Security and the Home

Reporting & Conclusions Juulia Tarma, Finpro Milan March-April 2010

Security and the

Home

Contents

•

Background

•

Case study summaries

• Mondial Assistance

• FamilienService

• Pantein

• Philips Lifeline

•

Technology

•

Conclusions

• General

• Security business networks

• Opportunities & Challenges

Background

• The Security and the Home project is a continuation of the Tekes and Finpro collaboration DuO project, Home Service Concepts. • Principal research questions

• What is the maturity level of service integrator markets? • What is the liquidity and market demand for such services? • Methodology

• Desk study and field study phase, in which service integrator case studies were identified and investigated via interviews • Analysis and reporting phase.

• The aim was to potentially find out

1. Further general market information, including trends, drivers and actual volumes of the markets

2. Specifics about the integrator companies themselves, including major competition and international reach.

• The study eventually focused also on technology, due to its relevance to the Finnish market offering. The fourth case study chosen was thus a technology and service company, Philips.

Summary

– Mondial Assistance

• Principally a B2B partner,

• solutions for travel, insurance, automobile & banking sectors. • Turnover 1,597 million €

• Over 50% of sales is travel insurance • “Home” or personal services only 5%

• The UK market has suffered the most during the crisis due to heavy reliance on the automotive sector.

• German car manufacturers are big clients for assistance services. • No lack of suppliers in the network – strong competition.

• Business models vary between countries; legislative restrictions

• German office provides services abroad, Italians only cover person-related insurance when travelling

• Contracts with service providers are not exclusive

• No contract between supplier and consumer – only Mondial itself. • Supplier’s income comes from individual services to the end user

• Variety of pilot projects – decisions often made in France

Summary

– Mondial Assistance

Mondial

Assistance

Technical:

Travel:

Medical:

Insurance

Contracting Party

Policyholders

(end client)

Summary

– FamilienService

• Exclusively B2B, employee assistance services

• Main part of business is in childcare: childminder services via an agency model; and running childcare centres for companies. Also eldercare, home services, counselling.

• Turnover 35 million €

• Some lost contracts during the financial crisis, but overall growth. • Competition is becoming tougher in the agency model in childcare,

with increasing popularity of online agencies.

• Most rapid growth in homecare, eldercare, and life coaching.

• Two business models: Agency & Non-agency

• In traditional agency model, no contract between FS and supplier • FS contract with client, and advises end user on supplier contract • Non-agency contracts only for childcare facilities, and consulting • Suppliers are found via inserts in newspapers or online, word of

mouth and various childminder non-profit networks.

• Selection process and quality control is particularly rigorous to compete with the German national welfare organisations

Summary

– FamilienService

FamilienService

Childminders

Psychologists

Counsellors

Client company

(employer)

Policyholders

(employee) and

family

Summary - Pantein

• First organization in the Netherlands to combine Housing, Care and Welfare, offering tailored services

• Turnover € 353.806 (2008).

• Services:

• Most popular services are home care & nursing and domestic help • Operates, like most Dutch care organisations, as a foundation

• Service palette is integrated from its own services and the services of providers of other housing, care and welfare organizations, eight municipalities, and industrial and educational providers

• Most services are provided by Pantein, only “Pantein Extra” home services (supplementary for existing clients) are from external

suppliers.

• Pantein does not make any profit with the extra services

• The service agreement as well as payment of these services is done between the external service provider and the client

Caring and nursing Domestic help

Midwife services (60% of women choose to give birth at home)

Child consultation (Neuvolapalvelut 0-2 vuotta)

Nutrition and diet

Summary - Philips Lifeline

• Leading provider of medical alert services, over 6 million subscribers since founding in 1974.

• Provides call center service (voice to voice), and technology (speaker box & pendant)

• Senior presses a button, speaks to Lifeline, and a friend/neighbour, or emergency services are alerted.

• The voice to voice service is provided by Lifeline or a distributor, depending on the business model.

• 700.000 users across North America.

• Service costs $30-40 /month, plus $13 /month for AutoAlert. • 3 business models

1. Purely selling hardware (including response center hardware); distributor handles customer contact.

2. Distributor provides customer service but has outsourced monitoring and call center to Philips (Lifeline). Distributor provides in-home help and installations.

3. Philips provides full service. Distributor has outsourced everything; its only task is continuing to find new users.

Call center

Summary

– Philips Lifeline

Call center

Philips Lifeline

Manufacturing

units

Outsourced

components

Consumer

Distributor

Technology

• Mondial Assistance use technologies both in the services themselves and in their delivery. They depend on quick development of new services in response to evolving demand.

• Current technologies include:

• Online platform giving clients quicker access to home services, plus

other e-commerce tools

• SMS for client communication

• Diagnostic systems in the medical sector

• Telemedicine and assistance

• GPS systems for automotive sector

• FamilienService provide little technology at the moment.

• 3 or 4 privileged technology co-operation partners, e.g. providing

elderly people with special mobiles.

• The Fraunhofer Institute is a current technology partner.

• Pantein are sceptical about use of technologies in care.

• In the Netherlands technology uptake is advanced in other market sectors, such as construction and domotics.

• In all three cases technologies have yet to be fully accepted

Conclusions

– 1

•

General conclusions

• Increasing consumer demand for all inclusive solutions

• New, innovative services always required

• BUT smaller return on investment for home services

• Competition to join integrator networks

• Business shifting online

• Demand for services, not products

• B2C market is more challenging and risky

• Some healthcare markets do not encourage foreign entrants

• Being customer oriented is key

•

Future

• Shifting to more customer-centered, personalised, model

• Integrators widening their offering

Conclusions

– 2

•

Market maturity

• Integrators include

• Specialised service companies that widened offering

• Companies founded as integrators – rarely big players

• Customised consumer offering not perfected – immature

“home” services market

• Technology uptake is slow

• BUT integrators interested in new innovations

•

Liquidity and market demand

• Integrators give out little information on network partners.

• Services to the home make up a minor part, e.g. 5%

• However customers demanding more complete solutions

• Personalised services like life coaching are in growth

Conclusions

– 3

Security / Safety add-on Security / Safety by design

Asiakastarpeiden perusteella Syntyvät dynaamiset verkostot

Lähde: SecLi-hanke, Aalto-yliopiston Kauppakorkeakoulu ja VTT

Conclusions – 4

•

For Finnish companies

•

Opportunities

• It’s possible to join service networks abroad

• Pilot projects

• Future demand for flexible multi-application

technologies (home- and eldercare)

• In the Netherlands, entry through building corporations

of service, nursing and care homes

• Opportunities in technologically immature markets

• Technology sold via usual distribution channels - local

office/partner

Conclusions - 5

•

For Finnish companies

•

Challenges

• Often tough competition.

• Rigorous quality control.

• Technology uptake is slow in several regions.

• Technology cannot be sold without a decent service

model.

• References are crucial.

• Users apprehensive about technology – lack of

familiarity and security issues.

• Many limited markets – only direct investment or

technological innovations.

Links

• Related projects:

• Soprano - ICT Technologies and older people

• The SOPRANO project aims to develop affordable, smart ICT-based assisted living

services with interfaces which are easy to use for older people and familiar in their home environment.

http://www.soprano-ip.org/echome.asp?lang=1 • Netcarity

• European project researching and testing technologies which will help older people to

improve their wellbeing, independence, safety and health at home.

• Participants include academics, technology firms, psychologists, sociologists, carers,

designers and regional authorities. www.netcarity.org • Domotics in the Netherlands

• www.smart-homes.nl

• Wdtm - branch organisation for personal alarming, domotics and services www.wdtm.nl

• Planetree: “people care for people”

• www.Planetree.com

• A nonprofit organization of hospitals, continuing care and other health care

organizations founded in 1978. Planetree provides education and information in a collaborative community of healthcare organizations, facilitating efforts to create patient-centered care.

Sources

•

Company websites

•

VTT

•

Interviews

• Mondial Assistance, Italy

• Mondial Assistance, Germany

• FamilienService, Germany

• Fraunhofer Institute, Germany

• Pantein Groep, the Netherlands

• Philips Lifeline, USA