EIRMACannes 2011

Roberto SiagriCannes , May 26, 2011

Implementing cutting‐edge technologies to develop products to improve daily life, making it simpler, safer and more comfortable. 

ANNUAL CONFERENCE 

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Finding a pattern: it's easy... afterwards!

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Moore's Law Miniaturization ‘65 Transistors increase 2 times over 18 months

Metcalfe's Law Interconnection ‘93 Value of a network increases with the square of the

number of connections

Gilder's Law Quantization ’00 Bandwidth increases 3 times faster than computer power

Meta-Trends in Technological Acceleration

IDEAS are the new “ultimate” raw material

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Exponential vs Linear view

history of technology shows that

technological change is exponential,contrary to the

common-senseintuitive-linear view

KNEEwhere

exponentialgrowth

becomesnoticeable

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StartSmall

Think

BigBe Global

Less is More

EUROTECH   in 3 statements and 9 words

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The beginning

•1992: Eurotech S.r.l. is born

A Personal Computeron the palmof your hand

“The most profound technologies are those that disappear. They weave themselves into the fabric of everyday life until they are indistinguishable from it.”

"The Computer for the 21st Century",

Scientific American, Vol. 265 No.9, pp. 66-75, ‘91

Mark Weiser

The Ubiquitous Computers (*)

(*) UbiComp is coined at PARC in the ‘90s

Chief Technologist, Xerox PARC

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“The principle of doing ever more with ever less weight, time and energy per each given level of functional performance”

“All progressions are from material to abstract…”

R. Buckminster Fuller1895 - 1983

Nine Chains to the Moon:An Adventure Story of Thought (1938).

EIRMACannes 2011

Le Phénomène Humain, 1955

Pierre Teilhard de Chardin(1881-1955)

Technological “Cephalization” of the Earth

“…a network (a world network) of economic and psychic affiliations is being woven at ever increasing speed which envelops and constantly penetrates more deeply within each of us.

With every day that passes it becomes a little more impossible for us to act or think otherwise than collectively."

adapted from John Smart Accelereting.org

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SpaceTimeEnergyMatter

Information

Computation

STEM compression :the Engine of Innovation

COMPANY VISION MISSION ROI PERVASIVE COMPUTERS CLOUD INTERNET OF THINGS

CATALOGS MARKETS TCO DAASPRODUCT OFFER NANOPC HPC

INNOVATION MIDDLEWARE ESF TECHNOLOGY

STRATEGY GLOBAL VALUE EDC VPXCOMPLEXITY EXTREME DATA BOARDS EMBBEDDED

COMPANY GROWTH VALUE STACK HW SW FW

SYSTEMS SOLUTIONS COMPETITIVENESS

EUROTECH PC/104 CPCI VME

PLATFORM SAAS AURORA EDGE

END-TO-END SENSORS BUSINESS INTEGRATIONR2U IMAGINE-BUILD-SUCCEED NETWORK

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USAHC = 150

46.9% of Rev

EUROPEHC = 142

19.7% of Rev

ASIAHC = 163

30.8% of Rev

RoW2.6% of Rev

(as at 31 Dec 2010)

Group Global Footprint

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Computers will be smaller and smaller,and more and more interconnected.

They will weave themselves into the fabric of everyday life until they are indistinguishable from it,

improvingour abilities, our senses and our perceptions.

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The Vision

With attention to the customer, Eurotech presents

sophisticated computer and communications technologiesto deliver a competitive advantage.

By relying on our expertise in modular hardware, software and services, our customers are free to focus on their core competencies

for successful realization of their leading-edge business applications.

The Mission

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COMPANY VISION MISSION ROIPERVASIVE COMPUTERS CLOUD INTERNET OF THINGS

CATALOGS MARKETS TCO DAASPRODUCT OFFER NANOPC HPC

INNOVATION MIDDLEWARE ESF COMPRESSION

STRATEGY GLOBAL VALUE EDC VPXCOMPLEXITY EXTREME DATA BOARDS EMBBEDDED

COMPANY GROWTH VALUE STACK HW SW FW

SYSTEMS SOLUTIONS COMPETITIVENESSEUROTECH PC/104 CPCI VME

PLATFORM SAAS AURORA EDGE

END-TO-END SENSORS BUSINESS INTEGRATIONR2U IMAGINE-BUILD-SUCCEED NETWORK

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Reducing TCO:SW vs. HW

Cos

t

Time

HW

x86

PC-SW

SWTCO

PC-TCO

-$

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Wirth’s law: “Software gets slower faster than hardware gets faster”

Minimize Size in the loosely coupled

’92: A Personal Computeron the palmof your hand

’07: A Netbook Computer

on half the palmof your hand

16Mhz-1MB

800Mhz-512MB

NOW: 1,6Ghz – 2GB RAM

NanoPC

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LESS IS MORE as driving principleLess Energy, Less Space

better TCO and better Performances

Minimize Size in the tightly coupled

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Aurora HPC40TFLOP in 3,3 m3

Pervasive Computers & Massive Data Collection

Dealing with the complexity ofExtreme Data

"By the year 2015, you can expect

15 billion devices”

Justin Rattner - CTO - Intel

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Communication Overcomes Computing

The framework is changing now.The Internet is redefining software.

The Internet is redefining the role of computing and communication ………

I still don’t understand the framework. I don’t think any of us really do.

But some aspects of it are pretty clear.

It’s proven not to be computing basedbut communication based.

from : “Decisions Don’t Wait”, Harvard Management Update. 2003

Andy Groveformer INTEL CEO

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Ubiquitous high bandwidth connection to the Internet at all times

Massive computation available on demand through the CLOUD

Tiny Computers embedded in

– the environment,– our clothing,– our body

Augmented real reality

Computers are becoming pervasive and ubiquitous

THE PLANETARY COMPUTATIONAL EXOSKELETON

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Complexity ofcollecting datais growing

E xnenop

lait

22

yl

Addressing Software Complexityand a new way to create Distributed Systems

Pro

duct

ivity

Complexity and Size

AssemblyLimited reuse of written code

PC –ProgrammingEasy A lot of available programsBackward compatible

Cloud based appsMultitenantMesh-upScalable

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EIRMACannes 2011

POWER IS THERE, AND YOU DON’T NEED TO CARE

EDISON 1.0:Electric Power Distribution

EDISON 2.0:Computation Power Distribution

Everyware™ Device Cloud

Transforming Bits of Data at the Edge of the Network into

Actionable Information in the Users’ Hands

Cloud based Device Data Management

and DeliveryDevice Firmware /

ApplicationSensors & Device Hardware

Business ApplicationIntegration

EurotechEnd-To-End

Solution

Devices running the Everyware™ Device Cloud Client25

CompanySpace

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Encapsulating complexity: HW, Systems, R2U, Daas, PaaS

COMPANY VISION MISSION ROIPERVASIVE COMPUTERS CLOUD INTERNET OF THINGS

CATALOGS MARKETS TCO DAASPRODUCT OFFER NANOPC HPC

INNOVATION MIDDLEWARE ESF COMPRESSIONSTRATEGY GLOBAL VALUE EDC VPX

COMPLEXITY EXTREME DATA BOARDSCOMPANY GROWTH VALUE STACK HW SW FW

SYSTEMS SOLUTIONS

COMPETITIVENESSEUROTECH PC/104 CPCI VME EMBBEDDED

PLATFORM SAAS AURORA EDGE

END-TO-END SENSORS BUSINESS INTEGRATIONR2U IMAGINE-BUILD-SUCCEED NETWORK

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Invention vs. Innovation

Invention: New  idea, design, model of a new  device.

An idea is something that it is not yet inside the economic system and  it  may never enter it.

According to Schumpeter

Innovation: All the development process of a new product,that bring the product inside the economic system.

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Sustainable Growth vs. Saturation

S curves get old

Time

Performance

EvolutionDevelopment phase

Take-off

Research,Invention phase

Return reduction New technology

Existingtechnology

New Evolution,New Development phase

Each new TECHNOLOGICAL substrate is more efficient than the previous one

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Pareto’s Law : “The 80/20 Rule”

Punctuated Equilibrium (in Biology, Technology, Economics, Politics…)

~ 20% Punctuation (Disruption)~ 80% Equilibrium (Evolution)

time

evol

utio

n

Stabile environment

Rapid changingenvironment

Vilfredo F. D. Pareto1848 ‐ 1923

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Are we really willing to innovate?

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Innovation fails, because organizationsunwittingly strip the disruptive potentialfrom new ideas before they ever see the light of day C.M. Christensen, M. E. Raynor

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The organization model: standard vision

Markets / CustomersMarkets / Customers

MktgOperativo

MktgOperativo

Research &DevelopmentResearch &

DevelopmentIndustri-alizationIndustri-alization ProductionProduction Catalog/

ProductsCatalog/Products

SalesSales

Operative Mktg

Operative Mktg SalesSales

SalesSalesResearch centres /

Universities

Research centres /

Universities

Mercati di OggiMercati di OggiIt goes like“CIVILIZATION & BARBARITY” !

It doesn'twork...

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EIRMACannes 2011

The 3 How To:

• 1 : bring the right technological innovation inside the company (at a moderate cost…)

• 2: shift the innovation from research to market. In other words, how to pass from ideas and prototypesto turnover and large sales volumes

• 3: avoid destroying the company, that is, how to balance change and stability

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The organization model: pushed by continous innovation

DevelopmentDevelopment EngineeringEngineering ProductionProduction Product PortfolioProduct Portfolio

Sales & Mktg

Sales & Mktg

Tomorrow’s Customers Today’s Customers

StrategicPlanningStrategicPlanning

ResearchResearch

Markets

DISRUPTIVE INNOVATIONTechnology push

INCREMENTAL INNOVATIONMarket pull

Universities and Research Centres

Foresight Studies

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INNOVATION, MARKETS & BUSINESS MODELS

Time

Pro

du

cts’

Per

form

ance

Inspired to Christensen’s innovation model

RESEARCH

DEVELOPMENT

STRATEGICPLANNING

EIRMACannes 2011

from theKnow-How

to the

Know-Whoand the

Know-Where

The Paradigm shift in Knowledge

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Business Process Pillars using an 80/20 ROT

–Fabless production model stay flexible–Innovation within the standards stay open

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Dev IN >80%

Dev OUT

Prod IN

Prod OUT

>80%

Univ

Labs

Direct SALES

Reps / Agents

Distributors

PRO

DU

CTS

TECH PUSH: 20%TECH PUSH: 20%

CO

NC

EPTS

MARKET PULL: 80%

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EDGE Technologies

Technology Trigger

Peak of Inflated Expectations

Trough of Disillusionment

STABLE Technologies

Slope of Enlightenment

Plateau of Productivity

MATURITY

VISIBILITY

ExternalResearch

80%

InternalResearch

20%

ExternalDevelopment

20%

InternalDevelopment

80%

Technology evolution andInsource-Outsource relation

Gartner Hype Cycle

The many faces of innovation

process innovation

business model innovation

product & service innovation

DaaSPaaS

IaaS

technology innovation

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Strategy based on dynamic equilibrium driven by innovation:- High adaptability capacity

- Management of many business models -Incremental Innovation -Disruptive Innovation-Knowledge network

Dynamic BalancingStrategy

DisruptiveInnovation(10%-20%)

PoisedOrganization

(wide range of dexterities)

IncrementalInnovation(80%-90%)

1

2

A new approach in strategic management

EIRMACannes 2011

be distinct … or extinct

Tom Peters

change is the process by which the future invades our lives

Alvin Toffler

Be ready to catch the wind of change

Thank you for your attention

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"On résiste à l'invasion des armées; on ne résiste pas à l'invasion des idées.“

Victor Hugo, Paris 1877