I’ve had a little time to think about the Internet Retailer Conference + Expo (IRCE) 2015 that was recently held in Chicago. One of the key-note speakers was James McQuivey Ph.D., Vice President, Principal Analyst at Forrester Research. His presentation “The Internet of Things Means a Consumer Information Tsunami: Get Ready to Ride the Wave” made a number of interesting points that were reinforced by a trip last week. His talk was focused not on the how to connect millions and then billions of sensors but what we will do with that information and how companies should prepare.
Below are a number of points he made in his presentation:
The IoT Is A Symptom Of Two Bigger Trends
- Consumers are hyperadopting
- Companies are engaging in digital disruption
Consumers are hyperadopting…
› …experiences, not devices
› …experiences, not connections
› …experiences, not sensors
› Yet they need devices, connections and sensors to have these experiences
Consumer desire for these experiences will lead them to adopt these devices rapidly
How digital disruption economics work
10 x the innovators
1/10th the cost
100X the power
Prediction: By 2020, the amount of data your customers will give off from their homes, devices, bodies, and cars every single day will be 100X the cumulative data you have in data warehouses today.
Question: What is the business model for using that data to serve consumers?
The math on the digital disruption is compelling and I can think of devices I have purchased that benefit from this economic model. The specific example is a sensor that you can attach to items that are easily lost items, such as keys, iPad, etc. The sensor pairs with your phone over Bluetooth. Part of the appeal is that over time as more and more people buy these sensors, other people’s phone will help me find my items. The pitch from the company isn’t join the IoT, instead it is find your lost items and help other people do the same.
The trip I mentioned was to college orientation for my son. My wife and I heard the resident hall director describe laundry facilities. The washer and dryers are internet connected, saving students a trip. I thought it was interesting how the Trojan Room coffee pot concept had been updated for this century and this example reflected what James McQuivery said. We (consumers) want the experience and will become part of the IoT to get that experiences. When I told my son how I was linking IoT to the benefits his generation will experience, he warned me not to sound like a grumpy old man yelling at kids. Let me know if I succeeded.