These slides summarize a business model for smart homes, as part of a course taught by Jeff Funk on business models

1. Chew Guang Wei HT093271W
Ho Seow Yan HT093116E
Koh Chung Wei, Nicholas A0076868H
Lin Jiaji A0076843W
Ng Tzer Liang HT093280E
Wee Chong Liang, Justin HT093290B
MT 5016 : Business Models for Hi-Tech Products

2. Smart Home Features
Target Market, Customer Segment and Needs
Value Proposition
Value Network & Revenue Stream
Vertical Integration Chain & Industry Architecture
Strategic Control
Conclusion
MT 5016 : Business Models for Hi-Tech Products

3. Smart entertainment hub
Motion sensors
Security
Control tablet to
Health monitoring control
audio/video
systems
Automatic
energy Cameras to track
home
management interior/exterior
in the house
MT 5016 : Business Models for Hi-Tech Products

4. • Where: Singapore
• Who: New Home Owners
– Mostly between 20s – 30s years old
– Of marriageable age
– < $10,000 household income, dual income earning
– Most likely to buy first homes from SG government
– Most likely to stay in new eco‐town/estates
MT 5016 : Business Models for Hi-Tech Products

5. Gen Y
“Most connected generation”
• Born between 1980s‐1990s
• Willing to pay for digital lifestyle
• Enjoys using tech gadgets
• Spends 1/3 of life on the internet
• 1st generation to grow up with
computers at home
• Email, SMS and instant messaging as
the preferred communication
MT 5016 : Business Models for Hi-Tech Products

6. 5 4 3 2 1
Energy Management Services
Energy Saving Services
Eco‐ friendly Products – Green Living
Entertainment “Fun Factor”
Social activities with friends
Internet activities (Video streaming,
Gaming, e‐shopping etc)
Smart Technology
“Smart” Appliances
Connectivity – Information Accessibility
Home Monitoring
*5 is of most importance to the customer and 1 is of least importance to the customer
MT 5016 : Business Models for Hi-Tech Products

7. IMPT EMS Entertainment Smart
Controls
Energy Management Services
Energy Saving Services 4
Eco‐ friendly Products – Green Living 3
Entertainment “Fun Factor”
Social activities with friends 5
Internet activities (Video streaming, 5
Gaming, e‐shopping etc)
Smart Features
“Smart” Appliances 5
Connectivity – Information Accessibility 5
Home Monitoring 3
MT 5016 : Business Models for Hi-Tech Products

8. MT 5016 : Business Models for Hi-Tech Products

9. Entertainment Dimmer Dimmer
• Neighbourhood
Dimmer
networking
• Social TV: Chat
with viewers
• Conferencing
• Interactive
gaming
Home Monitoring
• Smart on board
intelligent appliances
• Round the clock CCTV
monitoring on kids at
home
• Monitoring of pets
Smart Appliances
Smart Home Control
Smartphone Access
• eMetering, measures, collects
• Mobile access and
data, analyses usage pattern.
monitoring
MT 5016 : Business Models for Hi-Tech Products

10. 1) Integrative Solution
Entertainment
Social TV
Interactive gaming
Ease of access to content
MT 5016 : Business Models for Hi-Tech Products

11. 1) Integrative Solution
Smart Home Control
Intelligent energy management
One controller for all systems
Home monitoring
MT 5016 : Business Models for Hi-Tech Products

12. 2) Affordability
Government Support
Policy (EMA Intelligent Energy System)
Infrastructure (IDA OpenNet, HDB Eco‐
town)
NEC in‐house Expertise
Dedicated electronics provider
Existing technology
MT 5016 : Business Models for Hi-Tech Products

13. Revenue Stream Subscription Fees
Scope of activities
NEC Content
Leasing Platform & NEC Box
Government Fee
Partners
Maintenance
Customers
Home
Security
Subscription
Profit Fees
Sharing NEC
Services
Platform
3rd party Subscription
Services Fees
MT 5016 : Business Models for Hi-Tech Products

14. Developing Punggol to be the first eco‐town will serve as a “living
laboratory” for green living environment
Signed Research Collaboration Agreement (RCA) with Solar Energy
Research Institute of Singapore (SERIS)
Spearheaded pilot project, Intelligent Energy System (IES) to modernize
electricity transmission around a smart grid
Phase 1 (2010 – 2012) focuses on infrastructure for smart grids. Phase 2
(2012 ‐ 2015) will focus on smart grid applications
Launched Connected Homes Program in 2003 to be in line with IDA’s
10‐year masterplan, iN2015.
Launched Next Gen NBN aimed to deliver high speed broadband of up
to 1Gps
MT 5016 : Business Models for Hi-Tech Products

15. Strong Partnerships
• Key benefits are:
– Create awareness of available NEC products and solutions
– Establish links with authorities
MT 5016 : Business Models for Hi-Tech Products

16. • Collaborations with government
agencies to raise awareness i.e.
Infocomm Experience Center by IDA
• Involved in town planning as technology
expert
• Engage respective town councils to use
technology for pilot projects such as
upgrading of Shopping Centers and
Home upgrading projects
• Showcase ideas at international forums
MT 5016 : Business Models for Hi-Tech Products

17. Vendors Application Customers
OEMs Developers
OSGi
Components &
Assembly Open
Proprietary
Source
Integrative Solution
Hardware Software
NEC
Content Partners
NEC Smart Home Service e.g. ISPs
Gateway
Government
MT 5016 : Business Models for Hi-Tech Products

18. NEC Partners
Components
Product Design
Assembly
Operating System
Applications
Sales &
Distributions
Services
Maintenance
MT 5016 : Business Models for Hi-Tech Products

19. • ISO 9000: Quality Management
• ISO14000: Environmental
Management
• ISO 50001: Energy Management
• Open Services Gateway initiative
(OSGi) Framework
MT 5016 : Business Models for Hi-Tech Products

20. DEVELOPERS BUSINESS
• Reduces complexity • Modular and dynamic model
– Modular architecture to reduces development and
operational costs
• Building systems from in
house and off‐the‐shelf • Integrates multiple devices
modules in a networked environment
MT 5016 : Business Models for Hi-Tech Products

21. IP Management
• “foundation of NEC’s group business
competitiveness and stability”
• IP protection of core technologies
• Patent Portfolio and licensing
– NEC currently has 68,000 patents worldwide and
supports Open Innovation
– Continue to source for patents related to smart
homes worldwide
– License technology to expand business opportunities
and reduce business risks
MT 5016 : Business Models for Hi-Tech Products

22. R & D
• Y2017 Vision: NEC launched its long term R&D based
on 3 visions – Symbiosis, Ecology & Dependable by
Y2017
MT 5016 : Business Models for Hi-Tech Products

23. Appropriability
• Small local smart home industry
– Only a few start up companies such as Anacle
Systems, Cytech technologies, etc.
• Collaboration with companies to create an
integral modular industry architecture,
where NEC can determine:
– Communication protocol between systems
– Acceptable standards for smart homes
• Work with acquired local companies
that are familiar with local regulations
MT 5016 : Business Models for Hi-Tech Products

24. Creating other barriers of entry
• High Switching Costs:
– Min 5‐yrs occupancy of HDB houses
– High switching cost due to the built‐up
content and services provided
• Economies of Scale:
– NEC can provide smart home technology at
a fraction of the costs
– New firms can’t keep cost down efficiently
• Network Effects:
– New towns, such as Punggol eco‐town, will
have estimated 18,000 homes for NEC
smart home gateway
MT 5016 : Business Models for Hi-Tech Products

25. • NEC has the core competencies and resources to be
one of the pioneers in smart home industry in
Singapore
• Singapore has the necessary infrastructure to
support the smart home technologies
• Recommend that NEC uses Singapore as a
“springboard” into other Asia Pacific countries like
Hong Kong, Taiwan and eventually India and China
MT 5016 : Business Models for Hi-Tech Products