Audioburst Search

Voice, IOT and Home Automation - Challenges to Consumer Adoption by Head of Product at PepsiCo


Welcome to the product. PODCAST brought to you by product school. The podcast where you get fresh insight from leaders atop tech companies and startups. I remember you can learn. Product Management in person at our fifteen campuses worldwide or study with US online visit products dot com to learn more or about our courses. You can also hang out with the leaders from these podcasts. At our hundreds of annual events and catch us at product cons. The world's largest is two PM conference that takes place every year across the United States and in London. Today we'd be talking about voice Audi and home automation but specifically the challenges too concerned option. Right I mean Iot home. Automation has been a really fun topic in the media as well as between the communities communities over the last few years but and we are seeing quite a lot of options in that space but what is the adoption challenges which we are seeing and right now. We are seeing a lot of that so little about me. What makes me qualified to talk about? So I Up there are two roles that I want to highlight two before my current role essay as a head approach for Pepsico. We are where we are focusing using your own not but more from the store formats right I was vp off for digital product for Mosca and in that role I. I did a lot of work with players. Google Amazon in Iot or related species right so start off with working with all those was three digital giants on apple pay Google android and we really got excited. Okay so now you can do. You can use your phone regenerative program. You can have a chip in your phone. That is used for payments. What can we do more with this chip right? So we We read a little bit crazy. We started putting putting chips everywhere right so we would put chips on on shirts scarves. Even we put chips on gloves that you wear white playing golf to the FBI events and it didn't see that kind of consumer option that we thought it would do so we next move on to the what is because we were using at this point of time because you have been using lot of messenger APPs right so he's messenger. One billion concerned funds. Were we had. What's a one billion plus consumers would why don't we enable digital payments experience over there so we start off with that and we saw at auction challenges with that right so where where we were creating voice bought that would allow that will sit on his messenger and all people do? Do you know commerce shakeout and we did see consumer adoption with Adolf from challenges with that removed. Then we said okay. Let's move to the WOM- automation environment. Image right two thousand. Six Two Thousand Fifteen Samson was coming up with their smart smart hub refrigerator. That would sit in your home. It would would have interfaced with which you can do multiple things so we built Massa groceries by mastercard on the bottom experience and it was really eye opening an experience around house. Experience are being used by consumers. What are the main news driving? And what are the options that we are using their and in the process also filed quite a lot of patents. I filed forty two plus patents and I think quite a significant of Denver related to Iot Steve Very bills and developments so to let David little bit deeper into the into the topic. So this dislike me give you a headache was like numbers so let me try to tell you the story behind behind the number so I'm not in home base devices I'm trying to draw down between. It and Humvees devices that you see over here to use shopping retail formats of nine hundred sixteen thousand nine hundred seventy s so when the US shopping retail format started becoming very popular in in us. Nine hundred sixty s and nineteen in seventy you'd have shopping malls like coming up in different parts of the country and realized they had something called I anchor. Tenants are anchor stores right. So the important part of the anchor stores are anchor. Tenants was to drive the consumer footfall all right and a lot of other stores that responsible for driving other formats of engagement but the accurate survey really important. And you'd would have discipliny caused those kind of stores where basically anchor stops at do sorts are really important that because they would drive majority of the consumer To The mall at a very speaks right in the IOT space devices have become so some news ITV's as devices have now become the corner or cornerstone for Ford. It infrastructure right and new surprises predominantly. been the Smart Speaker Acre setup right so I'll do quick polls just week you guys up but just joking I mean just to give it context off what are some of how does us some of this data that I've put on on the board translate into real life right. So how many of you guys have one or more smart Outsmart speaker in your home right so show of hands okay. Almost sixty seventy percent right which is very reflective of how many a households in the US have smartphone speakers twenty five percent of US households which is around approximately sixty six million households have smart speaker and they two hundred twenty smart speakers by Byron six over the last six months the stats is like six months old. So they have around hundred twenty million smart speakers spread across those sixty six million homes some homes as I said I have more than one smart speaker. Example is my boss Mike. He has a seven smart speakers seekers in his home even puts much bigger in his kids. Bathroom for probably waking them up but and that number is increasing every year. It's six forty now. Sixty one percent of the smart speakers in the US environment are from Alexa Environment. And then twenty four percent is from Google Google Environment. The other than we do is how many of you guys use your smart homes speaker occur to interact with your device right and it could be a smart TV or or or smart plug are smart bright. So how many of you guys okay. So roughly around twenty five percent or something like that to you so here number sees a little bit different fifty five percent of a US households basically using their smart total speakers are to interact with the smartphone devices. Right so so you have smart TV. Smart Lights are all of them are now being. I used your smartphone do speakers so as to smart because becoming anchor at the second anchor her ankles set up in this particular environment. Is your phone right so majority of the smart devices would have a companion APP that you you would interact with previously ninety percent. Ninety five percent of the people used to use those those smart abstract with their With the smart devices now that is now being shifting as shoes do despite bigger environment right the other important factors actors of the system. Is that there are you can break out. Ecosystems into different parts and it's very important to do that because because I would ecosystem is. It's a pretty broad ward of and if you don't get up into different parts is very difficult to figure out what pros cons. What is this date of maturity and how do you look at from the consumer landscape to each of these parts right so the first part art is of course the form factor in what format our diet devices being being built and set up someone to formats so much more common right? We talked about it. Smarter as as a format is very common. Smart Boards Smart Lights a lot of these days a lot of new devices. Ultra coming up where they have i-it-it's connectivity and sensors which are unique to hire devices like back washing machine we talked about refrigerators to Dr Right and example of devices which have started adopting to it crease? Interestingly for other things which typically we didn't think aww that would have sensors are started to leverage the IOT systems an example of that is there we are now sensors. They're now being sensors being put into air filters that you have in your air conditioner right. So typically air conditioner would have air filters people won't worry about it for a long period of time till their condition breaks down and someone comes replace it so the the people who are building conditions realize that you know people need to change those air filters and we can't get them to change it by sending sending them and manual to let Bill Smart Sensor and put it in those air filters and we would get people notifications when it's time to change change. Their filters through the form factors are becoming very interesting right so multiple different Multiple different devices or use cases cases where you are putting in different kinds of sensors and sensors are being used for multiple different use cases. You can use sensors to look at wait like I running through your products or components you can use sensors to count. You can use sensors to basically measure artificially the usage usage of the product and the air filter is a good example of that. And if you look at the next slide look at it look at all those sensors ecosystems part of by the consumer and often landscape. But let's talk a little bit about maturity while we are on this slide right it so if I if I look at maturity I think foreign factors are at the stage where it is decently mature multiple use cases. That we are seeking. ENFOR are already there. Are Your your smart home. The kind of images recognitions and tread deductions that is able to lead go home. It's quite mature and I think it's it's pretty useful. Some areas like the air filter talked about may not be as mature because a a real life example. I know a person who installed the smart basically the smart air filter in his house and suddenly he he got a box full of Cardi filters because it apperently every day the air filter todd that it has run out and offered in new filter so suddenly he comes home and he's he's a large box of filters and he went really mad. I stopped using using your filter after that. But but I didn't. That didn't that story. I think the maturity of the factors. It's there it's it's pretty much there. Let's talk about the signals and processing so you get to you. Get the sensors of sending different signals to multiple couple different multiple different. Tom Louis so one terminal is basically. You're competent that we connect with right right. So typically you will connect over Bluetooth or wireless and it will. It would be an APP. Ingesting signals and interpreting the signals and and working with a core back component to send it the others. Competence can also be hubs right that are using getting the signals instead interpreting the signals. This is an area which is going through quite a lot of development as as I told you as S. mentioned in the story right that my manager getting or like or this person getting thirty of supplies of air filter in one go it was because the signal was interpreted in wrong manner right so so do it is basically mature but they're still developments required in this particular space up. The area is the EPA backend ecosystem and good too deep into that because this area is concerned in development and consumer research. Don't see the impact of it in in the actual live in in that format the sensors and how they're being represented interpreted needed. That is something which is much more closer to their experience. The Ford is very important because the ecosystem now why they system piece is important is because they ecosystems systems typically don't talk to each other so therefore prevalent ecosystem said we are seeing coming to the park. So you have. Google Apple Samson and Amazon Thomason majority of the ecosystems are confined to the IOT use case Amazon as an example is different because it's extending beyond that is not use keys. So what do I mean by that. So with Amazon it's trying to it's basically looking at it again from the broader perspective and seeing that okay which are areas that I can impact through. One area is my anchor device. Right which is the Alexa right. So I I would promote Alex. I would invest in Alexa. We would build a lot of Petrovic Alexa and interact with multiple different iot not device and make Alexa a core component of the anchor component of the Iot smartphone. Right so that's one strategy. The second strategy is what do we do beyond Iot right. So Amazon started looking. And I'm talking so I skipped one stage due to an arm trying to connect the ecosystems and Dexter Dexter system so I saw the second stage of Amazon investment is on the system which is the DRS which is directly punishment system so Amazon is building the Dr Capability of which just a next version of the dash button through which is going to connect the it basically systems with auto replenishment a lot of other use cases. So some simple use cases are if you if you have a coffee maker which is out right you have it sitting in your In your in your home you have multiple different pods now. The coffee maker is able to identify. How many parts remaining or when are you reaching a stage when you're going to run out of coffee and how to function in life if you run out of coffee so the connection that Abbas I was in is making is that that coffee system is sending the signals so this is a form factor it is sending the signals to the signal processing which is going to the EBBA back end that? Api Back in connects with Amazon Diarra system and is able to connect the Amazon chopping experience to diety experience now. Such kind of external ecosystem is extremely critical for driving adoption of the not. Because that really makes the IOT APPS and ecosystems much more useful the question is is doing that right. So we'll talk about voted in the next slide and wondered I've skipped is the combatant APP as I was seeing majority of the people. Switch off the the flip between using this smartphone as well as their APPs or smart Sorta smartphone spot speaker while interacting the thing with. They're not and smart home apps right so competitive APP still very important to question is. Is there a single anchor. I anchor APP that has been a built in order to drive of consumers to to that ecosystem. So that's one question. Same question is what kind of challenges colonist to we see when we're talking about a companion APP right up to that brings me to the next slide. I'm sorry I don't know why the a lettuce are in yellow. But I should have checked sorry but in this live we talk about what option challenges that we see within dietetic assistance across each of the each of the components right so talking about the first components form factors so other major challenges that we see is digital right. How many times do you want to bring up your phone? Because you've got an education that and your cat got up and it was recognized by a Google right. So and how many times do you get some notifications affiliations on bird coming to your to your door outside right to to all the signals and advocates creating and digital fag. The second is because US consumers have started installing devices at their home. Somehow they're getting to a stage where they don't want to interact with our devices because they feel it's not meaningful enough right so that's one of the challenges for a lot of Dive to device manufacturers because they missed a lot of money and time and resources in getting people able to install their up and to last count. Typically they're ninety nine two hundred kind of APPs in everyone's house so in everyone smartphone. And a you on average US nine to ten two. It's becoming very difficult if if if they come up is the re to interact with the consumer because it was arguing digitally Italy fatigue. So that's that's important. Use Case and the second important use case we talked about was signals and centers and we talked about that. It's an ongoing development there we we don't see the signals and processing as a barrier as such. It could be better but in itself. I'd see data's a major challenge to consumer adoption the third part is right the EPA and and Claude. He's back in. What do you do with do signals? What you do without information's right because Zuma's are being scared saying that there is going to be shared with other people without their are we? There are constant right and we have seen examples of that in in various use cases and various stories that onto the Amazon's Alexa is being shared with data being seen by a team. Some people's wishes being shared with their friends so this is differently. Major area of challenge for diabetes ecosystem. Da Other pieces that we talked about against ecosystem it's disconnected ecosystem. Amazon doesn't Talk Amazon products and talk in that sense to Google limited guarantee between between apple and android ecosystem. So sorry again. Challenge that we see without convergence. It's become very difficult to create inter connectivity between the different players companion adding we spend a little bit of time around that so there is one nuclear component. There is no anchor companion APP out there in the market which can drive people towards towards Syria and the forty India is in the extended ecosystem. It is still being developed right so the IRS is an example of that Amazon is heavily invested. In Your Dior's I'm sure sure. Walmart and Kroger. A lot of other retailers will start investing in the areas outside of the retail environment. What are the other extended ecosystems that you seek into the auty the examples are very literate? Now I mean I can't think about any single major. A major media investment being made a richest truly extending inning diet ecosystem beyond just just basically the the use cases that bill for so with this. Let's do a little bit of Doc Gates to be on one of the platforms right to and so the platform that took up is the Samsung smart-t hub refrigerator. The reason that I did it. It's because one. I have done a lot of work on on this particular platform so I have some decent amount of knowledge and I'm sorry if anyone's from Samsung is here because I'm going to be a little bit critic Platform so first. Let's talk about about the same thing. What is the Samsung smart-t hub? Refrigerators Hamptons Marta. Refrigerators started in two thousand fifteen. I launch in Korea Down in us it was really unique and we were really excited about it right. So the exciting part about this This platform I told him that. This is the first time we're an anchor device to again at home. There are specific anchor devices right so your refrigerator your TV. Those are basically anchor devices that you have a home quite a lot of work on on those places so as an anchor device it became the first devices be on TV to have smart competent. It was Wifi Wifi. You could do a lot of interactions with a future without using companion APP right so you don't have to download this Martin. You could download this part from companion APP. But you don't have to do that. You could basically used interface that you see. The interface was exciting right. So you could use the interface that you you see and you could interact with a with a refrigerator. There were multiple different use cases which are being booed built in the price was hide. Was Six thousand five hundred dollars starting starting to up to twenty thousand dollars for a refrigerator but It would come down to right now. I think two thousand five hundred three thousand throw you might be less than fifteen hundred so economic viability was also also. They're right so be started building solutions and we found there are six. Six use cases are sick. Major pain points that we had the first pinpoint was bishop fatty right. So lot of use cases that we were trying to build on a smarter jeter's where already replicated in multiple different form factors right so we were seeing it okay. We put a picture. Free Associating Association decided to put a picture frame which would be slide show picture frame which would be which was a duplicate of other digital picture frames as well the voices of victory so they decided to put in other. Ucla you could see your recipes. You would see the temperature of the and all that again replication negation of other things which are already present in your smartphone so that billion decent amount of detail fatigue right so which was which was which was their second was There were no killer APP. which is related to dislocated fatigue? Right so there were new killer APP and people were seeing basically the same information that they would see other form on factors and decided that okay. This is not something that is very interesting for me. The developers right which were as rich could have bill multiple different use cases on the sand. SMART Home Refrigerator. It was difficult because you had to work on the Tyson system which was a extension of off android operating system built by Samson. And let me tell you. It was difficult even with really skilled andrew developers right so they're operating system because decided to build their own set of unique opportune systems made it difficult for android standard android developer to build really killer APPs on the platform. The Ford is sensors right. So so with a smarter frigerator you would hope that you title. If you put a bottle of milk the refugees should be able to tell you then is the expiry date right or if you have an apple in the refrigerator should let you know that okay. There is an apple actually refrigerator. It can send you specific recipes for data so Sampson was trying to get into those use cases so so something building like six cameras inside the refrigerator but the pinpointed insult for is that filter in user household. Is this really chaotic. You won't have a single carton of milk or an apple you would have thousands of things so even though there are six cameras the signal processing piece was able to enter into signals right because died was not working as intelligently as it should have right so those are artistically the challenges that we saw that led to the consumer adoption so we ourselves when I was massacred be built the the groceries were master. God would allow you to the shop on the refrigerator. We taught that it's very important to connect to an external ecosystem so that extended ecosystem was us SHOPRITE and frustrate. So the idea was that you'd be able to add items on the shopping cart right where you are in the in the refrigerator and then you can now check out with other shopper. Shoprite of direct. We were connecting with their inventory. You can even schedule your your your drops right but again because the user was not getting any kind of any form of intelligence signals it was another form of a shopping APP that we had to go through a lot of challenges in in order to drive dead options so and so it combination of all those six factors made it very difficult in our to solve for the Samson refrigerator and we became very difficult for for us to drive adoption of of the Moscow. Buy Groceries so so I want to pause wants here and say that in recap right so the challenge that we talked about the six challenges for the six different factors that we talked about are prevalent in quite a lot of different ecosystems. Now which is the most important ones to solve for right for this use case we we felt that it is basically the sensor systems. which is the most important sought for because the primary purpose primary use case of the refrigerator is that of a smarter visitors that it should be able to identify? What is there in the refrigerator? And if it's not able to do that then it's not something that would be very interesting or useful for consumers so so. I hope you guys found the session little bit interesting. Feel free to reach out very passionate about Iot these these days I tend to invest like four or five percent of my time in the space but in general I'm extremely excited about the space and and the potential for the space thank you I really appreciate inviting me over. Thanks a lot. Thank you for listening to the product. podcast if you like this episode. Don't forget to leave a review on itunes for more product insights head over to product school dot Com.

Coming up next