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YOUR NEW PRODUCT IS ALREADY OLD
ABOUT RWE
8m in Germany, 4m in the UK, 2m in Holland
Customers
Around 80 people in the Innovation Hub
Employees
Operating energy retail or distribution in 11 countries, with generation presence in several more
Geographies
23m 65k
Slow to Start – Impossible to Stop
Product ZeroIn 1990, before there were any
web pages, there was a connected toaster – followed by many more
experiments that didn’t have commercial applications Is this a Thing?
In 1999, as part of the RFID boom, the phrase ‘Internet of Things’ is
coined for the first time
The Standards Wars (ongoing)Across domains – energy,
telecoms, manufacturing, we have lost at least a decade in
committee considering which radio or application protocol is the
most appropriate
Jam Today??It now seems there is a market, there are customers and we can finally start selling Connected
products
Today’s Smart Home Market
It is 26 years since that first connected toaster – why aren’t we all living smarter lives at home?
We are still attending conferences talking about when our market will materialise….
What is Missing?
HERO to ZERO
10 years ago, Smart Watches were still science fiction.
Today, the Apple Watch – easily the most appealing smart watch to the general public – is regarded as a disappointment by an informed audience.
Apple have only sold 10m units and most customers are underwhelmed.
It isn’t magical enough, it is slow and the battery life isn’t practical yet - and it is less than 40 years since Space Invaders was a global phenomenon - but what problem is the Apple Watch trying to solve?
SPY to SAINT
The tech reviewers aren’t always right – they didn’t think that consumers would accept a not-so-covert channel to order more stuff from Amazon. We’d be concerned about snooping, and we would feel awkward talking to a machine….
But it ticks the right boxes;• natural interface – watch a child use one vs. a smart home app• one step install to share the WiFi password• not a one trick pony – music, jokes, stories, shopping, smart home • interoperable – new services and integrations each week• the clever bit is portable – Alexa isn’t tied down• plus, it is fun
• other home assistants are coming – Google, Apple, Sears
Today’s PERFECT Smart Home Product
Self Install & Never TouchEthernet ports and WiFi passwords are for geeks – just make it work. And if it breaks more than once – in the bin, we’ll get the newer better cheaper one
‘Magical’ InterfaceWe want to talk to our tech, or wave at it. We also want to be Tony Stark and liberate ourselves from the tyranny of apps, chimping and batteries that just die
Unhackable & PrivateWe don’t make good passwords, we
won’t use 2 factor authentication – just make it better, or I wouldn’t trust myself
to have it in my home.
Properly ‘Smart’Radio does not make a fridge smart – it
needs to learn about our homes and habits. It should also update itself with good new features without me needing
to do anything
Beautiful
Fully Interoperable
Open Source
GATEWAY TOOBSOLESCENCE
Your Smart Home gateway isn’t cutting it anymore. Unless you’re a speaker and virtual assistant, or streaming 4K content or enabling massively multiplayer gaming – you’re a waste of an Ethernet socket and frankly, energy to make and operate.
Pretty or functional, costly or cheap, the first generation of smart home gateways have had their day.
This domain is already transforming into the service layer it should have been from the start – embedded into other devices that have more permission to exist in the home.
The Enemies Are At The Gate
Natural Interfaces‘Magic’ Radios
BlockchainAI
The emergence of the Internet of Things and the Connected Home means they are now genuine opportunity spaces where clever technologies can find useful applications.
Customer expectation is now that technology is child’s play, does magical things and is practically disposable.
How slow, clunky and generally underwhelming does any 5 year old piece of tech in your home feel today?
Today’s cutting edge is next week’s dull blade – the unwritten covenant in technology purchasing, but customers expect today’s products to keep up at least.
MAGIC RADIOSFor pennies a month, with a battery life matching product life, you can now have simple connected sensors that don’t need a gateway or signal boosters. Sigfox smart home gateways are already available.
Sigfox and LoRa networks are here and will connect everything that doesn’t need lots of bandwidth – but they will generate enormous amounts of data from• Metering (heat, water, energy)• Presence sensing• Appliance monitoring• Leak detection• State detection or changes
Data = value = opportunity
INTELLIGENT VALUE CREATIONThe explosion of data doesn’t have to go to an enterprise cloud to become valuable.
Smart Contracts built on the blockchain can create value transactions within a smart home that generate revenue;• Demand response• Frequency response• Intelligent generation/storage optimisation• Pay As You Go appliance models• Remote boiler monitoring can become a remote
service model where plumbers bid for remedial work on an open ledger platform
These use cases are being built as we speak – how can we sell a product or service when customers could use a self-financing one operating for theirbenefit on an open platform powered by choice?
The New Normal
Unlocking Value in DataAI and the smart contracts on open ledgers
will allow for business models that drive exponential adoption
Stateless InterfacesNot just on a phone, not just on the web, not just voice - this can be on the TV, it can be in your bathroom mirror, it can react to the preference of the individual user and the service being delivered
Transparent InteroperabilityIFTTT is too hard for 90% of the population, it has
to be easier – products have to be open or customers will stay away
Unconstrained RadioConnecting many sensors and switches, generating data and enabling services to support the rest of the stack
EVERYTHING HAS TO BE HEROIC• Self driving cars• Robot vacuums• 700mph trains• Hitch hikers guide in your pocket• All the music, ever, on demand• Real time pizza delivery tracking
Technology is accelerating customer expectations – even humble products need to step up, especially those that want to be part of the future
We don’t have hoverboards, flying cars or cryogenic immortality – yet –but that’s what we want instead of marginally better lightbulbs
Smart Home products HAVE to try and be heroes too
THANK YOU+44 7572 81709 [email protected] [email protected] @raygunsimon
SIMON HARRISON
Head of Innovation Technology – RWE Innovation Hub UK Outpost
(until 1st July 2016!)
