Our world is rapidly connecting people, process, data, and things in ways that were unimaginable just a few years ago. The Internet of Everything (IoE) is at the heart of this transformation.
As more dark assets are “lit up,” organizations will receive an influx of valuable data that can lead to insights, knowledge, and opportunities. However, much of the data generated will be just beyond reach, frequently referred to as “dark data.” Read More »
Tags: Big Data, dark assets, dark data, Internet of Everything, internet of things, IoE, IoT, Joseph Bradley
“Let the buyer beware” is a sentiment that dates back well before consumer protection and truth-in-advertising laws. Yet, the issue of trust continues to permeate all areas of society today. A few weeks ago, I wrote about the “trust cliff” that affects the amount of information consumers are willing to share with retailers in order to have more relevant interactions.
Now, a new Cisco study on retail banking in 12 countries reveals a different kind of trust problem: consumers are getting less value than they expect from their banks, and this “value gap” is impacting customer trust.
The global financial crisis of 2007-2008 greatly damaged consumer trust in financial institutions, and brand equity has fallen along with it. In 2009, one year after the financial crisis, the world’s top 500 brands saw the value of their brands drop by 32 percent. For many banks, their brand value has yet to recover from pre-crisis levels.
But the roots of distrust go deeper than that. Our study shows that there is a fundamental disconnect between banks and their customers, and many customers no longer look to their banks to help them meet their financial goals. In fact:
- 43 percent of customers say their bank doesn’t understand their needs
- One in four would choose another provider for their next account or service
- Only 40 percent of respondents worldwide turn to a financial professional for advice, and of these, 28 percent believe the advice is ineffective
Meanwhile, a growing cadre of disruptive “non-bank” innovators is exploiting this value gap between banks and their customers. They range from technology companies such as Apple and Google, to retailers such as Amazon.com and Tesco, to mobile and digital-only banking services, payment companies, and automated investment services. A surprising 80 percent of consumers surveyed said they would trust a non-bank for their banking services. In eight out of the 12 countries surveyed, more consumers would actually trust a non-bank than their own bank.
Read More »
Tags: analytics, banking, CCS, Cisco, Cisco Consulting Services, data, digital, Financial Services, hyper-relevance, innovation, Internet of Everything, internet of things, IoE, Museum of Lasts, trust, value gap
Retailers once had a pretty clear idea of who shopped where and how they did it. After all, there were not that many options available for shoppers. Consumers would see an ad or peruse a catalog, and then visit the physical store with the hope that their preferred item was in stock.
These days, retailers understand there is an entirely new kind of shopper. Indeed, since the advent of e-commerce, retail complexity has increased exponentially, and today’s digital consumer navigates a wide range of channels and potential shopping journeys.
As a recent Cisco survey of retail trends discovered, e-commerce has added about 40 possible shopping options for a typical shopper. With the rise of the Internet of Everything (IoE) — the explosion in networked connections of people process, data, and things — potential shopping journeys will expand to 800 and beyond. Some of the new options coming into play could include mobile devices equipped for live Web engagements, checkout optimization, mobile payments, wearables, augmented reality, and drone delivery.
The variety of journeys available to shoppers is growing exponentially.
Source: Cisco Consulting Services, 2015
This sweeping digital transformation has dramatically altered the shopping behaviors of consumers, who now demand experiences that are contextual and hyper-relevant (enabling consumers to receive what they want, when and how they want it), whether in-store or out. As a result, retailers are reinventing their business models and rethinking much of what they once knew, including traditional customer segmentation.
Video: IoE in Retail: Hyper-Relevance through Consumer Context
Increasingly, we are entering a period that has been referred to as “post-demographic consumerism” in which consumption patterns are no longer defined by traditional demographic segments such as age, gender, location, income, family status, and the like. This presents a significant challenge to retailers already grappling with growing complexity in their operations.
For example, Cisco’s research reveals that Gen Y is far from monolithic. On one hand, Gen Y continues to accelerate the shift to online channels (faster than any other group): although 34 percent make more than half of all purchases online as they seek convenience and greater access to information, 54 percent would shop only in stores for the next month if they had to make a choice. Moreover, just as the physical store remains important to Gen Y, many seniors are shopping online or with mobile devices.
In short, consumer segments are increasingly fragmented and ephemeral. The sheer number of potential shopping journeys is growing exponentially, and the change is occurring faster than ever before. For an individual shopper, however, the journeys are also dynamic. Consumers are constantly shifting to other journeys as new innovations emerge —
and faster than retailers can respond. Compounding this, the velocity of innovation is increasing as IoE dissolves traditional barriers (for example, through the low cost of app creation, the Kickstarter-style funding model, and so forth).
Since every retailer is unique, and there is enormous variation across categories, each retailer must define its own target segments, and then be prepared for the rapid evolution of new “microsegments.” Cisco is working with retailers to define target segments and prepare for the evolution of new ones.
To enable the customer outcomes that will determine the winners of the IoE era, most retailers understand that they need to know their customers as never before and, critically, possess the requisite business agility to adapt. Fortunately, IoE and consumer analytics technology provide the platform to truly understand, engage and respond to their customer.
Analytics is a key competitive frontier in the IoE era, enabling retailers to provide consumer experiences, offers, and interactions that are contextual, relevant, and timely. Moreover, analytics empowers the retailer to respond dynamically to constantly changing customer behavior.
To succeed in this area, retailers need a technology strategy that captures data at the “edge” of the network — from mobile devices, sensors, video cameras, and the like — and analyzes it locally, in real time, to respond to fast-moving opportunities. By leveraging analytics and other key elements of IoE such as video and mobility, retailers can drive greater efficiency in each customer journey, offer real-time savings, and create a more relevant customer engagement.
As shopper segmentation blurs, analytics is critical to understanding the new digital customer. Old or young, rich or poor, all customers have value and want to interact with retailers in new, hyper-relevant ways. IoE-driven solutions are the way to do it.
Tags: Anabelle Pinto, analytics, CCS, Cisco, Cisco Consulting Services, connected retail, data, digital, hyper-relevance, innovation, Internet of Everything, internet of things, IoE, IoT, National Retail Federation, NRF, retail, shopping
“May you live in interesting times,” the old saying goes. With its explosion in intelligent connections, the Internet of Everything makes this one of the most exciting times to be alive — ever.
But you already knew that.
The real fun begins when we consider that as dynamic as technology change appears to be in 2015, this is only the beginning. Mobility, video, analytics, and other technologies have already transformed our jobs, our home lives, the ways we socialize, access entertainment, you name it. But now IoE is accelerating change at an even faster rate as people, culture, innovation, technology, get added to the mix.
With that in mind, let’s explore some key predictions to see where I believe IoE will take us in the next ten years or so.
The way I see it, IoE will drive an unparalleled level of social and business consciousness, as the Internet evolves far beyond its current state and limitations. This transformation will center on three core capabilities to be Hyperaware, Predictive, and Agile.
Hyperaware Read More »
Tags: analytics, Contextual awareness, Dark asset, Digital transformation, diversity, future, inclusion, Internet of Everything, internet of things, IoE, IoT, Joseph Bradley, mobility, Technology predictions, video, Wearables. Mobile. Big Data
Founded in 1915, Black & Veatch is a leading global engineering, consulting and construction company, specializing in Energy, Water, Telecommunications, Federal, and Management Consulting. Black & Veatch’s annual Strategic Directions Report identifies top of mind issues based on a compilation of data and analysis from an industry-wide survey. The complete report is available from the Black & Veatch website.
“The annual Strategic Directions report series captures Black & Veatch’s global engineering and thought leadership expertise across key elements of the critical human infrastructure market.… This report represents the evolution of Black & Veatch’s inaugural Strategic Directions: Utility Automation & Integration report, with an expanded focus on automation and integration and utilities’ efforts to harness data to make operations and service delivery more efficient.”
— Black & Veatch 2015
The major sections of the report address:
- Utility Telecommunications
- Utility Automation
- Data Analytics
- Smart Communities
The report notes that utilities and communities, with the proliferation of smart devices, automation and the use of analytics are transforming development and delivery of key infrastructure services to become more responsive, efficient and resilient.
Especially relevant to Cisco’s engagement with the utility industry and communities around the world is Black & Veatch’s observation that as legacy equipment is replaced or upgraded, IP-based technology is creating new opportunities. Connected devices on utility telecommunications infrastructure is now widely recognized as “…an essential element of the Internet of Things (IoT).”
Advanced metering Infrastructure (AMI) has often been thought of as synonymous with “Smart Grid”, but the expectations of real-time pricing or even time-of-use (TOU) rates and demand side management are far from the top of the list of top areas enabled by increased data management and analytics. The top three listed in the report are:
Asset Management (67%)
Capital Investment (45%)
Customer Service/Engagement (27%)
More than 63% of electric utilities report plans to replace, upgrade or build communications infrastructure in the next 5 years, with IP leading the way as the network protocol standard including SCADA systems.
“Some utilities are completely embracing a converged mentality and running everything over a shared infrastructure, while others are moving more cautiously by keeping protective relaying and other mission-critical applications separate from the converged network.”
The report notes that some utilities are more focused on the cost of maintaining and replacing outdated equipment and are unconvinced that smart grid technologies and automation are critical, but concludes, “Staying on the sidelines carries risk.”
Budget concerns dominate the obstacles to new technology implementation, and convincing stakeholders is key to addressing cost and perception issues.
The report concludes that the adaptive planning enabled by IP communications and advanced analytics allow leaders to effectively address core management functions of Strategic Options Assessment, Asset management and Operational Planning.
“For organizations that provide essential services, this represents the greatest transformation in utility operations in decades. For the smart city, it will facilitate the transformation to becoming a better place to live and a more friendly and desirable place to do business for generations to come.”
Black & Veatch and Cisco partner to create architectures for electricity, natural gas, solar and wind customers that provide secure and optimized network integration for smart grid environments. If you’d like to know more about our work together, contact me by commenting on this blog.
Tags: Black & Veatch, electric utilities, Energy, internet of things, IoT, Smart Grid, utilities