Smart Economy

When will the Recession / depression end? Part 19 Put Infrastructure Where it's Needed; Ontario on the Move

Put Infrastructure Where it's Needed-Ontario on the Move

Last December I posted a series of suggestions for Canadian Prime Minister Harper and US

President Obama to consider when funding infrastructure. See Top 10 smart technologies for Obama and Harper to consider for their infrastructure / cyberstructure / cognistructure program

Now Richard Florida & his team weighs into the game. This comes from a press release from the Martin Prosperity Institute at the University of Toronto this morning--Walter Derzko

Ontario on the Move - Put Infrastructure Where it's Needed

Economic history has shown that changes in infrastructure systems have often underlain phases of significant economic growth. Railroads in the 19th century, highway systems of the 1960s, and the internet infrastructure of the late 20th century are prime examples.  The innovation that gives rise to new infrastructure systems is often a response to severe stress and is often driven by desperate circumstances.  Ontario's opportunity lies not in reacting to a crisis but in proactively investing in the infrastructure necessary for future success.

 
This Week's Working Papers:

 

These working papers highlight the diverse array of challenges and opportunities Ontario

faces as it transitions toward the creative age. They represent the next three of twenty working papers that we commissioned to support the core analysis of our report: Ontario in the Creative Age. We hope you find them engaging.

• Infrastructure and the Economy: Future directions for Ontario by Chris Kennedy, Bryan Karney, Eric Miller, and Marianne Hatzopoulou
• Ontario's South Asian Transnationals: Unlocking the Potential of an Untapped Resource by Azmi Haq
• Learning from the Past - Volume 1: The Automotive Industry and Economic Development in Ontario; a Historical Perspective (1904 to the Present) by Stewart Melanson

READ MORE >>

 

Walter Derzko, Smart Economy. Toronto

Author of the soon-to-be-released book: Hard Times Golden Opportunities.. about opportunity recognition in a recession/ depression features 45 opportunity scenarios.

Related Recession / Depression Posts

When will the recession / depression end? Part 19 Put Infrastructure Where it's Needed; Ontario on the Move

When will the recession/ depression end? Part 18 Hormones and Boom and Bust Cycles

When will the recession / depression end ? Part 17 Recap from the World Economic Forum in Davos

When will the recession end? Part 16 It's all over, well sort of.

When will the recession end? Part 15 Year-end predictions for 2009 starting to come true

When will the recession end? Part 14 Four options for America's race to the bottom

When will the recession end? Part 13 Thirteen economic questions that economists can't answer

When will the recession end? Part 12 Bad times are good times for startups

When will the recession end? Part 11 Bank of Canada optimism

When will the recession end? Part 10, The Conformity Trap or Don't count on your economist for advise

When will the recession end? Part 9 Humor will signal recession /depression bottom

When will the recession end? Part 8 Lessons Learned from the last Post 9/11 recession; designing brilliant winning business models

When will the recession end? Part 7 False signals of recovery

When will this recession end? Part 6 The USA Paradox; Cheer vs Fear vs Transformation

When will the recession end? Part 5 Stop Auto Industry Bailouts, start buying Electric

When will the recession end? Part 4 The double dip housing crash in the USA

When will the recession end? Part 3 The coming collapse of the American Middle Class into an Underclass

When will this recession end ? Part 2 Do you listen to the Optimists or the Pessimists in 2009?

When will this recession end?

82 Signposts to the current Recession Depression Summary from 2008

 

© 2005-2009

Walter Derzko -"Changing the world, one idea at a time"©

Expert, Consultant and Keynote Speaker on Emerging Smart Technologies, Innovation, Strategic Foresight, Business Development, Lateral Creative Thinking and author of an upcoming book on the Smart Economy "

The Smart Technology Blog: The Smart Economy -- Read, enjoy, explore, speculate, comment !!

To arrange for an in house presentation or briefing on smart technology see here

To explore the opportunities and threats of any new smart technology in your industry - Contact Me or explore how we can work together

• ".....Strategy without action is a day-dream; action without strategy is a nightmare"-old Japanese proverb
• ".......Ours is the age that is proud of machines that think and suspicious of men who try to." -- H. Mumford Jones
• ".......Without changing our patterns of thought, we will not be able to solve the problems we created with our current pattern of thought."  --A. Einstein
• ".......Change is difficult, but complacency and stagnation are surefire showstoppers..." --Walter Derzko

• ".......Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it's the only thing that ever has."  -- Margaret Mead

• ".......Small minds discuss people; Average minds discuss events; Great minds discuss ideas; --Anon

P. S. if this is your first visit to my blog, please go to our Welcome page

Top 10 smart technologies for Obama and Harper to consider for their infrastructure / cyberstructure / cognistructure program

Both US president elect Obama and Canadian Prime Minister Steven Harper have promised "New Deal" like infrastructure programs for the USA and Canada to spend their way out of a depression / recession (pick one). A new term is needed to describe this type of new intelligence-infused infrastructure. I call it the cognistructure-an infrastructure that thinks for itself.

Here's my list of top 10 smart technologies that both Olbama and Harper should have their eye on and on their planning radar screens; (Niche applications 10-6, more ubiquitous applications 5-1)

10. Smart home fabrication (supersized 3D printer that prints your home on site) to improve construction efficiency and effectiveness and waste reduction in conventional house building (but there is little chance of seeing North American building codes reformed any time soon)

9. Smart sensors in bridges, levees, roads, buildings, vehicles, satellites  etc (smart dust) to provide a dynamic sense and respond environment- eco cities-earth with a fast track  nervous system

8. Move toward the electrification of transportation (GM, Ford, Chysler shifts production to electric cars and trucks)and smart road networks (ie smart retractable speed bumps, movable road mediums that adjust to traffic flow and congestion)

7.Biomimicry -- designing systems, objects and surfaces  based on natural biological models

6. Smart "emergent and self-organizing" traffic congestion systems that deal with natural complexity in unconventional ways

5.Infrastructure / congnistructure for Smart cities, that address and enforce  "system resilience" and mitigates the consequences future potential catastrophies (climate change, severe weather, man-made disasters, riots, etc)

4.Modermizing the electrical grid to accept consumer and commercial inputs from alternate energy and reducing power loss during distribution ( via super conductors and nanowires)

3.Adoption of smart alternate energy technologies (wind, water and sun) that approach price parity with gas, coal, nuclear and electricity. Move toward distributed and diversified energy production vs centralised energy production.

2. Energy harvesting- various smart technologies that convert latent heat, all light spectra and mechanical vibration into electricity. Objects that create their own energy

1. Internet of things (IofT) (or ObjectNet or O-Net) & the Internet of Services (IofS) or S-Net -Intelligent objects, systems and environments have their own unique IP address and are connected together, just like web pages are linked on the web today.

© 2005-2008

Walter Derzko

Expert, Consultant and Guest Speaker on emerging Smart Technologies, Strategic Planning, Business Development, Lateral Creative Thinking and author of an upcoming book on the Smart Economy "

To explore the opportunities and threats of any new smart technology in your industry - Contact Me

.....Strategy without action is a day-dream; action without strategy is a nightmare"

- old Japanese proverb

P. S. if this is your first visit to my blog, please go to our Welcome page

IBM endorses smart technology and a smarter planet

A while back when I was at the Idea Lab at the Design Exchange, I remember sitting over a coffee and exploring a thought exercise with some clients.

The question under debate was: What are  the generic elements or activities that would accelerate any new technology platform, (such as smart technologies) and overcome the initial market interia. Simply put, Is there a generic technology evolution matrix?

We came up with over 25 items. (see related Post-Do you know how to spot opportunities?)

One was having cartoonists make fun of your technology ( No, smart technologies aren't on Dilbert's radar screen yet, but any day now I hope)  Another key event would be to have some influential CEO highlight the benefits of your technology in a milestone keynote speech (act as a complimentor-in business strategy terms. )

Well for smart technologies, that breakthrough event may have happened this month on November 6^th, when IBM’s CEO, Sam Palmisano, outlined a new agenda for building a smarter planet - during a speech at the Council on Foreign Relation. (hat tip to Adam Christensen at IBM HQ)

 

 

From IBM's blog:

"In the speech, he outlines a number of the challenges faced today by people, governments, businesses and organizations. A lack of clean water for a fifth of the world’s population. Energy systems that waste more energy than they produce. Traffic in our cities that clogs roads and chokes economic growth. 

Clearly there are no simple solutions for these problems.

Technology can play a big role in helping find answers to these problems. While the Internet currently connects more than a billion people, in just a few years, it will connect more than a trillion objects. Everything from cell phones, cars, roads, buildings, and even objects in nature itself, will have embedded technology and be connected to one another, enabling tremendous advances in how we understand how the world works and make smarter decisions to make it work better. 

But technology is just part of the solution. Without the people, policies and culture to inspire and execute the change, nothing ultimately gets done."

From Sam’s speech:

[...]   These collective realizations have reminded us that we are all now connected—economically, technically and socially. But we're also learning that being connected is not sufficient. Yes, the world continues to get "flatter." And yes, it continues to get smaller and more interconnected. But something is happening that holds even greater potential. In a word, our planet is becoming smarter.

This isn't just a metaphor.I mean infusing intelligence into the way the world literally works—the systems and processes that enable physical goods to be developed, manufactured, bought and sold… services to be delivered… everything from people and money to oil, water and electrons to move… and billions of people to work and live.

 What's making this possible?

• First, our world is becoming instrumented: The transistor, invented 60 years ago, is the basic building block of the digital age. Now, consider a world in which there are a billion transistors per human, each one costing one ten-millionth of a cent. We'll have that by 2010. There will likely be 4 billion mobile phone subscribers by the end of this year… and 30 billion Radio Frequency Identification tags produced globally within two years. Sensors are being embedded across entire ecosystems—supply-chains, healthcare networks, cities… even natural systems like rivers.
• Second, our world is becoming interconnected: Very soon there will be 2 billion people on the Internet. But in an instrumented world, systems and objects can now "speak" to one another, too. Think about the prospect of a trillion connected and intelligent things—cars, appliances, cameras, roadways, pipelines… even pharmaceuticals and livestock. The amount of information produced by the interaction of all those things will be unprecedented.
• Third, all things are becoming intelligent: New computing models can handle the proliferation of end-user devices, sensors and actuators and connect them with back-end systems. Combined with advanced analytics, those supercomputers can turn mountains of data into intelligence that can be translated into action, making our systems, processes and infrastructures more efficient, more productive and responsive—in a word, smarter.

What this means is that the digital and physical infrastructures of the world are converging. Computational power is being put into things we wouldn't recognize as computers. Indeed, almost anything—any person, any object, any process or any service, for any organization, large or small—can become digitally aware and networked.

With so much technology and networking abundantly available at such low cost, what wouldn't you enhance? What service wouldn't you provide a customer, citizen, student or patient? What wouldn't you connect? What information wouldn't you mine for insight?

The answer is, you or your competitor—another company, or another city or nation—will do all of that. You will do it because you can—the technology is available and affordable.

But there is another reason we will make our companies, institutions and industries smarter. Because we must. Not just at moments of widespread shock, but integrated into our day-to-day operations. These mundane processes of business, government and life—which are ultimately the source of those "surprising" crises—are not smart enough to be sustainable.

[...]

Leaders will need to hone their collaboration skills, because we will need leadership that pulls across systems. We will need to bring together stakeholders and experts from across business, government and academia, and all of them will need to move outside their traditional comfort zones.

I’m struck by the questions this raises. What investments need to be made by both public and private institutions? What policy issues need to be debated and resolved? What role can individual citizens and employees play in helping bring about meaningful change?

I’m also struck by the potential opportunities inherent in finding solutions to these problems. 

see full text of Sam Palmisano's speech

Walter Derzko

 

From IBM's blog:

"In the speech, he outlines a number of the challenges faced today by people, governments, businesses and organizations. A lack of clean water for a fifth of the world’s population. Energy systems that waste more energy than they produce. Traffic in our cities that clogs roads and chokes economic growth. 

Clearly there are no simple solutions for these problems.

Technology can play a big role in helping find answers to these problems. While the Internet currently connects more than a billion people, in just a few years, it will connect more than a trillion objects. Everything from cell phones, cars, roads, buildings, and even objects in nature itself, will have embedded technology and be connected to one another, enabling tremendous advances in how we understand how the world works and make smarter decisions to make it work better. 

But technology is just part of the solution. Without the people, policies and culture to inspire and execute the change, nothing ultimately gets done."

From Sam’s speech:

[...]   These collective realizations have reminded us that we are all now connected—economically, technically and socially. But we're also learning that being connected is not sufficient. Yes, the world continues to get "flatter." And yes, it continues to get smaller and more interconnected. But something is happening that holds even greater potential. In a word, our planet is becoming smarter.

This isn't just a metaphor.I mean infusing intelligence into the way the world literally works—the systems and processes that enable physical goods to be developed, manufactured, bought and sold… services to be delivered… everything from people and money to oil, water and electrons to move… and billions of people to work and live.

 What's making this possible?

• First, our world is becoming instrumented: The transistor, invented 60 years ago, is the basic building block of the digital age. Now, consider a world in which there are a billion transistors per human, each one costing one ten-millionth of a cent. We'll have that by 2010. There will likely be 4 billion mobile phone subscribers by the end of this year… and 30 billion Radio Frequency Identification tags produced globally within two years. Sensors are being embedded across entire ecosystems—supply-chains, healthcare networks, cities… even natural systems like rivers.
• Second, our world is becoming interconnected: Very soon there will be 2 billion people on the Internet. But in an instrumented world, systems and objects can now "speak" to one another, too. Think about the prospect of a trillion connected and intelligent things—cars, appliances, cameras, roadways, pipelines… even pharmaceuticals and livestock. The amount of information produced by the interaction of all those things will be unprecedented.
• Third, all things are becoming intelligent: New computing models can handle the proliferation of end-user devices, sensors and actuators and connect them with back-end systems. Combined with advanced analytics, those supercomputers can turn mountains of data into intelligence that can be translated into action, making our systems, processes and infrastructures more efficient, more productive and responsive—in a word, smarter.

What this means is that the digital and physical infrastructures of the world are converging. Computational power is being put into things we wouldn't recognize as computers. Indeed, almost anything—any person, any object, any process or any service, for any organization, large or small—can become digitally aware and networked.

With so much technology and networking abundantly available at such low cost, what wouldn't you enhance? What service wouldn't you provide a customer, citizen, student or patient? What wouldn't you connect? What information wouldn't you mine for insight?

The answer is, you or your competitor—another company, or another city or nation—will do all of that. You will do it because you can—the technology is available and affordable.

But there is another reason we will make our companies, institutions and industries smarter. Because we must. Not just at moments of widespread shock, but integrated into our day-to-day operations. These mundane processes of business, government and life—which are ultimately the source of those "surprising" crises—are not smart enough to be sustainable.

[...]

Leaders will need to hone their collaboration skills, because we will need leadership that pulls across systems. We will need to bring together stakeholders and experts from across business, government and academia, and all of them will need to move outside their traditional comfort zones.

I’m struck by the questions this raises. What investments need to be made by both public and private institutions? What policy issues need to be debated and resolved? What role can individual citizens and employees play in helping bring about meaningful change?

I’m also struck by the potential opportunities inherent in finding solutions to these problems. 

see full text of Sam Palmisano's speech

Walter Derzko

Smart Sustainability Showcase for Toronto and Canada

From: Walter Derzko

Sent: Friday, July 11, 2008 12:19 AM

To: undisclosed list

Subject: re Smart Sustainability ShowCase for Toronto and Canada.

Importance: High

Dear Colleagues

I’d like to plant an idea with you – after speaking with a number of designers and vendors, I’m exploring the idea for a sustainability showcase that would feature theme based exhibits with smart technologies from Canadian and international sources-the best from Ontario, nationally and from around the world.

The launch would be 2010, The timing for this seems right.  The target audience would be Canadian business, consumers and school children

I’m writing a book on smart technologies and this would be a logical extension of the concept.

Two years ago I talked to Samantha Sannella and Poala Polletto at the Design Exchange (DX) in Toronto and with several people at the Ont Science Center.  Both groups expressed interest but said that we would need to find sponsors for the project

My business model for this would be three pronged -vendor based revenue, corporate based sponsor revenue and municipality based sponsorship ie city of Toronto or Mississauga and possibly the province of Ontario who may wish to promote sustainable manufacturing.

This concept would be a Canadian, in fact a North American first.

I have a list of 150 potential vendors, and designers from around the world who are working on smart technologies that we can start to approach.

The exhibits would be theme based, --the sustainable kitchen, the sustainable office, the sustainable retail shelf, the sustainable workspace, the sustainable community, the sustainable city etc and would be updated with new technologies every 3-5 years and have a 1-5 year forward focus. (what's commercially available now or in the very near future.

For other exhibits, there can be a regional or national focus ie smart sustainable technology from the UK, Finland, Germany (Fraunhofer Inst), China, Ukraine, Russia, or Singapore, Hong Kong etc

Corporate sponsors might include: Walmart, Rona, Home Deport, Canadian Tire, Loblaws, Sears, Imperial Oil, the banks (RBC, TD, RBC BMO) etc.

The Sustainability Showcase could be housed in a physical location, or it could tour from location to location around the city or province or be mobile ( on a bus the way the Japanese and Korean do- a display bus turned into a demo center that tours from school to school or to fairs and exhibitions.

OCAD students and staff and Beal senior fellows could play a hand in designing exhibit spaces and sourcing new vendors and sustainable technologies.

Several other revenue opportunities could spin off from this as well

Here’s just a few examples of what can be showcased

1) Environmentally sensible packaging such as Mercury-Absorbant NanoSponge packaging for broken compact fluorescent lamps (CFL's) http://smarteconomy.typepad.com/smart_economy/2008/06/mercury-absorba.html

2) Concrete Wood (from the example I mentioned June 2 at OCAD, when Bob Logan was bemoaning the lack of durability of pressboard shelving from Ikea.  See Concrete Wood from lodgepole pine trees destroyed by pine beetles (kills two birds with one stone) http://smarteconomy.typepad.com/smart_economy/2007/11/concrete-wood.html

3) End of Traditional Heating and Air conditioning Thin-film version of Active Building Envelope (ABE) systems could make conventional air conditioning and heating equipment obsolete http://smarteconomy.typepad.com/smart_economy/2006/07/thinfilm_versio.html

4) OLEDs New High efficiency flat light source OLEDs > Almost any surface in a home, whether flat or curved, could become a light source: walls, curtains, ceilings, cabinets, shelves or tables.  Http://smarteconomy.typepad.com/smart_economy/2006/04/new_high_effici.html

Lots more like these

For anyone who is interested in exploring the idea of a Smart Sustainability Showcase for Toronto, we are having a meeting on Tuesday July 22 at 11 am at the Ontario College of Art & Design (OCAD), Beal Institute for Strategic Creativity, room 600, 6th floor , 100 McCaul St, Toronto just south of the Ont Art Gallery.

Please RSVP, so we know how many people are coming

I have had some positive feedback from several organizations, & I’d like to push the concept forward

I'm sending this nationally and internationally in  case you are aware of any designers, vendors, manufacturers or research centers who have interesting cutting edge smart sustainable technology to showcase.

Contact me by email

----Walter  Derzko; Senior Fellow Beal Institute for Strategic Creativity, OCAD 

© 2005-2008 Walter Derzko -"Changing the world, one idea at a time"©

Expert, Consultant, Keynote Speaker and Lecturer on Emerging Smart Technologies, Innovation, Entrepreneurship, Strategic Foresight, Business Development, Lateral Creative Thinking and author of an upcoming book on the Smart Economy

The Smart Technology Blog: The Smart Economy -- Read, enjoy, explore, speculate, comment !!

To arrange for an in house presentation or briefing on smart technology see here

To explore the opportunities and threats of any new smart technology in your industry - Contact Me or explore how we can work together

Smart House For People With Dementia 07-035

A groundbreaking home that uses the latest smart technology to give people with dementia and other serious long-term health conditions greater independence has been showcased for the first time in Bristol in the UK.

The technology, which has been developed by the Bath Institute of Medical Engineering (BIME) in the School for Health at the University of Bath, has been designed to help people readjust to living on their own after a stay in hospital, and aims to reduce the risk of users being readmitted to hospital or going into long term care.

It uses special sensors that can wirelessly 'talk' to devices, such as the cooker (stoves), taps and light switches, in response to the behaviour of the resident. By monitoring movement within the home, the system is able to respond to many different situations without having to contact care staff, often just using simple voice prompts, which could be recorded by family members.

The whole installation is quite unique because it is designed to empower the resident rather than relying on outside help to deal with problems.

What can this smart technology do?

• If the occupant was detected opening the main door at inappropriate times they would be given a prompt to let them know the time and encourage them to go back to bed. If they continued to go out, care staff would be alerted.
• If the occupant got out of bed at night, the bedroom lights would be gently faded up.
• If the occupant got back into bed and left the lights on, the house would wait a couple of minutes and then fade the lights off. The user could turn the lights on and off themselves at any point.
• If the occupant moved around the house when it was dark, appropriate room lights would be turned on to help orientate them and prevent falls.
• If taps were accidentally left on they would be turned off.
• If the cooker (stove or hot plate) was left on the occupant would be prompted to turn it off. This would be done twice but if they didn't respond, or if smoke was detected near the cooker, it would be turned off and care staff alerted.
• Whilst the cooker hot plates were still hot, even if the cooker had been turned off, a small warning sign would be illuminated saying 'Cooker Hot'.
• If the occupant was detected moving around a lot at night, they would be prompted to encourage them to go back to bed. If they continued to behave restlessly care staff would be alerted.
• Care staff would be alerted through the normal warden call system.

..gee..I don't  have dementia (yet) but I could sure use some of these features in my home. Ever think of designing DIY drop-in modules (like lego blocks) for this stuff?

ETA: now demo home....no mention of dsesign or construction costs or maintance costs.

Full story here >> [...]

© 2005-2007

Walter Derzko

Expert, Consultant and Keynote Speaker on Emerging Smart Technologies, Innovation, Strategic Foresight, Business Development, Lateral Creative Thinking and author of an upcoming book on the Smart Economy "

The Smart Technology Blog: The Smart Economy -- Read, enjoy, explore, speculate, comment !!

To arrange for an in house presentation or briefing on smart technology see here

To explore the opportunities and threats of any new smart technology in your industry - Contact Me or explore how we can work together

.....Strategy without action is a day-dream; action without strategy is a nightmare"- old Japanese proverb

".......Ours is the age that is proud of machines that think and suspicious of men who try to." - H. Mumford Jones

"Without changing our patterns of thought, we will not be able to solve the problems we created with our current pattern of thought."  A. Einstein

"Change is difficult, but complacency and stagnation are showstoppers..." Walter Derzko

"Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it's the only thing that ever has."  - Margaret Mead

P. S. if this is your first visit to my blog, please go to our Welcome page

Network-enabled Smart Objects & Services or the Death of the Traditional Business Model 07-005

Last year I wrote about how EDS is exploring opportuty windows with Network-enabled smart objects and sevices. Jeff Wacker, EDS's inhouse futurist recently asked a thought provoking question at a talk he gave in Toronto in July 2006 ....."Who would benefit by knowing that my package has just passing mile marker number 26 on route 192 ?" (see Smart Technologies need a New Business Model to be Effective)

In a recent newsletter, Harbor Research Inc makes a compelling case for merging product and service development under one techno-umbrella via a new emerging capability called network-enabled Smart Objects

They propose:

"Products and services, (like peanut butter and jam--my analogy,) while complementary, have historically had opposite strategic goals. 

As a result, each function has had to seek out its own distinct strategies.  Intelligent device networking, however, is initiating a blending of the two models.  The salient characteristics of each model are increasingly coming into question as product development and service organizations re-think their roles and functions based on the impact of networking.  Products alone and services alone will rarely provide any appreciable competitive advantage today.  Both are too easily copied.  Success will come to those companies that realize the combined potentials of both by applying them in specific formats that make it nearly impossible for a competitor to invade."....... ( and create brand new-to-the-world, copy-proof  "clustered" business models)

How is this being driven by today's business pressures and  competitive environment?

As I said yesterday, in my post on Open Source Innovation :

1) Because of rising R&D costs and decreased product revenues (due to shorter product life cycles) — companies are finding it increasingly difficult to justify investments in stand-alone, in-house innovation for new products and services.

2) New Business Models (see Crowd-sourced Manufacuring; Buy-what-you-design) are shifting power away from the OEM toward to consumer/designer.

Harbour Research adds the following observations  to the arguement:

3) The U.S. has created the first post-consumer society in which a majority of people have run out of waking hours to consume. Total consumption of all things is dropping towards the 1% growth rate of the population.

4) Instead of a growing demand pulling products through the channel profitably, many product manufacturers are trying to push too much supply through channels, even at losses, thinking perhaps that someday they will make it up on volume.

5) With today's global-glut supply and saturated demand, end-users express their growing power in many ways. Consumers now expect perfect quality goods and services, unconditionally guaranteed forever. All end users want “over choice” in product selection, flexibility in the types and quantity of services available, convenience, user-friendliness in buying, speed in delivery and lower prices.  End customers are steadily getting more of these needs met by more suppliers.

6) Manufacturing technology and methods continue to move towards the make-anything, in-any-quantity-now factory. This will please end-users, but it creates the growing problem of how to market micro-segmented products through traditional commodity channels and mass media.

7) Instead of selling through lots of small, independent agents, distributors and retailers that could be controlled, manufacturers are faced with selling to big chains or cooperative groups that control market share or shelf space and can push the manufacturers around.

8) Progressive manufacturers would like to sell their fragmenting line of goods to more and smaller segments of potential customers which their existing channel intermediaries haven't pursued and may not be geared to serve.

9)  Most product OEMs have enormous services and value added opportunities surrounding them, but the natural effect of their (conventional ) business mode ( and business models) blinds them from objectively seeing these opportunities."

Natural Consequences -( or what I feel is the Death of the Traditional Business Model)

Enter Smart Products and Services........

"By 2010, the Pervasive Internet (the 24/7, everywhere internet (or what I call the xtranet )and Smart Services could drive a total opportunity in the hundreds of billions of dollars for the companies involved in device enablement, device monitoring, and new services driven by device-generated data. The largest opportunity will exist for value-added integrated product and services providers, and thus access to device information will become a de facto part of most service or sales contracts."

Why should an OEM step up to the plate and network-enable its manufactured objects now?

Harbour Research argues:

• "Because in any given market, the first players to do so will own the information feedback loop to the customer, and it will be very hard for competitors to pull customers out of that loop. ( the lock-in factor and opportunity swtiching costs)
• Inside this “information circle,” a whole world of new, attractive, and more profitable services will take shape.
• Because those next-generation services cannot be offered without device information, and because even traditional service relationships will be made vastly more efficient inside the information circle, channel partners can no longer cut an OEM out of the services action.
• In fact, the real-time enterprise turns “disintermediation” completely on its head. When a company decides to make a smart product that sends out its “heartbeat,” the company owns access to that heartbeat, and thus access to the customer. Now, no third party can sell profitable services to the manufacturer’s customer without making some arrangement with the manufacturer for access to the diagnostic or status data coming from the networked product or device."

"With too much supply and not enough demand, product OEMs in virtually all markets are experiencing profit erosion. So, consolidation via acquisition of players at each step in the chain has been the norm for growth and value creation for some time.  Further, the historical approach of most product OEMs has been to aim for the “center” in designing their products and go-to-market architectures, hoping to maximize their access to a somewhat homogeneous set of mainstream customers. However, as suppliers attempt to meet the increasingly diverse and sophisticated requirements of customers, the middle-ground approach to product and market delivery design has been rendered significantly less rewarding—suppliers are finding a broad, central thrust to be less effective in pleasing any group of customers.  Traditional-thinking market participants are, in other words, putting their heads in the sand.

Ultimately, the worst of it all for most product OEMs is the fact that the consolidation cycle was for so many markets a 1990s phenomenon – that is, most product OEM markets have consolidated and most product OEMs are so large that the size of acquisition required to move the “equity value meter” is either too costly or, more often, not available.  Bottom line, we’ve run out of things to acquire.  Today’s executives are realizing, “Heavens….. this means I will really have to innovate and grow organically."

© 2005-2007

Walter Derzko

Expert, Consultant and Keynote Speaker on Emerging Smart Technologies, Innovation, Strategic Foresight, Business Development, Lateral Creative Thinking and author of an upcoming book on the Smart Economy "

The Smart Economy Bog: Read, enjoy, explore, speculate, comment !!

To arrange for an in house presentation or briefing on smart technology see here

To explore the opportunities and threats of any new smart technology in your industry - Contact Me or explore how we can work together

.....Strategy without action is a day-dream; action without strategy is a nightmare"- old Japanese proverb

".......Ours is the age that is proud of machines that think and suspicious of men who try to." - H. Mumford Jones

"Without changing our patterns of thought, we will not be able to solve the problems we created with our current pattern of thought."  A. Einstein

"Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it's the only thing that ever has."  - Margaret Mead

P. S. if this is your first visit to my blog, please go to our Welcome page

UK Government publishes Strategic Horizon Scans

The Horizon Scanning Centre has commissioned two complementary scans looking ahead up to 50 years : the Sigma Scan and the Delta Scan.

Initial versions of both scans have been published by the contractors who developed them : Sigma Scan by Outsights - Ipsos MORI and Delta Scan  by the Institute for the Future (IFTF).

The Sigma Scan is a broad synthesis of some of the world's best Horizon Scanning sources. It covers future issues and trends across the full public policy agenda. It is drawn from a range of sources including think tanks, academic publications, mainstream media, corporate foresight, expert/strategic thinkers, government sources, alternative journals, charities/NGOs, blogs, minority communities, and futurists.

The Delta Scan is an overview of future science and technology issues and trends, with contributions by over 200 science and technology experts from the worlds of government, business, academia and communication in the UKand US.

Develeped over 2005 and 2006 by a team of consultants and futurists,  the Scanning Framework has some novel methodologies and catagories. Each main issue is described as an Issue paper.

The main text of the Issue Papers themselves is divided into a number of different sections:


Headline: Headlines provide a brief description of the future eventuality discussed a pithy note on the main themes contained within the paper.


Keywords: Keywords summarise the coverage of the issue and suggest related issues, domains or topics.


Summary: The summary provides first an Abstract of the Issue (delimited by asterisks) for a quick overview of the whole paper, followed by a description of the trend, event or theme and the debates it raises. This is generally a presentation of the data/evidence in this field, linked where necessary to sources (with no fixed view on likely outcomes).


Implications: this contains a range of possible outcomes that could flow from the Issue as described in the Summary. These incorporate a number of factors where appropriate, including social values, habitat/environment, new technologies, knock-on and perverse effects. Early Indicators: This aspect of the Paper suggests possible early warning signs and precursors that should be looked for to indicate that the Issue may indeed be developing as described in the Paper.

Drivers and Inhibitors: Factors, people, institutions or events which will either fuel (Drivers) or act as a barrier (Inhibitors) to the emergence of this Issue.


Parallels and Precedents: Historical, international or cross-cultural examples of
somewhat similar instances which may shed some light either on the evolution of the Issue or the likely success of different strategies in response.


Sources: The list of sources consulted in writing the Paper, with web links, documents and location information where applicable.


Related links: a list of websites that may be of further interest to the reader relating to the topic


Sigma Scan basics: Issue Markers

Each issue has been further labelled with a number of Markers, which provide highly indicative (i.e. not predictive) information about the possible likelihood, impact,
distribution, severity and development time of each Issue:


Impact: This marker is designed to reflect the potential of this issue to create pervasive and/or serious change in the world at large: a development which in cultural, technological, environmental, economic or political terms alters the way we live or perceive the world. Impact is divided into:

• ****Extreme: Intense, deep-seated, pervasive or long-lasting in its effects. An event/development which profoundly affects the planet for example, an asteroid strike.
• ***High: A great event in human history, something that shapes human history and leaves longstanding cultural residues for example, the moon landings, the establishment of the United Nations, a major pandemic.
• **Medium: A defining aspect of a particular generation or nation's experience of the world. An important footnote in world history, such as the implementation of the Euro, the fall of the Berlin Wall.
• *Low: A development whose scope to instigate change is subtle or in some way restrained by conditions, medium, force, locality or likely responses. Something that captures the news agenda for months or years, but eventually fades into the cultural memory for example, the cultural changes of the 1960s.
• ?Unknown: There is no consensus within the literature about how best to interpret this issue.

Likelihood: The likelihood that this issue will evolve to become a central theme/development - in some way - in future society within its projected life span. The likelihood markers are:

• ***High: 75+% confidence that the events discussed will come to pass.
• **Medium: An equivocal 50/50 call.
• *Low: 25% or less probability.
• ?Unknown: No consensus about the likelihood.
  
  

Controversy: The level of consensus amongst experts, commentators and other observers holds that the Issue will unfold in the way described in the Paper and/or assume a greater significance in acting as an instigator of change. The controversy markers are:

• ***High: Very few experts pay the issue serious attention, and there is very little consensus about the extent to which this issue is likely to emerge. There is very little known evidence for this issue, and what there is highly unconventional, or propounded by alternative sources.
• **Medium: Whilst there is some kind of conventional consensus, futurists and/or alternative sources dispute whether this issue is likely to be a central development in future. Evidence is somewhat equivocal or open to scrutiny, even within expert audiences.
• *Low: The majority of experts, as well as a large volume of authoritative evidence, point to this issue emerging as a central theme over the next 50 years.
• ?Unknown: No known consensus on how to apply this marker.

When: The expected timeframe for this issue to influence C.21st life to the degree ascribed to it under "Impact". Divided into:

• 0-2 years: This impact of this issue is already being felt or will be in the immediate future
• 3-10 years: Likely to be under way but perhaps not well distributed. Wider effects felt over the near horizon
• 11-20 years: Mid horizon effects
• 21-50 years: Mid to far horizon effects
• 50+ years: Far horizon effects ?Unknown: High level of uncertainty as to when this impact could be felt

Where: The geographical spread of the Issues impact. Divided into:

• Domestic/national Largely restricted to particular nation states (e.g. UK)
• Regional Largely restricted to major global regions/continental areas (e.g. EU, Latin America)
• Global Potential to be experienced anywhere/everywhere on a global scale
• ?Unknown

How fast: How quickly the events and potential impacts described in the Paper could be
experienced:

• Instant in a matter of moments
• Days over the course of days
• Months over months
• Years over years
• Unknown

Sigma Scan basics: Issue Genres


As well as the markers, each paper is also classified into a number of different Genres. This is identified at the start of the Summary in capital letters and is supplied as an at-a-glance way for users to decide what sort of critical thinking they should apply to their reading of the paper. (e.g. in the same way that we would apply different critical faculties for reading a work of science fiction than we would for reading todays
newspaper).

Weak signal: A primarily descriptive Paper attempting to shed light on a relatively little known, weakly felt or poorly distributed phenomenon a possible baby trend at the relative margins of current knowledge. The Implications of this style of paper tend to be limited to explaining what is already starting to happen, and the Drivers / Inhibitors are important in deciding whether it will grow into a Key Driver or dwindle into nothing. The aim of Weak Signal papers is to inform readers about trends or
potential events that might slip under the radar.

Forecast: An Issue for which there is a relatively high degree of certainty, at least in terms of its likely presence as a force for change, based as it is on robust quantitative data and relatively stable variables. Forecast papers are based upon well-grounded and
authoritative sources, drawing on models or statistics to draw conclusions.

Key driver: These Papers describe a relatively more mainstream and better-known trend or development. Something that would probably on the radar of most policymakers or strategy thinkers. Key Driver papers provide a top-level review of the trend for the uninitiated, and aim to stretch the more informed reader with some wider Implications Parallels / Precedents beyond the usual inferences and certainties.

Scenario: A Paper which takes as its evidence base published scenario work from other sources. It therefore discusses the range of uncertainties and drivers that have been discussed in developing these scenarios and compares the assumptions in them. Rather than describing a possible driver of future change, it therefore examines the feasibility and possible implications of a particular hypothetical future.

Wildcard: An Issue with the potential to emerge unexpectedly but with potentially major impacts. Often, these papers deal with a radical discontinuity, as compared to other, more continuous and/or gradual trends.

Intelligent shapeshifting fabric: Dynamic Physical Rendering

In a story titled: Attack of the killer prototype robots;  CNET writes:

"Intel is trying to see if millions of tiny robots can work together to create a coffee cup, or a model of a truck.[think from Rapid Prototyping to Instant Prototyping-wd]

Intel's lab in Pittsburgh, affiliated with Carnegie Mellon University, is showing off a technology concept at the Intel Developer Forum here this week called Dynamic Physical Rendering, which could ultimately lead to a shape-shifting fabric.

Apply the right voltage and software program and the flat piece of fabric turns into a 3D model of a car.  Change those parameters and it transforms into a cube.  Dynamic Physical Rendering has grown out of the ongoing Claytronics project headed up by CMU professor Seth Goldstein.

"Rather than look at a 3D model on a CAD (computer-aided design) program, a physical model would be manifested on your desk," said Babu Pillai, who, along with Jason Campbell, is heading up the project.  "The material would change shape under software control."

The trick is that the fabric would not be a continuous piece of material.  Instead, it would be composed of millions of independent silicon spheres covered in electronic actuators--half-capacitors or electromagnets.  By applying charges to different actuators, different points on the sphere would be repelled or attracted to similar points on other spheres.  The coordinated movement of the spheres would then cause the fabric to assume a shape.

ETA: 2008-2010

The intelligent fabric doesn't exist yet, but Intel has created prototypes of the components that make up intelligent fabric. 

Full story here>> [...]

see related approach to shapeshifting: Active, smart materials that morph leads to large-scale structural seamless morphing: cars, boats and planes that change shape

© 2005-2006

Walter Derzko

Expert, Consultant and Keynote Speaker on Emerging Smart Technologies, Innovation, Strategic Foresight,, Business Development, Lateral Creative Thinking and author of an upcoming book on the Smart Economy "

To arrange for an in house presentation on smart technology see here

To explore the opportunities and threats of any new smart technology in your industry - Contact Me or explore how we can work together

.....Strategy without action is a day-dream; action without strategy is a nightmare"- old Japanese proverb

.......Ours is the age that is proud of machines that think and suspicious of men who try to. - H. Mumford Jones

"Without changing our patterns of thought, we will not be able to solve the problems we created with our current pattern of thought."  A. Einstein

P. S. if this is your first visit to my blog, please go to our Welcome page

Happy 1st Birthday to the Smart Economy Blog; Announcing a new Web site, Monthly workshops and webinars

Today marks the 1st anniversary of the Smart Economy Blog. We've received many encouraging feedback & emails from our readers over the past year and good suggestions from positive-focused critics for future improvements.

• According to Pingpoat, The Smart Economy Blog is worth  is $1011.17!  per day
• Inbound links: 1085
• Technorati rank: 34,021

So today, I'm announcing a series of new "smart" initiatives that we will be kicking off in October 2006.

The Smart Economy is growing exponentially and so are we, right along with it.

Smart Economy Learning Series-monthly workshops in Toronto

Starting in October 2006, we will be launching a monthly series of one-day workshops on topics that our blog readers say interest them. These include:

• Latest Tools for Advanced Environmental Scanning, Managing Information Overload and Sense-making ( October 12, 2006, BCE Place Toronto) email me asking for a registration form
• Lateral thinking in business  (Date TBA)
• Developing foresight in your business or industry  (Date TBA)
• Resolving conflicts and disputes using lateral thinking (Date TBA)
• The Opportunity Clinic --Scanning your business environment for Opportunities(Date TBA)
• The Idea Lab --Designing smart products and services that will drive business development forward (Date TBA)
• Introduction to Business Development --Tracking emerging technologies as threats or opportunities for your business (Date TBA)
• Technology Assessment for Investment Professionals & High Tech Startups (Date TBA)
• Building a Busines Case for Smart Devices, objects and services (Date TBA)
• Designing winning business modles for Smart Technologies (Date TBA)

Register today, since space will be limited. Past workshops have sold out quickly.

The Smart Economy Web Page

We are finally in the last stages of planning and constructing our new web site for the Smart Economy. Watch out for launch date soon.

The Smart Economy Webinar Series.

Also starting in October 2006, we will host a monthly opportunity for our blog readers to phone in and participate in a "live seminar" which will include power-point slides and a Q&A session, all from the comfort of your PC or laptop. It will be on some current topic related to the smart economy and some rising smart technology that will be coming into prominence soon. This will be a subscription based series.... We will try to keep the price reasonable so that everyone can participate. Subscription information & schedule will be out soon. Watch for announcements.

Thanks again for all your ideas and keep the feedback coming in.

© 2005-2006

Walter Derzko

Expert, Consultant and Keynote Speaker on Emerging Smart Technologies, Innovation, Strategic Foresight,, Business Development, Lateral Creative Thinking and author of an upcoming book on the Smart Economy "

To arrange for an in house presentation on smart technology see here

To explore the opportunities and threats of any new smart technology in your industry - Contact Me or explore how we can work together

.....Strategy without action is a day-dream; action without strategy is a nightmare"- old Japanese proverb

.......Ours is the age that is proud of machines that think and suspicious of men who try to. - H. Mumford Jones

"Without changing our patterns of thought, we will not be able to solve the problems we created with our current pattern of thought."  A. Einstein

P. S. if this is your first visit to my blog, please go to our Welcome page

Looking for Feedback on the Smart Economy Blog

Today is a bit of an anniversary for the Smart Economy. Since I started on this blog last Fall (Sept 15th, 2005 to be exact), I've posted 500 entries (this is # 501). We've received over 100 comments online and many more private direct emails. Our daily traffic is growing steadily month by month, as word spreads about The Smart Economy. Many other influential and popular web sites, trend syndication services and blogs now link back to us.

• According to Pingpoat, The Smart Economy Blog is worth is $1011.17!  Per day
• Inbound links: 1085
• Technorati rank: 34,021

I'd like to hear feedback from you --- our blog readers. How can we improve this site?

• what do you enjoy reading about smart technologies?
• what else would you like to see?
• what don't you like? what annoys you?
• what suggestions do you have for future topics?
• what  would you like to see more coverage of?
• do you use RSS? would you subscribe to a Smart Economy RSS  news feed?
• would you like to hear news about the smart economy on your Mp3 player?
• would you like a one-stop-shop to purchase smart technologies?
• would you find road maps for smart technologies useful for your worK?
• would you subscribe to a monthly online seminar (webinar) on smart technology?
• would you find workshops on smart technology topics useful?
• how do you use our information? investment decisions? strategic decisions? alliance decisions? other?

Post your replies or comments in the comments box below or send me a private email

I look forward to hearing from you.

Enjoy the rest of 2006 and 2007 and I hope to see you back here on a regular basis.

All the best !!

Walter Derzko