The Internet of Things : the next big thing for new product development?

More and more physical products have sensors embedded in them and are able to connect to the internet. This network of 'smart products' is known as the Internet of Things. These products create large amounts of data (smart product data) that can provide insight in the product’s environment and use context. Although this data is expected to be of great value for businesses, it is not known how the input of this data affects the key success factors of product innovation in a business context. This research studies how the input of smart product data in the New Product Development process affects the key success factors of the process, namely (1) maximized fit with customer requirements, (2) minimized development cycle time and (3) controlled development costs. By means of a literature study, an expert study and an interview with PostNL, this study was able to answer the research question. Both the 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. However, opinions were more divided about the effect on cost control.