IoT TRANSFORMATION & Outcome Economy
In an economic era where every business focuses on outcomes, IoT is not just technology but it's a new opportunity for leadership. It is a mechanism to transform the business to a new competitive advantage that can drive the business to grow exponentially.
IoT has transformed the business from a commodity-based economy (Product-Based Economy and Service-Based Economy) to an Outcome Economy where products and services work together to deliver the outcomes customers want together. The seller's business model will be consistent with the buyer's business model.
“Internet of Things (IoT) technology has crossed the code and core, which has to replace standard databases. Businesses can require interoperability across the Internet between devices or markup with software that helps generate data or take specific actions to organize it. order The business transformation will gain organizations in three areas: Customer Experience, Operating Model and Business Model.”
The term IoT was first coined by Kevin Ashton in 1999 to combine the capabilities of the Internet with the ability to connect things.
In the early days, IoT was used in logistics, supply chains, and industrial factories.
From entering the 4th industrial revolution era (Industry 4.0) and the concept of the Smart Factory, nowadays, various businesses have widely used IoT. It has become a key element in digital transformation.
The global Internet of Things market value is expected to increase to 1,567 billion US dollars by 2025 years, with an average growth rate between 2017 and 2025 of 37% per year.
Source: IOT ANALYTICS, AI MULTIPLE
Case Study of Business Transformation with IoT
Coca-Cola, one of the IoT pioneer case studies
“We use smart vending machines to complement our digital strategy for sales. That includes Smart Connected Fleet, empowering the digital journey of consumer purchases. and a seamless payment and loyalty system.”
Derek Myers Derek Myers Group Director, Channel Strategy and Development, Coca-Cola
In 1982, one-third of their vending machines were connected to the Internet.
The Company is now using IoT to tailor contextual customer engagement strategies and deliver services in one click.
In addition to helping to get information about the buying behavior of customers, the company can also quickly build customer loyalty and track consumption to improve targeted marketing.
Getting data from IoT-enabled vending machines is important because this helps identify places that sell well. popular drink inventory level and machine profits.
Coca-Cola also used this information to create new flavors from the analysis of the accumulated big data, knowing how popular the combination of Cherry Coke and Vanilla Coke is with customers, for example.
Consumers can collect bonus points and use them to get free drinks with just one tap on their smartphones.
Coca-Cola is one of the retailers with the most mobile payments.
Source: Internetofbusiness.com
Business Transformation Case Study Decode business transformation with DIGITAL TRANSFORMATION CANVAS© from TRANSFORMER PLAYBOOK
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