Skip to 0 minutes and 8 seconds The Internet of Things is so great because you can come up with so many wonderful applications. At the same time, because it seems to be an easy ride to build a product and business around the IoT, there are so many mistakes you can do. Let me share a few, which we and our peers did, when building IoT companies. First, and that is a massive mistake, we never really talked to clients in the first year of product development. We ended up developing a product which we thought would cover the entire market, but in reality turned out to be totally marginal. Second, for the products we had in mind, our market and revenue analysis was totally off mark.
Skip to 0 minutes and 52 seconds In essence, we grossly overestimated the addressable market. We thought the usefulness of our IoT product were so high that the market would adopt it overnight. Truth is, new markets with unproven business models need time– a lot of time. Third, in the first year, we never really sat down and calculated the cost of the materials for the product, the overheads due to office space, the cost because of customer service, among many other things. In summary, with wrong return on investment models and wrong expenditure models, we actually had no idea about the true revenues of our IoT products. This isn’t a great position to be when starting a high growth business.
Skip to 1 minute and 39 seconds To make things worse, we made a fourth set of mistakes when we became more operational. For example, we fell in love with our technology, being totally blinded by other technology opportunities. We would only start selling when the IoT product was perfect, basically close to never. And we were for too long an engineering company rather than a sales company. It is a miracle we made it. I have, therefore, made it my quest to openly discuss our mistakes, so you won’t make them.
In this video, Mischa discusses some of the challenges his enterprise came up against when first setting up their smart parking solution. Mischa will share more of his technology connectivity experience in Week 2.
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