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      <title-group>
        <article-title>Smart Ski Goggles - Development and Business Model Generation of Smart Glasses Applications</article-title>
      </title-group>
      <contrib-group>
        <contrib contrib-type="author">
          <string-name>Gerald Binder evolaris next level GmbH Graz</string-name>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Austria gerald.binder@evolaris.net</string-name>
        </contrib>
      </contrib-group>
      <pub-date>
        <year>2015</year>
      </pub-date>
      <abstract>
        <p>The research project Smart Ski Goggles investigated how to enhance visitor experience while skiing on a mountain by delivering real-time information and a navigation system using state-of-the-art data ski goggles (Oakley Airwave). Information about lifts, slopes, weather, hospitality, social media and even navigation (e.g. to huts and lifts) were integrated into a single application allowing users to explore the region according to their interests. Additionally, as the software was developed for a fairly new kind of device with no established app distribution channel, business model scenarios were generated to explore possibilities how to reach marketability for the software together with the data ski goggles. A co-creation approach was used to develop a tailor-made solution right from the end users' needs and requirements.</p>
      </abstract>
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      <p>
        INTRODUCTION
One main goal of the project was to investigate an emerging
technological solution (smart glasses) with bringing in the
user at an experimental stage of a possibly upcoming
commercial solution. Another more general goal was to
understand the practical usage potential of real-time
information displayed in smart glasses and find solutions
for technical challenges in a real-world setting.
Additionally, for the generation of business model scenarios
it was crucial to analyze the stakeholder needs in the ski
resort of Schladming/Austria, which was our venue partner
in this project. The project took place between October
2013 and May 2014 in the context of EXPERIMEDIA [
        <xref ref-type="bibr" rid="ref6">6</xref>
        ],
a research project providing a technological framework as
well as venues to perform real-world experiments in the
field of Future Internet.
      </p>
      <p>We provide information focused on the three major parts of
the project. First, we describe our methodological approach
based on co-creation to develop a system displaying
realtime information in ski goggles equipped with a
microdisplay, see Figure 1. We will discuss the results and
explain why we think this approach was suitable for such
kind of service. Second, we explain the implementation and
discuss technical challenges of Smart Ski Goggles and the
integration of external services. All below described
features were really implemented and are no mockups.
Third, we provide information about possible business
model scenarios for Smart Ski Goggles.</p>
      <p>
        METHODOLOGY
A four step co-creation approach was being applied to
integrate as many as possible potential end users into the
conception, implementation and evaluation of this project.
Co-creation [
        <xref ref-type="bibr" rid="ref3">3</xref>
        ] is based on the principle that the context of
the future use of an artefact (e.g. software) is crucial for its
success and can best be understood, if people out of the
target group are participating in the artefact development.
Thus, the goal was to maximize the impact of the proposed
technical solutions by continuously involving them in the
development process.
All four steps were tightly linked together to gain a
maximum of valid insights. In the first step two focus
groups were conducted to discuss user requirements, screen
designs and interaction concepts. This was the basis for the
conception of the Smart Ski Goggles software and the
following second co-creation step, a representative online
survey. Each of the focus groups consisted of seven
participants and lasted for around 120 minutes. All
participants were between 19 and 49 years old and were
skiing on a regular basis.
      </p>
      <p>Step 2, the online survey should basically answer the
questions: ‘Which features would you use and when?’ and
‘How much are you willing to pay to rent or buy a smart ski
goggle?’ This second step examined the user requirements
on a representative level and served as a basis for a detailed
target group specification for the following two field tests.
We used computer assisted web interviews with a
representative (for Austria) sample of 1005 participants.
The target sample (people who use smartphones, have
downloaded apps and were skiing at least once in the last
two years) was 382 people.</p>
      <p>
        In the third co-creation step the focus was set on usability
aspects and it was conducted as a field test. These test runs
were also used to evaluate whether the implemented
features were considered to be as useful as the results of the
focus groups and the online survey suggested. The test runs
were conducted in Schladming on two days with in total 15
participants. We used the thinking aloud method [
        <xref ref-type="bibr" rid="ref1">1</xref>
        ]
combined with observation and interviews. The total
duration of the test for one participant was around three
hours. At the beginning of the test the participants were
briefed about the system setup und provided features.
Finally, the fourth co-creation step was focused on user
experience (UX) aspects. To get feedback from as many
participants as possible we used self-administered digital
questionnaires before and after the test run. So the
participants had to fill out the questionnaires, from which
we could analyze quantitative data. Additionally, short
interviews with all participants and one focus group (n=5)
were conducted to get more qualitative data. This second
field test was conducted in Schladming on five consecutive
days in which 54 participants tested the software during a
timeframe of two to five hours. To learn more about usage
patterns we also logged all user activity.
      </p>
      <p>MAIN FEATURES
The lift waiting time feature was implemented as a list,
sorted in a way that the closest lift is on the top position.
The lift waiting time is indicated by colored icons (green =
no waiting time, yellow = short waiting time, orange = long
waiting time), see Figure 2.
The navigation feature allowed the users to select a starting
point as well as a target point for the navigation, e.g. from a
specific lift exit to another specific lift entrance. The
resulting route is presented as a list of routing points to be
passed, see Figure 3. Additionally, if the user approaches an
important point on the slope a photograph with a
superimposed arrow will automatically appear to indicate
the correct direction, see Figure 4. Actually, the picture
consisting of photograph and arrow is pre-produced. In a
future version, the arrow could be superimposed on a live
video stream (given a future ski goggle would have a
camera integrated).
With the notification feature the service operator has got the
possibility to push messages into the application and inform
skiers in real-time about important information, e.g.
announcing an event or providing a weather warning. One
of the most surprising and interesting features derived from
the initial focus groups was that above the users speed of 20
kph the screen shows only the speed, time and a notification
icon (the latter only if a new notification has arrived). This
is to not distract the user while skiing. If a navigation is
active only the information for the next route segment is
being displayed instead of the speed.
IMPLEMENTATION
The Smart Ski Goggles system consists of three
components, see Figure 5. First, the data ski goggle (Oakley
Airwave) is defined as the frontend. It is used to display
real-time information, which is gathered from the integrated
GPS antenna and from the attached smartphone.</p>
      <p>
        The application running on the data ski goggle is referred to
as the client app. The Bluetooth-connected smartphone runs
the Smart Ski Goggles gateway app. The gateway app is
responsible to exchange data between the client application
and the third component of the system, the backend server,
via a mobile network (e.g. 3G). It uses a custom developed
message protocol to request information and receive the
related responses as well as a network data caching system
in order to counteract mobile network outages or network
reception drops. The development of a custom message
protocol was necessary to have more flexibility in the way
data is exchanged between client and gateway app. In
addition, the gateway app implements a prefetching
mechanism so that often used data such as lift waiting time
indication, and weather service are available in advance.
Using the technological framework of EXPERIMEDIA the
Smart Ski Goggles backend processes information from a
number of different external data sources such as weather
service, resort information service and navigation
information provider. In addition, it receives lift utilization
statistics from a video analysis component (‘AVCC’ in
Figure 5). These statistics are analyzed and used to provide
the lift waiting time indication to the user. Furthermore, the
backend also receives turnstile usage information from each
lift which is also used for the same reason (not all lifts
could be equipped with a video camera) and as backup in
case the video analysis is not working, e.g. due to bad
weather. Finally, the backend server has got a web frontend
which can be used for pushing notifications to the client.
The integration of the experiment control &amp; monitoring
component (ECC) was meant to provide and analyze
Quality of Service (QoS) live data in connection with
Quality of Experience (QoE) data from the field test as
described in [
        <xref ref-type="bibr" rid="ref5">5</xref>
        ]. Due to technical problems based on the
simultaneous connection of up to ten participants this
approach could not be realized during the field test.
BUSINESS MODEL GENERATION
The basis of our approach is to use the Effectuation method
[
        <xref ref-type="bibr" rid="ref2">2</xref>
        ] combined with the business model canvas of
Osterwalder/Pigneur [
        <xref ref-type="bibr" rid="ref4">4</xref>
        ]. This is based on the fact, that
there are many uncertainties with new technology like data
ski goggles, as e.g. the broader technology acceptance of
smart glasses at all is not very well researched so far. Here,
a business model in general describes which key resources
are necessary to produce a certain value proposition (i.e. the
product or service). Furthermore, it describes via which
channels this product or service is being offered and
distributed to the customer. Finally, it opposes financial
costs to expected turnover. For Smart Ski Goggles it was
necessary to elaborate different alternative business model
scenarios, because there is no substantial market in place so
far for data ski goggles. So, it is even more of importance to
evaluate different scenarios.
      </p>
      <p>The scenarios we were working on (see Figure 6 for an
example) provide alternative approaches from users buying
the data ski goggles with the Smart Ski Goggles software
pre-installed to the ski resort operators renting the data ski
goggles with Smart Ski Goggles software on it to skiers. To
work out these scenarios basic data was necessary. This was
collected via the online survey (second co-creation step),
from which we e.g. learned how much people were willing
to pay as a rental fee, in average roughly eleven Euro. For
the same purpose we conducted a series of interviews with
typical stakeholders of a service like Smart Ski Goggles,
e.g. ski resort operators. Thus, we gained insights into the
needs and opinions of important partners in the value chain.
For a later exploitation this understanding is crucial. We
also did a global online research to find out whether
services like Smart Ski Goggles are available somewhere
and how the business model there would work.
In general there are two distinct approaches in distributing
the Smart Ski Goggles software and the necessary data ski
goggles. The customers can buy the ski goggles or they can
rent them. For the buying option we learned that 69.4 % of
the participants in the online survey are basically willing to
buy a data ski goggle. On the other hand, the average price
these people were willing to pay was between 114 Euro
(people who thought the goggle must not cost more than a
regular ski goggle) and 161 Euro (people who thought the
goggle can cost more than a regular ski goggle). In any
case, these price expectations are much lower than the
current price of the Oakley Airwave (roughly 650 Euro).
With higher volumes and less brand-intensive goggle
manufacturers the price is supposed to go down. But it is
not likely that it falls below 200 Euro in the coming years.
So, for the buying scenarios it has to be kept in mind that
only a very small target group can be reached.</p>
      <p>To discuss the elaborated business model scenarios with
experts a business model workshop was conducted with
participants from different stakeholders in Schladming. The
scenarios were evaluated against feasibility and necessary
pre-conditions to implement them in real-life. A crucial
discussion point was that the cost to further develop and test
the current prototype of Smart Ski Goggles to get it to
marketability has to kept low, otherwise the ski resort
wouldn't invest in a service with such a small volume of
users. For all elaborated business model scenarios it has to
be taken into account that probably none of these will lead
to huge turnovers in the first years as the market is not that
developed yet. But, apart from the turnover potential also
the marketing potential has to be considered. Smart Ski
Goggles is definitely a unique experience for guests and a
ski resort can differentiate itself from competitors through
destination-specific information and services like e.g. real
turn-by-turn navigation.</p>
      <p>RESULTS
In the online survey we asked potential users which feature
would be interesting during skiing (category A) or in a
break (category B), as well as, whether a feature was not
interesting at all (category C), multiple answers were
allowed per category. It confirmed our expectation that
warnings (61.5 %), weather (56.8 %), navigation (50.5 %)
and lift waiting time (47.9 %) are top requested features in
categories A and B. Additionally, it clearly showed that
presenting the users pulse on the screen (an idea of the early
concept phase) is of comparably low interest (52.9 %
qualified this feature as ‘not interesting’). Showing text
messages and e-mail (60.2 %) and other social media
contents (61.8 %) were also rated as not interesting.
Testing the accuracy of the lift waiting time indication was
difficult, as not so many people were on the slopes during
the test runs. This has to be taken into consideration when
analyzing the very positive value of the participants instant
feedback for the lift waiting time. 214 of 238 feedbacks (90
%) confirmed a correct waiting time.</p>
      <p>As the test participants had to fulfill two navigation tasks
during the field tests we got a lot of feedback about this
feature. To fulfill the navigation tasks the participants had
to go to a specific start point and select the target of the
navigation. After that the route was calculated and
displayed on the screen as a list of route elements. The
participants missed functionality like the usage of a
completely free starting point (due to technical reasons not
possible during the project lifetime) and the recalculation of
the route in case someone moves into a wrong direction.
After interviewing the participants we assume that such
expectations arise from the fact, that many people are
already very much used to the navigation features of cars
and smartphones. The qualitative feedback of the
participants showed that it was not clear to them that a
slope is by far not as structured as streets and that the
movement on a slope is very different to that on a street. A
navigation functionality which was evaluated as very
positive was the automatic display of a photograph with a
superimposed arrow to indicate the direction at an
important point on the slope, see Figure 4. In average each
participant of the second field test started five navigations,
so the participants not only tried to fulfill the navigation
tasks but also used the navigation with their own start and
target points. For 75 % of these navigations the route could
be loaded. This means, that in one of four cases the mobile
network connection was not available. The usefulness of
the navigation feature was rated with a mean of 3.2 (n=54,
1 very useful, 5 not useful at all). These values underline
the need for improvement if this feature should be further
developed.</p>
      <p>The sent notifications (by the ski resort operator) were
considered to be useful and not too frequent. During the
second field test we sent four notifications per test run. The
contents of the notifications were a voucher for a drink, a
hint to use the instant feedback for lift waiting time, the
announcement of an event and advertisement for a hut.
Especially the notifications about huts were very interesting
for the participants. 75 % of all send messages were read by
the participants. The usefulness of this feature was rated
with a mean of 2.3 (n=54, 1 very useful, 5 not useful at all).
From a technical perspective the research project proved
that the operation of a service like Smart Ski Goggles is
feasible, all technologies needed are in place and more or
less conventional. As with all mobile devices battery life is
a crucial topic. On the other hand the battery life has turned
out to be sufficient for a day on the slopes (5 to 6 hours),
given that the display is switched off during longer brakes
and the outside temperature is not below -5 °C. The most
challenging part was the integration of different kind of
data sources in the backend. Our caching approach proved
to be very reliable.</p>
      <p>Business model-wise the summary is twofold. On the
shortterm and if such a service is solely focusing on data ski
goggles it won't finance itself as the market potential is too
small at the moment. But on the other hand a ski resort
could use this service for marketing reasons. Furthermore,
parts of the services features could be used within
smartphone apps or info terminals.</p>
      <p>CONCLUSIONS AND FUTURE WORK
The approach to co-create software for smart glasses in a
multi-step approach together with potential users basically
proved to be very useful. With integrating them from the
very beginning of the project the features could be
implemented as close as possible to real needs,
requirements and concerns. Some of the requirements and
wished features could not be implemented due to technical,
conceptual or resource reasons. On the other hand one
could argue that integrating potential users in the
conception of features for a device which is so new that it
barely hit the market is not a good idea. This has to be
confirmed if it comes to the fact that many people really
believed the glass shield of the data ski goggle would be the
display (like a HUD in a car). So, it is very important to
make it clear to the participants of such a study how the
display works. This can be achieved best by letting them try
the goggles by themselves. In general, the selection of
participants and the research design for the user tests is
crucial. The results are strongly biased by the professional
background and personal expectations of the participants.
Furthermore, if participants are testing together (as
happened in the second field test) they are influencing each
other which again leads to biased test results. Another
important point was the inclusion of many stakeholders
throughout the project. Only with these experts from
different areas like ski resort operations, retail, tourism and
marketing a holistic view of the service could be reached.
A crucial point are system tests in which the complete
system is being tested in real-life conditions, as we have a
complex system with many components (goggle, remote,
smartphone, backend server, several other data sources)
with unpredictable real-time performance (mobile network
availability, GPS availability and accuracy, etc.). In a future
project of this kind more focus has to be set on system
testing compared to feature development. Additionally, the
user feedback for the lift waiting time feature was not as
valuable as it would have been when testing under more
crowded slope conditions. With the current software
version, a navigational route can only be calculated if we
have live access to the routing server. In future work for the
navigation feature the necessary live access to the routing
server could be widely avoided if most used or even all
possible navigation routes are being pre-fetched on the
gateway app. In general, the navigation feature has the most
potential for improvement.</p>
      <p>
        From a business perspective the difficulty is that the market
for these devices has yet to be developed. As long as there
are no useful apps available not many people will buy such
goggles. On the other hand as long as not so many devices
are used no company wants to invest in developing such
apps. This chicken-egg-problem is typical for the very early
stage of new products and can only be solved by
entrepreneurial thinking and acting. This research project
has contributed to this situation in providing deep insights
into technological, organizational, economical and social
aspects of such services. In a next step the results of the
research project have to be discussed with interested
stakeholders (hardware manufacturers, ski resorts, retailers,
etc.) to further develop the business model scenarios and to
explore how Smart Ski Goggles could potentially be
commercialized. Since the end of the project a marketable
version with a limited feature set was developed and is live
since December 2014 [
        <xref ref-type="bibr" rid="ref7">7</xref>
        ]. Furthermore, the Smart Ski
Goggles software will further be developed based on the
concrete requirements of ski resorts [8].
      </p>
      <p>In summary the project showed that in general there is a
huge potential for using data ski goggles with apps like
Smart Ski Goggles. People are basically open to use smart
glasses if they offer an added-value to them. During the
project we collected a lot of new feature ideas, like e.g.
personalization or audio output for navigational hints.
Though, security and privacy aspects have to be taken
seriously. From a user's point of view it is crucial to have an
easy and clear UI as well as an intuitive interaction concept.
On top of that other user experience factors like the form
factor, weight, battery life, price, etc. have to be taken into
account when developing applications for smart glasses.
In general, real-time information services using smart
glasses can create added-value and enable more efficient
applications in a large variety of different domains. As
mentioned above, these services will only be successful, if
the usage scenario is understood in a holistic way. The
public discussion about Goggle Glass clearly showed, how
important it is to balance technological and social factors
when introducing new technology.</p>
      <p>ACKNOWLEDGEMENT
This research project was funded within the 7th Research
Framework Programme (under the EXPERIMEDIA
project, grant agreement number 287966).</p>
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