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IoT Innovation Design Method (Picmet2019 Presentation)

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Naoshi Uchihira
Naoshi Uchihira

Innovation in the Internet of Things (IoT) provides various opportunities for large, medium, and small-sized companies; however, its realization is still challenging for these companies. Therefore, an engineering design methodology for IoT innovation is required, especially for non- information and communication technology experts. In this paper, we call the engineering design method for IoT innovation “IoT innovation design method,” and discuss its requirements and perspectives with reference to previous studies. Then, this paper proposes a concrete IoT innovation design method with an example. This paper contributes to existing studies not only by proposing a new specific method but also by clarifying the general requirements and perspective (viewpoints) of IoT innovation design methods.

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PICMET2019@Portland Naoshi Uchihira Japan Advanced Institute of Science and Technology Innovation Design Method for the Internet of Things: Requirements and Perspectives JAIST TB-04 Internet of Things (IoT) Tuesday, 8/27/2019, 10:30 - 12:00 Room: Galleria III
2 Summary and Contribution What is IoT Innovation Design Method? Why is IoT Innovation Design Method Required General Requirements and Perspectives of IoT Innovation Design Method Proposed IoT Innovation Design Method which consists of 4 steps. Evaluation PICMET2016 Refined Version New New
3 Contents •Background and Purpose •Literature Review •5 Requirements and 4 Perspectives •Proposed IoT Innovation Design Method •Evaluation •Summary and Contribution
4 Contents •Background and Purpose •Literature Review •5 Requirements and 4 Perspectives •Proposed IoT Innovation Design Method •Evaluation •Summary and Contribution
5 Background: IoT System Plants Social Infrastructure Offices Healthcare Data Handling Data Analytics Decision Making Control Sensing Cyber World (Cloud) Physical World “IoT Systems” in a broad sense are Cyber Physical System.
6 Background and Purpose •Rapid progress and spread of the Internet of Things (IoT), cloud computing, and artificial intelligence are bringing innovative changes. •Large, medium, and small enterprises, as well as non-IT enterprises, have various chances of IoT innovation; however, they face various difficulties. Engineering method for systematically designing “IoT innovation” is required
7 Purpose: IoT Innovation Design Method The engineering method provides design viewpoints, charts (frameworks), and a systematic design procedure without relying on individual tacit knowledge and specialists’ skills (e.g. Steve Jobs). Step 1 Chart 1 Chart 2 Chart 3 Step 2 Step 3 Step 4
8 Expansion of Engineering Design Method Innovation Design Service Design Product Design Software Design • Structured Design • OOD/OOA • UML Business Process Design Dynamically changing and competitive environment
9 Why is IoT Innovation Design Required? Marketing Planning Development Operation Marketing Planning Development Operation Old Approach (Waterfall) The Same TeamDifferent Teams New Approach (Agile)
10 Contents •Background and Purpose •Literature Review •5 Requirements and 4 Perspectives •Proposed IoT Innovation Design Method •Evaluation •Summary
11 LITERATURE REVIEW •Business Model Design •Upstream System Design •IoT Business System Design
12 Research Activities on Business Model Source: DaSilva & Trkman [7] Amit & Zott [8], Chesbrough [9], Teece [10], Zott & Amit [11], etc
13 Business Model Design • Business model canvas [5] and business model navigator [13] • Aceti & Singarayar [15] proposed a business model design method based on a business model framework. • Dijkman et al. proposed a business model framework for IoT applications based on the business model canvas [14]. Dijkman et al.[14]
14 Upstream System Design including Business • Business process modeling notation (BPMN [17]) • Goal orientation in requirements engineering: B-SCP [12] which has been proposed as a method to analyze requirements of business systems by goal orientation. • Service science and service engineering, design methods: Service Blueprints [20] and DFACE-SI [21]. BPMN [17]
15 IoT Business System Design •Glova et al. applied the technique of requirements engineering to the design of IoT business system based on e3-value [25]. •Ide et al. proposed a design method for IoT business system by extended business model canvas and system model canvas [26]. •We have proposed the IoT service business ecosystem design PICMET2016 [2] which features ecosystem design and project risk management. But, it was complicated for practical use. •There are no measure for evaluation and comparison for various IoT business design methods.
16 IoT Business System Design •This paper shows general requirements and perspectives that IoT innovation design method should satisfy. •This paper proposes a concrete IoT innovation design method (a revised version of PICMET2016 [2]) then evaluate it according to these requirements and perspectives.
17 Contents •Background and Purpose •Literature Review •5 Requirements and 4 Perspectives •Proposed IoT Innovation Design Method •Evaluation •Summary and Contribution
18 Five Requirements of IoT Innovation Design Method A) Effectiveness, efficiency, and comprehensiveness Thinking and discussion in individuals and groups become more effective, efficient and comprehensive using IoT domain knowledge. B) Simplicity for continuous PDCA cycle For reviewing in the continuous PDCA cycle, it is desirable that the design method be as simple as possible and easy to understand. C) Standardization and customization It is necessary to establish the design method as a common language (a communication tool) between stakeholders. D) Verification of design output In order to be an engineering design method, a V&V (Verification & Validation) method is required. E) Evaluation of design method In order to evolve the design method, it is necessary to evaluate the effectiveness of the proposed design method.
19 Value Design System Design Strategy Design Project Design Innovation Design Value Proposition Intelligent Processing Architecture Competitive & Cooperative Strategy Risk Management Four Perspectives of IoT Innovation Design Method
20 Four Perspectives of IoT Innovation Design Method A) Value Design: Value Proposition It is important to clarify what value you would like to propose to whom. In bad cases, IoT itself become purpose. B) System Design: Intelligent Processing Architecture It is necessary to clarify how to derive proposed values from IoT sensor data by using AI in system design. C) Strategy Design: Competitive & Cooperative Strategy It is necessary to consider both competitive strategy and cooperative strategy in business ecosystem. D) Project Design: Risk Management in IoT transformation The task of identifying specific risks in advance and taking countermeasures is extremely important.
21 Contents •Background and Purpose •Literature Review •5 Requirements and 4 Perspectives •Proposed IoT Innovation Design Method •Evaluation •Summary and Contribution
22 Proposed IoT Innovation Design Method Step1: Clarification of customers and proposed value Step2: Relationship among data and proposed values Step3: Design Open & Closed Strategy Step4: Risk Management for IoT Innovation Project Value Proposition Canvas SCAI Graph Open&Closed Canvas Project FMEA Business Model Canvas Procedure Charts Value Design System Design Strategy Design Project Design Transformation Project
23 Step 1: Clarification of customers and proposed values Value Proposition Customer Profile Fit Oversight of Abnormalities Increased burden of caregivers Autonomy of Elderly Person Family Relief Abnormality Detection Decreasing burden of caregivers by remote monitoring Autonomy Promotion by Smart Speaker Interaction Remote Monitoring by Family Customer Job Customer Pain Customer Gain Product &Service Pain Reliever Gain Creator Watching & Interaction Service Autonomy Promotion Service Optimal Scheduling of Visiting Care Visiting Care Service ラベル ラベル ラベル ラベル label label label label KP VP KR KA CR CS CH CS RS Visiting Care Service Company (End User: Elderly Person) Watching & Interaction Service Autonomy Promotion Service Remote Monitoring and Visualization Information Sharing Know-how of Watching & Interaction System Development Manufacturer of Watching Device Data Scientist Watching & Interaction Service Fee System Development & Operation Cost Consulting Consulting Fee Behavior Model DevelopmentManufacturer of Smart Speaker Connection with Care Service Company Consultant Employment Cost Device Procurement Cost Ideation Method (KJ Method) Value Proposition CanvasBusiness Model Canvas Step1:Value Design Step2: System Design Step3: Strategy Design Step4:Project Design • Ideate using the KJ method. • Clarify customers and proposed values using value proposition canvas and business model canvas.
24 Step 2: Relationship among data and proposed values The relationship between sensor data and proposed value is clarified using SCAI graph. SCAI Graph Step1:Value Design Step2: System Design Step3: Strategy Design Step4:Project Design Value Proposition Analytics& Intelligent processing Connection Sensing Watching Service Autonomy Promotion Home Appliances Controller Smart Speaker Visiting Care Schedule Elderly People Profile Home Appliances Operation Elderly People Interaction Anomaly Detection Behavior Analysis Optimal Scheduling of Visiting Care Visiting Care Record Optimization Visualization of Daily Rhythm Communication with Family Human Input
25 Patterns of Analytics & Intelligent Processing Pattern Explanation Visualization Visualize huge data as forms in which human can easily recognize. Human makes final decisions based on visualized data. Identification by Monitoring and Searching Identify some data that satisfy specific conditions among huge data by automatic monitoring and searching. Estimation and Prediction based on the Model Estimate and predict some situation based on the models which are constructed by stochastic methods and/or machine learning methods from huge data. Optimization Make optimal decisions and plans using optimization techniques from information derived from “Identification by Monitoring and Searching” and/or “Estimation and Prediction based on Model”.
26 Step 3: Design Open & Closed Strategy ProcurementEngineeringFull-turnkeySolution TechnologyAssessment Open Area Closed Area Core Resource Knowledge Resource Procurement Resource Deployment Resource Elderly Person Living in Home Data Scientist Researcher of Elderly person interface Application Developer Visiting Care Service Company Manufacturer of Watching Device Manufacturer of Smart Speaker Know-how of Watching & Interaction Connection with Care Service Company Watching & Interaction Platform Market Step1:Value Design Step2: System Design Step3: Strategy Design Step4:Project Design Design open & closed strategy in the business ecosystem using the open & closed canvas. Open & Closed Canvas
27 Step 4: Risk Management for IoT Transformation Type Failure Mode Cause Effect Action Basic Tech. (A) Elderly don’t respond much to smart speaker. Lack of understanding of elderly behavior. Difficult to realize watching & interaction service. Sufficient investigation of elderly behavior. Basic Tech. (A) Behavior model is not accurate. Bad accuracy of data. Behavior is too diverse. Difficult to realize optimal scheduling care plan. Focus on visiting care records. Operati on Tech. (C) Nonconformity of smart speaker APIs. Various applications and APIs. Necessity to develop for many types of speakers. Development limited to a specific smart speaker. Market (D) Small and limited number of user companies. Limited benefits for companies. Difficult to continue investment as a business. Operate within additional features of existing service. Organiz ation (F) No synergy effect with existing system. No merit for organization of existing system Connection with existing customers can’t be used Same person responsible for new and existing businesses Step1:Value Design Step2: System Design Step3: Strategy Design Step4:Project Design Assume risks of the IoT transformation project and prepare countermeasures with Project FMEA. Project FMEA (Failure Mode and Effect Analysis)
28 Step 4: Risk Management for IoT Transformation Step1:Value Design Step2: System Design Step3: Strategy Design Step4:Project Design Using difficulty map, designers can extract possible risks as “failure mode” by forced association. Difficulties of IoT Innovation The sea of ​​Darwin Scalability Computing Resource Device Management Device Authorization Interoperability Regulation Security & Privacy Career Portability Many Standards Market Size Gaps of Operators Data Quality Charge Cost of Device & Communication Many Stakeholders Accountability Application Management Unexpected Trouble Distribution of profit and loss Analytics Resistance to change Prejudice based on failure experience Mismatch of Evaluation Lack of cooperation (A) Basic Technology (B) Technology Management (C) Operation Management (D) Market & Customers Need and Seed Fit User Experience Solution Fragmentation Social Acceptance (E) Business Strategy& Business Ecosystem Speed& Agile (F) Organization Business Synergies Service Continuity Data Utilization in Field Cost and Return Balance Difficulty Map of IoT Transformation
29 Contents •Background and Purpose •Literature Review •5 Requirements and 4 Perspectives •Proposed IoT Innovation Design Method •Evaluation •Summary and Contribution
30 Evaluation (1) : Five Requirements Requirement The Proposed Method (A) Effectiveness, efficiency, & comprehensiveness The method introduces an complementary chart (SCAI graph) that has domain knowledge peculiar to IoT innovation in addition to Business Model Canvas (BMC). (B) Simplicity The method based on simple and standard charts (BMC). SCAI graph becomes simple after refinement of the original SCAI Matrix. (C) Standardization and customization The method based on simple and standard charts (BMC). (D) Verification Under construction. The basic concept was presented in IEEE GCCE 2016 [1] (E) Evaluation Under construction. Awareness of various chances and risks using the design method can be measured by the cognitive approach.
31 Evaluation (2) : Four Perspectives Design Method Value Design System Design Strategy Design Project Design Business Model Canvas (BMC) for IoT [Dijkman:14] Value proposition (VP) is a main feature of BMC. Channel (CH) slightly suggests system structure. Partner (KP) and key resource (KR) slightly suggest a strategy. Key activity (KA) slightly suggests project design. IoT business modeling based on e3-value [Glova: 25] e3-value model and profitability evaluation. Business process and information system viewpoint. No particular mention. No particular mention. Lean design methodology [Ide: 26] XBMC (eXtended BMC) SMC (System Model Canvas) No particular mention. No particular mention. The proposed method BMC and value proposition canvas for value design. SCAI graph for identifying relationship between data and value. Open & closed canvas to clarify competitive and cooperative strategy in ecosystem. Project FMEA for recognizing future chances and risks.
32 Evaluation in Lectures and Workshops •More than 160 IoT professionals have joined my lectures and workshops of IoT Innovation Design Method.
33 Summary and Contribution What is IoT Innovation Design Method? Why is IoT Innovation Design Method Required General Requirements and Perspectives of IoT Innovation Design Method Proposed IoT Innovation Design Method which consists of 4 steps. Evaluation PICMET2016 Refined Version New New Future Work: Quantitative evaluation of IoT innovation design method by experimental design workshops.
34 References • [1] Uchihira, N., “Innovation design and its verification & validation in the era of the Internet of Things,” 2016 IEEE 5th Global Conference on Consumer Electronics, 2016. • [2] Uchihira, N, Ishimatsu, H, and Inoue, K., "IoT service business ecosystem design in a global, competitive, and collaborative environment," Proceedings of the Portland International Conference on Management of Engi-neering and Technology (PICMET2016), 1195-1201, 2016. • [3] Cross, N., “Engineering design methods (4th Edition)”, Wiley, 2008. • [4] Booch, G., Rumbaugh, J., Jacobson, I., “The unified modeling language user guide”, Addison Wesley, 1998. • [5] Osterwalder, A., Pigneur, Y., "Business model generation: a handbook for visionaries, game changers, and challengers”, John Wiley & Sons, 2010. • [6] Ebert, C., Gallardo, G., Hernantes, J., & Serrano, N., “DevOps,” IEEE Software, Vol. 33, No.3, 94-100, 2016. • [7] DaSilva, C. M., Trkman, P., “Business model: What it is and what it is not”, Long range planning, 47(6), 379-389, 2014. • [8] Amit, R., Zott, C., “Value creation in e-business”, Strategic management journal, 22(6-7), 493-520 , 2001. • [9] Chesbrough, H., “Business model innovation: opportunities and barriers”, Long range planning, 43(2-3), 354-363, 2010. • [10] Teece, D. J., “Business models, business strategy and innovation”, Long range planning, 43(2-3), 172-194, 2010. • [11] Zott, C., Amit, R., “Business model design: an activity system perspective”, Long range planning, 43(2-3), 216-226, 2010. • [12] Zott, C., Amit, R., “The business model: A theoretically anchored robust construct for strategic analysis”, Strategic organization, 11(4), 403-411, 2013. • [13] Gassmann, O., Frankenberger, K., Csik, M., “The business model navigator: 55 models that will revolutionise your business”. Pearson UK, 2014. • [14] Dijkman, R. M., Sprenkels, B., Peeters, T., Janssen, A., “Business models for the Internet of Things”, International Journal of Information Management, 35(6), 672-678, 2015. • [15] Aceti, J., Singarayar, T., “Business model design”, Design thinking: new product development essentials from the PDMA, 265-280, John Wiley & Sons, 2015. • [16] Van Lamsweerde, A.. “Requirements engineering: From system goals to UML models to software”, John Wiley & Sons, 2009. • [17] BPMN Version 2.0, https://www.omg.org/spec/BPMN/2.0/ [Accessed:2018-11-26] • [18] Hans-Erik, E., Magnus, P., “Business modeling with UML: business patterns at work”, John Wiley & Sons, 2000. • [19] Bleistein, S. J., Cox, K., Verner, J., & Phalp, K. T. , B-SCP: A requirements analysis framework for validating strategic alignment of organizational IT based on strategy, context, and process. Information and software technology, 48(9), 846-868, 2006. • [20] Bitner, M. J., Ostrom, A. L., Morgan, F. N., “Service blueprinting: a practical technique for service innovation”, California management review, 50(3), 66-94, 2008. • [21] Uchihira, N, et al., “Analysis and design methodology for recognizing opportunities and difficulties for product-based services”, Journal of information processing, 16, 13-26, 2008. • [22] Lai, C. T. A., Jackson, P. R., Jiang, W., “Designing service business models for the internet of things: aspects from manufacturing firms”, American journal of management science and engineering, 3(2), 7-22, 2018. • [23] Leminen, S., Westerlund, M., Rajahonka, M., Siuruainen, R., “Towards IOT ecosystems and business models”, Internet of things, smart spaces, and next generation networking, 15-26, Springer, 2012. • [24] Westerlund, M., Leminen, S., Rajahonka, M., “Designing business models for the internet of things”, Technology innovation management review, 4(7) 5–14, 2014. • [25] Glova, J., Sabol, T., Vajda, V., “Business models for the internet of things environment”, Procedia economics and finance, 15, 1122-1129, 2014. • [26] Ide, M., Amagai, Y., Aoyama, M., Kikushima, Y., “A lean design methodology for business models and its application to IoT business model development”, IEEE agile conference (AGILE 2015), 107-111, 2015. • [27] Uchihira, N., et al., Service innovation structure analysis for recognizing opportunities and difficulties of M2M businesses, Technology in Society, 43, 173-182,2015. • [28] Friedenthal, S., Moore, A., Steiner, R., “A practical guide to SysML: the systems modeling language (3rd edition)”, Morgan Kaufmann, 2014. • [29] Ogawa, K., “Open & Close Strategy, 2nd edition (in Japanese),” Shoeisha, 2015. • [30] Oliva, R., Kallenberg, R., “Managing the transition from products to services”, International journal of service industry management, 14(2), 160-172, 2003. • [31] Osterwalder, A., Pigneur, Y., Bernarda, G., Smith, A., “Value proposition design: How to create products and services customers want”. John Wiley & Sons, 2014. • [32] Chao, L. P., Ishii, K., “Design process error proofing: failure modes and effects analysis of the design process”, Journal of mechanical design, 129(5), 491-501 (2007).

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IoT Innovation Design Method (Picmet2019 Presentation)

  • 1. PICMET2019@Portland Naoshi Uchihira Japan Advanced Institute of Science and Technology Innovation Design Method for the Internet of Things: Requirements and Perspectives JAIST TB-04 Internet of Things (IoT) Tuesday, 8/27/2019, 10:30 - 12:00 Room: Galleria III
  • 2. 2 Summary and Contribution What is IoT Innovation Design Method? Why is IoT Innovation Design Method Required General Requirements and Perspectives of IoT Innovation Design Method Proposed IoT Innovation Design Method which consists of 4 steps. Evaluation PICMET2016 Refined Version New New
  • 3. 3 Contents •Background and Purpose •Literature Review •5 Requirements and 4 Perspectives •Proposed IoT Innovation Design Method •Evaluation •Summary and Contribution
  • 4. 4 Contents •Background and Purpose •Literature Review •5 Requirements and 4 Perspectives •Proposed IoT Innovation Design Method •Evaluation •Summary and Contribution
  • 5. 5 Background: IoT System Plants Social Infrastructure Offices Healthcare Data Handling Data Analytics Decision Making Control Sensing Cyber World (Cloud) Physical World “IoT Systems” in a broad sense are Cyber Physical System.
  • 6. 6 Background and Purpose •Rapid progress and spread of the Internet of Things (IoT), cloud computing, and artificial intelligence are bringing innovative changes. •Large, medium, and small enterprises, as well as non-IT enterprises, have various chances of IoT innovation; however, they face various difficulties. Engineering method for systematically designing “IoT innovation” is required
  • 7. 7 Purpose: IoT Innovation Design Method The engineering method provides design viewpoints, charts (frameworks), and a systematic design procedure without relying on individual tacit knowledge and specialists’ skills (e.g. Steve Jobs). Step 1 Chart 1 Chart 2 Chart 3 Step 2 Step 3 Step 4
  • 8. 8 Expansion of Engineering Design Method Innovation Design Service Design Product Design Software Design • Structured Design • OOD/OOA • UML Business Process Design Dynamically changing and competitive environment
  • 9. 9 Why is IoT Innovation Design Required? Marketing Planning Development Operation Marketing Planning Development Operation Old Approach (Waterfall) The Same TeamDifferent Teams New Approach (Agile)
  • 10. 10 Contents •Background and Purpose •Literature Review •5 Requirements and 4 Perspectives •Proposed IoT Innovation Design Method •Evaluation •Summary
  • 11. 11 LITERATURE REVIEW •Business Model Design •Upstream System Design •IoT Business System Design
  • 12. 12 Research Activities on Business Model Source: DaSilva & Trkman [7] Amit & Zott [8], Chesbrough [9], Teece [10], Zott & Amit [11], etc
  • 13. 13 Business Model Design • Business model canvas [5] and business model navigator [13] • Aceti & Singarayar [15] proposed a business model design method based on a business model framework. • Dijkman et al. proposed a business model framework for IoT applications based on the business model canvas [14]. Dijkman et al.[14]
  • 14. 14 Upstream System Design including Business • Business process modeling notation (BPMN [17]) • Goal orientation in requirements engineering: B-SCP [12] which has been proposed as a method to analyze requirements of business systems by goal orientation. • Service science and service engineering, design methods: Service Blueprints [20] and DFACE-SI [21]. BPMN [17]
  • 15. 15 IoT Business System Design •Glova et al. applied the technique of requirements engineering to the design of IoT business system based on e3-value [25]. •Ide et al. proposed a design method for IoT business system by extended business model canvas and system model canvas [26]. •We have proposed the IoT service business ecosystem design PICMET2016 [2] which features ecosystem design and project risk management. But, it was complicated for practical use. •There are no measure for evaluation and comparison for various IoT business design methods.
  • 16. 16 IoT Business System Design •This paper shows general requirements and perspectives that IoT innovation design method should satisfy. •This paper proposes a concrete IoT innovation design method (a revised version of PICMET2016 [2]) then evaluate it according to these requirements and perspectives.
  • 17. 17 Contents •Background and Purpose •Literature Review •5 Requirements and 4 Perspectives •Proposed IoT Innovation Design Method •Evaluation •Summary and Contribution
  • 18. 18 Five Requirements of IoT Innovation Design Method A) Effectiveness, efficiency, and comprehensiveness Thinking and discussion in individuals and groups become more effective, efficient and comprehensive using IoT domain knowledge. B) Simplicity for continuous PDCA cycle For reviewing in the continuous PDCA cycle, it is desirable that the design method be as simple as possible and easy to understand. C) Standardization and customization It is necessary to establish the design method as a common language (a communication tool) between stakeholders. D) Verification of design output In order to be an engineering design method, a V&V (Verification & Validation) method is required. E) Evaluation of design method In order to evolve the design method, it is necessary to evaluate the effectiveness of the proposed design method.
  • 19. 19 Value Design System Design Strategy Design Project Design Innovation Design Value Proposition Intelligent Processing Architecture Competitive & Cooperative Strategy Risk Management Four Perspectives of IoT Innovation Design Method
  • 20. 20 Four Perspectives of IoT Innovation Design Method A) Value Design: Value Proposition It is important to clarify what value you would like to propose to whom. In bad cases, IoT itself become purpose. B) System Design: Intelligent Processing Architecture It is necessary to clarify how to derive proposed values from IoT sensor data by using AI in system design. C) Strategy Design: Competitive & Cooperative Strategy It is necessary to consider both competitive strategy and cooperative strategy in business ecosystem. D) Project Design: Risk Management in IoT transformation The task of identifying specific risks in advance and taking countermeasures is extremely important.
  • 21. 21 Contents •Background and Purpose •Literature Review •5 Requirements and 4 Perspectives •Proposed IoT Innovation Design Method •Evaluation •Summary and Contribution
  • 22. 22 Proposed IoT Innovation Design Method Step1: Clarification of customers and proposed value Step2: Relationship among data and proposed values Step3: Design Open & Closed Strategy Step4: Risk Management for IoT Innovation Project Value Proposition Canvas SCAI Graph Open&Closed Canvas Project FMEA Business Model Canvas Procedure Charts Value Design System Design Strategy Design Project Design Transformation Project
  • 23. 23 Step 1: Clarification of customers and proposed values Value Proposition Customer Profile Fit Oversight of Abnormalities Increased burden of caregivers Autonomy of Elderly Person Family Relief Abnormality Detection Decreasing burden of caregivers by remote monitoring Autonomy Promotion by Smart Speaker Interaction Remote Monitoring by Family Customer Job Customer Pain Customer Gain Product &Service Pain Reliever Gain Creator Watching & Interaction Service Autonomy Promotion Service Optimal Scheduling of Visiting Care Visiting Care Service ラベル ラベル ラベル ラベル label label label label KP VP KR KA CR CS CH CS RS Visiting Care Service Company (End User: Elderly Person) Watching & Interaction Service Autonomy Promotion Service Remote Monitoring and Visualization Information Sharing Know-how of Watching & Interaction System Development Manufacturer of Watching Device Data Scientist Watching & Interaction Service Fee System Development & Operation Cost Consulting Consulting Fee Behavior Model DevelopmentManufacturer of Smart Speaker Connection with Care Service Company Consultant Employment Cost Device Procurement Cost Ideation Method (KJ Method) Value Proposition CanvasBusiness Model Canvas Step1:Value Design Step2: System Design Step3: Strategy Design Step4:Project Design • Ideate using the KJ method. • Clarify customers and proposed values using value proposition canvas and business model canvas.
  • 24. 24 Step 2: Relationship among data and proposed values The relationship between sensor data and proposed value is clarified using SCAI graph. SCAI Graph Step1:Value Design Step2: System Design Step3: Strategy Design Step4:Project Design Value Proposition Analytics& Intelligent processing Connection Sensing Watching Service Autonomy Promotion Home Appliances Controller Smart Speaker Visiting Care Schedule Elderly People Profile Home Appliances Operation Elderly People Interaction Anomaly Detection Behavior Analysis Optimal Scheduling of Visiting Care Visiting Care Record Optimization Visualization of Daily Rhythm Communication with Family Human Input
  • 25. 25 Patterns of Analytics & Intelligent Processing Pattern Explanation Visualization Visualize huge data as forms in which human can easily recognize. Human makes final decisions based on visualized data. Identification by Monitoring and Searching Identify some data that satisfy specific conditions among huge data by automatic monitoring and searching. Estimation and Prediction based on the Model Estimate and predict some situation based on the models which are constructed by stochastic methods and/or machine learning methods from huge data. Optimization Make optimal decisions and plans using optimization techniques from information derived from “Identification by Monitoring and Searching” and/or “Estimation and Prediction based on Model”.
  • 26. 26 Step 3: Design Open & Closed Strategy ProcurementEngineeringFull-turnkeySolution TechnologyAssessment Open Area Closed Area Core Resource Knowledge Resource Procurement Resource Deployment Resource Elderly Person Living in Home Data Scientist Researcher of Elderly person interface Application Developer Visiting Care Service Company Manufacturer of Watching Device Manufacturer of Smart Speaker Know-how of Watching & Interaction Connection with Care Service Company Watching & Interaction Platform Market Step1:Value Design Step2: System Design Step3: Strategy Design Step4:Project Design Design open & closed strategy in the business ecosystem using the open & closed canvas. Open & Closed Canvas
  • 27. 27 Step 4: Risk Management for IoT Transformation Type Failure Mode Cause Effect Action Basic Tech. (A) Elderly don’t respond much to smart speaker. Lack of understanding of elderly behavior. Difficult to realize watching & interaction service. Sufficient investigation of elderly behavior. Basic Tech. (A) Behavior model is not accurate. Bad accuracy of data. Behavior is too diverse. Difficult to realize optimal scheduling care plan. Focus on visiting care records. Operati on Tech. (C) Nonconformity of smart speaker APIs. Various applications and APIs. Necessity to develop for many types of speakers. Development limited to a specific smart speaker. Market (D) Small and limited number of user companies. Limited benefits for companies. Difficult to continue investment as a business. Operate within additional features of existing service. Organiz ation (F) No synergy effect with existing system. No merit for organization of existing system Connection with existing customers can’t be used Same person responsible for new and existing businesses Step1:Value Design Step2: System Design Step3: Strategy Design Step4:Project Design Assume risks of the IoT transformation project and prepare countermeasures with Project FMEA. Project FMEA (Failure Mode and Effect Analysis)
  • 28. 28 Step 4: Risk Management for IoT Transformation Step1:Value Design Step2: System Design Step3: Strategy Design Step4:Project Design Using difficulty map, designers can extract possible risks as “failure mode” by forced association. Difficulties of IoT Innovation The sea of ​​Darwin Scalability Computing Resource Device Management Device Authorization Interoperability Regulation Security & Privacy Career Portability Many Standards Market Size Gaps of Operators Data Quality Charge Cost of Device & Communication Many Stakeholders Accountability Application Management Unexpected Trouble Distribution of profit and loss Analytics Resistance to change Prejudice based on failure experience Mismatch of Evaluation Lack of cooperation (A) Basic Technology (B) Technology Management (C) Operation Management (D) Market & Customers Need and Seed Fit User Experience Solution Fragmentation Social Acceptance (E) Business Strategy& Business Ecosystem Speed& Agile (F) Organization Business Synergies Service Continuity Data Utilization in Field Cost and Return Balance Difficulty Map of IoT Transformation
  • 29. 29 Contents •Background and Purpose •Literature Review •5 Requirements and 4 Perspectives •Proposed IoT Innovation Design Method •Evaluation •Summary and Contribution
  • 30. 30 Evaluation (1) : Five Requirements Requirement The Proposed Method (A) Effectiveness, efficiency, & comprehensiveness The method introduces an complementary chart (SCAI graph) that has domain knowledge peculiar to IoT innovation in addition to Business Model Canvas (BMC). (B) Simplicity The method based on simple and standard charts (BMC). SCAI graph becomes simple after refinement of the original SCAI Matrix. (C) Standardization and customization The method based on simple and standard charts (BMC). (D) Verification Under construction. The basic concept was presented in IEEE GCCE 2016 [1] (E) Evaluation Under construction. Awareness of various chances and risks using the design method can be measured by the cognitive approach.
  • 31. 31 Evaluation (2) : Four Perspectives Design Method Value Design System Design Strategy Design Project Design Business Model Canvas (BMC) for IoT [Dijkman:14] Value proposition (VP) is a main feature of BMC. Channel (CH) slightly suggests system structure. Partner (KP) and key resource (KR) slightly suggest a strategy. Key activity (KA) slightly suggests project design. IoT business modeling based on e3-value [Glova: 25] e3-value model and profitability evaluation. Business process and information system viewpoint. No particular mention. No particular mention. Lean design methodology [Ide: 26] XBMC (eXtended BMC) SMC (System Model Canvas) No particular mention. No particular mention. The proposed method BMC and value proposition canvas for value design. SCAI graph for identifying relationship between data and value. Open & closed canvas to clarify competitive and cooperative strategy in ecosystem. Project FMEA for recognizing future chances and risks.
  • 32. 32 Evaluation in Lectures and Workshops •More than 160 IoT professionals have joined my lectures and workshops of IoT Innovation Design Method.
  • 33. 33 Summary and Contribution What is IoT Innovation Design Method? Why is IoT Innovation Design Method Required General Requirements and Perspectives of IoT Innovation Design Method Proposed IoT Innovation Design Method which consists of 4 steps. Evaluation PICMET2016 Refined Version New New Future Work: Quantitative evaluation of IoT innovation design method by experimental design workshops.
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