Value of IOT

Interestingly a colleague of mine visited my home over the weekend.  They are a leading startup in Bangalore and have recently launched a series of wearable products.

 There was a kids wearable tracking watch, there is a elderly care walking stick, and then there is a pendant locket.   Like all startups the promoters put in their sweat and blood in the development of the products and they are now launching their products.

A few of my friends and relatives places have small school going kids, so we decided to check out how they would buy these gadgets - essentially a watch, a mobile companion app and a back end server eco-system.

In all the cases we highlighted how these devices can help in security of the child, giving real time locations, panic button to contact, fall detection etc. etc. We showed the gadgets and the apps with great passion to all, and then the inevitable question - what is the price.  This is where the faces come alive with a myraid of expressions !

Interesting observations emerged from the interactions:

a. many of the parents first reaction is "not now" - not many valued that safety of the child was that important issue that it warranted an immediate decision on a purchase of such a device or system.  Lets see after some time, is the second most common reason.

b. many of them got focussed on the physical gadget and its pricing, not able to value or see the overall system - "oh made in China, so must be inexpensive"

c. App is almost expected to be "free" of cost, as they are already paying for the hardware.  Services are supposed to be given away as well.

d. compare with other lower cost gadgets or mobile app based solutions and come to a conclusion that it is not worth at this time

e. some are interested but need many more tweaks and features before it is suitable for their use

Out of 10 people we tested , 6-7 were in this category!

What is then the Value of IOT ?

Looks like it is a Perceived value of IOT , and not the real value, just like any other goods and services.

It opens an interesting topic of how to do value selling without being too "salesy" , at the same time be competitive and not get commoditised.

People value more if they connect with the need that is filled by the offering -- its like a newspaper fortune teller column, where you tend to believe it, if two or three days it has matched your situation.

Value selling in IOT also seems to be similar where people connect with what you want to sell .  Say for example recently an elderly person in your home fell down and broke the hip and no one was to attend them.  And few days later we walk in and position our "fall detection" feature , then viola, they seem to connect and lament that if they had this device or watch it would have been useful.

Same thing if their kid was unduly late in the night returning from a friends place, the anxiety is will drive them to pick up a monitoring device.

Value of IOT solutions seem to be determined by the need-ful-ness and not just the mere technology and solutions.

Positioning and articulating value in the IOT solutions is an integral part as much as building the solution itself.

Over a period of time as the customer base matures, the value selling need will come down, but will not be removed completely.

If you are building out an IOT solution, do keep this at the back of your mind!