To receive the most value from the Internet of Everything (IoE), business leaders should begin transforming their organizations based on key learnings from use cases that show how IoE works in the real world. Cisco IBSG’s Economics practice recently developed 50 private-sector use cases to determine the Value at Stake in the new IoE Economy. It determined that $14.4 trillion of value (net profit) will be created or will migrate among companies and industries based on their ability to harness IoE.
This blog will provide both near-term and more futuristic examples of IoE in healthcare and marketing/advertising to help you better understand the possibilities of IoE in different time frames. We provide both a futuristic view (Dave) and a near-term perspective (Joseph).
1. Connected marketing and advertising: $1.95 trillion of Value at Stake
Near term (now to 2015)
Today, it is very difficult to create and implement cohesive marketing and advertising strategies across numerous and disparate channels (TV, radio, Internet, point of sale). IoE will enable companies to have a complete view of their customers (behaviors, preferences, demographic profile) and deliver individually targeted messages and offers to them on any device, at the time and location where they will have the most beneficial impact. Within this new paradigm, companies can react more quickly by assessing and reacting to their markets in real time; increase profits by offering optimal pricing based on real-time supply and demand information; and grow revenues by bundling their offerings with other products and services based on a holistic assessment of customers’ wants and needs.
In addition, IoE gives retailers the ability to transform data into useful information as close to the customer as possible. This capability is key to creating value in the near term. For example, a store associate could be alerted when a loyal customer enters the store. Information about the customer’s recent purchases and preferences could instantly be presented to the associate on a mobile device. Using this information, the associate could then approach the customer, direct him or her to specific items, and improve the overall shopping experience.
To implement these use cases, leaders should focus on IoE initiatives that use Big Data and cloud computing. In addition, every customer-facing department, including marketing, sales, service, and support, must be able to work in sync to meet the rapidly changing customer demands of the IoE Economy.
Future (5 to 10 years from now)
The “Holy Grail” in the world of marketing and advertising is connecting with current and potential customers at the right time and place, with the right personalized message, on the right device. As IoE connects more people, data, and things, and as technologies such as smart surfaces and augmented-reality devices advance, companies will be able to come closer than ever before to achieving nirvana.
By now, everyone is probably familiar with Google Glass, Google’s wearable computer that includes a head-mounted display attached to fashionable (according to some) eyeglasses. By connecting to the Internet via a wireless radio in the earpiece, Google Glass augments what users see through their devices. Google is a smart company. It won’t be long before image-recognition software, combined with Google’s search algorithms, allows companies to sponsor ads triggered by the everyday physical objects (cars, furniture, and so forth) that people see through Google Glass.
2. Connected healthcare and patient monitoring: $106 billion of Value at Stake
Near term (now to 2015)
Many of the inefficiencies in healthcare today are the result of siloed sources of knowledge and information — it is difficult to access all of the relevant knowledge available at the point of care. In addition, many measurements and tests are administered manually. The greater number of sensors and connections in IoE will allow people to avoid or have shorter hospital stays due to smarter home-monitoring systems and improved care from standardized treatments that conform to all known best practices. In addition, medical records can be collected and recorded in a systematic and standardized manner, reducing the potential for redundant tests and ensuring that all of the pertinent information necessary to make a medical decision is available to the patient and his or her caregivers.
Connected healthcare and patient monitoring involve a fundamental shift in how healthcare providers deliver their services. Billing and insurance processes will also have to change for this Value at Stake to come to fruition. Given these changes, business leaders will need to focus on both change management and technology-driven initiatives that involve new medical devices, home IT connections, and security solutions, , while addressing patients’ privacy concerns.
Future (5 to 10 years from now)
IoE has the potential to improve our lives by enabling healthcare to become more of an ongoing process in our daily lives rather than a series of static events when we need care. For example, imagine receiving a mini-checkup from your bathroom mirror every time you brush your teeth. Virtual reality, smart surfaces, cloud computing, gesture recognition, and new sensing advances like Eulerian Video Magnification and the Radiate shirt (changes color according to your body heat) can literally measure vital signs such as your heartbeat and temperature. This and other information about your health from your personal and secure data store could then be sent over IoE to your personal physician’s mobile device. Using resources such as advanced analytics and IBM’s Watson in the cloud, your doctor could be alerted to, and follow up on, any issues that need to be addressed. Additionally, clinical trials could be accomplished with enormous numbers of patients as easily as any database project is done today. This will improve trial outcomes, leading to improved best practices and more effective medical drugs, devices, treatments, and therapies.
In reality, the use cases for IoE are nearly limitless. By taking time to understand how IoE can impact your industry and business, you can begin preparing for the IoE Economy to come. By doing so, you will help ensure that your company is on the winning side of the $14.4 trillion Value at Stake in the next decade.