bundling services to smart home internet of things

Presented by:

Internet of Things: Smart Home

Success through Bundled Services

Parks Associates Webcast

Sponsored by:

www.parksassociates.com | © Parks Associates | [email protected] | 972.490.1113 | @ParksAssociates

Audio Recording

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2

https://attendee.gotowebinar.com/recording/199019657798189826




Presented by:

Stuart Sikes, President, Parks Associates


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


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

Internet of Things

6


Defining the Internet of Things

• Internet of computers

7

• Internet of CE devices • Internet of any devices


Quirky + GE www.quirky.com

Quirky.com

www.parksassociates.com | © Parks Associates | [email protected] | 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…


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


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


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


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?"


% Selecting


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?"




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?"




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?"




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


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


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

Ke

y p

oin

ts

• 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


Company Summary

19

Dick Seger

CEO

Verisure Group

Securitas Direct Group

We are specialists in security for the home and family

1.6 million customers

Europe’s leading

provider of full-service

safety, security and

home control solutions.

6,500 Employees and

large partners

organisation

14 Business in 14

countries in Europe

and South America

390 Portfolio EBITDA, million €

Net Sales 812million € Full Year 2013

Owned by Bain

Capital and Hellman

& Friedman

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

Eco Solutions Company

Panasonic Corporation Eco Solutions Company

Net Sales in Panasonic Corporation: US$ 73 Bil. / FY2012

Net Sales in Eco Solutions Company: US$ 17 Bil. / FY2012 Appliance Company

Eco solutions Company AVC Company Automotive & Industrial System Company

Panasonic Corporation

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


Leading Value Propositions: Entry Points

25


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


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


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

Flood

Gas/Water Leak


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


event of:

Fire

Flood

Gas/Water Leak


$199.99



Break-Ins

Fire

Flood

Gas/Water Leak




$349.99



Break-Ins

Fire

Flood

Gas/Water Leak


INCLUDES:




$499.99

Home Safety System


event of:

Fire

Flood

Gas/Water Leak


$199.99



Break-Ins

Fire

Flood

Gas/Water Leak




$349.99



Break-Ins

Fire

Flood

Gas/Water Leak


INCLUDES:




$499.99

© 2014 Parks Associates


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

% P

refe

rrin

g P

acka

ge


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


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%)

Net

Pro

mo

ter

Sco

re

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)


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

www.parksassociates.com | © Parks Associates | [email protected] | 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%

Consumer Business 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


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


Interoperability Scenarios

34

Home Networks Gateways Cloud

Business Data

Services

APIs

Partners

Peer to Peer

34


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


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

© P

AR

KS

AS

SO

CIA

TE

S

Stuart Sikes President

[email protected]

Office: 972.490.1113

Fax: 972.490.1133

[email protected]

Thank You.

bundling services to smart home internet of things

Business

iot webcast

home monitoring

home panic

text message

securitas

winning business

home management

smart home