Smartness must be added to existing products by enhancing data usability and providing distinct value unique to IoT.

What is needed for a product incorporating IoT (Internet of Things) technology to succeed?

The Korea International Trade Association recently introduced five strategies through its report, 'Success Strategies for Smart Products Incorporating Overseas IoT Technology,' including: connecting objects that customers need; providing services tailored just to me; adding smartness to smartness by combining other technologies and infrastructure; inducing the smartification of existing products by enhancing compatibility; and providing economic rewards to customers.

The report, which emphasized the need to enhance data usability, stated that it is important to add smartness to existing products by providing distinct value unique to IoT technology in areas where customers need it, rather than simply applying IoT technology to products.


The travel bag from the US company Bluesmart was designed with the management of lost bags at airports in mind.

First of all, the instruction to connect the objects necessary for customers means identifying the needs of target customers and focusing on satisfying their core desires through IoT. Considering that the smart market is still in the early stages of mass adoption, the point is to secure a market of a certain size by segmenting customers into meaningful units, rather than targeting a tiny minority of customers. While various features can be added through connectivity, it is necessary to focus on core values that encourage continuous usage rather than merely one-time entertainment.

Bluesmart Carry-on, a U.S. company, conceived the product based on the difficulties airline passengers face when using luggage at airports, such as the risk of loss or theft. By attaching sensors and communication devices, the product enables remote locking, location tracking, and weight checking of the bag via a smartphone. If the bag moves away from the user, it automatically switches to a locked state and sends a notification. This product exceeded its fundraising goal on the crowdfunding site Indiegogo, surpassing the $50,000 target and reaching $1 million.

The Hong Kong Arist coffee machine provides coffee recipes tailored to individual tastes.

Second, providing services tailored exclusively to oneself refers to realizing the "Internet of You" by offering customized services based on continuously collected personal data. Through data analysis technology, it stimulates customer motivation to use products by providing recommendation services that match individual preferences and linking them with related offline services. An example of this is the coffee machine (Hong Kong Arist Cafe Machine) that recommends and brews barista-made coffee every morning. The Arist cloud platform contains thousands of coffee recipes created by hundreds of baristas, which are used to automatically brew coffee suited to the user's taste via smartphone. It recommends coffee via morning notification messages and allows users to share recipes with others. This product exceeded its fundraising goal of $1.2 million on the crowdfunding site Kickstarter, reaching $8.45 million.


The doorbell from Chui, a US company, offers various features including a locking function, individual automatic locking, and visit history storage.

Third, there are cases where "smart" is enhanced by combining it with other technological infrastructures. This approach increases product value by applying additional technologies that create synergy beyond IoT technology, and lays the foundation for product expansion through the proactive establishment of infrastructure. Chui (214technologies) in the United States has developed a doorbell that automatically opens the door while distinguishing even identical twins. This product, which allows users to check visitors in real-time or converse with them via smartphone connectivity, utilizes advanced facial recognition technology to differentiate between identical twins or fake authentication attempts using photos or videos, and it can also learn changes in facial features. While competitors only support video verification and locking functions via smartphone, this product enhances the convenience and security of doorbell usage through features such as individual automatic locking, visitor history storage, and blacklist management.

Fourth, we introduce a strategy to induce the smartification of existing products by enhancing compatibility. As an aftermarket-type strategy for smartening existing products, consumers often feel burdened by the need for a new purchase when buying smart products, even if the functions overlap with their existing products. By integrating the smart product with existing items, it functions as a complement rather than a substitute. French company Sen.se has introduced a household object monitoring device that can be attached anywhere, such as bags or toothbrushes. When the sensor-equipped Motion Cookie is attached to an object, it measures the object's movement and temperature, and displays an alert when unusual data is detected. Designed to enable smart functionality simply by attaching it to most everyday items, it can be applied to tracking activity levels and managing daily life for a wide range of age groups, from infants to the elderly.


French company Mother (Sen.se) introduced a household object monitoring device that can be attached anywhere, such as bags and toothbrushes.

Finally, a strategy for providing economic rewards to customers involves offering users financial compensation based on data-driven services. New services are created by integrating IoT technology at the interface that satisfies the demands of both suppliers and consumers, and by providing economic rewards to consumers. A prime example is Marmalade Insurance in the UK, which developed an insurance policy that calculates premiums by evaluating drivers using dashcams. After charging a base premium at the lowest rate, the company analyzes and evaluates the subscriber's driving habits daily via dashcam footage, increasing the premium based on the number of warnings. It notifies subscribers of improvements regarding daily driving records via email or smartphone and, if necessary, provides personalized online driving education to encourage the maintenance of low premiums. It is gaining popularity among young people, such as students starting to drive, and recently, Ford has formed a partnership to subsidize insurance premiums.

Kim Bo-kyung, a researcher at the Corporate Competitiveness Division of the Korea International Trade Association, stated, "For smart products characterized by the continuous collection, storage, and sharing of data, it is not the connectivity itself but the use value created through that connection that matters, and as data is a crucial tool for creating that value, a data-centric approach must be prioritized." She added, "Instead of simply applying IoT technology to IoT products, smartness must be added to existing products by providing distinct value unique to IoT technology in areas where customers need it. To achieve this, the usability of data collected through IoT technology must be maximized by considering aspects such as specifying the data target, strengthening compatibility, and enhancing qualitative value."