Smart products are far more than just a technological gimmick. They’re woven into the fabric of everyday life and industrial operations. They’re helping companies meet the ever-increasing expectations of customers — and today, they must also account for constant advances in data science and AI. But what do these new possibilities mean for manufacturers? And what truly defines a smart product? We’ve distilled the most important insights into five key theses.
Smart products are no longer a thing of the future – for many companies, they’re already part of day-to-day operations. More than that: given their numerous benefits, they’re fast becoming the norm. Smart products drive efficiency, cut costs, increase safety and sustainability, and improve customer satisfaction.
What’s more, the data collected from connected devices can now be interpreted using AI, enabling predictive and adaptive functionality. The result? A new generation of smart products that think ahead, adapt to change, and continuously increase their operational value.
The technology powering smart products is now more powerful and accessible than ever. Cloud platforms like Microsoft Azure and AWS offer flexible, scalable PaaS infrastructures that eliminate the need for large upfront investments. That’s a clear advantage — gone are the days when IoT product solutions lingered in endless proof-of-concept phases. Today, it’s all about concrete business cases and rapid value generation. This is where modern smart product solutions shine: built on modular, cloud-native architectures, they’re easy to scale, adapt to new requirements, and enhance with features and AI services.
The speed at which data can now be analyzed, problems detected, and solutions tested has skyrocketed thanks to AI. But one thing has become clear: off-the-shelf AI rarely delivers the desired results. That’s why at Device Insight, we invest in strategic partnerships — like with Makina Rocks — to co-develop industrial copilots that understand complex instructions and make service knowledge usable through large language models (LLMs).
Smart products often mark the first step on the path to becoming a truly data-driven company. But to fully leverage the power of data, it must be integrated consistently across all relevant systems. From product sensors and ERP or PLM order data to external supply chain inputs — the diversity of these data sources means companies must often reinvent themselves to effectively implement smart products. Sometimes, this reinvention isn’t optional: initiatives like the Digital Product Passport (DPP) are driving companies toward integrated, transparent data ecosystems. But it’s worth the effort. Just look at these examples:
Magirus, the Ulm-based firefighting equipment manufacturer, is combining its mechanical engineering DNA with the power of data. Through digital fleet management, fire departments around the world benefit from improved operational readiness, while Magirus itself reduces costs.
Crane manufacturer Tadano is also harnessing smart product features and real-time data to elevate deployment, maintenance, and service of its fleet to the next level – giving its company motto “Reaching New Heights” a digital twist. The result: greater transparency and efficiency across the entire fleet operation.
Costa Express vending machines are capable of far more than brewing premium coffee. As connected smart products, they continuously collect data and have enabled the company to overhaul processes like picking, monitoring, and remote control.
And, even companies whose IoT initiatives have hit a dead end shouldn’t give up. While some platform providers (like SAP) have exited the market, migrating to future-proof PaaS solutions on AWS or Azure is easier than ever — even for large-scale device fleets and complete systems. We see such transitions not as setbacks, but as major opportunity.
It’s also clear that digital transformation doesn’t come with unlimited bandwidth. Companies can’t chase every emerging trend — and not everything that’s technically possible is also economically viable. Success hinges on a clear focus: what delivers value for your products, your customers, and your business? Our partner Stefan Schweiger, Business Manager AIoT at Bechtle, summed it up perfectly at a recent digitalization event: “It’s not hard to make products smart. The real challenge is making the right products smart.”
As a solution provider and development partner, it’s not just about understanding customer requirements. We also need the ability to abstract, think product- and domain-centric, and sometimes rethink problems entirely. The best solution often isn’t the most obvious one.
Where data is generated, security must follow. Storing and processing data from connected devices — such as in a smart vehicle — can be made secure with a Public Key Infrastructure (PKI) service. Put simply, PKI ensures mutual authentication between the embedded telematics module and the cloud – making sure that all transmitted data is secure. For those wary of complex PKI implementations, lightweight PKI services — like those developed by Device Insight specifically for smart products — offer a practical alternative.
What smart products need above all are protection mechanisms that work seamlessly in both IT and OT environments. And here, a mindset shift is essential. While IT tends to embrace “ship fast, fix later,” the OT world lives by “never touch a running system.” Bridging these philosophies is a must. That’s why we’re developing highly secure, industrial-ready solutions together with partners like Bechtle and Gapfruit. At the heart of these solutions is Gapfruit OS, a next-generation operating system built on a modern microkernel architecture.
The next generation of smart products will emerge wherever data is used intelligently. AI already makes it possible to interpret information from connected products in near real-time — with far-reaching implications, including how we define the “product lifecycle.” Smart products are increasingly able to act proactively and adaptively — not just reactively. This isn’t just a tech evolution; it’s a deep, fundamental transformation. Companies that recognize these signs, invest in the right technologies, and actively shape the change ahead don’t just gain a competitive edge. They redefine what’s possible.
Would you sign on to these five theses — or add your own? We’d like to hear your thoughts.
Delivering excellence in IoT. We are an IoT Solution Provider for Smart Products, Connected Vehicles, Smart City, Smart Energy and Smart Production.
