Only a short time ago, predictions of technological developments in the home seemed fantastic at the time. Today, these futuristic ideas are becoming reality as the “internet of things” enables life-enhancing smart home products and services that can be controlled externally via handheld devices.
The world’s leading technology companies, telecoms providers, utilities and device makers are all investing heavily in smart homes. However there has been little activity from building product manufacturers (BPMs) - despite the fact that the market is estimated to be worth up to €100 billion ($112 billion), with dramatic growth predicted in the next two years.
In this Executive Insights, Karin von Kienlin and Darren Perry explain how BPMs can exploit the opportunities available by adopting three key steps:
- Define the appropriate target customer groups and understand their needs
- Create and communicate the right value proposition
- Develop a new approach to marketing and sales through the right partners
Within each step there are a number of strategic considerations to take into account. Building innovative new models will not be straightforward for BPMs – but L.E.K. believes the potential market is substantial – and worth the investment