This paper presents a collaborative solution developed to enable people without prior Internet of Things (IoT) knowledge to ideate, conceptualise, role-play and prototype potential improvements to their work processes and environments. The solution, called the Karakuri IoT toolkit and method, was tested in two workshops with eight production leaders at a Swedish manufacturing company. Outcomes were analysed from the perspectives of materials interaction and instruments of inquiry. Results indicate the solution can help people conceive and prototype improvement ideas at early design stages.