Smart Homes: Costs, Advantages and Disadvantages

The smart or automated home applies new technology to control and automate heating, ventilation, air conditioning and security, but can involve appliances as well such as refrigerators, stoves, washers, dryers and many other items.

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All these home items when they can be monitored remotely and also controlled, often via the Internet, can be an important part of what is called the Internet of Things. Every device involved is connected to a central hub often called a "gateway". The system is controlled through a user accessed wall-mounted terminal, mobile phone software, or a web interface of some kind.

One problem with smart home systems is that there has not developed as yet many global industry standards:While there are many competing vendors, there are very few worldwide accepted industry standards and the smart home space is heavily fragmented. Popular communications protocol for products include X10, Ethernet, RS-485, 6LoWPAN, Bluetooth LE (BLE), ZigBee and Z-Wave, or other proprietary protocols all of which are incompatible with each other. Manufacturers often prevent independent implementations by withholding documentation and by litigation.

This lack of standardization and use of proprietary technology can cause problems for those automating their homes. A customer could invest in an entire system of a company that fails. Consider what happened with the Revolv Hub automation system. Google bought the company that was selling the system and integrated it with its own Nest system. In 2016 it shut down the servers that Revolv Hub had depended upon making the system useless. Another disadvantage of a smart system is that it can be vulnerable to hacking. Microsoft research found in a 2011 study that there was often inflexibility of interconnected devices, and sometimes high cost of ownership. Often the consumer will rely upon one vendor for an entire smart system with mostly proprietary hardware although there is now some open source software that can be used with the proprietary hardware.

One advantage of having a smart home is the convenience it can add to your daily life. You can program your lighting, security, ventilation, heating and other features to meet your daily needs. You can also control many features in your home remotely. You can always customize what you decide to make a part of your smart home. You can decide what is most important for you and and then add products as you wish. Some people may decide that what they need most is an automated home security system for example or they want a smart thermostat so that temperature can be controlled when residents are not home. Most systems are not that difficult or expensive to install. Smart devices can often save you money and also help show where you can save money by keeping track of energy use and expenditures.

Often your smart devices depend upon having an Internet connection. If the Internet connection fails then the smart aspect of the system wont work. Sometimes too, communication by wireless signals, which is certainly the most economical way of connecting items, can be subject to different signals possibly interfering with one another causing them not to perform properly.

A recent HomeAdvisor article puts the average cost spent on home automation at $1,331 but also shows a graph which starts with an expenditure as low as $75 going up to $5,000 but you could spend much more than that. Obviously, what you spend will depend upon your budget and what you decide needs to be automated. If you can afford smart devices, you will enjoy added security. Another recent article suggests that one might start out with a digital security system including smart locks and alarms. Smart thermostats are also a good entry point since they should provide a good return on investment. Sometimes you can find yourself bargains as the appended video shows.

`Smart locks` for autos, homes, offices and hotels

I use the term "smart lock" in quotes because some of the keyless electromechanical locks that I discuss in the article may not send alerts about the event it monitors or critical information about the state of the device.

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In a smart home the smart lock would be connected to other devices such as a security camera, a temperature control system, air-conditioning, and so on creating a network of linked devices or part of what is called the Internet of Things, with all the devices being cable of being controlled from a central gateway and remotely through a phone or computer. By smart lock I will mean a lock that operates electrically and often embeds recent technology so that it can do other things as well as lock and unlock things.

As in a traditional lock the smart lock requires both a locking mechanism and a key. The standard lock requires a physical key to unlock the mechanism and also can be used to lock the mechanism. Smart locks do not use physical keys but cryptographic keys that authorise the unlocking or locking process. Until recently mechanical locks were standard on house doors, hotel room doors, and car doors. They are still featured in most homes. However, auto locks have changed drastically.

There is still the key which one inserts in the ignition and turns to start the car but the key is now associated with a fob or remote that can provide keyless entry to unlock the doors or open the trunk simply by pushing a button. The key is called a switch blade key because one can fold it into the fob as a blade in a jackknife can do when not being used. Unlike the older key the new keyless entry system has used developing digital technology to make entry to the vehicle easier. While these are not strictly smart locks, when combined with the features of the fob the auto-key certainly embeds recent technology as compared to the old key which often even involved different keys for ignition, doors, and trunk. Another change with the new fob key is the cost of replacement which can run from about $200 dollars even as high as $600 according to Consumer Reports as it has to be reprogrammed as well as cut.

Hotels have also quickly adapted to newer technology through use of the keycard lock. No longer do you get a physical key when you book into most hotels. You will most likely get a keycard a flat rectangular plastic card with the same dimensions as a credit card. It will usually have a magnetic strip on which a digital signature is embedded which will authorize the opening of the door when the card is swiped. There are different types of these cards. Cards with the Wiegand interface might be considered more like standard smart locks in that they connect to the rest of the entry system. Some new keycard systems use RFID technology that operate to open the lock even when the card gets close to the lock. You don't need a swipe mechanism. Offices often now use key card technology combined with other new technology such as fingerprint, and other biometric technology.

Smart houses will have locks that open using such devices as a cellphone which may have an icon that if pressed opens the lock or one could have a special fob for the purpose as with autos. Usually a key to open the phone can be sent to others electronically. It can be arranged so that the key functions only during the time set by the sender. Many of the locks also are connected to cameras that show people requesting access to a door. There are smart doorbells that allow one to see who and when someone is at the door trying to get in. In many cases combination locks are still used to open doors. There will be a keypad above the lock and a number will be keyed in that will open the door. Although these are keyless they do not represent any use of advanced technologies in themselves although they can be combined with newer technologies.

The several meanings of "digital transformation"

In general the term "digital transformation" refers to the transformation of business including processes, activities and models, through the use of developing digital technologies

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Wikipedia refers to digital transformation even more widely as the change associated with the application of digital technology to all aspects of human society. The use of new digital technology enables new types of innovation and creativity in different areas rather than just enhancing traditional methods. However,Wikipedia also recognizes a narrower sense of "digital transformation" which may just mean "going paperless" and can apply to government, art, medicine and science.

The narrower sense is perhaps closely related to the process of digitization. Wikipedia defines digitization as follows:Digitizing or digitization is the representation of an object, image, sound, document or signal (usually an analog signal) by generating a series of numbers that describe a discrete set of its points or samples. The result is called digital representation or, more specifically, a digital image, for the object, and digital form, for the signal. In modern practice, the digitized data is in the form of binary numbers, which facilitate computer processing and other operations, but, strictly speaking, digitizing simply means the conversion of analog source material into a numerical format; the decimal or any other number system that can be used instead.

Going paperless is just one example of digitization. Documents on paper are scanned to create text files that are digital representations of the original. Of course if a paper document is required a copy can be produced through a printer. Instead of creating a paper document as on a typewriter, text can be typed into a computer creating a digitized file which using a printer can be converted to a paper form. The Gutenberg Project digitizes books so that you do not need to go to the library or buy a paper copy of a book but can access it on line in digitized form and read it on line or download it in a form that can be read on devices such as Amazon's Kindle.

However, digitizing can take many other forms. One can change the music on your cassette tape or vinyl record into digitized forms through computer software. Or one can record not on tape but on your computer in different formats such as .mp3 or the better quality .flac and many others. The same is true of video usually combined with audio in formats such as .mp4 or .mkv and many others. You no longer need VHS tapes or vinyl records, as you can simply go on line and hear any music you want in digitized form or you can subscribe to streaming services. You can go on You Tube and watch whatever you want and download it if you wish to keep it. You can put it on a USB stick, burn it to a DVD and play it back whenever you want without ever having to worry about having a copy as a tape or vinyl record. Even when you watch a TV nowadays you are watching a digitized signal rather than an analog one as used to be the case.

While digitization does transform business and everyday life, digital transformation is usually used to refer to use of digital technology going far beyond digitization. What exactly it means is not clear. Perhaps it can be understood as a series of processes that have what the philosopher Ludwig Wittgenstein called family resemblances. A good way to understand the term is to look at what are regarded as digital transformations in different areas. Digital Journal features an article on digital transformation in power generation and another in health care.

The development of the smart home gives an example of what could be called digital transformation. Home automation or domotics as it is termed technically, involves the control and automation of such functions as lighting, heating, ventilation and air conditioning, but also washers, dryers, ovens and refrigerators. These devices are all connected and controlled remotely often using WI-Fi. All the devices can be controlled remotely using a computer or a smart phone with access to the network to which the devices are all attached. You can turn on your lights or your sprinkler system when you are in another city or country. You can watch what your home security camera sees on your screen. Such a development in technology is transforming far beyond mere digitizing. The home automation market in the U.S. was estimated to be worth $5.77 billion dollars in 2015 and is expected to reach $10 billion by 2020. Some descriptions of digital transformation are quite general and promotional rather than giving any detailed information of what it involves as in the appended video.

Digital Transformation: Five myths

Stephen J. Andriole is a Professor of Business Technology at Villanova University in Villanova, Pennsylvania. Professor Andriole has addressed five myths about digital transformation that could impact how a business goes about transitioning.

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Andriole participated and oversaw digital transformation both in the public and private sector. He served as the director of the Cybernetics Technology Office of the U.S. Defense Advanced Research Projects Agency (DARPA); and as Chief Technology Officer (CTO) and senior VP of Safeguard Scientifics Inc. He was also CTO and senior vice president for technology strategy at Cigna Corp.

Digital transformation is the transformation of business activities, processes and models by the use of digital technologies. Andriole's writes in a recent article that there are five common myths about digital transformation. He notes that many boards of directors and management teams see digital transformation as a way to efficiency, innovation and competitiveness. Andriole says his own experience shows that the path to transformation is a risky one. In the vast majority of cases he says that organizations made significant errors in trying to implement the transformation. The transformation must not only be well-planned and executed but also enthusiastically adopted by upper management.

Andriole teaches and directs research at Villanova on digital transformation and emerging technologies. He collects data about technology adoption and digital transformation trends in the course of his work, lending a great deal of expertise to his discussion on businesses looking to transition.

Andriole claims:I’m constantly hearing about the “amazing,” “fabulous,” “terrific” and “incredible” projects under way with the potential to “revolutionize” companies and “disrupt” whole industries. But when I probe survey respondents for key details about their initiatives, I often find that there is still confusion about the process. To replace this confusion with some clarity, I have distilled my observations and experiences into five myths about digital transformation — each of which has a corresponding reality. If you understand these myths, you’ll be less likely to fall prey to the hype about digital transformation and be more aware of how arduous the process really is.

The first myth is that every company should digitally transform. Not every company, process or business model requires digital transformation. The digital transformation process goes far beyond a simply software upgrade or improvement of the supply chain. It may be a profound shock to a reasonably functioning system. The business must ask if the business processes can be modeled using tools that enable creative, empirical simulations. The company must ask if it can model its existing processes. Andriole claims many cannot. But if you cannot then it is unlikely that you will be able to easily digitally transform all of the processes.

Even if a company could digitally transform its processes does not mean it should. The company should be able to make a case in terms of profit for adopting the digital transformation. If existing business rules, processes, models and systems are working well it makes no sense for the company to digitally transform them. The transformation may be costly and time consuming. No doubt those whose livelihood depends upon marketing and implementing digital transformation will try to convince companies otherwise.

A second myth is that digital transformation gives greater emphasis upon emerging or disruptive technologies. In reality, Andriole claims often the short-term transformation is through more conventional technology. This is because in many cases the existing practices and models of business are outdated. Andriole uses as an example Uber Technologies and Airbnb which have to a degree supplanted hotels and taxis. While emerging technologies may have helped them it was existing technologies, such as mobile phones, apps, and websites that were optimized for quick transactions and location tracking that allowed them to make significant gains over hotels and taxis. These factors helped them offer comparable services to hotels and taxis at lower costs.

The third myth is that profitable companies are the most likely to launch successful digital transformation policies. Adriole argues this is unlikely to be the case. If the company is doing well with its existing processes it is quite unlikely to try out a costly, risky enterprise, that will drastically change its existing system. If some thing is working well, it might be reasonable to make some minor changes but not any wholesale digital transformation. A more likely candidate is a failing company desperate to try anything to get back on its feet. Proponents for digital transformation in a profitable smooth running company are likely to find themselves the object of a political backlash if they try to promote digital transformation. If change is attempted and mistakes are made the promoters will soon be out of the company. Another good candidate for digital reformation are startups with money to burn and which are willing to take risks. It is the newcomers, not well established companies, that are the most likely to adopt digital transformation.

The fourth myth is that companies need to disrupt their industry before someone else does. Yet leading industries in a given market are unlikely to change their business models drastically. While such leaders may describe themselves as innovators and disruptors they usually are not. I presume they may have been such before they came leaders. One might argue though that unless they do change as the proponents of digital transformation argue, they will not remain as market leaders. Those supporting digital transformation may be right. Andriole only is showing that the market leaders are unlikely to change not that they may not need to in time if they do not want to be overtaken by companies that are more willing to take risks. The fourth myth is not really a myth. The myth is that market leaders will adopt technology to disrupt their industry before someone else does.

The fifth myth is that executives are eager for digital transformation. Andriole claims that the actual number wanting such transformation are relatively small especially in public companies. No doubt champions of digital transformation wish this were not so. Andriole claims that many executives are suspicious of digital transformation and worry that the changes might effect their status within the company. They also worry about the complexity of the process and how long they take to execute. Executive of companies that are doing well may be quite unwilling to radically change what is working out well. Even executives who speak favorably about adopting the process may in practice do little to support attempts to implement it. Those within the company who are comfortable with and advocate the new technology may be seen as threats to the present executives.

The champions of digital transformation may have difficulties marketing their wares to many businesses in the face of some of the issues that Andriole describes.