5 Ways The Internet of Things Is Reshaping The World

In a recent blog, I mentioned five emerging technologies that will change the customer experience in the near future. In some cases I believe that this is already taking place, rather than at a distant future date, and the Internet of Things (IoT) is clearly one of those technologies that is already making waves today.

I like the Wikipedia definition wherein the IoT describes an environment where many ‘things’ are embedded with electronics, software, sensors and network connectivity that allow them to collect and share data.  The desired outcome is to create opportunities for a more direct integration between the physical world and computer-based systems resulting in better efficiencies, accuracy, and I believe a better customer experience.  In many cases this communication will be autonomous and not necessarily triggered by human interaction.

To gain a true vision of where IoT can go, we need to think beyond the often cited “connected fridge” example that orders carrot soup when you run low.  Look back at the summary I wrote in my last blog where I said: “The IoT will lead us to an environment where the devices around us can communicate without the need for interaction. For example, your car can be self-diagnosing a possible problem by communicating with the manufacturer directly – the car may even fix itself without the customer ever knowing there was a possible issue. Your home will advise on how you can reduce energy use by monitoring how various devices use power. The IoT will mean that customer service may be involved in your life without you ever personally contacting a brand – the products you own just do it automatically.”

Now that sounds a lot more interesting. According to the industry analyst and research firm Gartner, there will be 26 billion devices connected to the Internet by 2020 – that’s more connected devices than humans on planet earth and this rush to connectivity is because of the push to create an IoT environment. The IoT really started out with the idea that devices like smart electricity meters might be able to broadcast readings automatically rather than needing to be read manually. But this humble ambition has recently accelerated to the point where our homes are starting to resemble what was science fiction just a few years ago.

We are moving into an era where wearables, connected cars, connected homes, and smart cities are becoming an exciting reality. There are enormous opportunities associated with the IoT as it cuts across different business sectors.   Below I mention five key areas that I think are worth watching closely in the near future:

1. Health and Wellness: the opportunities are virtually endless for self-monitoring and self-diagnosis because monitoring tools can work unobtrusively. Think about it, doctors no longer need to rely on frequent tests performed in their office – tests which are commonly delayed by our inability to get into the doctor’s office.  Devices can keep track 24/7.  For example, the new Nintendo health monitor builds upon their experience in gaming with devices such as the Wii. Their monitor can track your health signs without any connections – it just needs to be located in your bedroom.
2. Customer Service: Your car can book a maintenance service based on the vehicle’s needs that you then confirm with the dealer.  Manufacturers are able to remotely diagnose any troubles the vehicle is having before they become a serious issue.  This gives the automakers the ability to become more directly involved with enhancing the buyer’s ongoing customer experience and creates a situation where these objects in our lives start to act like agents.  This also dramatically changes the landscape of customer service that now needs to proactively manage interactions with both the object (in this case, a car) and the customer.  
3. Home control: Products like Amazon Echo are already out there. The connected home is a reality. It may seem like science fiction to be able to control the lights, alarm, or temperature systems using voice commands, but this is a present-day reality. It will become far more common as new homes are planned with a central control system from the ground up.
4. Phones: Our focus today is the phone for all our interactions – both verbal and app-based.  But as wearable technologies become more commonplace, much of our connectivity will be integrated into clothes and functions we previously fulfilled with our smart phones will be relocated to our wearables. 
5. Privacy: This is the one area that could cause major setbacks for brands trying to work with the IoT.  IoT works best when information can be easily created and shared.  But the onslaught of recent database breaches could put a damper on the industry’s enthusiasm for IoT unless IT departments find ways to more successfully battle cyber threats.  

I’m excited about the way brands are considering that the IoT will change the way that they support their products and the opportunities this creates for enhancing the customer experience.

What are the big changes you see that might come about because of the IoT? Leave a comment here or tweet me on @mbowmanmba.

Photo by Peter Miller licensed under Creative Commons.