The Internet of Things: The Next Big Thing for New Product Development?

More and more physical products are equipped with sensors or RFID that connect them to the Internet; the network of these 'smart products' is known as the Internet of Things. Connected products generate large amounts of data (smart product data) that can pro-vide insights in the product’s environment and use context. Although IoT data is ex-pected to be of great value for businesses, it is not known how this data affects the key success factors of product innovation in a business context.
By means of a literature study, an expert study and an interview with PostNL this study examines how smart product data as input in the New Product Development process affects key success factors of the process, namely (1) maximized fit with customer re-quirements, (2) minimized development cycle time and (3) controlled development costs.
Both literature and experts agree that smart product data will help maximize the fit with customer requirements by providing extensive customer insight. In addition, the cycle time of the New Product Development process will most likely decrease, according to the literature and experts. However, opinions were more divided about the effect of the input of smart product data on cost control.