In the first installment, I defined the Internet of Things and shared a brief history of the developments that hold so much potential―not just for companies but also in how we all approach our lives.
If it still feels as if the Internet of Things is a Spielbergian sci-fi fantasy, consider a couple figures: according to Machina Research, the number of devices with the ability to connect to the Internet will increase from 9 billion in 2011 to 24 billion in 2020. To keep up with this explosion of information, data center service providers have grown at 20 percent on an annual basis in recent years.
As any company can attest, generating a huge volume of information is no feat; turning it into insight, strategy, and action is the real challenge. So how are different industries using the Internet of Things to transform how they do business?
Three industries that are taking the lead
At the forefront of the Internet of Things, automakers are integrating software and sensors to enable cars to communicate with drivers and their environment. Taking the concept even further, Google’s driverless robot cars use onboard cameras combined with information from satellite navigation and onboard sensors to help determine the fastest, safest way to drive.
Utilities are also using the sensors and real-time data to manage distribution and give consumers more control. Electric companies, for instance, are implementing smart meters to monitor energy usage in real time. Similarly, IBM partnered with the local government in Dubuque, Iowa, to install digital water meters and used software to track usage patterns.
The healthcare industry is also embracing devices with sensors to enable the remote monitoring and treatment of patients. It’s easy to envision physicians tweaking drug regimens based on information from device sensors, thereby delivering more effective care without regular follow-up visits. Providers have already grasped the inherent value in this approach: the market for advanced patient monitoring systems is projected to increase from $8.9 billion in 2011 to $20.9 billion by 2016.
Don’t interpret these applications of the Internet of Things as pure altruism: if knowledge is power, progressive companies have the potential to create new offerings based on technology that will improve service levels while reducing overhead.
What impact will these breakthroughs have on consumer expectations?
In past several years, the mass adoption of smartphones and embrace of mobility have given customers unprecedented access to information and made them expect that issues will be resolved in real time. Now just imagine the future: when consumers don’t need to focus on driving their cars or even going to the hospital for a check-up, they’ll have that much more time to focus on the ways in which companies are letting them down. For anyone concerned with customer experience, it’s a chilling scenario.
In the next installment, I’ll talk about how all of these trends will affect the contact center and the shift in mind-set that companies must adopt to prepare for this new world.