The commercialization problem
Ember was commercializing mesh-networking technology developed from MIT research.
The company had proprietary algorithms, development boards, and firmware
capabilities. Those were real technical assets. But they were not, by
themselves, a complete customer solution.
A customer did not buy mesh networking because it was technically elegant.
They needed a way to connect devices, collect information, move that
information through a network, and use it to support an operational decision
or outcome.
The business question was therefore larger than how to sell Ember's
technology.
Looking at the complete customer outcome
I started by mapping the full set of capabilities required to create value for
the customer:
Sensors → Radio Hardware → Mesh Networking → Data Collection → Applications → Operational Decisions → Business Value
Ember owned an important part of that chain. It did not own all of it.
That distinction mattered because the company could easily have interpreted
every missing capability as something it needed to build itself. But Ember was
not an RF semiconductor company, an applications company, or a complete
systems integrator.
The question was not whether Ember could expand into each of those roles. The
question was where the company could create the most value and what had to be
true around it for the overall solution to work.
Defining the role Ember should play
Once the value chain was visible, the commercialization strategy changed.
Ember's strongest contribution was its networking capability. But that
capability needed compatible, low-cost, low-power radio technology in order to
become part of a credible embedded-wireless solution.
I identified Chipcon, a Norwegian RF company, as a potential strategic partner
because its radio expertise complemented Ember's networking technology. I
initiated and advanced discussions with the company, including travel to Norway,
and helped shape the relationship that was publicly announced in 2003.
The Chipcon relationship was important, but it was not the story by itself.
It was a consequence of understanding the role Ember needed to play in the
larger solution.
From product strategy to ecosystem strategy
The work helped move Ember away from a narrow view of commercialization based
on development boards and algorithms alone.
The company could focus on the layer where it had distinctive capability while
working with partners that brought the complementary technologies required for
market adoption.
That created a more credible path toward products, partnerships, and the
emerging ZigBee ecosystem.
What this story shows
Technology does not create value simply because it is technically strong.
A company has to understand the complete outcome a customer needs, the role it
can realistically play in creating that outcome, and the capabilities that must
come together around it.
In this case, the most important decision was not which partner to pursue. It
was recognizing that Ember needed an ecosystem strategy before it could have a
credible commercialization strategy.