I already spend too much time on the web so what’s it going to be like in 2025 when another 26Bn smart devices are connected to the web?
The recent, excellent, research by Pew looking like at digital life in 2025 gives some pointers to what life might be like once all these smart devices come on-stream. The Pew report reflects that this is a market in the very earliest stages of its evolution with little overall consensus and concerns being expressed around the social (privacy, exclusion) as well as technical implications of IoT (integration). One word however that pops up frequently in the Pew report is “invisible”. The Internet of Things will be notable for being invisible.
As humans we pretty much mastered our ability to generate data and the emergence of the IoT will take our ability to create data to another dimension. What we haven’t mastered however is our ability to increase time. Human attention is a scarce resource. As a result most of us will be happy to outsource our attention for important yet mundane processes that enable us to focus on more important or enjoyable activities. Health monitoring, driving, service scheduling, insurance renewals, ensuring your finance products are on the best rate of interest, product research and price comparisons, all of these are important yet mundane processes we perform on a daily basis that most for us would be happy to outsource.
Wearables like Google glass and smart watches fail the invisibility test that will be one of the key attributes of successful IoT solutions. Wearables draw users further into the web rather than freeing users from it. Having milk bottles, toothbrushes or trainers sending you alerts and competing for your attention is just ludicrous.
The IoT = A Personal Airbag
The IoT will act as an airbag for our lives, ready to step in when you need it, not constantly competing for our attention. By freeing us from the mundane activities that today we would have to do manually on the web we are being freed from the internet itself. IoT solutions will make us less dependent on our current web interfaces. We will use the screen and keyboard interface to the web less and less as voice and gesture become more a more appropriate method of interacting with IoT devices. BPM and workflow technologies will orchestrate automatic processes triggered by smart devices, freeing users from mundane processes, interrupting our daily lives only when a decision is required.
Initial successful IoT solutions for example smart meters, inventory management, insurance telematics are for the most part invisible to users and eliminate mundane yet important processes. With IoT the internet will become more and more a part of our daily lives but less and less obtrusive, wrapped around us ready to assist rather than competing for our attention.
I recently blogged on the deluge of disengagement among U.S. employees and stated that major achievements in productivity and customer experience will not be achieved until organizations tap into this 70% pool of disengaged employees and convert them to motivated employees.
A further breakdown of the data is now available which shows that levels of engagement are even worse in Western Europe. If the U.S. is experiencing a deluge of disengagement, Europe is already sandbagging and sending out the lifeboats. The highest engagement level is in Denmark with only 21% of employees engaged and France leads the way in levels of employee disillusion and apathy with only 9% of employees engaged.
As previously stated a host of social, economic and cultural reasons probably lie behind these figures. Undoubtedly however a large number of these employees are trapped in roles where they have little autonomy to influence how their work gets done. Locked into fixed inflexible processes in the restaurant, checkout or at a keyboard. From a customer service and experience point of view this 70-80% pool of disengaged employees is a well to be tapped. To begin eroding these levels of disengagement organizations need to become empowered organizations.
What does the employee empowered workplace look like? I’ll talk about that in the next post.
Like your aunt dancing to Daft Punk at a family wedding, when older established companies attempt to plug into the zeitgeist the results are often embarrassing. Across industry established organizations are experiencing a midlife crisis as younger more agile startups begin to erode their customer base. Instead of buying the sports car and dyeing their hair many established companies have lurched towards customer experience as a way to remain cool or relevant with predictably embarrassing results.
Interest in customer experience has been driven by lifestyle brands such as Apple, Disney and Nike, brands we enjoy using because they are associated with leisure experiences. The word “experience” gives the impression that we enjoy using the product or service, yet in our day to day lives we engage with many organizations on a purely transactional basis. Whether it’s a bank, an insurance provider or a utility, most of the time we are simply looking for process or transactional efficiency. Nothing more. Failure to understand this has led many organizations down the wrong path that views customer experience from a leisure rather than a process excellence perspective. I certainly don’t need my bank to start giving me discounted hotel bookings (they do), my ISP to give me tickets to the football (they did) or my dentist to give neck rubs (not yet).
The Great Customer Experience Swindle
In financial services and insurance it’s very easy to see the attraction of trying to focus on customer experience in market sector with few other product differentiators. UK banks have been quick to jump on the customer experience bandwagon but are mistakenly taking the leisure rather than process excellence route. Today UK banks currently offer lifestyle benefits such as movie downloads, cinema tickets, hotel booking discounts, airport lounge access, concert tickets and will writing services. The availability of these “benefits” poses a number of questions. First of all why are banks even offering these benefits in the first place? Cinema tickets, movie downloads and hotel discounts are benefits completely unrelated to their core business. Secondly why are banks providing these dubious benefits while they continue to suffer embarrassing outages, IT problems and customers struggle to talk to a human advisor? Also who joins a bank because of their will writing service?
Customer experience is often defined as how customers perceive their interactions with an organization. Each one of these interactions is a business process. Many customer experience leaders just execute their business processes better than their competitors. Take for example customer experience leaders; Amazon, Apple and First Direct. All three organizations execute their key business processes with precision and better than their competitors. Amazon excels in logistics processes, Apple in supply chain and research and development. First Direct show that by focusing on core customer processes and not gimmicks banks can transform customer experience.
This week more service outages hit the UK banking industry. Offering lifestyle benefits while struggling to keep the lights on shows a complete or deliberate misunderstanding of customer experience. A classic case of fur coat and no knickers as my mum used to say. Forget the VIP lounges and the tennis tickets if banks want to transform customer experience they need to focus on process excellence. Instead many UK banks are participating in a great customer experience swindle.
How often does your house burn down? Pretty frequently it appears if you are a Google exec. As I’m sure most of you are aware Google have just bought Nest, the “unloved home products” manufacturer (not the “unloved, home products manufacturer”) known for their thermostats and smoke detectors.
To excuse the pun but is this a case of Google having money to burn or a pointer towards something more significant for the emerging IoT industry? In my opinion it’s probably a bit of both. First of all current Nest products are niche and will only appeal to gadget freaks or maybe people with OCD who need to regularly check if their house is on fire. A $150 price point for a smoke alarm when I can get one for less than $10 will strangle adoption.
In a previous post I stated that all of the data generated by IoT devices is only of use if it is connected to business processes. Successful IoT companies will produce solutions for essential business or consumer problems not just smart devices.
It has been said elsewhere that there are two IoTs, one for industry and one for consumers. The industrial IoT is alive and well providing things like monitoring and control of for example essential and dangerous business processes. When it comes to consumer IoT successful products will be those that also trigger essential but mundane processes and services for the end user (e.g. car repairs and essential home maintenance) or provide important personal and environment monitoring services (e.g. health, weather and traffic monitoring). Getting back to Nest it’s not the thermostat that needs web enabled it’s the boiler/furnace. Being able remotely adjust my thermostat is not an essential service however I’d really like a call out to be automatically triggered if my boiler/furnace breaks down. Knowing my house is one or two degrees warmer than it should be isn’t critical. I need to know quickly if an elderly relative has remembered to take prescribed medicine or had an accident in their home. $200 fridges, kettles or toasters are non-essential items and don’t need internet connectivity. The core objective of a domestic smoke alarm is to get people out of a house before a fire takes hold, it doesn’t need to be web enabled.
Nest CEO Tony Fadell told WIRED “Both companies believe in letting the technology do the hard work behind the scenes so that people can get on with their lives,” This statement I think implies an understanding of the key role business process automation will have on the successful adoption of IoT. At the moment Nest products provide the Internet of Things for devices that don’t need to be connected to the internet. However I think Google are buying the technology, patents and potential roadmap rather than the current product suite?
Successful IoT companies won’t simply supply devices, they’ll provide business and customer process solutions.