flash insight: which frameworks can dominate the smart home market?
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Flash Insight: Which frameworks can dominate the Smart
Home Market? July 2016
2
Market Forces – Overview
To succeed in the fast growing and maturing market, smart home providers define their contribution based on functional, commercial, and technical success factors.
Smart Home
Market
The market in its
current condition and
development
Suppliers
Suppliers for frame-
works, communication
standards, ecosystems
Products
Platforms, devices
and services on the
market
Technologies
Technological trends
with relevance to the
market
Customers
Focus on customer
segments and their
needs
Functional Success Factors:
Solve an existing problem and
support appealing use cases
Provide unique selling proposition
Provide usability
Integrate a wide range of other
devices and services
Commercial Success Factors:
Minimize end customer costs
Minimize time to market
Technological Success Factors:
Definition of make or buy split
based on core competences
Selection of one or several
complementing open standards
Flash Insight Smart Home Frameworks | July 2016
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In a growing smart home market product manufactures face a jungle of evolving technologies, which can be divided into three building blocks. Three Building Blocks of Smart Home Technologies
Ben
efi
t M
ajo
r p
layers
Weave HaLow
6LoWPAN
Open Communication
Standard2
Enable the communication between
local gateway and the end devices
(actuators, sensors, and switches
Overcome one of the major
impediment for smart home
Standard for the exchange of data
between devices in the home Defi
-
nit
ion
Powered by
Product with
ecosystem1
Facilitates market entrance on the
base of a running system
Benefit from sales channels and
integration provided by ecosystems
Running product with integration
possibilities or white label options
Brillo/Weave
Amazon IoT Smart-Home
Framework1
Decrease time-2-market by re-using
the software of the framework,,
Participate in further developments of
framework and of innovations with
limited effort
Software that can be used to develop
own products
1) List contains major providers, but is not necessarily complete 2) Proprietary communication protocols like Homatic-IP or Insteon not listed
Flash Insight Smart Home Frameworks | July 2016
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Smart home provider have to define a make or buy strategy and to choose between different building blocks to support the development of their products and services. Options
Smart home
provider
Framework
Framework
Framework
Framework
Framework
Open
communication
standard
Open
communication
standard
Open
communication
standard
Open
communication
standard
Open
communication
standard
Product with
ecosystem
Product with
ecosystem
Product with
ecosystem
Product with
ecosystem
Product with
ecosystem
Functional
USP
Functional
USP
Functional
USP
Functional
USP
Functional
USP
Development of all
components by the
manufacturer
Result: faster development,
functional integration
possible, communication
integration impossible
Communication integration
possible, no functional
integration
Integration possible, fast
implementation
Communication integration
depends on ecosystem,
easily addressable
customers
High effort, not
advisable
Not advisable due
to integration
limitations
Possible option for
device providers
Option for all
market participants
Option for device
and service
providers
Building blocks
Developed by product
manufacturer
Used by product
manufacturer
Indirectly used by
product manufacturer Flash Insight Smart Home Frameworks | July 2016
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Frameworks have a stronger strategic impact for smart home providers than communication standards and ecosystems. Strategic Comparison
De
gre
e o
f p
os
sib
le in
flu
en
ce
fo
r th
e
sm
art
ho
me
pro
vid
ers
Functional Coverage
high
low
low high
Communication
Standards Frameworks
Products with
ecosystems
Communication Standards:
Enabler for market success but limited impact
Frameworks
Maximal impact due to functional range and
influence smart home providers
Products with ecosystems
Limited freedom to define market-changing
products
Flash Insight Smart Home Frameworks | July 2016
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The components of a smart home system provide the distributed functionality and communicate using different media and protocols. Smart Home System Components
Client: Access
point for end user Configuration
Control
UI
Manual management
Cellular communication
Smart Home Devices:
Actuators, Sensors,
Switches Measurement, sensing
Execution of actions
Limited logic
Cloud: Remote
Intelligence Smart logic, automated actions
Normed semantics
Authentication, authorization
Remote access
System management
Gateway: Enabler of
local communication Physical connection to end
devices
Smart logic, automated
actions
Normed semantics
Communication
within HAN1 Physical to application layers
Semantics
On
sit
e
Re
mo
te
1) HAN: Home Area Network Flash Insight Smart Home Frameworks | July 2016
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The frameworks have different targets; some support the whole customer-to-customer process, others concentrate on specific process steps. Frameworks: Analysis Overview
Smart Home
Devices Communication Cloud Gateway Client
Smart Home System Components
Fu
ll-s
tac
k
pro
vid
er
Se
lec
tive
pro
vid
er
Flash Insight Smart Home Frameworks | July 2016
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To analyze frameworks, they can be categorized by different kinds of deliverables for the customer-to-customer process that needs to be supported. Framework deliverables
Smart Home
Devices Communication Cloud Gateway Client
Smart Home System Components
De
live
rab
les
integrated development environment (IDE) or IDE plugins IDE
e.g. client modules, libraries for gateways and sensors/actuators Software
environment that can execute my code for clients, gateway or cloud Runtime
Environment
software as a service, e.g. cloud, database etc. SaaS
hardware e. g. smartphones, gateways, … Hardware
Documentation e. g. hardware specification, communication specification, object specification, device
and function abstraction Standards
Flash Insight Smart Home Frameworks | July 2016
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Among the full stack providers, Homekit and Brillo/Weave have the highest number of deliverables. Number of Deliverables per Process and Framework
Smart Home
Devices Communication Cloud Gateway Client
Smart Home System Components
Example:
Qivicon provides 2 of 6
possible deliverables1) for
gateways
The 6 core deliverables of the frameworks are: 1. standards, 2. software, 3. run time
environment, 4. SaaS, 5. hardware, 6. integrated development environment.
Note:
A high number of deliverables means
higher support
reduced flexibility
for smart home providers. The optimal number of
deliverables depends on the positioning of the smart
home provider
Flash Insight Smart Home Frameworks | July 2016
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The HomeKit framework places emphasis on the support of the client; the support of the communication and devices is restricted to documentation and software. Detail Analysis: HomeKit
Smart Home
Devices Communication Cloud Gateway Client
Smart Home System Components
De
live
rab
les
IDE
Software
Runtime
Environment
SaaS
Hardware
Standards Documentation
of API
HomeKit framework
within iOS
iOS on iPhone,
iPad, App.-Store
iPhone, iPad,
Apple Watch, …
XCode, HomeKit
Acc. Simulator
Common Data
Base for each Home
iPhone, iPad,
Apple TV 3rd. Gen
Technical
Documentation
Documentation for
MFi1 devices
HomeKit
Framework
1) MFi Made for iPhone/iPad/iPod Flash Insight Smart Home Frameworks | July 2016
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The providers of selective frameworks start from their core competencies and rely on partners to support the whole process chain. Number of Deliverables per Process and Framework
Smart Home
Devices Communication Cloud Gateway Client
Smart Home System Components
The 6 core deliverables of the frameworks are: 1. standards, 2. software, 3. run time
environment, 4. SaaS, 5. hardware, 6. integrated development environment. Flash Insight Smart Home Frameworks | July 2016
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The AllJoyn framework provides a flexible support in form of standards and software, covering almost all areas from the client to the device. Detail Analysis: AllJoyn
Smart Home
Devices Communication Cloud Gateway Client
Smart Home System Components
De
live
rab
les
IDE
Software
Runtime
Environment
SaaS
Hardware
Standards Documentation
of API
Connection of clients
with AllJoyn Network
AllJoyn Thin
Core Library
Documentation
of API
AllJoyn
Router Library
Documentation
of Std.-Library
AllJoyn comm.
Bus
Documentation
of AllJoyn Bus
Flash Insight Smart Home Frameworks | July 2016
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Frameworks focus on software for gateways, clients and backend functionalities provided as SaaS. Number of Frameworks Providing Deliverables for each Process Step
Smart Home
Devices Communication Cloud Gateway Client
Smart Home System Components
De
live
rab
les
IDE
Software
Runtime
Environment
SaaS
Hardware
Standards
Decision matrix for smart
home providers:
Which deliverables can be
procured from different
frameworks?
Which limit the choice of
framework if they not
developed?
Example:
2 frameworks
provide a runtime
environment for
gateways
Flash Insight Smart Home Frameworks | July 2016
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Frameworks are essential for new providers of smart home systems; service providers should be flexible in regard to the supported frameworks. Recommendations for Market Players
Implications
Recommend-
ation for action
Usage of frameworks reduces time to market and
development costs
Selection of suitable framework depends on:
Requirements derived from make/buy split, core
competences, integration requirements
Capabilities of frameworks: supported
communication standards in HAN, cloud
services, openness of framework
Support capacities, e.g. developer community
Smart Home Services Providers
New business opportunities for service providers:
Growing market
Innovative new products and ecosystems
Services and data will be basis of many business
models.
Frameworks allow smart home services
(insurance, shopping support)
Frameworks can be enhanced by added value
services (installation, customer support)
Use framework from the start; migration is
expensive and takes a long time
Contribute to a open source system to bundle
a joint force of developers against big players.
Create USP, such as privacy by design,
services, integration options
Partner with framework providers to enable a
complete process support
Partner with companies using a common
framework to reduce development effort
Increase flexibility: Offer required services for a
maximal range of systems supported by
framework
Flash Insight Smart Home Frameworks | July 2016
Providers of Actuators/Sensors, Gateways,
or Ecosystems
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Frameworks will be increasingly important for smart home providers in the smart home market. Key Take-Aways
1
Frameworks have a high impact on marketing launch and profitability The selection of a suitable framework as a basis for B2C products determines to a high degree the success of the products.
Therefore, frameworks have an indirect, but very high reach in the market and influence the market much more than B2C
products, platforms with ecosystems, or even communication standards. The more products use frameworks, the more they
will become a commodity and required for market success.
2
Frameworks are in a competitive situation The frameworks have different approaches to the market. Currently it is not clear which approach will prevail. Taking
other market segments as example, it can be expected, that there will be two to three survivors. The key success factors
are an open architecture and a high degree of implemented components e. g. bindings to wireless communication
standards. The frameworks that enable a B2C product provider to launch innovative products with minimal time to
market, will have the best chances to dominate the market.
3 New and traditional market players must react to frameworks New market players can choose from a set of frameworks. Established products therefore face an increased competition
as the new players can enter the market faster and with less costs. Service providers can profit from the situation, as
frameworks enable new business models due to the increased market dynamics.
Flash Insight Smart Home Frameworks | July 2016
16
Christian John Senior Expert at Mücke, Sturm & Company
Contact details:
c.john@muecke-sturm.de
+49 151 58243362
More about Mücke, Sturm & Company:
www.muecke-sturm.de
Mücke, Sturm & Company would like to get in touch with you to support in the evaluation of the frameworks and their impact on your business.
Headoffice Munich
Theresienhöhe 12
80339 München
T +49 89 461399 0
F +49 89 461399 777
Office Hamburg
Brooktorkai 20
20457 Hamburg Roland Schmitt-Hartmann Project Manager at Mücke, Sturm & Company
Contact details:
r.schmitt-hartmann@muecke-sturm.de
+49 151 58243379
Flash Insight Smart Home Frameworks | July 2016
17
Copyright and Sources
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Distribution is only permitted without any changes or omissions –
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MÜCKE, STURM & COMPANY and correct citation of sources.
The herein published texts and graphics were used by MÜCKE,
STURM & COMPANY in the context of a presentation; they
themselves do not represent the presentation in its entirety.
All mentioned company names, logos, brands, brand symbols and
other copyrighted material are the sole properties of the respective
company; they are only used for illustrative purposes.
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Slide #1 (Cover):
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Sources
Flash Insight Smart Home Frameworks | July 2016
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