The Internet of Things: The three ways consumer goods brands can unlock the most business value
Across the globe, businesses are connecting their things and harnessing their data to create powerful new business value. Connecting devices to IT systems is only the first step. The real value lies in the data that is created and transmitted from those devices as they interact with other devices and human beings, and the compelling business insights this data can enable. Together, this is what the Internet of Things (IoT) is all about.
IoT and making data actionable are certainly top priorities for the consumer goods (CG) manufacturing industry. According to IDC data, 56 percent of U.S. manufacturers are currently researching or piloting IoT, and more than half my conversations with global CG brands center on how they can take advantage of its benefits.
Here are the top three areas where IoT can unlock the most business value and new revenue growth for consumer goods brands.
Connected Consumer Products
By the end of this year, analysts forecast there will be nearly five billion connected “things” in use. And as that number quadruples in the next five years, consumer applications and manufacturing will be among the top drivers. And for good reason.
IoT and its connectivity has become a powerful force in its ability to transform how CG manufacturers design, deliver and service products. By turning consumer products into smart, connected ones, manufacturers can build better customer engagement models, and provide new value-added and personalized services and experiences that go along with them.
Connected Operations
From the factory floor to the supply and demand chain, IoT can do tremendous things to advance a manufacturer’s business. By connecting the manufacturing systems, devices and people that drive their operations, CG manufacturers can find numerous new ways to automate and create efficiencies.
Automating production processes frees up workers to meet increased demand without sacrificing quality. A more nuanced and detailed view of production data helps shift the focus from repairing machines to fine-tuning their performance over the long term. Analytics can also reduce a brand’s environmental impact by helping reduce things like energy consumption and water usage in food and beverage factories.
And, as consumers want more information about their products and are willing to pay for it, IoT presents great potential to improve transparency, traceability, and product & food safety through a more connected value chain that inspires trust and brand loyalty.
Connected Stores
IoT’s potential in the retail environment is an exciting one, opening doors for CG brands to nurture a deeper level of customer engagement and personalized marketing in greater partnership with their retail partners.
Things like sensor-enabled shelves and food refrigeration units can collect, monitor and deliver alerts on areas like in-store traffic and product availability for real gains in efficiencies and customer service. And when advanced analytics capabilities are used, valuable customer and contextual information collected—including purchase history, profile, favorites, traffic and weather conditions—can be combined and measured to create meaningful insights and powerful predictive models. This in turn can deliver more personalized shopping experiences that drive sales and behavior change.
The platform for IoT
Today’s advancements in sensors, devices, machines, connectivity and data insights have created these amazing possibilities for CG manufacturers. To capture its potential, despite messages to the contrary, IoT does not need to be complicated. And there’s a lot you can do with the technology you already have.
Helping manufacturers build on existing technology assets, devices and data to derive business value from IoT is a cornerstone of Microsoft’s vision for the mobile-first, cloud-first enterprise. We believe The Internet of Things starts with your things. With Microsoft Azure IoT services and the Cortana Analytics Suite, you can monitor existing assets to improve efficiencies, drive operational performance to enable innovation, and use advanced data analytics capabilities for intelligent action to transform your company with new business models and revenue streams.
We look forward to witnessing the new innovations that consumer goods brands will unlock through IoT and helping you along the way.
LinkedIn: Doug Caywood
Twitter: @dougcay
