IoT Value and Product Strategy · Study deck
IoT History: SHIFT and Resistance
A pump operator hears a proposal for another sensor and asks why the existing maintenance schedule is not enough.
Ada is your guide for this deck.
After studying this chapter
Learning objectives
You will be able to:
- Recognize technical, economic, social, and cognitive resistance.
- Apply the SHIFT proposal framework to an IoT change.
- Explain: The proposal aims to reduce that total to 30 hours in an equally long trial with comparable operating load.
- Explain: If an early warning lets maintenance order a seal before a shutdown, the useful outcome reaches beyond the first alarm.
Major section
Turn the Pump Objection into a Falsifiable Trial
The proposal aims to reduce that total to 30 hours in an equally long trial with comparable operating load.
- The predicted reduction is 40 hours minus 30 hours = 10 hours.
- Relative to the baseline, 10 divided by 40 gives 25%.
- The second-order effect might be better spare-parts planning.
Major section
Turn the Pump Objection into a Falsifiable Trial (continued)
If an early warning lets maintenance order a seal before a shutdown, the useful outcome reaches beyond the first alarm.
- Human behaviour can also change: technicians may inspect an asset only when a warning arrives.
- That shift can help, but missed warnings now matter more.
- Forecast anchoring appears when the team assumes customers will always buy pumps in the same way.
- The opposite error is to assume every customer wants a subscription.
Major section
Turn the Pump Objection into a Falsifiable Trial (continued)
A small site with spare capacity may value fewer visits more than a tiny increase in uptime.
- The raw total meets the target, yet it does not show that failure exposure improved.
- Include those stops when assessing the operational outcome, even if the original proposal mentioned only unplanned losses.
- The trial should test a response, not just count warnings.
- A useful SHIFT proposal names who can act when the new signal arrives.
Major section
SHIFT Proposal Framework
Scenario: Your manufacturing company's VP dismisses a proposal to add IoT sensors to industrial pumps, saying "Our customers have never asked for this." You recognize this as paradigm blindness.
- "We should add IoT vibration and temperature sensors to our pumps, enabling cloud analytics and predictive maintenance alerts.".
Major section
SHIFT Proposal Framework (continued)
Market Risk: If we don't do this, someone else will.
- Tesla didn't wait for customers to ask for OTA updates -- they defined the category.".
- Key Lesson: Paradigm blindness is defeated by reframing around new outcomes (not new technology) and competitive threats (not customer requests).
- The SHIFT framework provides the structure for that reframing.
Major section
Detect Paradigm Blindness
Leadership Objection: "Equipment theft is rare.
- H: Behavior: Customers stop hoarding equipment "just in case" → better utilization across all customers → we serve more customers with same fleet.
Deck summary
Key takeaways
The proposal aims to reduce that total to 30 hours in an equally long trial with comparable operating load.
- If an early warning lets maintenance order a seal before a shutdown, the useful outcome reaches beyond the first alarm.
- A small site with spare capacity may value fewer visits more than a tiny increase in uptime.
- Scenario: Your manufacturing company's VP dismisses a proposal to add IoT sensors to industrial pumps, saying "Our customers have never asked for this." You recognize this as paradigm blindness.
- Market Risk: If we don't do this, someone else will.
Retrieval practice
Recall check 1 of 3
Ada says: answer from memory, then check your reasoning.
Q1In the chapter’s account of the Innovator’s Dilemma, which incumbent incentive can cause a promising new category to be discounted at first?
Show answer
Answer: B Existing customers reward the current offer, while a new category may initially look weaker against incumbent metrics.
Retrieval practice
Recall check 2 of 3
Ada says: answer from memory, then check your reasoning.
Q2A hospital administrator dismisses IoT-enabled hospital beds that monitor patient vitals and auto-adjust position: "Beds don't need to be smart. We have nurses to monitor patients and adjust beds manually. This adds cost without value." Which cognitive mechanism of paradigm blindness does this represent?
Show answer
Answer: C Correct answer is C.
Retrieval practice
Recall check 3 of 3
Ada says: answer from memory, then check your reasoning.
Q3What estimates technical capability and cost before adoption effects, regulation and new uses become clear?
Show answer
Answer: B The initial forecast estimates what the technology can do and cost, but it can miss behaviour, complements, regulation, and new uses.
Q4Complete the smart home automation rule engine:
Show answer
Answer: A dict.get() safely retrieves sensor values. Using callable conditions (lambda) allows flexible rule definitions.
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Answers
Answer key.
- B · Existing customers reward the current offer, while a new category may initially look weaker against incumbent metrics.
- C · Correct answer is C.
- B · The initial forecast estimates what the technology can do and cost, but it can miss behaviour, complements, regulation, and new uses.
- A · dict.get() safely retrieves sensor values. Using callable conditions (lambda) allows flexible rule definitions.