The internet of things (IoT) is more than a buzzword, and every CMO will have to figure out how and what IoT will mean for their business this year. According to the IDC Worldwide Semiannual Internet of Things Spending Guide, IoT spending is expected to surpass $1 trillion by 2020 -- most of which will be spent in the manufacturing, transportation and utilities industries.
Growth in consumer IoT spending continues to rise and will reach $62 billion in 2018. As expected, IoT was everywhere at the Consumer Electronics Show (CES) in Las Vegas this year. According to Stacey Higginbotham, an IoT expert and editor of Stacey Knows Things, this year’s fan favorite was technology integrations with Alexa and Google assistants.
Watching the internet of things mature over the past four years has helped shape my role as a CMO.
Are you an IoT newbie?
I first heard about the internet of things from our CEO in 2014. We had many conversations about IoT. Back then the industry was beginning to explore the uses and benefits of IoT. Through my own research, I found this Forbes article, “Is There An App For That? How The 'Internet Of Things' Is Changing the Consumer Device Landscape,” and it was particularly helpful. I realized the internet of things was about waking up devices connected to the internet and enabling them to communicate information that would make our lives better. I pictured the future -- where after waking up in the morning from my alarm, my coffee pot would automatically turn on and warm up.
Consumer IoT uses have come a long way. Here’s an example. One morning there was frost on my windshield, which is odd because I live in Florida. I turned on my car, and saw an unusual message on my dashboard; it read “Careful. Roads may be icy.” Many of you in other parts of the country have probably seen this as well. After I stopped laughing, I realized the sensors in my car were talking over the internet and relaying a message that the temperature had dropped below freezing — and that triggered the notification. The basic premise of monitoring, setting alerts and triggering actions are essential to an IoT application.
Here’s something else you need to know.
IoT is not a side dish, it’s the main course.
You could argue that IoT is just another trend like big data, mobility and e-commerce, but I would disagree.
At one time these trends were the topic du jour, but in the context of the internet of things today they’re more like a side dish. As you read up on IoT, you’ll see references to mobility, big data, artificial intelligence and the blockchain. The internet of things has become the main course, and these technology sides are an excellent companion. Let me illustrate my point.
In this example, big data can be used by retailers to predict and market to a woman who is expecting a baby. This article, “Leveraging Customer Data To Create Relevant Customer Experiences,” explains how Target used data and analytics to detect purchasing patterns for customers who became pregnant. The data showed that when customers were buying prenatal vitamins (zinc and magnesium), these were early signs of pregnancy — and a pattern started to emerge. Women began purchasing maternity clothes, diapers and other baby items. As the article describes, Target started to tastefully present ads for baby items. The store found the right balance between Big Brother and being helpful — and it has made $1 billion by predicting pregnancies.
Let’s take this example of big data and pair it with an IoT implementation. What if Target leveraged self-checkout, gift registries and photo kiosks? Then, as customers use their Target REDcard, (a credit card for Target), they could also display ads on kiosks and digital signage. Further, all the data collected from the transactions on those devices could be used to determine other behavioral patterns.
Here are four easy ways to get up to speed on IoT — fast!
Start by talking with your CEO, CTO and CIO. They will be your best sources of information and can help you understand what IoT means for your company.They may direct you to others who can provide you with reports, articles and presentations about the internet of things. It’s important we understand these technologies so we can ensure our brand and marketing efforts align with company strategy, which changes as new technologies emerge. I’ve worked with engineers and IT professionals my entire career and know people who do a great job explaining technical topics to a non-techie like myself. Ask someone in IT or R&D to host a lunch-and-learn on IoT and invite your teams to join.
Next, use social media to start following influencers. For consumer IoT, follow @GigaStacey on Twitter and check out her podcast Stacey Knows Things. For enterprise IoT, subscribe to the Peggy Smedley show and follow her on Twitter, @ConnectedWMag. Peggy covers topics like IoT, the blockchain, AI and big data with her guests. LinkedIn has several groups you can join. Check out the IoT Tech Expo group.
Get involved. Last year we became a member of the Intel IoT Solutions Alliance. Members are doing some fascinating things in the IoT space. Check out local chapters and technology organizations in your area and attend events, discussions and forums to learn more.
Always do your own research. Search for whitepapers, reports, infographics and stories about IoT. You’ll find maker communities focused on IoT, too. When in doubt, start within your organization and then check out some of the other sources I’ve recommended. Good luck!
