The first rule of IoT: you do not talk about IoT

The Internet of Things (IoT) is transforming industries worldwide, offering innovative solutions and new business opportunities. However, running an IoT business requires more than just developing connected devices; it demands a strategic focus on value creation, security and seamless integration into customer workflows. At  IoT Stars, a panel discussion took place featuring IoT thought leaders Jaap Groot (Ignion), Ellen Boehm (Keyfactor), Ryan Carlson (Soracom) and Leonard Lee (Next Curve, moderator). 

What does it take to turn IoT innovation into a thriving business? The experts shared their insights on overcoming challenges, creating meaningful value, and driving profitability in the ever-evolving IoT landscape. 

Understanding IoT Businesses

Ryan Carlson emphasized that the concept of "IoT businesses" can be misleading. 

"There are no IoT businesses; there are just businesses,"

Carlson underscored the importance of focusing on the core business value rather than the technology itself. For him, success in IoT lies in understanding the "Play, Potential, and Plan":

Play: Identify what makes your product successful. What makes it valuable to customers?

Potential: Explore opportunities for adoption, scalability, and lateral applications. Can I tweak the software and get into other use cases, adding additional sensing 

Plan: The This is where most companies start. Think of a engineering plan,  deployment plan, or sales plan. However, all of these plans don’t make any difference unless the Play can be properly answered. According to Carlson, the Play is where  people need to spend more time, and that means getting more out in the field, finding out where people have challenges, and where we can remove the friction in a secure way.

Focusing on Use Cases and Value

Jaap Groot advocated for a shift in mindset from technology to value-driven applications. "When I was in the TU in Eindhoven in '89, we put a data center in a truck to do navigation. Today that’s called IoT, but it’s still navigation!". Maybe things haven’t changed too much since then, of course the technology became more sophisticated but the value to the customer is still the same. He emphasized that successful IoT ventures must prioritize solving real-world challenges, generating revenue and ultimately contributing to customer happiness.

Security by Design

As more devices connect to networks, the risk of vulnerabilities increases. Ellen Boehm highlighted the importance of prioritizing security from the outset. "Any of these things that we connect create a weak point in the network," she warned. She urged IoT manufacturers to familiarize themselves with the Cyber Resilience Act (CRA), which will enforce stringent security compliance by 2027. Non-compliance could lead to substantial financial penalties, underscoring the need for updatable software and robust security measures.

Seamless Integration: The Key to Adoption

For IoT to achieve widespread adoption, connected solutions must integrate seamlessly into users' workflows. Carlson noted that the best connected experiences are often invisible, citing the concept of "enchanted objects" as an example. "The very best connected experiences are the ones you don’t even know you’re using," he explained, encouraging IoT developers to move beyond gimmicks and focus on creating meaningful, frictionless user experiences.

Bringing It All Together

Leonard Lee summarized the discussion with a reminder of the ultimate goal: aligning IoT solutions with business priorities. "At the end of the day, it’s all about the business!" he concluded.

The key to success in the IoT space lies in a shift of focus: Stop talking about technology, stop talking about IoT. Talk about the value (or the "Play" as Carlson stated") understanding what makes your solution valuable in the first place while designing for security and ensuring seamless integration.

Upcoming IoT Stars networking events are taking place during MWC Barcelona and Embedded World Nuremberg. Sign up to stay updated about the latest technologies, news and events in the ecosystem.