I want advice to start new business.

hyde

New Member
Hi,
I established new company in Q4 2006, headquartered in south korea.
Our team have developed customized proprietary home automation solutions for domestic bulding contractors.
We are already deploying our product in high-class serviced-residence for rich eldery.

I have kept observation on US HA market and very interested in this market. And, I decided enter into this market for DIYers.
Our target customer is average users and non-programmer.
Our product is ARM9/linux based small standalone embedded controller is support Insteon or Z-wave. Maybe, its price will be about under $500.
I think that product concept is similar to universal devices(ISY-26) or pulse controller(http://www.pulse-control.com).

So, I have researched market and players for feasibility study. But, I found out some problems:

1) I know that customer support is very important. But, we are all korean. So, we are not so good at english.
To solve this problem, we'll be looking for a dealer/distributor in US. How about this? Who is suitable dealer?

2) We are small company and ROI is very important. our 1st questions is "Can we make enough revenue in this market?"
I estimated ROI and I knew we have to sell our product over 2000 units per year. Is it reasonable plan? Is it possible?
To examine this assumption, I have been looking for sales data of market players such as homeseer, embedded automation,
controlthink, universal devices, perceptive automation, and so on. But, I can't find anything!
I think they are small company and very limmited revenue.

3) Insteon vs. Z-Wave? Our important concept is easy to install. Because I think that multiple protocol support can harm our concept, we will support single protocol - insteon or Z-wave. Also, I know Z-Wave SDK is expensive. If we can make enough revenue, we can support Z-Wave. But, I'm afraid of ROI.

I want your advices.
 
1) Definitely contact Martin at AutomatedOutlet.com, he posts here as well, or you can contact him through his website (there is a phone # as well).
2) All depends on the features the product offers, would need to see specs.
3) Both can be complicated to support, but I would design the product with multi protocol support in mind. This way you can add newer protocols such as ZigBee in the near future. Also keep in mind that you should consider UPB, since it is easier to support, and very popular.
 
Sounds interesting, do you have any further details about your automation controller? How about a web site, even in Korean it would be interesting.

Hi,
I established new company in Q4 2006, headquartered in south korea.
Our team have developed customized proprietary home automation solutions for domestic bulding contractors.
We are already deploying our product in high-class serviced-residence for rich eldery.

I have kept observation on US HA market and very interested in this market. And, I decided enter into this market for DIYers.
Our target customer is average users and non-programmer.
Our product is ARM9/linux based small standalone embedded controller is support Insteon or Z-wave. Maybe, its price will be about under $500.
I think that product concept is similar to universal devices(ISY-26) or pulse controller(http://www.pulse-control.com).

So, I have researched market and players for feasibility study. But, I found out some problems:

1) I know that customer support is very important. But, we are all korean. So, we are not so good at english.
To solve this problem, we'll be looking for a dealer/distributor in US. How about this? Who is suitable dealer?

2) We are small company and ROI is very important. our 1st questions is "Can we make enough revenue in this market?"
I estimated ROI and I knew we have to sell our product over 2000 units per year. Is it reasonable plan? Is it possible?
To examine this assumption, I have been looking for sales data of market players such as homeseer, embedded automation,
controlthink, universal devices, perceptive automation, and so on. But, I can't find anything!
I think they are small company and very limmited revenue.

3) Insteon vs. Z-Wave? Our important concept is easy to install. Because I think that multiple protocol support can harm our concept, we will support single protocol - insteon or Z-wave. Also, I know Z-Wave SDK is expensive. If we can make enough revenue, we can support Z-Wave. But, I'm afraid of ROI.

I want your advices.
 
I would say support as many protocals as you can. Insteon, Zwave, UPB etc. to increase your marketability. Even if you start with one and build on to it later.
 
Thanks for advices and interesting.
We are not to ready for US market and in product conception phase. And, we do not provide english homepage. yet.

Current controller is only available in S.korea and domastic B2B market. Its spec is
- CPU: ARM9 400MHz
- RAM: 64MB, Flash: 32MB
- Network: 100M 1x WAN, 4x LAN (IP router function)
- I/O: 1x mini-PCI, 2x RS232C, 1x RS485, 2x USB2.0
- OS and SW: Embedded Linux, Embedded JVM, OSGi service platform, DDNS, DHCP, PPPoE...and so on.
- optional: 802.11b/g WLAN, 2.5GHz ZigBee, 400MHz RF
- power: 100~240VAC, 50~60Hz, 5V/3A

This product is almost $700 and supports proprietary 220VAC 2.4GHz ZigBee/400MHz RF devices, EIB/KNX and proprietary RS485 based protocols. Also, our controller is intergrated with Samsung SDS's HandyHome remote controller(http://www.samsung.co.kr/UserFiles/Image/070621_sds_view1.jpg), RFID tag system, HAVC controller, EIB lighting controller and Commax's touchscreen(http://www.commax.com/admin/eng/product/bimg_files/CDP-1020H(B).jpg), and so on.
Handy Home is innovative remote controller that able to control and monitor devices. Also, It can be used mobile intercom and VoIP Phone. RFID tag system is used for access control and location based service. These are installed in about 500 households until Q4 2008.

We'll redesign our controller hw and sw for US market.
Current *planned* main software features are:

1) support Insteon or Z-Wave. (first product will only support single protocol for easily configuration)
2) support IP camera. (Panasonic?), capture, recording, attached capture image to e-mail notification.
3) device management based on floorplan and list view, device grouping
4) reamote access: slick web based user interface, mobile phone, Pocket PC, touchscreen
5) scheduled/timer and trigger events, condition variables, actions, scenes

Above features are able to change/cut for drop price.
 
I can tell you what most people want in their 'dream controller'. I already did the leg work for you, so don't forget to mention me in the credits/royalties :)

http://www.cocoontech.com/index.php?showtopic=7294

Thanks for advice.
I read about 'dream controller'. I think it's really dream controller. But, It is 'kitchen-sink' approach and I think 'dream controller' is not fit for our business goal.

Our target customet is:
- genX'ers and babyboomers (30~60)
- average user: maybe, they don't use/understand complex features and they require 'easy-to-install' (wireless, no-new-wire and 'plug and play') and easy-to-use user interface (slick, simple user interface)
- non-programmer
- appordable prices : under $500 (right?), we want to drop price to under $300~$400.

and our final goal is 'entering the mass-market'.

But, we'll also serve for 'early adopters'. We'll not forget you and their. :)
I'm identifying what features are requred for target customer and early adopters.
 
Our target customet is:
- genX'ers and babyboomers (30~60)
- average user: maybe, they don't use/understand complex features and they require 'easy-to-install' (wireless, no-new-wire and 'plug and play') and easy-to-use user interface (slick, simple user interface)
- non-programmer
- appordable prices : under $500 (right?), we want to drop price to under $300~$400.

I'm not sure you can lump GenX'ers and Boomers together like that.

Boomers tend to prefer an "appliance" approach to automation... push a dedicated button on a mostly self-contained system and get a reliable response. They have little tolerance for things that have to be "booted up", things that rely on batteries, things that you have to carry around and keep track of, or things that depend on the availability of externally provided services for basic functionality.

GenX'ers tend to embrace a "wireless" lifestyle and prefer hand-held devices, menu driven interfaces, and will tolerate operational complexity and occasional temporary system problems in exchange for mobility and ease of installation.

I will be interested to see the product that appeals to both groups!
 
Our target customet is:
- genX'ers and babyboomers (30~60)
- average user: maybe, they don't use/understand complex features and they require 'easy-to-install' (wireless, no-new-wire and 'plug and play') and easy-to-use user interface (slick, simple user interface)
- non-programmer
- appordable prices : under $500 (right?), we want to drop price to under $300~$400.

I'm not sure you can lump GenX'ers and Boomers together like that.

Boomers tend to prefer an "appliance" approach to automation... push a dedicated button on a mostly self-contained system and get a reliable response. They have little tolerance for things that have to be "booted up", things that rely on batteries, things that you have to carry around and keep track of, or things that depend on the availability of externally provided services for basic functionality.

GenX'ers tend to embrace a "wireless" lifestyle and prefer hand-held devices, menu driven interfaces, and will tolerate operational complexity and occasional temporary system problems in exchange for mobility and ease of installation.

I will be interested to see the product that appeals to both groups!

Just look at the remotelinc from SH. It is wireless and portable with awesome range (no being sarcastic it really worked well). But for boomers just add velcro and there you go :)

Seriously if they made a nice bracket for it I think it would be a big hit. Best of both worlds.
 
Our target customet is:
- genX'ers and babyboomers (30~60)
- average user: maybe, they don't use/understand complex features and they require 'easy-to-install' (wireless, no-new-wire and 'plug and play') and easy-to-use user interface (slick, simple user interface)
- non-programmer
- appordable prices : under $500 (right?), we want to drop price to under $300~$400.

I'm not sure you can lump GenX'ers and Boomers together like that.

Boomers tend to prefer an "appliance" approach to automation... push a dedicated button on a mostly self-contained system and get a reliable response. They have little tolerance for things that have to be "booted up", things that rely on batteries, things that you have to carry around and keep track of, or things that depend on the availability of externally provided services for basic functionality.

GenX'ers tend to embrace a "wireless" lifestyle and prefer hand-held devices, menu driven interfaces, and will tolerate operational complexity and occasional temporary system problems in exchange for mobility and ease of installation.

I will be interested to see the product that appeals to both groups!

Just look at the remotelinc from SH. It is wireless and portable with awesome range (no being sarcastic it really worked well). But for boomers just add velcro and there you go :)

Seriously if they made a nice bracket for it I think it would be a big hit. Best of both worlds.

I segmented our target customer refer to http://www.buildernewsmag.com/viewnews.pl?id=411:
- Generation Gap Early Boomers (60 years and over) : indirect customer (via builder or young ones)
Despite being the least technologically inclined demographic, this group still wants security and lighting convenience. A simple-to-use interface, while important in general, is particularly crucial at a time when eyesight and mobility could be an issue.

- Second Boomers (45 to 60 years) : important customer
Second Boomers own more second (or third) homes than any other group, and are more technologically savvy than their elder counterparts. But they’re busy—with work and personal activities—so give them the whole range of options from lighting to sprinklers.

- GenX-ers (30 to 40+ years) : important customer
Home security is one of the primary requests in all demographics, but GenX-ers will be particularly receptive to raising the bar in audiovisual areas, too. Since many in this group are also parents of young children, individual room surveillance is a welcome addition to the security system.

- GenY-ers (18 to 30 years) : they are not our customer
If GenX-ers raise the bar on audiovisual, GenY-ers send it soaring. Handheld interfaces, such as Pocket PCs, are perfect for this crowd, which cut its teeth on motherboards and MP3s. Convenience, mobility and especially trendiness, all speak loudly.

I acknowledge our target customet too wide. I'm still suffering between GenX-ers and Second Boomers, frankly.

But, I think good point for both. Such companies - iControl, Home Heartbeat(eaton), Xanboo, Homeremote(hawking), Controlthink Thinkessentials targeted GenX-ers and Second Boomers are average user. Althogh. their products provide limmited features, I think they play well in target market. Am I under an illusion?
 
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