We’re entering the age of the Internet of Everything (IoE), which is about connecting the Internet to the physical world (people, process, data, and things). We’re early in the process, with approximately 10 billion devices already connected. By 2020, Cisco projects that this number will reach 50 billion “things.” One of the key areas of impact identified in the Cisco Internet of Everything Economy report, “Embracing the Internet of Everything To Capture Your Share of $14.4 Trillion,” is customer experience. The report estimates that IoE-driven customer experience advances — based on increasing customer lifetime value and growing market share by adding more customers — will drive $3.7 trillion of the estimated $14.4 trillion of IoE Value at Stake globally over the next decade.
IoE is enabling organizations to engage with their customers in whole new ways and to create new business models. IoE is all about making new connections possible: interactions among people, and between people and devices. It’s also about the ability of devices to communicate with each other, with applications, and with digital services, and then empowering those technologies to take action based on these communications.
When more of the world is connected, expect the delivery of your customer experience to shift beyond the boundaries of your current web and mobile sites, and past the walls of your offices and stores. New technologies connected to the Internet — including things like Google Glasses, IP-enabled lightbulbs, new gesture technologies, and sensors — will form the foundation of IoE. However, it is the data stream produced by all of these new connections that will have the greatest impact on your relationship with your customers.
With IoE, you will be better able to build customer loyalty and delight — creating emotional brand connections, personalizing the experience, and targeting offerings based on the data generated by IoE. Just think about what the IoE-powered future might look like across your customer journey.
- Transform the process of building awareness and encouraging purchases,by bringing together data from various sources, including sensors that pick up signals to help anticipate customer needs. Target these customers in real time based on history, location, and activity.
- Apps move from performing cross-brand product comparisons to enabling customers to determine where to find items based on criteria they set, including best price, product ratings, and the most convenient retail location to shop (automatically taking traffic and wait times into consideration).
- Connected vending machines, digital signage, and other surfaces will recognize customers and deliver customized content at the point of need.
- Items will be ordered on — and delivered to — a customer’s mobile phone, wherever it is located.
- Post-sale, connect with the personal side of customers’ lives to help them achieve their goals. This will enable you to add post-sale value to create new revenue streams and drive new insights for innovation. Look for ways to be proactive, anticipate and prevent issues before they happen, or make suggestions that will improve a customer’s life.
- Mobile devices or sensors react to the environment and are set to receive personalized messages placed by you or your customers’ social circles.
- Sensors on clothing monitor customers’ health, enabling them to analyze and collect information about themselves, optimize their personal behaviors, and alert caregivers when there is an issue.
- Connected cars move beyond monitoring an automobile’s performance to collecting data about customers’ driving habits, providing instant insurance quotes, and communicating with things along a route
These capabilities can be offered as services, and the great thing is they can be updated and improved over time. Companies like Nike are already way ahead with products like Nike Fuel. Nike has secured a role in my life around my fitness goals, and given all the history it has collected about me, I am not likely to switch to a competitor anytime soon.
If you want to be in a position to tap in to the potential of IoE, it’s time to get thinking about the role your brand will play in this new world. One of the first steps in designing your customer experience is good information about the needs and trends of your customers. Cisco is helping through primary research such as the Connected Customer Experience Report for Health Care, with more industries to come. Please also follow us on the new Cisco Customer Experience Facebook page and Twitter for updated information.
In Part 2 of this blog series, I’ll provide specific details on how to get started in realizing the benefits of IoE for improving customer experience. In the meantime, I’d love your thoughts on how IoE will redefine customer experience as we know it.
Tags: Cisco, customer journey, customer loyalty, customerexperience, IBSG, Internet of Everything, IoE, value at stake
No one could have imagined the fundamental impact the Internet would have on both society and the economy—changing our lives forever. The Internet has already transformed the way we work, live, play, and learn. And, this is only the beginning.
The extraordinary growth and transformation of the Internet is unprecedented, but what does the future of technology hold, and where is the Internet heading? Business executives, technologists, and policymakers are not only asking these questions—they also are looking for a map of the future that will help them assess changes in the Internet, and possible out-comes and implications of those changes for business, national policy, and regulation.
Recent research by Cisco IBSG has identified 10 major technology trends that we believe are shaping the direction of the Internet today and, most certainly, will change its direction in the future.
- A World Gone Mobile Read More »
Tags: Big Data, Cisco, devices, government policy, IBSG, ICT industry, internet, Internet of Everything, mobile, mobile data, Networks, ott, Service Provider, technology trends
Until recently, the global media industry had been relatively stable, with a robust value chain and well-defined business models.
Today, multiple factors are tearing at the fabric of those finely tuned business models: new players such as Netflix, Hulu, Amazon, and Apple offer consumers new ways of accessing professional video content; technology standards are in flux; and regulatory and macroeconomic factors undermine consumer and investor confidence.
Last week, more than 90,000 media and entertainment officials from 150 countries descended on Las Vegas for NAB Show, the annual National Association of Broadcasters conference. I attended to share some of predictions for the industry that we have developed in the Cisco Internet Business Solutions Group (IBSG). In particular, I spoke at a breakfast briefing for CxO-level executives about the impactful yet uncertain effects of four key drivers—consumer behavior, regulatory changes, technology, and macroeconomics—in an effort to better define their media-industry disruptions: Read More »
Tags: 3D, Cisco, cloud, IBSG, media, media industry, nab, NAB Show, national association of broadcasters, on-demand, service providers, streaming, targeted advertising, user generated content, video
By Uwe Lambrette and Evgenia Ryabchikova, IBSG Service Provider
Cloud is no longer a nascent market. The explosive growth of public-cloud providers —coupled with the relevance of the network in the delivery of cloud and IT services — has led many service providers (SPs) to treat this game-changing transition as a natural extension of their core business. While some SP cloud efforts have fallen short in customer demand and adoption, Cisco’s Internet Business Solutions Group (IBSG) believes there are significant opportunities for SPs in the cloud. To succeed, SPs need to tackle the cloud market in conjunction with a professional-services offer because many enterprises and small and medium-sized businesses (SMBs) do not have all the skills to design, build, migrate, and operate their own cloud solutions.
Based on 15 market interviews in Europe and emerging markets, as well as deep-dive project engagements, Cisco IBSG has explored why professional services are needed, what they should look like, and how they can be implemented. This FastFacts focuses on the SP opportunity to target cloud professional services to SMBs.
SMBs Have Specific Needs for Cloud-Oriented Professional Services Read More »
Tags: Cisco, cloud, IBSG, ICT, Professional Services, service providers, smb
Almost everyone has heard of the “cloud,” as a result of advertising by computer companies and frequent mentions in the news media. “Cloud” refers to technology resources used by an organization that are not at their own location, but available over the global data communications network (otherwise called the Internet). Moreover, the cloud is not just a question of getting access to some big data center in the sky; ultimately, it means gaining authorized access to any data or computing resource that is part of the Internet, and even combining data and software components from physically distant computers.
Public officials may have heard about how the cloud is being used in the public sector. For example, the United States Conference of Mayors had a session on this at its 2011 meeting where various mayors spoke about how their cities were using such services as shared email “in the cloud.” At the National Association of Counties, there have been sessions describing a cloud that is restricted to trusted government agencies at the state and local levels — what some call the “private cloud” because its services are not available to every organization, thus helping preserve the privacy and integrity of government data.
But the reasons state and local government officials might want to use the cloud are not often explained. This post will describe the various ways that the cloud can provide strategic value to state and local governments.
Most people have first heard of the cloud as a means of saving money, which is especially attractive at a time of tighter budgets. So instead of buying hardware and software, a government agency rents what it needs, when it needs it. This approach means you can shift from using bonds and debt service to an approach that matches your IT budget with the real demand each year.
And, often, the software services available in the cloud, such as email, can cost less per employee than licensing equivalent software in-house.
Resilience, Flexibility & Faster Technology Adoption
Potential cost reduction is not all there is to the story. There are other positive benefits as well.
First, cloud enables your government to survive a major disaster, whether man-made or natural. With the cloud, as long as your employees can connect to the Internet, regardless of location, they will be able to continue operations. This is crucial during disasters, when people depend on the government to continue to operate.
Second, the cloud can increase government flexibility. Email is a good example. Email that is hosted in the cloud is available to your employees no matter where they are — on the road or in their normal office. (There are other ways to try to imitate this result, but those approaches are more demanding of your IT staff than using the cloud.) Flexibility also includes being able to respond to peak demand, since resources available in the cloud are vastly larger than any demand your government might require.
The third related benefit is faster adoption of technology. With traditional budgeting approaches, adoption of new technology may not be possible until the last technology investment has been amortized. In the cloud, you can jump on new technologies quicker because that financial obstacle no longer exists.
Collaboration and Data Sharing
The cloud makes it easier to connect from one government agency to another, which means that they can collaborate and share data more easily. This helps break down silos that annoy citizens and make public programs ineffective. (Beyond breaking down silos, the cloud also enables government to reduce or eliminate the duplication of expensive data centers.)
Focus on Citizens
The cloud also helps your staff focus on what’s important. If you do not consider IT to be a strategic tool or core competence of your government, then clearly it makes sense to depend upon the resources of the cloud rather than trying to build equivalent expertise within your own government.
Even if you view IT as a strategic tool — and I hope you do — the cloud enables your IT staff to shift from running data center operations to focusing on services they can deliver to citizens.
The cloud is more than just a good way to save some money; it also has strategic value as a means to govern better.
Stay tuned to the Cisco Government blog for the next installment of the cloud for local government blog series or click here to register and reserve your copy of the complete compilation of the blog series, including this blog as well as a variety of cloud resources, which will be available in May.
To read this blog in Spanish, click here.
Tags: Cisco, cloud, Cloud Computing, collaboration, data, government, IBSG, internet, IT, local, Sharing, state