Manufacturers expect the extra value of Industry 4.0 as the world is experiencing digital transformation. Studies have proved the potential of the Internet of Things (IoT) for reducing cost, improving efficiency, quality, and achieving data-oriented predictive maintenance services. Collecting a wide range of real-time data from products and the environment requires smart sensors, reliable communications, and seamless integration. IoT, as a critical Industry 4.0 enabler emerges smart home appliances for higher customer satisfaction, energy efficiency, personalisation, and advanced Big data analytics. However, established factories with limited resources are facing challenges to change the longstanding production lines and meet customer’s requirements. This study aims to fulfil the gaps by transforming conventional home appliances to IoT-enabled smart systems with the ability to integrate into a smart home system. An industry-led case study demonstrates how to turn conventional appliances to smart products and systems (SPS) by utilising the state-of-the-art Industry 4.0 technologies.