These 5 issues are scaring homeowners away from IoT

When streetlights first lit up New York skies in 1880, Edison was initially revered as a hero. Electric lights were unlike anything his peers had seen before, accustomed as they were to gas lamps and candles, and they cheered to see the new technology go live.

However, that awe quickly faded, becoming a major PR problem: Victorians may have at first viewed the invention as a modernist feat, but they mistrusted electric lights and believed they were unsafe for their homes—especially after hearing about horses that were electrocuted in the streets while traveling over lanes where transmission cables were laid.

The Wizard of Menlo Park eventually gained some ground with the public after launching a massive advertising campaign—one that included dancers with lightbulbs taped to their heads, and power lines running the length of their arms—to demonstrate to audiences that bulbs were safe enough for any home. And the rest is history.

Just like electric lights, smart homes are experiencing some of the same ups and downs that plague any new technology—initial excitement, followed by resistance, especially as reports are released that detail problems.1 Almost every day, a new technology site puts up an article relating how it was able to hack into a smart home product in mere minutes. Meanwhile, there’s evidence that those who initially adopted smart devices like thermostats and security systems are abandoning them—an issue that was likely not helped by Nest CEO Tony Fadell’s departure at the beginning of June.

To really win over homeowners, the IoT industry needs to address current concerns and assure residents that these products are safe and easy to use—perhaps not with a song-and-dance number, but by solidifying their record as trustworthy businesses and shoring up usage and security issues. To start, let’s take a look at some of the anxieties keeping homeowners from becoming IoT adopters.

Fear #1: They’re afraid of data leaks and hacks

This isn’t a totally unfounded concern—in the rush to get IoT products on the market, many manufacturers have left security flaws exposed that make homeowners extremely vulnerable to potential cyber crime. For instance, when researchers examined nine popular WiFi-connected baby monitors, they gave eight of them failing grades for security. Most devices currently rely on passworded protection alone—a real problem, since end-users tend to pick passwords that are simplistic and easily guessed. Some even provide default credentials, without forcing users to change passwords during the installation process. At the beginning of this year, for instance, Forbes was able to hack into a large smart security system at a Youth Center simply by entering “admin” for the username and password.

And it’s not just the devices themselves—routers and wireless networks also need to be better secured to prevent hacks. Relying on homeowners to navigate the world of IT security by themselves is a sure way to sink these devices. The IoT industry would do better to recognize this as a service opportunity, employing professionals to assist homeowners with the installation process, or encrypting networks for them using global trust identity networks. Until a better option becomes available, homeowners will continue to feel wary of IoT devices.

Fear #2: They’re afraid they’ll lose their privacy

Homeowners aren’t just afraid of hackers—they’re also concerned about big data. Giving a corporation like Google or Apple access to their every movement in their homes is hugely discomforting. Companies that can instill trust in end-users that their data won’t be misused or inappropriately leveraged will go a long way with consumers. Namely, IoT producers should build in Privacy by Design features, like those available in social media platforms, that allow homeowners to choose how freely they share their personal data.

Additionally, any data that is aggregated and used by companies should be anonymized, removing personally identifiable information from the equation altogether. IoT businesses that can explain exactly how and why data is used, as well as offering some end-user control over sharing, will profit in the long run.

Fear #3: Systems seem too complicated—and they are

Smarthome devices are advertised as products of convenience—but in actuality, they often serve to frustrate and confuse homeowners. Creating a lighting “theme” is a lot more complex than just switching on a few lights, and requires insight into a user’s habits and routines that many homeowners just don’t have.

Meanwhile, behavioral exceptions occur all the time in homes. You might love having a coffee maker that wakes you up with a fresh cup and a radio that switches on the news automatically—except when you wake up with a stomach bug. Predictive and “learning” systems aren’t intelligent enough yet to consider the wide range of factors in play in homes, and that’s made many homeowners frustrated with smart devices.

Fear #4: Devices don’t “talk” to one another

Interoperability is obviously a huge problem amongst IoT devices right now. With WiFi, Z-Wave, Bluetooth, and Zigbee all out on the market, there’s no universal standard—and that’s a huge pain point for consumers.

There’s also the issue of device control. Most products are controlled locally through individual apps on a user’s smartphone, meaning there’s no one-stop-shop for settings. Devices that communicate have to be linked one at a time. Even promising unified device controls don’t solve that problem—for instance, Apple HomeKit still currently requires users to download individual manufacturer apps to work. Homeowners who might benefit the most from smarthome products, such as the disabled and elderly, could potentially find that kind of complicated set-up a barrier to entry.

Fear #5: They don’t know the impacts insurance and property values

Every homeowner knows that any purchase they make for their homes is an investment, and IoT devices stand both to bolster home values and affect insurance rates, or even how claims are made and processed. By most predictions, IoT will be hugely disruptive to the insurance field—access to real-time data about homes could allow companies to make suggestions before problems arise—for instance, to recommend roofing repairs that would save homeowners a massive claim. That’s obviously far in the future, but homeowners still have questions about how technology will affect their current rates.

While most evidence shows that smart tech does nothing but good things for property values, and may lower premiums as well, it’s not likely that most homeowners are aware of this benefit, and many may be waiting for the dust to settle before making a big investment. By strategically partnering with insurance providers, IoT companies would be able to promote the positive relationship between insurance rates and smart products, and take advantage of a mutually beneficial relationship as well.

Smart homes have a long way to go; however, IoT companies would do wise to take a page out of Edison’s book, and assuage user concerns directly and quickly, before the industry loses momentum. 

The author is a blogger and aspiring homeowner. She currently resides in Austin, TX where she writes full time for Modernize.com, with the goal of empowering homeowners with the expert guidance and educational tools they need to take on big home projects with confidence.

Consumer IoT channels continue to struggle

Many people recognize that the IoT is not actually new. For years, industries have become increasingly sophisticated in the way they collect and use data from systems and devices. 

In the B2B space, the IoT market is already well advanced. The majority of new commercial buildings are ‘smart’; systems are connected to make buildings safer, more energy efficient, easier to manage and the cost of operation is significantly reduced. Even in agriculture, IoT is well advanced. John Deere uses connectivity on their fleet of combined harvesters to remotely monitor and maintain machinery as well as provide real-time analysis of the quality of the grain in each part of the field and use the data to create a tailored plan for fertilizer. 

However, the B2C channels are lagging when it comes to exploiting IoT. They are struggling to adapt to the tidal wave of change as the technology used so successfully in commercial IoT applications leaks into the mass consumer market. This is disappointing because the infrastructure for growth is in place; broadband and smartphones are ubiquitous, the technology is now simple and affordable, and the value propositions are often compelling. 

Startups have stirred up the consumer space but the reality is that the big channels such as retail, service providers, utilities, insurance companies and health have yet to see real mass market success.  Many channels have been slow to see the opportunity, and fog surrounding standards and interoperability are often quoted as reasons for being hesitant with investment. This is affecting the speed of growth which is disappointing because, in reality, the real issue affecting the proliferation of smart home products in the consumer space is not interoperability or standards, it’s the business models. 

Kevin Meagher

The initial wave of innovation in the smart home space has been what could be considered Point to Point (P2P) devices; a single device managed through an app. Nest is the most obvious example. They used IoT and connectivity to reinvent the thermostat and rapidly stole market share from the traditional manufacturers. They secured a mind-boggling exit and instantly created a business model that many other startups are trying to emulate.

Unfortunately, there is a fundamental flaw in the P2P business model and the recent rumblings with Nest is proof that the business model has its limitations. In a connected world, consumers do not want to stand on the doorstep and open the door with one app, control the thermostat with another, trigger light switches with another, and so on. 

Consumer-facing industries need to recognize that the killer app in the smart home space is a single app. Consumers want an app through which they can monitor and control all the devices in the home to receive a wider bundle of value-added services from channel partners. In the B2B IoT applications, industries worked together to deliver comprehensive system solutions to companies like John Deere and farmers. Unfortunately, in the consumer space, none of the traditional players are organized or structured to act as aggregators. Indeed, in many cases, they are competitors and want to herd consumers in a particular direction with their preferred business models. 

Who will be the consumer IoT aggregator?

So who will step up to the plate and act as an aggregator to deliver a truly connected experience to consumers?

Service providers such as Comcast and others were the first to try. They created ‘curated’ smart home systems by sourcing a set of devices to give customers a broader smart home experience with a range of products and services—all managed through a single app. Unfortunately, many consumers are wary of monthly fees and long term commitment typically secured from the traditional security monitoring is attractive to service providers. Apple, Google, and Microsoft are pressing forward with their own agendas but they are largely focused on delivering infrastructure solutions so none of them are really offering to act as aggregators for the consumer.

Some major players in consumer channels are making bets and stepping up to act as aggregators for the customer. Retailers such as Lowe’s and Amazon offer more ‘open’ platforms that support a broader set of devices and they are working to bundle value-added services using freemium business models. These ‘open’ DIY systems are starting to gain traction and they could ultimately displace P2P and overtake curated. 

However, there are new channels that could also be big winners. Utilities are a sleeping giant in the smart home, but the dynamics of their market suggest they are unlikely to ever wake up to the opportunity. Insurance companies are more interesting. They are suddenly showing strong interest in bundling smart home solutions with their policies and they could become a strong channel. The opportunity to mitigate risk, improve consumer engagement, offer new value-added services to generate new revenues are a significant motivator as their markets become more competitive and revenues are squeezed.

Clearly, the jury is out on the winners in the IoT B2C channels, but the opportunity is huge so those who find the right business model could ultimately be the biggest winners in IoT.

The author is Senior Vice President of Business Development for ROC-Connect

Google debuts new Home for your mundane questions

Getting into the smart home hardware business, today Google debuted Google Home, a voice-activated home automation system, at the firm’s annual developer’s conference, Google I/O 2016.

We’ve had a few teasers over the last few months and Recode previously reported that Google has been working on a portable speaker containing a built-in voice-activated assistant for the whole family in a prototype called “Chirp.”

Mario Queiroz, VP of product management, introduced Google Home, stating that it “lets you enjoy music and entertainment, manage every day tasks and Ask Google what you what to do, via a voice assistant.” It’s preceded by the firm’s Chromecast product, one that enables consumers to play music videos and movies from a small device to the big screen.

Home automation space getting crowded

Google home is also Wi-Fi speaker that streams music directly from the cloud for clear playback via verbal request or through Google. Consumers will be able to request music in specific rooms or request multi-room playback.

Queiroz unveiled a video displaying the possibilities of using Google Home for requests like checking for flight delays to rebooking restaurants to answering homework questions, demonstrating the growing reality that there’s no need for kids to talk to their parents ever again.

It’ll not only answer your queries and organize your life, Google Home promises to connect your other smart home devices: lights, thermostat, switches and – of course – Google’s own Nest devices, with Querioz predicting that in the future it will control things beyond the home, via the voice assistant function.

IoT developer Qiming Fang said Google Home looks familiar. “To be honest, from the demo, I don’t really see it as that different from (Amazon’s) Echo,” he said. “I think the developer community  – and Google or Amazon’s ability to react quickly and revamp their APIs – will be the key to which product ends up taking off.”

He also noted that there was only a cursory mention of how Google Home will connect with products such as Nest:

“If Nest can detects something out of the ordinary, Google Home could potentially also be used as a warning system. Multiple devices cold also create a network of warning systems, like if one person’s kitchens lights on fire by accident, neighboring homes could be warned.”

This device will be a considerable competitor to Amazon’s Alexa, launched in 2015. Apple, Microsoft and Google all have voice-activated assistants, but up until now, they’ve been limited to mobile devices.

Google may be announcing the feature today  to enable developers to start building apps and integrations for the platform before its physical launch. At any rate, it will be a key component of Google’s assistant ecosystem and evidence suggests there’s more to come.

Man the hoses: GreenIQ partners with Nest to prevent fires

Smart irrigation controller GreenIQ is integrating its Smart Garden Hub with Nest’s Protect, that firm’s smoke detector and alarm.

When Nest Protect detects a fire, it will alert the Smart Garden Hub, which will activate sprinklers to avoid a garden fire. In the event of an emergency, the hub will activate any outdoors lights to alert the family and neighbors to the event.

See Also: SensorUp is the IoT therapist for your dysfunctional device family

The sprinklers will remain on for 20 minutes, unless the user manually turns them off. Users can also set the GreenIQ sprinklers to continuously run regardless of the Nest Protect’s status, to ensure that all areas in the garden are damp.

Over 2,500 people lose their lives and 12,000 suffer injuries from house fires in the United States annually. As well, with extreme drought conditions in several western and southern states, small fires can quickly spread through dried out gardens and threaten neighborhoods.

GreenIQ hopes that the integration will lower that number, and also lower the amount of direct property loss due to fire damages, which was estimated at $7.3 billion last year.

GreenIQ wants you to feel more connected to your garden….and safer

“It has always been our mission to help make gardens smarter and allow people to feel more connected to their green spaces,” said Odi Dahan, founder and CEO of GreenIQ. “Our integration with Nest is taking it one step further by not only helping our customers save money and conserve water, but also helping to decrease any anxiety people may have about potential fires.”

GreenIQ Smart Garden Hub is one of a growing list of garden IoT systems, focused on ensuring plants and grass have enough water to grow while lowering the amount of water used everyday. The system offers a smart analytics platform to tell the customer how much water should be used, the most optimal position for sprinklers, and the best ways to keep their garden alive, all from the smartphone app.