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3 Disruptive Trends Influencing the Innovation Pipeline of the Future
I.P. Park
EVP & CTO-HARMAN International
Tuesday, December 3, 2013
Harman International Industries, Incorporated (NYSE:HAR) is engaged in the developing, manufacturing and marketing of audio products and electronic systems. The company has a market capital of $5.61.

Leading companies in all industries are facing
significant challenges and opportunities as we make our way through a period of transition in
the realm of cutting-edge technology.The key to success will be the ability to evolve the way we approach technological development and how
we address the current dramatic shift of the IT & Communications technology (ICT) paradigm of our connected mobile universe. Three new major
"growth" technology themes are just as important for our future technology innovation. They are Big Data, Smart Connectivity and User Experience.

Today, we are in the middle of a far more dramatic transition into yet another new era of mobile computing,in which smartphone sales now surpass desktop and laptop computer sales
combined. Ever-smaller devices, third party
applications and robust mobile networking are already launching computing to new heights, forever changing the technology paradigm as
we know it.

This mobility-based, connected universe will very soon have trillions of connected devices and sensors, serving billions of users, with millions of apps. Virtually everything will be
connected together and the collective intelligence that results will make devices and thus each life-action smarter - hence, the coining of the term "smart connectivity."
This new mobile, connected, appcentric universe both consumes and generates data. Every day, 2.5 exabytes of data are created, and this number doubles each month. 90 percent of the
world's data was created in the last two
years. The Big Data universe captured in massive collections of virtual servers we call "the cloud" can now be processed by intelligent analytics, allowing for communications, solutions and services that are increasingly
personalized, targeted and efficient.

Continued exponential growth in the data universe is a given. Tomorrow's successful innovators will be those who provide users with access to this prolific content as a perfectly unified lifestyle experience. As consumer devices increasingly break from their current
physical limitations and become even more intuitive they will have the ability to anticipate user needs and proactively serve
up appropriate entertainment,information, and lifestyleservices.

Big data

Big Data has generated a great deal of 'buzz', but given the massive,unstructured and potentially overwhelming amount of information
generated, there is debate over the amount of value that can be derived. However, new technologies are emerging to help solve the unique problems presented by Big Data, providing
tools that could elicit real insight. The promise of Big Data is not centered solely on efficient computer science techniques, which are critical, but rather the tremendous insight that the analysis of Big Data can bring. Yet,
while the future potential is massive,it is important to note that Big Data is still in its infancy. According to a 2013 Actuate Corporation study, only a few large companies with revenues over $1 billion are actively involved in Big Data projects. Most companies not actively pursuing Big Data projects cite the
lack of expertise and anticipated costs.
Nevertheless, Big Data is estimated to
be big business.

Smart Connectivity

From personal fitness devices that follow our every movement and transmit the results to precise fitness tracking apps, to cars that notify us well before a maintenance problem occurs,we are witnessing a transformative
time in electronics— the era of smart devices that connect, communicate and inform.

Smart Connectivity is built upon two main principles—Technology-Centric Convergence and Smart Everything. The first, Technology-
Centric Convergence, allows for intelligent and seamless experiences to reach across domains. Taking this a step further, Smart Everything
means that devices will become increasingly intelligent and aware of their surroundings. Communications capabilities will extend to products traditionally without electronics.
While Big Data is still in its infancy, Smart Connectivity is upon us now and it presents major opportunities for the re-invention of entire product categories. About one billion people currently use the mobile Internet, but
soon there will be trillions of sensors
around us that form a connected network of lifestyle solutions to quickly and quietly help us with our daily life. Innovators must embrace the two large product trends of Technology-Centric Convergence and Smart Everything to
maintain relevance in the increasingly
connected world.

user experience

User Experience (UX) is an area
of design focused on the holistic
interaction a user has with a product or a
service. This includes the user interface
(UI), but goes way beyond that, also
covering the user's expectations
and even emotions, as well as other
intangible factors. Over the last few decades, UX design has evolved dramatically and is increasingly being made the center of the design process. UX is highly relevant for a product or service because it can become the main product differentiator in otherwise
mature product areas.

But what are the qualities of a
good UX? Intuitively, "ease of use" is often brought up as an initial criterion.However, when digging deeper, it seems that this criterion is not precise enough to provide successful UX design guidance. And by 'digging
deeper,' I do not mean technically, but psychologically. Like all user interface related UX has a deep root in psychology. This makes sense if one considers that a user interface is the interface between a piece of
technology and a human. The best innovators understand both sides, the technological aspects and the human aspects (or human factors), to be successful in UI and UX design.

Future-Proof R&d

The three defining trends — Big Data, Smart Connectivity, and the future User Experience, require that innovation reaches beyond traditional hardware and software development.
Modern R&D strategies for technology companies must holistically consider and incorporate multiple domain disciplines ranging from software technology and industrial design to
human psychology and socio-cultural influences such as music, art and literature.

Technology companies also need to manage and aggressively prioritize their company’s growing portfolio of technology building blocks and third party applications. Open innovations
with potential for reuse across the
company and integration with third party
applications will take on an increasingly important role. Each technology building block should be evaluated not just for its merits as an incremental contribution to today's
products, but also for its potential
contribution to the customer experience
of tomorrow.

This process can help companies develop a pipeline of continuously flowing innovation to targeted divisions that hold the biggest potential impact – a process that I like to call
"Future-Proof R&D." This new way of thinking will be critical to the endurance of companies that wish to maintain relevance and a reputation
for innovation in the new technology paradigm, and importantly, help companies be in a position for major profitable growth in this new era.
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