How to Build a

Successful Digital
IoT Strategy

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Introduction

Traditionally, developing smart and connected IoT systems has been expensive, complicated and risky.
And yet today, more than 60% of companies have planned an IoT initiative.1

Manufacturers are deploying innovative, digital solutions that help optimize existing products and
create new business value. They’re keeping better track of employees and equipment, increasing
safety and health compliance, and boosting operational efficiency for the companies they serve.

At the heart of these IoT systems is a strong and defined product strategy that can be categorized
in a four-phase cycle:

Learn &
Define
Improve

Your IoT
Product

Deliver Validate

Based on market research of dozens of successful IoT deployments, we have compiled a guide to
build and execute a successful IoT product strategy from concept to market.

1
Forbes, “Internet Of Things By The Numbers: What New Surveys Found” (2016).

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Stage 1:
Define
Map your industry to know where it’s going
The first step for determining how you can introduce value with IoT is to know what has already
been done. Mapping your industry allows you to evaluate the IoT technology, products, systems
and services currently on the market and in development. Chart the trends shaping your industry
and expected areas of growth.

Understand the pains of your customers and end-users

Conduct quantitative and qualitative research through interviews, surveys, focus groups or other
feedback forums with your target audience to understand what they want and need. By identify-
ing the frustrations of your customers and end-users, you can better understand which IoT con-
cept to introduce for meeting those needs.

Determine your IoT goals and explore benefits

Clearly outlining your company’s IoT goals helps to define what you want to get out of your
product and what’s needed to reach that point.

IoT offers a range of benefits for consumer and industrial manufacturers - from creating new
business models to strengthening product resiliency and providing data insights to get to know
customers better.

Industrial IoT (IIoT) Consumer IoT (CIoT)

Benefits for manufacturers Benefits for manufacturers

 Improve product resilience Your IoT  Increase product margins

 Reduce maintenance costs Product  Create long revenue streams
 Increase profit margins  Brand leadership & innovation
 Gain visibility into usage  Data-driven product decisions

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For instance, an irrigation company that wants to create new revenue by adding a service to their
existing product, can explore the concept of a smart sprinkler with advanced features unlocked
through a premium app subscription.

Once you’ve determined your IoT business objectives, decide which benefits you want to provide
customers. From improving their operational efficiency to enhancing safety and productivity, the
options are wide and varied.

Industrial IoT (IIoT) Consumer IoT (CIoT)

Benefits for customers Benefits for customers

 Reduce product downtime Your IoT  Enhance user experience

 Improve productivity Product  Improve productivity & safety
 Maximize asset utilization  Trend-setting and cool
 Simplify compliance adherence  Makes their life easier

Get started with what you have

Assess your existing products, systems and services.

Think of whether smart and connected features can provide added value to the things you
currently offer customers. Like sensors that detect when machine parts need maintenance or ones
that monitor hazardous conditions for workers. Make sure to take into account older products and
models that could be revitalized with IoT.

Once you have your initial IoT concepts in mind, begin modeling to visualize how the IoT system
might work, look and act, as well as the data it can deliver. Evaluate, compare, and communicate
the potential of each idea with stakeholders.

Define your requirements, logic and data

With the leading concepts chosen and presented internally, define in detail the requirements and
logic of your IoT system— the device, cloud, app and gateway— which will be communicated to
stakeholders and developers.

Map out a data strategy to determine what information needs to be collected for your company and
for the client, how the data will be managed and the analytical insights that will drive the most value.

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Stage 2:
Validate
Virtually simulate to validate your concepts
To validate your IoT model, in order to ensure that the system’s
logic is sound and complete, you can use an IoT platform to get a
virtual prototype of your system.

Virtual simulation allows you to verify your concept by visualizing

how your device or machine interacts with an app, cloud and
gateway when an event is triggered. Based on the simulation
runs, you can refine the IoT model. The virtual simulator also
makes it easy to communicate your concepts to stakeholders.

Get stakeholder feedback and user buy-in

Your virtual prototype is a valuable tool for collecting feedback from internal
and external stakeholders as well as key customers. A virtual IoT system allows
relevant parties to interact with the system, give their input on the model itself
and become engaged early on.

This step also helps to ensure market fit and to validate the product’s value
proposition. For instance, you can discuss with potential users which features
they find beneficial and which they don’t.

Order a physical prototype

To get a hands-on feel for the product, order a physical prototype for testing
and feedback. Physical prototypes are key for iterating the mechanics of the
product, displaying an early version of the product at trade shows, and ensuring
proper fit to the spec.

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Stage 3:
Deliver
Identify partners, breakdown costs and map timeline
Connecting with the right internal and external partners will have a major impact on the time to
market, quality and costs of your product.

Your team will need to include some or all of the following know-how: hardware, software,
cloud and algorithm development, as well as a prototype supplier, designer, PCBA for electronic
assembly and factory for mass production.

Once you have sourced any external partners needed for your IoT initiative, you can begin
collaborating with your team on breaking down your system into its components and costs to
assess business feasibility. Your partners will also help to determine the timeline for bringing your
IoT system from concept to market.

Execute development
With your winning IoT concept defined, prototyped and assessed for cost feasibility, you can move
ahead with developing the schematics, BOM and PCB layout for the product’s hardware.

Greenlight the chosen app(s) with your developer- whether a web dashboard, tablet, mobile app or
voice-controlled app- and develop the cloud with the right provider for integrating your IoT system.

Go into production
Prepare for production with BOM optimization and addressing any bugs. Complete the testing and
burning tools development, while ensuring that the product meets regulations and has the necessary
certifications.

Move forward with PCB manufacturing, integrating the PCB into the device and finally the package
and delivery of your IoT product.

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Stage 4:
Learn & Improve
Collect and analyze data
Once your product has hit the market, you can learn exactly
how it’s being used by customers for continuous improvement
of your products.

Harness the value of IoT with the right analytics platform for
data insights - like which features users are engaging with the
most, where malfunctions are occurring and how to optimize a
maintenance schedule for reducing upkeep costs.

Plan your next release

Take data-based action for your next product iteration. Leverage insights from your system to
compare usage versus cost and decide which features are worth keeping and enhancing for your
product, and which can be taken out in future versions.

Release system updates to address anomalies before they get noticed by customers, like a bug in the
app or a connectivity issue between sensors.

Build better products

Launch value-added features and services, like an app subscription or automatic technician dispatch,
based on how users are engaging with your products. Improve user experience and increase
adoption with a better understanding of your customer’s wants and needs. Close the IoT product
loop with continuous feedback for making data-driven product decisions.

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 About Seebo
The Seebo Platform simplifies the complex process of ‘going smart’. Product
teams and manufacturers of industrial machinery, commercial equipment, and
consumer goods use Seebo to Model, Simulate, and Deliver smart systems and
products to market. They continue to use Seebo - with its Behavior Analytics -
to learn how the smart product is used in-market and take informed decisions
that maximize product value and margins.

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Visit the Seebo Blog | www.seebo.com | Join an IoT Workshop