The seller to buyer business already disappeared a while ago. Nowadays, we live in a platform economy, where a platform mediates between the buyers and sellers. We expect more from all products and technologies we are using and due to the network effect; platforms come closer to meeting our constantly changing and more demanding requirements for satisfaction.
Even though Apple is a widely used example with iOS as an operating system in general, the Apple Store and the famous iPod including iTunes, I am going to use Apple again as an example case.
The network effect shows that platforms generate more value for each new user but also for each new service. Therefore, I am wondering if Apple will generate new value with implementing the Homekit, a platform on itself.
Platforms will also cause that non-technology firms will profit from the technology platforms whose are there, since it allows them to innovate as well. This leads to an ecosystem, where value creation is two sided and continuous.
The Apple Homekit allows you to regulate accessories within your home. There were already companies who are doing this for their specific product, however with their new platform, Apple allows users to not only control Apple specific products such as the Apple TV but also other products and brands.
However, at this moment, not many home accessories are linked to the platform yet. At this moment, Apple is still recruiting for app developers and accessory developers to be on the supply side of their platform.
As mentioned before, Apple is not the only provider who takes the house as some kind of platform. Also for example Google that overtook Nest already quite a while ago is working on this.
I am wondering how long it will take before all lights, tv’s, radio’s and all these offline technologies are trying to connect to such a platform. Will this turn out to a winner takes it all market. Or are consumers in the end willing to buy accessories suitable for their homekits?
Source: https://www.accenture.com/us-en/blogs/blogs-ecosystem-models-and-the-platform-economy
http://www.apple.com/ios/home/
https://developer.apple.com/homekit/
Hello Sanne,
Thanks for your blog. Really interesting to see that those developments are already that far in the Internet of things for the everyday consumer.
To address your first question, whether Apple will create from the platform itself, I think that this is possible. The platform will take some time to be complete and become mainstream but it is very handy for the user. To start off Apple does not need so many connected devices, like radio or tv. Regulating the heating system, the lights and some basic control over TV can be a nice start. Furthermore, Apple could monitor the data of the users in a certain region/city to see how well informed the users are over heating the house or saving energy for example. That is just to begin with.
For the adoption I would see it happening anywhere between 5 and 10 years from now, especially from the younger generations in the Netherlands where technology is quickly accepted by the average person. Also the latest apps and platforms do not need any technical mind to be used so it is just a matter of time for those products and platforms to be available on the market. When all these are present and known by the consumers for a decent price, it will not take long for them to be in our houses.
Great article! When I think about the new Amazon Echo, a smart speaker device capable of voice interaction, music playback, setting alarms, streaming podcast and many other services, I feel that soon you will be able to come back home after work and just have to push one button that will adjust the lighting and all the functionalities in your entire house. For example, the lights in the kitchen, the living room, a few hallways, and all your connected entertainment devices at the same time using a tablet or smartphone. Right now devices are not yet communicating with each other, but they are so many connected items and so many devices that once we manage to make them interact with our homes your house will basically become a platform.