The global manufacturing business is in the new era of industrial revolution based on digital data across the whole business processes. Internet of Things (IoT) is one of extremely high expected technologies. They contribute product lifecycle management (PLM) process, such as remote monitoring of field service and predictive quality reliability engineering design. However, it assumes significant difficulties for small and medium sized enterprises (SME) to launch rapidly IoT solution for their business efficiency or strategic differentiation. Thus, this paper proposes a pragmatic IoT Innovation workshop approach for such SMEs’ employees. This is as an industry-university collaboration PLM educational program utilizing both design thinking business methodology and commercial IoT application technology hands-on. It also introduces outcomes as a preliminary phase for empirical study on this workshop approach that deployed for a local city in the Far East area.