The Internet of Things is transformative. If your company makes things and it is now making Internet of Things things, it is the “Internet” part that is transformative. Connectivity turns products into something greater than their former selves. In many cases, connectivity enhances consumer value through the addition of features only made possible by an internet connection.
I recently gave a keynote on IoT analytics. In it, one of the points I made was that adding connectivity has the potential to increase the intrinsic value of the product more than the extrinsic value of the product. In other words, the greater opportunity for IoT products is not necessarily in features but in functions, and IoT analytics is a key driver. Direct product usage information enables functionality that was not possible before, and really good information even enables business models that were not possible before.