My speech at the CeBIT Global Conferences in 2015. It is based on our observations caused by the disruptive force of the Internet of Things. We describe a self-reinforcing virtuous cycle and how various industry players can take advantage of it. The presentation also contains market research findings that describe the great potential to be captured by transforming traditional home automation market to a modern approach where customers connect their smart devices and automate their actions.

1. IoT and the Art of
Entrepreneurship
19.3.2015
COZIFY.FI

2. presented by
Antti Vihavainen from
IoT and the Art of
Entrepreneurship

3. The virtuous cycle
Cost of
connectivity
down
Cool and
useful
gadgets
Big
opportunities
Great
people
XaaS
Lower cost
of trial
Finance
IoT
startup

4. IoT and home automation
Traditional home automation systems are
hard to
Buy Install Use Expand
IoT
Devices are easy to buy and use, but will result in a
clutter of apps and lack of interconnectivity.
Smart devices can be used to create the
same functionality than traditional home
automation at much lower cost

5. Cozify introduction
• Our goal is to disrupt the home automation
business
• Cozify Hub easily automates smart devices
across different manufacturer specific silos
• Designed for the early majority

6. Market data related to home automation
demand
• We used an internet panel in Finland (n=1000),
Germany (n=1000) and in the USA (n=2000)
Definition
• Home automation facilitates and automatizes the operation
of home appliances and, with them, it is possible to utilize
and integrate the information obtained from different
appliances.
• For example: turn on the lights when someone enters a room.
Or automatically lower the volume of music after ten o'clock.

7. Big opportunities
• Cozify’s market study shows that the number of households
planning to buy home automation in the next two years is
• 732 000 in Finland (28%)
• 17 000 000 in Germany (43%)
• 44 000 000 in the USA (38%)
• Acquity Group study shows that
two thirds of consumers in the US
will buy in-home IoT device during
next 5 yrs
in US in 5 years

8. Are you planning to buy a home automation
system within 2 yrs?
“Germans are most likely to
purchase a home automation
system”
“In all countries women are much more
security oriented than men (up to 11%-
points)”
“The same applies to energy
efficiency,
but in smaller extent”
USA GERMANY FINLAND
PERCENTPERCENTPERCENT
Curtains, awnings, carage doors etc 5.3%
12.6%
14.7%
21.6%
0.2% 0.3% 0.2%
4.7% 2.4%
15.7% 13.6%
22.6% 9.2%
19.4% 11.5%
Other
Home lighting, consumer electronics
Domestic energy efficiency
Home security

9. Preferred supply chain
• In the USA, people prefer buying home automation from home
department or hardware store (49%)
• In Germany, the same channel is the least preferred (22%)
• Electrical designers dominate (47%)
• Broadband provider is the most neutral in all countries

10. Cool gadgets appeal…
High priority
• Information security was in top 3 factors in all countries
• DIY installation (especially in Germany)
• User interface
Low priority
• Advanced configuration options
• Best possible automation of one application area

11. Preferred devices…
In the USA, all top three devices were
related to security
In Germany energy metering device was
second most important
The older the person, the more important the
metering device is
The younger the person, the more important the
automated lighting and multi-room speaker
systems

12. End-user business model
• 44-49%% prefer one-time fee
• Rest prefer
• a pure service model
• combination of a upfront and service fee
• Price-point sweet spots per business model have been
identified

13. Cost of
connectivity
down
Cool and
useful gadgets
Big
opportunities
Great people
XaaS
Lower cost of
trial
Finance
The virtuous cycle
Security concernsDigital
evolution
Failures IoT is the
new mobile

14. IoT is the tornado
• Most likely it will destroy the
villages it encounters
• Changes are inevitable
• Location may be different
• Houses may be fewer but larger
Photo credit Justin1569 @ en.wikipedia

15. Conclusions
FOR CORPORATES
new innovations available
FOR CONSUMERS
comfort, security and cost savings
FOR INDUSTRY
efficiency improvements
FOR OPERATORS
increase ARPU, stickiness
and reduce churn
FOR RETAILERS
new line of (high margin) products
FOR START-UPS
Ideas are worthless! Execution
matters! JUST DO IT!
FOR VC’s
new high profile
investment opportunities

16. Antti Vihavainen
antti@cozify.fi
+358-40-52 33 880