Five challenges of developing connected products

It’s no secret that IoT has transformed the world with its connectivity. From simple objects such as a smartwatch to a smart city with sensors across all its regions, IoT automation benefits us all. However, studies show that the IoT market is developing more slowly than analysts predicted. How is this possible, given its vast potential? Here’s a snapshot of key challenges manufacturers face when developing connected products.

Challenge 1: developing connected products is harder than it looks

IoT innovation may look easy, but getting connected products to market can prove more difficult than you may think. With a myriad of technologies, devices, applications and management platforms, manufacturing even one device can prove complicated. Building IoT functionality into connected products will take time and will require organisations to rethink their current operations.

When asked which challenges keep organisations from pursuing greater levels of innovation, executives said in a UL Solutions study:

• 63% had concerns regarding the use of open-source resources.
• 59% said there was variability in the digital maturity of suppliers.
• 55% said there was a lack of knowledge of potential risks from inadequate innovation.
• 50% said there were limited innovation facilities and infrastructure.

Challenge 2: product features fail in real-world settings

Manufacturers know that the number, type and purpose of IoT devices expands each year, yet many consumers have had less-than-stellar experiences. Consumers have expressed concerns about potentially fatal consequences if and when glitches occur with IoT devices in their homes and lifestyles. Keep in mind that people buy solutions, not products. These products are intended to work in an ecosystem of IoT devices: each product needs to work seamlessly with every device.

• 83% of consumers worry about losing control of their smart home due to performance problems.
• 62% of consumers worry that connectivity issues will increase as IoT becomes more prevalent.
• 46% of companies consider product reliability the most important buying criteria for technology purchase decisions.
• 21% of consumers abandon wearables due to the devices’ limited functionality and use.

So, why do features fail in real-world settings? A lack of signalling or bidirectional communication between products for collection and routing purposes can contribute to device failure and user frustration. Device configuration can also play a part, with many products still requiring manual configuration, which users can find problematic. As the connected ecosystem evolves, auto-configuration becomes a must-have.

Additionally, as the volume of connected products increases along with increased project activity, server farms become a necessity for handling large amounts of data and integration problems can cause delays and frustration once added into a home setting.

Challenge 3: cybersecurity risk entrenched in daily life

With the need for interconnected systems to communicate and share data frequently, the attack vector for hacking connected products has increased significantly. Cyberattacks are real, and any connected product — from refrigerators to pacemakers — can face hacking threats. Once cybercriminals gain control, they can take over an object’s functionality in seconds or pivot to other products or systems on the network. Instead of leaving security as an afterthought, embed it in the way you build products.

Cybersecurity vulnerabilities in connected systems and devices most frequently result from a lack of security best practices built into product design and implementation. The most common causes generally fall into one of the following five areas: poor product design, non-secure communications protocols, inadequate authentication procedures, limited software updating and improper implementation or device use.

With the average cost of a malware attack on a company estimated to be well over £3,000,000, and 57% of IoT devices are vulnerable to medium- or high-severity attacks, making them easy targets for attackers, it’s an incredibly important issue to keep on top of.

Challenge 4: products fail to work as intended

Many connected products play vital roles in sensitive sectors like fintech, medtech and healthtech, which prioritize physical safety and the protection of personal data needs. The moment a product reaches the customer, it must be flawless. Poorly functioning or poorly managed products can negatively affect brand reputation at best, and in a worst-case scenario, harm the user. Safety should not be limited to end products; safe manufacturing processes should also be kept in mind.

• 81% of consumers said that they need to be able to trust a brand to buy from them.
• 50% of end users are increasingly concerned with the risk of bodily harm from IoT devices.
• 42% of executives expect that the risk of IoT failures will grow in complexity.

Challenge 5: growing uncertainty around regulatory compliance

Uncertainty is growing as regulatory interest in IoT increases globally. Companies are concerned and expect regulations to take precedence over innovation. Current legislative actions focus on securing IoT devices and protecting consumer privacy and data. As safety regulations and requirements can differ from country to country, it’s always advisable to learn about market-specific regulations. Whether cybersecurity, safety, interoperability or wireless, there’s always a global market access component, as region-specific requirements vary from country to country.

With connected products, the challenge is the complexity

As IoT adoption grows, so does the importance of implementing solutions, best practices and controls that can protect the safety, functionality and security of not only devices but the entire connected ecosystem. Companies need to understand what they are making, buying and using. Incorporating connectivity and security into product development along with processes for handling vulnerabilities and managing life cycles and support is critical.