2016 north american compact automotive antennas for ...€¦ · the intersection between 360-degree...

2016 North American Compact AutomotiveAntennas for Satellite BroadbandNew Product Innovation Award

2016

BEST PRACTICES RESEARCH

© Frost & Sullivan 2016 2 “We Accelerate Growth”

Contents

Background and Company Performance ........................................................................ 3

Industry Challenges .............................................................................................. 3

New Product Attributes and Customer Impact .......................................................... 3

Conclusion........................................................................................................... 7

Significance of New Product Innovation ......................................................................... 8

Understanding New Product Innovation ......................................................................... 8

Key Benchmarking Criteria .................................................................................... 9

Best Practice Award Analysis for Kymeta Corporation ...................................................... 9

Decision Support Scorecard ................................................................................... 9

New Product Attributes ....................................................................................... 10

Customer Impact ............................................................................................... 10

Decision Support Matrix ...................................................................................... 11

The Intersection between 360-Degree Research and Best Practices Awards ..................... 12

Research Methodology ........................................................................................ 12

Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices ................................................................................................................. 13

About Frost & Sullivan .............................................................................................. 14



Background and Company Performance

Industry Challenges

The wireless communications industry is marked by frequent technology advances and

upgrades. Wireless communication systems can be broadly classified into mobile networks

and satellite networks. Currently, automotive Original Equipment Manufacturers (OEMs)

use mobile network technologies such as 3rd Generation (3G), 4th Generation Long Term

Evolution (4G LTE), 4G LTE-Advanced (4G LTE-A), and 5th Generation (5G) to implement

telematics, connected cars, Vehicle-to-Vehicle (V2V) communication, and Vehicle-to-

Infrastructure (V2I) communication systems. Predominantly available 4G LTE-A

technology which is prevalent in connected cars offers a speed of about 100 Megabits per

second (Mbps) which is 3 times faster than 4GLTE, latency of 10–15 milliseconds, and a

bandwidth of 100 megahertz (MHZ). While the technical capabilities of 5G networks are

not yet proven, they are expected to cover the features offered by 3G and 4G systems

with increased network coverage, data security and also warrant high infrastructure costs.

Nonetheless, wireless mobile networks grapple with various challenges stemming from

factors such as inadequate network coverage, increased latency, security risks and with a

limitation that smartphones can communicate with only one mobile tower at a point of

time.

Currently, automotive OEMs and Tier 1 suppliers are experimenting to upgrade from 4G to

5G System. In 2015, LG and Intel have partnered to develop 5G telematics technology for

smart cars. LG is an exclusive supplier of vehicle telematics for General Motors’ 4G OnStar

telematics system. Furthermore, in 2015 Delphi tested its capability in developing

autonomous driving model with Audi Q5. The pilot vehicle drove 3,400 miles from San

Francisco to New York in 9 days was equipped with 6 long-range radars, 4 short-range

radars, 3 vision-based cameras, 6 Light Detection and Ranging (LIDAR) sensors, and 1

localization system.

Disruptive satellite broadband technology has several advantages over other wireless

communication networks as smart antennas can communicate with more than 300

satellites in various orbits at the same point of time without a drop in connection. Frost &

Sullivan expects satellite broadband technology to replace wireless mobile network

technology going forward.

Kymeta® Corporation, which spun out from Intellectual Ventures in 2012, offers satellite

broadband communication, both unicast and multicast solutions that can be used across

automotive, maritime, and aviation sectors. Kymeta seeks to tap growth opportunities in

this fiercely competitive market with the proven and tested, software-enabled and

compact satellite antenna technology that can be easily integrated into vehicles in the

manufacturing phase.



New Product Attributes and Customer Impact

Headquartered in Redmond, Washington, Kymeta is a forerunner specializing in the

development and commercialization of the software-enabled satellite antenna for the

automotive satellite broadband industry. Some of the unique features of this device are -

flat, compact design, light weight, low power requirements and Over the Air [OTA]

programming.

Criterion 1: Match to Needs

Currently, automotive OEMs, Tier 1 suppliers, and service providers using wireless

communication networks face challenges such as network coverage issues stemming from

data congestion and poor network security as there are multiple data entry and exit

points. Kymeta’s mTenna® technology addresses this challenge by using electromagnetic

metamaterials and holographic approach to transmit signals from a moving vehicle to the

satellite spectrum, across different satellite constellations and orbits without any drop in

connection.

There is a growing concern among automotive OEMs with regard to the increasing cost of

software-related recalls and service recalls. An efficient way to address this challenge is by

implementing Software Over the Air (SOTA) / Firmware Over the Air (FOTA) updates.

Leveraging mobile network and Wi-Fi technologies for OTA update is suitable for vehicles

sold in limited numbers. Satellite communication is an ideal solution for vehicles

distributed globally and on a large scale as used in defense, aerospace, and government

sectors for secure data transfer. It is evident from the example that, in 2015 by

leveraging 3G and Wi-Fi technology, Tesla offered OTA update for 23,000 Model S

vehicles. Kymeta’s satellite broadband solution will help OEMs to address the mass market

challenges-for example, Toyota sold about 10 million vehicles globally and efficient OTA

update for the large scale distribution can be attained using satellite broadband

technology.

Criterion 2: Quality of Protection

Application security, authorized data entry and exit points, reduced attack vectors, source

system integration, network-based authentication and certification are some of the key

security parameters. OEMs, Tier 1 suppliers and new automotive ecosystem participants

are focusing to build secured solutions (OTA, connected car platform etc.) as consumers

and government agencies are concerned over the security aspects of the connected

vehicles. Kymeta has partnered with Intelsat for the implementation of satellite

communication (SATCOM) technology. Compliant with DoDI 8500.2 MAC Level I controls

and NIST 800-53 and ISO 27000 standards, Intelsat’s teleports continually assess

networks and infrastructures. From connected car perspective, Kymeta believes in

implementing security standards throughout the entire software development life cycle

(from design to execution). Kymeta's satellite-based solution is being designed to meet

the security criteria important to modern connected cars and offers the critical



infrastructure for autonomous cars of tomorrow.

Kymeta’s Ku-band mTenna technology is optimized to use Intelsat’s Epic High Throughput

Satellite (HTS) platforms. Kymeta’s KyVault cache and proxy in-vehicle server,

reconstructs, authenticates and authorizes the data exchanged both inbound and

outbound to/from the vehicle. Encryption and decryption techniques are used to ensure

stable and secure communication. Cache memory in the server stores the frequently

retrieved information for recurring use, queues the data for transmission to data analytic

machines and records the unread data for future retrieval. Satellite communication and

Kymeta’s solution reduces hacking risks of remotely accessing the in-vehicle data in the

connected vehicles by about eight times compared to wireless mobile communication

networks, as the former involves the use of a single carrier and is a private network,

whereas the latter requires automakers to depend on multiple terrestrial carrier providers

for data transfer. In the case of the terrestrial mobile system every handset is a potential

security exposure. When compared with mobile networks, connected car security aspects

can be easily managed by adopting Kymeta’s satellite broadband technology.

Criterion 3: Design

Traditional satellite antennas are mechanically operated. They were large, heavy, and had

high implementation and maintenance costs. Wireless satellite broadband used in media

broadcasting reduces latency but requires the hardware—modem and a satellite dish—to

be mounted for transmitting signals. Such external hardware requirements, coupled with

the size and weight of the antennas, make traditional satellite antennas unsuitable for

passenger vehicles.

Kymeta addresses this challenge by offering compact and lightweight mTenna technology,

made of electromagnetic metamaterials arranged in a phased array like pattern. The

Kymeta antenna is electronically steered and uses a holographic approach to lock the

beam from satellites. This design helps the device to instantaneously and continually

transmit signals to and from satellites in different directions. Each antenna is 15.24

centimeters in diameter, half-an-inch thick, transmits up to 10 megabits of data per

second, receives up to 50 megabits per second and consumes less than 10 watts of

power. Throughput can be increased by adding more modules.

Kymeta teamed with consumer electronic display manufactures to manufacture low-cost

satellite antennas for high-speed connectivity. Three years of intensive collaboration with

Sharp have led Kymeta to a product design that can be manufactured utilizing Sharp’s

existing liquid crystal production capabilities. The automotive industry will benefit from this

technology as satellite antennas are widely deployed in consumer devices- with billions of

dollar investments in infrastructure and R&D, Kymeta and Sharp are able to mass-produce

antennas on a wider scale. Considering connected car and smart homes use cases,

automotive industry will rely on cost effective solutions. This means that functionality that

previously costs tens of thousands of dollars and more is now available at a consumer price



point. Going forward, Kymeta envisages a scenario where automotive ecosystem and

consumers will never notice the communication/infrastructure cost.

Kymeta has strengthened its foothold in the automotive industry by implementing the

software-enabled mTenna satellite broadband technology in vehicle - 2016 Toyota Mirai

research vehicle, this project is currently in the pilot phase. Kymeta’s satellite antennas

are embedded and installed in the roofs of some of Toyota’s research vehicles in the

manufacturing phase. Their sophisticated design and easy implementation technique have

attracted partners and investors from different domains, such as Sharp for consumer

electronics, Toyota for automotive, Inmarsat and Intelsat for satellite communication.

Criterion 4: Customer Service Experience

In January 2016, Panasonic Avionics and Kymeta formed a partnership to implement the

mTenna technology for maritime vessels. Prototype testing is in the research and

development (R&D) phases, and commercialization is expected by 2017. Satellite

broadband technology for the automotive industry is at a nascent stage. In the

automotive vertical, Toyota Motor Corporation plans to leverage Kymeta’s solutions for

vehicle data management and provide its customers with improved vehicle connectivity.

Vehicle connectivity includes real-time navigation, live Highly Automated Driving (HAD)

maps, and infotainment with rich digital media content. In January 2016, Toyota

partnered with Kymeta and showcased a research vehicle, the Toyota Mirai fuel-cell

vehicle equipped with mTenna technology, at the North American International Auto Show

(NAIAS). Another Toyota research vehicle prototype (4Runner), toured America (from 7

February 2016 to 9 March 2016) across cities, towns, and rural areas, covering about

15,000 miles with no mobile network connectivity, which proves Kymeta’s mTenna

technology coverage capabilities and software efficiency.

Criterion 5: Price/Performance Value

Kymeta’s partners support the company in a variety of ways, from funding to technical

collaboration to global distribution. To manufacture mTenna technology, Kymeta has

partnered with Sharp, leveraging the latter’s proven expertise in manufacturing consumer

electronic devices. Kymeta’s solutions benefit OEMs by reducing their expenses toward

software recall using the OTA update technology. They further benefit potential customers

by saving them time and money, dispensing with the need to visit dealer service centers

for software and service recalls and provide a better driving experience. Furthermore

Kymeta’s solution provide huge volumes of data to support autonomous vehicles

Kymeta's ‘smart’ antenna system would allow the car to check around 300 satellites at

once delivering 4800 times the usable spectrum and overcomes the issue of mobile

network congestion and blockages. Kymeta has clear growth strategy for automotive

industry considering the future complex automotive use cases. They are making

investments in technology and process for sustained growth through various partnerships.

Kymeta plans to add more value to the growing connected car industry-current technology



and wireless spectrum that is available will not meet the expected demand or the

expectation of speed, reliability and security that will accompany that demand. Kymeta

attracted OEMs, Tier 1 suppliers and investors across various industries as some of them

have invested/implemented their pilot solutions. Automotive industry especially connected

cars, autonomous vehicles and big data & analytics will require enhanced connectivity at

significantly faster data rates. Automotive OEMs are increasingly competing amongst

themselves to expand their customer base by providing advanced technologies focusing on

vehicle safety and security by offering features with minimal or no increase in vehicle

price. Kymeta’s implementation of mTenna technology is extremely cost-effective when

compared to 4G LTE and 5G. Kymeta with their overall performance using spectrum and

satellite along with significant investments from automotive and non-automotive industry

leaders has made substantial progress in the past three years.

Criterion 6: Brand Equity

Kymeta’s products and technology are innovative. Kymeta is supported by investors and

partners from various sectors. In the initial phase, the company received funding of $12

million in an investment round led by former Microsoft chairman Bill Gates, Lux Capital,

and Liberty Global. Mr. Gates is one of the active board members. Kymeta has partnered

with esteemed companies with proven track record in their specific sectors. Kymeta has

partnered with Intelsat for implementation of SATCOM and with the automotive OEM

Toyota for efficient vehicle data delivery and management. Toyota has invested $5 million

to enhance the efficiency of mTenna technology. Kymeta has partnered with Sharp to

manufacture its antenna technology. Panasonic, Intellian, and e3 Systems are working on

distribution and implementation of mTenna satellite technology for vessels in the maritime

industry. Honeywell and Inmarsat are working on deployment of Kymeta’s solutions to

monitor the operational efficiency of aircraft related to weather conditions, turbulence

data, and engine functionality in the aviation sector.

Kymeta has won the 2014 Washington Manufacturing Award for the midsize Emerging

Manufacturer and CNBC Disruptor 50 Award two years in a row. It was also nominated for

the 2015 GeekWire Innovation of the Year Award for its mTenna technology.

Conclusion

Satellite broadband in the automotive industry is expected to represent the future of

connected vehicle technologies. Kymeta has addressed the challenges faced by

automotive OEMs by enabling a global coverage and secure OTA updates. This innovative

product currently facilitating the connected car concepts is expected to extend its support

in future to autonomous vehicles.

With its strong overall performance, Kymeta Corporation has earned Frost & Sullivan’s

2016 Product Innovation Award.



Significance of New Product Innovation Ultimately, growth in any organization depends upon continually introducing new products

to the market, and successfully commercializing those products. For these dual goals to

occur, a company must be best-in-class in three key areas: understanding demand,

nurturing the brand, and differentiating from the competition.

Understanding New Product Innovation Innovation is about finding a productive outlet for creativity—for consistently translating

ideas into high quality products that have a profound impact on the customer.



Key Benchmarking Criteria

For the New Product Innovation Award, Frost & Sullivan analysts independently evaluated

two key factors—New Product Attributes and Customer Impact—according to the criteria

identified below.

New Product Attributes


Criterion 2: Reliability

Criterion 3: Quality

Criterion 4: Positioning

Criterion 5: Design

Customer Impact


Criterion 2: Customer Purchase Experience

Criterion 3: Customer Ownership Experience



Best Practice Award Analysis for Kymeta Corporation

Decision Support Scorecard

To support its evaluation of best practices across multiple business performance

categories, Frost & Sullivan employs a customized Decision Support Scorecard. This tool

allows our research and consulting teams to objectively analyze performance, according to

the key benchmarking criteria listed in the previous section, and to assign ratings on that

basis. The tool follows a 10-point scale that allows for nuances in performance evaluation;

ratings guidelines are illustrated below.

RATINGS GUIDELINES

The Decision Support Scorecard is organized by New Product Attributes and Customer

Impact (i.e., the overarching categories for all 10 benchmarking criteria; the definitions

for each criteria are provided beneath the scorecard). The research team confirms the

veracity of this weighted scorecard through sensitivity analysis, which confirms that small

changes to the ratings for a specific criterion do not lead to a significant change in the



overall relative rankings of the companies.

The results of this analysis are shown below. To remain unbiased and to protect the

interests of all organizations reviewed, we have chosen to refer to the other key players

as Competitor 2 and Competitor 3.

DECISION SUPPORTSCORECARDFOR NEW PRODUCT INNOVATION AWARD

Measurement of 1–10 (1 = poor; 10 = excellent)

New Product Innovation


Customer Impact

Average Rating

KYMETA 9.3 9 9.1

Competitor1 8 7 7.5

Competitor2 7 6.5 6.7



Requirement: Customer needs directly influence and inspire the product’s design and

positioning

Criterion 2: Reliability

Requirement: The product consistently meets or exceeds customer expectations for

consistent performance during its entire life cycle

Criterion 3: Quality

Requirement: Product offers best-in-class quality, with a full complement of features and

functionality

Criterion 4: Positioning

Requirement: The product serves a unique, unmet need that competitors cannot easily

replicate

Criterion 5: Design

Requirement: The product features an innovative design, enhancing both visual appeal

and ease of use

Customer Impact


Requirement: Products or services offer the best value for the price, compared to similar

offerings in the market

Criterion 2: Customer Purchase Experience

Requirement: Customers feel like they are buying the most optimal solution that

addresses both their unique needs and their unique constraints

Criterion 3: Customer Ownership Experience



Requirement: Customers are proud to own the company’s product or service, and have a

positive experience throughout the life of the product or service


Requirement: Customer service is accessible, fast, stress-free, and of high quality


Requirement: Customers have a positive view of the brand and exhibit high brand loyalty

Decision Support Matrix

Once all companies have been evaluated according to the Decision Support Scorecard,

analysts can then position the candidates on the matrix shown below, enabling them to

visualize which companies are truly breakthrough and which ones are not yet operating at

best-in-class levels.

DECISION SUPPORTMATRIX FOR NEW PRODUCT INNOVATION AWARD

High

Low

Low High

Customer Impact


Kymeta

Competitor1

Competitor2



The Intersection between 360-Degree Research and Best Practices Awards

Research Methodology

Frost & Sullivan’s 360-degree research

methodology represents the analytical

rigor of our research process. It offers a

360-degree-view of industry challenges,

trends, and issues by integrating all 7 of

Frost & Sullivan's research methodologies.

Too often, companies make important

growth decisions based on a narrow

understanding of their environment,

leading to errors of both omission and

commission. Successful growth strategies

are founded on a thorough understanding

of market, technical, economic, financial,

customer, best practices, and demographic

analyses. The integration of these research

disciplines into the 360-degreeresearch

methodology provides an evaluation

platform for benchmarking industry players and for identifying those performing at best-

in-class levels.

360-DEGREE RESEARCH: SEEING ORDER IN THE CHAOS



Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices Frost & Sullivan Awards follow a 10-step process to evaluate award candidates and assess

their fit with select best practice criteria. The reputation and integrity of the Awards are

based on close adherence to this process.

STEP OBJECTIVE KEY ACTIVITIES OUTPUT

1 Monitor, target, and screen

Identify award recipient candidates from around the globe

• Conduct in-depth industry research

• Identify emerging sectors • Scan multiple geographies

Pipeline of candidates who potentially meet all best-practice criteria

2 Perform 360-degree research

Perform comprehensive, 360-degree research on all candidates in the pipeline

• Interview thought leaders and industry practitioners

• Assess candidates’ fit with best-practice criteria

• Rank all candidates

Matrix positioning all candidates’ performance relative to one another

3

Invite thought leadership in best practices

Perform in-depth examination of all candidates

• Confirm best-practice criteria • Examine eligibility of all candidates

• Identify any information gaps

Detailed profiles of all ranked candidates

4

Initiate research director review

Conduct an unbiased evaluation of all candidate profiles

• Brainstorm ranking options • Invite multiple perspectives on candidates’ performance

• Update candidate profiles

Final prioritization of all eligible candidates and companion best-practice positioning paper

5

Assemble panel of industry experts

Present findings to an expert panel of industry thought leaders

• Share findings • Strengthen cases for candidate eligibility

• Prioritize candidates

Refined list of prioritized award candidates

6

Conduct global industry review

Build consensus on award candidates’ eligibility

• Hold global team meeting to review all candidates

• Pressure-test fit with criteria • Confirm inclusion of all eligible candidates

Final list of eligible award candidates, representing success stories worldwide

7 Perform quality check

Develop official award consideration materials

• Perform final performance benchmarking activities

• Write nominations • Perform quality review

High-quality, accurate, and creative presentation of nominees’ successes

8

Reconnect with panel of industry experts

Finalize the selection of the best-practice award recipient

• Review analysis with panel • Build consensus • Select winner

Decision on which company performs best against all best-practice criteria

9 Communicate recognition

Inform award recipient of award recognition

• Present award to the CEO • Inspire the organization for continued success

• Celebrate the recipient’s performance

Announcement of award and plan for how recipient can use the award to enhance the brand

10 Take strategic action

Upon licensing, company may share award news with stakeholders and customers

• Coordinate media outreach • Design a marketing plan • Assess award’s role in future strategic planning

Widespread awareness of recipient’s award status among investors, media personnel, and employees



About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth

and achieve best in class positions in growth, innovation and leadership. The company's

Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined

research and best practice models to drive the generation, evaluation and implementation

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http://www.frost.com.

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