  {"id":9767,"date":"2019-11-12T19:50:23","date_gmt":"2019-11-13T00:50:23","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-digit\/submission\/combining-different-data-sources-creatively\/"},"modified":"2019-11-12T19:50:23","modified_gmt":"2019-11-13T00:50:23","slug":"combining-different-data-sources-creatively","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/combining-different-data-sources-creatively\/","title":{"rendered":"Combining different data sources creatively"},"content":{"rendered":"<p>In 2012 Christopher Klein (CEO), Franz Garsombke (CTO), and Matthew Reisman found Rachio in the hopes to commercialize a smart-sprinkler called Iro (Ear-o). Based in Denver, Colorado, Rachio is a hardware and software firm focused on improving the water efficiency of private gardens. Iro, the star product, automatically adjusted customer irrigation systems to improve water consumption according to changes in weather [1]. \u00a0The company mission states [2]:<\/p>\n<blockquote><p><em>\u201cWe believe people want beautiful, meaningful landscapes and also want them to be sustainable. This requires a unique balance of proper vegetation, landscape architecture, infrastructure, and smart controllers. Our intelligent sprinkler controller is just the start. We believe water can be sustainably used throughout our homes. We&#8217;ll continue to build things to ensure it is.\u201d<\/em><\/p><\/blockquote>\n<p>Rachio competes with companies such as Rainmachine, Orbit, Netro, and Hunter in the global smart irrigation controllers\u2019 market. This market is projected to grow by US$1.3 Billion, reaching $2.8 Billion by 2026, and growing at a CAGR of 17.5% from 2018 to 2026 [3; 4].<\/p>\n<p>To sustain its mission, Rachio has raised a total funding amount of $20.5M ($10M &#8211; Series B) from investors since 2014 and has been continuously expanding its market share, including leveraging Amazon to sell its products. To date, Rachio counts more than 50 employees who are working to upgrade its value proposition and to make sustainable domestic water use effortless. Following this principle, Rachio estimates to have saved more than 20 bn gallons of water between 2014 and 2018. CEO and Co-Founder Chris Klein remarked:<\/p>\n<blockquote><p>\u201cRachio is not only saving homeowners frustration, water, and money, we are helping communities conserve water on a much larger scale. With more than 60% of residential water waste in the United States occurring outdoors, our new products empower consumers to be smarter with water, so they don\u2019t have to choose between conservation and easily maintaining a beautiful landscape.\u201d<\/p><\/blockquote>\n<p><strong>Rachio 3 \u2013 Smart irrigation system <\/strong><\/p>\n<p>On March 20, 2018, a new product named Rachio 3 was released and priced for $279.99 on Amazon.<\/p>\n<figure id=\"attachment_9763\" aria-describedby=\"caption-attachment-9763\" style=\"width: 640px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2019\/11\/installing-rachio-3-11.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-9763 size-large\" src=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2019\/11\/installing-rachio-3-11-1024x565.jpg\" alt=\"\" width=\"640\" height=\"353\" srcset=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2019\/11\/installing-rachio-3-11-1024x565.jpg 1024w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2019\/11\/installing-rachio-3-11-300x165.jpg 300w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2019\/11\/installing-rachio-3-11-768x424.jpg 768w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2019\/11\/installing-rachio-3-11-600x331.jpg 600w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/a><figcaption id=\"caption-attachment-9763\" class=\"wp-caption-text\">Figure 1 &#8211; Rachio 3<\/figcaption><\/figure>\n<p>Via a smartphone interface, Rachio 3 allows customers to customize irrigation schedules and consumptions in their gardens. Indeed, Rachio\u2019s app takes the guesswork out of watering by evolving local weather data to determine exactly the days and times for watering based on location, different plant needs, and soil type.<\/p>\n<p>The Amazon-certified sprinkler\u2019s controller plugs into any pre-existing irrigation system, allowing the customer to continue to use the existing sprinkler heads and pipes. It also works with everyone\u2019s favorite smart home system and voice services, including Amazon Alexa. Paul Bernard, Director of Amazon\u2019s Alexa Fund, which has contributed to the Serie B fundraising, revealed:<\/p>\n<blockquote><p>\u201cWe\u2019re excited to make a follow-on investment in Rachio as they continue their growth and innovation in sustainable solutions for the smart home. Hands-free voice control is making the smart home simple and convenient for customers. Rachio\u2019s Alexa skill makes it easy for customers to control their intelligent sprinklers simply using their voice, helping to improve water efficiency in the home.\u201d<\/p><\/blockquote>\n<figure id=\"attachment_9765\" aria-describedby=\"caption-attachment-9765\" style=\"width: 640px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2019\/11\/3-rachio-app-screens.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-9765 size-large\" src=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2019\/11\/3-rachio-app-screens-1024x1024.jpg\" alt=\"\" width=\"640\" height=\"640\" srcset=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2019\/11\/3-rachio-app-screens-1024x1024.jpg 1024w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2019\/11\/3-rachio-app-screens-150x150.jpg 150w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2019\/11\/3-rachio-app-screens-300x300.jpg 300w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2019\/11\/3-rachio-app-screens-768x768.jpg 768w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2019\/11\/3-rachio-app-screens-600x600.jpg 600w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/a><figcaption id=\"caption-attachment-9765\" class=\"wp-caption-text\">Figure 2: Rachio&#8217;s App interface<\/figcaption><\/figure>\n<p><strong>Combining different data sources creatively<\/strong><\/p>\n<p>Going forward with the analysis, Rachio needs to integrate three different sources of data on the whole [2]:<\/p>\n<ul>\n<li><em>Data from products:<\/em> Rachio provides its customers with four types of sensors (i.e. Rain sensors, Soil sensors, Wired Flow sensors, and Flow Meter) which collect data in real-time.<\/li>\n<li><em>Data from enterprise sources:<\/em> this data comes mainly from sales and aftersales, like complaints or reviews.<\/li>\n<li><em>Data from external sources:<\/em> as the weather forecasts or logistics information, they belong to external datasets that the company can access. Data can also be collected and integrated from other home devices.<\/li>\n<\/ul>\n<figure id=\"attachment_9766\" aria-describedby=\"caption-attachment-9766\" style=\"width: 640px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2019\/11\/Screenshot-2019-11-12-at-15.08.05.png\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-9766\" src=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2019\/11\/Screenshot-2019-11-12-at-15.08.05-1024x462.png\" alt=\"\" width=\"640\" height=\"289\" srcset=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2019\/11\/Screenshot-2019-11-12-at-15.08.05-1024x462.png 1024w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2019\/11\/Screenshot-2019-11-12-at-15.08.05-300x135.png 300w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2019\/11\/Screenshot-2019-11-12-at-15.08.05-768x346.png 768w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2019\/11\/Screenshot-2019-11-12-at-15.08.05-600x270.png 600w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2019\/11\/Screenshot-2019-11-12-at-15.08.05.png 1810w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/a><figcaption id=\"caption-attachment-9766\" class=\"wp-caption-text\">Figure 3: Rachio&#8217;s model<\/figcaption><\/figure>\n<p>If we consider this pattern from another angle, Rachio creates value by combining diverse types of data in creative ways to be delivered then as services. That is the reason why customers are buying the product.<\/p>\n<p>However, it is worth noticing that despite the great investment in the variety of services, Rachio doesn\u2019t capture value from the services it provides. In their plug and play model, the customer pays only for the hardware as an entrance fee to join an environment built upon data flows, and that is still free to navigate.<\/p>\n<p>&nbsp;<\/p>\n<p>Sources<\/p>\n<p>[1] https:\/\/www-bizjournals-com.ezp-prod1.hul.harvard.edu\/denver\/news\/2018\/07\/10\/2018-q2-venture-capital-denver-boulder.html<\/p>\n<p>[2] https:\/\/www.rachio.com\/<\/p>\n<p>[3] https:\/\/www-marketresearch-com.prd2.ezproxy-prod.hbs.edu\/feed\/factiva\/display.asp?productid=12668911<\/p>\n<p>[4] https:\/\/www-bizjournals-com.ezp-prod1.hul.harvard.edu\/denver\/news\/2018\/01\/03\/smart-home-tech-startup-raises-a-new-vc-round.html<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Rachio is a company that sells smart irrigation system controllers and creatively combines data from different sources to provide integrated services for its customers.<\/p>\n","protected":false},"author":12584,"featured_media":9770,"comment_status":"open","ping_status":"closed","template":"","categories":[],"class_list":["post-9767","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","hck-taxonomy-organization-rachio","hck-taxonomy-industry-consumer-products","hck-taxonomy-country-united-states"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-digit\/assignment\/competing-with-data\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - 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