qivicon by deutsche telekom - the new home automation solution creates awareness in the market

December 2013

FLASH INSIGHT

QIVICON by Deutsche Telekom The new home automation solution creates

awareness in the market

1

Copyright

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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.

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

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

Monitoring Costs

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.


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

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)


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

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


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

6

Configuration

The web and app interface differ in the UI design as well as in the range of functionalities.


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

7

Usage

The Deutsche Telekom app for QIVICON provides an intuitive UI with a great range of different functionalities.


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

8 Source: 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

[email protected]

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

9

The Smart Home Experience Center offers insights into more than 35 smart home solutions from over 10 different countries. Smart Home Experience Center


…and more

MS&C Smart Home Experience Center

qivicon by deutsche telekom - the new home automation solution creates awareness in the market

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