What Next for Electronic Devices?
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What’s Next for Electronic Devices
A white paper in summary format, May 2009
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2Copyright © 2009 Altium Limited
Hello.
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3Copyright © 2009 Altium Limited
Hello.
Altium is a worldwide software company, based in
Australia.
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4Copyright © 2009 Altium Limited
Hello.
Altium is a worldwide software company, based in
Australia.
We create, develop and market a unified electronics design
solution we call Altium Designer.
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5Copyright © 2009 Altium Limited
We recently decided to put the world of electronics design
on notice.
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6Copyright © 2009 Altium Limited
We recently decided to put the world of electronics design
on notice.
And you may have seen some of our announcements.
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7Copyright © 2009 Altium Limited
Our intent is to shake things up a little.
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8Copyright © 2009 Altium Limited
Our intent is to shake things up a little.
We want to challenge plenty of conventional thinking.
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9Copyright © 2009 Altium Limited
Our intent is to shake things up a little.
We want to challenge plenty of conventional thinking.
And we want to help electronics designers recognize some
difficult truths.
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10Copyright © 2009 Altium Limited
But most of all, we want to help designers make that
change.
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11Copyright © 2009 Altium Limited
The electronics design industry has grown up.
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12Copyright © 2009 Altium Limited
The electronics design industry has grown up.
There’s a new generation out there.
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13Copyright © 2009 Altium Limited
The electronics design industry has grown up.
There’s a new generation out there.
And it’s a generation comfortable and conversant with
being connected.
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14Copyright © 2009 Altium Limited
Electronic products are no longer technological wonders.
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15Copyright © 2009 Altium Limited
Electronic products are no longer technological wonders.
Instead, they are a lifestyle.
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16Copyright © 2009 Altium Limited
Can the electronics industry satisfy the demands of this
next generation?
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17Copyright © 2009 Altium Limited
Can the electronics industry satisfy the demands of this
next generation?
Not with old generation thinking and design processes.
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18Copyright © 2009 Altium Limited
The next generation of electronics products will be plugged
into ‘ecosystems’ of connected users.
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19Copyright © 2009 Altium Limited
The next generation of electronics products will be plugged
into ‘ecosystems’ of connected users.
The metal, silicon and plastics used to make next
generation products will be much less relevant in this much
broader view.
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20Copyright © 2009 Altium Limited
Apple’s iPod is a good example.
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21Copyright © 2009 Altium Limited
Apple’s iPod is a good example.
Its success comes from the music and download systems
that sit behind what you hold in your hand.
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22Copyright © 2009 Altium Limited
Apple’s iPod is a good example.
Its success comes from the music and download systems
that sit behind what you hold in your hand.
It’s not just the groovy features on the iPod itself.
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23Copyright © 2009 Altium Limited
Tomorrow, users of all types of electronics product, not just
consumer products, will want their products connected in
this way.
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24Copyright © 2009 Altium Limited
Are we there yet?
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25Copyright © 2009 Altium Limited
Are we there yet?
Not really.
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26Copyright © 2009 Altium Limited
Are we there yet?
Not really.
Try this experiment. Go into your local consumer
electronics store once a week.
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27Copyright © 2009 Altium Limited
After a few months, you’ll notice something interesting.
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28Copyright © 2009 Altium Limited
After a few months, you’ll notice something interesting.
Not much is changing.
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29Copyright © 2009 Altium Limited
After a few months, you’ll notice something interesting.
Not much is changing.
There’s plenty on show, but very few new concepts.
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30Copyright © 2009 Altium Limited
That’s why we all get excited when Apple launches
something new.
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31Copyright © 2009 Altium Limited
That’s why we all get excited when Apple launches
something new.
It breaks the innovation drought.
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32Copyright © 2009 Altium Limited
That’s why we all get excited when Apple launches
something new.
It breaks the innovation drought.
But despite their best attempts, Apple’s competitors never
seem to catch up.
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33Copyright © 2009 Altium Limited
That’s why we all get excited when Apple launches
something new.
It breaks the innovation drought.
But despite their best attempts, Apple’s competitors never
seem to catch up.
Why?
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34Copyright © 2009 Altium Limited
Because Apple has an ‘ecosystem’, not just the iPod.
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35Copyright © 2009 Altium Limited
Because Apple has an ‘ecosystem’, not just the iPod.
And in the face of fierce competition from some of the best
in the business, Apple’s ‘ecosystem’ gives it an edge.
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36Copyright © 2009 Altium Limited
It can offer its customers so much more than just a stand-
alone MP3 player.
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37Copyright © 2009 Altium Limited
It can offer its customers so much more than just a stand-
alone MP3 player.
And it sells to its customers beyond a single product.
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38Copyright © 2009 Altium Limited
It can offer its customers so much more than just a stand-
alone MP3 player.
And it sells to its customers beyond a single product.
That’s what everyone must emulate.
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39Copyright © 2009 Altium Limited
The challenge—or the opportunity—is to be different.
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40Copyright © 2009 Altium Limited
Those who lift the whole user experience will find little to
stop them.
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41Copyright © 2009 Altium Limited
Those who lift the whole user experience will find little to
stop them.
This is great if you are a newcomer, very frightening if you
are the market leader.
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42Copyright © 2009 Altium Limited
Creating an ‘ecosystem’ requires an entirely new approach
to electronics design.
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43Copyright © 2009 Altium Limited
It won’t be enough to switch from today’s static design
process to a slightly bigger, slightly better static design
process.
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44Copyright © 2009 Altium Limited
Designers must stop fixating on the electronics hardware,
and focus on the customer experience.
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45Copyright © 2009 Altium Limited
Only then should you seek out the functionality to make this
real.
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46Copyright © 2009 Altium Limited
As an example of this, imagine you make air conditioners.
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47Copyright © 2009 Altium Limited
As an example of this, imagine you make air conditioners.
You can take on your competitors with more efficient,
quieter, more powerful systems.
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48Copyright © 2009 Altium Limited
As an example of this, imagine you make air conditioners.
You can take on your competitors with more efficient,
quieter, more powerful systems.
Or you can undercut them on price.
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49Copyright © 2009 Altium Limited
As an example of this, imagine you make air conditioners.
You can take on your competitors with more efficient,
quieter, more powerful systems.
Or you can undercut them on price.
But what happens when new imports suddenly appear?
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50Copyright © 2009 Altium Limited
Instead, offer a different kind of customer service.
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51Copyright © 2009 Altium Limited
Instead, offer a different kind of customer service.
Make it simple for someone to connect to their air
conditioner from anywhere.
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52Copyright © 2009 Altium Limited
Instead, offer a different kind of customer service.
Make it simple for someone to connect to their air
conditioner from anywhere.
Perhaps develop an iPod app so that the customer can turn
on the air conditioning on the way home from the airport.
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53Copyright © 2009 Altium Limited
Instead, offer a different kind of customer service.
Make it simple for someone to connect to their air
conditioner from anywhere.
Perhaps develop an iPod app so that the customer can turn
on the air conditioning on the way home from the airport.
And you, the manufacturer, are also connected, so now
you can monitor performance. Upload new functions. Pre-
empt a service or a fault.
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54Copyright © 2009 Altium Limited
And when the customers move house, you can provide a
new air conditioner with their preferred settings already
uploaded.
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55Copyright © 2009 Altium Limited
You are both tapping into an ‘ecosystem’.
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56Copyright © 2009 Altium Limited
You are both tapping into an ‘ecosystem’.
And the value you have built sits beyond the actual air
conditioner mounted on the wall.
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57Copyright © 2009 Altium Limited
So, if we agree that this is a good idea, what do we change
about how we design electronics products?
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58Copyright © 2009 Altium Limited
So, if we agree that this is a good idea, what do we change
about how we design electronics products?
Design products that are intelligent and connected.
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59Copyright © 2009 Altium Limited
So, if we agree that this is a good idea, what do we change
about how we design electronics products?
Design products that are intelligent and connected.
Because adding intelligence lets us connect our products to
the ‘ecosystems’ we create.
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60Copyright © 2009 Altium Limited
And this is possible because of a new revolution, courtesy
of programmable hardware devices.
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61Copyright © 2009 Altium Limited
And this is possible because of a new revolution, courtesy
of programmable hardware devices.
Their effect is similar in size to that of the emergence of the
microprocessor, 30 years ago.
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62Copyright © 2009 Altium Limited
Their functionality is not fixed during manufacture, like
other chips.
Instead, it’s programmed by the designer to perform any
hardware function that’s desired.
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63Copyright © 2009 Altium Limited
So these devices have the potential to change everything.
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64Copyright © 2009 Altium Limited
So these devices have the potential to change everything.
They bring fluidity to the process of creating hardware.
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65Copyright © 2009 Altium Limited
So these devices have the potential to change everything.
They bring fluidity to the process of creating hardware.
They let designers do new things in new ways.
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66Copyright © 2009 Altium Limited
So these devices have the potential to change everything.
They bring fluidity to the process of creating hardware.
They let designers do new things in new ways.
And designers can now manipulate the hardware as easily
as they can modify software.
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67Copyright © 2009 Altium Limited
So designers can now stop thinking of everything as
separate chunks of hardware, programmable hardware and
software.
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68Copyright © 2009 Altium Limited
So designers can now stop thinking of everything as
separate chunks of hardware, programmable hardware and
software.
Instead, they can design functionality.
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69Copyright © 2009 Altium Limited
Doing all this with the old methods and the old rule books
will be a struggle.
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70Copyright © 2009 Altium Limited
Doing all this with the old methods and the old rule books
will be a struggle.
Time to discard them.
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71Copyright © 2009 Altium Limited
Start where the value is, with the ‘ecosystem’ and the
intelligence, which define the functionality, connectivity, and
user experience.
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72Copyright © 2009 Altium Limited
Relegate the hardware to the support role.
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73Copyright © 2009 Altium Limited
Relegate the hardware to the support role.
This gives you a holistic view of the entire process.
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74Copyright © 2009 Altium Limited
Relegate the hardware to the support role.
This gives you a holistic view of the entire process.
Now you can start exploring and innovating in all those
interesting areas.
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75Copyright © 2009 Altium Limited
Relegate the hardware to the support role.
This gives you a holistic view of the entire process.
Now you can start exploring and innovating in all those
interesting areas.
Now you can spend your valuable time on the stuff that
matters.
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76Copyright © 2009 Altium Limited
And if you use off-the-shelf hardware in your design, you
can go straight to development, test and manufacture,
without breaking into a sweat.
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77Copyright © 2009 Altium Limited
Where electronic products once stood alone, we now have
smart devices connected into ‘ecosystems’.
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78Copyright © 2009 Altium Limited
They span the entire globe, courtesy of the Internet.
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79Copyright © 2009 Altium Limited
The less we rely on fixed hardware to carry the critical
functionality of a product, the better.
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80Copyright © 2009 Altium Limited
The less we rely on fixed hardware to carry the critical
functionality of a product, the better.
We need to exploit software and programmable hardware
to deliver intelligence into devices.
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81Copyright © 2009 Altium Limited
The less we rely on fixed hardware to carry the critical
functionality of a product, the better.
We need to exploit software and programmable hardware
to deliver intelligence into devices.
And both can be updated as we expand our ‘ecosystems’.
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82Copyright © 2009 Altium Limited
Real, sustainable differentiation comes from the
intelligence we program into our electronics devices.
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83Copyright © 2009 Altium Limited
Real, sustainable differentiation comes from the
intelligence we program into our electronics devices.
This is what delivers the unique behavior, functions, and
connectivity.
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84Copyright © 2009 Altium Limited
This is the next generation of electronic products.
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85Copyright © 2009 Altium Limited
Designers need to shift their thinking to be able to create
these next generation designs.
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‘Divide and conquer’ no longer works.
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87Copyright © 2009 Altium Limited
‘Divide and conquer’ no longer works.
The holistic approach is the breakthrough that makes it all
work.
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88Copyright © 2009 Altium Limited
‘Divide and conquer’ no longer works.
The holistic approach is the breakthrough that makes it all
work.
It brings together the needs of the end user, and the
freedom to create great electronics, and gives you a
sustainable competitive advantage.
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89Copyright © 2009 Altium Limited
The world of electronics design is bound to change forever.
The time has come for a fresh, hard look, at the way we
design electronic products.
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To read this as a white paper, and more, go to altium.com.