The Internet of Things from a Consumer Perspective

blogs.oracle.com

Ask an average person what they think about the Internet of Things, and you’ll likely get a confused look. For us who work in technology, the concept means a great deal, as it represents the latest frontier in the opportunity to leverage data and analytics to fuel better business performance.

I raise this distinction simply because to understand how to take advantage of new data sources from sensors and machines, it helps to consider what it all means to the now commonplace mobilized consumer. After all, consumers don’t care about the complexities of a well considered customer experience, but they do recognize a good experience when it happens (and of course bad experiences as well).

The stakes are as high as the hurdles for retailers, and really any business to consumer organization, with respect to the Internet of Things. The use cases in CPG manufacturing and distribution processes are very compelling, for example. From the machines which produce goods and generate data that helps predict and head off maintenance or failure issues, to the flow of tagged goods (via RFID) through the supply chain, and knowing with confidence their quantity and place relative to demand, there are many cases manufacturers are exploring.

Likewise, retailers have the opportunity to pick up where suppliers leave off, and know precisely inventory and shelf position for all merchandise, both in brick/mortar and online stores. With omni-channel shopping a condition retailers are struggling with, this capability is crucial to simply maintaining competitive parity.

The approaches and options to attacking these opportunities vary considerably depending on who you talk to in the technology, data and analytic market ecosystem. Deciding to pilot something new is one thing, but embedding this form of intelligence into a complex and often disconnected business is quite another paved with as much risk as upside potential.

Bringing it back to the consumer, executives need to look beyond the back office use cases and analytics to the impact this all has on their consumer. Mobile is becoming the ubiquitous interface between consumers and their environment, at any point along the path to purchase. New technology like iBeacons get a lot of press due to the ability to connect a consumer to a contextual interaction “on the go,” but there’s a slew of connected devices coming online as well.

Mobile devices are not just for texting, emailing, using apps, and browsing the web, but now serve as the connection point to the consumer Internet of Things – thermostats, household appliances, security systems, automobiles, watches, televisions, and even pantry and household products.

I think the stakes are huge for both retailers and their supplier partners, whether they approach the Internet of Things separately, or in collaboration. Regardless, what’s necessary is the ability to move quickly on the opportunity to connect the tracking of physical goods through the manufacturing, marketing and sales processes, to consumption by consumers. That’s a complex problem for which solutions now exist.

Gartner describes “business moments” as cross-industry collaboration scenarios that provide a differentiated consumer experience that benefits all parties – the consumer and the businesses working together to deliver the experience. Imagine a can of paint knowing it’s nearly empty and your car recognizing when you are going to the hardware store to buy another. Your furnace then becomes part of the conversation, and notifies you to pick up a new filter, while the businesses supporting this experience try to connect you with a location that has both items in stock. A mobile device today and in the foreseeable future is the one place to which all of these interactions point.

It is a somewhat lofty concept requiring a change of mindset for industries such as consumer packaged goods and retail that are often at odds, but makes sense against a backdrop of fickle consumer attention. The most successful business to consumer organizations will come to be defined by the extent to which they can transparently support such complex and differentiated experiences.

For both retailers and CPG manufacturers, the future is nearer than they think, and consumers will come to expect and prefer satisfying experiences unhindered by limits imposed by disconnected business processes. Imagining a mobilized consumer along the path to purchase is a good way to think about The Internet of Things.