MegatrendsAugmented Reality HeadsetsMiniaturisationSleep SensorsHand-held TerminalsRechargeable SuitsMilitary UsesGaming

Some latest productsNintendo WiiMoteI’m WatchPhilips GoGear/iPod NanoPlaystation MoveXbox KinectGoogle Goggles

Throughout history, right from the first watches, to the Memex and Sony Walkmans and even the HP-01 Watch Calculator, we have tried miniaturizing computers to make computing mobile and convenient.

WEARABLES

THE PAST, THE PRESENT AND FUTURE TRENDS IN WEARABLE

COMPUTING

Objective• Indicator of time.• Ornamental.

Objective• Make/Receive Calls.• Messaging.• Audio/Video.• Personal Organising.• Internet• GPS

Shortcomings• Static.• Not intelligent.

Shortcomings• Chunky.• Can’t be kept in

hand.• Not Mobile enough.• Inefficient use of

VAS, GPS etc.

Identified Gap Area Priority to Close Gap Description Benefits of Closing Gap

Mobility 1 Mobiles are good, but they are getting chunkier and more of bricks than getting miniaturized.

Ease of use, and increasing consumer convenience.

Static Nature 2 Watches are mostly static, wasted piece of real estate. Mobiles with smartphone capability are hard to use.

Make everything more accessible. Decrease the Therbligs of using information while using mobile.

Better use of VAS, GPS and apps

3 GPS, pedometer, Geotagging, heart beat monitor, Use of Twitter and Facebook, To do list. Alarm Clock.

Increase revenue and make new channels of revenue.

• A bridge device• A new solution

• More mobile• More

interactive• More powerful

• Battery life better than a mobile

• Easy to interact.• Non-invasive• Must use a common

platform, open source• Smaller the better

TRAI regulatory rules for Data Services•Operator have to activate mobile internet service within three hours of request from customers•TRAI will monitor quality of mobile internet service on nine parameters including minimum download speed, successful data transmission download and upload attempts etc.

•With stringent rules in place use of internet services over mobile handsets is gaining more users•Such services can be availed more easily on devices like smart watches

NEED-GAP ANALYSIS AND REGULATIONS

Entry Barrier - Low

• No regulatory restrictions from TRAI or DoT

• Less number of major players in this field

• No plans for launching similar products in India by other players

Threat of substitute - Low

• This product is a new sub category in field of communication devices

• No substitutes in near future for this product

Bargaining power of customer - low

• Product comes with great features that enhance the capabilities of a handset

• Ease of usage and absence of competitors in current market are factors that suppress the bargaining power of customer

Bargaining power of suppliers - high

• Currently not many products in this category exist in India

• Good demand for the product exists

Sony is the only competitor at present in Indian market

Many large players may enter the market and Philips must make rapid moves to

capture early adaptors

PORTER’S ANALYIS OF SMART WATCHES

World Market for Wearable Technology – A Quantitative Market Assessment – 2012, IMS Research

Market Potential

• 14 million wearable devices (2011).

• By 2016, minimum revenue opportunity of 2016.

Dominant wearable products here include continuous glucose monitors – such as from Abbott and Medtronic, activity monitors – such as Fitbit, Addidas miCoach and Nike Fuelband, and fitness and heart-rate monitors – such as from Garmin, Polar and Suunto.

MARKET POTENTIAL AND ANALYSIS

INDIA• 56 per cent of smartphone users in India access the Internet

multiple times a day• Nearly 40 per cent surf the Net at least once a day• Only 6 per cent never use their phone for connecting to the

Web.• About 76 per cent of smartphone users in India access social

networking sites on their devices 

USA• 11 per cent of smartphone users in the US never use their

device to access the Net• 53 per cent use it to surf multiple times a day.• 54 per cent of smartphone users in India access social

networking sites on their devices 

• 77 per cent of smartphone owners listen to music• 33 per cent use it for playing games • 32 per cent read newspapers or magazine.

http://www.thehindubusinessline.com/industry-and-economy/info-tech/article2939038.ece

There is a definite opportunity to exploit here, the market demand for more portability and convenience. It would be a sort of disruptive innovation if the product can reach the market at comparable prices to current smart mobile phones.

Market space for the product• Currently Sony is only player in India • Sony launched its Android Smartwatch in India in June 2012

for Rs.6299• No other players in queue to launch this product• No entry barriers for a brand like Philips 

Market trends• Craze for hand held smart phone devices is ceasing to

exist• People are definitely looking for a more comfortable,

smaller and sleeker device than a smart phone that performs all functions a smartphone does

• Bluetooth headset market which is similar to Smartwatch market is growing at CAGR of 21% in next five years

Market share• Smartwatch will go as an accessory for the mobile phone• Mobilephone market can be considered as a market for

smartwatches• Indian mobile phone market is seen as 50 million units

sale in Jan – March quarter 2012

SolutionA wrist-worn smart device, a take on wearable technology, that aims to better disseminate information through a wrist worn form factor.

HardwareOLED Curved Display.E-Ink or M3D Display.Detachable body.Changeable straps.Backlight.Vibration Motor.3-Axis Accelerometer.Magnetometer.Anti-scratch, Anti-shatter glass crystal.Micro-USB port.Rechargeable Battery.Directional Personal Speaker.Noise Cancellation Mic.Bluetooth 4.0 chip.Sim Card facility.

SoftwareAndroid 2.1 or higher/iOS 4 or higher.SDK for Development.All Social Media Apps, Facebook and Twitter

Vibration Monitoring Impact Recognition Pedometer

Free Fall Detection

Motion Functions

Position Detection

Map RotationCompensated Compass

I’M Watch

PRODUCT CONCEPT

cycling

messaging

jogging

calls

to/do lists

• Detachable body from strap.• Premium to low-cost customers, depending

on material used.• Water Resistant.• Scratch, shatter resistant.• Anti-glare optical coating.• Wireless Leash Notification, in case you forget

your phone somewhere, it vibrates.• Shake wrist to cancel calls.• Hands-free conversation.• Works seamlessly with Siri, S-Voice and

Google Voice.

MetaWatch Strata, Pebble.

VISION OF FUNCTIONS

Pebble

Touch TimeAppearWorld Sport

Pebble Watch

I’m Watch

Sony SmartWatch

Fossil Metal Watch

InPulse Blackberry Watch

Competitors and why we should enter• Almost all mobile dependent.• Limited features.• Not Open Source.• Battery and Display Issues• Most makers lack distribution

channels.

Philips Strengths and What we should do.• Innovation and green focused.• Already uses Apple iOS and Google Android platforms.• Strong distribution channels.• Strong R&D for driving new versions.• Can form part of a Philips Entertainment Life, touching all

points of a person’s life through a Cloud-based platform.• Strong player in OLEDs and Batteries.• Already strong line of music-players and wearable

computing, e.g. Go Gear.• Sim Card facility will offer direct competition to Mobile

Manufacturers. DISRUPTIVE INNOVATION.

All watch brands mentioned are copyrights of the companies mentioned.

STRENGTHS AND REASONS TO ENTER

2013 2014 2015 2016 2017

Smart Watch, mobile dependent, Bluetooth 4. Multiple Colours and Styles.

E-Ink to reduce energy consumption, M3D Technology

Better battery, should last as long as a month at least.

Watches replace phones totally. Holographic and

projector capability.

Smart Watches

Flexible Screens

Televisions

Other electrical appliances

The entire house

Philips’ Vision of the Future and Lifestyle

Entertainment

CLOU

D U

NIFIER D

EVICE

Sustainability of the product• Smart watch is an accessory for mobile phone that facilitates se

of a smartphone in a better way• Considering the trends in smartphone markets the future looks

very bright for this smartwatch• Explosive growth of Indian telecommunications industry along

with the rapid convergence of telecommunication and entertainment industry on handsets gives ample opportunities for the product

Scalability of the product• More models, based on customer’s affordability, premium to

low-cost user.• Hacks available for SDK developers. Encourage Open Source• Can be manufactured in China and shipped all over the world.• Since this is a blue ocean, there is much potential.• If this catches on like mobiles, growth will be phenomenal.• For different use, make different model, one for golfing, one for

swimming, etc. Huge opportunity for brand extension.• Make bigger family of Philips LE, more products all connected

by a Cloud Unifier Device.

STRATEGIC ROADWAY