The Internet of Things (IoT) is one of the key technology platforms for businesses seeking efficiency, automation, and growth. It enables real-time monitoring of production parameters, prevents downtime, improves logistics, reduces costs, and even creates new revenue streams.
Let’s look at the common mistakes companies make when developing IoT devices — and what you should do to ensure your IoT project doesn’t turn into an expensive experiment with no real benefit.
The Illusion Of Simplicity: Underestimating The Complexity Of IoT Systems
IoT is not a single component but an entire ecosystem: device, firmware, communications, cloud infrastructure, interfaces, analytics, and security. Each layer requires careful design, testing, and ongoing support.
A common mistake is to launch a pilot “on the fly” without proper architecture planning, load estimation, or understanding of how the system will behave when scaled. As a result, the pilot works — but the actual project either fails or requires a complete rework.
What to do:
- Perform a system-level decomposition of the project at the concept stage.
- Define who will support each layer of the system — from hardware to visualization.
- Allocate resources not just for development, but also for long-term maintenance and updates. Or engage an embedded development company from the start.
Vague Goals: When A Business Doesn’t Know What It Wants
IoT is not an end in itself, but a tool. If you don’t know why you’re implementing it, you won’t be able to measure results or protect investments. The wrong approach: “We want something with IoT to be innovative.” This type of project is bound to fail: it’s unclear what to measure, how to evaluate the result, and where the value lies.
A good example is a manufacturing company that installed sensors on the packaging line to track stops. This helped identify recurring failures that had not been fixed before, leading to a reduction in equipment downtime.
A bad example is a retailer who decided to “digitalize shelves” without defining what data was needed, how it would be used, and by whom. As a result, the devices were installed, data was collected, but no one used it — the project was frozen after six months.
To define your goals, start by formulating a business hypothesis: What exactly do we want to improve? Next, write down the success metrics — in money, time, and percentages. This will serve as the base for ROI.
The Pilot Is Working, But Scaling Isn’t
The pilot IoT project may seem successful: a small number of devices, a controlled environment, and manual control. But when it comes to scaling, problems arise. Typical failures include a sharp increase in traffic, an overload of cloud infrastructure, and unpredictable communication failures. Sometimes, even the devices themselves are not designed for mass connection and need improvement. To avoid issues when scaling an IoT project, use these tips.
Design architecture “for growth”
Think about scalability at the pilot stage to ensure the system can expand without issues in the future.
Consider scalability parameters
Decide how many devices the system will support and how it will distribute the load across components.
Process of updating and monitoring
Ensure this is addressed at the design stage. Determine how software or firmware will be updated and how the system will be monitored for issues.
Proven technologies
Use them for large-scale systems:
- Fault-tolerant message brokers.
- Cloud platforms with automatic scaling capabilities.
- Logging and alert systems for rapid incident response.
It’s also important to provide scenarios for updates without disrupting operations so that adding new devices or firmware updates doesn’t turn into a mini-crisis.
Safety “Later” = Risks “Now”
Each IoT device becomes a new entry point into the corporate network. If it is not protected, it poses a potential threat to the entire infrastructure. Many companies save on security or postpone it “for later,” especially in pilot projects. This often leads to open ports, unencrypted data transmission, default passwords, and lack of centralized access control.
But even one compromised device can lead to data leaks, production shutdowns, or reputational damage. In 2021, an attack on smart building management systems in a logistics company was recorded — attackers gained access to the internal network through a vulnerability in the ventilation system and disabled the servers.
To prevent this, it is crucial to build security at the architectural level. Use encryption, authorization, secure communication protocols, and access control. And, of course, ensure the possibility of secure updates (OTA) to quickly address vulnerabilities.
IoT Without Integration = Useless Data
Even if devices collect data correctly, it does not benefit the business until it becomes part of the real decision-making process. It is important not just to “read the temperature” or “record the door opening,” but to integrate these signals into existing control systems.
Many companies launch IoT as a “parallel reality” — with separate screens, logins, and reports. But if the logistics manager has to open a new system to check the status of a container, they will either not do it or forget.
Information should flow to where employees already work — in ERP, BI, messengers with alerts, or dashboards. This requires thoughtful integration, format coordination, APIs, and often improvements to older systems. Only then does IoT become a working tool, not a “showcase gadget.”
The Contractor Did Not Pull Through: Partner Selection Error
Choosing a partner for an IoT project is one of the most important decisions. Companies often make mistakes in this area. The most obvious one is selecting based on the lowest price. A cheap contractor may not be able to handle the workload, delay deadlines, or produce a technically unsound result. Often, such teams “specialize” in only one part: for example, they may focus solely on hardware or only on the cloud — and fail to take responsibility for integrating all components into a single solution.
Another common mistake is working with a company that has no experience in your industry. The result is a system that doesn’t consider real processes, doesn’t fit into the infrastructure, or requires a complete overhaul of operations.
It is also worth avoiding contractors who are not willing to share documentation, code, and infrastructure. This creates dependency and hinders future development of the project.
A good contractor:
- Shows live cases, preferably in your or a related industry.
- Understands the chain: from the device to analytics.
- Provides transparent communication, regular reporting, and fast iterations.
- Is ready to exit the project without taking the keys to everything with them.
From Idea To Support: No One Thought About What Would Happen Next
IoT is not a one-time promotion. After implementation, the project must be maintained: devices must be updated, changed, repaired, and reconfigured. However, these processes are rarely prescribed at the start.
Without a well-thought-out lifecycle, the system quickly loses efficiency. Devices start to behave differently, data becomes inconsistent, and confusion arises regarding firmware versions and configurations.
Therefore, already at the planning stage, it is necessary to describe how the software will be updated, who will be responsible for replacing or repairing equipment, what response times to incidents are acceptable, how the device warehouse will be organized, and what disposal or return procedures are in place.
It’s not just “support” — it’s an operating model. Without this, the IoT system becomes a source of constant disruption and manual labor.
Conclusion: Making IoT Work, Not Interfere
The introduction of IoT is not about “installing sensors and seeing what happens.” It’s a strategic decision that requires maturity, both technological and organizational.
To avoid typical failures, a business should:
- Start with a clear business hypothesis and metrics.
- Design the system to scale from day one.
- Integrate IoT into real processes and existing systems.
- Choose contractors with real engineering expertise.
- Provide security, support, and updatability at the architectural level.
Only in this case will IoT become not a toy, but a full-fledged business asset that works, scales, and brings measurable benefits.
