The Numbers are In: IoT is Helping us Reimage the Way we do Business

Featured Article By Satya Ramaswamy, Vice President and Global Head of Digital Enterprise, Tata Consultancy Services

Once simply conceptual, the Internet of Things has finally made its way from the IT department to the Boardroom – and it is having a major impact on the bottom-line. From R&D to marketing and customer service, the possibilities for modern business to successfully integrate IoT are endless. And decision makers are finally seeing that by investing time and money into these programs, their business is gaining a competitive advantage.

In fact, a recent analysis from TCS found that companies with IoT programs in place reported an average revenue increase of 16% in the areas of business where these initiatives were deployed. Now, these integrated IoT programs easily grant businesses access to a wealth of data that can ultimately make a company more accurate, nimble and efficient. The biggest question is where, when and how companies can invest to reap the benefits.

If you’re still asking that question, consider the following…

Sales and Marketing

The TCS survey illustrates how IoT is completely reimagining the way products and services are presented, promoted, sold, and improved. Customizable offerings are vastly enhanced thanks to IoT initiatives. The world of connected devices gives retailers, bankers, healthcare providers, media agencies, and more the power to shift from “what do these groups want” to “what do you want.”

The number of touch-points allowed by IoT programs are also changing the way marketing campaigns are shaped and delivered. Wearables provide much-needed relief from congested banners and irritating email blasts – opening new doors to subscription and advertising revenue. Consider the rollout of the Apple Watch; this is just one of the latest products that give users an entirely new way of processing outside data, all while simultaneously generating their own. And for the sales team on the ground, connected devices present a digital dossier that is as detailed as the day is long, allowing them to personalize each and every customer engagement. This new way of engaging translates to more business and an increasingly satisfied customer-base.

The reality of products and services that communicate 24/7 has also changed the dynamic between businesses and their individual customers. IoT programs give companies the option to forgo semiannual quality testing and focus groups, in favor of real-time product status updates and user feedback. This means that decision-makers no longer need to infer what a sample size of customers say in online reviews; they can cut through adjectives and hyperbole with accurate, continuous data.

Implementing IoT-focused sales and marketing initiatives can uncover powerful customer insights that allow business leaders to cut through the noise and deliver high-value services to their customers.

Customer Service

Customer service is one of the other key areas bolstered by targeted IoT programs. As Naresh Shanker, CIO at Hewlett Packard, recently said: “At the end of the day, the fundamental driver for us is you have a great and simple user experience; it has to be driven from a customer value point of view. If you drive it from those two dimensions, you create lifelong customer value.”

Not only can IoT initiatives unlock the truth about a company’s customer base, it gives the organization the ability to serve them at the highest level. In the past, customer service representatives had some combination of the following at their disposal: what product was purchased, the date of initial purchase and previously reported issues. With the introduction of connected products, that information is multiplied ten-fold. A customer service representative now knows why you purchased the product or service, how often you use it, why you use it, and what other products or features could fit in seamlessly with your life.

Let’s not forget, automated reorders are also made possible with connected devices and can create a leaner relationship between the business and customer. The capability has far-reaching applications, from household goods to healthcare products – just look at the recent Amazon Dash announcement.

Extraordinary customer service comes down to understanding your customer. The data revealed from IoT provides customer services representatives with the information to see the full picture and provide the most value.

Conclusion

Unlocking the advantages of IoT-centered business is not without its challenges. Our study illustrated that strategic and cultural roadblocks are proving to be greater obstacles than technological issues. As Intel’s John Ballon said; “It’s organizational inertia that gets in the way. People are afraid about what new technologies might reveal about the business.”

It’s true; IoT technologies are able to uncover new directions for a business. It presents an opportunity – as well as a challenge – and it is extremely valuable when it’s capitalized on. It is those businesses that are equipped to deal with the internal resistance that comes with new, powerful information that are also the ones getting the most out of their investment.

In many respects, a business’ ability to respond to IoT-driven data is closely linked to the relationship between senior executives and IT leaders. When top executives make the conscious decision to learn more about IoT technologies and consider them as strategic business initiatives, as opposed to another tool in the arsenal, the business as a whole will be more nimble, competitive and successful.