Last week, Product Realization Group (PRG) hosted our Annual Symposium and BBQ, an event that convenes Silicon Valley’s hardware technology community to learn about the latest trends in new product introduction (NPI) from industry experts. As we collectively sync up our fitbits to our mobile devices or pre-order the new Apple Watch, the choice for this year’s event theme was obvious – “Internet of Things – from Idea to Scale.”

First of all, let’s define this buzzword for anyone still scratching their head about what Internet of Things (IoT) means. According to Wikipedia, IoT refers to the interconnection of uniquely identifiable embedded computing-like devices within the existing Internet infrastructure. That is, everything from heart monitoring devices to smart grid energy solutions to the array of wearables that continues to grow—IoT is truly everywhere. At the Symposium, we were able to break this topic down and explore the market opportunity that IoT has placed on the horizon.

To put it in perspective, consider the following stats:

  • In 2010, there were less than 2 billion connected devices. Today, there are over 8 billion.
  • With the help of new financing models, like crowdfunding, lean product production and hardware have grown from a $1.5 billion industry in 2011 to a $5.5 billion industry in 2013.
  • There are approximately 4 tweets per minute about “IoT” and Google searches about “IoT” have tripled in the last year.

Yes friends, we are at the beginning of a technology revolution expected to grow tenfold by 2020, thanks largely to the fact that by 2020, the average Silicon Valley family is expected to have over 150 connected devices. And that’s just Silicon Valley!

So recognizing the market potential is massive in IoT, where does the hardware startup start? Our expert panel shared some sage words of advice. Some of my favorite takeaways:

“Build trust in what you are building. Prototypes prove your idea can be made.” –Kate Drane, High Tech Hardware Lead, Indiegogo

“Clearly identify your users. A cool idea doesn’t go anywhere without them. We are most interested in companies who have everything else in place and all they need is money.” – Salil Pradhan, Venture Partner, Draper Nexus Venture Partners

“We were naïve and blindly optimistic when we chose to develop hardware technology. But resources exist now to make the journey easier.” – John McGuire, CEO/Founder, Active Mind Technology (Game Golf)

Finally, my own advice:

Develop a Product Roadmap. Be sure to include budget, schedule, resources, and key activities. Companies that do this have a much better chance of going from idea to scale, and hitting the big time!