QIVICON by Deutsche Telekom - The new home automation solution creates awareness in the market

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MS&C has developed a smart home customer journey analysis concept and regularly investigates the six steps of the sales and after-sales phase of newly launched smart home products (purchase, unboxing, installation, configuration, usage, extension). Customer journey is an analysis concept to measure the customer satisfaction along the pre-sales, sales and after-sales customer experience.
QIVICON is a German smart home solution (powered by Deutsche Telekom) which entered the market in October 2013. The business model promises a high degree of flexibility to the customer in terms of product compatibility as QIVICON partners with a variety of different firms such as Miele, Samsung, Belkin, or Deutsche Telekom. Compared to industry’s benchmark, QIVICON’s customer journey score reaches a solid mid-field position

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QIVICON by Deutsche Telekom - The new home automation solution creates awareness in the market

  1. 1. December 2013 FLASH INSIGHT QIVICON by Deutsche Telekom The new home automation solution creates awareness in the market
  2. 2. 1 Copyright This document is intended for your personal use only. The distribution is permitted only in an unaltered form. The use of the contents and graphics in other documents is permitted only with the prior consent of MÜCKE, STURM & COMPANY and requires proper citation. The texts and figures in this document have been compiled by MÜCKE, STURM & COMPANY within a presentation; they are no comprehensive documentation of the overall event. All of the company names, logos, brands, trademarks, registered trademarks and products used in this document are sole property of the corresponding companies and are used for illustrative purposes only.
  3. 3. 2 Mücke, Sturm & Company offers periodical analyses of new home automation solutions. These are based on the customer journey methodology. Management Summary  MS&C is a management consultancy with focus on digital markets  MS&C has been active in the German market for over ten years and belongs to the leading consultancies within the TIME industry  MS&C supports companies to gain a competitive advantage in markets that are affected by digital transformation  MS&C offers its clients unique product insights in its Smart Home Experience Center where more than 35 smart home solutions can be tested and analyzed Mücke, Sturm & Company  Customer journey is an analysis concept to measure the customer satisfaction along the pre-sales, sales and after- sales customer experience  MS&C has developed a smart home customer journey analysis concept and regularly investigates the six steps of the sales and after-sales phase of newly launched products (purchase, unboxing, installation, configuration, usage, extension)  Customer satisfaction is measured at the so called “Moments of Truth” – the most important points of interaction of a customer with the product  The points of interaction are called “Touchpoints” and can be differentiated in personal and impersonal, controllable and uncontrollable points of contact Customer Journey  QIVICON is a German smart home solution (powered by Deutsche Telekom) which entered the market in October 2013  The business model promises a high degree of flexibility to the customer in terms of product compatibility as QIVICON partners with a variety of different firms such as Miele, Samsung, Belkin, or Deutsche Telekom  Compared to industry’s benchmark, QIVICON’s customer journey score reaches a solid mid-field position  Throughout the entire customer journey, QIVICON provides a good customer experience but falls short regarding exceptional product features and product intelligence in order to reach state-of-the-art market development QIVICON TIME: Telecommunication, Internet, Media, Entertainment Source: Mücke, Sturm & Company Analysis
  4. 4. 3 Shutter Control Door and Window Sensors Ambient Assisted Living Appliance Control Door Locks Heating Control Lighting Control Security and Surveillance Entertainment Rule Creator Water MonitoringCosts Use Cases Own Devices: 1 Third Party: 20 Monthly Costs: none Gateway: 199.95 € Smart Plug: 39.95 € Thermostat: 39.95 € Door/Window Sensor: 29.95 € Smoke Detector: 49.95 € Starter Package: by Telekom 1 Gateway, 2 Thermostats, 1 Smart Plug, 1 Smoke Detector 299.95 € Lighting Package: by EnBW 1 Gateway, 2 Smart Plugs, 1 Wall Switch 269.00 € Heating Package: by EnBW 1 Gateway, 2 Thermostats, 1 Humidity Sensor 299.00 €* * 24 months app usage included, afterwards 19.90 € p.a. Source: Mücke, Sturm & Company Analysis QIVICON: Details Revenue Model Consumer QIVICON EnBW Dt. Telekom … Consumer Consumer Service€ QIVICON follows a B2B2C business model with multiple partnerships and different hardware price settings. Strategic Rationale  Offer an entry point in the home automation market (diversification to classic telecommunication business) and thus leveraging the customer base and sales channels of Deutsche Telekom  Create a B2B platform that is attractive for partners to join, thereby establishing an own ecosystem Products
  5. 5. 4 Compared to industry standard QIVICON reaches a solid mid-field position. Specific elements in the customer journey may be further developed in future releases. Customer Journey – After Sales Analysis (Excerpt) Source: Mücke, Sturm & Company Analysis Easy to follow step-by-step installation Limited configuration possibilities in computer interface Pre-configured scenarios in mobile app Long response time of actors which trigger actions Long duration of end-to-end installation process The Deutsche Telekom mobile app comes along with a set of pre-configured scenarios which shortens the time-to-usage. The computer interface provides only limited configuration possibilities. Intuitive app interface Worst in class Best in class Worst in class Best in class Worst in class Best in class The user experiences a very intuitive installation process during which he is supported by various kinds of media. Nonetheless, the end-to-end process takes relatively long. In daily operations QIVICON falls behind industry benchmark due to long response times, error messages, and limited intelligence of the devices. Purchase Unboxing Installation Configuration Usage Extension
  6. 6. 5 Installation The QIVICON device pairing process assists the user by showing detailed illustrations of every step in the web interface. Relatively long end-to-end installation process Quick overview of all compatible devices Missing automatic device identification Separate installation process for every single device Simple description of every device Instant help functionality Quick pairing process once new device is found Illustrated step-by-step installation guide Pairing with smartphone is not possible Source: Mücke, Sturm & Company Analysis Step 1: Selecting devices Step 2: Pairing devices Illustration of each device List of all compatible devices List of all current hardware providers Illustration of each step Popup help menu
  7. 7. 6 Configuration The web and app interface differ in the UI design as well as in the range of functionalities. Source: Mücke, Sturm & Company Analysis Configuration via computer interface Configuration via mobile app Room assignment Status and notifications Device settings Detailed information about the devices, apps, gateway, and extension modules Missing rule creator Single device encryption activation Enhanced functionalities after first app updates Preconfigured set of scenarios No possibility to create “new rules” Time schedule setting integrated in mobile app Partially un-intuitive UI set-up Time schedule configuration Rule creator
  8. 8. 7 Usage The Deutsche Telekom app for QIVICON provides an intuitive UI with a great range of different functionalities. Source: Mücke, Sturm & Company Analysis Control of actors and sensors via computer interface Control of actors and sensors via mobile app Device filtering Device status Manual temperature setting Direct device control Limited usage functionalities Various device filtering options Frequent connectivity issues Great range of different functionalities Partially confusing menu navigation Touchscreen optimized control buttons No landscape mode available Major improvements in terms of intuitiveness with last app update Direct device control Time scenario selection
  9. 9. 8Source: Mücke, Sturm & Company Analysis We are constantly analyzing industry trends and developments in the sector of technology, media, and telecommunications. If you would like to discuss the impact of our findings on your business, please get in touch with: Michael Mücke Managing Director smart-home@muecke-sturm.de QIVICON has the potential to become a strong player in the German home automation market. Optimization potential lies within the customer journey. Outlook Drivers for QIVICON + Strong brand, customer base, and retail channels + Opportune market positioning in early market growth development + Starting package and partner network with high potential to win customers base in home automation market + Potential to leverage customer flexibility due to partner network and platform infrastructure Challenges for QIVICON - Currently only limited number of use cases available - Timely adoption of new and known brand partners with relevant use cases and attractive products / services - Optimization of customer journey regarding installation, configuration, and usage - Continuous growth of competitors (e.g. start-ups) with an aggregation business model acquiring established brands as partners
  10. 10. 9 The Smart Home Experience Center offers insights into more than 35 smart home solutions from over 10 different countries. Smart Home Experience Center Source: Mücke, Sturm & Company Analysis …and more MS&C Smart Home Experience Center

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