By Andrew Thomas
Just 10 years ago, a "smart device" described a class of mobile devices that could access email, social media and data from anywhere. Now it describes a world of connected devices that can think and communicate directly with us and each other, all on their own.
Google’s acquisition of Nest for $3.2 billion sent shockwaves through the home automation and connected device industry, validating the entire industry overnight. You’ve already seen smart wearables that track your steps and smart light switches you can control from your phone. Now, smart device adoption overall is growing at breakneck speed. The projected market for home automation is estimated at $14.1 billion by 2018. Other reports project that there will be 12.5 billion “smart” connected devices by 2020.
This is just the beginning, however, and there are opportunities everywhere for the next great startup to develop hardware, apps and services in the space. The key will be recognizing the human element by creating value for users with features that make sense.
Don't Forget Your Users
The innovations of the last two to three years are only the beginning. At home, at the office, in the car, in the classroom, smart devices are finding ways to provide information and utility that users can integrate into their everyday lives.
The key here is "users." While the Internet of things movement includes services and machine-to-machine data exchanges, home automation and smart devices still require a focus on the user at this point. You cannot ignore the human element. A person wears a fitness wearable or turns off the lights because it’s time for bed. The homeowner wants to save money on their electricity bill with a smart thermostat, or in the case of our product, wants a video doorbell so they can feel safe seeing who's at their door from a smartphone.
The best devices in this space create new ways to solve the everyday needs of their users. Understanding this can help you conceptualize the next startup that will further help users solve current problems or enjoy convenience they never thought possible.
Does It Make Sense?
Just because things can be automated and integrated doesn’t mean they should be. Startups considering home automation and connected devices should stay focused on the value and utility a given functionality provides a user. Just ask yourself: "Does it make sense?"
The bathroom scale received a smart upgrade, and it’s a good example of an integration that makes sense. A device like Fitbit’s Wi-Fi enabled Aria scale does much more than merely display your weight. The scale actually integrates with your FitBit account so you can automatically sync your weight and better track your goals.
In the kitchen, Samsung’s top-of-the-line refrigerators come with 8” LCD touch-screens that are connected to the Internet. It has apps for weather, recipes from Epicurious, photo galleries, Google calendar sync, and an interactive notepad for family reminders. These digital features are nice-to-haves, yet fall short in terms of adding new value for a user. The next step for Samsung is to automate features so the fridge can track consumption and compile shopping lists, etc.
Interpret Data to Add Value
Lately, it seems that conversations around home automation and connected devices focus on data. Enterprise solutions with machine-to-machine data exchanges rely heavily on data. For home automation, Nest’s acquisition and the race to collect and use data highlights the potential for startups to build services entirely on data.
For the most part, this data includes device-level data, and again, it represents an opportunity -- providing more value for users. Startups have the opportunity to create apps that interpret device data across a platform and automatically take action or provide usable information.
It might sound crazy now, but how long until a wearable won’t allow you to turn on the TV because you didn’t exercise? Or what about your lights shutting down at midnight to force you to go to bed because it knows you didn’t sleep well last night? In these cases, device data is being used to help the user accomplish their goals, stay healthy, save money and solve other real needs.
Whether with hardware, apps or services, success in home automation and connected devices will go the startups that stay focused on cultivating technologies that actually improve the lives of their users with functionalities that make sense.
Andrew Thomas is a co-founder of SkyBell, a Wi-Fi enabled video doorbell that allows users to answer their door from a smartphone.
