1

Designing IoT products for success

© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

2

Designing IoT Products For Success

© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

If the recent unveiling of the iPhone 7 has shown anything, it's that people go crazy over

the latest technological innovation. The removal of the headphone jack brought praise,

criticism and more than a few jokes. Meanwhile, some couldn't help but wonder: Is this

change the first step toward an innovative, industry-wide change or a gimmick designed

catch the eye of consumers? Will an iPhone with a missing headphone jack benefit

consumers or quickly bore them?

Like the latest iPhone, new products in the world of the Internet of Things attempt to

innovate the way people interact with their electronics, using a mix of technology and

creativity to design devices that haven't been seen before. Yet, one might wonder

whether these new products aren't simply progress for progress's sake. This idea is what

drives Beko, a Turkish electronics and appliance company, in its product creation. In a

recent conversation with marketing news source The Drum, Ogzu Bayram, Beko's digital

marketing manager, said he and his company believe relying on novelty would bring

about the downfall of the IoT world. Instead, businesses should focus on creating devices

that truly suit people's needs.

What's most interesting is that Beko doesn't rely on what it thinks its customers want.

Instead, it asks them outright and uses their feedback in development.

3 © 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

The Harvard Business Review agreed with this idea, stating

that most failed IoT businesses didn't succeed because they

ignored the needs of their markets and instead focused on

selling tech for tech's sake. One such company, Revolv, was

so focused on introducing new devices that it never made

sure its products actually helped customers.

"Most failed IoT

businesses ignored

the needs of their

customers."

Designing products with purpose in mind

What Beko and similar companies should do is design IoT products for a particular use,

not to cash in on a fad. Not everyone has the resources to survey their customers want

directly, but they can make the most of current opportunities to create something that

fulfills an existing need.

One market currently available to IoT companies is the business sector. In fact, many

industry experts predict businesses, not consumers, will be the primary adopters of IoT

technology over the coming years. Business Insider identified three key ways IoT

products can potentially help these companies: by helping them expand into new

markets, reducing operating costs and increasing productivity.

"Beko are inviting families to help co-create their future appliances through feedback and

pretesting, which will ensure their relevance and meaning," Bayram explained to the

marketing company.

4 © 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

IoT companies can take this idea a step further by creating products specifically suited

for small businesses. These organizations know the IoT can and will offer benefits –

Business Insider cited an AVG survey which found 57 percent of small businesses

believe the IoT will help their bottom line. Yet, because small businesses don't have the

resources of larger corporations, they may perceive barriers to adopting the technology.

One such barrier is cost. New tech is always expensive, and

smaller enterprises don't have large, flexible budgets. IoT

providers can help reduce this burden by using a

subscription business model that incorporates the cost of

building and operating devices into agreeable monthly

payments.

"A subscription

business model helps

reduce the cost of IoT

products."

This way, tech providers receive the funds they need to continue service and store data

while small businesses have an easier time paying for IoT technology.

In addition, IoT products need a design that focuses on user experience, not one that

crams a bunch of features into a single device. These electronics should serve a

particular need, not all of them. Adding too many features is overwhelming for users – in

this case, small-business owners who have a lot on their plate already and often can't be

bothered with a confusing set of instructions.

A customer-focused approach is what will catapult the IoT into the mainstream, not rapid

development. Companies within the industry can certainly take advantage of new

technology to provide to consumers, but they shouldn't sacrifice function in the process.

5 © 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

About the Author: Kevin Cancilla

Kevin Cancilla is Sr. Director of Marketing at Vindicia. He is

responsible for corporate communications, outbound product

marketing, demand generation, sales enablement, website and

content development, and partner marketing. Kevin is an

industry veteran with over 20 years experience in strategic

marketing and product management for enterprise software

companies such as STEALTHbits Technologies, Tripwire,

Epicor, Netcentives, Calico Commerce, Baan, and Adobe

Systems. He holds a BSBM degree in Marketing and Business

Management from the University of Phoenix.

Visit our Blog for more information.

6

Like us on Facebook facebook.com/vindicia Follow us on Twitter @Vindicia Connect with us on Linkedin linkedin.com/company/vindicia

Thank You

© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.