IoT: The Solution, Not Just a Trend

Many product teams assume connectivity alone drives demand, but customers purchase solutions to real problems. This article examines how IoT can genuinely add value and offers a framework for deciding when it’s right for your product.

While the Internet of Things (IoT) remains a hot buzzword across industry, tech, and mainstream media, the hype often masks a critical reality: IoT is only valuable when it solves a tangible customer pain point. The industry’s growing reputation as the “Internet of Useless Things” reflects a trend of over‑connected gadgets that lack practical utility.

Product managers must therefore ask: does adding connectivity truly enhance the user experience, reduce cost, or accelerate delivery? If the answer is no, the effort may be wasted. As Des Traynor, co‑founder of Intercom, reminded at the 2016 Mind the Product Conference in San Francisco, technology trends should be adopted only when they enable a better, cheaper, or faster solution for the customer.

IoT Is a Tool, Not a Silver Bullet

In my Stanford Continuing Studies course on Product Management for IoT, I teach an IoT Decision Framework that helps teams evaluate whether connectivity truly meets user needs. Many times, students discover that alternative innovations—such as service redesign or supply‑chain optimization—offer a more effective solution than adding sensors or network modules.

By conducting this early analysis, product teams can pivot before expending resources on a feature that delivers little or no incremental value.

Case Study: Brita Infinity Water Pitcher

The Brita Infinity Pitcher illustrates IoT applied strategically. The core problem was customers running out of filters and forgetting to replace them. Early iterations—stickers and a chip that blinked—failed to address the underlying inconvenience of re‑ordering.

Brita then introduced a smart pitcher that connects to Amazon and automatically orders filters when needed. The solution eliminated the purchase step entirely, delivering true value by ensuring filters arrived on time without customer effort.

Brita’s success underscores that IoT adoption should stem from solving a user problem, not from a desire to showcase connectivity.

The Bottom Line for Product Leaders

Ultimately, the goal is to create products that solve a pain so significant that users are willing to pay. Start by mapping customer needs, then select the most appropriate tool—IoT or otherwise—to address those needs. Early decision‑making saves time, money, and preserves credibility.

I invite you to use the IoT Decision Framework to assess whether IoT is the right fit for your product.

Related article: Internet of Things: A Primer for Product Managers