\section{Do the right things; The Dynamic Market}
\label{sec:LWAdynamicMarket}

Philips Semiconductors (PS) plays a part in a longer value chain as depicted
in figure~\ref{fig:LWAvalueChain}. Typical the components of PS, such as
single chip TV's, are used by system integrators, which build CE appliances,
such as televisions. These appliances can be distributed via retail channels
or via service providers to end consumers.

\FigureImposeWidth{LWAvalueChain}{Value chain}{.7\textwidth}

One of the major trends in this industry is the magic buzzword {\it convergence}.
Three more or less independent worlds of {\it computers}, {\it consumer electronics} and
{\it telecom} are merging, see figure~\ref{fig:LWAconvergence};
functions from one domain can also be done in the other domain.

\FigureImposeWidth{LWAconvergence}{Convergence}{.4\textwidth}

The name convergence and the visualisation in figure~\ref{fig:LWAconvergence}
suggest a more uniform set of products, a simplification. However the opposite is
happening. The convergence enables integration of functions, which were separate sofar
for technical reasons. The technical capabilities have increased to a level, that
required functionality, performance, form factor and environment together determine
the products to be made. Figure~\ref{fig:LWAintegrationAndDiversity} shows
at the left hand side many of today's appliances, in the middle many form factors
are shown and the right hand side shows some environments.

\FigureImposeWidth{LWAintegrationAndDiversity}{Integration and Diversity}{.8\textwidth}

Note that making all kind of combination products, with many different form factors for
different environments and different price performance points creates a very large
diversity of products!
\clearpage

\FigureImposeWidth{LWAdotcom}{Uncertainty (Dot.Com effect)}{.5\textwidth}

Another market factor to take into account is the uncertainty of all players
in the value chain. One of the symptoms of this uncertainty is the strong
fluctuation of the stock prices, see figure~\ref{fig:LWAdotcom}.

\FigureImposeWidth{LWAmooresLawRvO}{Moore's law}{.7\textwidth}

An historical trend is that the amount of software is increasing proportional
with Moore's law, see figure~\ref{fig:LWAmooresLawRvO}.
\clearpage

\FigureImposeWidth{LWAproblemSpaceBusiness}{System Integrator Problem Space - Business}{.7\textwidth}

From business point of view the products and/or markets of the system integrators can be characterized
by {\it time to market}, {\it volume}, {\it effort to create}.
In these 3 dimensions a huge dynamic range need to be covered.
Infrastructure (for instance the last mile to the home) takes a large amount of time to change, due
to economical constraints, while new applications and functions need to be introduced quickly
(to follow the fashion or to respond to a new killer application from the competitor).
The volume is preferably large from manufacturing point of view (economy of scale), while
the consumer wants to personalize, to express his identity or community (which means small scale).
As mentioned before the effort to create is increasing exponentially, which means that the effort
is changing order of magnitudes over decades.
Figure~\ref{fig:LWAproblemSpaceTechnology} summarizes these characteristics.

\FigureImposeWidth{LWAproblemSpaceTechnology}
{System Integrator Problem Space - Technology}{.7\textwidth}

Main technology concerns of the system integrators are
{\it performance}, {\it power} and {\it storage}.
Again a huge dynamic range need to be covered in these dimensions.
Video based applications have much higher processing demands than GSM speech audio.
While for power portable appliances like a GSM have severe constraints
and should use orders of magnitude less power than TV's or set top boxes.
The amount of storage is again highly function dependent, for instance a home server which
must be able to store many hours of video needs a huge amount of storage, while
the address book of a GSM phone is very limited in its storage needs.
The technology parameters and dynamic range are visualized in figure~\ref{fig:LWAproblemSpaceTechnology}.

\FigureImposeWidth{LWAsystemProfile}{System profile}{.7\textwidth}

Combining the figures in one picture enables the visualization of a system profile.
Figure~\ref{fig:LWAsystemProfile} shows the profiles for a digital TV and for a GSM cell phone.
The profile is not extended to the time to market measure, because several different
time constants play a role for both GSM phones and televisions. 
The device itself, the applications running on the devices, the services offered on device plus infrastructure,
and the infrastructure itself all have different time constants.

\clearpage

\FigureImposeWidth{LWAsolutionSpaceTechnology}{PS Technology solutions}{.7\textwidth}

The Philips product division Semiconductors has many hardware and software solutions available in
IP-blocks. For a single problem many solutions are available. These solutions differ in
their characteristics, such as {\it performance}, {\it power} and {\it storage}.
The choice of the solution is driven by the specific product requirements.
Figure~\ref{fig:LWAsolutionSpaceTechnology} shows a subset of the available solutions and
shows for 3 specific solutions their performance and power characterization.

\FigureImposeWidth{LWAsystemTechnologyMap}{Partial Solution: Configurable Component Platform}
{.7\textwidth}

The convergence problem (diversity and integration) can be tackled by a platform approach,
where all the solutions must be available to be combined in one integrated solution.
Figure~\ref{fig:LWAsystemTechnologyMap} shows how appliances could be composed from available solutions.

\FigureImposeWidth{LWAfromStakeholderToQualities}
{Exploring problem space and solution ingredients}{.8\textwidth}

Figure~\ref{fig:LWAfromStakeholderToQualities} summarizes the exploration of the problem and solution space.
The uncertainty and diversity is addressed by
{\it programmability, flexibility}, {\it composable architecture}, {\it product family approach} and
{\it configurability}. The increased effort is addressed by {\it shifting development effort to suppliers}.
The dynamic range of requirements is addressed by supplying the right solutions at different
{\it competitive performance/cost/power} points.

\FigureImposeWidth{LWAbapoFramework}{More than Architecture}{.4\textwidth}

This presentation focuses on architecture. Being good in architecting is not
sufficient to be successfull in the market. Addressing the Business, Process and Organization (People) issues
also is essential for success, see figure~\ref{fig:LWAbapoFramework}

\FigureImposeWidth{LWAconclusionsPart1}{Conclusions Part 1A}{.7\textwidth}

Figure~\ref{fig:LWAconclusionsPart1} summarizes the conclusions of the first part of the article.
