Yves Caseau, EVP, New Products & Innovation

October 15th, 2013V0.1

Building the Digital Home Ecosystem & Delivering Value to the Customer

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FROM TELECOMMUNICATION TO DIGITAL LIFE

The telecommunication business model

is not sustainable for small operators

Revenues are declining,

telecommunications are a commodity

Costs are stable at best,

because of data usage explosion

The smartphone has become the

remote control for our digital life

Everyone has a smartphone

Touch screens are user-friendly

« Smart » is more than a remote control

Context (e.g. presence detection)

Learning / Coaching

System (global) vision

“Smart objects talk to one another ” (O. Ezratty)

3 / 11Smart Homes – Amsterdam – Yves CASEAU – October 2013

DIGITAL LIFE WORKS BETTER WITH AN OPERATOR

Simplify

Plugging and maintaining

the home network is still a hard job

Maintaining connected objects

(power reset, Wifi reset, …)

Digital Swiss-Army

Knife:

• Wifi

• DLNA, …

CARE Agent

• FW download

• Dynamic monitoring Proactive

• reboot

• data collection

• remote tests

System of agents

• check status/

connectivity

• 3G alerts !

Any device

with open OS

• localized (cf. SONOS)

May invoke CARE

agent for diagnosis &

repair

Source:IBM

Assist

Last resort : self-assistance is preferred

Still, many digital life experience would be easier if assistance were available

System thinking & instrumenting is required → Build a “smart home network”

Explain, Educate

Most of our customers do not realize

the potential of what is available today:

cloud services, connected devices,

and the combination thereof

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FROM SERVICE TO BUSINESS MODEL INNOVATION

Platform Model

Attract innovation from outside players

Build service assets (hardware & software)

that others will leverage

Build API (interfaces)

From « i-mode »™ to « h-mode »

Showcase other brands !

Portal strategy : B-domo example

Build usage before value

How to ?

Open software – Web culture

« Product culture » - value comes from

incremental sales of accessories

“Home Appstore” model

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SMART HOME : MORE COMFORT, CONTROL AND

EFFICIENCY THROUGH NEW DIGITAL SERVICES

Houses are becoming « smart » by adding connected objects and services

Home automation(comfort, simplicity,efficience)

Communication & Media Service operators

Energy ManagementSecurity

E-Health…

Open ecosystem

Customers pick their

own products and

service brands

Surveillance

Others

Temperature setup

& monitoring

Plug & appliances

control

Smoke detectors

Air quality …

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STEP-BY-STEP CONSTRUCTION OF

DIGITAL HOME SERVICES ECOSYSTEM

Connected Devices & Sensors

Home Network: objects

communicate with one another

HSM: interoperability

through a common

language

Home

AppStore

Rules

« Calm Computing »

Invisible

System learns about the user,

not the opposite !

Switch-off at any time

The « Smart Home » vision will be deployed gradually through a maturity model

« Maslow Pyramid »

structure:each step is required for the

next one

No « killer app », a « long tail »

of comfort apps

Home Service Model (Home as a computing platform)

Smartphone is the key enabler :

control at your fingertips

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SMART HOMES TAKE CARE OF YOU …

Stories Context Web of Things

Operator’s added

value

Dependent Care

Home Surveillance

Home Monitoring

Home Automation

Energy controlEnergy coaching

System & Care

Scenarios (Life

Moments), not

capabilities

Product culture

Peace of Mind

More Free Time,

Less Effort

Stay in touch

Spend Less

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A CONFEDERATION OF OPEN ECOSYSTEMS

Few apps,

no traction

Entertainment

Automation

Security

?

Legitimate

Ecosystem

ambition

System of

screens: Home

User Interface !

Missed

opportunites

« iHome »

AppStore

Complete Home as a Computing Platform

Great Apps !

Confederation

firewall

protection

Enriched

automation

Enriched

Control

Ho

me

se

rvic

e b

us

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Open ecosystem requires standardized architecture, interfaces and software components

THE HEART OF THE SMART HOME IS A HOME SERVER

Moore’s Law

consequence: Home

Gateway becomes

Home Server

Plateform

Validation / Provisioning

HSM

I need an open, standard

and “fun” SDK

SDK

App

Developer

OSGI

Bbox

Digital Home Service

Domains

Communication

Energy Management

Media Security Health Automation

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« Zero clicks services »

Based on « context » (presence, localization, sensors, …)

Based on anticipation/forecast (schedule, Web services, ...)

Based on machine learning (Big Data)

From “Touch Rules” (Home Automation scenarios)

… To “Context Rules” that leverage “intent knowledge”

Better than “If This Then That”

Time x Location x What x Intent → WebBot x Alert / Action

Sensors, usage logs Schedule, Todo lists, … Platform model

YOUR SMART HOME KNOWS ABOUT YOU

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CONCLUSION

Digital Homes start with connected objects

Strive for repetitive usage and organic growth

Viral adoption

Operator’s role is to build a platform

No killer apps, since market is segmented

(long tail) → Appstore required

Home Service Model

Calm Digital Homes

Invisible

Learn from the user, no training required

May be controlled or disabled with one click