Helping to build the foundation in IoT development.
This customer came to CES to get help starting development of their connected humidity monitoring device and participated in an Adrenaline™ Workshop. After exploring the user, technology, and financial options, the customer ended the workshop ready to move right into Prototype.
The Internet of Things (IoT) promises tremendous value for users and companies. IoT capabilities enable connections to move beyond computing devices and begin to power billions of everyday products from parking meters to home thermostats. But developing a successful IoT solution to capture this value requires an understanding of the end-user, technology, and the business. Our customer, a market leader in humidity control solutions for storage containers, was faced with this exact challenge. The customer’s main product, container and package inserts, help users monitor humidity in the storage of their valuable items from food and tobacco to medical and musical equipment. However, these inserts need to be periodically checked for replacement. The customer’s idea, a connected solution to track humidity and alert the user when it falls outside of set thresholds, has the potential to substantially reduce the possibility for human error. But, the customer was struggling with how to move forward and create an adoptable device and came to CES to help. We invited the customer in for an Adrenaline™ Workshop, a one-day, interactive workshop to jumpstart development by identifying key criteria for the user. Understanding the user and a device’s key criteria helps to clearly define technical and business requirements for the connected solution.
To transform the customer’s idea into a successful solution, a team of our domain and technology experts collaborate with key customer stakeholders. The Adrenaline™ workshop consists of a full day exploring the user, technology, and the business implications of the new device. Building on these insights we collaborate with our customers to develop a clear conception of the device requirements.
The Adrenaline™ Workshop began by diving into the user with a Value Proposition canvas. Key customer segments were categorized by target industry and how each would use and benefit from the device. Creating target subsegments helped the team to pinpoint specific user drivers, clarifying what each user group wants the device to accomplish. Pains and gains were then identified for each segment. This exercise helps the team to focus on solutions that will relieve user pains as well as isolate methods for enhancing product benefits.
The workshop progressed into the Business Model canvas. This canvas identifies specific channel and customer relationship opportunities. The team also explores possible key partnerships that could extend the reach of the brand. For instance, to better reach the musical instruments segment, the customer could partner with a big guitar brand to market to a broader audience.
Next, the team discussed technology options and implications the device, including the network, the cloud, and the applications. Utilizing the user knowledge gained from earlier in the workshop, the team easily identified technology requirements to make faster decisions. For example, Bluetooth Low Energy (BLE) connectivity was chosen over Wi-Fi connectivity because the user doesn’t require real-time updates. Bluetooth connectivity also offered better battery life than Wi-Fi enabled options. An app would be developed for users to check the humidity of their storage container, reorder inserts for humidity control, and set their personal preferences for notifications.
Finally, the team performed a financial simulation to validate the direction of the product. Throughout the day, key criteria are captured as inputs to a full financial modeling tool using a sophisticated Monte Carlo simulation. The results estimate project value based on different adoption rates and volumes to show the customer when they can expect a return on their investment. This simulation also helps provide preliminary price points for the new product, break-even points, average revenue per user (ARPU), as well as key financial metrics Internal Rate of Return and Net Present Value. Most importantly, the financial modeling identifies key risk areas for further exploration and validation through future Prototype and Pilot phases.
CES and the customer completed the workshop with a deep understanding of the device, a preliminary business model, high-level technology infrastructure, and key user profiles conceptualized in clear segments.
We continued to work with the customer on development with the Adrenaline 30-Day Prototype, a physical demonstration of end-to-end connectivity of the device utilizing our IoT Prototype Platform.
The customer specializes in providing humidity controlled solutions for items that are susceptible to damage caused by humidity or lack thereof. This global company works in the food, electronics, tobacco and medical and musical instruments markets where hypersensitive products are common.
- Project Name Connected Humidity Monitoring Solution
- Client LEADER IN HUMIDITY SOLUTIONS