Page 125 - Harvard Business Review (November-December, 2017)

MANAGING YOURSELF

ARE YOU SUITED FOR Relative to established organizations, start-ups can be
A START-UP? hard to figure out. What are the jobs to be done? The best
entry points? How can you tell whether a company has
Jeffrey Bussgang | page 150 potential for success and is the right fit for you?
The author advises that you first assess whether you’re
suited for a young, entrepreneurial organization. Start-up
joiners need to do three things well: manage uncertainty,
HOW DOES AUGMENTED
SPOTLIGHT HOW DOES AUGMENTED REALITY WORK? MANAGING YOURSELF push the limits, and think like an owner.
How Does Augmented He then outlines four steps for choosing the right
Reality Work? maintenance technician, can look at the same REALITY WORK? BY JEFFREY BUSSGANG
Augmented reality starts with a AR can provide a view of the real-time roles, such as a machine operator and a ARE YOU SUITED
camera-equipped device—such as a data flowing from products and allow users
smartphone, a tablet, or smart glasses— to control them by touchscreen, voice, or object but be presented with different AR FOR A START-UP? company: Pick a domain (find a field you’re passionate
experiences that are tailored to their needs.
gesture. For example, a user might touch a
loaded with AR software. When a user stop button on the digital graphic overlay A 3-D digital model that resides in the
points the device and looks at an object, within an AR experience—or simply say the cloud—the object’s “digital twin”—serves
the software recognizes it through word “stop”—to send a command via the as the bridge between the smart object
computer vision technology, which cloud to a product. An operator using an and the AR. This model is created either A step-by-step school, I had two job offers.
hen I finished business
AR headset to interact with an industrial
by using computer-aided design, usually
analyzes the video stream. robot might see superimposed data about during product development, or by using The first was from the Boston
The device then downloads information
the robot’s performance and gain access
technology that digitizes physical objects.
Consulting Group, where
about the object from the cloud, in much to its controls. The twin then collects information from the I’d worked before my MBA about); pick a city (preferably in an entrepreneurial hub);
W program—the obvious choice
the same way that a web browser loads a As the user moves, the size and product, business systems, and external for a young professional in search of a stable,
page via a URL. A fundamental difference is orientation of the AR display automatically sources to reflect the product’s current lucrative career. The second was from a
that the AR information is presented in a 3-D adjust to the shifting context. New graphical reality. It is the vehicle through which the Series A–stage venture-backed start-up
“experience” superimposed on the object or text information comes into view while AR software accurately places and scales with only 30 employees that wanted to
rather than in a 2-D page on a screen. What other information passes out of view. up-to-date information on the object. environment—a much riskier bet. I accepted
transform the internet into a secure business
the user sees, then, is part real and part digital. In industrial settings, users in different HBR Reprint R1706B explanation of how the second offer and never looked back. pick a stage (“jungle,” “dirt road,” or “highway”); and
In the years since, I’ve worked for three
start-ups and, as a venture capitalist,
invested in more than a hundred. I’ve
learned a lot not just about how to found
customers, hiring a team—but also about
what it takes to join a start-up and help
85 0 16KG a company—raising money, finding initial
TEMPERATURE 85 0 16KG WEIGHT build it into a large, successful organization.
TEMPERATURE 85 0 TEMPERATURE WEIGHT 16KG WEIGHT 1 1 1 interactive three- who work alongside founders to develop
Joiners are employees number two to 2,000
their ideas into real businesses.
ASSEMBLY V2 COMPUTER VISION 1 Making this leap is rarely easy. Relative
ASSEMBLY V2 ASSEMBLY to established organizations, start-ups can pick a winner (do due diligence on the founding team, the
V2 done? The best entry points? How can you
be hard to figure out. What are the jobs to be
1. A device with AR software analyzes a video stream and recognizes an object either by
1. A device with AR software analyzes a video stream and recognizes an object either by
identifying a marker on it or matching its shape with an object in a database. The user interacts with
1. A device with AR software analyzes a video stream and recognizes an object either by
success and is the right fit for you?
AR EXPERIENCE 1 An AR-enabled device 3 Data from sensors on 5 tell whether a company has potential for
identifying a marker on it or matching its shape with an object in a database. the object by sending
identifying a marker on it or matching its shape with an object in a database. commands to the cloud
stream and identifies streams to the twin and
the physical object
analyzes a video
may be combined there
through a touchscreen;
a physical object by
2. The software connects with an interactive, 3-D digital facsimile of the object in the cloud,
2. The software connects with an interactive, 3-D digital facsimile of the object in the cloud,
with data from business
by voice; or with
2. The software connects with an interactive, 3-D digital facsimile of the object in the cloud, INDUSTRIAL ROBOT 150 HARVARD BUSINESS REVIEW NOVEMBER–DECEMBER 2017
recognizing its
called a “digital twin.”
attached to it.
gestures (which requires
shape or a marker
called a “digital twin.” sources. systems and external enabled headsets or dimensional experiences
called a “digital twin.”
smart glasses).
3. Data from the target streams to the twin and may be combined there with data streaming in
3. Data from the target streams to the twin and may be combined there with data streaming in
from business systems and external sources.
3. Data from the target streams to the twin and may be combined there with data streaming in
from business systems and external sources.
from business systems and external sources.
2 AR software connects 4 The software retrieves market, and the business model).
5 5 5 4 4 4 2 2 2 4. The software retrieves information from the twin, such as performance data about the
4. The software retrieves information from the twin, such as performance data about the
6 Control commands,
the twin, such as
information from
facsimile of the object
with a 3-D digital
performance data about
5 4 2 object or interaction instructions, and superimposes it on the user’s view. such as “stop,” are 3 3 3 3 6 6 6 6
4. The software retrieves information from the twin, such as performance data about the
in the cloud, called a
object or interaction instructions, and superimposes it on the user’s view. received by the
object or interaction instructions, and superimposes it on the user’s view. cloud and sent on
5. The user can send commands to the cloud using a virtual touchscreen; voice commands; or
“digital twin.” the object or interaction
5. The user can send commands to the cloud using a virtual touchscreen; voice commands; or
gestures (which require enabled headsets or smart glasses).
5. The user can send commands to the cloud using a virtual touchscreen; voice commands; or
to the object.
device superimposes it
instructions, and the AR
on the user’s view.
gestures (which require enabled headsets or smart glasses).
gestures (which require enabled headsets or smart glasses).
6. Control commands, such as “stop,” are received by the cloud and sent on to the object.
6. Control commands, such as “stop,” are received by the cloud and sent on to the object.
6. Control commands, such as “stop,” are received by the cloud and sent on to the object. CLINT FORD come to life Once you’ve made those choices, you’ll need to sell
CONNECT DIGITAL TWIN
VISUALIZE OR INSTRUCT/GUIDE DIGITAL TWIN DIGITAL TWIN SENSOR DATA
INTERACT CONTROL
ANALYTICS ANALYTICS
ANALYTICS yourself, and Bussgang suggests how: Identify key players
at the companies you’re interested in and find ways to
connect with them. When you meet, articulate how you
can contribute, engage your interviewers about their
work, and offer expertise, advice, or contacts with no
Augmented Reality in AUGMENTED REALITY expectation of reciprocity. Suddenly you’ll be perceived as
the Real World
WHO’S INVESTING THE MOST? ENTERPRISE ROLES… IN THE REAL WORLD someone who is already adding value.
Percentage of executives in each industry who say they are currently Percentage of surveyed developers creating AR experiences in each use category
making substantial investments in AR, and percentage anticipating
substantial investments in three years SERVICE Manuals and instructions, service
inspections, remote expert
2017 2020 guidance, customer self-service
AUTOMOTIVE MANUFACTURING
TECHNOLOGY, Quality assurance, assembly
MEDIA & instructions, performance HBR Reprint R1706M
TELECOM dashboards
HEALTH CARE SALES & MARKETING Data on who’s investing
Product displays & demos,
augmented advertising,
RETAIL & CONSUMER optimization of retail space
DESIGN
Collaborative engineering,
INDUSTRIAL PRODUCTS inspections of digital prototypes
POWER & UTILITIES OPERATIONS Heads-up displays, digital product
manuals
PUBLIC controls, augmented operator
SECTOR the most, the explosive
TRAINING
ENERGY & Job-specific training, safety &
MINING security training, coaching
FINANCIAL
SERVICES OTHER
assurance for buildings
HOSPITALITY Surgical guidance, quality
& LEISURE (N=107) 0 5 10 15 20
0 5 10 15 20 25 30 35
SOURCE PWC 2017 GLOBAL DIGITAL IQ SURVEY, TAKEN BY 2,216 BUSINESS AND IT growth of headsets,
…AND STRATEGIC GOALS
EXECUTIVES FROM 53 COUNTRIES
AR HEADSETS TAKE OFF Percentage of respondents citing each reason as the primary goal of their AR
development program
Projected growth in augmented reality headset unit shipments HIGHER MANUFACTURING
worldwide (in millions) QUALITY
30
GREATER SALES REVENUE
25 SHORTENED DEVELOPMENT CYCLE and the most popular uses
20 ENHANCED END-USER
EXPERIENCE
METHODS
15 IMPROVED TRAINING
10 PRODUCT DIFFERENTIATION
5 BETTER SERVICING 25 of AR
ENHANCED MONITORING
0 CAPABILITIES
2016 2017 2018 2019 2020 2021
0
5
AND VIRTUAL REALITY HEADSET TRACKER
SOURCE INTERNATIONAL DATA CORPORATION 2017 WORLDWIDE QUARTERLY AUGMENTED (N=100) SOURCE PTC SURVEY OF THINGWORX STUDIO PILOT PROGRAM PARTICIPANTS 10 15 20
HBR Reprint R1706B
NOVEMBER–DECEMBER 2017 HARVARD BUSINESS REVIEW 59
SPOTLIGHT ONE COMPANY’S EXPERIENCE WITH AR ONE COMPANY’S
One
Company’s EXPERIENCE WITH AR
Experience
with AR A conversation with
Guido Jouret, the chief
digital officer of the
Guido Jouret joined the Swiss facing. The first is the aging of the skilled
industrial giant ABB in 2016, after workforce. In the oil and gas industry, for
example, there was a massive employment
spending more than two decades surge in the 1960s and 1970s and then a
in technology leadership roles at hiring lull. As a result, you now have a industrial giant ABB
Cisco and Nokia. As chief digital lot of older workers retiring, taking skills
officer, he helps lead the $34 billion and institutional knowledge with them.
company’s technology strategy A similar dynamic is happening in many
in green power, transportation, other industries. Second, we have a lot
more machines in remote locations, and we
robotics, and automation in over 100 want to be able to monitor, operate, and fix
A CONVERSATION WITH countries, and he champions its AR those machines with fewer people on-site.
ABB’S CHIEF DIGITAL
initiatives. Here, Jouret describes
AR’s transformative potential—and
And the third challenge is the growing
OFFICER, GUIDO JOURET why many businesses underestimate complexity of new technologies, which
BY GARDINER MORSE the change that’s coming. What pilots are you doing?
require new technical skills.
Why is ABB interested in augmented In our pulp and paper business, we’re
reality? working on AR that will allow us to service
AR can help address three macroeconomic the equipment of remote customers without
challenges that we—and our customers—are sending in technicians. Today a customer
60 HARVARD BUSINESS REVIEW NOVEMBER–DECEMBER 2017
SPOTLIGHT THE BATTLE OF THE SMART GLASSES THE BATTLE OF THE
The Battle of the
Smart Glasses SMART GLASSES
Money is pouring into
development, and
MICROSOFT HOLOLENS R-7 ODG ENTERPRISE GOOGLE GLASS
EDITION
To date, the lack of affordable, lightweight, high- information (What does that sign say in my language?) on a virtual whoever wins the
screen that hovers before them whenever and wherever needed.
performance smart glasses has been a barrier to augmented What will the next generation of wearables look like? Google
reality’s widespread adoption. The head-mounted displays
(HMDs) most businesses use for AR tend to be expensive was first to market with Google Glass, a visionary effort that stalled
and cumbersome, and none of the options available to for a variety of reasons, including high cost and privacy concerns.
consumers have achieved broad acceptance. Microsoft subsequently launched the HoloLens, which many view
as promising, but it is expensive ($3,000), has a narrow field of view,
But the race to develop a popular version of this new and is somewhat bulky. (It’s more of a headset than a pair of glasses.)
digital interface is on—and is attracting both tech titans and 2017 introduction of the AR-capable iPhone X hint at that possibility. race may earn the
The HoloLens may prove adequate for some business applications
upstart inventors. Investors are pouring money into wearables but is not yet ready for consumer use. Famously secretive Apple is
development, betting that HMDs running AR will ultimately disrupt rumored to be developing user-friendly smart glasses; the mid-2017
the market for phones and tablets. The screens in consumers’ launch of its ARKit developer software for AR apps and the fall
pockets will be replaced by AR interfaces that people put on—and
keep on—without a second thought, just as they do sunglasses. Google recently released an improved Glass and launched ARCore,
In this Spotlight package we have described how businesses are
a direct response to ARKit. Numerous other companies are jumping
using AR to improve visualization, instruction, and interaction. into the market. Among them are Magic Leap, a start-up that has
These same capabilities will allow HMDs to become the consumer already raised $1.4 billion to develop a head-mounted virtual retinal
interface for many products and forms of data. Consumers will use display, and three companies converging on a sunglasses-like CLINT FORD title of world’s most
hand gestures and voice commands to access information about concept: Osterhout Design Group (ODG), Vuzix, and Meta.
and interact with the machines and devices around them, including The stakes are high. Whoever wins the glasses wars will control
appliances; audio systems; and home heating, cooling, lighting, a technology that transforms how people interface with the digital
and alarm systems. Smart glasses will guide people through the and physical worlds—far more than the iPhone did a decade ago. In
world, allowing them to summon instructions (How do I change a this next round of the mobile-device arms race, the title of world’s
tire?), directions (Where’s the subway entrance?), and even tourist most valuable company could be up for grabs. HBR Reprint R1706B valuable company.
62 HARVARD BUSINESS REVIEW NOVEMBER–DECEMBER 2017
THE COMPLETE SPOTLIGHT PACKAGE IS AVAILABLE
IN A SINGLE REPRINT. HBR Reprint R1706B