Winning the Hardware Software Game Winning the Hardware-Software Game - 2nd Edition

Using Game Theory to Optimize the Pace of New Technology Adoption
  • How do you encourage speedier adoption of your product or service?
  • How do you increase the value your product or service creates for your customers?
  • How do you extract more of the value created by your product or service for yourself?

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technology

  • Electric scooters (“e-scooters”) are one of the latest hot new tech toys on the scene. Several start-ups have unloaded thousands of rentable e-scooters onto the streets of major cities in the US. The scooters offer users a cheap and convenient way to travel short distances across town. These scooters are dockless: users leave them on the anywhere on the street -- no need to find a docking station at a predetermined location. Quite the convenience for users. But quite the hazard and eyesore for local residents, who are finding scooters indiscriminately strewn about the sidewalks.

    I started to map out the Electric Scooter Game. That involves identifying the players who interact with e-scooter users. However, as I started identifying the players, the game quickly expanded from e-scooters on sidewalks or in bike lanes to all users of roadways.

    I realized that two trends have quickly engulfed our cities. First, capitalism has provided ever more modes of transportation – types of vehicles – to move us from one place to another. And second, city and suburban roadways have become much more congested. Together, these two trends are creating a fantastic game between people using different modes of transportation to get to where they want to go, as quickly, conveniently, and cheaply as possible.

    This analysis will first review the electric scooter market – who the major companies are, how electric scooter rentals work, and regulatory actions that have recently been taken by cities against scooter companies.

    The analysis will then move on to examine the broader Public Roadways Game. This game examines the dynamics among all the different users of public roadways, together with other interest groups whose actions affect the use of public roadways.

  • Smartphone manufacturers, such as Apple and Samsung, have thrived for the past fifteen years using a specific business model that involves

    (i) Swiftly releasing next generation products that contain significant advancements over previous generations of products, and

    (ii) Selling next generation technologies at a premium.

    However, more recently, sales of used and refurbished older-generation-technology products have cut into sales of latest-generation-technology products. This analysis examines the game between sellers of new products and sellers of used and refurbished products.

     

    Figure 1

    used tech game

  • Key Concepts

    Before we can understand the issues related to 360°, 3D, AR and VR technologies, we have to understand some key concepts.

    Immersion and Presence

    The goal of 360°, 3D, AR and VR technologies is to immerse users in an environment, so that they feel they have been “teleported” to this new locale and are actually present in this new world. Achieving immersion and presence requires that the brain be fooled by the senses into believing it is somewhere that it really is not.

    Here are descriptions of immersion and presence by some other sources:

    Reality Technologies:

    Total immersion means that the sensory experience feels so real, that we forget it is a virtual-artificial environment and begin to interact with it as we would naturally in the real world.



    Virtual reality immersion is the perception of being physically present in a non-physical world. It encompasses the sense of presence, which is the point where the human brain believes that is somewhere it is really not, and is accomplished through purely mental and/or physical means. The state of total immersion exists when enough senses are activated to create the perception of being present in a non-physical world.



    a sense of immersion (i.e. convincing the human brain to accept an artificial environment as real).

    iQ by Intel:

    … presence: “The unmistakable feeling that you’ve been teleported somewhere new.

    VR Lens Lab

    … presence. That is, the ability to take you somewhere other than where you really are, and trick your mind into believing it.

    Jonathan Strickland at How Stuff Works

    In a virtual reality environment, a user experiences immersion, or the feeling of being inside and a part of that world.