Why smart appliances did not kick-off yet?

Maybe you have heard the term smart appliances before, maybe not. More likely you might have already heard of the smart fridge or at least have an idea, what a smart fridge could be. The concept of the smart fridge has been around since the 1990s and has evolved since then. We are basically talking about a normal fridge, that has internet connectivity and maybe a screen attached and can therefore serve you additional features. These features vary highly depending on the properties that the manufacturer has given the fridge.

Simply by giving the fridge internet connectivity, you enable it to be remotely turned on and off and to give you informations regarding the current status. Whether you left the door open for a long period of time or the fridge is having some internal problems, it will inform you about it. Another feature that you can enable with internet connectivity is the integration into the household ecosystem.

In a smart household ecosystem, there is a collaborative environment where not only appliances but all electrical devices communicate and collaborate in order to keep the electricity consumption as low as possible. In such an ecosystem the water heater, for example, informs when it would be the best time to take a shower, while your washing machines asks you to wait until the dishwasher has finished cleaning. The appliances know your schedule, so that your morning coffee is ready even before you get up, and all the appliances turn off as soon as you leave the apartment.

The technical possibility for a smart household ecosystem already exist, but why are such system only rarely deployed? One answer to that question could be the lack of a platform that enables the integration of appliances from different manufacturers. Another reason could be that the R&D costs for such systems have been too high for the manufacturers to consider it.

One thing that is certain is that if there is a customer demand the manufacturers will produce it. So might the answer be, that there is just not enough customer demand?

And the answer is probably yes!

The end user of these products is not yet willing to pay more money for these additional smart features but there are many other stakeholders that are surely willing to pay for the costs!

Just think about the warranty providers for example. What they would be willing to pay, if they could know the average lifespan of an appliance or the exact time and cause of a breakdown.

Another example are maintenance service providers, which could offer their services right after, a breakdown happens or even preventively before something actually fails. Private insurance companies would be able to set their rates in a most profitable fashion and could even ensure, that the appliance does not even breakdown. Research companies would want to buy this data to analyse it and resell their findings and electricity providers could use it to better estimate the consumption of their customers.

Rather than making the buyer of such a smart appliance pay for the additional costs, the manufacturers should actually sell their products cheaper and make an additional profit from selling the collected user data to the above mentioned stakeholders. The benefits would not only be financially beneficial for the manufacturer but also overall good for society.

ThingsGoSocial(TGS) is a platform that provides all these data insights, while integrating all appliances into a smart household ecosystem. It is easy to set-up, scalable to unlimited devices and flexible enough to cover all customer needs. It comes along with a gateway device Thing Green, which enables the internet connection. Thing Green comes in a modular fashion which allows future upgrades, once new technologies are emerging. It is therefore a timeless system, that integrates all kinds of appliances. It gives the user stability and confidence, because they will not need to change systems and appliances, therefor is is building a loyal and satisfied customer base. Besides the classical product buyer, the generated data provides a new revenue stream, which increases the profitability in the long run.

Intelligence and Profitability with ThingsGoSocial and Thing Green.