IoT: Connecting to the Future
A study by Forbes Insights revealed that companies that lead in IoT are seven times more likely to see rapid growth.
Connecting devices, systems and people
IoT (or “Internet of Things”) is the extension of internet connectivity to electronic devices. These devices can share data across a network and be synced with other devices or systems with little to no human interaction. Imagine, your alarm goes off on your smartphone and your coffee maker turns on. Widely used IoT currently includes wearable devices such as the Apple watch and Fitbits.
While IoT has endless lifestyle applications, it has already had a major impact on business. Industrial applications such as engine jets or automated machines connected to an IoT management system can provide floods of real-time data. This data can be used to manage assets and resources, and optimize operations. However, IoT has the potential to extend far beyond this.
The future of consumer IoT is Smart Cities; connected cities with superior technological infrastructure for higher quality of life and sustainability. The idea of Smart Cities is that all things (household appliances, streetlights, cars, etc…) are connected to the internet via sensor technology, generating real-time data that can be analyzed to improve civilian life and effectively manage resources.
Read more on smart cities
The Amazon Prime Era
Another Forbes Insights study revealed that out of 700 executives in the U.S., 63% said their companies were delivering updated services directly to customers due to their IoT capabilities. 94% of them are anticipating a profit boost of at least 5-15% as a result of IoT technologies over the next year. Why? Because IoT greatly increases an organization’s consumer data, increasing opportunities to innovate products and services and deliver superior Customer Experience (CX).
In the Amazon Prime era, CX is more integral to business than ever. From better customer service, to product quality, to convenient delivery and personalized e-commerce, IoT is alowing organizations to differentiate themselves from their competitors.
To give an example, the Amazon Alexa smart speaker can store user data like usage patterns and taste in music, food, politics, consumer goods, or virtually anything they search for. Amazon collects this information to deliver end user benefits such as personalized recommendations and offers.
- IoT improves CX
- Fast delivery has become a crucial part of customer satisfaction. Companies that adopt IoT infrastructures place sensors in the vehicles delivering them and provide real-time location updates. Beyond delivery, IoT enables companies to reduce the cost of storing excess inventory through management systems that use sensors to provide feedback on inventory levels.
- Optimizing products/services
- Data collection is necessary to innovate new products and cater to your customers. It is estimated that by 2025, there will be a 75 Billion connected devices, exponentially increasing a companies’ ability to identify consumer trends, behavior and product performance.
- Personalized communication and strategized marketing efforts
- IoT is all about connection, and not just person-thing connection. In IoT systems, devices and applications form person-person, person-thing, and thing-thing connection. The sensors in consumer IoT products give insights about their usage patterns. Based on this data, companies can create curated messages to clients based on individual preferences and behaviors.
- Simply put, endless consumer and product data equals endless possibilities to innovate.
IoT is allowing businesses to make smarter, more impactful decisions to stay competitive in today’s business climate, where CX is a make or break for consumers.
Click here to see an infographic on how 70% of Fortune 100 companies are innovating with IoT.