Internet of things is the disruptor which is changing the very landscape of business. It is forcing the traditional businesses to re-think and transform to survive the evolution. IoT is all about innovation and this very innovation is seeping and transforming the business models which is far away from the traditional models which we currently see. In this transforming business landscape, companies working in the IoT product space need to keep three Ss in mind: Sellablity, Sustainability and Scalability.
A highly innovative environment is an incubator of ideas. With every idea, attached is an opportunity to convert the idea into a successful business. At this stage it is very critical to examine and evaluate the idea, upon which rests the success or failure. While the traditional metrices and parameters are not the most appropriate ways to evaluate the idea, it is highly critical to see if the outcome of the idea is sellable or not. Since this will be a new product, there is no existing demand for this product, then how do companies determine if their new product will be sellable or not?
A cash rich company with deep pockets can afford to go about creating the market for the product after the product is launched. But this kind of push strategy is wrong and costly and mostly leads to failure. A simple solution is to look at the business aspect of the product right at the ideation stage. At every stage of the product development, technology and business viability should be weighed equally to evaluate and make a decision. A product needs to solve or address an existing problem or challenge, only then does the product become sellable.
Another important aspect to look at after the sellability is sustainability. Agreed, every product has a life time and eventually products die out once the technology evolves, but it is critical to ensure the product idea sustains the test of time and does not die out even before it starts living. The product needs to find a right balance between being too futuristic and being too obsolete to find acceptance and adoption in the market. Sometimes in case of disruptive products which change the very behaviour of the customers, products find sustainability very easily but such instances are rare. Most products need to work with demand generation and optimum pricing to ensure the product is sustainable in the market and is not a one-time fad.
Scalability is another aspect which is to be kept in mind while ideating the product. Any product which is sellable and sustainable will obviously have good demand in the market. The product needs to have a clear roadmap to ensure it is scalable and meets the rise in demand. This demand could be incremental or exponential depending on how the market is responding to the new products.
Sellability, sustainability and scalability are the three parameters which can be useful in validating the product idea before bringing it into the market.