Four industry leaders contemplate the Internet of Everything and its potential to reshape the apartment industry.
Earlier this year, at the Consumer Electronics Show, tech guru and Cisco CEO John Chambers called the Internet of Everything (IoE) the “next big thing” in technology—one that could be five to 10 times more significant than the whole Internet revolution. But what is it?
The Internet of Everything is shorthand for connecting everyday items to the Internet wirelessly. Once connected, they can be monitored from smart phones and tablets, allowing people to remotely perform any number of tasks, from closing the garage door to locating a lost or misplaced item—and much more.
How will this change the apartment business as we know it? We asked four industry tech types to tell us what they think.
This article is excerpted from “Multifamily FourSight,” an NMHC-produced column in which four industry leaders discuss emerging issues in the multifamily industry.
The multifamily industry has never been particularly at the forefront of technological innovation. So, I attended the Consumer Electronics Show earlier this year to get an idea of what we might be missing.
What was clear to me was that the IoE is accelerating the “smart home” trend, where home-automation systems provide residents with increasingly sophisticated monitoring and control over a growing number of in-home devices and systems. Already, we’re seeing major advances in home-monitoring systems and heating and cooling applications.
This technology is being introduced to the expanding appliance world—from the sublime (remotely preheating ovens, and washers with stain-troubleshooting capabilities) to the ridiculous (showerheads with Wi-Fi music).
This smart technology also is paving the way for more customizable home technology that not only monitors and collects information but can adjust based on those inputs. An example is the Philips Hue lightbulb, which is a programmable, color-changing LED bulb that gives users flexibility over the color of light emitted, allowing them to set the right mood for any occasion. And that’s just the beginning.
As the unique customization of consumers’ individual worlds continues to spill over into their homes, there is a real opportunity here for our industry to rethink our product.
Our customers have become used to customizing everything in their lives, and yet we keep giving them almost the same unit layout we did 10 years ago. Our industry has focused on reducing space versus customizing it. Isn’t there a good business case to be made for allowing those who rent from us to better adjust their living spaces to meet their needs?
The Internet of Everything (IoE) has the potential to be a disruptive technology, completely changing the way we think about almost anything. Similar to the way cell-phone GPS is usurping GPS device makers and Uber is upsetting traditional taxi service, IoE will make getting the things we want easier, cheaper, and/or faster.
This leap forward in technology is likely to be useful to residents and operators alike.
For our residents, the IoE means:
- Convenience. I remember the first time I got into a car that started by reading my key fob. The IoE promises some of the same ease of use for entering one’s apartment, the parking garage, etcetera.
- Savings. Imagine if you could turn down your air-conditioning when you leave and turn it back on through a smart-phone app 20 minutes before you come home. You arrive to a cooled home, save money, and feel good about reducing your energy use.
- Cool. We all have friends who just can’t wait for the latest gadget. A segment of consumers enjoys being among the early adopters of new technology.
For multifamily, IoE offers opportunity for:
- Value. By understanding what IoE features residents value most, multifamily firms can ensure that their apartment communities, units, and services fit those needs, creating residents who are more likely to renew their leases.
- Insights. Apartment firms will be able to track entries, exits, and time spent in various parts of the building, helping determine in what facilities and amenities to best invest dollars.
- Branding. Early adoption of IoE can add to a hip brand message. As IoE becomes more common, top brands won’t want to be left behind.
Martin Luther King Jr. paraphrased transcendentalist reformer Theodore Parker when he said, “The arc of the moral universe is long, but it bends toward justice.” I’m reminded of this quote when thinking about technology. However, my paraphrase of MLK would go something like, “The arc of technology is long, but it bends toward progress.”
The idea is that the march of progress is often slow and marked by obstacles, which brings me to IoE. IoE is the next big thing in technology, it’s happening now, and the results will be revolutionary, particularly for those who are in the business of providing homes for people. It will make running our communities and companies easier, safer, and more productive.
Now, let’s talk about those “obstacles.”
Apartment firms collect loads of personal and private information about their residents. With the IoE, apartment firms may end up adding an almost limitless amount of additional personal information to that data bank. We’re talking really personal here, like eating and shopping habits, weight, blood pressure, publication subscriptions, as well as resident movements. None of these is far-fetched, especially with advances in health monitoring.
Now, imagine that information was inadvertently shared or stolen. Perhaps a hacker penetrated your company’s systems. Or maybe a resident lost the cell phone that controls devices in your community. All of this and more could happen as we connect our “everythings” to the Internet and take them mobile.
As the IoE moves from the realm of fantasy to daily reality, we have to acknowledge that there are privacy and data protection risks that we could not have contemplated even a few years ago and have few safeguards or defenses against today.
Earlier this year, at the Consumer Electronics Show, tech guru and Cisco CEO John Chambers called the Internet of Everything (IoE) the “next big thing” in technology—one that could be five to 10 times more significant than the whole Internet revolution. But what is it?
The Internet of Everything is shorthand for connecting everyday items to the Internet wirelessly. Once connected, they can be monitored from smart phones and tablets, allowing people to remotely perform any number of tasks, from closing the garage door to locating a lost or misplaced item—and much more.
How will this change the apartment business as we know it? We asked four industry tech types to tell us what they think.
This article is excerpted from “Multifamily FourSight,” an NMHC-produced column in which four industry leaders discuss emerging issues in the multifamily industry.
Pardon my cynicism, but when the IoE cheerleading is led by tech companies, it all seems a tad self-serving and artificially hyped.
Consider IT research firm Gartner’s Hype Cycle, which places various technologies on a five-phase continuum relative to their market maturity, adoption, and application. The majority of the 48 identified IoE technologies are clustered around the “Peak of Inflated Expectations” phase, indicating technologies that have yet to deliver against high expectations.
Here’s why: Despite the potential benefits of IoE, there is no assured path to bringing those advantages to fruition. Three main challenges exist:
1. Lack of standards. These new technologies require devices to wirelessly connect. However, no single standard communication protocol exists. Within just the “smart home” paradigm, there are ZigBee and Z-Wave technologies. Both can deliver wireless connectivity, but in different ways, so you need to purchase all devices from one brand to ensure they work together.
2. Security. While most people know to dial in the security settings on their Wi-Fi router to prevent access to one’s home network, many may not realize they have to do the same with smart devices.
3. Privacy. Is your smart thermostat communicating when it’s in vacation mode, indicating no one’s at home? Does your smart lock broadcast when people typically come and go? My skepticism is rooted in our ability to responsibly introduce these technologies. In 10 years, perhaps these comments will seem trivial, but today, my advice is to remain vigilant as we wade into this new wave of technologies.
