IoT-Based Minimum Viable Product (MVP) Development

The driving force behind most projects is the market and users. It’s especially true for IoT products, where real-world use throws unexpected challenges, functionality requests, and bug reports — things you might not have expected during development.

That’s why getting your product in front of users as soon as possible is crucial. This initial launch phase, aka the minimum viable product (MVP), is no different for IoT projects. However, with its unique characteristics, launching an IoT-based MVP requires a specific approach.

In this article, we’re sharing insights, recommendations, and steps on how to create IoT-based MVP. We’ll explore how to handle development efficiently, make a lasting first impression on users, and get them hooked on your product — all while making the most of that irreplaceable first interaction.

During the years our IoT department operated, we launched three of our own IoT products and helped multiple clients through the MVP stage.

• Our 2Smart Cloud platform, launched as an MVP, allowed us to collect user feedback and pivot to a new target audience. Ultimately, we transformed it from an IoT product launch platform to a versatile management tool for numerous IoT devices.
• Our ACS system Propuskator started with MVP controller integration into 2Smart Cloud, enabling hardware testing before public release. We then launched a limited-functionality MVP with only 20% of the features successfully fulfilling 80% of the administrator and user needs.
• Our client’s project, MyBox, a car charging station management and monitoring platform, used the MVP stage to collect real-world data and user feedback. We discovered new usage scenarios that influenced further development.
• Our 2Smart Standalone greenhouse automation system, launched as an MVP, leveraged a real-world deployment to grow into a comprehensive device automation and monitoring framework.

These are just several examples that demonstrate MVP’s effectiveness in gathering user feedback and improving IoT products. Read on to learn from WebbyLab’s experience and lead your project to success.

Mobile and desktop interfaces of the Propuskator access control system developed by WebbyLab

IoT-Based MVP Development: Basic Goals

When jumping into IoT-based MVP development, several goals come into play. Businesses typically start their IoT projects at the minimum viable product stage to:

• Test the product’s viability. If you are unsure whether your idea is feasible in the real world, the MVP is a way to go. By deploying your product’s simplified version, you can evaluate its practicality and potential acceptance in the market.
• Spend less money on product development. With an MVP, you focus on the core product functionality only. Therefore, you spend fewer resources than you would when building a full-scale IoT solution.
• Deliver the product faster. An MVP for IoT speeds up your time-to-market. Again, it’s because you’re working on the most critical features and can roll out your product right away.
• Handle initial customer research. Building IoT MVP allows you to research your target market early on. It’s also the way to evaluate user behavior and their first impressions of your product.
• Mitigate the risks beforehand. When working on your MVP, you identify your product’s limitations and challenges early in development. Owing to that, you can change your product strategy and avoid potential setbacks.
• Decide on the business model. An IoT MVP helps you shape your business model. It allows you to review your strengths and weaknesses and find viable revenue streams based on real-world feedback and usage data.

Key Steps to Develop an IoT MVP

Let’s take a look at what developing custom IoT MVP product entails. Here are the core stages you should go through to build your MVP from scratch:

1. Idea Definition and Goal Setting

Determine your IoT project’s value and ensure your MVP reflects it fully. Ask yourself the following questions:

• What users’ problems or pain points can my MVP solve?
• How can my IoT solution benefit end users?
• What unique features can set my IoT product apart from competitors?
• Why should users want to choose my IoT solution over others?
• What are the KPIs that will help me measure the MVP’s value?

Once you’ve answered these questions, focus on this key solution throughout IoT-based MVP development and launch. Additionally, establish clear MVP goals, including:

• User coverage
• Geographical areas
• Criteria for sufficient data collection

That will help you analyze your IoT-based MVP and improve your future decisions.

2. Market Research

The next stage is to find out if your idea aligns with the current market demands. First, ensure you know who your target customers are. Then, study your competitors to improve your MVP strategy further. Your other todo’s at this point include the following:

• Developing a strategic product roadmap
• Considering the key MVP features and architecture
• Handling compliance and regulations research, following GDPR, ISO/IEC 27001, and other legal requirements in your region.

Planning the MVP architecture at this point will reduce the risk of future complications.

3. IoT Component Selection

Next, you should cover what your IoT-based MVP will consist of. The typical hardware components are:

• Sensors — temperature, humidity, light, motion, and others — to collect data about the environment
• Actuators — switchers, motors, valves, and others — to carry out actions following the input received from sensors
• Microcontrollers or microprocessors to process the gathered data and control the IoT device
• Connectivity solutions — cellular, Wi-Fi, Bluetooth, and others — to facilitate seamless data transmission across the IoT system

Decide which physical hardware you’ll use for your custom IoT MVP, considering your project’s specific context. For example, consumer electronics users demand a polished and aesthetically pleasing product in addition to its functionality. Conversely, hardware meant for industrial use or concealed from the end user’s eyes may prioritize functionality over appearance.

While this might seem trivial, it’s crucial to note that the development of casings, packaging, and branding can be both expensive and time-consuming. Making substantial hardware changes post-initial feedback collection could require a costly reset of these efforts.

Plus, consider the software components necessary for the IoT minimum viable product development. These may include:

• Management and monitoring tools — to manage configurations and updates remotely
• APIs — to extend and integrate software that isn’t device-specific with various tools
• User interface — to enable end users to interact with the IoT-based MVP

4. Hardware Design and Development

At this stage of MVP development for IoT, you have two options for hardware design and development:

• Using off-the-shelf components
• Producing the device yourself (or with a manufacturer)

Let’s discuss each approach in greater detail.

Using Ready-Made Components

If possible, use ready-made hardware components for the MVP instead of your own production to save time and money. This strategy is viable if your core product’s value doesn’t rely heavily on the device itself.

When selecting hardware components, strive for a compromise between cost and functionality. Targeting the satisfaction of 80% of critical needs in the initial version is perfect, as attempting to cover every aspect may not bring significant profit at this early stage.

Manufacturing In-House or with a Partner

If your IoT product depends heavily on hardware, carefully select a manufacturer and think through the post-production device testing process. Don’t forget to ask for a detailed IoT project cost estimation. Also, effectively distribute the development and manufacturing teams’ responsibilities during the hardware design stage.

When developing your own hardware, make sure you:

• Determine the business requirements for the device
• Choose suitable components
• Draft the device’s blueprint

 It’s always best to start with a small initial production to test your concept iteratively, identify and correct errors, and make necessary changes. Once you’ve chosen the chip and main components, develop device firmware simultaneously with the manufacturing process. After successfully creating and testing the minimum batch, opt for larger-scale production. This way, you mitigate various manufacturing issues.

It’s also crucial to establish a quality control checklist early before the MVP launch. Every device in production should undergo the QC and receive proper labeling from developers, testers, and manufacturers. This approach is significant during the MVP phase as it enhances the likelihood of a trouble-free production launch.

Additionally, consider packaging, labels, and other details like power supplies at this stage. Your goal is to make a comprehensive product kit, as your product is not just a device — it’s what users will see on the shelves and ultimately purchase.

Let’s now talk about firmware. As we said, you can develop IoT application alongside hardware, which is highly effective. Critical processes to cover here:

• Defining the business requirements for firmware
• Grasping the cloud application’s operation
• Understanding the key device components, especially the chip

Start firmware implementation by connecting it to the cloud if your device isn’t ready yet. Conversely, manage the hardware aspect if cloud development is still in progress.

If you need more information on IoT device production, check out our article on how to launch an MVP of IoT hardware solution.

5. User Interface and Software Development

At this point, you can start IoT-enabled MVP software development. This process includes the following:

1. Planning the MVP architecture if you haven’t done it in the earlier stages
2. Choosing the suitable tech stack
3. Setting up the development environment
4. Integrating IoT devices and sensors
5. Implementing communication protocols
6. Handling data storage and management
7. Covering the necessary security measures
8. Developing the user interface

The ability to receive user feedback is one of the pivotal aspects of an MVP app, offering insights into further full-fledged product development. Consider multiple dimensions of feedback, including:

• User input
• System monitoring
• Sensor and IoT device data analytics
• Vital business metrics collection
• Log, error, and event tracking

Ideally, you should gather a dedicated group of beta users to give feedback on your IoT-based MVP software.

6. Data Collection

Data collection is another critical stage in the MVP development for the IoT process. Make sure you cover the following matters:

• Identifying the data sources (sensors, devices)
• Determining the types of data (environmental data, user interactions)
• Estimate the approximate data volume to prepare appropriate storage
• Streamline data transmission by implementing communication protocols
• Decide on data storage (cloud, device memory)

7. Testing and Iteration

At this point, test your Internet of Things MVP to find issues and bugs. Iterate based on user feedback and performance data to improve your product.

Given that MVPs are typically tested in limited environments, it’s worth preparing for real-world usage conditions without immediate scaling. For example, if you plan to deploy 2,000 devices, it’s wise to calculate and test for peak loads equivalent to those 2,000 users operating their devices online.

This approach doesn’t overlook the importance of scaling. It suggests postponing it to later stages of development. Nevertheless, it’s crucial to thoroughly test your system under peak real-world loads to ensure it can handle the demands of actual users.

8. Deployment and Support

Once you test your minimum viable product, move on to its deployment. This stage typically involves training individuals responsible for IoT-based MVP implementation. It’s critical given that users often struggle with initial device pairing and setup despite clear instructions and intuitive user interfaces.

Address this issue by gathering a dedicated support team and implementation experts to assist users online and offline. Additionally, create a knowledge base and provide helpful materials to enhance the user onboarding process.

9. Monitoring and Maintenance

Finally, monitor your deployed MVP regularly to fix issues and bugs. Also, implement over-the-air (OTA) firmware updates and other maintenance mechanisms to ensure ongoing device upkeep and prevent potential failures.

Most importantly, remember that you can only make a first impression once. Hence, prepare thoroughly and present your best efforts without going overboard to avoid inflating the MVP’s cost unnecessarily.

IoT-Based MVP Implementation Drawbacks

The benefits of IoT-enabled MVP implementation undeniable — cost-efficiency, faster time-to-market, and initial customer research. Yet, there are several challenges you should prepare for:

• Limited functionality. MVPs typically evolve around several core features, which may leave some user expectations unfulfilled at the initial release.
• Data security concerns. IoT devices collect sensitive information, making data security a primary concern. Insufficient protection measures can potentially lead to data breaches and privacy issues.
• Scalability issues. As user bases and IoT data volumes grow, scalability becomes critical. An MVP may not be designed to handle the scaling requirements of a fully deployed IoT solution, which can harm the product’s performance.
• Limited device compatibility. IoT ecosystems may include diverse devices from various manufacturers. Ensuring that all these gadgets communicate effectively may be another challenge.
• Integration challenges. Integrating IoT devices into existing infrastructure or third-party systems can be difficult. Consider data format differences and communication protocols supported.

How Much Does It Cost to Build an IoT-based MVP?

Now that you know about all the IoT-based MVP development process, you may be wondering: what’s the cost of this endeavor? The final price largely depends on the following:

• MVP project scope and complexity — the number of devices, features, and integrations
• Hardware and software — the number of hardware and software components
• Development team — the size, experience, and location of your IoT developers

Let’s say you need to develop a custom IoT MVP product. Here’s the approximate estimate for this solution:

• Hardware — from $10,000, excluding production costs for the first batch of devices
• Firmware — from $5,000, including firmware development and integration with software
• Cloud backend — from $10,000 for setting up and developing a cloud platform for device management, admin tools, and user applications
• Admin panel — from $10,000 per panel for device and user management
• End-user application — from $15,000 for mobile applications on iOS and Android for device control, pairing, and monitoringAs a result, it will take about three months to deliver the IoT-based MVP with the most basic functionality. The IoT MVP cost in this scenario starts at $50,000.

Note that the cost breakdown of IoT-based MVP development can vary based on the specific requirements. Understanding what constitutes an MVP may differ from project to project, so it’s essential to synchronize with the customer to determine their exact needs and objectives. Those could range from showcasing the MVP to investors for fundraising purposes to preparing for a market launch, among other possibilities.

WebbyLab Experience in IoT Minimum Viable Product Development

WebbyLab has firsthand IoT-based MVP development experience, and the Propuskator access control system is one of our best MVP examples. This project’s timeline was as follows:

• 4 months for the cloud and the admin panel’s initial version
• 2 months for mobile app development
• 2 months for device development and basic firmware

The Propuskator project took us approximately six months to reach a launch-ready state, costing around $50,000.

Initially, our vision revolved around the ACS featuring a transmitter with a B2B distribution model and user subscriptions. Our MVP launch unfolded as follows:

• Hardware development. We ordered the initial batch of devices capable of controlling a substantial portion of managed devices. The controller supported label readers of a specific protocol and an exit button, and it solely connected to the network via Wi-Fi.
• Software development. We built an admin panel featuring controller maintenance, access management, user management, and a log of the history of accesses. Additionally, we created a mobile app for users, keeping simplicity at its core. The app enabled users to open access points and incorporated features such as over-the-air firmware updates.
• System configuration. We configured business monitoring for essential metrics and system monitoring.

A mobile app of the Propuskator access control system.

With this setup, we launched the MVP with an affiliated group of users and a single ACS system distributor. Almost instantly, we began receiving feedback and feature requests, which catalyzed a series of subsequent stages. A year post-launch, we achieved the following:

• Expanded the range of controllers to include options for connection via Wi-Fi, GSM, Ethernet, and RS-485
• Universalized the reader connection interface to ensure compatibility with nearly all modern readers
• Added the capability to connect opening sensors, security systems, and protection against incorrect power connections
• Designed special cases and mounting attachments for device installation on a DIN rail
• Created video instructions for device connection and pairing
• Introduced devices equipped with relays for controlling automatic machines via dry contacts, while retaining versions capable of controlling locks using power
• Enhanced the controller firmware by adding numerous settings to facilitate compatibility with various equipment and operating modes
• In the admin panel, addressed the challenge of distributing a large number of labels to over 1,000 residents by allowing administrators to streamline registration and distribution processes
• Enabled user registration in the app via QR codes with admin confirmation
• Implemented access point grouping for streamlined access management
• Expanded notification capabilities for administrators
• Integrated the ACS with video surveillance systems
• Introduced tools for importing resident and label data via CSV and facilitated event log export
• Enabled users to manage access points through IoT voice recognition, phone calls, and a Telegram bot
• Implemented tag management capabilities
• Redesigned the application’s user interface
• Introduced multi-account support, allowing users to oversee multiple ACS systems from one application

Controlling access to several locations via the Propuskator ACS.

These developments are just a portion of the numerous enhancements our company made, each inspired by user feedback. After our initial MVP, we transitioned to a business-driven development approach, actively collaborating with users. This strategy allowed us to grow the product rapidly, supplementing it with valuable features.

Moreover, during our first MVP, we uncovered a distinct niche of B2C users with less extensive functionality needs. It prompted us to develop a B2C solution without subscriptions based on our 2Smart Cloud platform, opening up a new branch of our business.

Remarkably, the first controllers and transmitter instances from our MVP continue to function, emphasizing that an MVP serves as the initial stepping stone toward a fully-fledged product.

Develop Your IoT-based MVP with WebbyLab

MVP development for IoT is a strategic starting point. It ensures you test your ideas with your audience before committing to costly full-scale product creation.

If you’re just embarking on your IoT project and need a team to handle the MVP development, WebbyLab is here to help. Reach out to us and access our profound IoT expertise, proven by numerous successful solutions like Propuskator and 2Smart Cloud.