Keys to Success in the IoT and Smart Home Market
In a recent “Smart Home Monetization” webinar, Michael Wolf, founder and Chief Analyst of NextMarket Insights, outlined the major foundational technology shifts of the past decade that paved the way to the IoT and smart home market. The five foundational technology shifts he identified are:
– Broadband as a platform
– Moore’s Law
– The low cost of connectivity
– Emergence of the cloud
– Business model innovation
Wolf explained how, despite the obvious convenience that connected products deliver, traditional product manufacturers are struggling to define additional value propositions. More importantly, they need to create the new business models that will monetize these new offerings. Wolf described several IoT markets as on the rise, including security, eldercare, cooking and food, baby care, pet care, insurance and healthcare.
Monetizing the Smart HomeIn the second half of the webinar, Rod McLane, Senior Director of Product Marketing for Ayla Networks, advised manufacturers to follow these four keys to success in the IoT:
Key #1: Identify specific use cases and uncover the true value of your product.
Key #2: Focus on looking at the entire system as opposed to simply the product and its functionality.
Key #3: Treat your connected product like a whole new category, as opposed to a new feature added to your existing products.
Key #4: Instead of over-engineering your first IoT product, strive for a “minimum viable product” that delivers a core element of product functionality. Then, leverage the power of the cloud and the usage data generated by the connected IoT product to iterate and add new functionality in subsequent versions of the product.
McLane added that Ayla solves the technical details of the IoT so manufacturers don’t have to. Manufacturers are good at what they do — making appliances or HVAC systems or thermostats — but the IoT is not their expertise. They need to be able to have a secure, well-performing, configurable, end-to-end IoT platform that adds connectivity and all that goes with it to their products. That way, they can get better connected IoT products to market quicker.
Both Wolf and McLane emphasized that IoT connected products and systems are opening the door to additional services and business models that will transform even the most mature of markets. And, that is the true IoT opportunity for manufacturers.
Guest post by Ayla Networks. Find them at Booth 250 at the IoT Tech Expo in Santa Clara, CA on October 20-21st 2016.
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