Product Management in the IoT Era

Building IoT products is a fundamentally different challenge than building pure software. The constraints are different, the feedback loops are longer, and the stakes of getting it wrong are higher. Here's what I've learned from years of building connected products.

The Unique Constraints of IoT

Hardware Constraints Are Real

Unlike software, you can't just push an update to fix hardware problems:

• Long lead times – Hardware iterations take months, not days
• Fixed costs – Every component decision has long-term implications
• Physical limitations – Battery life, processing power, and connectivity constraints shape what's possible

The Update Paradox

One of the trickiest aspects of IoT is the update mechanism:

• Updates need to work reliably over potentially unstable connections
• Failed updates can brick devices, creating costly support issues
• Users expect devices to "just work" without manual intervention

Building for Network Effects

IoT products often become more valuable as more devices connect:

1. Data improves with scale – More devices mean better models and predictions
2. Ecosystem lock-in – Integration with other devices creates switching costs
3. Community value – Shared experiences and knowledge benefit all users

Data Privacy: A First-Class Concern

Connected devices collect intimate data about users' lives. This creates both responsibility and opportunity:

• Be transparent – Users should understand exactly what data is collected
• Minimize collection – Only gather what's truly needed
• Process locally when possible – Edge computing can reduce privacy risks
• Build trust – Privacy-respecting products become competitive advantages

Key Principles for IoT Product Managers

1. Think in Systems

IoT products don't exist in isolation. Consider:

• The device itself
• The connectivity layer
• The cloud infrastructure
• The user interfaces (mobile, web, voice)
• The data platform

2. Plan for the 10-Year Device

Unlike software with 2-year refresh cycles, IoT devices live in homes and factories for a decade or more. Build with that timeline in mind.

3. Obsess Over Reliability

Users forgive buggy software because they can restart apps. They don't forgive unreliable hardware. Reliability must be a core product value.

The Future of Connected Products

As we move toward ambient computing, the line between IoT and everything else will blur. The principles that make great IoT products—reliability, privacy, system thinking—will become essential for all product managers.