Outlook for the Smart Connected Home in Western Europe

Transcription

1 Outlook for the Smart Connected Home in Western Europe Parks Associates Webcast Sponsored by: Presented by:

2 Audio Recording Select Microsoft Office Live Meeting Replay to view the webcast in its entirety Outlook for the Smart Connected Home in Western Europe Click here to View Recording Recording URL: Recording ID: 7DQSNP Attendee Key: 8`4z!W2 Alternate Replay Viewing: 2

3 Outlook for the Smart Connected Home in Western Europe Vassilis Seferidis Director, European Business Development Samsung Jean C. Kiessling Head of Business Development, Connected Home Deutsche Telekom AG Dick Seger CEO Securitas Direct Verisure 3

4 Outlook for the Smart Connected Home in Western Europe Agenda Why now? Panelist profile Adoption of smart home products and services U.S. experience Consumer perspective Manufacturer perspective Key success factors 4

5 Market Drivers and Barriers Market Drivers Adoption of Smart Phones, Broadband Major Players Entering Market Growing Ecosystem of Products Communication Standards Cloud Capabilities Market Barriers Lack of Consumer Awareness No Concise Value Proposition Initial Cost of Systems Recurring Fees Interoperability Integration of New Products 5

6 Percent of Households Why Now? 80% 78% 76% 74% 72% 70% 68% 66% 64% 62% 60% Broadband Adoption North America Western Europe

7 Percent of Households Why Now? 100% 95% 90% 85% 80% 75% 70% 65% 60% 55% 50% Broadband Adoption Denmark Switzerland Netherlands United Kingdom Belgium Norway France Germany Finland Austria 7

8 Smart Phone Users (Millions) Why Now? 400 Smart Phone Users Western Europe North America

9 % Specifying Connected Product Ownership Home Control Product Ownership (Q4/12) "Q7055. Does your primary residence have a thermostat, garage door, lights, flood (humidity) detector, security camera, or door locks that can be monitored or controlled from a computer or a smartphone?" 14% 12% 10% 8% 6% 4% 2% (Among BB HHs) 0% France (n=652, ±3.84%) UK (n=653, ±3.84%) Germany (n=666, ±3.80%) Belgium (n=653, ±3.84%) 9

10 Outlook for the Smart Connected Home in Western Europe Vassilis Seferidis Director, European Business Development Samsung Jean C. Kiessling Head of Business Development, Connected Home Deutsche Telekom AG Dick Seger CEO Securitas Direct Verisure 10

11 Outlook for the Smart Connected Home in Western Europe Panelist Profile 1. Should we look at the U.S. market for guidance to understand what to expect in Europe, what steps to take? 2. Is the consumer in Europe ready to purchase new connected products and interactive service? 3. Can manufacturers and service providers afford to take a wait-and-see approach to connected products and the Internet of Things? 11

12 Adoption of Connected Products and Services Panelist Perspectives Sponsored by: Presented by:

13 % of Broadband Houseolds Adoption of Smart Home Products and Services 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Smart TV Penetration in Western Europe

14 Adoption of Smart Home Products and Services Smart TVs are now commonplace in Western Europe. How do you expect this success will translate into other consumer products? Vassilis Seferidis Director, European Business Development Samsung 14

15 More Smart Home 15

16 SAMSUNG Convergence for a Smarter Life 16

17 Adoption of Smart Home Products and Services Deutsche Telekom estimates that 50% of homes in Germany will be smart by What do you mean by smart and what is driving that estimate? Jean C. Kiessling Head of Business Development, Connected Home Deutsche Telekom AG 17

18 DIFFERENT INDUSTRIES ENGAGE IN SMART HOME Home automation Energy Heating, Climate Trade Home Appliances Photovoltaics Window / Door Telecommunication Consumer Electronics Awning / Sun Shading Health, AAL Security, Monitoring Key Drivers: Differentiation Customer Loyalty Growth Advanced Remote Maintenance Cost Efficiency Customer Demand June 11,

19 Adoption of Smart Home Products and Services What will make the market for interactive service in Europe take off? Dick Seger CEO Securitas Direct Verisure 19

20 Securitas Direct Verisure - a short introduction 6,500 Employees and a large partners organisation 339 Portfolio EBITDA, million Net Sales 758 million Full Year Countries of which 9 European and 3 in Latin America 1.5 million customers Europe s leading provider of full-service safety and security solutions to homes and families Owned by Bain Capital and Hellman & Friedman Securitas Direct Group 2013

21 Our vision... It is a human right to feel safe and secure [Movie] Securitas Direct Group 2013

22 What will make the market take off? The technology is there The infrastructure is there The products get connected The consumer is ready Now it is up to us three Securitas Direct Group 2013

23 Relevance of the North American Experience Panelist Perspectives Sponsored by: Presented by:

24 U.S. Market for Home Controls Professional Monitoring Fee Based Self Monitoring Security Self Monitoring 24

25 Relevance of the North American Experience Should we look at the U.S. market for guidance to understand what to expect in Europe, what steps to take? Dick Seger CEO Securitas Direct Verisure 25

26 Europe vs. USA connectbild The offer The sales pitch The go-to-market model Customer delight Securitas Direct Group 2013

27 Relevance of the North American Experience Qivicon has taken a different approach than any of the U.S. telecoms. Please describe your approach to the market and why it is different than your U.S. counterparts? Jean C. Kiessling Head of Business Development, Connected Home Deutsche Telekom AG 27

28 OUR APPROACH Single offerings Product offerings based on the QIVICON platform Heating control Home Appliances Shadowing Systems Mood Management

29 BUSINESS MODEL QIVICON the platform for the Smart Home End-Customer Partner Solution (HW / SW) Partner-Ecosystem Status: >20 Services / HW Partners & > 10 Development Partners b2c Relationship b2b Relationship Platform Usage Portal incl. Shop Installation Assistant Platform SDK/ Backend Home Base Basic Control June 11,

30 Relevance of the North American Experience Are there significant differences in the North American market and the Western European market? Vassilis Seferidis Director, European Business Development Samsung 30

31 European & Global Coordination in Key Areas... Home Network Current technologies do not meet all market requirements Smart Devices Common framework for device abstraction Data Exchange Within the home and with the outside world Innovation Enable differentiated products Ecosystem Allow development of products ecosystems 31

32 Consumer Research Sponsored by: Presented by:

33 % Ranked As Top 3 Features Consumer Perspective 50% 40% Top Ranked Connected Home Features (Q4/12) "Q7070. Please rank the three capabilities that you find important to you. The ability to use a computer, mobile phone, or tablet to..." (Among BB HHs Surveyed in Specified Country) UK (n=653, ±3.83%) France (n=652, ±3.84%) Germany (n=666, ±3.8%) Belgium (n=653, ±3.83%) 30% 20% 10% 0% Receive smoke / fire alerts Receive carbon monoxide / gas leak alerts Receive water leak alerts Receive alerts when doors or windows in your home are opened Monitor your home's electricity usage Have appliances automatically adjust their settings to minimize electricity usage 33

34 % Ranked As Top 3 Features Consumer Perspective Intend to Purchase Home Control Devices (Q4/12) "Q7081. How likely are you to purchase any the following if the product can be monitored and managed from inside your home or while you were away from home using a computer, mobile phone, or tablet? (Among BB HHs Surveyed in Specified Country) 30% 25% UK (n=653, ±3.83%) France (n=652, ±3.84%) Germany (n=666, ±3.8%) Belgium (n=653, ±3.83%) 20% 15% 10% 5% 0% Smoke & Fire Detector Carbon Monoxide & Gas Leak Detector Emergency Call-button Flood & Water Leak Detector Motion Sensor Door/Window Sensor Appliance Lighting Switch Control Module

35 % Specifying "Interest" (i.e., Rating 6/7) Consumer Perspective Preferred Type of Home Monitoring Service Providers (Q4/12) "Q7090. Would you trust the following companies to offer the home monitoring equipment and services described earlier?" (Among All BB HHs Surveyed in Specified Country) 35% 30% 25% UK (n=653, ±3.83%) France (n=652, ±3.84%) Germany (n=666, ±3.8%) Belgium (n=653, ±3.83%) 20% 15% 10% 5% 0% A home security An electric utility An independent A broadband system company company technical support service provider company An electronics retailer A cable/satellite TV company A mobile phone service provider 35

36 Consumer Perspective What categories of connected products are taking off in Western Europe? Vassilis Seferidis Director, European Business Development Samsung 36

37 Smart Home Services & Products INTERNET GATEWAY 37

38 Consumer Perspective How does connectivity change the consumer experience? Jean C. Kiessling Head of Business Development, Connected Home Deutsche Telekom AG 38

39 THE BENEFITS FOR THE END CUSTOMER Great choice of attractive and innovative solutions Strong brands Sensors & actors: everything compatible Excellent price/performance ratio Future proof and sustainable Security - encryption of personal data and storage on servers in Germany June 11,

40 Consumer Perspective How are connected security products being received in the market? Dick Seger CEO Securitas Direct Verisure 41

41 Consumer perspective so far Securitas Direct Group 2013

42 Manufacturer Perspective Panelist Perspectives Sponsored by: Presented by:

43 Individual Products Adding Connectivity Differentiation Expand functionality Enhance user experience Operational Efficiency Automate warranty administration Identify field issues Minimize service costs Develop consumer insights Expand Relationship with Consumer Meet growing consumer expectations Manage touch points Create loyalty programs Impact sales channels New Revenue New applications Sale of consumables, accessories Delivery of targeted promotions Providing advice, recommendations Service Fees for Connectivity Remote monitoring Advanced analytics Equipment performance monitoring Remote diagnostics Service Fees for Energy Management Advanced control features to limit demand Optimize in dynamic pricing environments Critical peak programs 44

44 Manufacturer Perspective What investments is Samsung making in connected products? Vassilis Seferidis Director, European Business Development Samsung 45

45 Samsung s Convergence Offering 46

46 Manufacturer Perspective The Qivicon platform has a growing list of OEM partners. Why are manufacturers using the Qivicon platform? Jean C. Kiessling Head of Business Development, Connected Home Deutsche Telekom AG 47

47 THE BENEFITS FOR THE PLATFORM PARTNERS Possibility to differentiate through own products, pricing, communication, sales- and installation channels Open, standardized and flexible technical solution Not limited to Deutsche Telekom or its customers Lower costs due to economies of scale Opportunity to shape the market together with other strong partners Deutsche Telekom as a competent and reliable partner driver for international standards stands for security and privacy June 11,

48 Manufacturer Perspective How will connectivity impact products and services in the security industry? Dick Seger CEO Securitas Direct Verisure 49

49 Manufacturer s perspective Having lunch or being somebody else s lunch Securitas Direct Group 2013

50 Key Success Factors Panelist Perspectives Sponsored by: Presented by:

51 Key Success Factors What are the key success factors for any player in this emerging market? Dick Seger CEO Securitas Direct Verisure 52

52 True benefits Key success factors Partnerships = foundation smart home Connected products Quality, dataintegrity and security Multi service vendor platform Securitas Direct Group 2013

53 Key Success Factors How will retailers benefit from this shift to connected products and services? Jean C. Kiessling Head of Business Development, Connected Home Deutsche Telekom AG 54

54 THE BENEFITS FOR RETAIL PARTNERS First mover in growing market Connected home Additional revenue opportunities to existing business Collaborate with new partners Sell multiple consumer propositions of different brands and price ranges based on one platform/technology Opportunity for retail to extend value chain: e.g. Additional opportunity for Retail Partner to sell retail partner branded products (and increase customer retention) Deutsche Telekom as a reliable partner June 11,

55 Key Success Factors How are you positioning your company in the connected home market? Dick Seger CEO Securitas Direct Verisure 57

56 People who are crazy enough to think they can change the world, are the ones who do Securitas Direct Group 2013

57 Questions? Sponsored by: Presented by:

58 Purpose Strategies for the European Connected Home is a consumer research study that surveys consumers throughout Europe on three key connected-home topics: home controls, tech support, and TV/video services. KEY BENEFITS Profiles of current consumers and future buyers Current CE landscape in the home Country-to-country comparisons in adoption, attitudes, and preferences Key price points and most attractive features for connected home solutions Topics TV/Video Services Key features of multiscreen and advanced TV services Content discovery habit and monetization strategies Segmentation of premium service subscribers Analysis of cord cutters, cord shavers, and cord nevers Effective tactics to attract and retain subscribers for premium video services Adoption and usage of TV Everywhere and multiscreen services Current CE adoption in the home Consumer Tech Support Services Segmentation of likely buyers/subscribers of premium tech support services Top features and preferred sources of premium tech support services and warranty services Home network: desired applications and common problems Adoption of emerging devices and interest in tech support for emerging devices Current lifecycle of products and opportunities for tech support Consumer process of evaluating a service offering Role of cloud services in application support and backup services Home Controls Segmentation indentifying home controls enthusiasts and future buyers/subscribers Attitudes and adoption: controls, security, home management, and connected appliances Impact of connected products on the home management market The most important functionality in a home controls platform Association of connected home services with specific service providers Key price points most attractive to consumers Cultural differences in value propositions from country to country 60

59 Conference Topics CONNECTIONS Europe offers high-level analysis and consumer research, networking opportunities, and information on emerging connected home services and technologies. HOSTED BY Submit to Speak at DEADLINE July 15 ACCESS AND ENTERTAINMENT THE FUTURE for the Set-top Box TOMORROW S Challenges in Content Costs and Licensing DISCOVERY and Personalization for TV Services COMPETING for the OTT Consumer TV APPS and the New Customer Experience MULTISCREEN Services & TV Anywhere CONSUMER Tech Support in a Multiscreen Home HOME CONTROLS AND MANAGEMENT EVOLUTION of Connected Appliances INTEROPERABILITY in the Home Controls Market INTEGRATION of Security and Energy into Service Provider Offerings ENGAGING Consumers: Connected Home Business Models THE ROLE of Cloud-Based Services and Big Data in Home Management Advisory Sponsors Break Sponsors Contact us today! info@parksassociates.com PARKS ASSOCIATES 1

60 Outlook for the Smart Connected Home in Western Europe Vassilis Seferidis Director, European Business Development Samsung Jean C. Kiessling Head of Business Development, Connected Home Deutsche Telekom AG Dick Seger CEO Securitas Direct Verisure 62

61 Thank You. Tom Kerber Director of Home Systems and Energy Parks Associates N. Dallas Parkway, Suite 575 Dallas, Texas Office: Fax: PARKS ASSOCIATES

62 Thank You. Tom Kerber Director of Home Systems and Energy Parks Associates N. Dallas Parkway, Suite 575 Dallas, Texas Office: Fax: PARKS ASSOCIATES