When Google bought home connected device maker Nest earlier this month for US$3.2 billion, people wondered about the strategy.
The company makes equipment for your nest – get it? – such as wirelessly-connected thermostats and smoke alarms (they can also be used in a business).
But as Erika Morphy writes in CRM Buyer, getting into this market means being part of the larger customer relationship management world. These days many buyers of products that connect to the Internet worry about the privacy of their data. And as the so-called Internet of Things expands, organizations are going to have to think about the trade-offs between a number of competing goals.
For example, despite years of effort few devices are completely plug and play (Exhibit 1: Installing a Wi-Fi router in your home). How much on-site service is your organization willing to offer buyers?
What about security? A recent report claims a compromised Internet-connected refrigerator was one of a number of home devices spewing spam a month ago. Is your organization prepared to handle that?
Morphy’s point is that there’s a CRM angle to the Internet of things that a number of enterprises and entrepreneurs hasn’t thought of yet.
Creating an Internet-connected device by attaching it to a Wi-Fi transmitter or an app that can be used over a smart phone’s cellular network sounds easy. But it may involve lot more effort than you think.