Abstract

Product Innovation by Focusing on Product Users

Looking back on Philips' transformations in recent years, the Vision of the Future project which concluded in 1997 was a key step. During this project, the Philips Design Center introduced scenario simulation to explore potential future social and technological trends and find new product and service opportunities. The project helped Philips transform itself from a vertically integrated comprehensive manufacturer to an innovative technology enterprise focused on product design and R&D. The key to the transformation's success was the usage behavior research which serves as the new starting point for product development. First usage behavior is identified and products are conceptualized, then a corresponding bundle of technology is selected, then a prototype is developed, then the prototype is sent to an experimental lab (such as HomeLab) for hands-on testing and design modifications. This results in a product that meets consumers' demands and preferences and is ready to be released onto the market. Because of the comprehensive preparations, products have a relatively high survival rate, and some products are even able to take the market lead and attract followers, the digital photo frame of Philips being one example. In the 1997 Vision of the Future project report, Philips had actually already predicted the potential market for digital image browsing and sharing devices. Because Philips was able to discover an evolving cultural trend - namely that family members living in different places will want new ways to stay in contact - it was able to predict new product and service demand. Clearly then, only products that meet human needs can win people's hearts and bring sales profits.

Ambient Intelligence to Be Guiding Factor in Digital Photo Frame Development

The ambient intelligence environment developed by Philips simulates an integrated digital product and home lifestyle environment with the aim of creating a living environment permeated by intelligent products worked seamlessly into the design. Digital technology is integrated into the environment in such a way that there are no learning barriers to be overcome. Using the ambient intelligence environment, Philips designed five digital photo frame products, or intelligent multimedia devices: Sepia, MediaBubble, Mobile Media Frame, Media Table, and PureMusic. These products feature the latest technology including Wi-Fi capabilities (802.11b WLAN), RFID tag recognition and tracking capabilities, and touchscreens. These technologies - Wi-Fi, RFID, touch panel, muti-touch panel - can be expected to be incorporated into in photo frame-like products in the future. As long as the usage environment continues to mature and the key electronics modules prices fall to practicable levels, then intelligent multimedia devices compliant with ambient intelligence will continue to appear on the market.

Appendix

Research Scope

This report analyzes research projects related to digital photo frames conducted by Philips, including the Vision of the Future project, the HomeLab project, and the Lifestyle Home project. The ten digital photo frame products of Philips currently on the market and their specifications are also examined.

Gloossary of Terms