Business models that make the Internet of Things feasible

For some people, its too early to plan mass consumerization of the Internet of Things. Developers are contentedly tinkering with Arduinos and clip cables, demonstrating cool one-off applications. We know that home automation can save energy, keep the elderly and disabled independent, and make life better for a lot of people. But no one seems sure how to realize this goal, outside of security systems and a few high-end items for luxury markets (like the Nest devices, now being integrated into Googles grand plan).

But what if the willful creation of a mass consumer market could make the technology even better? Perhaps the Internet of Things needs a consumer focus to achieve its potential. This view was illuminated for me through a couple recent talks with Mike Harris, CEO of the home automation software platform Zonoff.

Harris doubts that individual device manufacturers can crack the home market. First of all, they have trouble reaching their potential customers and establishing trust. Second, they arent attuned enough to customer needs, which include devices you can drop on a stone floor without breaking and services you can bring up by pressing a single button.

Most importantly, they are not manufacturing devices that play well together but the whole premise of smart homes is that the lights, thermostats, phones, TVs, etc., easily interoperate. Furthermore, the Internet of Things is really a cloud service; few applications can get much done just using the devices themselves and no single manufacturer can provide a comprehensive solution that all devices will talk to.

So, Harris sees three major types of companies driving the Internet of Things in the home:

Harris thinks the laurels will go to large, well-established companies that take the time to choose high-quality devices, educate consumers, and enforce interoperability. This may be less fun than wiring up your bicycle to glow in the dark, but it can ultimately bring many benefits.

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Business models that make the Internet of Things feasible