WVU - IMC (MS Program)

1. 1 |CHATTERJEE MAHUA I WRITING ASSIGNMENT 3
IoT Environment and its Business Value.
A McKinsey (2015) report
predicts that IoT’s impact
on the economy to be
between $4 trillion to $11
trillion a year by 2025. So
while IoT would affect
human life and made a
huge impact on consumer
data and monitor
disruptions, and problems,
it would be not limited to
wearables and smart
technology. One of the
biggest valuable impacts
will be on businesses
irrespective of their size
and market.
Businesses are predicted
to be early adopters of
IoT, followed by
Governments, but
consumer adoption will
see a delayed adoption.
IBM Global Technology
Services whitepaper
reports that industries that
lead in IoT adoptions are
Manufacturing,
Healthcare, and Insurance.

2. 2 |CHATTERJEE MAHUA I WRITING ASSIGNMENT 3
While security and privacy are IoT’s biggest threats but there is some business value
that it does bring into organizations across various sectors. Some of the value additions
that IoT has the potential to offer are as below:
Efficient processes
One of the common setbacks in organizations today is managing downtimes and
information access improvisation. For any industry – manufacturing, financial,
information technology, automobile – receiving real- time notification about service or
product status can help in key decision-making process. Thus IoT has the potential of
delivering value through real- time information delivery, to quicken decision making for
businesses, and prevent disruptions. Data derived from IoT could benefit sales through
predicting maintenance based products (for example car tires, insurance policies,
medicines for chronic health management). For marketers, this is very important in
order to be able to align their initiatives based on business objectives and delivery.
Introduction of new information and features to improve business processes
With features like sensors in IoT objects and platforms, businesses can have access to
information like location, motion, environment conditions that can be used to improvise
several industries. IoT also makes access to third party data like weather data,
government data, reviews, traffic information, accessible to offer new services, features,
or improve processes. IoT is changing supply chain management for enterprise market -
for example, AT&T’s Cargo View provides information on the environment of the cargo
(temperature, vibration etc.) while in transit as well as provides real – time cargo
tracking. IoT environments thus have the ability to not only improve processes but
extend the value through enhanced customer service but delivering a higher level of
service. In consumer goods segment, for example, Emerson products offered a feature,
where new recipes can be pushed as updates to a connected oven. These introductions
and improvements can be great marketing stories that can be branded as key
differentiators of the brand adopting the IoT.
Opportunities to explore new business models:
Most of IoT sensor data and platform have features that help businesses explore new
revenue opportunities. For example with task automation and data analytics through
IoT, businesses can explore new markets and demographics that will create new
revenue opportunities. For example, AT& T’s OnStar® services are available on select
2015 models of Buick, Chevy, Cadillac, and GMC, where there is a built-in Wi-Fi
Hotspot in the vehicle that has up to seven compatible devices can be connected to the
internet. In this case, the vehicle company pays for mobile data used to deliver the
service, but if the vehicle owner creates a mobile hotspot then the owner will be billed
separately, thus making this a new revenue opportunity.

3. 3 |CHATTERJEE MAHUA I WRITING ASSIGNMENT 3
Product Innovation
IoT environment can lead to the creation of new products that can make life efficient,
easier, and save time. Consumers have seen and experienced products they never
thought they would get to experience.
The world’s first smart ceiling fan was introduced, that can be controlled by an app that
learns the owner’s comfort preference, through its features including speed, light, and
temperate sensors.
Similarly, Diageo made its Johnie Walker Blue Label Whiskey smart by adding
connected technology to each bottle that features a printed sensor tag made with
Thinfilm's OpenSense technology. This can detect the sealed and opened state of each
bottle, and allows Diageo to send personalized communications to consumers reading
the tags with their smartphones. It thus initiated a huge amount of digital interaction with
the product through consumers who may be standing at a “store of a bar and wondering
whether they buy the single malt or the blend, highland or lowland” as described by
Venky Balakrishnan Iyer, Global Vice President, Digital Innovation, Diageo.
IoT affecting Consumer Behavior
Consumer adoption of network-connected devices within the appliances and wearable
technology is on the rise. In the next five years Accenture report (surveying 2000 U.S
consumers) predicts, consumers’ widespread adoption of connected technology will be
inevitable. Currently, consumers see value in health and fitness based wearable
technology, and the majority of them seem to be unfamiliar with the term Internet of
Things on a mass level (Accenture Report, 2015).
Some of the concerns from consumers are privacy, security, usability in comparison
with pricing.
For those who are
using IoT devices,
prefer natural
interfaces to
interact with a
device. For
example, they
may not want
instructions on a
tablet but a
feature that will
anticipate what
they want and act

4. 4 |CHATTERJEE MAHUA I WRITING ASSIGNMENT 3
on them. Thus consumers using products and solutions within IoT environments want
technology that extends security, apps that help in self-quantification, services that
optimize the machines they are using to enhance daily experiences.
Reference:
 Manyika, J., Chui, M., Bisson, P., Woetzel, J., Dobbs, R., Bughin, J., Aharon, D. (2015, June). Unlocking the potential of
the Internet of Things. McKinsey Global Institute. Retrieved from http://www.mckinsey.com/business-functions/digital-
mckinsey/our-insights/the-internet-of-things-the-value-of-digitizing-the-physical-world
 AT&T Website
 Greenough, J. (2016, July 18). How the 'Internet of Things' will impact consumers, businesses, and governments in 2016
and beyond. Business Insider. Retrieved from http://www.businessinsider.com/how-the-internet-of-things-market-will-
grow-2014-10
 IBM Global Technology Services (2014). Deriving business value from the Internet of Things. Retrieved from
http://www.coe-iot.in/pdf/Deriving_business_value_from_the_Internet_of_Things.pdf
 Mercer, C.(2016, April 25). Internet of things examples: 12 best uses of IoT in the enterprise. Computer World UK.
Retrieved from http://www.computerworlduk.com/galleries/cloud-computing/internet-of-things-best-business-enterprise-
offerings-3626973/
 CIO UK (2015, May 27). Johnnie Walker joins the Internet of Things. Retrieved from http://www.cio.co.uk/it-
strategy/johnnie-walker-joins-internet-of-things-3613305/
 Wilson, H.J., Shah, B., Whipple, B. (2015, October 28). How People Are Actually Using the Internet of Things. Harvard
Business Review. Retrieved from https://hbr.org/2015/10/how-people-are-actually-using-the-internet-of-things