the connected home

59
A PUBLICATION OF RIEDEL MARKETING GROUP AN INTRODUCTION TO THE CONNECTED HOME THE STEP-BY-STEP GUIDE TO [THIS TOPIC] AND HOW YOU CAN DO IT

Upload: aj-riedel

Post on 19-Jul-2015

263 views

Category:

Technology


3 download

TRANSCRIPT

A PUBLICATION OF RIEDEL MARKETING GROUP

AN INTRODUCTION TO

THE CONNECTED HOME

THE STEP-BY-STEP GUIDE TO [THIS TOPIC] AND HOW YOU CAN DO IT

About the Author

About the Author

A.J. Riedel, Senior Partner of Riedel Marketing Group (RMG), is a highly regarded marketing authority in the housewares industry, the top forecaster of housewares trends, and an

advisor to many housewares companies. A.J. has 24 years of experience and an excellent track record in the housewares industry. Her knowledge and understanding encompasses

market dynamics, channels of distribution, housewares consumers, and trends impacting the industry, and marketing

issues in the housewares industry.

Who Should Read This eBook

• This eBook is an introduction to the Connected Home market, written with housewares companies in mind.

• If you want to keep your finger on the pulse of this trend, this eBook will help you understand where the Connected Home market is today and where it is headed.

• If your company is trying to decide whether to enter the Connected Home market or add technology to your products to make them “smart”, this eBook will provide lessons into what

• The eBook looks at the Connected Home from the perspective of industry experts and consumers. It provides insight into what consumers think of eleven of today’s Connected Home products and smart appliances. Finally, this eBook provides guidelines to help companies decide whether to develop and introduce Connected Home products.

TABLE OF CONTENTS

3Chapter 1

THE CONNECTED HOME: The Industry Perspective

8Chapter 2

THE CONNECTED HOME: The Consumer Perspective

14Chapter 3

CONNECTED HOME PRODUCTS: The Winners & Losers

20Chapter 4

27Conclusion

CHAPTER ONE

THE CONNECTED HOME: Introduction

What is the Connected Home?There is no standard commonly accepted definition of the “Connected Home”.

Do a Google search on the definition of “Connected Home” and you will quickly discover that there doesn’t seem to be one commonly accepted definition of the term. It seems that there are as many definitions of “Connected Home” as there are industry experts. Here are just a few:

“A house that has been properly wired and designed to receive and distribute throughout the house a variety of music, video and data signals. Is also equipped to connect to services outside the home.” 1

“Devices and tools connected to each other in an automated way to save labor and effort in the home.” 2

“The connected home is about enabling devices to talk to each other”. 3

"The ideal connected home organizes, simplifies, and unites a consumer's content, entertainment, and communications into an easy-to-use and elegant solution.” 4

“The connected home is a place where all of your media is integrated around your identity, and can be accessed in a very easy way.” 4

"The ideal ‘connected home' is an entertainment experience enhanced by data and social context available over the internet.” 4

“A connected home aligns everything from computers, smartphones, TVs and set-top boxes to systems such as lighting, appliances and heating/air conditioning systems and makes them controllable through a single interface.” 4

1 http://www.customtechnologiesinc.com/glossary.htm2 http://readwrite.com/2013/11/01/home-sweet-connected-home#awesm=~oAq90FW8HAqKI43 http://www.connectedhomeworld.com/content/what-is-the-connected-home4 http://www.streamingmedia.com/Articles/Editorial/Featured-Articles/The-State-of-the-Connected-

Home-2012-81292.aspx

The Connected Home is finally -- finally -- becoming a real thing … or is it?

“The notion of "smart appliances" and "home automation" have been dominant themes at CES for years -- decades, even -- but they always seemed to be just over the horizon, a Jetsonsfantasy that would never come true. But technology has a funny way of catching up with fantasy. The Connected Home is finally -- finally -- becoming a real thing. And not just for gadget tinkerers and eggheads, either..”- CNET

”“

Is The Connected Home Finally Becoming a Real Thing?

Even industry experts can’t agree.

1 http://www.huffingtonpost.com/craig-barratt/connected-home_b_1223619.html2 http://readwrite.com/2013/11/01/home-sweet-connected-home#awesm=~oyeCftpgB2ps5I

Brian Proffitt, technology expert specializing in enterprise, cloud computing and big data with 23 years of journalism and publishing experience, believes that the connected home remains an “elusive ideal”.

“With the near-ubiquity of Internet access in the home and the onset of Internet-connected devices of all shapes and sizes, it seems a foregone conclusion that the connected home is right around the corner. But in reality, the connected home remains an elusive ideal, with no clear breakout hit present in our lives or even clear on the horizon.” 1

On the other hand, Craig Barratt, President of Qualcomm Atheros, the networking and connectivity subsidiary of Qualcomm, believes that not only is the connected home here, we are actually in the second phase of the Connected Home evolution.

“Until recently, the typical home might have had just one or two PCs connected to the Internet. Think of this as Connected Home 1.0. Today, that's evolved to include a rich multimedia experience and social networking across many more devices. This is your Connected Home 2.0. As people become increasingly sophisticated with their technology use and device consumption increases, there is a driving need to advance to seamless connectivity across all devices, beyond just entertainment. Within the next three to five years, I envision literally hundreds of devices in the home will be connected: multimedia, thermostats, light switches, security systems, irrigation systems, white goods (such as refrigerators and washing machines) and automobiles. All operated from your mobile phone or tablet. This will be your Connected Home 3.0, a key part of the so-called ‘Internet of Everything'.“ 2

What is Driving the Growth in the Connected Home Market?

Why, after decades of failed attempts, is the connected home closer finally becoming a reality than ever before?

According to Patrick Oliphant at ConnectedHomeWorld.com, new technologies that weren’t even envisioned a decade ago are changing the vision of what a connected home is.

“The vision of the connected home has been broadened to include the “internet of things”, a strange slogan you may say but this is what will define most of the technologies we use over the next decade and further. The internet of things simply put is seamlessly integrating technologies into our lives that are internet aware. Therefore, there will be no obstacles stopping the different technologies/devices from communicating with each other.” 1

In her January 2014 New York Times piece on the connected home, Jenna Worthamopined that Google’s acquisition of Nest was a signal that the Connected Home products market is not a passing fad.

“The concept of outfitting everyday objects with sensors and connecting them to the web, often called the Internet of Things, has been brewing for several years. But the announcement last week that Google was paying $3 billion to acquire Nest, a maker of Internet-connected home products, put a sort of Good Housekeeping seal of approval on this nascent market. Google is showing that the Internet of Things is not a passing fad. … It is a legitimate industry.” 2

Not only is it a legitimate industry, it could be a $40 billion industry within the next five to seven year, according to Wortham.

“Venture capitalists … have pushed close to $500 million into smart-connected products and companies since the beginning of 2012. The motivation behind all these companies is clear: the global market for connected home products could be as large as $40 billion in the next five to seven years, said Gene Munster, an analyst at Piper Jaffray.” 2

1 http://www.connectedhomeworld.com/content/what-is-the-connected-home2 http://www.nytimes.com/2014/01/20/technology/building-toward-the-home-of-tomorrow.html?_r=0

Companies want to get in on the ground floor of what could potentially be a $40 billion global market.

CHAPTER TWO

THE CONNECTED HOME: The Consumer Perspective

Industry experts agree that several hurdles stand in the way of widespread consumer adoption of Connected Home products.

Jenna Wortham believes that the industry faces several challenges.

“One challenge is that a connected home is expensive to set up. For now, at least, “smart” products cost several times more than their traditional counterparts. For example, the Nest smoke and carbon monoxide detector costs $129, while many typical detectors cost $40 or less. Nest has estimated that its $249 thermostat, its most popular product, is in less than 1 percent of households.

Many people have also shown a reluctance to add more apps and digital services to their lives. And many of the products already on the market do not work together seamlessly, because each parent company is vying to become the dominant service.

Then there is the data and information generated by many of the devices — lots and lots of information. Some users might find the flood of additional alerts and notifications overwhelming or difficult to understand.” 1

Melissa Behm of Mindsview Innovation believes that privacy is one the biggest issues companies in the Connected Home space must address. Behm was a panelist at the Internet of things educational seminar hosted by the International Housewares Association at the International Home + Housewares Show in March.

“Privacy is one of the biggest concerns among consumers. The theft of data and the risk that they might be opening themselves up to physical theft.”

Are Consumers Going to Buy Connected Home Products?

Several issues could negatively impact the market.

1 http://www.nytimes.com/2014/01/20/technology/building-toward-the-home-of-tomorrow.html?_r=0

Do Consumers Even Know What a Connected Home Is?

Early Adopters are aware of the term but opinions differ on what

A house that has a lot of appliances or things like a furnace, air conditioner, or alarm system connected to the owner through Wi Fi, Internet, etc.- Survey respondent

”“

Source: Feb. 2014 online survey conducted with Riedel Marketing Group’s proprietary HomeTrend Influentials Panel.

27% of respondents think of the Connected Home as devices that are “controlled by smartphone.”

27%

18%

14%

12%

10%

10%

7%

5%

0% 5% 10% 15% 20% 25% 30%

controlled by smartphone

other

remote access and control

connected to internet either iwired or wireless

connected by computer system/control panel

devices are connected to each other

controlling devices electronically

smart appliance

What is the first thought that comes to your mind when you hear the term "The Connected Home"?

Other: link to home, custom settings, a home that flows well together, how we'll live in the future, more efficient, energy saving, smart, not getting away from the home, hopes of efficiency, convenience, that it's a good idea but more for people who aren't home during the day and/or travel a lot; Convenient control of light, heat and alarm; portable electronic devices that you unplug at home and take elsewhere; the Nest products; there should be an app for that; technology; it sounds like a community of houses that are somehow connected to each other... Like a condo complex with its own restaurant, gym, daycare, post office and swimming pool that is shared by everyone; high tech interoperable functionality of different gadgets; innovative; interesting and safety.

20%

23%

57%

0% 10% 20% 30% 40% 50% 60%

Not interested

Neutral/indifferent

Interested

How interested are you in having a "Connected Home"?

Source: Feb. 2014 online survey conducted with Riedel Marketing Group’s proprietary HomeTrend Influentials Panel.

If I could monitor level of power use, turn off unnecessary appliances, turn on an appliance that would help me get a jump on a task... It would potentially save time, save power and to a degree add a level of safety to the home.

- Survey respondent ””

The answer is a resounding “yes”.

Are Consumers Interested In Having A Connected Home?

57% of respondents would be interested in having a "Connected Home”.

Source: Feb. 2014 online survey conducted with Riedel Marketing Group’s proprietary HomeTrend Influentials Panel.

Why Are Consumers Interested in Having a Connected Home?

To be able to control and monitor when away from home.

”29%

19%

17%

15%

15%

13%

13%

13%

4%

0% 5% 10% 15% 20% 25% 30% 35%

being able to control devices and appliances remotely

being able to check on things at home while away

other

energy efficiency/efficiency/save money

add a level of safety to the home/peace of mind/

would make life easier/simpler

convenience

like/enjoy technology

would save time

Why did you say you are interested in having a "Connected Home'?

I think being able to control the environment of one's home without being there would be a good way to save on heat or air conditioning. Being able to control an alarm system and see activity in the house from elsewhere could be comforting. And being able to turn on an oven, microwave, etc. from work so dinner is ready when one gets home would be useful.- Survey respondent

48% of the respondents who are interested in having a Connected Home would like to be able to control and/or monitor devices and

appliances remotely.

CHAPTER THREE

CONNECTED HOME PRODUCTS:The Winners and the Losers

What Connected Home Products Are Consumers Embracing?

Consumer research was conducted to find out.

American consumers are interested in having a “Connected Home”. But that does not necessarily mean that they are interested in the “Internet of Things” products that are on the market today.

To find out how interested consumers are in the Connected Home products that are on the market now, an online product concept test was conducted with Riedel Marketing Group’s HomeTrend Influentials Panel (HIP).

HomeTrend Influentials (HIPsters) are early adopters of new technologies. For example, 89% of HomeTrend Influentials own smart phones and 77% own an iPad or other tablet device. (In comparison, 56% of adult Americans own smart phones and 35% of Americans ages 16 and older own a tablet device.) Because they are early adopters of new technologies, they are more likely to be aware of what's going on in the connected home products market than the mainstream population. They are also more likely to be among the first to embrace new connected home products, as evidenced by their adoption of the Nest thermostat. 8% of HomeTrend Influentials own the Nest thermostat compared to less than 1% of total U.S. households.

Eleven Connected Home products were tested:

1. Belkin Crock-Pot WeMo Smart Slow Cooker2. Canary Smart Home Security Device3. DoorBot4. GE Wall Oven with Brillion Technology5. HUE Wireless Personal Lighting6. iKettle7. LG Smart Thinq™ Refrigerator8. NEST Learning Thermostat9. Revolv10. Roku Streaming Player11. WeMo Home Automation

How Was Purchase Interest Determined?By looking at how well each product rated on six dimensions of new product success.

Average rating of all products combined

% of respondents who would be

somewhat or very interested in buying

the product.

38%

49%

28%

53%

59%

66%

0%

10%

20%

30%

40%

50%

60%

70%

80%

PurchaseInterest

BuzzWorthiness

Need Likeablity Uniqueness Believability

HUE 11 product average rating

% of respondents who are somewhat or absolutely sure that this product

would solve a problem or meet a

need for them.

% of respondents who would be

somewhat or very likely to recommend the product to their family and friends

% of respondents who say they like or

love the product.

% of respondents who say the product

is somewhat or totally unique.

% of respondents who say that the

description of what the product does is very or completely

believable

What Connected Home Products Will Make It and Which Won’t?

The Winners and the Losers

EXTREMELYLIKELY

Products are grouped based on purchase interest, ranging from the clearcut winners that have a high likelihood of marketplace success to the clearcut losers that have a low likelihood of marketplace success

Source: Feb. 2014 online survey conducted with Riedel Marketing Group’s proprietary HomeTrend Influentials Panel.

VERYLIKELY

SOMEWHAT LIKELY

NOT LIKELY

Likelihood of Marketplace Success

66%

53%

45% 46%43%

39% 38%

32%

25% 24%

9%

0%

10%

20%

30%

40%

50%

60%

70%

EXTREMELY HIGH LIKELIHOOD OF SUCCESS

NEST Learning Thermostat

Canary Smart Home Security Device

NEST Learning Thermostat

The Nest Learning Thermostat learns what temperatures you like, turns itself down when you're away and can be controlled

from anywhere over Wi-Fi.

https://nest.com/thermostat/life-with-nest-thermostat/

I want one! I love the idea of a thermostat that is easy to program, one that you can control remotely, and one that can send usage reports.- Survey respondent ”

NEST Learning ThermostatWHY IT HAS AN EXTREMELY HIGH LIKELIHOOD OF MARKETPLACE SUCCESS • It is already selling well. Morgan Stanley analyst Scott Devitt estimates that Nest

was selling 100,000 thermostats per month, as of Jan. 2014. 1

• 8% of HomeTrend Influentials have already purchased a Nest thermostat. Another 25% say they want one.

• Strongly positive initial reaction from HomeTrend Influentials: 38% said they loved it, thought it was great, and/or wanted it.

• Very strong ratings on purchase interest and need: 66% of respondents would be interested in purchasing the NEST and 67% think that it would need a need for them.

• Very strong ratings on all six measurements: purchase interest, need, buzz worthiness, likeability, uniqueness, and believability in the absolute and in comparison to the average rating of all products combined.

• Delivers benefits that consumers want from Connected Home products: Saves energy and money, enables them to control their thermostat remotely and check on home temperatures at home while away.

66%

73%67%

80%74%

80%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

PurchaseInterest

BuzzWorthiness

Need Likeablity Uniqueness Believability

NEST Average rating, all products combined

1 http://www.businessinsider.com/nest-revenue-2014-1

Source: Feb. 2014 online survey conducted with Riedel Marketing Group’s proprietary HomeTrend Influentials Panel.

Canary Smart Home Security Device

Canary's HD video camera and safety sensors track everything from motion, temperature and air quality to vibration, sound, and activity to help keep you, your family and your belongings safe. Through Canary’s secure mobile app you can check in on your home from virtually anywhere.

http://canary.is/

I LOVE this idea and product. Where can I get one? :) The idea is fantastic and if it works like it says it will, it seems extremely easy, but incredibly useful for a variety of situations and just all the time. I love that there is a live video feed. And I also love just how simple and easy it is.- Survey respondent

Canary Smart Home Security DeviceWHY IT HAS AN EXTREMELY HIGH LIKELIHOOD OF MARKETPLACE

SUCCESS Strengths• Strongly positive initial reaction from HomeTrend Influentials: When asked

what their initial reaction was, 40% said they loved it, thought it was great, and/or wanted it.

• 53% of respondents would be interested in purchasing the Canary and 52% think that it would need a need for them.

• Very strong ratings on five of the six measurements: purchase interest, buzz worthiness, need, likeability, and believability, both in the absolute and in comparison to the average rating of all products combined.

• Delivers benefits that consumers want from Connected Home products: Enables them to monitor their home while away, adds a level of safety to their home, and gives them peace of mind

Weaknesses• When asked what their initial reaction was, 18% were lukewarm about the

product.

53%57%

52%

64%

55%

71%

0%

10%

20%

30%

40%

50%

60%

70%

80%

PurchaseInterest

BuzzWorthiness

Need Likeablity Uniqueness Believability

Canary 11 product average rating

VERY HIGH LIKELIHOOD OF SUCCESS

DoorBot: the doorbell for smartphones

WeMo Home Automation

Roku Streaming Player

Roku Streaming Player

Roku is a little box that makes it easy to enjoy the hottest movies, TV shows, music, games and more on your TV by streaming it directly from the Internet.

http://www.roku.com/meet-roku

It sounds like something I would like. Seems to have a lot of movie and TV selections-even more than possible Netflix or Blockbuster etc.- Survey respondent

”“

Roku Streaming PlayerWHY IT HAS A VERY HIGH LIKELIHOOD OF MARKETPLACE SUCCESS

Strengths• It already has a proven track record: Roku has sold in excess of 5 million of its

streaming Internet media players since its launch back in 2008 and has become the favorite device among 37% of U.S. households with streaming players, according to researcher Park Associates. 1

• 15% of HomeTrend Influentials have already purchased a Roku Streaming Player. Another 10% say they want one.

• A sizeable percent of respondents would be interested in purchasing Roku (46%).• Above average ratings on purchase interest, buzz worthiness, likeability, and

believability.Weaknesses• Only 32% of respondents think that Roku would meet a need for them.• Lukewarm initial reaction. While 12% said they liked it or thought it was cool, no

respondents said they loved it, thought it was great, and/or wanted it. 28% were lukewarm about the product.

• Below average rating on uniqueness: 27% thought that it was very similar to Netflix, Apple TV, smart TV’s, and/or Chromecast.

45%

53%

32%

61%

39%

82%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

PurchaseInterest

BuzzWorthiness

Need Likeablity Uniqueness Believability

Roku 11 product average rating1 http://www.businessweek.com/articles/2013-09-25/rokus-survival-takes-more-than-beating-apple-tv

DoorBot: the doorbell for smartphones

Doorbot is the Wi-Fi enabled, video doorbell that allows you to see and talk with visitors through your smartphone from anywhere in the world.

http://www.getdoorbot.com/

Awesome! Love this whole concept and idea completely. Love that I can see and talk with who's at my door and the option to lock and unlock remotely is great!- Survey respondent

”“

DoorBot: the doorbell for smartphones

WHY IT HAS A VERY HIGH LIKELIHOOD OF MARKETPLACE SUCCESS Strengths• A sizeable percent of respondents would be interested in purchasing the DoorBot

(46%) and think that it would meet a need for them (42%).• When asked what their initial reaction was, 34% of respondents said they loved

it, thought it was great, and/or wanted it. • Above average ratings on all six measurements: purchase interest, buzz

worthiness, need, likeability, uniqueness, and believability.• Delivers benefits that consumers want from Connected Home products: Enables

them to monitor their home while away, adds a level of safety to their home, and gives them peace of mind

Weaknesses• When asked what their initial reaction was, 18% of respondents of respondents

were initially lukewarm about the product. 13% had a negative initial reaction. 21% said they had no need for the product or were not interested.

46%

57%

42%

59%

64%

75%

0%

10%

20%

30%

40%

50%

60%

70%

80%

PurchaseInterest

BuzzWorthiness

Need Likeablity Uniqueness Believability

DoorBot 11 product average rating

WeMo Home Automation

WeMo is a family of simple, ingenious products that make life easier, simpler, better. WeMo uses your Wi-Fi network and mobile internet to control your home electronics right from your smartphone. WeMo also works with ifTTT, connecting your home electronics to a whole world of online apps.

http://www.belkin.com/us/Products/home-automation/c/wemo-home-automation/

I like that this seems to be more affordable and easier to set up than some of the other systems. I also like that you only have to replace a switch for the lights and not all of the bulbs. I like the idea of the motion sensor, but I don't like that it is plugged in and has a wire so it has to sit somewhere instead of being mounted somewhere wirelessly.- Survey respondent

WeMo Home Automation

WHY IT HAS A VERY HIGH LIKELIHOOD OF MARKETPLACE SUCCESS Strengths• A sizeable percent of respondents would be interested in purchasing

the WeMo (43%) and think that it would meet a need for them (43%).• When asked what their initial reaction was, 16% of respondents said

they loved it, thought it was great, and/or wanted it. • Above average ratings on the two most important measurements

purchase interest and need as well as believability.Weaknesses• When asked what their initial reaction was, 36% of respondents were

lukewarm about the product. 12% had a negative initial reaction. 12% said they had no need for the product or were not interested. 11% thought it was too expensive.

43% 45%43%

49%51%

72%

0%

10%

20%

30%

40%

50%

60%

70%

80%

PurchaseInterest

BuzzWorthiness

Need Likeablity Uniqueness Believability

WeMo 11 product average rating

SOMEWHAT HIGH LIKELIHOOD OF SUCCESS

LG Smart Thinq™ Refrigerator

HUE Personal Wireless Lighting

Revolve

LG SMART THINQ™ REFRIGERATOR

http://www.lg.com/us/refrigerators/lg-LFX31995ST-french-3-door-refrigerator

A large capacity, luxury refrigerator with French doors and a bottom freezer drawer. The 8" WI-FI LCD Screen serves as both a control panel for the refrigerator as well as an information hub and potential family organization center. The refrigerator's various apps include a food manager app for refrigerator inventory, a recipe app, a grocery app, memo app, calendar, photo album, REF Manager for monitoring temperature and other settings, and LG's Smart Saving App. Most of the apps interact with the corresponding smartphone app, including the ability to transmit shopping lists based actual fridge inventory.

I will never need a refrigerator like this. The tablet is just something extra to break. What kind of person sits there and manually enters what groceries they buy instead of just loading them into the fridge and opening the door to see what is available?- Survey respondent

LG SMART THINQ™ REFRIGERATOR

WHY IT HAS A SOMEWHAT HIGH LIKELIHOOD OF MARKETPLACE SUCCESS

Strengths:• When asked if they wanted the product, When asked if they wanted the

product, 15% of HomeTrend Influentials said they want this refrigerator.• When asked what their initial reaction was, 24% said they loved it, or thought it

was great. • Slightly above average ratings on buzz worthiness, uniqueness, likeability, and

believability. • Average ratings on purchase interest and need.Weaknesses• When asked what their initial reaction was, 15% of respondents were

lukewarm about the product. 19% liked the product but had reservations or questions. 28% had a negative initial reaction. 20% thought it was too expensive.

• A number of respondents specifically noted that they did not see a need for the touchscreen feature.

39%

51%

35%

54% 55%

65%

0%

10%

20%

30%

40%

50%

60%

70%

80%

PurchaseInterest

BuzzWorthiness

Need Likeablity Uniqueness Believability

LG Smart Thinq™ Refrigerator 11 product average rating

HUE Personal Wireless Lighting

Philips's Hue Light Bulb combines energy-efficiency, wide-spectrum LED lighting and remote control capabilities via iOS app The Philips Hue Wireless Light Bulb promises full control of its functions over Wi-Fi, including per-light brightness and color settings, remote operation and geofencing capabilities. In addition, Philips includes a powerful GUI-driven app to custom tune lighting in nearly any environment.

http://meethue.com/

I like that my household ambiance can be controlled without my getting up to change things. I also like that it can be programmed to my needs, such as lights going on before I get home.- Survey respondent ”

HUE Personal Wireless Lighting

WHY IT HAS A SOMEWHAT HIGH LIKELIHOOD OF MARKETPLACE SUCCESS

Strengths• 1% of HomeTrend Influentials have already purchased HUE. Another 12% of

respondents said they want it.• 17% of respondents said they loved it, thought it was great, and/or wanted it.• Slightly above average ratings on buzz worthiness, likeability, and uniqueness. Weaknesses• When asked what their initial reaction was, 27% of respondents were

lukewarm about the product. 20% have no need for the product or are not interested. 11% thought it was too expensive.

• The HUE received an average rating on the most important measure of purchase interest and a below average rating on need.

38%

49%

28%

53%59%

66%

0%

10%

20%

30%

40%

50%

60%

70%

80%

PurchaseInterest

BuzzWorthiness

Need Likeablity Uniqueness Believability

HUE 11 product average rating

Revolve

Not all connected gadgets you can put in your house speak the same language. Some speak Zigbee, some speak Z-Wave, others speak Insteon, and a few only know Wi-Fi. And if they don’t speak the same language, they can’t work together. Revolv is a hub that unifies all your different smart devices, and gives you access to their controls all from one place. Boasting seven different radios, it can speak to pretty much any smart device in the biz, and can also link them together.

https://revolv.com/

The simplicity it very appealing! One app technology for the home is great for managing the "app clutter“.- Survey respondent ”

RevolvWHY IT HAS A SOMEWHAT HIGH LIKELIHOOD OF MARKETPLACE

SUCCESS Strengths• When asked what their initial reaction was, 15% said they loved it,

thought it was great, and/or wanted it.Weaknesses• When asked what their initial reaction was, 29% of respondents were

lukewarm about the product. 17% have no need for the product or are not interested.

• Mediocre below average ratings on the two most important measures of need and purchase interest.

• Significantly below average ratings on six measurements.

32%

39%

31%

44%

50%54%

0%

10%

20%

30%

40%

50%

60%

70%

80%

PurchaseInterest

BuzzWorthiness

Need Likeablity Uniqueness Believability

Revolv 11 product average rating

LOW LIKELIHOOD OF SUCCESS

Crock-pot Wemo Smart Slow Cooker

GE Wall Oven With Brillion™ Technology

IKettle

CROCK-POT WEMO SMART SLOW COOKER

The WeMo technology in the Crock-Pot WeMo Smart Slow Cooker allows the user to control and monitor cooking times and temperatures via a smart phone.

This is a device that I would use all the time. I use my crock-pot several times a month and at time run home during lunch to adjust the temp.- Survey respondent

”“

Hmmm. I do not get it. Why would one purchase this when there is automatic setting on the slow cooker already? It's a waste of money.- Survey respondent

”“

CROCK-POT WEMO SMART SLOW COOKER

WHY IT HAS A LOW LIKELIHOOD OF MARKETPLACE SUCCESS Strengths• When asked if they wanted the product, 14% of respondents said yes.• When asked what their initial reaction was, 19% of respondents said they loved it, thought it

was great, and/or wanted it. • The slow cooker scored higher on buzz worthiness than it did on likeability, need, or purchase

interest. This indicates that there is a “coolness” factor to the product that might make some people want to tell their friends and family about it.

Weaknesses• When asked what their initial reaction was, 18% were lukewarm about the product. 15% had

a negative initial reaction. 24% have no need for the product or are not interested. 26% thought it was too expensive. 10% already have something that works just fine.

• The slow cooker received mediocre ratings on the two most important measures of need and purchase interest.

• Significantly below average ratings on all of the six measurements except uniqueness.• Higher buzz worthiness did not translate to purchase interest. People might talk about the

product but they would not buy it for themselves. • Respondents did not feel that the ability to interact with the Crock-Pot Smart Slow Cooker

using their smart phone was important to them. • The appliance does not deliver a benefit that consumers don’t think they can get from a dumb

version of the appliance.

25%

37%

19%

27%

50%

58%

0%

10%

20%

30%

40%

50%

60%

70%

80%

PurchaseInterest

BuzzWorthiness

Need Likeablity Uniqueness Believability

Belkin Crock-Pot WeMo Smart Slow Cooker 11 product average rating

GE WALL OVEN WITH BRILLION™ TECHNOLOGY

The GE Brillion™ technology allows owners to interact with their appliances using their smart phone. Owners of Brillion-enabled wall oven can use the GE Brillion app on their smart phone to preheat the oven, change oven temperatures, set cooking modes and timers, and even set meat probe settings. Users can also access oven settings such as temperature offsets, auto shut-off, clock, and Sabbath mode.

http://www.geappliances.com/connected-home-smart-appliances/

It looks nice and I'm sure it cooks well, but my oven is not something I need or want to control with my phone. I do not want it running when I'm not home anyway.”- Survey respondent ”

GE WALL OVEN WITH BRILLION™ TECHNOLOGY

WHY IT HAS A LOW LIKELIHOOD OF MARKETPLACE SUCCESS Strengths• When asked if they wanted the product, 13% of respondents said yes.• When asked what their initial reaction was, 23% said they loved it, thought it

was great, and/or wanted it. Weaknesses• When asked what their initial reaction was, 18% were lukewarm about the

product. 24% had a negative initial reaction. 25% have no need for the product or are not interested.

• The oven received mediocre ratings on the two most important measures of need and purchase interest.

• Significantly below average ratings on all of the six measurements except believability.

• Respondents did not feel that the ability to interact with the GE Wall Oven using their smart phone was important to them. In fact, a number of respondents were rather derisive of the feature.

24%28% 26%

34%

43%

64%

0%

10%

20%

30%

40%

50%

60%

70%

80%

PurchaseInterest

BuzzWorthiness

Need Likeablity Uniqueness Believability

GE Wall Oven 11 product average rating

IKETTLE

The iKettle is an electric tea kettle that comes with Wi-Fi and its own dedicated smartphone app. The smartphone app allows the user to instantly control the kettle from anywhere. The app for it features a Wake mode that’s a wakeup call that prompts you if you’d like to turn on the kettle as soon as you get up so that it’s ready in the kitchen when you want it. And once it’s boiled, the app will then ask if you want to keep it warm for a while longer.

http://www.firebox.com/product/6068/iKettle

I'm not a huge fan of single purpose gadgets. I use a coffee maker more than I use a kettle and boiling water for tea isn't difficult or all that time-consuming.- Survey respondent

”“

IKETTLEWHY IT HAS A LOW LIKELIHOOD OF MARKETPLACE SUCCESS

Strengths• When asked what their initial reaction was, 5% said they loved it, thought it

was great, and/or wanted it. Weaknesses• When asked what their initial reaction was, 9% were lukewarm about the

product. 20% had a negative initial reaction. 36% have no need for the product or are not interested. 21% thought it was too expensive. 11% said they already had an appliance that worked perfectly well for heating water.

• The iKettle received extremely low ratings on the two most important measures of need and purchase interest.

• Significantly below average ratings on all of the six measurements except believability.

• A number of respondents noted that they were not interested in being able to control their tea kettle using an app on their smartphone.

• The iKettle does not deliver a benefit that consumers don’t think they can get from a dumb appliance.

• Price is four times what the average electric tea kettle costs.

9%

19%

8%14%

38%

64%

0%

10%

20%

30%

40%

50%

60%

70%

80%

PurchaseInterest

BuzzWorthiness

Need Likeablity Uniqueness Believability

iKettle 11 product average rating

CHAPTER THREE

CONNECTED HOME PRODUCTS: The Reasons the Winners are Winners

Why Was Purchase Interest So High for the Gold Medal Winners and So Low for the Losers?

The Gold Medal Winners received high ratings on need.

While the NEST Thermostat and the Canary received high ratings on all six measurements, the most important rating is need. 67% of respondents thought the NEST would meet a need or solve a problem for them. 52% respondents thought the Canary would meet a need or solve a problem for them.

66%73% 67%

80% 74% 80%

0%10%20%30%40%50%60%70%80%90%

NEST

Purchase Interest Buzz Worthiness Need

Likeablity Uniqueness Believability

53% 57% 52%64%

55%

71%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Canary

Purchase Interest Buzz Worthiness Need

Likeablity Uniqueness Believability

Why Was Purchase Interest So High for the Gold Medal Winners and So Low for the Losers?

The Gold Medal Winners meet important needs/deliver compelling benefits.

Quite clearly, respondents think that the NEST Thermostat and the Canary solve a problem or meet a need for them. The NEST helps the owner save energy and money, control their heating and cooling system remotely, and check on home temperatures while away., thus saving money. The Canary enables the user to monitor their home while away, adds a level of safety and security to the home, and gives them peace of mind.

In contrast, the majority of respondents did not feel that the GE Wall Oven with Brillion technology, Crock-Pot WeMo Smart Slow Cooker, or the iKettle don’t solve a problem or meet a need for them. The smart technology enables users to control the appliances remotely but most respondents are not interested in operating these appliances remotely. In the case of the GE Oven and the iKettle, respondents would not want the appliance running if they were not home because they are afraid of a house fire. Perhaps if the manufacturers had positioned the benefit of the smart technology as peace of mind, purchase interest might have been higher. Since people are concerned about forgetting to turn appliances off and causing a house fire, a compelling benefit might be that the owner would not have to run back into the house to check to see if they turned the appliance off.

In the case of the Crock-Pot, respondents figure that a slow cooker is supposed to be set-it-and-forget-it. They don’t perceive that the smart technology does anything that a programmable slow cooker doesn’t do.

Just because you can connect something to the Internet doesn't mean you should."- Andrew Couts ”

Why is it so important that products meet needs?

Because need and purchase interest are highly correlated.

If consumers don’t think the product will meet a need for them, it is highly unlikely that they will be interested in purchasing it. For example, 67% of respondents were sure that the NEST would solve a problem or meet a need for them; 66% said they would be interested in purchasing the product. In contrast, only 8% of respondents were sure that the iKettle would solve a problem or meet a need for them; only 9% said they would be interested in purchasing the product.

67%

52%

26%

19%

8%

66%

53%

24%

25%

9%

0% 10% 20% 30% 40% 50% 60% 70% 80%

NEST

Canary

GE Wall Oven

Belkin Crock-Pot WeMo Smart Slow Cooker

iKettle

Comparison of Purchase Interest and Need Ratings

Purchase Interest Need

?/

title

text

title

Just because you can connect something to the Internet doesn't mean you should."- Andrew Couts

“”

Caption and Photo Credit: Use this space to provide credit to the original photo or graphic creator and provide context on its meaning.

This is a quote you can use to further highlight a point or message.

- Author

“”

Title

subtitle

Intro copy

Title

subtitle

Intro copy

quote“”

Title

subtitle

Intro copy

quote“”

Is The Connected Home Finally Becoming a Real Thing?

… Other Industry Experts Say “No”

The concept of outfitting everyday objects with sensors and connecting them to the web, often called the Internet of Things, has been brewing for several years.- Jenna Wortham, New York Times

“The notion of "smart appliances" and "home automation" have been dominant themes at CES for years -- decades, even -- but they always seemed to be just over the horizon, a Jetsonsfantasy that would never come true. But technology has a funny way of catching up with fantasy. The Connected Home is finally -- finally -- becoming a real thing. And not just for gadget tinkerers and eggheads, either..”- CNET

”“

CALL-TO-ACTION TITLE

A subheader that describes the next step CTA your content is providing, such as a free trial, product demo, coupon, and so on.

SIGN UP FOR FREE