Digital homes – the future is here
However, new research from Accenture reveals that the digital home is here, and it is now, and it is also more affordable than most people think.
According to the research, in the same way that people switched from film cameras to digital cameras, and from Walkmans to iPods, consumers in the world are increasingly upgrading to digital homes.
The survey shows that many of the digital home owners are more than satisfied and feel it was a worthwhile investment. The homeowners also believe that digital technologies such as broadband, home networks, consumer electronics and PCs have enriched their lives. Almost 80% state that technology has made their lives easier and 76% agree that is has made their lives more fun.
So why have consumers and technology manufacturers and providers been so slow to catch on?
According to the Accenture study, it all boils down to cost. Technology manufacturers and providers who would make the technology available to consumers are stuck between responding to consumers’ increasing price sensitivity by adding functionality to individual products while cutting the cost of products and service delivered. Accenture believes that in doing so, industrial players are missing out on a major opportunity to differentiate through services.
As complexities increase, consumers will require more technology to keep their homes running, they will need assistance with maintenance, monitoring and trouble-shooting, and they will want new services that will allow them to benefit fully from their investment in digital home technology in order to improve the way that they live and work.
Any company that can transform itself from being a mere product supplier to a service provider that is able to transform its customers’ experience, stands to benefit enormously from the improved differentiation, greater brand loyalty and new revenue streams. There also has to be collaboration between hardware, content and service companies to provide these solutions to consumers.
So what are the costs for consumers? While the research asserts that products are becoming increasingly cheaper and therefore more accessible, price is still the biggest barrier.
Only four percent of the people surveyed felt they could buy a service now, although 48% felt that the service would be affordable in a few years’ time, while 24% of the respondents felt that they would never be able to afford it. Thirty-five percent of respondents also felt uncomfortable with the highly technical nature of the products.
It is clear from the research that there is a gap between what consumers can actually afford and their own perceptions of what the costs would be. The research maintains that this will only be overcome through consumer education.
Loading ...