Potential growth in IoT (Internet of Things) has led many tech and non-tech industries to enter the Internet of Things business world. As the market is still growing, it is demanding and requires a detailed plan and thoughtful considerations to be successful. Read 4-things to consider before creating an IoT product.

1. 1
4 Things To
Consider Before
Creating An IoT
Product
© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

2. 2
4 Things To Consider Before Creating An IoT
Product
© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.
Many businesses, both in the tech industry and outside of it, are making steps to enter
the world of the Internet of Things. There's good reason for this, as there's a lot of
interest in the technology among consumers and organizations. However, a business
shouldn't jump into developing a new product without a plan. Even current makers of IoT
devices should consider these four things before creating a new device:
1. Cost
The fact that IoT devices run 24/7 means they're more expensive for providers to create
than other products. Not only do companies have to manufacture their products, but they
must run servers and feed information back and forth. They must also continuously work
to improve the device's software, releasing new bug patches and updates.
This means companies have to think a little differently when it comes to funding and
charging customers. An IoT provider can't survive by billing customers a one-time fee.
Instead, they have to operate on a subscription business model. Recurring payments
provide the steady source of revenue necessary to support a product that's always up
and running.

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IoT holds a lot of promise, but businesses need a plan before they start developing.

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2. Target market
When many people think of IoT products, they imagine consumer devices like cars,
refrigerators and thermostats. However, Business Insider predicted businesses and
governments will be the two biggest consumers of this technology. Corporations in
particular believe investing in IoT will lead to increased productivity while reducing
overhead costs.
With this in mind, companies hoping to enter the market should consider which audience
will be better over the long term. IoT solutions for business aren't the flashiest concept,
but they might have a greater impact in the long run than an internet-connected coffee
maker.
"When it comes to
IoT products,
security and
privacy mean very
different things."
3. Security and privacy
As the web developer community Site Point noted, when it
comes to IoT products, security and privacy mean very different
things. When creating an IoT device, businesses must consider
the consequences of poor data security, especially what could
happen to customers if the device gets hacked. This is different
than when a retailer suffers a security breach and card
information is compromised.

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Poor IoT security can have direct, immediate consequences. Consider a smart
thermostat infected with ransomware. A hacker could tap into the system of an elderly
woman and turn up the heat until she paid a ransom, and she could suffer a serious
ailment as a result. Such an attack could even be deadly in the summer.
That's why security should be a top priority before a device is even developed. In
addition, companies should determine whether the device in question needs data that
could potentially violate the privacy of their customers. Fitness trackers, for example,
collect health information protected under the Health Insurance Portability and
Accountability Act. If your device needs sensitive data to run properly, you'll need to
anonymize and encrypt it.
4. Support
No matter how perfectly you design a product, customers will always have questions
about it. Businesses need to make sure they're prepared to handle the influx of questions
related to a particular device as soon as it launches. If support during this crucial time is
subpar, many customers will be upset and cancel their service as a result.
As the Harvard Business Review noted, entering the world of IoT is more demanding
than many executives realize. It requires a detailed plan and careful consideration of
potential markets, how the product will run and what business model will best support it.

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About the Author: Bryta Schulz
Bryta joined Vindicia in 2013 and serves as Senior Vice
President of Marketing. She is responsible for building brand
awareness, creating go-to-market strategy and promotion, and
driving growth. With over a decade of executive level marketing,
product management and PR experience, Bryta has led
marketing teams in enterprise technology and SaaS companies.
Her experience includes heading product marketing at GoGrid,
PGP, RSA and Symantec and business development and
product management positions at Xcert, Thales, and
Persistence Software. Bryta holds a MA in Translation from the
Johannes Gutenberg University Mainz and an MBA from the
University of Reutlingen.
Visit our Blog for more information.

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