Robotics and real estate: achieving a differentiated product
What’s the first thing that comes to mind when you think of a robot? Some might first think of Boston Dynamics’ fleet of parkouring robots. For others, it could be something a little more familiar such as a Roomba vacuum. How about this: a robot called Ameca, made by Engineered Arts, that was showcased only this month. It will also be on show at CES 2022.
In reality, robots are far more embedded in your daily life than you realise — from the coffee machine in the office, to the motion-activated light in the bathroom. That’s quite a range. So where do you draw the line? Well, Britannica defines a robot as:
…any automatically operated machine that replaces human effort, though it may not resemble human beings in appearance or perform functions in a human-like manner.
IEEE has a slightly more detailed definition:
A robot is an autonomous machine capable of sensing its environment, carrying out computations to make decisions, and performing actions in the real world.
Taking either of these, we can safely define an automatic door as a robot, or even a thermostat. The definition is just too vague and there isn’t really a consensus on where you draw the line. For the purpose of this blog post, we’ll be looking at robots as complex autonomous and semi-autonomous systems which are replacing human labour in a novel way.
Use case: specialised versus platform
There are two types of solutions: specialised solutions and non-specialised platform solutions. Their classification is really determined by the width of their application. Platform solution examples include Boston Dynamics’ Spot Mini, as well as industrial drones. Another example is our very own Hausbots, which started with a specialised use case (painting external walls) and has since expanded.
Platform solutions
Platform solutions can face difficulty differentiating themselves from others. Differentiation is usually accomplished through the specific tech, enabling the robot’s motion. In Hausbots’ case, proprietary technology enables it to climb vertically. This makes it a platform technology with some key defensibility.
Something else to note on platform solutions is that they’re only as good as the end-effector they’re using and how suitable it is for the desired application. For the Spot Mini robot, attaching a robotic arm, or a camera, or an iPad for teleconferencing, changes its application and effectiveness entirely.
Specialised solutions
This is usually where most solutions exist, mainly as a function of all the different use cases. Examples include focusing on underfloor insulation or bricklaying. In other cases, it’s focusing more on maintenance such as autonomous cleaning robots. Of course, we have our portfolio company OKIBO, which is specifically focused on autonomous indoor painting and wall finishing.
A key benefit of specialised solutions is that the entire design and function of the system revolves around a single use case. A further for most robotics in real estate is in social sustainability — removing people from hazardous, repetitive work, thus improving safety and wellbeing.
Robots and society
An immediate tangent many people will draw here is that of robots replacing manual labour. Although a very valid point, it is worth noting that even from a long-term perspective, many of these solutions will be assistant technologies working alongside experienced human operators. This is the long-term vision of OKIBO — designed as an autonomous robot that can operate alongside upskilled human workers.
There will, however, continue to be a replacement of human labour with robots. After all, that is the literal definition of robots — where repetitive manual tasks can be executed faster, cheaper, and of a higher quality. It is down to us to manage the socio-economic impact effectively.
Hardware is hard: scalability
During my previous role, which was focused entirely on hardware start-ups, something that we engrained in our founders from the get-go was that hardware is hard. There are some key complications in hardware that should be carefully accounted for, that can lead to significantly longer and more expensive product development and production cycles. This is particularly challenging nowadays due to supply chain challenges and shortages — particularly in the electronics industry.
Taking hardware from a minimum viable product to a production-ready model and then going into manufacturing is often the process most overlooked by teams at an early stage. At the same time, it’s the largest factor in the length of a project’s development. This is in stark contrast to software, where the cost of development is largely human capital, and incurs minimal variable costs once the product has been developed and distributed over the internet.
Using software as a differentiator
Software is nevertheless an essential part of successful hardware and serves as a key differentiator. As an example, 3D printed building technology is likely to be commoditised very quickly (as was the case for traditional 3D printing). The underlying reason is that there is very little opportunity for software differentiation within that market, at least at the stage of actual printing. This differs from a solution such as Boston Dynamic’s Spot robot, where the key differentiation is in the robustness of the software being responsible for controlling the motion of the robot, as well as giving it perception.
Future challenges and how to differentiate
Unfortunately, technology and resource challenges aren’t the only causes of complication for robotics. It is also the increasingly commoditised nature of the electronics and robotics industry. If we return to the example of Boston Dynamics, competitors across the world (such as the Chinese firm Unitree) are offering competing products for a 25-times lower cost.
This all takes us back to the topic of building barriers to entry, which is most effectively done through software. Whether it be the motion and control intelligence of a Boston Dynamics robot, or the specific industry insight needed, the goal should be to develop a solution that is best suited to a particular problem.
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