limited access but generate more value for each user due to the premium pricing of the equipment are closed. On the other hand, there are growing online communities based on non-equipment-based platforms like Zwift which have the potential to appeal to a wider audience but less valuable due to the lower price of entry.

We’re also seeing an interesting dynamic resurgence in the TV and display space as OLED devices become more affordable, allowing consumers to take full advantage of HDR and 4K content without breaking the bank. This is happening at the same time that online streaming content providers and others are increasingly turning to 4K/HDR content cases almost exclusively. Likewise, interest in gaming is growing with nearly 2.7 billion gamers globally and more than 400 million new players expected by the end of 2023 as consoles and high-end PCs support increasingly high-quality graphics.

None of these smart home innovations would be possible without the conductive fabric: the connection to and within the home. Next-generation networks like 5G and Starlink will slowly but surely make their way to the public, providing high-speed, low-latency connectivity to homes everywhere. Wi-Fi 6, which debuted in 2019, is also making progress with an increasing number of smartphones, laptops and smart home devices adopting the new standard. As the number of smart devices in the average home increases, so does the need for networks that enable better performance.

Self-driving

Many traditional automakers and new entrants took a bold stance during previous CES presentations and promised fully self-driving cars by 2025. The good news is that more cars will help with driving or other semi-autonomous driving features in the future (tier 2 out of 6 on an autonomy scale). The Car). We predict that by 2030, 60% of all new cars will be Level 2 cars.

The bad news is that truly autonomous driving is still a long way off. Even with increased computing power and more data available from real road driving and simulated driving on virtual roads, it is still difficult to master autonomous driving. Lack of human intuition is the root cause of deep learning systems not powerful enough to navigate cars autonomously in real-world traffic. For example, the algorithm is still unable to distinguish between a real traffic signal and a manipulated one.

But while fully autonomous driving is out of reach for now, there’s another disruption ahead: Original equipment manufacturers (OEMs) are turning to software companies that deal in data. In fact, 50% of the auto industry’s revenue is expected to come from digital business models by 2050. This means that despite the setbacks, most car manufacturers will continue their self-driving programs to collect large sets of data that they can market. For example, the collected data can enable new services such as autonomous valet parking or intelligent recall driving. The larger the fleet, the more data – and this is where traditional car manufacturers have an advantage over their occupants.

We expect to see autonomous vehicle sales and aftermarket become smarter and more personalized with the help of data through platforms that connect consumers, dealers, and vehicle manufacturers. There is no doubt that at a time when the world awaits fully autonomous cars, the customer experience represents an important growth opportunity that will become the auto industry’s next competitive focus.

The shortage of chips

The global shortage of chips has made it clear that nearly every business is a semiconductor business. Consumer goods continue to be severely affected by supply chain issues with semiconductors.

While cars had the biggest impact with our estimates estimating a revenue loss of $370 billion in 2021 alone, many consumer electronics devices have also led to product shortages and shipping delays due to a lack of chips. Products like smart home devices — which can use relatively old chips and have lower profit margins — have also been hit by the shortage, with many companies revising sales forecasts and others delaying product launches altogether. However, it was precisely smartphones that managed to avoid the effect of the lack of chips. The high-quality chips they rely on are considered a top priority by semiconductor manufacturers because of their strong margins.

To help solve these problems, companies are considering how to increase their knowledge of semiconductor sourcing by hiring semiconductor supply experts when looking to secure their chip supply. They are also looking to diversify their suppliers and increase chip stocks to help avoid situations where a $30 chip would delay shipping products that could be up to 10x to 1,000x worth.

While chip delays can affect the shipping dates of new products, we expect to see innovation in the metaverse, smart home and automobiles prevalent at CES.

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