The best results will occur when technology and humans collaborate to create an entire ecosystem, which technology alone cannot achieve.
An early theme of digital transformation was the notion of selling services rather than products. A contract with the “thing maker” to circulate cooling fluid throughout my factory rather than a purchase order for me to buy the pumps and filters needed to do it myself, for example. The contract lets me focus on creating products for my customers rather than maintaining the machines making this possible. I don’t want to spend time on the process (pumps and filters), I just need the outcome (properly cooled machines) in the least distracting way possible to my core business of producing goods, medicine, energy, etc. The contract lets you, purveyor of the connected pumps and filters, build a closer relationship with me, streamline your business, and avoid competing in an increasingly commoditized space.
The fundamental shift happening today goes beyond providing guaranteed services rather than just hardware. Ensuring my lights stay on rather than selling me light bulbs solved your commodity hardware problem, but over time service offerings will face similar pressure as your competitors follow your connected product path and undergo digital transformations of their own. Your long term return on investment in IoT depends on more than keeping my lights on and water flowing. The value your IoT system creates for you depends on your IoT system’s ability to generate more business for me. There’s no such thing as a cheaper “good enough” replacement part when it comes to generating new revenue.
In healthcare for example, when your IoT system enables me to perform procedures in 24% less time, my clinics can perform 24% more procedures each day, increasing my revenue by 24% and delivering a 24% better patient experience. That’s what I’m looking for when I’m buying medical equipment. Depending on my corporate agility, the adoption and rollout of your connected machines may be a phased approach, following a progression of business outcomes. Asset Management means knowing the status of each device at all times and controlling them accordingly. This first step helps me see the potential value of incoming data and better understand my current utilization. Workflow Integration is connecting this information with my enterprise systems, which enables Predictive Maintenance and automatically alerts service technicians when a machine shows signs of impending failure. Where everything comes together and bonds me securely to your connected product service is Yield Optimization.
At this point your IoT system is collecting data from machines in my facilities as well as external data like weather and information from my other enterprise systems, correlating this information and uncovering patterns and ways for me to achieve more with less. Your “things” are now more than hardware installed in my facility performing physical tasks. They’re active components in a new System of Intelligence engaged in a loop of continuous learning and improvement.
This is true digital transformation, the creation of business value out of data collected and processed by your IoT solution.
Be ready for RPA storm coming in near future with the addition of artificial intelligence capabilities.
To paraphrase Geoffrey Moore, smart “thing makers” are investing in IoT solutions for their customers today in order to generate more revenue for themselves tomorrow. Traditional hardware vendors are being commoditized and replaced whenever a cheaper “good enough” option comes along. To thrive in the long run, your value must be “sticky”, embedded in your customer’s business, providing benefit to their customers as well. The “things” you sell now simply enable your customers to run their basic operations. Whenever a part breaks, customers make a decision to order a new one either from you or a competitor. How differentiated is your equipment from the rest of the market? Your business is constantly at risk.
What we’re seeing as a result are “thing makers” creating smart systems that empower their customers to not just operate, but to *optimize* their operations. These devices still perform their physical functions as before, but also collect and share a stream of data about their status and conditions in the world around them. It’s the data they produce, and the insights your system derives from this data, that enable your organization to offer far more valuable products and services to your customers that are not so easily replaced.
If you know the state of your machines at all times, you can build predictive maintenance and service models enabling guaranteed uptime and automatic replenishment. If your equipment never breaks or runs empty, your customer is unlikely to replace it with a competitor’s version.
If your products provide not just lighting and temperature control but also insights correlating usage patterns with time, weather, and utility data that reduce your customer’s costs, you can sell them this information for a percentage of these savings.
It’s the future. Your connected product system is part of your customer’s operating procedures, continuously generating insights for maximizing productivity. Improved asset utilization, faster turnarounds, synchronized workflows, and more. Smoother operations and reliable performance deliver better experiences for their customers, further expanding your customer’s business, because of your IoT solution. You don’t just sell “things.” You sell outcomes, which is what your customers really wanted in the first place.
That’s pretty smart.
Digital disruption is omnipresent, get on board or get thrown off the track.
Today’s consumer expects fresh food, whether it is in season or not, with an exotic dining experience.
Successful restaurants recognize that the easy path to their customers' stomachs begins in their minds. They need to grab customer's attention and entice them with a memorable experience in order to trigger repeat visits.
Here are some of the applications of Digital disruption in the restaurants & food service industry:
- Digital Signage to deliver eye-catching graphics to engage customers the moment they walk through the door
- Online reservations using mobile app & flexibility of customization of menu as per customer taste
- Chatbots: Restaurants are using virtual assistants to respond to customer inquiries and to process and customize customer orders. Taco Bell, Pizza hut have adopted chatbots to automate ordering process from a social media platform.
- Robots – Restaurants are using AI-driven robots to increase capacity and speed of food preparation and delivery.
- Recommendation engines – Developers are designing applications which use AI to help consumers choose meals & suggest foods based on their eating preferences.
- Wi-Fi enabled dining spaces for truly engaging customer experience
- Kiosks – Restaurants are integrating AI-driven self-service Kiosks to reduce customer waiting time and enhance the customer ordering experience.
- Pay by phone and flexible paying options
- Loyalty programs based on frequent visit
- Digital supply chains to accurate demand forecasting, inventory optimization, and cost reduction.
Restaurants generate vast quantities of data through software that controls everything from scheduling food delivery and shift staffing to taking reservations to managing vendors and inventory to paying bills.
Today almost every consumer is making dining decision on their smartphone. They have tried new menu item based on the mobile ad. Mobile payments have become the norm now in this industry. Customers would like to order quick meals via mobile and want to use mobile payments.
McDonald’s was the first store to accept Apple Pay.
Starbucks is a leader in digital transformation. Using more than 50mm Facebook fans & over 15mm Instagram followers at their disposal they mastered the social media engagement. First, they created an app to pay for coffee and food in their restaurants. Then they added the loyalty program, starting to craft hyper-personalized offers and experiences for their 24-hour connected customers. The company also developed new digital services to be enjoyed in their physical stores, achieving a highly praised omnichannel approach.
TGI Fridays, Wendy’s and other big names have all adopted digital technology to lure their customers.
OpenTable, GrubHub, and Zomato are some of the latest apps showcasing nearby restaurants with high-quality pics, presenting a menu with exotic pictures, price, ratings etc. you can also get offers, deals instantly.
The digital technology available to restaurants has streamlined the lives of restaurant owners much like smartphones have bettered our daily lives.
Digital has entered the restaurants and food industry through the front door and brings many exciting trends.
As consumers expect Apple to come up with a new iPhone every year that makes the earlier model obsolete, similarly they want fresh ways of serving food with fantastic dining experience which is made possible by Digital disruption.
- Image and Face Recognition: It understands the content of the image, classifies the image into various categories, detects individual objects and faces, detects labels and logos from the images.
- Language Translation: Translate text between thousands of languages, allows you to identify in which language any text that you need to analyze was written. Some APIs allows organizations to communicate with the customer in their language.
- Speech Recognition and Conversion: Today most of the customer service is handled by Chatbots with underlying APIs helping simple question and answer. Speech to text APIs are used to convert call center voice calls into text for further analysis.
- Text /Sentiment Analytics using NLP: With the rise of Social Media, consumers easily express and share their opinions about companies, products, services, events etc. Companies are interested in monitoring what people say about their brands in order to get feedback or enhance their marketing efforts. These APIs can identify, analyze, and extract the main content and sections from any web page. They further help in to analyze unstructured text for sentiment analysis, key phrase extraction, language detection and topic detection. There are some tools also helps in spam detection.
- Prediction: These APIs, as the name suggests helps to predict and find out patterns in the data. Typical examples are Fraud detection, customer churn, predictive maintenance, recommender systems and forecasting etc.
A lack of urgency is the greatest obstacle businesses face when considering the value of digital transformation. Proper planning is important but more than that execution as per the KPIs you select, is what take you through.
Today more than even, every business is focusing on collecting the data and applying analytics to be competitive. Big Data Analytics has passed the hype stage and has become the essential part of business plans.
It is Digital or Die. You are an easy prey if you don’t change.
adopt the ones which makes more sense to your business.
Recent events have highlighted the growing need for enhanced cybersecurity.
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