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Presented by:
Internet of Things: Smart Home
Success through Bundled Services
Parks Associates Webcast
Sponsored by:
www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates
Audio Recording
...
Presented by:
Stuart Sikes, President, Parks Associates
www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates
Internet of Thin...
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Internet of Thin...
Internet of Things
6
www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates
Defining the Int...
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Quirky + GE www....
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Phase I:
In pl...
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Lessons Learned:...
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Audience Survey ...
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Audience Survey ...
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Audience Survey ...
www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates
Audience Survey ...
www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates
Audience Survey ...
www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates
Case Studies
Alv...
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ORANGE : A World...
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There are critic...
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Company Summary
...
Securitas Direct Group
We are specialists in security for the home and family
1.6million customers
Europe’s leading
provid...
Securitas Direct Group
Verisure – a portal
to the connected
smart home
• The Verisure eco-system provides full
integration...
Eco Solutions Company
Panasonic Corporation
Eco Solutions Company
Net Sales in Panasonic Corporation:
US$ 73 Bil. / FY2012
Net Sales in Eco Solu...
Becoming the No.1 Green Innovation Company
in the Electronics Industry
By linking and combining
technologies that achieve ...
www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates
Leading Value Pr...
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Discussion 1: Le...
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The Power of Bun...
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When prices are ...
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Discussion 2: Th...
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Getting Past Ear...
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Discussion 3: Mo...
www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates 32
Business Mode...
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Discussion 4: Wi...
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Interoperability...
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Discussion 5: Cr...
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Question and Ans...
©PARKSASSOCIATES
Stuart Sikes
President
ssikes@parksassociates.com
Office: 972.490.1113
Fax: 972.490.1133
tom.kerber@parks...
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Bundling services to Smart Home Internet of Things

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Park Associates moderates a discussion between Verisure, Orange & Panasonic for selling in Europa, April 2014

Published in: Business, Technology

Transcript of "Bundling services to Smart Home Internet of Things"

  1. 1. Presented by: Internet of Things: Smart Home Success through Bundled Services Parks Associates Webcast Sponsored by:
  2. 2. www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates Audio Recording To replay the webcast, click here: https://attendee.gotowebinar.com/recording/4512061826813266945 2
  3. 3. Presented by: Stuart Sikes, President, Parks Associates
  4. 4. www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates Internet of Things: Smart Home Success through Bundled Services Agenda  Defining Internet of Things and the evolution of the smart home  Audience perspectives on success factors for an emerging market  Current offerings from 3 industry leaders (Verisure, Orange, Panasonic)  Leading value propositions  The value of bundles  Business models  Interoperability  Questions 4
  5. 5. www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates Internet of Things: Smart Home Success through Bundled Services Alvaro Gallardo Smart Home Services & Assistance at Home Director at Orange 5 Takeshi Kubota Managing Director, Panasonic Eco Solutions Europe Dick Seger CEO Verisure Group
  6. 6. Internet of Things 6
  7. 7. www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates Defining the Internet of Things • Internet of computers 7 • Internet of CE devices • Internet of any devices
  8. 8. www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates Quirky + GE www.quirky.com Quirky.com
  9. 9. www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates 9 Phase I: In place today Phase II: 0-5 years Phase III and Beyond: Next 10 years Data Collection Display, Reporting Modeling Behavior Knowledge Based Reporting Prediction Intelligent Control Follow Orders Adapt and Learn Coordinate Environment Connected Home Smart Home IoT in the Home: 3 phases of home controls…
  10. 10. www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates Lessons Learned: Success Factors for Smart Home 1. Point solutions are limited in attractiveness 2. There is no single killer value proposition 3. There exists a hierarchy of needs 4. Bundles will win 5. Multiple paths to market 6. Interoperability is simple … from the consumer’s perspective 10
  11. 11. www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates Audience Survey -- What Industries will Benefit Most? 11 3% 6% 8% 6% 11% 9% 14% 11% 30% 4% 4% 9% 9% 10% 11% 12% 9% 15% 17% 10% 4% 7% 6% 10% 6% 10% 18% 17% 11% 0% 10% 20% 30% 40% 50% 60% 70% Other Insurance Software Alarms Home appliance… Cable Utilities Online Electronic hardware Telecom Top Industry Second Industry Third Industry Industries Benefitting Most From Smart Home Industry Development (Q2/14) "Q1. Which three industries have the most to gain by the development of the smart home market?" (Among IoT Webcast Attendees, n=109, ±9.39%) Source: Internet of Things Survey Q2 2014 N=109 Webcast attendees © Parks Associates % Selecting
  12. 12. www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates Audience Survey -- What Industries are Overestimating the Benefit? 12 9% 8% 15% 17% 17% 19% 20% 22% 30% 38% 0% 5% 10% 15% 20% 25% 30% 35% 40% Other Software Electronic hardware Cable Telecom Home appliance… Online Alarms Utilities Insurance Source: Internet of Things Survey Q2 2014 N=109 Webcast attendees © Parks Associates Industries Overestimating Future Role in Smart Home Market (Q2/14) "Q2. Which industry(ies) are overestimating its future role in the development of the smart home market?" (Among IoT Webcast Attendees, n=109, ±9.39%) % Selecting
  13. 13. www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates Audience Survey -- Most Important Driver 13 User-friendly interfaces and easy to use products, 30% Increased general consumer awareness, 24% Bundling of services, 14% Energy management, 10% Remote access to home systems, 8% Care services for an aging population, 6% Well known companies investing in the market, 4% Security services, 3% Health and medical services, 2% Most Important Driver for Developing Smart Home Market (Q2/14) "Q3. What factor will be the most important driver for developing the smart home market?" (Among IoT Webcast Attendees, n=109, ±9.39%) Source: Internet of Things Survey Q2 2014 N=109 Webcast attendees © Parks Associates
  14. 14. www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates Audience Survey -- Most Significant Barriers 14 Interoperability between different applications, 28% Raising awareness of product benefits, 15% Bundling the right services, 13% Consumer unwillingness to cope with new technology, 12% Lack of consumer demand, 12% Installation and maintenance, 8% Integration of technology and communication services, 6% Finding the right prices to charge, 6% Service, 1% Most Significant Barrier to Smart Home Adoption (Q2/14) "Q4. What is the main barrier to widespread smart home adoption?" (Among IoT Webcast Attendees, n=109, ±9.39%) Source: Internet of Things Survey Q2 2014 N=109 Webcast attendees © Parks Associates
  15. 15. www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates Audience Survey -- Successful Business Models 15 Device sales with no or low monthly fees, 37% Included with energy management systems, 13% Included with entertainment systems purchases, 14% Monthly professional service fees and little to no up-front product fees, 37% Winning Business Models for Smart Home Adoption (Q2/14) "Q5. What business model will be most successful in delivering smart home products to a large market?" (Among IoT Webcast Attendees, n=109, ±9.39%) Source: Internet of Things Survey Q2 2014 N=109 Webcast attendees © Parks Associates
  16. 16. www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates Case Studies Alvaro Gallardo Smart Home Services & Assistance at Home Director at Orange 16 Dick Seger CEO Verisure Group Takeshi Kubota Managing Director, Panasonic Eco Solutions Europe
  17. 17. www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates ORANGE : A Worldwide Leader • 2013 Turnover: €bn 41,0 • >50% of turnover out of France • Present in 35 countries (Consumer Market)) et 220 (Equant on the Enterprise Market) • 236 million customers worldwide » 178 M mobile (55 M en 3G) » 6,5 M IPTV, leader in Europe » 42 M fixed » 4G launched in 9 countries • EBITDA: €bn 12,6 M€ • Free Cash Flow 2013: €bn 7,0 • Investment €bn 5.6 (>13% of turnover) • ~170, 000 employees A Leading Brand 17
  18. 18. www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates There are critical elements that the whole industry, regardless of individual approach, has to face to enable new services to take off in different areas Holistic approach to the service Quality, customer experience and support Integration and simplicity Keypoints • Customers are demanding services ‘whenever, wherever, whatever’. • Partial solutions are likely to take-off, but could fade against integrated players. • Customers are to drive the demand of services, not players. • Regardless the business model, providers should address the whole customer experience, including post- sale elements, continuously improving the service. Otherwise, they are likely to fail. • New services will need strong customer support, being able to identify where the issues are located and fixed them. • Customers are not to add boxes and boxes. • Integrating the services and simplifying the overall experience would be worth, and customer will pay for it. • Single solutions (boxes, support, billing) would facilitate adoption. Offer should be built around customers’ demands This is about services, they should be delivered like them Make it easier for customer (and partners) 18
  19. 19. www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates Company Summary 19 Dick Seger CEO Verisure Group
  20. 20. Securitas Direct Group We are specialists in security for the home and family 1.6million customers Europe’s leading provider of full-service safety, security and home control solutions. 6,500 Employees and large partners organisation 14Business in 14 countries in Europe and South America 390Portfolio EBITDA, million € Net Sales 812million € Full Year 2013 Owned by Bain Capital and Hellman & Friedman
  21. 21. Securitas Direct Group Verisure – a portal to the connected smart home • The Verisure eco-system provides full integration of functionalities in the home – the alarm, lock, in-door climate, heating and cooling, doors and windows and control of electric appliances. • The Verisure app offers control of all functionality in the system. • 15,000 Verisure systems are installed each month. • App • My Pages • SMS
  22. 22. Eco Solutions Company
  23. 23. Panasonic Corporation Eco Solutions Company Net Sales in Panasonic Corporation: US$ 73 Bil. / FY2012 Net Sales in Eco Solutions Company: US$ 17 Bil. / FY2012Appliance Company Eco solutions Company AVC Company Automotive & Industrial System Company Panasonic Corporation
  24. 24. Becoming the No.1 Green Innovation Company in the Electronics Industry By linking and combining technologies that achieve comfort in harmony with nature and technologies that achieve comfort with minimal energy use, we are aiming to improve comfort and further reduce environmental impact Green Life Innovation Creating green lifestyles to Enrich people’s lives 100th Anniversary Vision 2018 Panasonic Corporation Eco Solutions Company
  25. 25. www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates Leading Value Propositions: Entry Points 25
  26. 26. www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates Discussion 1: Leading Value Propositions Alvaro Gallardo Smart Home Services & Assistance at Home Director at Orange 26 Dick Seger CEO Verisure Group Takeshi Kubota Managing Director, Panasonic Eco Solutions Europe
  27. 27. www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates The Power of Bundles Home Safety System Alerts you by text message/email in the event of:  Fire  Flood  Gas/Water Leak  Home “Panic Button” is Pressed $199.99 Home Security & Safety System Alerts you by text message/ email in the event of:  Break-Ins  Fire  Flood  Gas/Water Leak  Home “Panic Button” is Pressed INCLUDES: Home monitoring camera viewable from your smartphone or a computer $349.99 Home Management System Alerts you by text message/email in the event of:  Break-Ins  Fire  Gas/Water Leak  Home “Panic Button” is Pressed $199.99 Home monitoring camera viewable from your smartphone or a computer $349.99 Home Management System Alerts you by text message/email in the event of:  Break-Ins  Fire  Flood  Gas/Water Leak  Home “Panic Button” is Pressed INCLUDES: Home monitoring camera viewable from your smartphone or a computer Ability to adjust your thermostat and turn on/off your home’s lights using your smartphone or an Internet-connected computer $499.99 Home Safety System Alerts you by text message/email in the event of:  Fire  Flood  Gas/Water Leak  Home “Panic Button” is Pressed $199.99 Home Security & Safety System Alerts you by text message/ email in the event of:  Break-Ins  Fire  Flood  Gas/Water Leak  Home “Panic Button” is Pressed INCLUDES: Home monitoring camera viewable from your smartphone or a computer $349.99 Home Management System Alerts you by text message/email in the event of:  Break-Ins  Fire © 2014 Parks Associates
  28. 28. www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates When prices are presented, the safety system becomes the most appealing package. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Preferred (without pricing) Preferred (with prices) Safety System Safety & Security System Home Management System Preferred Smart Home Package with Pricing Shown (Q4/13) "Q7230. If offered these three systems for the following prices, which one would you be most likely to purchase?" (Among All BB HHs, n=2,500, ±1.96%) Source: 360 View: Energy and Broadband Households Q4 2013 N=2,500 Broadband heads-of-households © 2014 Parks Associates %PreferringPackage
  29. 29. www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates Discussion 2: The Power of Bundles Alvaro Gallardo Smart Home Services & Assistance at Home Director at Orange 29 Dick Seger CEO Verisure Group Takeshi Kubota Managing Director, Panasonic Eco Solutions Europe
  30. 30. www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates Getting Past Early Adopter 30 -7% 10% 17% 24% 44% 60% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% 1 feature (n=354, ±5.21%) 2 features (n=182, ±7.26%) 3 features (n=184, ±7.22%) 4 features (n=176, ±7.39%) 5 features (n=103, ±9.66%) 6 features (n=103, ±9.66%) NetPromoterScore NPS for Primary Home Control System by # of Features Adopted "Q7020. How likely are you to recommend your home control system to your friends, colleagues or family?" (Among BB HHs Having Specified Features)
  31. 31. www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates Discussion 3: Moving Beyond Early Adopter Alvaro Gallardo Smart Home Services & Assistance at Home Director at Orange 31 Dick Seger CEO Verisure Group Takeshi Kubota Managing Director, Panasonic Eco Solutions Europe
  32. 32. www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates 32 Business Model Preferences 48% 42% 43% 40% 39% 35% 30% 32% 32% 34% 38% 39% 25% 30% 35% 40% 45% 50% 55% 18-24 n=285, ±5.81% 25-34 n=500, ±4.38% 35-44 n=489, ±4.43% 45-54 n=573, ±4.09% 55-64 n=399, ±4.91% 65+ n=254, ±6.15% ConsumerBusiness Model Preferences (Q4/12) "Q7470. Assuming you wanted the home management equipment and services described earlier, which option would you prefer?" (Among BB HHs, N=2,500, ±1.96%) Purchase equipment with no subscription Free equipment with subscription Source: Home Systems and Security: New Offerings and Features, November 2012 2013 Parks Associates
  33. 33. www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates Discussion 4: Winning Business Models Alvaro Gallardo Smart Home Services & Assistance at Home Director at Orange 33 Dick Seger CEO Verisure Group Takeshi Kubota Managing Director, Panasonic Eco Solutions Europe
  34. 34. www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates Interoperability Scenarios 34 Home Networks Gateways Cloud Business Data Services APIs Partners Peer to Peer 34
  35. 35. www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates Discussion 5: Creating a Seamless Platform Alvaro Gallardo Smart Home Services & Assistance at Home Director at Orange 35 Dick Seger CEO Verisure Group Takeshi Kubota Managing Director, Panasonic Eco Solutions Europe
  36. 36. www.parksassociates.com | © Parks Associates | info@parksassociates.com | 972.490.1113 | @ParksAssociates Question and Answers Alvaro Gallardo Smart Home Services & Assistance at Home Director at Orange 36 Dick Seger CEO Verisure Group Takeshi Kubota Managing Director, Panasonic Eco Solutions Europe
  37. 37. ©PARKSASSOCIATES Stuart Sikes President ssikes@parksassociates.com Office: 972.490.1113 Fax: 972.490.1133 tom.kerber@parksassociates.com Thank You.
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