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Disruption Report

Volume 1, April 2016

Innovation Collective

Theme 2: The Future of Customer Experience

Report Conclusion

Theme 1: The Future of Communication

Theme 3: The Future of Connectivity + IoT

Theme 4: The Future of Mobility + Transportation

Report Introduction

Table of Contents

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HELLO FROM ROCKETSPACE

The time has never been better to be running a corporate innovation team.

We’re living in a time of unparalleled opportunities in technology—riding the waves of movements that began decades ago, in some cases. The beauty of innovation is that it’s a force that builds upon itself, with a self-contained feedback loop: new ideas generate more ideas, as execution becomes easier. That’s why we’re seeing the tech sector moving so quickly. Just compare the time that elapsed between the first Macintosh computer and the first smartphone. Now, think about the time that elapsed between the first generation and FitBit.

With new opportunities on the horizon from virtual reality to self-driving cars, corporations need to be ready for the echo effect of new emerging markets for technology. Just think of the cloud revolution that companies like Amazon and Google sparked: it’s almost impossible to quantify the number of cloud consultants and SaaS consultants

What corporate innovation leaders need is a near real-time, bird’s eye view of the market. They also need the power of human judgment, forethought, and insight—expertise from individuals who have both macro and panoramic lenses into new disruption frontiers. With more than 10,000 startups launching each year, it can be difficult to separate signals from noise.

That’s why we wrote this guide: to help corporate innovation teams identify the right signals for maximizing impact.

Working with a diverse group of startups and innovation teams each year, we have a unique lens into the market and continuously study disruptions that include (1) early stage technology breakthroughs and (2) more mature technologies at tipping points to make significant impact to corporations, industries, and the global economy.

Rather than rehash what you already know in terms of what’s driving disruption, this report provides a deep dive into ‘why’ by synthesizing the unique insights of our research team. And because innovation never stops, we’ll be releasing a new version of this report 3 times per year, every 4 months, in tandem with our Innovation Collective Summit. We also publish a shorter disruption brief between summits. If you’re looking for advice, have questions, or want to make sure that you receive copies of our upcoming reports, I welcome you to reach out to me, any time.What corporate

innovation leaders need is

a near real-time, bird’s eye view of

the market.

CANICE WUDirector, Corporate Innovation [email protected]

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OUR CRYSTAL BALL + PREDICTIONS – What the Research Tells Us

Innovation can never stop, no matter your industry. Whether you’re in the aeronautics, hardware, software, healthcare, you need to keep adapting to your market. It’s this mindset and swift action that have positioned century-old companies like Dun and Bradstreet (178 years old), Merck (founded: 1668), and GE (founded: 1841) as thriving, unstoppable market leaders.

But as you get bigger, you have a lot more responsibilities. You have a bigger labor force, so you need to be careful about how you steer the ship. You have to appease your stakeholders and your shareholders. Meanwhile, you have product lines that are more than just ‘popular’ for your business—companies in key industries like energy, healthcare, and financial services depend on your products to even function. No matter what, you can’t afford to take time away from your core product lines.

So how do you invest in R&D sustainably, to support corporate innovation and prepare for the new, tumultuous waters that you’ll be navigating?

You need a map. You need insight from people who’ve been there and have a strong understanding of what’s ahead. The RocketSpace team has developed this perspective from working with a diversity of startups and enterprise leaders. Through our ongoing research across our global network, our worldview of the business ecosystem is one that’s based on patterns. We can help you get to your R&D and experimentation finish lines faster.

You need a map. You need insight from people who’ve been there and have a strong

understanding of what’s ahead.

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We will see fully autonomous vehicles make their full debut. We define full autonomy as the ability to travel to a destination without any need for a human driver. We expect this capability to make its debut in just four years, beginning with on-demand car services like Uber and Lyft. We explain why, later in this guide.

by 2020

With all that you have to do today, it’s hard to position your organization for tomorrow. So we’ve done the hard work for you. Here’s our vision and roadmap for the not-so-distant future:

Smartphones, as we know them today, will be obsolete. Instead, people around the world will rely on small, extremely efficient wearable devices that are powered by complex artificial intelligence networks. The AI, connected to wearables and the multitude of other devices that we cannot even imagine today, will be activated by advanced voice recognition technology and allow us to run our lives from one command center. In disbelief? We were surprised by the patterns that led to this conclusion, too.

There will be 1 billion drones in usage, completely replacing manual delivery methods. The kicker? This same technology will be the ‘smoking gun’ that gets more of the globe connected through technology. We’ll have closer global connections than any time in history. We love watching startups in this space, and you will too once you learn about the findings.

Virtual reality experiences will replicate real life experiences. Humans will be able to transport themselves to virtual worlds and react with the digital items around them. Imagine never having to commute to work again.

by 2025 by 2030 by 2035

Roadmap


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Sound a LittleFar Fetched?

We’re glad that you’re skeptical: We understand that nobody can predict the future one hundred percent. So rather than continuing on with our predictions, we’ll give you analyses as why and how we made the judgment calls that we did. Our goal is to share this insight so that you can uncover your own unique opportunities.

Here’s how Volume 1 of the RocketSpace Innovation Collective Summit Report will keep you posted:


THE FUTURE OFCOMMUNICATIONThe rise of the AI secretary and emerging augmented reality experiences

To keep up with the speed of innovation, we publish the Disruption Report every time our team hosts an Innovation Summit. We also publish a shorter Disruption Brief between summits to keep you looped into any updates that we have, as we receive them. Innovation and disruption happen quickly, and often, we’re in a position to see new nuances to emerging trends. Check in with us from time to time to learn about the themes and patterns that are pushing the frontier year after year so that your company has a much stronger sense of where to head.

THE FUTURE OF CONSUMER EXPERIENCEUsing biometrics as a signature and the new age of customer service in an increasingly high-touch world

THE FUTURE OF CONNECTIVITY AND IOT How warehouses got smart and how smart homes are getting smarter

THE FUTURE OFMOBILITYThe current state of on-demand and the future of our vehicles

The Future of CommunicationIn Volume 1 of our Disruption Brief, we touched on the major 2016 breakthroughts in gaming, media, and advertising in Virtual and Augmented Reality.

THEME 1

In This Report:

We’ll focus on emerging technologies in artificial intelligence networks and how they may soon serve every one of your administrative woes. We’re moving toward a future in which every consumer will have a virtual secretary.

We’ll expand further into advances in VR and AR, and explain why AR is poised to be the far more exciting technology in 2016. We’ll touch on the many use cases across healthcare, travel, retail, real estate and education.

In Future Reports:Cashless World (mobile and other alternative payments will dominate)

Personalized Medicine, precise gene editing (imagine designer babies or eliminating genetic diseases)

Augmented reality for industrial use cases (visualize improved precision in construction, factory, or electrical work)

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Every Consumer Will SoonHave Their Own Robot or AI Executive Assistant

DISRUPTION #1

Most people would assume that the CEO is the most powerful person in a company. But this isn’t the case. The most powerful person is actually the CEO’s executive assistant.

What is it? New artificial intelligence applications are emerging to automate semi-sophisticated yet redundant tasks. All types of people, beyond the CEO, are gaining access to software that frees up or enhances brain power. Meanwhile, business executives may no longer need assistants for tasks such as project preparation, scheduling, note taking—with new problems being solved every day. This technology is making its way to everyone, as price points are becoming more affordable. Pretty soon, every single person is going to have a bodyguard for their time and an extra set of hands. And eventually, this tech will evolve into a full-fledged robot.

At the heart of this massive opportunity for innovation is artificial intelligence tech.

Think about it: this person is the key to the CEO’s time and mind. By managing the CEO’s time, the executive assistant is the gatekeeper to extremely valuable access to information. The CEO is also better empowered to tackle big challenges and make important decisions.

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9Theme 1: The Future of Communication

DISRUPTION #1 – Every Consumer Will Soon Have Their Own Robot or AI Executive Assistant

Artificial intelligence technology is being driven by innovation in the areas of machine learning, image recognition, and natural language processing (NLP). Governments and commercial sectors are leading the charge.

US agency, IARPA, has invested more than $100 million to research ways we can make machines process information like humans as part of a much larger initiative with the BRAIN Initiative (Brain Research Through Advancing Innovative Neurotechnologies), which is a collaborative, public-private research initiative established by the White House. The goal is to develop a more thorough understanding of brain function.

In the commercial sector, technologists are also developing frameworks for machines that allow them to learn complex tasks in the same way humans do. Today, technology is pushing machines to better understand human intent so that a conversation with Siri soon seems like a conversation with your best friend.

Why Pay Attention in 2016? What’s New?

US agency, IARPA, has

invested more than $100 million to research ways

we can make machines process

information ––

In 2015, corporations and their venture arms invested over $128 million in AI investments. Companies like Google, Facebook, Apple, and Microsoft are investing heavily in artificial intelligence technology.

Funding in AI has increased more than 15% since 2010 with many innovations being driven by the commercial sector. In 2014, Google acquired AI startup DeepMind for a staggering $400 million in order to advance its capabilities in the area of machine learning. Apple recently acquired AI startups Emotient and VocalIQ in order to advance Siri’s voice recognition and human interaction capabilities.

A 20,000-foot Investment View



More than 65 percent

of Americans believe that by

2065, computers and machines

will be capable of doing most

human jobs.

As machines better learn to communicate, there will be a diminished need for humans in many service-oriented positions. If this trend makes you shudder slightly, you’re not alone. The reason? More than 65 percent of Americans believe that by 2065, computers and machines will be capable of doing most human jobs of today. Already, many industries today such as banking, contact centers, and telecom are supplementing workers with computer-aided intelligence.

Artificial intelligence is evolving at a rate much faster than many expected. Recently, Google’s DeepMind AlphaGo AI program defeated the world Go champion in a series of matches. Go is a board game that requires strategy and skill, most having held the belief that it was a game

Why Does It Matter?

too complex for machines to process. Two years ago, researchers and scientists thought that this software victory wouldn’t be possible for at least 10 years.

These impressive, yet somewhat questionable feats from Google’s AI software depict the pace at which AI technology is moving. How do corporate innovation teams prepare for the future to create more revenue streams?

Today mobile technology providers like Google and Apple are competing in order to improve personal assistance technology for consumers. By deploying technology that makes consumers more reliant on mobile devices, large device manufacturers can generate more revenue through advertising and device sales.



Skedool.it, Genee, X.ai, and Clara Labs are developing personal assistants used via email that automatically schedule meetings for users.

What’s notable about this technology is how easy it’s become for consumers to implement. Just think that 10 years ago, smartphones were just beginning to pick up in popularity.

The Startups You Need to Know

Skedool.it, Genee, X.ai, and Clara Labs

Talla is building a virtual assistant capable of performing recruiting, marketing, and office management functions.

Talla executives believe that in the future, every knowledge worker will have a virtual assistant. The company’s first virtual assistant provides human resource functions to employees. Through their smartphones, users are able to interact with the virtual assistant, asking questions related to basic HR tasks.

Talla

Viv is developing the “next-gen Siri” that can provide relevant information to users based on its understanding of voice commands.

Viv takes Siri a step further in that the technology, just 3 years old, is based on a completely open platform that allows companies and applications to connect to it. From there, Viv will pull information in order to respond to multi-part queries (such as “get me a reservation to a restaurant that my wife will like when we are both available”). It is a program that is able to write its own program (AI that can teach itself), with the ability to respond to user requests on the fly while making actionable recommendations.

Viv

skedool.itweb.genee.mex.aiclaralabs.comtalla.comviv.ai



Hu:toma is creating an artificial assistant that can engage in emotional conversations with humans. Think of the movie “Her” to get an understanding of the vision.

For business applications, the software utilizes deep learning technology to sift through company information. It then creates a custom AI assistant capable of engaging in meaningful conversation with its users. The application is meant to be both social and proactive with users.

Hu:toma

Maluuba is building a voice-controlled AI assistant that is able to read, understand, and reason like a human being.

The voice-controlled technology has found early success, having been deployed on more than 50 million smart devices. It has been working with Qualcomm, to power the voice control function in Maserati vehicles and in Qualcomm’s speaker systems. Initially the company will focus on selling its technology to automotive and IoT markets.

Windows has integrated this voice-activated personal assistant technology into its Windows Phone 8. The technology is much like Siri, enabling users to do a wide range of things, including schedule appointments, make phone calls, check the weather, search restaurants, find events, set reminders, play music, etc. As part of the partnership with Microsoft, Maluuba also integrated some exclusive mobile phone features, including “Text-to-Speech” where the phone speaks results as it’s being used.

Maluuba

hutoma.commaluuba.com



Gridspace makes it possible to record and index meeting conversations, making meetings more productive by outsourcing note-taking to a machine.

The application is able to determine which pieces of a conversation are the most important, providing conversation memos and highlights to its users. Gridspace’s technology will be deployed initially in conference rooms, and charge a monthly fee for subscribers.

Gridspace

Weave.ai makes relevant customer information available for decision making, based on real-time actions on their mobile devices.

The company can analyze and integrate data from Twitter with other relevant applications into a cohesive picture, to support more improved decision-making.

Weave.ai

MindMeld created an AI assistant that provides conversation/voice-related content to the user.

Users are able to ask the applications questions, to which it is able to respond with relevant information. The company has received notable backing from Google Ventures, Samsung Ventures, Intel Capital, In-Q-Tel, Telefonica Ventures, and Liberty Global Ventures.

MindMeld

Wade & Wendy is developing a virtual assitant that grows with employees within an organiztion and replaces many HR functions.

(We wish we could say more, but they’re in stealth mode.)

Wade & Wendy

gridspace.commindmeld.comweave.aiwadeandwendy.ai



MindMeld’s intelligent voice application technology is being used by more than 1,200 companies to create a ‘Siri-like’ experience within apps.

Currently, the company is testing a partnership with Spotify to enable users to speak to the platform, control music playback, discover content, and more. Both companies aim to give users more flexibility in their experiences.

MindMeld’s main value proposition comes from more than the company’s speech recognition capabilities. A custom knowledge graph, which gives their technology the ability to understand and interpret the intent underlying lines of speech, leverages advanced machine

Case Study: MindMeldlearning algorithms to provide the information that the user requests at a high degree of accuracy.

If successful, the partnership may expand into Spotify’s international territories, since MindMeld can understand other languages, such as Spanish, French, Italian, German, Russian and Portuguese, and is in the process of offering support in Chinese, Japanese and Korean. MindMeld’s multilingual focus opens Spotify to new markets and partnership opportunities outside of English-speaking countries.

mindmeld.com



Rainbird Technologies is a U.K.-based startup that uses artificial intelligence to automate many knowledge-based positions. The company helps enterprises take knowledge from a few individuals in an organization and encodes that knowledge into a cloud-based software platform that has the ability to “learn.” Rainbird offers unprecedented access to knowledge through an AI platform, while also improving efficiency and consistency. The company’s platform is highly scalable and has a multitude of use cases, including contact centers, risk and compliance management, operations, and sales.

Rainbird Technologies has partnered with MasterCard to develop a virtual assistant and sales advisory tool. The company’s software will capture the knowledge of its current salesforce and translate the knowledge into a virtual assistant that has the ability to learn and bring efficiency to different functions of its sales.

Case Study: Rainbird TechnologiesUsing Rainbird’s software, MasterCard will be able to make the knowledge of a single sales team accessible to the entire organization through an automated virtual sales assistant. The AI assistant will help streamline sales processes and have the ability to learn more knowledge as information is added to its company sales database. In addition to improving process efficiencies, Rainbird’s technology will improve the customer experience because it will provide a consistent answer to a specific problem. This capability eliminates one of the largest customer frustrations: receiving disparate solutions or information from different customer service representatives for the same problem or question.

Over time, the AI assistant will have the knowledge of numerous sales teams and feedback from many customers to provide sales automation and decision-making capabilities.

rainbird.ai

VR is Exciting, but AR is the Game Changer in 2016

DISRUPTION #2

Virtual Reality (VR) has long been associated with gaming, but the recent explosion of VR and Augmented Reality (AR) startups and solutions - Oculus, Magic Leap, Samsung Gear, just to name a few - has greatly expanded our mindset and opened our eyes to a world of new use cases and industries that can benefit from the technology, including education, healthcare, aerospace, and marketing.

What is it? VR puts an individual entirely into a three-dimensional, computer generated environment. Typically an individual wears a mounted headset or goggles to transport them into the virtual world where they may be able to manipulate objects or perform a set of actions.

AR, on the other hand, superimposes computer generated images over the real world. Similar to VR, it is typically experienced with a set of glasses or a mobile device that incorporates virtual objects with the real world.

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DISRUPTION #2 – VR is Exciting, but AR is the Game Changer in 2016

There’s no need to be skeptical about the hype. All the dreams that you’ve heard about are on their way to coming true. VR and AR are quickly developing mass-market reach, as consumers and businesses alike are beginning to see this technology’s ability to transform lives for the better. It’s important to gain leadership in the VR and AR market as soon as possible, as the industry is set to hit $150 billion by 2020.

2016 will be the year that the VR and AR market finally gains momentum among mainstream users and consumers. Technology leaders are set to release products that are accessible to consumers, and a much-talked about platform in 2016 will be Oculus, as more people will finally be able to touch, feel, and play with the device. Stealth startup Magic Leap, a company that is keeping its product secret, is also expected to slowly, but surely, release more and more tidbits about its activity and what they’re doing behind closed doors. AR is starting to become the space’s rising star. It’s poised

to take the lion’s share of the market, capturing $120B of the $150B market. The reason why? It’s not dependent on obtrusive headsets or goggles: from a distribution standpoint, it will be much easier to gain adoption. As a result, startups can invest their energy into developing what matters most—content quality and product/market fit for experiences.

Corporate innovation teams should expect to see a lot of momentum in key industries like education, healthcare, and defense. From interactive textbooks and immersive field trips and experiences for grade school children and high school students, to surgery and trauma practice for surgeons and combat training for the military, the use cases of AR are powerful.

That’s why the technology will touch on all industries imaginable including aerospace, construction, and more. In 2016, growing consumer adoption will push many new doors open for AR and VR companies.

What is Different (Exciting) in 2016?

2016 will be the year that the VR

and AR market finally gains momentum

among mainstream

users.



Leia 3D creates holographic and AR experiences for mobile devices without the need for additional headgear or goggles.

The company is currently in talks with a number of carmakers and other electronic device companies to have its technology integrated into their vehicles or products. The product will launch in 2017.

Since the technology can be used, deployed, and enjoyed without the need for additional headgear or goggles, it has the potential to be enjoyed by a wider audience at much cheaper price points than other options. It also has the potential for a wider range of use cases: imagine being able to talk and interact with a holographic image at the airport or ask for directions in a shopping mall.

The company raised $25M in Feb 2014 and was started by David Fattal, a former researcher at HP labs, who worked on optical interconnects (a way to use light to transport information on a chip).


Leia 3DAtheer Labs develops augmented reality glasses for assembly line workers, surveyors, warehouse employees and even healthcare professionals.

Users can see their physical surroundings and carry out their jobs more efficiently in the physical world by accessing information or data they may need to interact with in the digital world.

The glasses have the ability to overlay information such as manuals for mechanics, blueprints for construction works, and vital signs for patients. They do this through intuitive hand gestures. In contrast to the many other startups in the space that are attempting to manufacture viewing devices and goggles, Atheer’s in-depth focus on the industrial and healthcare sectors provides a revolutionary solution that can increase efficiency while reducing human error and on-the-job injuries.

Atheer Labs

leia3d.comatheerlabs.com



Magic Leap is one of the most well known and highest funded startups in the space, but they’re still operating in stealth.

The company has made big promises to the public to deliver revolutionary VR tech and has raised $1.4B in funding. What the public does know is that “they are developing a cinematic VR device.” Everything else remains a secret.

The company has made its technology available to select investors and brands, partnering with design studio Weta Workshops to build games. Google was so impressed with the technology that they made the decision to lead Magic Leap’s $542M Series B round in October 2014.

The company’s last funding was a $740M Series C round in Feb 2016 (reportedly the largest Series C round in history) led by Alibaba.

Magic Leap

magicleap.com



Oculus is one of the most well known startups in the space, having been acquired by Facebook in March 2014 for $2B.

Before its famous acquisition, the 17-year old founder, Palmer Luckey, took his prototype to the crowdfunding market and raised an astonishing $2.4M on Kickstarter. Since its acquisition, the company has been working with Facebook to further develop the technology and finally started taking pre-orders earlier this year with first shipments expected by the end of March. The goggles can be purchased for $599, but reportedly they require a high-powered PC to run the technology, so a goggle + PC bundle is available for $1,500.

OculusBlippar uses AR and image recognition to allow users to interact with the world around them using a mobile device.

The company works with brands and other companies to make things “blippable”—a process that makes it possible to interact with consumers through everyday objects (i.e. newspapers, textbooks, products, etc.)The company works with a number of brands for marketing campaigns, including Coca-Cola, Pepsi, L’Oreal, Nestle, Disney, Sony, Walmart, and Lexus. The technology has also been used in elementary schools to help students interact with textbooks.

Blippar

oculus.comblippar.com



Meta is an augmented reality headset that provides a full 90-degree field of view with high resolution displays.

Meta enables true hand and gesture interaction with digital content, so people can touch, grab, and move digital objects intuitively, just as they do in the physical world. Imagine the use cases for industries like healthcare and education.

Meta

Discovr Labs creates immersive learning experiences that allow users to explore the ancient world in a virtual environment.

The company is a graduate of Rothenberg Ventures first class for their Virtual Reality Accelerator and is focused on changing the way people digest educational content and creating an entire market of immersive digital content.

Discovr Labs

Penrose is quickly becoming known as the “Pixar” of virtual and augmented reality.

Up until now, VR content largely consisted of two types of experience: immersive/semi-immersive video games and 360-degree videos like documentaries, concerts, and historical landmarks. Penrose is moving past this mold by creating “storytelling” technology to walk and physically move in immersive spaces. For example, they’ve created “The Rose and I” for the Samsung Gear VR app, an experience that allows users to browse a virtual space and direct the way they view the story.

The company also takes these immersive stories and creates “toned-down” versions for AR experiences for mobile and desktop. Penrose was founded by former Oculus executive Eugene Chung and has raised an undisclosed Seed round in November 2015.

Penrose

metavision.comdiscovrlearning.compenrosestudios.com


Blippar works with more than 1,000 brands, including beer behemoth Budweiser. The company is integrating Blippar’s technology into its packaging and marketing materials to interact and engage with customers.

“Blippable” images have appeared on Budweiser beer cans, packaging, posters, and images on the Internet. Customers simply use the Blippar app and scan any blippable item. They then see a number of different experiences they can enjoy, including behind the scenes video content or special offers.

Budweiser partnered with Blippar in its 2013 ‘Blipping the Bowtie’ philanthropy campaign.

Case Study: BlipparThe goal of the partnership was to reach consumers in a new, innovative way by delighting them with the most cutting-edge technology available. In 2015, Budweiser partnered with Blippar again for its ‘Free-Kick Game’ promotion, which was held in conjunction with Buffalo Wild Wings.

Blippar was recently named amongst the top 21 most innovative startups in tech by Business Insider and is one of the best-funded startups in the United Kingdom. Ambarish Mitra, the company’s CEO, intends to eventually add internet search capabilities to the app, enabling users to search for information by just taking a photo.


blippar.com


Atheer Labs joined forces with Dassault Systemes, a French-based company that provides businesses with 3D solutions and technology.

The partnership will enable Dassault customers to view and interact with immersive 3D projects with Atheer’s AiR Smart Glasses while collaborating with peers in real time. Unlike other smart glasses on the market, Atheer’s AiR Smart Glasses provide a fully immersive 3D experience. The glasses are also comfortable and minimize eye fatigue, allowing users to wear the glasses for hours at a time.

Case Study: Atheer LabsBy using Atheer’s glasses, Dassault hopes to expand and improve the 3D experiences that are already available to customers. The goal is to help users experience natural and hands-free interactivity (the technology will be especially valuable for workers or employees on the move). Users will be able to interact with both 2D and 3D content using natural hand gestures. Applications of the tech span the medical, aerospace, automotive, and oil and gas industries.

In addition to its partnership with Dassault Systemes, Altheer is also working with KPIT, Optech4D, TeamViewer, Lumus, Nvidia and Vuvix.


atheerlabs.com

THEME 2

The Future of Customer ExperienceIn Volume 1 of our Disruptive Brief, we saw how companies are using data from both physical-world sensors and digital services to learn about their users (and transform retail shopping experiences as a result). Imagine a world where products and services are tailored to every individual’s current contexts and needs. It’s an immeasurable value proposition that will open a number of doors for corporate innovators in both B2C and B2B contexts. After all, there’s an opportunity to build an entire ecosystem.

In This Report: We’ll discuss the accelerated adoption of biometrics in everyday devices, including how this technology will radically modify the consumer experience.

We’ll explore the evolution of customer service and the digital platforms that can help consumers become happier and more loyal to brands.

In Future Reports:The evolution of the blockchain and how it will move beyond financial service use cases.

New ways social media networks are changing advertising.

Robotics’ impact in the retail and services industries.

A look into how energy is impacting smart homes.

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Biometrics as a SignatureDISRUPTION #1

The market size for biometrics is expected to exceed $24B in the next six years, according to Grand View Research. Many experts predict that the demand for this technology will surge, especially with respect to e-commerce and payments.

Increased demand will stem from higher adoption rates of burgeoning Apple Pay and Samsung Pay networks. These technologies introduce a powerful value proposition to both merchants and consumers: the ability to expedite checkout processes. Fingerprint authentication, through biometric sensors, will simplify processes while further improving security. Thanks to these value propositions, 2016 will be a pivotal year in terms of consumer demand for the tech.

Why Will 2016 Be Pivotal?

Biometrics is the measurement and statistical analysis of people’s physical and behavioral characteristics. The field relies on technology that captures physical and behavioral traits for identification and other purposes.

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26Theme 2: The Future of Customer Experience

DISRUPTION #1 – Biometrics as a Signature

Biometric screening devices will start within the smartphone market and expand from there. Companies are expanding beyond fingerprints to include face, voice, and eye recognition technology. Security remains a key concern as companies like Apple and Samsung continue to improve the technology to ensure that biometrics are resistant to fraud.

Startups are currently testing other emerging technologies include heart-print and heart-signature scans, vein pattern recognition, and even ear-geometry authentication (tying your signature to your ears). Imagine walking straight through a security checkpoint that instantly verifies you quickly by the heartbeat registered on your wearable, or by gaining access to your laptop by allowing it to scan your palm.

Finally, corporate innovation teams should keep their eyes peeled for “under-glass sensing” technologies (such as ultrasound). These methods continuously improve identification levels and authentication security—for instance, in contexts when variable factors such as moisture, dirt, or oil are on a user’s fingers.

What’s Emerging? What Matters?

Imagine walking straight through

a security checkpoint that

instantly verifies you quickly by the heartbeat.



Payments and Finance. In February of this year, Visa announced a partnership with Morpho (Safran), with the goal of exploring how biometric authentication technologies can enable secure and convenient payments. New concepts include powerful biometric hardware, such as contactless scanners for proximity payments. In other words, transactions can initiate with the wave of a hand.

Enterprise Services. Thanks in part to the pioneering work of Apple’s Touch ID system, fingerprint scanners are now standard features on mid-to-upper range smartphones. As a result, many employers are already equipped with potential time tracking devices using biometrics. For example, Paychex, an employee management platform, recently announced integration of biometric time punching into its platform. Workplaces as diverse as industrial sugar mills to retail bakery chains

are experimenting with technologies ranging from fingerprint reading to eyeball scanning for employee tracking.

Retail. For any organization, workforce authentication and management is a huge expense and time sink. That’s why companies are re-imagining their workforce management processes using biometric tech, especially to monitor part-time and seasonal workers, in addition to year-round contractors.

Healthcare and Hospitality. Biometrics allows for real-time information and visibility into customer patterns (i.e., arrival and departure times). As a result, companies can automatically capture and monitor trends over time. Moreover, biometrics can help prevent and tackle security breaches.

Key Markets

Companies are re-imagining

their workforce management

processes using biometric tech.



Last year saw some major investments in the biometrics space, most notably through Series A and B funding rounds. A few notable examples:

Tascent raised a Series A round for $18.5 million, expanding its iris-recognition and mobile biometric solutions into airports and other government enterprises.

Face++, a facial recognition software based in China, raised a Series B round for $25 million, looking to grow commercial applications beyond payments and authentication and further into traditional banking.

FST Biometrics, a biometrics security suite for facial, voice, and motion detection, raised a $15 million in venture funding to expand its technology into enterprises with multiple chain locations such as banks, and other highly secure government institutions.

CrossChx, a fingerprint-based patient identification system, raised $15 million in Series B funding.

A 20,000-foot Investment View?



Face++ is a Chinese facial recognition company that offers an API, SDK, and custom cloud services to companies of all sizes.

More than 30,000 developers and some of the largest companies in China such as Alibaba are relying on Face++ to pave the way for facial recognition in everyday contexts.


Face++Noatta develops a contactless palm-vein- based authentication device, which is already being tested in Silicon Valley gyms and membership facilities.

Given that it’s impossible for fraudsters to forge palm veins, new use cases of the technology are emerging beyond payments and identifications.

NoattaDelta ID enables iris recognition through simple, inexpensive, and easy- to- integrate hardware for smartphones.

The tech can unlock a phone in less than 150 milliseconds, pushing the boundaries for smartphone eye verification use cases.

Delta ID

faceplusplus.comnoatta.comdeltaid.com



Descartes Biometrics is a biometric security solutions company that is pioneering ear recognition software for authentication.

Ears are unique and less likely to change over time, compared to fingerprint and especially facial recognition software. The company recognizes this potential for simplicity as key to the future of authentication software—tech that only needs a camera and no additional hardware.

Descartes Biometrics

Sonavation is fingerprint recognition that uses ultrasound detection, negating the need for passwords and keys.

Sonavation is a pioneer in fingerprint sensors, developing a technology that can bond 3D scanning sensors directly under glass surfaces and transform security on smartphones and IoT devices as a result.

Sonavation

Vkansee is ultra-thin fingerprint sensor scanning and security technology that can capture high resolution images at 4x the pixel rate of industry standards from companies like Apple.

The sensor is so thin that it can be integrated beneath the front cover of almost any smartphone or tablet, recreating how phones of the future can be designed.

Vkansee

vkansee.comdescartesbiometrics.comsonavation.com



FingerCheck is an online, biometric-enabled tracking and payroll system for businesses.

It incorporates both time tracking and payroll processing capabilities to translate internal punch data into payroll data. The end result is an automated process, meaning less room for costly human errors.

FingerCheck

FST Biometrics combines facial and behavioral recognition with a database of profile data to authenticate users while they are in motion.

FST cameras and identification software can also be integrated with most camera and security systems, making user access seamless for any location.

FST Biometrics

CrossChx is a patient ID solution that ties a patient’s medical records to a single user ID.

The technology identifies and calls out possible errors in their records. It comes bundled with a convenient lobby kiosk with fingerprint scanning, completely changing the lobby waiting experience at clinics and creating a smoother check-in process.

CrossChx

fingercheck.comfstbm.comcrosschx.com


Tascent has developed an advanced iris recognition system that is capable of both fixed and mobile recognition.

Its product, Insight Duo, uses a simultaneous iris and face capture process that enables recognition in 4 seconds or less. Tascent uses a human-centric approach to product and interaction design for its iris scanners, focusing on speed, ease of use and high accuracy. To date, no biometric system comes with all 3 traits.

Case Study: TascentTascent’s goal is to completely transform the flying experience, using its system to expedite airport security processes and provide enhanced services inside airplane cabins. The software also supports an efficient cost/time savings options for program registration. Clients already include Dubai International Airport, London Gatwick Airport, and a number of high-security facilities in the United States.


tascent.com


Nymi is a first- of- its- kind wearable device that authenticates a user based on their unique cardiac signature through an electrocardiogram (ECG). By developing biometric scanning tech that only needs a person’s heartbeat, the company hopes to eliminate the need for passwords, PINs, cards, and even keys. Unlike iris or facial-recognition technology, which require users to physically authenticate every time they wish to unlock something, Nymi is ‘always on,’ creating experiences that are

Case Study: Nymimore seamless for consumers.Supporting NFC capabilities for contactless payments, Nymi has already partnered with TD Bank Group, RBC, and MasterCard to test related services. Meanwhile the company is also exploring new enterprise use cases, such as authenticating “privileged accounts” for system administrators and executives who manage sensitive accounts at large organizations.Nymi raised $14 million in Series A funding in late 2014.


nymi.com

Customer Service Goes VirtualDISRUPTION #2

Customer service and relationship management are at the heart of any business, of any size.

In the new, digital age, customers have endless connections and channels through which they can voice their opinions, sentiments, and experiences. Be prepared for tough criticism and feedback that is always publicly available.

Brands need to leverage new technologies and solutions to better meet customers’ evolving expectations while also maintaining brand equity and exceeding salesand profit goals.

What is it? New technologies are helping companies re-imagine, streamline, and improve their interactions with customers.

New communication channels and touchpoints through chat, video, social media, text messaging, automation, and predictive analytics are helping brands improve interactions with customers at every touchpoint.

34


DISRUPTION #2 – Customer Service Goes Virtual

Customer service has always been an important aspect for any company. However, new IoT capabilities have created a number of solutions that enable companies and people to communicate more effectively. As a result, companies can understand their customers on a deeper level.

While customer service conversations through email, live chat, and social media aren’t new, conversations with machine-based agents are. AI, machine learning, and NLP capabilities have created the next generation of customer service. Going forward, consumers will no longer call, text, or chat with humans when calling for support. Instead, they’ll be speaking to human machines with the exact same voice and feel as one.

These technologies will help brands streamline and manage their customer service while saving time and money on workforce and training. As a result, companies will have more more resources and energy to devote to providing the very best products or services imaginable.

Consumers are and will always be in charge as decision makers: they have the power of choice.

Bad customer service experiences will ding your retention rates while impacting your brand’s reputation, leading to a potential decline in the space.

What to Expect in 2016

Going forward, consumers will no longer call,

text, or chat with humans

when calling for support.

Why It Matters



Freshdesk provides companies with customer service solutions for phone, web, email, chat, and social media.

With over $95M in funding, the company is a clear leader in the customer support space and has increased its user base by 10x over a two-year period. Today, there are more than 40,000 customers including the likes of Cisco, Honda, 3M, and Sony.


Freshdesk

Service enables on-demand support and is designed to provide a middle layer between companies and customers.

The platform allows customers to file a claim and any supporting documents such as emailing receipts. A representative agent then contacts the company on the customer’s behalf and keeps the customer in the loop over email. It’s a concierge-like experience that is designed to provide smoother customer experiences.

Service is exploring how to utilize geo-location tech to offer help based on a user’s location, i.e., after a flight or hotel stay, and has partnered with companies like Uber and GoDaddy to explore and implement some of these challenges. To date, the startup has raised $3.1M in seed funding, with investments from Menlo Ventures and Founders Fund.

Service

freshdesk.comgetservice.com



ALICE is a guest experience management platform that enables hotels to deliver exceptional service.

The company integrates all aspects of hotel management together into one cohesive picture. Users of the technology have a single view into front desk, housekeeping, maintenance, and more. Meanwhile, hotel guests can use the technology to communicate with staff through text messages.

The company has raised $13M, including a $9.5M Series A round in January 2016, led by Expedia. Future plans include a proposed expansion into other verticals, including shared spaces and residential buildings.

ALICEIntercom is a platform that makes it easier for companies to communicate with and share information about their website audiences and customers.

The company has created a solution that builds the following types of connections: (1) across companies to help teams coordinate seamlessly, (2) directly with products, so that companies can connect with customers when they are using the product, and (3) through data, so companies can learn all about their customers from one place.

Intercom has $65M in funding, including a $35M Series C round in August 2015. The company boasts over 8,000 customers such as Shopify, Namely, General Assembly, Ancestry, and YAHOO!

Intercom

intercom.ioinfo.aliceapp.com



Beyond Verbal is an “emotion analytics” company that can figure out the mood of a person who is speaking into a phone, microphone, or voice-controlled app.

With an algorithm, the technology can detect human emotion, intent, and personality elements to provide actionable recommendations and to read people between the lines. The company has raised over $7M in funding by Israeli-based early-stage VC firm Winnovation.

Beyond Verbal

Eyeris is an emotion recognition software company that uses deep learning to read facial micro-expressions.

This technology enables everyday devices to better understand how its users feel and relies on a proprietary dataset of versatile physical and environmental characteristics that are critical to achieving emotion recognition accuracy. Moreover, the software’s ‘live’ algorithm learns from every video that it processes to improve its understanding of how people feel.

Eyeris

beyondverbal.comemovu.com


DigitalGenius uses AI and NLP to help companies automate and semi-automate their customer support through email, social media, and mobile messaging.

The company recently partnered with BMW to support marketing and sales for two of their news vehicles: the fully electric BMW i3 and the plug-in hybrid BMW i8 sports car. BMW uses DigitalGenius to power its own software, BMW iGenius, which interacts with potential customers in a live question- and- answer format, across mobile, web, and social media platforms. Users simply type in a question relating to the new vehicles and BMW will instantly respond.

Case Study: DigitalGeniusThe software is capable of understanding each question and responding accurately every time, just as if the shopper was talking to an expert from the company. Consumers can ask questions about the car at any time of day, without the hassle of picking up the phone or walking into a dealership.

So what were the results?

In one campaign, BMW tracked an average response time of 1.2 seconds at a 99.5 percent accuracy rating. The platform was eventually able to get potential customers into the dealerships and into the seats of test-drive vehicles; in total, DigitialGenius scheduled hundreds of test drives.


digitalgenius.com


Freshdesk creates versatile support and helpdesk software for companies that process inquiries at a high volume per day.

Customers come to Freshdesk when they’ve outgrown email as a platform to support communication and workflows with customers. Pearson, one of the largest publishing houses and education companies in the world, came to Freshdesk, for instance, after teams began feeling bogged down by existing workflows and tools. Without a systemized process to track, manage, and

Case Study: Freshdeskreply to customer inquiries, the publishing leader was wasting time.

Within minutes, the Pearson team was able to transfer all the emails coming into their existing customer support system into Freshdesk’s platform. The startup added much needed automation capabilities to Pearson’s workflow, making it possible to automatically send queries to the right person in time and to categorize, prioritize and assign every incoming support ticket with little to no manual work.


freshdesk.com

The Future of Connectivity + IoTVolume 1 of our Disruptive Brief explored how the insurance industry is undergoing a big transformation due to consumers shifting away from traditional property ownership models towards short- and long-term rentership models.

THEME 3

In This Report:

We will discuss how drones and advanced robotics can help turn warehouses into fulfillment centers of the future.

We will discuss Smart Homes 2.0 and how 2016 will move beyond device connectivity towards a voice- automated concierge layer.

In Future Reports:

The extension of 3D printing beyond consumer electronics

Data analytics in manufacturing

How advances in agricultural tech will change farming

41

The Warehouse Just Got SmartDISRUPTION #1

Many consumers perceive warehouses as locations for unshipped items and nothing more. But a ‘behind the scenes’ of one of Amazon’s or DHL’s fulfillment centers will reveal an intricate mix of artificial intelligence, machine learning, computer vision, data analytics, and sensor technology.

What’sNew in2016?

Robotics: Warehouses and distribution centers will have more than humans working the ground floor. New robotics technology integrates seamlessly into human-powered and machine-powered operations, creating a new layer of automation. Companies like Walmart are testing this technology on the ground floor and in the sky (i.e., drones) to improve logistics. With the way technology is headed, there may come a day when a package never touches human hands.

Distributed Sensor Networks: Sensor technology is improving while price points are lowering. Meanwhile, companies are testing use cases of this tech within warehouses for asset monitoring, tracking, and optimization. The hunger for new solutions has never been stronger.

Today, most associate automation of distribution with last-mile delivery, with startups like Matternet, Flirty, Dispatch, and Starship Technologies paving the way for the future. But with only a tiny number of warehouses being automated today, major opportunities exist for solutions that increase warehouse productivity and efficiency.

42

43Theme 3: The Future of Connectivity + IoT

DISRUPTION #1 – The Warehouse Just Got Smart

Robotics: Smart robots in logistics will improve worker efficiency and product delivery times. For instance, Kiva robots at Amazon’s fulfillment centers are enabling workers to perform work at a rate that is 2-3X typical speeds. In addition, companies like Rethink Robotics, Carbon Robotics and Universal Robots have developed robotic arms that are working alongside employees to enhance employee productivity.

Warehouses are typically labor intensive and require seasonal staffing. Yet the deployment of smart robots can eliminate the need for workers performing redundant/repetitive tasks and mitigate hiring worries during seasonal upswings, as a result. Improvements like this yield cost savings that were previously impossible.

Distribution centers will also have robots in the air. Companies are experimenting with the use of drones in warehouse operations for tasks like inventory management. With the ability to transport objects in the air, companies will begin to rethink the design of their distribution centers.

Distributed Sensor Networks: Sensors lessen the need for in-person inspection and monitoring, which means that employees will no longer need to travel to warehouses and complete inventory reports by hand.

With IoT sensors, managers can capture, manage, and analyze data from remote locations. Companies can upload the information that they’re tracking to the cloud, track products throughout the supply chain, and ensure that all managers have transparency into the multiple converging aspects of warehouse operations.

Why It Matters

With IoT sensors, managers

can capture, manage, and analyze data from remote

locations.



Robotics: The International Federation of Robotics predicts that by 2018 the industrial robotics industry will grow by 15 percent. But this trend shouldn’t come as a surprise: early signs of movement in this area included Amazon’s $775 million acquisition and deployment of its autonomous Kiva robots. ARC Research predicts in 2016 two or more companies will deploy autonomous robotics in a similar fashion to Amazon.

Looking at the wider robotics industry, overall funding reached almost $1B in 2015, a 170 percent increase over 2014. Most of the VC funding went to medical robotics companies and drone companies, but some emerging areas like agriculture and service robots also receieved interest.

Distributed Sensor Networks: GE, IBM, and Cisco are leading the push to develop the infrastructure for the Industrial Internet of Things (IIoT). However, startups in the space are receiving notable funding. Startup funding for IIoT grew 83 percent in 2015, and the general IoT space has accumulated over $7B in total funding across 887 deals in only six years.

A 20,000-foot Investment View?

Looking at the wider robotics

industry, overall funding reached

almost $1B in 2015.



RoboCV is creating autonomous warehouse robotics that eliminate the need for people in repetitive or unproductive tasks. The company’s automated order picker and pallet truck can navigate distribution centers with minimal human oversight. Companies like Samsung and Volkswagen have worked with RoboCV on various industrial projects.

The Startups You Need to Know: Robotics

RoboCV

Fetch Robotics created two types of robots that can be used to fulfill shipping orders: Fetch and Freight. Fetch picks orders off the shelves, while Freight delivers the orders to specified locations. Both can work autonomously or alongside human workers in a warehouse, gathering items needed for shipment.

Fetch RoboticsHarvest Automation was formed by former iRobot executives and creates robots that increase worker productivity while lowering fulfillment costs. The robots support almost any workflow and can be added to distribution centers as needed.

Harvest Automation

Clearpath Robotics builds autonomous mobile robotics solutions to automate the dull, dirty, and dangerous. The company’s self-driving robot, Otto, is capable of carrying heavy payloads and navigating autonomously in warehouses. It can transport up to 3,300 lbs at a speed of up to 4.5mph. Currently, Otto robots are being deployed in five General Electric test facilities.

Clearpath Robotics

robocv.comfetchrobotics.comclearpathrobotics.comharvestai.com



Helium developed a sensor network designed around a custom radio technology designed for corporate customers. The company’s smart sensors can be used for various applications like monitoring temperature, contact, vibration, and proximity.

The Startups You Need to Know: Distributed Sensor Networks

Helium

Cargosense is a Software-as-a-Service (SaaS) company focused on providing supply chain intelligence that helps optimize logistics networks. The company aims to reduce product loss, transportation and packaging costs, and liability while making data more accessible.

Cargosense

helium.comcargosense.com


Locus Robotics has introduced the world to robots that work alongside humans.

The company’s primary focus is to increase a single warehouse’s’ capacity to fulfill orders, with solutions focusing on key metrics such as units per hour (UPH), cost per unit (CPU) and service level agreements (SLA). Unlike more generalized software or hardware solutions, Locus is made to work specifically in warehouses right out of the box. It also easily integrates with existing systems to receive work and intelligently decide how to prioritize requests most efficiently. This technology allows Locus to be 5-8X faster than traditional RF picking. The Locus robots also readily adapt to existing warehouse infrastructure and do not need specialized shelving, racking or workstations in order to conduct their roles effectively.

Case Study: Locus RoboticsLocus was named to the Robotics Business Review’s RBR50, its annual list of the 50 most innovative robotics companies in the world. While Amazon has bought Kiva Systems, Locus Robotics aims to make available similar robotic technology to small retailers, allowing for the entire ecosystem to participate in the smart warehouse transformation.

Locus continues to perfect its systems with continued warehouse testing. The startup currently has at least 10 robots in action, with an intention to grow that number even more in 2017. Locus’s robot staff already handles client projects and is looking for additional customers in the coming year, making the company a prime target for retailers looking to cut their distribution times.


locusrobotics.com


Samsara’s warehouse sensor solutions are centered around the concept of simplicity.

Only 10% percent of large corporations are using IP-based industrial internet technology. The other 90 percent use older solutions that work with certain smart devices but aren’t able to scale effectively due to financial, labor, and time constraints.

Samsara offers a sensor solution with connected sensors using Bluetooth along with custom software to get all the information collected from the sensors online. The company also offers technology that allows customers to communicate with the sensors on the ground directly through the online interface. By offering the full integrated suite of technologies involved in the sensor deployment and analysis process,

Case Study: SamsaraSamsara provides a cohesive way for warehouses to overehaul their outdated systems in one go.

Right now, Samsara is focused on deploying solutions in the food and medicine space to help monitor temperatures in storage spaces. The company plans to explore a range of other use cases such as water leakage monitoring and chemical imbalances in industrial spaces. With the help of Samsara’s sensors, corporations in a variety of industries will be able to monitor their infrastructure with a singular interface that provides real-time notifications. Security and management processes that, in the past, required a range of technologies and a ton of manual processes are made highly efficient through Samsara’s solution.


samsara.com

The Smart Home Keeps Getting Smarter

DISRUPTION #2

The concept of a smart home has been here for a while, thanks to the success of DIY connectivity platforms like Smart Things (acquired by Samsung), Nest (acquired by Google), and Dropcam (acquired by Nest). While these companies (and a few others) have staying power with both strong brand name backing and multiple partnerships, new entrants are paving their path to success by introducing competitive differentiators.

What’sNew in2016?

In 2016, the smart home space will witness market maturation, consolidation in the space, and smaller investment dollars going to new startups. There will be an increased need for companies to create point solution devices, complete systems, or horizontal offerings while introducing very specific use cases that consumers recognize as strong value adds at home.

The smart home of 2016 and onward goes beyond just device control, connectivity, and fancy devices like smart locks or bulbs to instead recognize exactly what consumers need and want automated. Voice recognition and control is one prominent emerging theme, especially with several major companies unveiling products with voice-control capability enabled by devices like the Amazon Echo and its AI assistant Alexa that provide what users want, instantly.

Another emerging theme for 2013 is the layering of concierge- and commerce- style services, powered by an AI backend and enabled by business partnerships to build a wider ecosystem.

49


DISRUPTION #2 – The Smart Home Keeps Getting Smarter

This year represents the beginning of a true breakthrough in the smart home market. Take a look at the telecom industry, for instance. Market revenue is concentrated downstream, where Apple, Netflix, and other end-user applications play. Meanwhile, telecom operators are fighting for access into this lower margin area of infrastructure—a market opportunity that smart homes enable.

For example, August, the developers of a smart lock and video doorbell and other security related products, announced a new platform that integrates with third- party service providers. Current partners include Postmates for delivery, Wag! for dog-walking, HelloAlfred for personal assistant activities like groceries, BloomNation for flower delivery, and Sears among several others. Service providers can enter homes with a temporary digital key.

Amazon is another noteworthy example. By pushing Alexa into smart homes, Amazon is gaining control over how users interface with their smart home platforms, enabling consumers to access products seamlessly. This model opens doors for an eventual commerce and concierge layer to the infrastructural layer that Apple and Google have led the charge in developing.

By pushing Alexa into smart homes, Amazon

is gaining control over how users

interface with their smart home

platforms.

Why It Matters



Keecker is a robot replacement for TVs, stereos, and home monitoring systems. It can project a TV, laptop, or mobile screen onto any wall for home decoration, security, or everyday monitoring.

The company’s plan to release SDKs, create new apps, and increase customization gives Keecker the potential to be a complete home robot and assistant.


Keecker

Eight makes smart mattress covers that monitor sleep patterns while monitoring user preferences to automatically adjust temperature. Sensors track various biometrics including body temperature, heart rate, and breathing. Unlike traditional sleep monitoring solutions that require the user to either wear something to bed or sleep with their phone on their mattress, Eight is a mattress cover that looks and feels like any other mattress cover.

It can also connect to other smart home devices, like Spotify and Nest, to create a more ideal living environment. The company had one of the highest funded crowdfunding campaigns, raising over $1.2M on Indiegogo.

Eight

Knocki transforms any surface (i.e., walls, tables, and doors) into remote controls for connected devices with a simple knock, eliminating the need for apps or switches to control lights, alarms, thermostats, and more.

The device can recognize 10 different patterns of knocks and taps, allowing for the complete customization of redundant tasks. For example, a user can knock twice to turn their nightstand lamp off or three rapid-fire knocks could turn the tv on. The startup won the Entertainment Technology Pitch Contest at SXSW this year.

Knocki

eightsleep.comknocki.comkeecker.com


August designs products and services that let everyday people monitor and manage entry to their homes from anywhere in the world.

Home security company ADT announced in January of this year that they will integrate August smart locks into their Pulse platform. August’s integration with Pulse will allow ADT subscribers to manage their home security from their mobile phone.

Case Study: AugustThe partnership will also include integration of August smart locks into Canopy, ADT’s security-as-a-service product. August will be the exclusive smart lock provider for integration with Canopy and will give subscribers a 24/7 connection to ADT’s expert monitoring and live support. The shared hope of the two companies is to redefine the next generation of security for the connected world.


august.com


Stringify connects users’ physical and digital lives into one user-friendly platform and integrates with a number of apps and devices, including Yelp, Amazon Echo, Lifx, Evernote, Nest, and more.

For example, a user could tell Stringify to Yelp three great restaurants in close proximity, request a notification of where a car may be parked, turn on the coffee machine, or play a specific song on Spotify.

Connected products will soon overtake mobile phones in both market size and impact on human life. Stringify is working on becoming the platform that lets consumers and developers connect and seamlessly manage their digital and physical lives.

Like August, Stringify is an ecosystem play, allowing for hardware products to connect using iPhone (and soon, Android) apps. Within a single application, users can manage and automate their devices. Using ‘If this then

Case Study: Stringifythat’ logic, Stringify users are able to set rules and triggers for sets of personal preferences and device actions. Stringify allows for multiple parameters within devices as well, allowing several triggers to instigate an action or allowing a single trigger to initiate many actions.

Stringify integrates with many smart products on the market including Fitbit, Philips Huge light bulbs, Nest devices, and Amazon Echo. It also works with digital services likes Reddit, Slack and Google Drive, opening up the connected ecosystem to more than smart hardware products. Because of Stringify’s reach into a host of products, services and industries, it presents an exciting opportunity to corporations looking to make a huge impact through a single partnership. With user setup presenting a major obstacle, corporations that pre-integrate Stringify into their products or enable the app’s process to become more seamless will quickly reap the benefits of Stringify’s wide-reaching business model.


stringify.com

THEME 4

The Future of Mobility + TransportationVolume 1 of our Disruptive Brief examines the transformation of the “last mile” in goods transportation, including using newer, crowdsourced delivery models and drone technologies.

In This Report: We’ll discuss the new age of on-demand ‘everything’ and the collaboration economy.

We’ll discuss the future of consumer vehicles, which, over the long-term, will become all-electric, fully connected, and completely autonomous.

In Future Reports:How the hyperloop reality will transform train travel

The re-emergence of the commercial space

The future airport and accompanying changes in technology 54

On-demand Economy and Collaboration Technology

DISRUPTION #1

Years ago, the release of telepresence robots that gaive users a physical presence anywhere in the world caused customers to ‘ooh’ and ‘ahh.’

Intuitive Smartphone and Desktop Applications:Technology companies are taking this concept a step further. Through intuitive smartphone and desktop applications, people can easily run day-to-day activities of their work and personal lives without having to step foot away from home.

On-demand and Collaborative Technologies:With on-demand and collaborative technologies, professional service providers are finding less of a need to travel to an office, and are being given greater mobility to serve consumers. Pretty soon, the idea of being confined to an office cubicle will become a thing of the past.

Immediately companies realized that they may no longer need to maintain a physical office presence. Why have one when you can be remotely present through the simple connection of a machine?

55

56Theme 4: The Future of Mobility + Transportation

DISRUPTION #1 – On-demand Economy and Collaboration Technology

The On-Demand Economy: Service startups are springing up in almost every sector. The company Service, which recently launched at this year’s SXSW, announced that waiting in line for concert tickets or to book a table at a restaurant will soon become an action of the past for some consumers. Now, it’s possible to find a replacement through an app.

Technology that enables on-demand services are also creating new channels of revenue for professional service providers, while creating new markets and industries, at the same time. This technology will be essential for the growing freelance and services economy.

The on-demand economy benefits service providers as well as consumers. Service providers have the ability to be their own boss and can set their own hours and serve their own customers. On the other side of the equation, the business model helps consumers make the most out of their free time and get tasks done faster.

What’s Exciting in 2016?

Service providers have the ability to be their own

boss and can set their own hours and serve their

own customers.

Meanwhile, employees at corporations benefit, too. Using on-demand services, employees have the flexibility to work from home or remote locations and are effectively able to engage in work through innovative collaboration platforms.

Workplace Collaboration Technology: Cloud-based collaboration tools are eliminating the need for the modern day cubicle. Companies like Slack, Asana, HipChat, and Symphony are disrupting the modern day office, improving worker productivity and increasing the global footprint of the enterprise. Collaborative technologies are enabling remote presence capabilities for organizations while at the same time digitizing enterprise processes, eliminating the need for paper manuals or documents.

Quiip helps employees collaborate and receive feedback in real-time, no matter where they are in the world. With technology allowing employees to be remotely present at all times, today’s workforce is constantly plugged into and engaged in enterprise operations.



The On-demand Economy: On-demand business models focus on the speed and price at which services are obtainable. Innovation in the space, as a result, will be around efficiency and value delivery.

With on-demand technology providing user insights like location, peak hours, and information never thought to be obtainable, an emerging “data” layer is coming to fruition. Companies can utilize the data supplied from consumer insights to create new products and business models to maintain market leadership.

Workplace Collaboration Technology: With knowledge proliferating and email inboxes overflowing, there is a growing need to enhance worker communication and eradicate silos. Collaboration technology has the potential to increase enterprise transparency while also eliminating unnecessary meetings, ad-hoc conversations, and unproductive phone calls. The technology improves faster decision-making in organizations and helps keep employees in-the-loop.

Why It Matters

With on-demand technology providing

user insights like location, peak hours,

and information never thought to

be obtainable, an emerging “data”

layer is coming to fruition.



The On-Demand Economy: With only 20 VC investors in 2010, and more than 200 in 2015, the on-demand economy has exploded. More than 400 companies exist in the space, and funding hit its all- time high in 2015, with investors funding $17.8 billion in on-demand startups. However, with the beginning of 2016 off to a rocky start—with notable players including DoorDash and Postmate having hiring problems and SpoonRocket shutting its doors—some investors may find themselves cautious of this emerging technology.

Even in the midst of struggle, however, the on-demand economy is here to stay. In fact, it will actually become much stronger, building on a foundation that has market purpose going forward. Companies will continue to fall off in markets such as ridesharing and food-delivery—both sectors being oversaturated with startups and consumer options. However, there is strong

20,000-foot Investment Trends

With only 20 VC investors in 2010, and

more than 200 in 2015, the on-demand

economy has exploded.

opportunity for growth in industries like healthcare, legal, and manufacturing, that are looking at ways they can utilize the new business model for consumers and the enterprise.

Workplace Collaboration Technology: Investors are looking at ways they can participate in this emerging market, which is expected to be worth nearly $74 billion in 2019. Look at the success of enterprise collaboration tool Slack, for instance. The company most recently raised $160 million, valuing itself at $2.8 billion. As the company achieved incredible viral success, it announced the creation of its $80 million in the latter end of last year. The fund will help support startups and applications that are built on the framework. One reason for the company’s success, is it helps eliminate the need for repetitive or unnecessary emails and creates real-time collaboration and engagement with users. Enterprises deploying Slack give employees enhanced transparency into daily operations even from remote locations.



The Startups You Need to Know:The On-Demand Economy

Pager connects consumers with doctors and nurses in their surrounding area. Through an app, patients can order doctor services to their homes. Built by an early creator of Uber, the app is able to match patients’ needs with the appropriate doctors nearby. The company has partnered with Envision, a premier leader of medical services in the United States to access 31,000. Still in its early stages, the company is refining its business model in New York before expanding to other metro areas.

Pager

TinyRx launched out of stealth mode towards the end of 2015, to help consumers find the best prices on their prescriptions and get them via same-day delivery. The company’s goal is to improve access to and drive down costs of prescription drugs for consumers.

TinyRxMakeTime created an on-demand manufacturing marketplace. Users are able to purchase manufacturing capacity digitally and by the hours with vendors of CNC machine services across America. Manufacturers are able to expand production capacity through this service, while CNC shop owners have the ability to fill idle time. The company also provides a service where users can list a service request, and manufacturers can bid for the job. More than 400 companies are part of MakeTime’s marketplace with more than 2M hours of potential operating capacity.

MakeTime

pager.comtinyrx.commaketime.io



Experfy has created an on-demand marketplace for consulting work centered around data science and analytics. The startup has tapped into a network of over 25,000 PHDs that its customers can utilize. The company brings big data analytics capability to companies of any size. The company’s expertise is in the manufacturing and agriculture sectors, among companies generating $50-$100 million in annual revenue.

ExperfyCountUp is an on-demand CPA marketplace for small businesses. It matches businesses with its network of screened accountants, which the company spent the first 8 months evaluating. The online marketplace includes features like e-signatures, payment processing, and other features to streamline operations.

CountUp Expert360 was founded by two ex-Bain consultants to disrupt the consulting industry. The company has developed a platform that provides qualified consultants on an ad-hoc basis to its users. Users are able to gain advice from over 4,800 experts without the need to hire a consulting team from a top firm. Although the company’s initial target market was SMEs, it has attracted the attention of many enterprise users.

Expert360

countup.ioexpert360.comexperfy.com



Voxeet developed 3D immersive sound conference call technology that supports collaboration among peers. The company provides the technology for mobile workers that share and organize information in real-time. Not only can users audio conference, but they can also send messages, chat, record calls and record files. It’s an integrated communication experience.

VoxeetParsable developed a software solution, Sera, to replace the need for paper processes and walkie talkies by industrial teams. Sera is a real-time, collaborative tool that helps turn business processes into easy-to-follow guided procedures for users. Sera provides field workers with remote assistance from engineers, supervisors, and members of the supply chain. It enables real-time collaboration between workers and provides easy identification of tasks to be completed.

Parsable Librestream provides mobile collaboration solutions for industrial, field service, and public-sector customers. Enterprise organizations are currently using this technology to enable remote assistance and mobile collaboration for field workers. Librestream has partnered with Cisco to provide technology solutions to major oil & gas companies.

Librestream

The Startups You Need to Know:Workplace Collaboration Technology

parsable.comlibrestream.comvoxeet.com



Directly develops on-demand customer service applications by crowdsourcing expert product users and giving them rewards for their service. Unlike hourly call center workers, these experts are passionate users of the products already and answer questions on demand, where and when they want to (flipping capital- intensive call center models upside down). Customers of the platform report faster time to resolution and higher satisfaction ratings.

DirectlyPlanGrid is disrupting the traditionally paper-focused construction industry by providing a “Google Docs”- like for blueprints. The software provides users to store and update blueprints over the cloud via an iPad app. PlanGrid gives users access to the latest drawings and edits in real -time, which eliminates the costly (but sometimes occurring) mistake of a contractor building off the wrong set of drawings. The app’s users can share plans, markups, photos, and reports.

PlanGridRubicon Global is an on-demand platform that lets independent waste haulers bid on trash from business clients, offering clients ways to lower trash bills. Rubicon has software that can more efficiently find nearby places to recycle, resell, and haul off the garbage, due to its massive recycling database. The trash industry is dominated by really big players like Waste Management, but is ripe for disruption from tech- driven startups like Rubicon.

Rubicon Global

plangrid.comrubiconglobal.comdirectly.com


VOIQ provides an on-demand call center with access to a mobile workforce. VOIQ enables professional call agents to earn money through their smartphones from anywhere. This “Uber for telemarketing model” is disruptive because it allows businesses of all sizes to scale with help from knowledgeable professionals without needing to create their own internal teams. VOIQ also provides a range of useful tools to make the interaction as easy as possible for both the business and the call center agent. These resources include mechanisms for businesses to upload scripts, as well as lists for targeted lead generation. VOIQ also uses

Case Study: VOIQpsychoanalytic matching to pair customers and call agents with similar profiles and provides its customers with the ability to track calls completed and optimal conversation lengths.

While VOIQ is a technological platform first, its end result is the connection of business needs to worker compensation demands to consumer happiness. As VOIQ’s primary focus is in its technology, partners with additional analytical tools for successful lead campaigns as well as those wanting to incorporate the VOIQ platform into their offerings should consider reaching out.


voiq.com


BoldIQ develops software to quickly and efficiently schedule assets for the on-demand economy, from trucks and planes to doctors and nurses. The company originally launched as a software startup to help optimize operations for air carrier, DayJet, which offers on-demand jet travel. The platform was initially designed to support air taxi complexity, given the unpredictability of consumer demands, legal, and operating constraints. Once DayJet suspended its operations, BoldIQ pursued broader applications for its software. While continuing to work with private jet carriers, the company expanded their customer base to include ground transportation and drones as well.

Case Study: BoldIQ


boldiq.com

The Future of VehiclesDISRUPTION #2

Car manufacturers like Ford, GM, Nissan, and Aston Martin have announced plans to create all-electric vehicle fleets, with electric cars expected to cost the same as today’s gas vehicles by 2025. Not only are car’s gaining new power, but they are also getting new brains. Ford recently announced the creation of subsidiary, Ford Smart Mobility, which will bring to market autonomous vehicle technologies and fleets. This news comes on the heels of Britain announcing its intent to begin testing autonomous vehicles on its highways in 2017, with the goal of releasing the technology to the public in 2020!

All-electric: Automotive companies and tech giants are making developments in all-electric vehicle design. The first major initiative to make all-electric vehicle technology available to the general public was when Panasonic and Tesla co-invested billions in developing a gigafactory to produce and drive down the cost of lithium-ion batteries. Most recently, Daimler Automotive announced plans for a $500-million electric battery plant with expected production to begin next summer. It’s far from a stretch to say that in 10 years, all-electric technology will be just as inexpensive and feasible as gasoline is for vehicles today.

What’sNew in2016?

With all-electric vehicle prices continually declining and advances taking place in vehicle autonomy, cars of the future will have new designs that improve vehicle sustainability, rider safety, and worker productivity.

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Wireless Charging:In addition to testing to all-electric vehicle designs, companies are also experimenting with new ways of charging vehicles. Wireless charging stations will be embedded under city roads and household garages so that vehicles can plug in as-needed. The value proposition? No more trips to charging stations.

Today, startups Hevo and Momentum Dynamics are working with Google on wireless charging for vehicles. But startups and tech companies are not the only ones leading the revolution as big car manufacturers are becoming leaders in the space too. Toyota recently invested in WiTricity, a startup that provides wireless charging to electronic devices. Nissan has also announced a vision for wireless charging stations that keep its vehicles plugged into the grid.

What’sNew in2016?

DISRUPTION #2 – The Future of Vehicles

Gradual to Full Autonomy:Over the past 5 years, more than 22,000 self-driving patents have been granted, with companies like Toyota, Denso, Bosch, and Nissan leading innovation efforts. But there’s a clear opportunity for the tech sector to get involved. For instance, Google is testing its autonomous vehicle technology in the streets of California, Texas, and Washington to improve its own vehicles’ capabilities. Over time, gradual improvements in driver assistance, such as automatic parking, will continue to be implemented in vehicle design, eventually resulting in full commercial vehicle autonomy.

Vehicles Get Connected:In a sense, cars are already connected through smartphone integrations, Internet streaming services, and roadside assistance. But these capabilities are only the beginning. By 2020, 10 percent of the world’s mobile connections will be machine to machine (M2M). Cars will connect to other vehicles and their surrounding environments (wearables, smart homes, smart workplaces). Companies today are working on developing the technology needed to enable situational awareness in vehicles and working to provide the connectivity needed to plug them into the “smart city.” Just think, vehicles that are aware of traffic jams, the timing of stop lights, and hazardous roadside activity. Vehicles will become the ultimate supercomputers.

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All-electric: The most straightforward answer is sustainability. All-electric technology will enable consumers to ease their reliance on fossil fuels. Early signs of this trend are springing up around the world: in 2015, more than 300,000 electric vehicles were sold in China, and the number is expected to double in 2016. While this a relatively small number considering the country’s overall size, it will introduce a new industry and sustainable way of life to consumers.

Wireless Charging: Wireless charging will promote the adoption of electric vehicle technology, while fundamentally changing a city’s infrastructure.

Gradual to Full Autonomy: New vehicle capabilities will spark a ripple effect in terms of new technologies that are necessary in the automotive industry. The increase in vehicle autonomy will bring about an increased focus on roadside safety. In addition, the interior of vehicles will change in order to increase human productivity. For instance, Ford recently filed a patent for an overhead projector for future vehicles.

Why It Matters

All- electric technology will

enable consumers to ease their

reliance on fossil fuels.



And at last year’s 2015 CES, Mercedes showcased its autonomous concept car of the future, in which the interior of its vehicle looked more like a small living quarters rather than a means of transporting passengers. With the utility of the vehicle slowly changing, companies will find ways they can use vehicles as another way to target consumers.

Vehicle autonomy will impact a range of markets. For instance, chipmakers and sensor suppliers are now working to develop solutions that will enable autonomy in vehicles. Companies like Intel, Qualcomm, and Nvidia are developing solutions for the emerging market. In addition, insurance companies will have to readjust business models, as drivers are no longer the ones being insured. Retailers like McDonald’s will have to find ways to stay relevant and market to consumers, as there is no longer a driver to cater to. Company business models will have to shift as the role of the driver evolves.

Vehicles Get Connected: In 2020, there will be more than 250 million smart cars that are producing 350 MB of data per/second, updating their software via the cloud through connectivity. With cars acting more like computers rather than a means of transportation, a major market opportunity exists for service providers and retailers to analyze the data being collected. Cybersecurity, data management, and privacy will be major areas of focus.



All-Electric: It’s not just the Teslas and Faraday Futures of the world that are investing in all-electric technology. Classic car manufacturers such as Ford, GM, and Nissan are all establishing their market positions. In 2014, VW purchased a stake in QuantumScape, with the aim of tripling its electric vehicle range. In 2015, Dyson acquired Sakti3 just weeks after Bosch bought the startup SEEO. Both startups were developing breakthrough solid-state battery technology that could be supplied to the electric vehicle industry. Most recently, Ford announced it will invest $4.5B to expand its electric car offering by 2020.

In addition to car manufacturers, research labs and government organizations are providing funding for electric battery research. The Department of Energy has committed over $2B in funding for electric battery research. Some of this funding supports projects at Lawrence Livermore Laboratory and at Berkeley’s Joint Center for Energy Storage Research.

Wireless/Inductive Charging: Wireless charging will be a new method for fueling vehicles. MIT spinoff WiTricity has received investment from Toyota for developing a wireless charging capability for vehicles. In 2015, Qualcomm and Daimler announced that they were collaborating to bring wireless charging to the connected car market. And most recently, Nissan announced that its fuel station of the future would in fact be wireless.

A 20,000-foot Investment View

The Department of Energy has

committed over $2B in funding

for electric battery research.



Gradual to Full Autonomy: Large car manufacturers and investors are funding startups like Quanergy and TriLumina that develop processing solutions which enable sensing and vision in vehicles. Automotive leaders are also partnering with universities in order to advance research in the field. In 2015, Toyota announced it would invest $50 million with Stanford University and MIT for autonomous vehicle research. Most have developed in-house research facilities that will accelerate the introduction of autonomy to connected vehicles.

Full autonomy in vehicles will be spearheaded by the public transportation sector. GM recently announced it will be announcing $500 million to create on-demand self-driving vehicles for public transportation. Startups like Zoox, Navya, EasyMile and Robot Taxi are working to introduce autonomous vehicles to the public transportation sector in the near future. Vehicles Get Connected: With the connected car industry expected to be worth nearly $2.3 trillion by 2020, insurance companies, telecom providers, technology moguls and car manufacturers are all investing in smart car technology. At CES 2016, car manufacturers promised to add Internet connectivity to vehicles in the future, announcing partnerships with companies like AT&T and Verizon to build the infrastructure for the future Internet of Things.



The Startups You Need to Know: All-Electric

Faraday Futures is building a new class of all-electric vehicles that offer smart and seamless connectivity to the outside world. The company will be integrating unique ownership models, autonomous driving capabilities, and vehicle content into its technology. Founded by ex-Tesla executives, Faraday Futures is building a billion-dollar production facility in Nevada with Chinese capital backing.

Faraday Futures

Amprius is developing next-generation lithium-ion batteries and is planning to mass produce them at a lower cost (which will be a major breakthrough for the automotive market). The company is building a production facility in China, with the hope of beginning production this year.

AmpriusAtieva is creating next-generation all-electric vehicles. Based in Silicon Valley, the stealth startup promises “radical technologies that will fully support and enhance mobile lifestyles.” The company plans to develop new infotainment systems, as well as autonomous systems for vehicle control to keep passengers safe.

Atieva

Storedot is an Israeli startup that is developing instant charging batteries for all-electric vehicles. The company is refining its FlashBattery technology and developing a fast new battery charging station with the aim of developing a 5-minute standard for electric vehicle charging.

Storedot

SolidEnergy Systems develops anode-free batteries and is building an ecosystem that connects car manufacturers with battery suppliers. It has received notable funding from an established U.S. auto manufacturer, Science Applications International Corporation (SAIC), and Applied Ventures LLC.

SolidEnergy Systems

faradayfuture.comatieva.comstore-dot.comsolidenergysystems.comamprius.com



The Startups You Need to Know: Wireless Charging

Hevo, Momentum Dynamics, & Plugless Power are developing wireless charging stations for electric vehicles. Hevo and Momentum Dynamics have worked with Google on creating wireless charging stations/capability for future autonomous fleets. Plugless Power has developed systems that are compatible with Tesla, Nissan, Chevy, and Cadillac vehicles.

Hevo, Momentum Dynamics, + Plugless Power

hevopower.commomentumdynamics.compluglesspower.com



Nutonomy develops software and algorithms that enable autonomy in vehicles. The company raised early funding from research NASA and DARPA in January 2016. Today the company’s software is being integrated and tested by U.S. and European auto manufacturers.

Nutonomy Trilumina & Quanergy are developing autonomous vehicle sensors to help cars “see” better when they drive. Both companies are developing technology that will drive down the cost of LIDAR, a surveying technology that measures distance by illuminating a target with a laser light, in vehicles.

Trilumina + Quanergy

The Startups You Need to Know:Gradual to Full Autonomy

nutonomy.comtrilumina.comquanergy.com



Cohda Wireless is a critical equipment provider for the V2X market, with products being used in 60 percent of field trials today. The company has collaborated with industry leaders such as Siemens and received funding from notable investors such as Cisco and NXP Semiconductors.

Cohda WirelessSavari develops and sells Vehicle-to-Everything or V2X software, hardware (such as Roadside-Units & On-Board-Units), and smartphone applications. The company’s V2X technology enables 360-degree situational awareness in cars, allowing vehicles to communicate with their surrounding environments.

Savari Veniam provides a network of connected vehicles and offers fully managed services that expands wireless networks across a city while collecting terabytes of urban mobility data. The company has received significant funding from industry giants Verizon, Cisco, and Yamaha to bring its technology to market.

Veniam

The Startups You Need to Know: Vehicles Get Connected

savarinetworks.comveniam.comcohdawireless.com



Inrix is a SaaS solution for connected cars that offers real-time traffic analysis solutions for freeways and highways. The company provides real-time traffic data solutions to leading auto manufacturers like Volvo and Porsche, and directly competes with tech giants Apple and Google for the connected car market, evident through its recent acquisition of Seattle startup, OpenCar.

Inrix

Autotalks is a vehicle-to-vehicle and vehicle-to-infrastructure solution that embeds wireless technology in a smart chipset while allowing cars and other devices to exchange data. The Israeli company is working on bringing V2X chips to market with its partner, STMicroelectronics, a leading manufacturer of semiconductors.

Autotalks

inrix.comauto-talks.com


Cruise Automation develops an autopilot system that can be installed into Audi models from 2012 onwards, converting them into autonomous vehicles on highways. The system involves 3 components: sensor units that go on top of the car, actuators that control the steering and driving, and a computer that goes in the trunk. The company was founded by serial entrepreneur Kyle Vogt and Tesla’s former VP of Engineering.

Sensors and actuators monitor lane markers and vehicles for collision avoidance, providing an aftermarket solution for driverless vehicles. Though instead of selling as a pure aftermarket solution, Vogt

Case Study: Cruise Automationshifted plans to focus on building a full self-driving platform instead, pitting the company against Google and Telsa, which is, according to multiple industry sources, pitching a similar system to carmakers.

This startup was recently acquired by GM in order to expedite autonomy in the company’s auto portfolio. GM is expected to first release autonomy in its ride-sharing fleets, now called “Maven.” Cruise Automation technology will help bring GM’s investment in autonomous ride-sharing to market quicker. In 2015, GM invested $500 million in ride-sharing company Lyft and in 2016, acquired Sidecar, a startup competitor to Lyft.


getcruise.com


Comma.ai is developing three autonomous driving systems for vehicles in the aim to challenge Tesla at building autonomous car technology. At 26 years old, founder George Hotz has already worked at Google, Facebook, SpaceX and Vicarious (one of the most funded AI startups in the last year).

His aim is to build three autonomous driving systems that account for 99 percent of self-driving vehicles. Hotz was approached by Tesla to help develop the company’s Autopilot system, but Hotz turned the offer

Case Study: Comma.aidown, believing he could build a better one by himself. According to Bloomberg, Elon Musk was planning to contract Hotz to develop the system for Tesla or to simply work for the company directly.

Hotz’s system relies on a LIDAR sensor, and the commercial version of the product will use 6 smartphone cameras costing $13 each. In comparison to the Tesla hardware suite, Telsa uses a forward-looking camera, a radar, and 360-degree sonar sensors. Future plans will feature more cameras than sensors.


comma.ai

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What Happens Next?CONCLUSION

Let’s Stayin Touch!

With so many startups and so much new technology emerging in almost every market, corporate innovation teams are grappling with the paradox of choice. What emerging technologies exemplify your business’s future direction? When should you explore a partnership? When should you build your capabilities in-house? Don’t jump the gun: take your time when exploring these questions. The market is vast, with new ventures springing up all over the world.

Don’t feel like you’re navigating this new terrain alone. The RocketSpace team is here o help you learn about startups, work with startups, and work like a startup. Contact us to learn how you can take the next step to advance your innovation team.

In many ways, the technology ecosystem is witnessing an industrial revolution of sorts. The future looks almost like the sci-fi movies and novels of decades past. While first-to-market matters, so does your positioning: the steps that you take and the values that you exemplify now will be what guides you into the future.

And of course, follow our blog to learn more about how corporate innovation is evolving and how you can improve.

Until next time—keep in touch!

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