Total Home Automation

Running Head: HOME AUTOMATION AND TECHNOLOGY

Total Home Automation and Technology, Inc.

John Spicuzza

MNA 4425

Applied Trimester Project

Phase 3

Due Date: April 26, 2005

Submitted Date: April 26, 2005

Abstract

Total home automation is evaluated for the merits of establishing a like business in Lee County, Florida. Existing businesses and their abilities were compared to this business plan. The impact of growth in Lee County on this type of business is discussed as well as the wants and needs of new home owners. Technological trends in the home automation sector and how it affects the different markets and customers is assessed.

The findings of this paper show that there is a need for a home automation business that would provide a high level of professionalism and quality in Lee County. Studies show the home automation business can be lucrative and profitable in Lee County.

Introduction

The purpose of this paper is to introduce a marketing plan for a new company providing a service that encompasses total home automation. This segment already exists with a growing need for companies that are able to meet the demands of the customer, primarily the builders and the wants of the homeowners they are trying to appease. The primary aspect of the business that is lacking is a sense of professionalism, quality and reliability.

The concept of partnering with a builder, or builders, will become essential in the survival of companies in the field of home automation. The builder, attempting to meet the needs and wants of the new home owner, must have competent and knowledgeable low-voltage companies working with the company through the entire process beginning with the design phase of a project through the move-in phase.

What used to be a very narrow segment of the low-voltage wiring sector that focused on home theater and home audio has expanded into pre-wiring for and providing total home automation. Total home automation includes home theater with surround sound, entire home audio and communications, and home security. The home security segment sold $18.7 billion in 2001 with an estimated 4.3 % increase per year (Business Company Resource Center, 2004, 4). Automatic and remote control of the environmental aspects of the home include lighting, temperature, televisions, stereos, security systems, and lawn sprinkler systems (Shepherd, 2005, pp. 159-160).

Other areas that are common include; remote door controls, video cameras, the Internet, and many other areas still being evaluated. The home theater and home audio segments in Lee County, Florida, are lacking in the quantity and quality of businesses that currently provide this service. With total home automation becoming main-stream, those companies that do not embrace the technology and the demand for its services will not survive. Even with the industry in its infancy, the concept of utilizing home automation is already changing. It is suggested that

wired homes could be replaced with a wireless system that could be the norm in the near future, thus making the technology available to existing home owners as well as new home construction (Rattle, 2004, p. 3).

This paper will examine the demographics that will steer the future needs for this segment, the rapid growth of the new home market, and the markets that demand this type of product. Technology will continue to expand and improve whether people are ready for it, or not. The purpose of this paper is to prove the worth of exploring the potential of starting a business that keeps up with this demand for technology. With this market in its infancy, one must ask if branding will come into play as different manufacturers become involved in providing the needed equipment and supplies. Motorola has introduced an internet based home automation line of equipment with accessories that include turning lights and household appliances off and on, video controllers, and many others (Olenick, 2005, p. 126).

Another area that has not been addressed is the market of maintaining these systems. Companies that provide other essential services will usually have maintenance and repair divisions. There are plumbers that can be called for pipe leaks, computer experts that fix hard drive crashes, and so on. There will be a market for having a maintenance and repair division of the company that provides total home automation that