What Next for Electronic Devices?

What’s Next for Electronic Devices

A white paper in summary format, May 2009

Hello.

Copyright © 2009 Altium Limited 2

Hello.

Altium is a worldwide software company, based in
Australia.


Hello.

Altium is a worldwide software company, based in
Australia.

We create, develop and market a unified electronics design
solution we call Altium Designer.


We recently decided to put the world of electronics design
on notice.


We recently decided to put the world of electronics design
on notice.

And you may have seen some of our announcements.


Our intent is to shake things up a little.



We want to challenge plenty of conventional thinking.



We want to challenge plenty of conventional thinking.

And we want to help electronics designers recognize some
difficult truths.


But most of all, we want to help designers make that
change.


The electronics design industry has grown up.



There’s a new generation out there.



There’s a new generation out there.

And it’s a generation comfortable and conversant with
being connected.


Electronic products are no longer technological wonders.


Electronic products are no longer technological wonders.

Instead, they are a lifestyle.


Can the electronics industry satisfy the demands of this
next generation?


Can the electronics industry satisfy the demands of this
next generation?

Not with old generation thinking and design processes.


The next generation of electronics products will be plugged
into ‘ecosystems’ of connected users.


The next generation of electronics products will be plugged
into ‘ecosystems’ of connected users.

The metal, silicon and plastics used to make next
generation products will be much less relevant in this much
broader view.


Apple’s iPod is a good example.



Its success comes from the music and download systems
that sit behind what you hold in your hand.



Its success comes from the music and download systems
that sit behind what you hold in your hand.

It’s not just the groovy features on the iPod itself.


Tomorrow, users of all types of electronics product, not just
consumer products, will want their products connected in
this way.


Are we there yet?


Are we there yet?

Not really.


Are we there yet?

Not really.

Try this experiment. Go into your local consumer
electronics store once a week.


After a few months, you’ll notice something interesting.



Not much is changing.



Not much is changing.

There’s plenty on show, but very few new concepts.


That’s why we all get excited when Apple launches
something new.


something new.

It breaks the innovation drought.


something new.


But despite their best attempts, Apple’s competitors never
seem to catch up.


something new.


But despite their best attempts, Apple’s competitors never
seem to catch up.

Why?


Because Apple has an ‘ecosystem’, not just the iPod.


Because Apple has an ‘ecosystem’, not just the iPod.

And in the face of fierce competition from some of the best
in the business, Apple’s ‘ecosystem’ gives it an edge.


It can offer its customers so much more than just a stand-
alone MP3 player.


alone MP3 player.

And it sells to its customers beyond a single product.


alone MP3 player.

And it sells to its customers beyond a single product.

That’s what everyone must emulate.


The challenge—or the opportunity—is to be different.


Those who lift the whole user experience will find little to
stop them.


Those who lift the whole user experience will find little to
stop them.

This is great if you are a newcomer, very frightening if you
are the market leader.


Creating an ‘ecosystem’ requires an entirely new approach
to electronics design.


It won’t be enough to switch from today’s static design
process to a slightly bigger, slightly better static design
process.


Designers must stop fixating on the electronics hardware,
and focus on the customer experience.


Only then should you seek out the functionality to make this
real.


As an example of this, imagine you make air conditioners.



You can take on your competitors with more efficient,
quieter, more powerful systems.




Or you can undercut them on price.




Or you can undercut them on price.

But what happens when new imports suddenly appear?


Instead, offer a different kind of customer service.



Make it simple for someone to connect to their air
conditioner from anywhere.




Perhaps develop an iPod app so that the customer can turn
on the air conditioning on the way home from the airport.




Perhaps develop an iPod app so that the customer can turn
on the air conditioning on the way home from the airport.

And you, the manufacturer, are also connected, so now
you can monitor performance. Upload new functions. Pre-
empt a service or a fault.


And when the customers move house, you can provide a
new air conditioner with their preferred settings already
uploaded.


You are both tapping into an ‘ecosystem’.


You are both tapping into an ‘ecosystem’.

And the value you have built sits beyond the actual air
conditioner mounted on the wall.


So, if we agree that this is a good idea, what do we change
about how we design electronics products?



Design products that are intelligent and connected.



Design products that are intelligent and connected.

Because adding intelligence lets us connect our products to
the ‘ecosystems’ we create.


And this is possible because of a new revolution, courtesy
of programmable hardware devices.


And this is possible because of a new revolution, courtesy
of programmable hardware devices.

Their effect is similar in size to that of the emergence of the
microprocessor, 30 years ago.


Their functionality is not fixed during manufacture, like
other chips.

Instead, it’s programmed by the designer to perform any
hardware function that’s desired.


So these devices have the potential to change everything.



They bring fluidity to the process of creating hardware.




They let designers do new things in new ways.




They let designers do new things in new ways.

And designers can now manipulate the hardware as easily
as they can modify software.


So designers can now stop thinking of everything as
separate chunks of hardware, programmable hardware and
software.


So designers can now stop thinking of everything as
separate chunks of hardware, programmable hardware and
software.

Instead, they can design functionality.


Doing all this with the old methods and the old rule books
will be a struggle.


Doing all this with the old methods and the old rule books
will be a struggle.

Time to discard them.


Start where the value is, with the ‘ecosystem’ and the
intelligence, which define the functionality, connectivity, and
user experience.


Relegate the hardware to the support role.



This gives you a holistic view of the entire process.




Now you can start exploring and innovating in all those
interesting areas.




Now you can start exploring and innovating in all those
interesting areas.

Now you can spend your valuable time on the stuff that
matters.


And if you use off-the-shelf hardware in your design, you
can go straight to development, test and manufacture,
without breaking into a sweat.


Where electronic products once stood alone, we now have
smart devices connected into ‘ecosystems’.


They span the entire globe, courtesy of the Internet.


The less we rely on fixed hardware to carry the critical
functionality of a product, the better.



We need to exploit software and programmable hardware
to deliver intelligence into devices.



We need to exploit software and programmable hardware
to deliver intelligence into devices.

And both can be updated as we expand our ‘ecosystems’.


Real, sustainable differentiation comes from the
intelligence we program into our electronics devices.


Real, sustainable differentiation comes from the
intelligence we program into our electronics devices.

This is what delivers the unique behavior, functions, and
connectivity.


This is the next generation of electronic products.


Designers need to shift their thinking to be able to create
these next generation designs.


‘Divide and conquer’ no longer works.



The holistic approach is the breakthrough that makes it all
work.



The holistic approach is the breakthrough that makes it all
work.

It brings together the needs of the end user, and the
freedom to create great electronics, and gives you a
sustainable competitive advantage.


The world of electronics design is bound to change forever.

The time has come for a fresh, hard look, at the way we
design electronic products.


To read this as a white paper, and more, go to altium.com.


What Next for Electronic Devices?

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