There’s something amazing happening across the world right now. The sun is rising on a new technology era. Not just the regular innovations – smaller processors, better displays, and other general hardware changes. We are facing a massive restructuring of the entire industry, which will drastically impact the world we live in. Does this sound alarming? It should.
The Big 3:
There are 3 major forces at play, which, when fully actualized, will accelerate one another exponentially.
The Internet of Things
The Internet of Things, often referred to as IOT, is a term that refers to the global network of connected devices. This means your cell phone, Alexa, your smart home system, your wifi air purifier, any device that is connected to the internet, is an IOT device. IOT is substantial because of the data generated by these devices. A toaster is just an appliance to make leftover pizza taste awesome again, but an IOT toaster is a device that opens a gateway of data with endless possibilities. What times do toaster owners tend to use their toasters? This question provides insights into which meals people may be preparing using their toaster. Are people using their toasters on the highest temperatures, or is that more of a rarity? This question benefits the manufacturers when designing new products’ capabilities. Companies can’t get enough of these insights.
The example I chose was a toaster, because it’s a simple device that does one thing, but imagine the IOT impact of a vehicle or smart-home system. Endless data, virtually infinite insights.
IOT is not a trend or fad, but rather an industry. In a previous blog, I mentioned that there will be an estimated 20-30 billion IOT devices by 2020, with a market value of $7.1 trillion. The industry is not limited to home products, and will also cover surveillance, security, healthcare, document management, and much more.
Artificial intelligence carries many connotations, but for all intents and purposes, let’s stick to machine learning and forget about the flying space robots for a minute.
Machine learning is the implementation of algorithms that parse data, make tons of comparisons, and then use what they’ve learned to make informed decisions. Imagining you have a ton of data, machine learning is the process of comparing and contrasting that data every which way in order to infer correlation, causation, and other conclusions.
Business Intelligence is the transformation of data into actionable insights. Data can be used by an organization to accomplish numerous things, including:
Analyzing customer behaviors, buying patterns, sales trends
Measuring, tracking, and predicting sales and financial performance
Budgeting and financial planning and forecasting
Tracking the performance of marketing campaigns
Optimizing processes and operational performance
Improving delivery and supply chain effectiveness
Web and e-commerce analytics
Customer relationship management
Strategic value driver analysis
What does this mean for the future?
There are plenty of other IT trends on the rise, so why are these 3 so important when shaping the future? The short answer: They enhance one another. The coming surge of IOT devices is going to open the floodgates on data. Companies are adjusting by creating Chief Data Officer positions, because the implications of such a data surge are enormous. AI will serve to parse data and spot trends and help to create narratives that the most expert analysts would typically never be able to. On top of this, business intelligence is overlaid to help organizations use the insights garnered from data analysis in order to optimize their business models from top to bottom. Cyclically, this creates an opportunity for enhancement to IOT devices and AI methods, which in turn create opportunities to enhance the others.
So again, what does this mean for the future? How will companies be structured? How will commerce be affected? The economy?
I’m not sure. Just make sure to get your data certifications.
Jack Virag Digital Marketing GDI Infotech