Why do so many companies seem to be sitting on the sidelines when it comes to creating connected products and designing services that tie into them?
In Q3 2016, we surveyed 92 companies active in, interested in, or developing connected products, in collaboration with the design and innovation consulting firm Altitude.
While the majority of respondents told us they were still exploring opportunities and hammering out a strategy, 36 percent said they’d already launched a product. Of the companies that have some experience in the market already, 67 percent described the product as either meeting or exceeding their expectations. Just 18 percent said it had underperformed.
But we also heard about challenges that were keeping more than half of our respondents on the bench, rather than on the field, such as:
- Articulating the ROI or business case
- Understanding the consumer and creating a simple user experience
- Coordinating partners or other players in an ecosystem
- Support or resources from senior leadership
- The need for cultural changes, or the development of new capabilities
- Concerns about data security, usage, and privacy
The results of our survey indicate that there is a major opportunity for internal innovation leaders — whether they work in R&D, strategy, design, marketing, or other groups — to play a role in positioning their organizations for success in the world of connected products and the services that will surround them.
Table of Contents
On the Sidelines, or on the Field? 3
Who Took the Survey? 5
Investment Levels 6
Progress Report 7
Results so Far 8
Measuring Performance 8
What Happens to the Data Generated? 9
Biggest Challenges 10
Success Factors for Connected Products: Today and in 2020 12
The Keys to Creating an IoT User Experience that is Valuable and Meaningful for Customers 13
How Organizations will Need to Change 14
Where are You Looking for Help or Information? 16
How to Identify High-Potential IoT Opportunities 17
Executive Perspectives 19
In Conclusion … 21