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Smart Homes as a Service

Autor:   •  November 15, 2016  •  Business Plan  •  789 Words (4 Pages)  •  850 Views

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Smart Homes as a Service

A case study on Smart Homes in the Indian Market

Praveen Kumar Orvakanti

praveen.orvakanti@gmail.com

+91 7259715007

Problem Statement

Though the idea of a smart home is no longer alien for the Indian market, it is yet to really take off. At its current state, the market is still stuck at the early-adopter phase and making the move to a mass-market phase would be quite the task. Some of the key challenges hampering the smart home adoption include, but not limited to, technology adoption curve, low demand, high infrastructure costs and lack of consumer awareness. The biggest of the challenges is the fact that the consumers have to deal with a wide variety of standards with respect to devices, software, apps etc to build a smart home.

In this case study, I propose to solve the challenges facing Smart Home adoption in India by building an effective partner network with existing market leaders and create a closed eco-system that can be delivered as a SHAAS (Smart Homes as a Service). More specifically, our aim would be, to be the new Uber/Airbnb of the Smart Homes market. The proposed service will bring different devices together and provide capabilities such as the ability to communicate among the devices, recognize patterns and be controlled from a single application.

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The Business Model Canvas – Smart Homes                

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Key Partners

  • Hardware Partners: CISCO/Intel/Schneider/Bosch
  • Software Partners: Google/Samsung/Apple
  • Platform partners: Amazon
  • Real Estate Partners: Prestige/DLF/Sobha
  • Strategic partnership with the Government agencies

Key Activities

  • Installation & Set up
  • Multi-Device integration
  • Marketing
  • Data security
  • Data Management and Integration
  • Licensing and regulatory approvals

Value Proposition

  • Convenience/Comfort
  • Security
  • Energy efficiency
  • Home monitoring and orchestration
  • Live notifications
  • Predictive analytics
  • Centralized information management through Cloud  
  • Affordable

Customer Relationships

  • Customer complaints/behavior analysis
  • Integrated Recommendation Engine
  • 24/7 Customer care
  • Loyalty plans
  • Onsite support and Training
  • Effective use of Social media/Television/Press/Canopies etc.
  • Surveys

Customer Segments

  • Mid-Income Families
  • High-Income Families
  • Gated Communities / Apartments
  • Enterprises
  • New Home Owners
  • Existing customer base from the partners
  • Single/Working mothers
  • Elderly people or Households with elderly people

Key Resources

  • Cloud Infrastructure
  • Hardware Availability and Affordability
  • High availability
  • Sales and Marketing personnel
  • Partner Network

Channels

  • Ad Campaigns
  • Television/Radio
  • Social Channels
  • Company website
  • Workshops
  • SMS/Email marketing
  • Direct marketing

Cost Structure

  • Marketing and Advertising costs
  • Infrastructure cost
  • Creating and maintaining the Partner network
  • Implementing an effective CRM system

Revenue Streams

  • Prepaid or Subscription fee – varying feature bundles such as Basic, Smart, Premium etc.
  • Feature based costs/prices: Lighting, Climate control, Security, Entertainment etc.
  • Profit sharing with partners
  • Dynamic pricing
  • Pay-per-use
  • Redeemable Loyalty/Bonus points

Assumptions

Some of the key assumptions made for this case study are as follows:

  • Consumers want a smart home service and not a bunch of devices.
  • Market leaders in various aspects of Smart Homes are willing to work together to provide a bundled service.
  • By bringing the existing operators together, we would be able to reduce costs and increase the efficiency of the service at the same time.
  • Considering the host of operators existing in the market, it is possible to create a single standard system to smart homes and consolidate their offerings under one application.

Limitations

The Smart Home industry currently has different technologies such as Bluetooth, Wi-Fi, Z-Wave etc. The operators are also introducing new devices at a fast pace. Some of the limitations could be:

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