IoT Product Development – Planning Strategically

Ken Figueredo Ken Figueredo
April 19, 2018 IoT & Automation

Ready to learn Internet of Things? Browse courses like Internet of Things (IoT) Training developed by industry thought leaders and Experfy in Harvard Innovation Lab.

The IoT (Internet of Things) has been hugely popularized by companies, such as ARM, Bosch, Cisco, GE and Intel. Their marketing campaigns speak of new and massive business opportunities along with their respective IoT market offers. So what do users of such offers need to know in order to manage their IoT product development plans strategically?

IoT seems like a more popular label than M2M (machine-to-machine). As such, users may conclude that M2M design approaches are perfectly satisfactory. This is a risky assumption. 

M2M solutions typically apply to well-defined, vertical-industry applications. IoT solutions involve interactions across disparate connected devices and other data sources. Devices may connect via different networks and platforms. Applications may also be developed via “mash-up” strategies and across vertical application silos.

Metrics to evaluate IoT and M2M are also different. M2M tends to be valued in ‘numbers of connected devices’ and the ‘average revenue per device’. IoT is quantified by the economic value that is created by eliminating inefficiencies or exposing new value propositions.

IoT product (and service) development can learn from the M2M market. However, long term success is contingent on anticipating new service opportunities. Consider this in terms of four product development stages.
 



 

  1. Adding basic connectivity – this is a decision about adding fixed-network, mobile and/or short-range wireless connectivity to a device and how this is provisioned across one or more network providers.
  2. Integrating managed connectivity – a high quality of service relies on a service management platform to ensure that devices are working properly, that data is transferred effectively and to manage devices remotely.
  3. Implementing a ‘vertical’ M2M application – this may be an asset tracking or machine-health monitoring application which may also be integrated with a company’s enterprise resource planning system.
  4. Anticipating IoT application(s) – here, the value of a connected device is magnified by supplying its data to other applications or because its own performance is enhanced by data from external sources. An example might be an urban, transport management application that makes use of fleet movement, highway traffic and micro-climate data from a weather-services agency.

Most companies get caught up in the first few stages of product development and miss out by not planning for Stage 4 sources of value. In the connected home market, Google’s $3.2bn acquisition of NEST connected home products shows where an IoT mind-set is taking the M2M industry.

The challenge for manufacturers aiming to profit from IoT opportunities is to manage their product development road-map strategically. They have to anticipate solution “mash-ups” and data from different ‘vertical’ silos or third-party sources. 

The supply-side of the IoT market faces its own challenges. Basic connectivity will be commoditised once technology choices are simplified. By then, network and platform interoperability will drive value through new business models based on shared resources and data assets. 

  • Experfy Insights

    Top articles, research, podcasts, webinars and more delivered to you monthly.

  • Ken Figueredo

    Tags
    Internet of Things
    Leave a Comment
    Next Post
    Want to avoid data storms? Lighten your cloud with Fog and Mist computing

    Want to avoid data storms? Lighten your cloud with Fog and Mist computing

    Leave a Reply Cancel reply

    Your email address will not be published. Required fields are marked *

    More in IoT & Automation
    IoT & Automation
    Could the IoT Help End Hunger? Farmers Are Finding Out

    Internet of Things (IoT) gadgets are everywhere. Cars, buildings, roadways, airplanes, home appliances, and other items have tens of billions of sensors, processors, and internet-connected gadgets. IoT devices detect motion, regulate temperature, share and collect data, measure weather, and provide location information, power logistics, and medical research. They also enable self-driving vehicles, to name just

    5 MINUTES READ Continue Reading »
    IoT & Automation
    10 Biggest Opportunities for IoT Innovation in 2021

    IoT is a powerful economic driver. IoT Innovation is actively shaping businesses and consumer trends. Most of the technologies developed before and during the pandemic address the Internet of Things directly or indirectly. From healthcare and retail to automobile and manufacturing, IoT innovations are opening new avenues across industries.  It covers almost every segment of

    8 MINUTES READ Continue Reading »
    IoT & Automation
    10 Things to Consider When Starting an IoT Project

    One of the biggest issues companies face when starting an IoT project is deciding who should be responsible. Should it be the engineering team that is responsible for the core technicalities of the device, or should it be the product management team that is responsible for the end functionalities of the IoT product? Starting on

    8 MINUTES READ Continue Reading »

    About Us

    Incubated in Harvard Innovation Lab, Experfy specializes in pipelining and deploying the world's best AI and engineering talent at breakneck speed, with exceptional focus on quality and compliance. Enterprises and governments also leverage our award-winning SaaS platform to build their own customized future of work solutions such as talent clouds.

    Join Us At

    Contact Us

    1700 West Park Drive, Suite 190
    Westborough, MA 01581

    Email: support@experfy.com

    Toll Free: (844) EXPERFY or
    (844) 397-3739

    © 2023, Experfy Inc. All rights reserved.