Business Models for Smart Homes

MT 5016 : Business Models for Hi-Tech Products

Chew Guang Wei HT093271W

Ho Seow Yan HT093116E

Koh Chung Wei, Nicholas A0076868H

Lin Jiaji A0076843W

Ng Tzer Liang HT093280E

Wee Chong Liang, Justin HT093290B


Smart Home Features

Target Market, Customer Segment and Needs

Value Proposition

Value Network & Revenue Stream

Vertical Integration Chain & Industry Architecture

Strategic Control

Conclusion


Security

Health monitoring

Automatic energy

management in the house

Control tablet to control

audio/video systems

Cameras to track home

interior/exterior

Motion sensorsSmart entertainment hub


• 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


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 communication


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


IMPT EMS Entertainment Smart Controls

Energy Management Services

Energy Saving Services 4

Eco‐ friendly Products – Green Living 3

Entertainment “Fun Factor”

Social activities with friends 5

Internet activities (Video streaming, Gaming, e‐shopping etc)

5

Smart Features

“Smart” Appliances 5

Connectivity – Information Accessibility 5

Home Monitoring 3


Dimmer Dimmer

Dimmer

Entertainment

•Neighbourhood networking

•Social TV: Chat with viewers

•Conferencing•Interactive gaming

Smart Home Control

•eMetering, measures, collects data, analyses usage pattern.

Home Monitoring

•Smart on board intelligent appliances

•Round the clock CCTV monitoring on kids at home

•Monitoring of petsSmart Appliances

Smartphone Access• Mobile access andmonitoring


1) Integrative Solution

EntertainmentSocial TV

Interactive gaming

Ease of access to content


1) Integrative Solution

Smart Home ControlIntelligent energy management

One controller for all systems

Home monitoring


2) Affordability

Government Support Policy (EMA Intelligent Energy System)

Infrastructure (IDA OpenNet, HDB Eco‐town)

NEC in‐house ExpertiseDedicated electronics provider

Existing technology


Scope of activities

Home Security

NEC Platform

Customers

Government Partners

3rd party Services

ServicesNEC Platform

Content & NEC Box

Maintenance

Leasing Fee

Revenue Stream

Profit Sharing

Subscription Fees

Subscription Fees

Subscription Fees


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


• Key benefits are:– Create awareness of available NEC products and solutions

– Establish links with authorities

Strong Partnerships


• 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


Application Developers

NEC Smart Home Gateway

NEC

Hardware Software

ProprietaryOpen Source

Partnerse.g. ISPs

VendorsOEMs

OSGiComponents &Assembly

Government

Customers

Integrative Solution

ContentService


NEC Partners

Components

Product Design

Assembly

Operating System

Applications

Sales & Distributions

Services

Maintenance


• ISO 9000: Quality Management

• ISO14000: Environmental Management

• ISO 50001: Energy Management

• Open Services Gateway initiative (OSGi) Framework


DEVELOPERS BUSINESS• Reduces complexity

– Modular architecture

• Building systems from in house and off‐the‐shelf modules

• Modular and dynamic model to reduces development and operational costs

• Integrates multiple devices in a networked environment


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


R & D• Y2017 Vision: NEC launched its long term R&D based on 3 visions – Symbiosis, Ecology & Dependable by Y2017


Appropriability

• Small local smart home industry– Only a few start up companies such as AnacleSystems, 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


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


• 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

Business Models for Smart Homes

Business

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