6. Phones and apps: Since the user-interface of many connected devices is via smartphones, it is important to choose a platform that can sync with the app and operating system. Both Apple and Android based phones quite often upgrade their operating systems every few months and sometimes these updates can be pretty significant.

7. Algorithms: Ignoring algorithms, aka clever maths, can prove to be risky, as they enable a whole new set of things to be measured and reported, add battery life and the do away with cheaper sensors and components to save money in the long run. For medical devices, the algorithm is often the critical element that yields the diagnostic result or evidence required for demonstrating efficacy.

8. Price and BOM: Partitioning the overall cost of goods sold (COGS) into electronics bill of materials (BOM), materials, manufacturing, packaging and set-up costs is important. Companies need to be careful about going for the cheapest components. The production quantities will have a large impact on the BOM and very high production quantities can give companies increased negotiation power with potential manufacturing partners and component suppliers.

9. Manufacturing: It is important to partner with a manufacturer that has the right skills and equipment for connected devices. The company needs to check who owns the design of the product as this can make it really quite challenging to move to someone else downstream. Caution should be taken, especially if software is involved.

10. Build a Robust Business Model: Whether it is an ambitious start-up or an established business offering a new connected device/system, the value proposition and source of revenue will have a great bearing on the device and application design. A good business model not only guides development budget, but it also dictates operational and maintenance costs which can easily be overlooked.

"We work with a wide variety of clients who want to understand how they can 'get connected' and make the most of the trend of the Internet of Things for their business," said Rob Milner, head of smart systems technology at Cambridge Consultants. "The one thing they all have in common is a desire to provide customers with a differentiated, more intuitive user experience," he added.

"A connected system is a way of increasing a consumer's engagement with a brand and providing additional benefits - either through the device itself or through new services enabled by the data collected via the connected product. This can give significant competitive edge in a crowded marketplace.

"We created this guide to help companies understand the 10 most important things for creating a successful connected device system that will add value to their products and open up new revenue streams. It's been written off the back of our successful product developments for clients around the world, which sometimes involves picking up the pieces of earlier failed attempts by others. We hope this helps companies avoid the most common - and costly - mistakes," Milner added.
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