Mike Harris, CEO, Zonoff and speaker at CONNECTIONS Europe provides insights on new developments in smart home and entertainment services. Mike will participate on the 9:15 am Session, Engaging Consumers: Connected Home Business Models, on November 12.
The panel, moderated by Tom Kerber, Director of Home Systems and Energy Research, Parks Associates, includes the following participants
Joe Dada, CEO, INSTEON
Mike Harris, CEO, Zonoff, Inc.
Mark Lee, Commercial Director, Intamac
Daniel Schellhoss, Founder & Executive VP, ProSyst Software
1) What do you feel is the biggest obstacle to growth in entertainment services and/or smart home services?
Historically, price has been the biggest obstacle towards achieving mainstream adoption of the connected home. While there is still somewhat of a connotation of luxury that surrounds the idea of a “smart home”, we’ve worked with Staples to create a smart home solution that enables consumers to get started for under $100. For the smart home to enter the mass market, it needs to be accessible at a mainstream price.
The next step towards accelerating mainstream adoption is educating the public. We’re focused on consumer education and showing how the connected home is a way to simplify your life through technology. Connected devices can give you peace of mind by letting you know when your kids get home safely after school, or by automatically turning down your thermostat when you leave for vacation.
With the abundance of connected devices coming to market, and the ability to bring the price point down, we believe we’re at a tipping point for the connected home to reach the mass market. Over the next 12-18 months we’ll see continued adoption as consumers become more educated about the types of smart solutions they can create in their homes -- and the lifestyle and peace of mind benefits that come with those solutions.
2) What features should service providers focus on to convince consumers to sign up for new services?
In order to take advantage, service providers should look to what are the most popular settings and the most popular use cases for connected home capabilities. Each consumer is different, and applications and devices that resonate with consumers vary, but in many cases, consumers simply don’t know what their options are. Service providers should cater to customer preferences and educate them to let them know what types of services they may be missing, such as peace of mind applications or energy savings.
The Zonoff-powered app for consumers includes a powerful in-home commerce platform that enables retailers or service providers to recommend related products and value-added services via one-click purchase. These capabilities will open up compelling new revenue streams for our channel partners, as they share in the revenue generated through these incremental product sales and services.
3) How is your company helping to excel growth in the connected home in Europe?
We know that consumers in Western Europe are poised and ready for connected homes, and we’ve got our eye on the region for 2014. Currently we work with Somfy, the world’s leading manufacturer of motors used for automated window covers, who is headquartered in France. They use our software platform in the U.S. market, under the brand name of TaHomA. In addition, one of our senior managers - who is also a co-founder - lives and works in Germany, so he anchors our presence there.
As our own company grows, we’ll be looking to grow our own network through partners in Europe and Asia as well. The key is understanding that needs and wants vary across regions. For example, Europe has a much stronger focus on energy savings compared to convenience which is a primary issue in the US.
4) What is one key issue that people can’t stop talking about regarding entertainment or smart home services?
We find that consumers are excited by a few things: prices are coming down on hardware; there is less confusion around wireless standards; and they see more of the brands they trust now entering the market - both on the device and service side.
Beyond that, the thing that gets consumers excited is understanding how they can use the concept of a “smart home” to solve one very specific problem that matters to them. Once they achieve that, then they begin to understand other “use cases” or solutions, and soon they are on their way to a truly smart home.