New technologies present businesses with opportunities to craft new value propositions—to change the game by creating new sources of value for their customers, and along the way capture some of this value for themselves in the form of revenue and profits.
The TCS Global Trend Study 2015 reports a 16% revenue increase by companies in areas where IoT was being deployed with around 9% of firms reporting revenue increases in the 60% range. There's a lot of revenue, and profit at stake with the IoT—here's why.
The Internet of Things (IoT) creates new data collection and distribution points everywhere. These end points are becoming an integral part of our global interconnectedness, building real time engagement not just with each other, but with and throughout our surroundings. And it's not just data, it's real time engagement with video, voice, chat, presence, screen sharing and co-browsing. By meshing real time data, with real time information, knowledge and engagement what can't we reimagine and improve upon?
IoT bridges the last mile of real time connectivity. What can we do better, faster and cheaper with this capability? Can we create products that markets find more attractive, increase supply chain and field service efficiency, improve customer service efficiency and the entire customer experience...the use cases are endless. From healthcare, hospitality, industrial machines to consumer products this technology presents unlimited opportunity to reengineer where value gets created, and how it gets captured.
There are BILLIONS of dollars going towards figuring this out from old school industrial companies like GE to the technology innovators like Salesforce.com who announced their IoT Cloud last week.
This technology excels at eliminating massive inefficiencies that exist all over a value chain to release, create and capture value. Always on real time and location specific connectivity requires value propositions to move from periodic interactions to pervasive engagement. But companies have never had the luxury, or burden, of having to engineer and manage their products, services, organizations or customer relationships in this manner.
The TCS Study cites strategic and cultural barriers as the two biggest hurdles to realizing these gains. This technology is roaring ahead, but business is lagging behind. The floundering that's been on display as companies have dealt with real time customer sentiment and feedback for the first time through social media is testament to how far most businesses need to go to deal with a real time world.
The consumerization of expectations has changed what we define as valuable and what we're willing to spend money on. The companies that get this, will redefine their competitive playing field.
IoT is a game changer—revenue, profit and competitive advantage are at stake. You can't spell opportunity without IoT either.