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									Platform Strategy: A Mote Overview




                                       John C. Henderson
                           Richard C. Shipley Professor of Management




                                          Boston University
                   Institute for Leading in a Dynamic Economy




Friday, January 07, 2011          Boston University Institute for Leading in a Dynamic Economy   Page 1
Agenda

 Platform Strategy

 Framework for Value of Sensory Networks

 Mote Technology; A comparison to RFID

 Sears Pilot
        • Concept
        • Pilot
        • Lessons learned


 View of Mote Technology Evolution




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                                       Platform


A platform provides a set of
 capabilities that
 • Can be leveraged by multiple
   parties
 • Has “options” value
 • Create Network effects
 • Has explicit Architectural
   Control Points

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Value capture via Architecture Control Points

 Architectural Control Point (ACP) (Iyer)
        • A point through which
           − information flows and
           − control is exerted
        • Example, the data architecture of ONSTAR

 Implement ACPs at three levels
   • Technology
   • Data
   • Application




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                           Platforms Types
3 levels of platforms

        • Operational (within a single portion of a
          value chain). e.g. operating system

        • Interorganizational (within a single
          value chain, ownership) e.g., lean
          production

        • Business (new business model) e.g.,
          ecosystem around UPC codes


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  Value of Sensory Networks

                    Intelligence
                                                                                                     Mobile Business
                                                                                                     Platform??
                                   Broken?         Intell flow
    VALUE DRIVERS




                                                                                                                       Machine to Machine
                                                                                                                       Customer Experience
                    Sensory




                                                                                                                       Connected Home
                                     Lost ?      Supply Chain
                    Connectivity




                                                 Process Innov

                                   Operational     Interorg                  Business
                                    Platform        Platform                 Platform

                                       ORGANIZATIONAL LEVERS




     Monday, September
Friday, January 07, 2011 29, 2003                     Boston University Institute for Leading Dynamic Economy
                                                   Boston University Institute for Leading in a in a Dynamic Economy                 Page 23
                                                                                                                                     Page 8
                                            RFID

 Passive radio frequency ID
 Substitute for bar code
        • 2-3 feet communication
        • Use energy of reader to power transmission
 MIT Auto ID project
        • 3-5 cents per tag
        • Context via data integration on network
        • Wall Mart pilot
 Value of “perfect Information”
 Major near term application-supply chain
 Long term impact- customer experience



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                           MOTE Technology

 Mote or Smart Dust
        •     1-2 mm square chip
        •     Includes radio, computer, antenna and sensor
        •     Communication 100-500 feet
        •     Self organizing network (reader,router,analytic)
        •     Senses movement,light,temp,sound,impact,etc.
        •     1-3 dollars per mote
 Major application
        • Intelligence at the edge
        • Context Sensing




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    Custom Ordered Merchandise Handling Process


                                                    The Store                                       HQB
                 Customer                       Take customer                                  Review customer
                                                   orders                                           orders




            The Delivery Site                  The Warehouse                                     The Supplier
             Stage customer                 Receive & distribute                                   Build to
                delivery                     finished products                                  customer order




Friday, January 07, 2011        Boston University Institute for Leading in a Dynamic Economy                     Page 11
Lessons Learned

 Intelligences at the Edge
        • Filter
        • Interpret
        • Act


 Mote as a Dynamic Header

 Architecture Control Points/Evolution of Mote Market




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Lessons Learned

 Intelligences at the Edge
        • Filter
        • Interpret
        • Act


 Mote as a Dynamic Header

 Architecture Control Points/Evolution of Mote Market

 Architectural Independence

 Economics of Platforms




Friday, January 07, 2011   Boston University Institute for Leading in a Dynamic Economy   Page 13

								
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