IoT connecting not only things but also new business models.
The internet of things, in simple words, is the (buzz) term used for describing the hyper connectivity that surrounds us… Regardless of the environment – whether it’s your city, your office, your car, your home or even your ski resort – everything is becoming connected and smarter.
Humidity sensor with input from the weather forecast can communicate with lawn sprinklers; car’s fuel sensor can communicate to a nearby gas station that sends you a message to fill your tank in a discounted price; the hours-counter in your office can send you a notification that you might want to consider staying some extra hours this month…
These examples show how different domains are now connected and interconnected with adjacent environments: home automation with connected cars; your garden with your home water supply; your work place with your calendar and your refridgerator with your grocery store – to name few possibilities…
This hyper connectivity of things has also become accessible (economically speaking), a fact that contributes to the IoT ubiquity and prosperity. The smart home, a particular case of the IoT, has been historically adopted by a relatively small group of home owners due to its high price. Now however, thanks to new self-monitoring systems, reduced costs of ~30-40% across hardware, processing power and communications over the past decade, systems for smart home are affordable and accessible to mass adoption.
Presently, the smart home major barrier to mass market adoption is consumer awareness and clarity of value proposition rather than its price.
The lack of clarity of the value proposition leads to the need to offer services rather than just ‘smart boxes’ and to breakdown the pricing to a “more easy to digest” monthly fee…
The interconnectivity between many previously-unrelated domains has opened a window for endless new business models and services. We currently don’t even know a fraction of the possible services that will be available in the near future just like we don’t know what will be the professions of the future (how does ‘Systems IoTization Engineer sound like?)…
Creative business/revenue models will be crucial in order to facilitate mass market penetration and to create clear and appealing value proposition to the “man on the street”.
Having understood where the IoT winds are blowing, Essence has embraced a mulit-service platform approach – as opposed to a product approach. We enable our partners – service providers to deploy smart home solutions with short time to market, providing them with turnkey solutions to introduce new valuable services to market, offering the following:
- Home security and safety
- Home energy management
- Home health monitoring (aging in place)
- Home automation
In parallel, we at Essence identified together with our customers/partners that offering smart home services require more support on our end to enable short time to market in a modular way to reduce risk for the service providers.
Such services include:
- Co-develop business models and value proposition to end users
- Best practices for launching smart home solutions
- Go-to-market consulting services based on our market knowledge
- Product customizations and personalization (HW and SW)
- Managed services e.g. for operations and logistics to reduce our partner’s TCO
In order to allow our partners to embrace a “grow as you go” approach, we have developed a cloud based multi-service platform we call Essence One Play™. The idea behind this platform was to create one platform that will be able to support multiple services with minor hardware modifications/additions. This will allow us to develop new services for our partners, enabling them to choose their entry level offering and then expand once they are ready.
Essence WeR@Home™, our award-winning home management solution is the first line of business in which we provide a multi-service platform.
We believe Essence strategy and services should enable our partners to focus on doing what they do best – focusing on their business growth and provide valuable services.
What services will we offer? Go wild, be creative… in the next newsletter some new services will be revealed…
We wish you all happy connected holidays,
Essence Marketing Team