Business Case for Smart Homes

Abstract

The application of home automation in “smart homes” has been successful from a technological point of view. In practice, however, few projects seem able to survive after the initial financing period has ended, failing to establish a positive business case. This chapter addresses why the positive business case for smart homes is hard to establish. Insight into business cases of smart homes is provided, helping to formulate what could be done to help realize more benefits, thus improving the business case. Before doing so, a definition of a business case is presented. The approach chosen will first focus on the three key effects that interventions in smart homes are likely to have on an aging population that is in need of some form of care. Secondly, it demonstrates how interventions can be observed and reformulated in a societal business case by using two case studies. Finally, the implications on how to successfully launch the business case for smart homes are provided. The chapter is based on relevant literature and practical experiences from working with healthcare providers and SMEs, trying to build positive business cases for smart homes for older adults.