Now technology bubbles up to the Business Enterprise level from Consumers

The technology at the Consumer Electronics Show (CES) will bubble up into business and into enterprises quickly – far quicker than IBM, HPE, Cisco, or any of the enterprise strength IT companies would like. Initially technology came from business to consumers – think PCs. The sheer size of consumer market and its willingness to put up with beta releases makes the consumer world the ideal proving ground for the less fault tolerant enterprise world.

Drones are bubbling up. While they started in the military, they now are big segment of the consumer market. Drones or autonomous flying vehicles have been improving including automated stabilization, 4K cameras, enhanced flying times, etc. Many of them have dozens of computers on board and some rather impressive programming to make them simple to use.

Due to the wide-spread usage of drones in the consumer market, they are vastly improved and far less expensive. One of the leader’s in the industry, DJI’s basic drone, Phantom 3 Standard, is just under $500 flying for ~25 mins, includes GPS tracking, tracks subjects based photo recognition using a 1080 camera for photos and stills. Refurb is $329 and knock offs are even cheaper.  Just 5 years ago, this would have been a top of the line $5K drone, if even available.

Part of the attractiveness of the consumer world is scale. The other factor is that the consumer world is filled with willing beta testers. Recent releases of drones from reputable companies come with lots of complaints on the internal boards of not flying well, not following waypoints, and simply flying away. A drone that loses its signal is supposed to fly back to the point of origin and land. In the business world, this would be a breach of contract and might result in loss of property or life. In the consumer world, the drone manufacturer can just send a firmware update, a coupon, or at worst replaces the device.

While scale makes the money, it is the willing beta tester that enables advancement. Haven’t you signed up to be a beta or an alpha tester. I know I am for many of IBM’s early release programs. We have marvelous internal site called “Technology Adoption Program” where individuals submit their software inventions. Many have become key enablers of IBM’s business.

What else might bubble up? Virtual Reality has real possibilities for training. Consumer IoT devices will make it into manufacturing. Fitness IoT devices will make it into Medical IoT devices. Home IoT devices by Amazon, Google, and Apple will rapidly make both IoT device and cognitive (AI) advances as we all beta test their devices for more hardened uses. I know send in correction reports regularly and in general they do a good job following up. The list is endless as people gobble up consumer technologies.

We used to make fun of 3rd world countries using the computers out of toys to steer their weapons. Maybe they were just ahead of their time.

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Consumer Technology enables SCALE and RAPID INNOVATION

Consumers enable SCALE and RAPID INNOVATION in Technology. As I walked around the Consumer Electronics Show (CES), I could see how the technology will “bubble up” into business and into enterprises quickly. Initially, technology came from business to consumers – think PCs. The sheer size of consumer market, hunger for new functionality, and its willingness to put up with beta releases makes the consumer world the ideal proving ground for the less fault tolerant enterprise world. Companies that span both world can leverage the consumer world for its SCALE and RAPID INNOVATION and bubble those innovations into the enterprise world for higher profits.

Drones are an example of bubbling up. While they started in the military, they are now a big segment of the consumer market. Drones or autonomous flying vehicles have been improving including automated stabilization, 4K cameras, enhanced flying times, etc. Many of them have dozens of computers on board and some rather impressive programming to make them simple to use. First it was movies, then multi-million dollar homes and now you see mid-market homes with drone footage. It has become a toy for teenagers, too.

Due to the wide-spread usage of drones in the consumer market, they are vastly improved and far less expensive. One of the leader’s in the industry (Drone Market Map)( https://www.droneii.com/top20-drone-company-ranking-q3-2016)), DJI’s basic drone is just under $500, flys for ~25 mins, includes GPS tracking, tracks subjects based photo recognition using a 1080 camera for photos and stills. Lots of knock offs are even cheaper.  “Toy Drones” are just $50! Five years ago, the DJI basic drone would have been a top of the line $5K drone, if even available.

Part of the attractiveness of the consumer world is scale. The other factor is that the consumer world is filled with willing beta testers and relatively low liability costs. The consumer world is an agile one where cycles occur very quickly. A typical enterprise development cycle is 18 months. In the same time in the consumer world, you’d see a major hardware, firmware, and at least 30+ releases of software.

The demand for new and the tolerance for risk is high in the consumer market. Recent releases of drones from reputable consumer companies come with lots of complaints on the internal boards of them not flying well, not following waypoints, and simply flying away. In the business world, failure to perform would be a breach of contract and might result in loss of property or life. In the consumer world, the drone manufacturer can just send a firmware update, a letter, a coupon, award you status on their web site as hero or pioneer, or at worst – replace the drone. It’s a trivial price enabling those dipping into the consumer world to advance faster than those in the business world.

While scale makes the money, it is the willing beta tester that enables advancement. Haven’t you signed up to be a beta or an alpha tester. I know I am for many of IBM’s early release programs. We have marvelous internal site called “Technology Adoption Program” where individuals submit their software inventions. Many have become key enablers of IBM’s business. They grew up fast by being adopted and depended on by IBM’s business.

What else might bubble up? Virtual Reality has real possibilities for training. Augmented Reality with heads up displays and glasses will be welcomed the field. Giving schematics, UV and Infrared vision, and more to workers. What will make it become easily affordable and useful – another Pokemon Go that plays with glasses pushing it onto millions of users’ foreheads.

3D printing is coming of age, but I can see point where 25% of households have plastics printer and your hardware store has a metal one. No inventory of 500K parts – just print it. Lots more like LED lights, Home Automation, Sports Fitness, etc. will bubble up.

Finally, Artificial Intelligence (AI) may be the biggest winner from the bubble up effect of the consumer. The key to AI is having huge knowledge base or corpus and lots of training. Where better than the consumer market with a potential of 7 billion users – the population of the world – to train your AI. Whether it is Siri, Alexa, Cortana, Watson, or Google, these companies’ AI programs will benefit from the consumer training it. You get a voice interface and they get you to train their AI.

What do you think will be the next big bubble up technology from the consumer world to the enterprise world?