If you develop products, you know how to keep it “real” with
customers. It’s simple — you get to know them. You learn what
they need to solve (whether they know it yet or not) and you learn the value
they put on solving it. Then you provide them with a solution that best solves
the problem.
Let’s apply this approach to two of the hottest emerging areas in IoT:
smart homes and smart cities. On the surface, these two markets might appear
to be very similar but they’re really not.
Look at these comparisons.
Decked-Out Smart Home
Target customers: Affluent homeowners
The math: With connected smart home device starting at $50
and going up to several hundred dollars per device, and a typical large home
requiring 50 or more smart devices to achieve connected critical mass, the
incremental cost to connect is several thousand dollars.
Considerations:
- 50 or more connected devices in a home
- A discretionary, incremental spend of several thousand dollars
- Financial payback isn’t the primary motivator
- Prestige factor dictates artistic end user design elements
-
Usability, especially during setup is critical to avoid product returns
- Smart app a key part of the system
- Security is important to the family, but not the population at large
- A physically separate gateway isn’t a customer requirement
-
Customer doesn’t care about connection technologies as long as it
works
-
Nobody wants their network to inadvertently join their neighbor’s
Must-have: The homeowner needs to be able to set up their
initial connected devices in a few hours and have the ability to control the
system from the start via their smart app. (Bonus: their technical prowess
impresses their family and friends when they show off the system at their next
party.) If the homeowner can’t get the system successfully setup in an
afternoon, the components might just end up at the returned product bin of the
local store.
Edgy, Trendy Smart City
Target customers: City and local government agencies, public
and private local utilities and quasi government/private sector consortiums
The math: The number of potential connected devices is in the
millions per system and demonstrated financial payback is a must. The cost for
a city to upgrade to being “smart” is in the millions of dollars
and the time for a city or metro area to become fully connected can take
years.
Typicals:
- One to 10 million+ connected devices per system
- Demonstrated ROI calculations need to be met
- Trained professionals to do installation, management of system
-
Security is critical for the safety/well being of the entire metro area
- Physically separate gateways mounted outdoors are required
-
Smart apps probably part of the system, but focus is on security/utility,
not artistic design
- Effective mass scaling is critical for connection technologies
- Many devices will need to be battery operated
-
System needs to be robust against multiple perturbations (power outages,
lightning strikes, etc.)
- System construction will take months/years
- Over the air upgrades need to be carefully choreographed and executed
Must-have: The biggest technical challenges with smart cities
all relate to scale and robustness. One million is a big number. You
can’t have a million of anything fail in a system that must be robust.
Even the seemingly simple task of a software upgrade or a battery change
becomes a major issue if n = 1,000,000. In fact, if a technician could upgrade
the firmware or change the battery on one device every five minutes, it would
take them 208 working years to service one million devices!
Keeping it real with the customers in mind
While smart homes and smart cities are both rapidly emerging IoT application
areas, they are as different as they are the same. From a product requirements
perspective, we treat smart homes and smart cities as two unique
applications. However, from a technical perspective, many of the underlying
technologies are the same or share similar roots.
For smart homes, our customers tend to be leading device/system OEMs putting
an amazing amount of focus on product design and technical innovation such as
gesture recognition. We have partnered with them to provide the
price/performance/functionality of embedded devices combined with our ability
to help them get to market fast with highly usable software and tools.
For smart cities, with are working with a mix of system OEMs and system
integrators on a variety of pilot and initial phase projects. Due to the major
scope, costs and need to get it right the first time, the industry is moving
at a fast but controlled pace. Key technologies driving these projects are
low-power, massively-connectable microcontrollers, flexible topology gateway
platforms for device management, security and over the air upgrade
capabilities.
Which would you rather design?