LONG-TERM VIABILITY OF SMART HOME SYSTEMS

Abstract

In Stockholm during the years 1999–2002 some residential housing units provided with advanced IT-based functions were developed, also called smart homes systems. The purpose was to offer the residents an augmented living environment mainly regarding security and comfort. Only the IT company that originally developed the basic system fully knows it in depth, a fact which has shown to become very unfavourable for the residents. The running cost, also for minor changes of the functionality of the system, has turned out to be high and prohibiting. Also the contracted regular maintenance requires access to unique competence, which also has become costly. Recently the company has indicated a replacement of the smart homes system with a simpler one based on the Internet. Business models for viable home systems should include the occupancy phase, which to date have been neglected. A crucial issue is who will and can assume long-term responsibility for surveillance, maintenance, and added functionalities over time. This paper will discuss some principal questions and prerequisites regarding business viability in relationship to smart home systems, and its significance for business modelling.

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