iot and the art of entrepreneurship
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IoT and the Art of Entrepreneurship
19.3.2015COZIFY.FI
presented byAntti Vihavainen from
IoT and the Art of Entrepreneurship
The virtuous cycle
Cost of connectivity
down
Cool and useful
gadgets
Big opportunities
Great people
XaaS
Lower cost of trial
Finance
IoTstartup
IoT and home automation
Traditional home automation systems are
hard to
Buy Install Use Expand
IoTDevices are easy to buy and use, but will result in a clutter of apps and lack of interconnectivity.
Smart devices can be used to create the same functionality than traditional home automation at much lower cost
Cozify introduction
• Our goal is to disrupt the home automation business
• Cozify Hub easily automates smart devices across different manufacturer specific silos
• Designed for the early majority
Market data related to home automation demand
• We used an internet panel in Finland (n=1000),Germany (n=1000) and in the USA (n=2000)
Definition
• Home automation facilitates and automatizes the operation of home appliances and, with them, it is possible to utilize and integrate the information obtained from different appliances.
• For example: turn on the lights when someone enters a room. Or automatically lower the volume of music after ten o'clock.
Big opportunities
• Cozify’s market study shows that the number of households planning to buy home automation in the next two years is
• 732 000 in Finland (28%)
• 17 000 000 in Germany (43%)
• 44 000 000 in the USA (38%)
• Acquity Group study shows that two thirds of consumers in the US will buy in-home IoT device during next 5 yrs
in US in 5 years
Are you planning to buy a home automation system within 2 yrs?
“Germans are most likely topurchase a home automation
system”
“In all countries women are much more security oriented than men (up to 11%-
points)”
“The same applies to energy efficiency,
but in smaller extent”
USA GERMANY FINLANDPERCENTPERCENTPERCENT
Curtains, awnings, carage doors etc 5.3%
12.6%
14.7%
21.6%
0.2% 0.3% 0.2%
4.7% 2.4%
15.7% 13.6%
22.6% 9.2%
19.4% 11.5%
Other
Home lighting, consumer electronics
Domestic energy efficiency
Home security
Preferred supply chain
• In the USA, people prefer buying home automation from home department or hardware store (49%)
• In Germany, the same channel is the least preferred (22%)
• Electrical designers dominate (47%)
• Broadband provider is the most neutral in all countries
Cool gadgets appeal…
High priority
• Information security was in top 3 factors in all countries
• DIY installation (especially in Germany)
• User interface
Low priority
• Advanced configuration options
• Best possible automation of one application area
Preferred devices…
In the USA, all top three devices were related to security
In Germany energy metering device was second most important
The older the person, the more important the metering device is
The younger the person, the more important the automated lighting and multi-room speaker
systems
End-user business model
• 44-49%% prefer one-time fee
• Rest prefer
• a pure service model
• combination of a upfront and service fee
• Price-point sweet spots per business model have been identified
Cost of connectivity
down
Cool and useful gadgets
Big opportunities
Great people
XaaS
Lower cost of trial
Finance
The virtuous cycle
Security concernsDigitalevolution
Failures IoT is the new mobile
IoT is the tornado
• Most likely it will destroy the villages it encounters
• Changes are inevitable
• Location may be different
• Houses may be fewer but larger
Photo credit Justin1569 @ en.wikipedia
Conclusions
FOR CORPORATESnew innovations available
FOR CONSUMERScomfort, security and cost savings
FOR INDUSTRYefficiency improvements
FOR OPERATORSincrease ARPU, stickiness
and reduce churn
FOR RETAILERSnew line of (high margin) products
FOR START-UPSIdeas are worthless! Execution
matters! JUST DO IT!
FOR VC’snew high profile
investment opportunities
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