It is surprising to see how few organizations know exactly what to do with IoT. Are you in the same spot? It is fair to say that the big and well-known tech companies, such as Amazon, Google and Spotify are not representative of the wider landscape of product or service providers.
Clear advantages, but what is the ROI?
There are various reasons why IoT is not yet as heavily implemented compared to Industrial IoT for example. We’ll highlight 3 of them here.
First, consumer goods are extremely diverse which implies that the things you want to measure are diversified as well. So, the building blocks are not as standard, and costs may be higher.
Secondly, the data collected from sensors in a consumer product can be used for multiple purposes, amongst which:
- increasing consumer intimacy – marketing
- introducing new business models – as-a-service (AAS) versus box sales
- product usage analysis for New Product Development (NPD)
Clearly there are great advantages to connected consumer products, but it is not as clear on how to define the ROI of these investments.
Lastly, product development is mostly consumer-driven and, let’s be honest, what is the added value of a connected toaster or a connected bin?
There is a pitfall for connected consumer products to become a gimmick. Luckily the market is becoming more self-aware of this pitfall. We are starting to see solutions with real added value. Great examples are smart healthcare devices for the elderly (fall detection, heartbeat rate) or smart home devices such as connected doorbells, locks, lighting or thermostats. And of course, we can’t forget about connected vehicles too.