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LEADER IN HUMIDITY SOLUTIONS // Connected Humidity Monitoring Solution

This customer came to Logic PD to get help starting development of their connected humidity monitoring device and participated in an Adrenaline™ Workshop. After exploring the user, the technology and financial options, the customer ended the workshop and ready to move right into Prototype.

CHALLENGE

The Internet of Things (IoT) promises tremendous value for users and companies as connections move beyond computing devices and begin to power billions of everyday products from parking meters to home thermostats. But developing a successful IoT solution to capture this value requires an understanding of the user, technology, and the business. Our customer, a market leader in humidity control solutions for storage containers was faced with this exact challenge. The customer’s main consumable product, container and package inserts, help users monitor humidity in the storage of their valuable items from food and tobacco to medical and musical equipment. However, these inserts need to be periodically checked for replacement. The customer’s idea, a connected solution to track humidity and alert the user when it falls outside of set thresholds, has the potential to provide user value by reducing the possibility for human error. But, the customer was struggling with how to move forward and create an adoptable device and came to Logic PD to help. Logic PD invited the customer in for an Adrenaline™ Workshop, a one-day, interactive workshop to jumpstart development by identifying key criteria for the user, technical and business requirements for the connected solution.

SOLUTION

To transform the customer’s idea into a successful solution, the team of Logic PD domain and technology experts and key customer stakeholders would spend the day exploring the user, technology and the business implications and requirements of the new device.

The Adrenaline Workshop began by diving into the user with a Value Proposition canvas. Key customer segments were identified by target industry and how each would use and benefit from the device. Creating segments helped the team to pinpoint specific user drivers to get a better sense for what each user group is trying to accomplish. Pains and gains were then identified for each segment. This exercise helps the team to focus on solutions that will relieve user pains as well as isolate methods for enhancing product benefits.

The workshop progressed into the Business Model canvas. This canvas identifies specific channel and customer relationship opportunities. The team also explores possible key partnerships that could extend the reach of the brand. For instance, to better reach the musical instruments segment, the customer could partner with a big guitar brand to market to a broader audience.

Next, the team discussed technology options and implications the device, the network, the cloud, and the application. Utilizing the user knowledge gained from earlier in the workshop, the team was more easily able to identify technology requirements to make faster decisions. For example, Bluetooth Low Energy (BLE) connectivity was chosen over Wi-Fi connectivity because the user doesn’t require real-time updates and Wi-Fi would equate to shorter battery life. An app would be developed for users to check the humidity of their storage container, reorder inserts for humidity control, and set their personal preferences for notifications.

Finally, the team performed a financial simulation to validate the direction of the product. Throughout the day, key criteria are captured as inputs to a full financial modeling tool using a sophisticated Monte Carlo simulation. The results estimate project value based on different adoption rates and volumes to show the customer when they can expect a return on their investment. This simulation also helps provide preliminary price points for the new product, break-even points, average revenue per user (ARPU), as well as key financial metrics Internal Rate of Return and Net Present Value. Most importantly, the financial modeling identifies key risk areas for further exploration and validation through future Prototype and Pilot phases.

RESULTS

Logic PD and the customer completed the workshop with a deep understanding of the device, key user profiles and segments, the high-level technology infrastructure, and a preliminary business model.

Following the workshop, Logic PD continues to work with the customer on development with the Adrenaline 30-Day Prototype, a physical demonstration of end-to-end connectivity of the device utilizing Logic PD’s IoT Prototype Platform.

CUSTOMER PROFILE

The customer specializes in providing humidity controlled solutions for items that are susceptible to damage caused by humidity or lack thereof. This global company works in the food, electronics, tobacco and medical and musical instruments markets where hypersensitive products are common.

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