The Secret to Mass-market Adoption of the Smart Home is an Outcome-Economics Business Model.
by Jim Carroll and Michael Silva
The Sendal Cloud Solution is an Internet of Things platform designed to create a Networked Exchange for the first autonomous home. Sendal is a business based on enabling value-exchange interactions between producers and consumers of the platform. By facilitating autonomous home interactions within our ecosystem, we deliver outcome economics and customer lifetime value creation. The Sendal Platform creates a more significant experience for consumers, resulting in positive network effects, driving additional sales.
The introduction of personal smartphones, tablets, and voice assistants unleashed a deluge of commonplace items in the home becoming internet-connected. Initial acceptance of the new connected gadgets brought the idea of the connected devices to the masses. Recently we have seen a wave of new cloud services for the home, exciting innovations around aging in place, energy conservation, healthy living, etc. In most cases, these new services require proprietary hardware in the home to function as sensors and actuators. Both domains fall short of delivering solutions for the mass-market by failing to provide a meaningful value exchange.
Connected devices and cloud service cost too much for what they do while requiring personal information from consumers, leading to privacy concerns. The technology providers operate primarily as 'pipeline' businesses engaged in transactional sales. The products and services are standalone islands of technology within the home, with their apps and consumer experience. This disjointed experience of products and services often overlap or compete against each for screen-time. The inability for these technologies to achieve meaningful value-creation limits adoption, stifles innovation, along with any hope of advanced capabilities. Integrations and partnerships are one-offs or cost centers that seldom deliver a significant value exchange.
Outcome-based economics is the primary business driver for all IoT ecosystems. We leverage the ecosystem within our autonomous home of "Things" to provide customers with a personalized experience based on their individual needs while expanding the horizon for what is possible. Technology partnerships form with a consumer-centric view towards meaningful value creation that exceeds the value exchange. Hardware device manufacturers are free to focus on their specific devices' role as sensors and actuators of the ecosystem, creating greater value, essentially transitioning from a connected device to an IoT device. Software services companies leverage the inputs generated in delivering their solution without the burden of developing special-purpose hardware.
Sendal overcomes the conflicting pipeline business models by enabling value-creating interactions between connected products, software platforms, and consumers. The Sendal platform is anonymous by design; we don't provide consumers personal information to the ecosystem's participants. Instead, we provide a marketplace for consumers and technology providers to interact. The marketplace provides the manufacturers with a high-value substitution for their desire to collect consumer information. The marketplace offers a community of other users to; exchange experience, access curated information and ratings of technologies, and support the consumer.
The Sendal autonomous IoT platform is transformative for all participants, opening up the mass-market with a business model that demonstrates excellent value for consumers, enabling a Lifetime Customer Value relationship (LTCV) based on outcome economics. The device manufacturers will evolve their devices to support software developers to meet consumers' needs, beginning the journey towards a cash flow positive LTCV.
At Sendal, we are recruiting for like-minded technology companies seeking the benefits of network effects with an IoT autonomous home solution that is transformative and achieves a high-value lifetime customer value based on outcome economics.
You can learn more about Sendal on our website.
About the Authors
Jim Carroll- Co-Founder and President of Sendal. After several successful startups, he started the company by working with a talented group of entrepreneurs in the smart home space industry; the result is Sendal, a transformational platform to bring the smart home to the masses.
Michael Silva - Co-founder and Chief Technology Officer of Sendal. Mike’s career in technology revolves around the promise of using technology to solve problems. He’s done that successfully for the past 20+ years with several successful startups with breakthrough technologies and over 45 patents.
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