How Internet Of Things Primes A New Smart Product Economy

How Internet Of Things Primes A New Smart Product Economy
SHARE
THIS



What is the ‘Internet of Things’? Why are Internet of Things products smart? What will this technology mean for companies? Euan Davis, senior director, centre for the future of work, Cognizant, takes us through all these questions and more. 

A slew of newly connected gadgets that are controlled through mobile apps and feed personal data into the cloud are driving a wave of interest in the Internet of Things (IoT).

Home automation start-ups, established consumer electronics giants and large venture capital-funded technology companies are gearing up for competition as connected cars, homes and even smart cities emerge. However, examining the abstract world of IoT from the world of products reveals the extent to which a billion inter-connected devices and products are changing businesses as we know it.

Latest research from the Cognizant’s Centre for the Future of Work—a survey of over 200 global product design and innovation executives carried out in collaboration with the Economist Intelligence Unit—highlights practical steps that business leaders can take to benefit from the fast-accelerating trend of smart products—and the prizes on offer from the “Smart Product Economy”.

Rise of smart products

Whether it is smartphones, smart cities, smart cars or even smart toothbrushes, smart technologies are finding their way into, and around, the everyday things we like to buy and use.

Witness the ‘smart’ Johnnie Walker bottle, which sends a personalised message to every customer who waves a smartphone in front of it, whether it is a promotional offer (pre-transaction) or a cocktail recipe (post-purchase, once embedded sensors detect the bottle has been opened). The bottle can be tracked across the supply chain, from manufacture to consumption. The opportunities unleashed by smart products are seemingly endless for any company seeking game-changing innovation or new levels of efficiency.

Why make products smart?

Adding smart technology to products can deliver game-changing innovation, enriched customer experiences and higher levels of efficiency. From R&D and manufacturing, through distribution and after-sales support, product data is changing the way products are built, sold and supported. Survey results reveal where companies are focusing their smart product investments.

Smart product development focus on three primary objectives: making industrial equipment smarter, through insights gained from embedding smart products into and around a manufacturing process; and making product packaging smart by highlighting the expiration status on commodities such as perishable foods, or reminding patients how and when to consume their medication. The third significant development opportunity focuses on making consumer devices smart, such as a fitness band that tracks personal wellness.

All these initiatives are set to change the dynamics between product creation and product sale dramatically because customer insight and business meaning are flowing through and around a product’s data.

Value flows from the virtual and beyond

The digital data emanating from a smart product or the processes that surround it is where the value—or alchemy—can be found. Imagine that smart whisky bottle exchanging data with a chilled glass to help uncover the perfect temperature for that drinking experience.

If properly instrumented and personalised, smart products become the sources of tremendous insight on product usage and status across the value chain, inform continuous product improvements and influence strategic moves into connected and/or radically adjacent markets.

By distilling and applying the insights gleaned from product intersections, manufacturers and other players in the value chain can strengthen customer relationships and create new and more profitable sales channels. Smart products can be instrumented to communicate with one another and with other products and services. Like the toothbrush that monitors and tracks the user’s brushing performance and provides feedback, or a jet engine that beams live engine data to ground staff, or a connected car that sends driver data to an insurance broker to enable dynamically priced car insurance. This looks and feels like a new product model for the digital age.

A smart product economy beckons

As product functions become more tightly controlled and optimised, we expect to see the emergence of innovative workflows (or product stacks) that connect the various products with the companies that own and operate them together.

Visualise the Smart Product Economy as the opportunity around the connected home, the connected car or the smart city. Each features a stack of products interacting with one another and blending into a unified entity that can be controlled through a single platform or interface by the home owner, driver or city planner. The result is a fully integrated and sometimes a fully automated solution.

It is happening today. Consider the manufacturing, healthcare or retail spaces, where inexpensive sensors and embedded software running across IP networks enable once inanimate products to sense, monitor, optimise and regulate themselves in increasingly autonomous and meaningful ways. Beyond the whisky bottle, check out GE’s smart turbine, to Procter & Gamble’s smart toothbrush, to Babolat’s sensor-embedded tennis racket.

Where to start?

Our research demonstrates that the process of giving a product a virtual identity triggers productivity gains and offers the potential for game-changing innovation. Product companies need to engage quickly to ensure they are not left behind. Already, smart products are emerging across industries and creating profound impacts on product development, manufacturing, marketing, sales, after sales and the customer experience.

New ‘digital components’ can be added to almost any object without dramatically increasing its price. Sensors and processors, software controls and data storage can be added, accessed through an interface like a dashboard or app. By using data and analytics, companies can see and predict a product’s behaviour and, by extension, the wants and needs of its user by interpreting the data and anticipating how a product could solve current and future needs.

Over the longer term, strategic opportunities for smart products will emerge around interconnected solutions and the partnerships that underpin them. This inevitable disruption to the product model, and the opportunity it creates, is a natural consequence of what Cognizant terms ‘code halo’ thinking—leveraging the information that surrounds people, organisations, products, and processes to build new digital revenue streams and new commercial models.

Please login with linkedin to comment

summer campaign

Latest News

Women In Media Profile: Aimee Buchanan
  • Media

Women In Media Profile: Aimee Buchanan

No Women in Media series would be complete without the irrepressible Aimee Buchanan. Read all her pressibles here.

by B&T Magazine

B&T Magazine
SBS To Broadcast All Of The World Cup Group Stage, As Optus Agrees To Reimburse Customers
  • Media

SBS To Broadcast All Of The World Cup Group Stage, As Optus Agrees To Reimburse Customers

SBS and Optus have “mutually agreed” that SBS will  broadcast the remainder of the World Cup group stage up until Friday 29 June. Optus had paid subscriber rights to many of the group stage games, yet technical faults have plagued its streaming service, infuriating viewers and forcing even the prime minister himself to intervene. SBS CEO, Michael Ebeid, said: “The FIFA World Cup is the absolute […]

by B&T Magazine

B&T Magazine
Watching tv and using remote control
  • Advertising
  • Media

GroupM Investment Forecast For Australia: TV On The Rise As Digital Slips

GroupM has updated its 2018 ad investment forecasts and released its initial 2019 outlook. GroupM predicts $24B in net new advertising investment this year, the best annual increment since the bounce back from the global recession in 2010 when $26B was added to investment. GroupM estimates total advertising investment will grow by 4.5 per cent this year […]

Indigenous Campaign Deemed Too Controversial By APN Media To Run
  • Advertising
  • Campaigns

Indigenous Campaign Deemed Too Controversial By APN Media To Run

Aboriginal Victoria’s campaign in support of Australia’s first-ever treaty legislation, Deadly Questions, has been deemed too controversial to run by one of Australia’s leading outdoor media providers, APN Media. Online platform Deadly Questions provides a safe space for people to ask questions and have them answered by Aboriginal Victorians, to learn more about their cultures, […]

Introducing: YouTube Music Australia
  • Technology

Introducing: YouTube Music Australia

The wait is over! Starting today, YouTube Music is available to everyone in Australia, New Zealand, the U.S, Mexico and South Korea in addition to 12 new countries including Austria, Canada, Finland, France, Germany, Ireland, Italy, Norway, Russia, Spain, Sweden, and the United Kingdom. Now fans around the world can find more of the music […]

Will PR Finally Earn Its Stripes At Cannes This Year?
  • Opinion

Will PR Finally Earn Its Stripes At Cannes This Year?

In this guest post, Haystac’s national general manager, Jason Carnew (pictured below), says with all this talk of Cannes at this time of year, it’s a kindly reminder that the PR business needs to get its act together in terms of awards, work and judging… All eyes on are Cannes as some of the best […]

Opinion

by B&T Magazine

B&T Magazine
Ex-DDBer Unveils Designer Headscarves For Cancer Survivors
  • Campaigns

Ex-DDBer Unveils Designer Headscarves For Cancer Survivors

Two-times cancer survivor, Frankie Good Stuff Award Winner, ex-DDBer and founder of Bravery Co. Emily Somers has collaborated with a range of top-notch illustrators to produce Australia’s first range of designer headscarves for young cancer warriors. She is now crowdfunding $40,000 to produce the scarves and donate one to all the young women in their 20’s […]

New Advertising Platform Launches Down Under
  • Advertising

New Advertising Platform Launches Down Under

Following its massive success in Europe, Asia and the UAE, the Polishoe concept, which brings a high-demand shoe polish service and HD digital advertising platform together, has landed in Australia.

Set for blue sky, different clouds icons, cloud shapes, labels, symbols, icons. Flat graphic vector elements
  • Technology

PubMatic Unveils Cloud for Publishers And Tech Companies

PubMatic has launched PubMatic Cloud for publishers and tech companies looking to implement and control their own programmatic technology. By accessing PubMatic’s technology, global infrastructure and demand connections on a platform-as-a-service (PaaS) basis, clients are able to achieve full transparency and achieve greater control over their programmatic monetization. As programmatic trading becomes mainstream, innovations such as […]

Women In Media Profile: Claudine Hall
  • Media

Women In Media Profile: Claudine Hall

The Women in Media Awards are back for 2018! To celebrate this wonderful fact, and to recognise some of the killer women in our industry, we’ve created a women in media series – and have profiled some pretty inspiring women so far. This week, we chat with Bauer Media head of trade marketing Claudine Hall. […]

by B&T Magazine

B&T Magazine
Cancer Council and Target Tradies Tackle On-The-Job Skin Cancer Risks
  • Campaigns

Cancer Council and Target Tradies Tackle On-The-Job Skin Cancer Risks

Workers on construction sites receive five to 10 times more UV exposure every year compared to indoor workers. Target Tradies and Cancer Council have announced the launch of a partnership to help educate Australian construction workers about the importance of being SunSmart at work. With evidence showing that outdoor workers receive five to 10 times […]

Arq Group Activates New Branding By Hulsbosch  
  • Media

Arq Group Activates New Branding By Hulsbosch  

Arq Group has launched a new identity created by award-winning agency Hulsbosch, with the business rebranding from Melbourne IT to Arq. Previously known as Melbourne IT, the company was founded in 1996 as one of Melbourne University’s commercial ventures with the sole rights to manage .au domains in the early days of the Internet. Melbourne IT […]

Adshel Unveils ANZ Takeover Via PHD
  • Campaigns
  • Media

Adshel Unveils ANZ Takeover Via PHD

ANZ, in partnership with PHD and Adshel, have taken to the streets with a total take-over of the entire Adshel Live network. For one hour, between 8am and 9am on Tuesday 19 June, ANZ is inviting commuters to download the new ANZ app by showing six different ways the app can help them manage their […]

Carat & Initiative Share The Spoils In WA Government’s $65 Million Media Business
  • Media

Carat & Initiative Share The Spoils In WA Government’s $65 Million Media Business

IPG’s Initiative and Dentsu’s Carat have both been awarded a slice of the West Australian government’s $65 million spend. The government account is broken into two entities – campaign and non-campaign – each with its own agency roster. Carat has retained its long-standing position on the agency panel for all campaign work, which accounts for […]

A Golden Opportunity! Lucky Numbers For Sale!
  • Marketing

A Golden Opportunity! Lucky Numbers For Sale!

In case you missed it last week, a very lucky phone number – 1800 80 80 80 – is up for sale. And it could be yours!

Partner Content

by Customer Connect

The AppNexus Marketplace Launches Guaranteed Views
  • Technology

The AppNexus Marketplace Launches Guaranteed Views

AppNexus, the world’s leading independent advertising technology company, today announced the launch of Guaranteed Views, a marketplace product that changes the way advertising is bought and sold on the open internet. Guaranteed Views enables marketers and agencies to pay only for ads that are measured as viewable and is the first programmatic product that enables 100% viewable buying at scale outside of Facebook and Google.

Women In Media Profile: Kirsty Bloore
  • Media

Women In Media Profile: Kirsty Bloore

Bereft of any Monday motivation? Let today's Women in Media profile be like low-current electric waves to the brain.

by B&T Magazine

B&T Magazine
Dentsu Aegis Network Predicts Australian Ad Spend Growth Of 2.8%
  • Marketing

Dentsu Aegis Network Predicts Australian Ad Spend Growth Of 2.8%

• Ad spend in Australia forecast to grow by 2.8% in 2018 , with main drivers of growth in Government, Retail, Finance and Gambling sectors. • Global advertising spend to grow by 3.9%, revised up from 3.6% in January 2018. • Digital to overtake TV for the first time, to reach 38.4% of global share (TV 35.5%). In 21 out of the 59 markets tracked, digital will be the leading advertising channel in 2018. • One quarter (25.2%) of global ad spend will be delivered through mobile devices for the first time.

Pac Mags Appoints New Client Strategy Director For Victoria
  • Media

Pac Mags Appoints New Client Strategy Director For Victoria

Seven West Media’s Pacific Magazines has announced the appointment of Emma Baston as client strategy director for Victoria. Baston has worked in senior digital media buying and planning roles at various agencies including UM Australia, Cummins&Partners and MindShare, with exposure across the strategy, communications and creative process. She has also worked at Facebook in a […]

Seamless pattern of a crowd of many different people profile heads. Vector background.
  • Media

SBS Launches Diverse Communities Content Initiative

SBS has launched the Short-Form Content Initiative, a commitment to providing increased opportunities for Australian creatives from diverse communities through the commissioning and production of content for SBS On Demand. SBS has partnered with five of Australia’s screen agencies, including Film Victoria, Create NSW, Screen Queensland, Screenwest and South Australian Film Corporation. The initiative aims […]

BIG W Unveils Toy Mania Via M&C Saatchi
  • Campaigns

BIG W Unveils Toy Mania Via M&C Saatchi

BIG W, the home for families, fun and entertainment, has today launched its annual toy sale campaign – Toy Mania. Running until 11 July, the campaign showcases the frenzy and hysteria that comes with the BIG W toy sale. It also highlights that buying toys can be just as fun as playing with them and […]

Datorama Launches AI-Supported Data Visualisation Tool ‘Data Canvas’
  • Technology

Datorama Launches AI-Supported Data Visualisation Tool ‘Data Canvas’

Datorama, a global technology company, today announced the launch of Data Canvas, a suite of new data visualisation capabilities within its Marketing Intelligence platform. Datorama Data Canvas leverages the power of artificial intelligence (AI) in a brand new way — to help marketers create expert-designed dashboards to tell compelling, data-driven stories. Datorama’s previous AI releases have […]