The Internet of Things Will Have Arrived When You Don't Even Notice It's There The IoT will be a disappointment if it is just a deluge of smart-phone apps for operating appliances.

By Howdy Pierce

Opinions expressed by Entrepreneur contributors are their own.

There are a lot of breathless predictions about the future of the Internet of Things, or IoT.

According to the pundits, in the not-too-distant future we will live in smart homes and navigate our smart city streets to work in smart offices. All along the way, big-data-driven algorithms will synthesize information across disparate inputs to make our lives easier by automatically controlling all sorts of widgets.

According to industry-watchers, the IoT market has the potential to create an economic impact of $2.7 trillion to $6.2 trillion annually by 2025. Sixty-one percent of executives agree companies that are slow to integrate the IoT will fall behind the competition, and 96 percent of executives expect their business to be using the IoT in some respect by 2016.

By 2022, a typical family home in a mature, affluent market could contain several hundred smart objects. That is, smart in the sense of gaining some level of sensing and intelligence combined with the ability to communicate wirelessly.

Related: What the 'Internet of Things' Means for Enterprising Entrepreneurs

In many cases, this cloud-based information will itself be informed by telemetry from other low-power and inexpensive devices, creating a cross-vendor virtuous cycle. Think of the sprinkler system that doesn't come on in the morning because it knows it's going to rain in two hours, and you start to get an idea of the potential impact the IoT can have.

However, most of the "smart" devices of today are not much more than party tricks. They certainly won't be the drivers of a billion-dollar revolution. If it's going to live up to its promise, the IoT must be more than adding a smartphone-based remote control to an existing device.

One of my favorite examples of a silly feature is a dishwasher that can be remotely started via a smart phone app. That's great, but given the amount of physical interaction required to get a dishwasher ready for that step -- loading the dishes, putting in the soap, closing the door, etc. -- what benefit do consumers really get from walking away and starting the cycle from another device?

For most devices, Internet connectivity just isn't that compelling. Really: How much do I care about my hot water heater? I certainly don't need regular communications with it. I just want to know that it's working.

Your users are already drowning in smartphone apps. With some limited exceptions in the area of lifestyle brands, they don't want more. To fully exploit the promise of the IoT, companies of all types need to think about how to leverage a more subtle use of connectivity into compelling products and services. Resetting the lowly thermostat from my phone is fine, but what if I could receive a text alert when the house is too cold or too hot, when the furnace is running inefficiently or when the furnace filter needs to be changed?

How about linking my thermostat into geofencing to set back the heat when everyone leaves based on smartphone location? It would be helpful if my thermostat could tie into demand response and offer me a discount if I allow my utility to shed electrical load at peak times.

Related: 3 Industries Entrepreneurs Can Disrupt With the 'Internet of Things'

As for the the dishwasher, what if it automatically operated when electric rates are the lowest, alerted me when a drain is blocked or proactively scheduled recommended maintenance? Let's not stop there. The manufacturer could periodically upgrade the software on my device to give me new features and the dishwasher could automatically order detergent from Amazon when it knows I'm running low, based on the number of cycles since the last purchase.

For the strong projected growth to occur IoT technology must evolve the dynamic between people and their things in smart and interactive environments. Product designers and manufacturers have the opportunity to begin creating products that will enhance lives by allowing smart devices to not only interact with the user, but learn, respond, predict and communicate with other devices to understand what is needed before the user even knows.

The IoT is quickly reaching the point at which the future visions promised in a Jetson-esque worldview are becoming realities. Companies that develop smart devices with autonomous operation that create additional value for the end user will be the most successful in the long run.

Related: Want a Piece of the $33B-and-Growing 'Internet-of-Things' Market?

Wavy Line
Howdy Pierce

Co-CEO and Founder of Cardinal Peak

Howdy Pierce is the co-CEO and founder of Cardinal Peak in Lafayette, Colo. His technical background is in multimedia systems, software engineering and operating systems. He was formerly CEO of Vantum Corporation, a venture-backed startup addressing the market for networked video for enterprise applications. He also held various engineering positions at DiviCom, Taligent, the Santa Cruz Operation, and Microsoft. Pierce holds a B.S. in mathematics and writing from Carnegie Mellon University and is a member of the board of advisors for the computer science department at the University of Colorado.

Editor's Pick

She's Been Coding Since Age 7 and Presented Her Life-Saving App to Tim Cook Last Year. Now 17, She's on Track to Solve Even Bigger Problems.
Lock
I Helped Grow 4 Unicorns Over 10 Years That Generated $18 Billion in Online Revenues. Here's What I've Learned.
Lock
Want to Break Bad Habits and Supercharge Your Business? Use This Technique.
Lock
Don't Have Any Clients But Need Customer Testimonials? Follow These 3 Tricks To Boost Your Rep.
Why Are Some Wines More Expensive Than Others? A Top Winemaker Gives a Full-Bodied Explanation.

Related Topics

Legal

How You Structure Your Business to the IRS Can Affect More Than Your Tax Bill. Here's What You Need to Know.

From startup to going public, the business formation structure you choose affects your company in many ways, including how you file your taxes and how much you owe the IRS.

Leadership

The Real Reason Why The Return to Office Movement is Failing is Revealed in New Study

There is a vivid sign of the disconnect between employees and their workplace, a glaring indication that companies need to revise their scripts to improve their hybrid and remote work policies.

Fundraising

Working Remote? These Are the Biggest Dos and Don'ts of Video Conferencing

As more and more businesses go remote, these are ways to be more effective and efficient on conference calls.

Growing a Business

The Best Way to Run a Business Meeting

All too often, meetings run longer than they should and fail to keep attendees engaged. Here's how to run a meeting the right way.

Marketing

8 Ways to Do Big-Time Marketing Without Spending a Fortune

When it comes to building your brand, how you spend your money is at least as important as how much money you spend.

Growing a Business

Subscribers Exclusive Event: Discover How These 2 Founders Turned Their Side Hustle into a Million-Dollar Lifestyle Brand

Learn how you can transform your personal brand into a thriving business empire with co-founders of The Skinny Confidential