by Elizabeth Hines | Nov 13, 2017 | Blog, Consumer Electronics, Current Events, Manufacturing & Distribution, Strategy, Supply Chain
As sales and consumer desire continue to increase for drones and home assistants, the second-life market has a huge opportunity for growth.
Consumers are becoming ever-more enamored with their gadgets and toys. Drones and home assistants are becoming more ubiquitous in our homes (and flying around our skies). However, when these machines run their course — either because they break, or a newer model comes out — is there still use for them?
The market for gadgets
The marketplace for drones is an ever-growing one. Last year drone sales increased by an astounding 60%, and revenue grew to $4.5 billion. The drone market can be segmented into two categories — personal and commercial. Personal drones, which many consumers use for photography, is predicted to grow 40% this year, while commercial drones, which can be used for survey maps and delivery services, are expected to grow 60%.
While personal-use drones dominate unit sales, commercial-drone sales — which make up only about 6% of the market — are projected to represent 60% of the market’s revenue. This is due to the high cost of commercial drones, some with costs that exceed $100,000.
Home assistants are another intriguing category on the rise. These products are intended to control various devices in your home, such as thermostats, lighting, and security. These products also allow an individual to shop online using voice commands.
The frontrunner for this market has been Amazon’s Echo devices. As the primary nature of Amazon’s business is e-retail, the Echo device plays perfectly into this. By making it simple and easy to make Amazon purchases through voice command, these devices have great potential to bolster Amazon’s bottom line.
While this market is still in its early stages, Gartner Research expects tremendous growth, projecting $2.1 billion in consumer spending on personal home assistants by the year 2020.
The second-life market
So what becomes of these products as we replace them with newer models? Smart phones offer a sensible comparison when looking at the second-life market for these products. In 2016, consumers sold or traded in used cell phone devices for an average of $140 per device, generating a total of $17 billion worldwide. This selling and trading doesn’t just end after one transaction. It is predicted that at least 10% of premium ($500 and up) smartphones will have at least three users before they are retired.
We can draw a parallel about second-life potential between drones/home assistants and cell phones. Advances in technology render previous models obsolete or, at best, out of date. Consumers who can afford them will gravitate toward newer products. As with cell phones, they will generally look to recoup some of the cost for the newer product by selling or trading in the old one. These can then be sold to consumers looking for less expensive, older models. Even in the case of drones that crash, parts can be salvaged and sold to individuals that are looking to build their own drones.
The markets for these products are all still in early stages, so second-life markets are still in growth stages as well. As sales and consumer desire continue to increase for drones and home assistants, their life cycle will go on long after the first owners have moved on to newer models.
This post originally appeared on EBN Online.
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by Elizabeth Hines | Oct 10, 2017 | Blog, Consumer Electronics, Current Events, Manufacturing & Distribution, Strategy, Supply Chain
Of legal obligation, financial incentives, and convenience, what best drives consumers to practice proper e-waste recycling?
The United States is a nation of consumers, and there are few things we enjoy more than our electronic gadgets. Unfortunately, for every new device — or upgrade — introduced to the market, there’s an older model that becomes obsolete.
The world produced 41.8 million metric tons of e-waste in 2014, according to a study published by the United Nations University. So how can we combat this growing problem?
The recycling option… and sometimes law
Recycling products that we’re no longer using is always good practice. It can help protect the environment from hazards that are in our electronics and batteries. And many times, the device can be refurbished and donated to a person in need.
Sometimes just asking people to recycle isn’t enough, though. Some governments have made it illegal not to recycle. For example, the EU has gone so far as to institute the Battery Directive. Understanding that batteries commonly contain elements such as mercury, cadmium, and lead, the EU has set an objective of improving environmental performances of batteries, and setting a standard for their waste management as well.
In the United States, cities like New York City have made it illegal to simply throw out electronic devices. Instead, residents need to bring their devices to a recycling center, many of them conveniently located at other electronic retail outlets.
Incentives
If less hazardous waste in landfills, a cleaner environment, and compliance with laws and regulations aren’t enough, how about saving money as an incentive to recycle e-waste?
Many manufacturers and retailers offer discounts on purchases with the return of old devices. Best Buy, for example, has experimented with trade-in and recycling programs that offer gift cards or cash for customers who bring in old devices. As programs like this can leave the retailer struggling to break even, they often aren’t financially attractive enough to be the sole incentive drawing consumers to recycle e-waste.
But one incentive that is very effective is also, probably, the most obvious — convenience. One survey found that 43% of respondents would be more likely to recycle e-waste were cell phone and battery recycling part of curb-side pickup.
The convenience of curb-side pickup for paper, plastic, and aluminum helped to make recycling ubiquitous in neighborhoods across the country. It’s the same thought process that leads researchers to believe that the convenience of a curb-side pickup will encourage more individuals to recycle their electronic devices and batteries.
This post originally appeared on EBN Online.
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by Elizabeth Hines | Aug 21, 2017 | Blog, Manufacturing & Distribution, Strategy, Supply Chain
The DoD is gravitating toward advanced authenticating technologies as a means to root out counterfeit electronics in the U.S. military.
Counterfeit electronic parts are a well-documented problem in the military supply chain. At the time of a 2012 Senate Armed Services Committee report that brought the issue to the forefront, over a million counterfeit electronic parts had entered the U.S. military supply chain. The year-long investigation behind the report found 1,800 cases of counterfeits within military systems, ranging from thermal weapon sights to computers to airplanes.
The dangers of fake parts go without saying: Counterfeits not only threaten U.S. national security, but also endanger the lives of servicemen. So what steps is the Department of Defense (DoD) taking to forestall this problem?
A number of firms have developed advanced technologies that aim to authenticate genuine parts and root out counterfeits. Let’s look at a few of the projects for which the government has chosen to see where we might be heading in terms of amelioration.
DNA marking
When you think of computer chips, the first thing that comes to mind probably isn’t plant DNA. But that’s where the Pentagon’s procurement arm, the Defense Logistics Agency, is turning. DLA has contracted biotechnology firm Applied DNA Sciences to rearrange DNA from plants into unique sequences that are encrypted and attached to chips and other electronic components to distinguish authenticity.
Users simply shine a light on the part in question, on which a mark will light up to confirm the existence of the DNA. A quick swab of mark is then submitted for DNA analysis, which determines whether the part is genuine.
If an individual attempts to tamper with the chip in any way, it will distort or remove the DNA mark. The smudged or missing mark should immediately trigger a red flag for whoever is inspecting the part.
Optical scanning
Sometimes the best innovations are the byproducts of other innovations. That’s what happened with optical scanning.
The army originally brought on ChromoLogic LLC for a separate project looking at DNA’s tagging and tracking capabilities. The goal of the research was to find out if a barcoding system could be used with the DNA to improve security.
However, ChromoLogic researchers discovered that optical scanning technology developed to tag and track the DNA code also was capable of distinguishing an authentic part from a counterfeit by reading the component’s surface layer. Because counterfeit parts are forged primarily by altering the surface layer, optical scanning takes as little as one second.
SHIELD
The Defense Advanced Research Projects Agency’s (DARPA) Supply Chain Hardware Integrity for Electronics Defense (SHIELD) program is in the process of developing a small “dielet” that can verify the authenticity of electronic components.
Manufacturers insert the dielet into a component during production without compromising the part’s performance or design. A user can later employ a hand-held probe to provide power to the dielet. The dielet’s serial number uploads to a server, which sends back an encrypted message and data that could indicate tampering.
The goal, according to DARPA Program Manager Kerry Bernstein, is to “build the world’s smallest, highly integrated computer chip.” Success for this program, he says, means that any untrained operator along any point in the supply chain would be able to check and authenticate any component used by the Department of Defense or the commercial sector.
These three advanced authenticating technologies offer promising solutions to this widespread problem compromising the U.S. military supply chain. Which will prevail — if any? With counterfeits infiltrating the system at an alarming pace, the firms developing these technologies have a weighty task in front of them.
This post originally appeared on EBN Online.
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by Elizabeth Hines | Jul 10, 2017 | Blog, Consumer Electronics, Manufacturing & Distribution, Strategy, Supply Chain
With increasing consumer demands comes an increasing need for electronics manufacturers to adapt and change with the times.
Manufacturing operations strive to increase demand fulfillment and to reduce costs. But, too often these objectives seem mutually exclusive in practice. In fact, a 10-year study by Accenture of nearly 250 businesses across industries and sectors found that only 11% were meeting both goals.
So what are the 11% doing differently? Interestingly, the study found that operational flexibility was the common thread binding these companies together. What’s more, they were able to achieve flexibility, reduce costs, and increase demand by adhering to three key principles of operations.
3 pillars of operational flexibility
1) Keep it simple.
It can be difficult to keep up with the growing market demand for product customization while maintaining low overhead costs. But the answer is not fewer SKUs — in fact, quite the opposite. Successful manufacturers have increased product variants while reducing the number of components in each SKU, simplifying production.
A prime example of this is Toyota, which is transitioning from 100 different platform variants to five standard platforms across all its models. The brand will maintain design variation in accompanying components and interior choices. Toyota expects this will enhance the customer driving experience while reducing factory costs by 40% and manpower by about 20%.
2) Embrace digitization.
The supply chain is a series of steps toward getting the product in the hands of the end user. Digitization can break down barriers between steps so the supply chain becomes one integrated process. By offering faster responsiveness through digitalization, businesses can better meet consumer demand in timely manner.
Additionally, digitization can help reduce costs associated with production. An example of this is the use of 3-D printing. Traditional manufacturing processes for building a part are subtractive, creating a lot of scrap and wasted material as a byproduct. Not so with 3-D printing, an additive process using the minimum material necessary to fabricate a part. Less wasted material equals less wasted cost.
3) Develop multi-skilled labor.
Investing in a workforce that can adjust and handle multiple duties is an important aspect of operational flexibility. By cross-training employees, manufacturers are better able to optimize time and effort.
Honda’s ARC line, which trains line members across multiple tasks, offers a prime example. Not only are employees more capable of assessing and solving problems, Honda has been able to improve work efficiency by 10%.
Variables
With increasing consumer demands comes an increasing need for electronics manufacturers to adapt and change with the times. And there will always be unexpected variables and market fluctuations that require operational agility. But by being faster, more flexible, and cheaper, businesses can continue to increase demand fulfillment while effectively managing costs.
This article originally appeared on EBN Online.
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by Elizabeth Hines | Jun 14, 2017 | Blog, Current Events, Logistics, Strategy, Supply Chain, Transportation & Trucking
Startups and transportation juggernauts alike are entering the race toward the self-driving truck, but no two strategies look alike.
There will come a time in the not-so-distant future when — instead of using a CB radio to communicate with a freight driver — you will use a line of code. A recent study conducted by the White House concluded that at least 80% of trucking jobs will be lost to automated technology.
Companies such as Otto (Uber’s robot division), along with start-ups Starsky Robotics, Embark, and Drive.ai are championing the cause of self-driving trucks. These companies are hoping to capitalize on an industry that needs revitalization. With a shortage of about 75,000 jobs and a turnover rate that tops 90%, the current climate is ripe for change.
Self-driving doesn’t mean driverless
Trucking is a $700+ billion industry, with about a third of the costs going to driver compensation. It stands to reason that there is serious incentive to get this technology rolling out onto the highways, removing the need for drivers. However, so far, most plans don’t seem to involve going cold turkey.
Both Otto and Embark will have the automated system take over for the driver when the truck is up and running on the highway. Then once the truck exits, the driver returns to the controls. The benefit of this system is the ease of which the automated driver can navigate highways, as opposed to local roads. Additionally, this system will put less stress on the driver, who can rest while the truck is on the highway.
Starsky Robotics, while not looking to do away with drivers, wants to remove them from the trucks. Starsky’s trucks will be completely autonomous on the highway. Upon exiting, the job will be turned over to trained experts that remotely guide the trucks to their final destinations. Starsky believes by bringing the drivers off the road, and into offices, freights will run more efficiently and on time, while not putting undo stress onto drivers.
While the competition focuses on long-haul trucking, Drive.ai has begun testing automated freight services on around-town delivery vehicles, which it feels is an easier way to introduce its technology. The company says it is developing software to control trucks using a small computer that “learns” how to drive, rather than using complex computers programmed with every conceivable move the vehicle could make.
Bumps in the road
While testing is underway for many of these technologies, not every course has proved smooth sailing. Most notably, Waymo, Google’s self-driving car project, has filed a lawsuit against Uber, accusing the company of using trade secrets taken by Anthony Levandowski, after he left Waymo to found Otto.
Currently, it’s unclear which company will emerge as the leader in the race to automated trucking. What is apparent, though, is there’s no putting the genie back in the bottle.
Automation technology is only becoming more prevalent. With the trucking industry in its current state, it’s only a matter of time before self-driving trucks become the norm.
This article originally appeared on EBN Online.
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