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Business Models for Smart Homes


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These slides summarize a business model for smart homes, as part of a course taught by Jeff Funk on business models

Published in: Business, Technology
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Business Models for Smart Homes

  1. 1. Chew Guang Wei HT093271W Ho Seow Yan HT093116E Koh Chung Wei, Nicholas  A0076868H Lin Jiaji A0076843W Ng Tzer Liang HT093280E Wee Chong Liang, Justin HT093290BMT 5016 : Business Models for Hi-Tech Products
  2. 2. Smart Home FeaturesTarget Market, Customer Segment and NeedsValue PropositionValue Network & Revenue StreamVertical Integration Chain & Industry ArchitectureStrategic ControlConclusion MT 5016 : Business Models for Hi-Tech Products
  3. 3. Smart entertainment hub Motion sensors Security Control tablet to Health monitoring control  audio/video  systems Automatic  energy  Cameras to track  home  management  interior/exterior in the house MT 5016 : Business Models for Hi-Tech Products
  4. 4. • Where: Singapore• Who: New Home Owners – Mostly between 20s – 30s years old  – Of marriageable age – < $10,000 household income, dual income earning – Most likely to buy first homes from SG government – Most likely to stay in new eco‐town/estates MT 5016 : Business Models for Hi-Tech Products
  5. 5. Gen Y  “Most connected generation”  • Born between 1980s‐1990s • Willing to pay for digital lifestyle • Enjoys using tech gadgets • Spends 1/3 of life on the internet • 1st generation to grow up with  computers at home • Email, SMS and instant messaging as  the preferred communicationMT 5016 : Business Models for Hi-Tech Products
  6. 6. 5 4 3 2 1 Energy  Management Services Energy Saving Services Eco‐ friendly Products – Green Living Entertainment  “Fun Factor”  Social activities with friends Internet activities (Video streaming,  Gaming, e‐shopping etc) Smart Technology “Smart” Appliances Connectivity – Information Accessibility Home Monitoring*5 is of most importance to the customer and 1 is of least importance to the customer MT 5016 : Business Models for Hi-Tech Products
  7. 7. IMPT EMS Entertainment Smart  ControlsEnergy  Management ServicesEnergy Saving Services 4Eco‐ friendly Products – Green Living 3Entertainment  “Fun Factor” Social activities with friends 5Internet activities (Video streaming,  5Gaming, e‐shopping etc)Smart Features“Smart” Appliances 5Connectivity – Information Accessibility 5Home Monitoring 3 MT 5016 : Business Models for Hi-Tech Products
  8. 8. MT 5016 : Business Models for Hi-Tech Products
  9. 9. Entertainment Dimmer Dimmer • Neighbourhood  Dimmer networking • Social TV: Chat  with viewers • Conferencing • Interactive  gamingHome Monitoring• Smart on board  intelligent appliances• Round the clock CCTV  monitoring on kids at  home• Monitoring of pets Smart Appliances Smart Home Control Smartphone Access • eMetering, measures, collects  • Mobile access and data, analyses usage pattern.  monitoring MT 5016 : Business Models for Hi-Tech Products
  10. 10. 1) Integrative Solution Entertainment Social TV Interactive gaming Ease of access to content MT 5016 : Business Models for Hi-Tech Products
  11. 11. 1) Integrative Solution Smart Home Control Intelligent energy management One controller for all systems Home monitoring MT 5016 : Business Models for Hi-Tech Products
  12. 12. 2) Affordability Government Support  Policy (EMA Intelligent Energy System) Infrastructure (IDA OpenNet, HDB Eco‐ town) NEC in‐house Expertise Dedicated electronics provider Existing technology MT 5016 : Business Models for Hi-Tech Products
  13. 13. Revenue  Stream Subscription Fees Scope of activities NEC  Content  Leasing  Platform & NEC BoxGovernment  Fee Partners Maintenance Customers Home  Security Subscription  Profit  Fees Sharing NEC  Services Platform 3rd party  Subscription  Services Fees MT 5016 : Business Models for Hi-Tech Products
  14. 14. Developing Punggol to be the first eco‐town will serve as a “living laboratory” for green living environment Signed Research Collaboration Agreement (RCA) with Solar Energy Research Institute of Singapore (SERIS)  Spearheaded pilot project, Intelligent Energy System (IES) to modernize electricity transmission around a smart grid Phase 1 (2010 – 2012) focuses on infrastructure for smart grids. Phase 2 (2012 ‐ 2015) will focus on smart grid applications Launched Connected Homes Program in 2003 to be in line with IDA’s 10‐year masterplan, iN2015. Launched Next Gen NBN aimed to deliver high speed broadband of up to 1Gps MT 5016 : Business Models for Hi-Tech Products
  15. 15. Strong Partnerships• Key benefits are: – Create awareness of available NEC products and solutions – Establish links with authorities MT 5016 : Business Models for Hi-Tech Products
  16. 16. • Collaborations with government  agencies to raise awareness i.e.  Infocomm Experience Center by IDA• Involved in town planning as technology  expert• Engage respective town councils to use  technology for pilot projects such as  upgrading of Shopping Centers and  Home upgrading projects• Showcase ideas at international forums    MT 5016 : Business Models for Hi-Tech Products
  17. 17. Vendors Application  Customers OEMs Developers OSGiComponents &Assembly Open  Proprietary Source Integrative Solution Hardware Software NEC Content Partners NEC Smart Home  Service e.g. ISPs Gateway Government MT 5016 : Business Models for Hi-Tech Products
  18. 18. NEC PartnersComponentsProduct DesignAssemblyOperating SystemApplicationsSales & DistributionsServicesMaintenance MT 5016 : Business Models for Hi-Tech Products
  19. 19. • ISO 9000: Quality Management• ISO14000: Environmental  Management• ISO 50001: Energy Management• Open Services Gateway initiative  (OSGi) Framework MT 5016 : Business Models for Hi-Tech Products
  20. 20. DEVELOPERS BUSINESS• Reduces complexity • Modular and dynamic model  – Modular architecture to reduces development and  operational costs• Building systems from in  house and off‐the‐shelf  • Integrates multiple devices  modules in a networked environment MT 5016 : Business Models for Hi-Tech Products
  21. 21. IP Management• “foundation of NEC’s group business  competitiveness and stability”  • IP protection of core technologies• Patent Portfolio and licensing – NEC currently has 68,000 patents worldwide and  supports Open Innovation – Continue to source for patents related to smart  homes worldwide – License technology to expand business opportunities  and reduce business risks MT 5016 : Business Models for Hi-Tech Products
  22. 22. R & D• Y2017 Vision: NEC launched its long term R&D based  on 3 visions – Symbiosis, Ecology & Dependable by  Y2017 MT 5016 : Business Models for Hi-Tech Products
  23. 23. Appropriability• Small local smart home industry – Only a few start up companies such as Anacle Systems, Cytech technologies, etc.  • Collaboration with companies to create an  integral modular industry architecture,  where NEC can determine: – Communication protocol between systems – Acceptable standards for smart homes• Work with acquired local companies that are familiar with local regulations MT 5016 : Business Models for Hi-Tech Products
  24. 24. Creating other barriers of entry• High Switching Costs: – Min 5‐yrs occupancy of HDB houses – High switching cost due to the built‐up  content and services provided• Economies of Scale: – NEC can provide smart home technology at  a fraction of the costs – New firms can’t keep cost down efficiently• Network Effects: – New towns, such as Punggol eco‐town, will  have estimated 18,000 homes for NEC  smart home gateway MT 5016 : Business Models for Hi-Tech Products
  25. 25. • NEC has the core competencies and resources to be  one of the pioneers in smart home industry in  Singapore• Singapore has the necessary infrastructure to  support the smart home technologies• Recommend that NEC uses Singapore as a  “springboard” into other Asia Pacific countries like  Hong Kong, Taiwan and eventually India and China MT 5016 : Business Models for Hi-Tech Products