The Industrial Internet and SMAC - Social, Mobile, Analytics and Cloud

The Industrial Internet refers to the world of connected sensors on people, equipment, machines, parts, assets, vehicles, inventory, etc.  These items are connected by embedded wireless chips that monitor sensors and wirelessly send data to a server somewhere in the world.  Here is an example of how one of the largest companies in the world is utilizing the industrial Internet.

Every major part of a GE jet engine, locomotive or turbine is equipped with wireless sensors that continuously measure and wirelessly send every aspect of performance to a central server that is often in the cloud. As the data is received by the server, it is analyzed by big data analytical solutions and the results are used to improve everything from the flight path to energy efficiency.

This same kind of Industrial Internet platform could also be used to monitor and improve the health of large populations of people as well.  I think immediately of the elderly, those with chronic diseases, those recuperating from any kind of health issue.  If they can be monitored and cared for while staying at home, that is a far more comfortable and less expensive place to stay for many.  I can foresee a time when we will subscribe our elderly parents to a full time health monitoring plan.  Our elderly parents will wear a bracelet that contains a large number of sensors that monitor a spectrum of things from location to activity levels, temperature, pulse, heart rate, etc.

The industrial Internet will result in massive amounts of new data being added to wireless networks.  MNOs (mobile network operators) make less money supporting a small embedded wireless chip in a piece of equipment than adding a new iPhone customer, but the embedded wireless sensor chip is unlikely to change carriers, call a support center, or dispute an international call; so although the embedded wireless chip is not as profitable as a smartphone customer, the cost of sales and support are far lower.  This area is considered one of the major growth areas for mobile network operators and is currently being heavily promoted by MNOs.

In the enterprise, the ability to know about your operational area is critical.  If you are managing a fleet, it is important to know where they are, which vehicles need new tires, oil changes and other maintenance.  It is important to know and plan for how much money you need to spend each month/year on maintenance and replacement costs.  If you know the location of your fleet, you are better able to provide least cost routing, improve scheduling, avoid traffic and weather hazards and improve overall profitability.  The industrial Internet connects managers with real data, in real-time.  The Industrial Internet proves that knowledge is power.

What is the connection of the Industrial Internet to SMAC (social, mobile, analytics and cloud)?  Let's consider the description above of how GE is using the Industrial Internet.  Every major part of a GE manufactured jet engine has a wireless sensor.  These sensors are continuously sending data to a server.  Many of those major parts are manufactured by third parties - contract manufacturers.  When strange data starts coming in from several parts - I can image there is an immediate need to analyze, communicate and collaborate among many different teams.  As many of your smartest key people are mobile and traveling, you will need mobile communications and the ability to review shared data (a good use case for a cloud-based collaboration environment).

The Industrial Internet has the ability to transform working environments, strategies, industries, processes and methodologies in big ways, just like mobile devices have changed entire businesses, industries and processes.  These two trends are not separate. They build off each other, and because of this the changes and transformations introduced will not be linear.  They will introduce exponential change at a pace most are not equipped to handle.



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Kevin Benedict, Head Analyst for Social, Mobile, Analytics and Cloud (SMAC) Cognizant
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Learn about mobile strategies at MobileEnterpriseStrategies.com
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***Full Disclosure: These are my personal opinions. No company is silly enough to claim them. I am a mobility and SMAC analyst, consultant and writer. I work with and have worked with many of the companies mentioned in my articles.

Mobile Expert Video Series: Kevin in Copenhagen

This week I am working in beautiful Copenhagen, Denmark.  I've had the opportunity to work with a large bank and CPG company and to learn a great deal over the past couple of days.  Today, however, I spoke at the 600minute Executive IT conference.  My session was called, "Mobile Strategies, SMAC and Digital Transformation."  In this short video I highlight the key points in my presentation.  Enjoy!

Video Link: http://youtu.be/bC8rLS5_-q4


*************************************************************
Kevin Benedict, Head Analyst for Social, Mobile, Analytics and Cloud (SMAC) Cognizant
View Linkedin Profile
Learn about mobile strategies at MobileEnterpriseStrategies.com
Follow me on Twitter @krbenedict
Join the Linkedin Group Strategic Enterprise Mobility
***Full Disclosure: These are my personal opinions. No company is silly enough to claim them. I am a mobility and SMAC analyst, consultant and writer. I work with and have worked with many of the companies mentioned in my articles.

How Do You Fund Innovation for Mobile and Digital Transformation?

Last month while in Sydney, Australia I participated in an interesting session taught by my colleague Ajoy Mallik on how to organize a continuous innovation program in-house.  Our client had asked us to help them develop this program.  It was while participating in this workshop that I recognized the value.

Fast forward to today and I am in Denmark experiencing late summer rain and working with a large CPG company and sharing our latest research on Code Halos, enterprise mobility, SMAC strategies and digital transformation.  During the workshop one of the attendees asked the question, "How do you motivate executives to fund innovation?"  It was a great question!  That is a challenge for most companies. Someone needs to pay for it!

The first question might be,  "Can't we just replicate innovation when we find it?"  My answer is that your frontline employees are in the best position to recognize where innovation is needed and how it could most benefit your company.  That kind of specific innovation requires motivation, collaboration and organization, ie., funding!

Your company needs to recognize the importance of continuous innovation - not project based innovation, but systemic.  A system that is continuously asking questions like the following:
  • How are SMAC (social, mobile, analytics and cloud) developments and trends going to impact your markets, customers, partners, suppliers and your industry?  How are these developments going to change the future, and are your budgets aligned with those changes?
  • How is the process of digital transformation going to impact your products and services?
  • How are mobile technologies going to impact your brand, marketing, sales and business models?
  • How are social media channels changing your market and industry?
  • How can you deploy enterprise collaboration solutions to your advantage?
  • How can you become more agile as a business, when your ERP and technology vendors are constantly trying to lock you into their expensive and slow paced technology cycles?
  • What opportunities and risks are presented by the transformation from controlled PR, branding and messaging, to real-time social media feedback and swarming market behaviors?
  • What new risks are being presented to your business models and markets because of all these changes?
  • What changes need to happen within your ERPs and IT infrastructure to support a move to real-time information and updates?
  • How does your company's organizational chart need to change in order for managers to respond quicker to real-time problems and market opportunities?
All of these issues are here today.  Companies must be continuously addressing these changes and trying new ideas, innovations and processes.  This is at the least, self-preservation, and at the most an opportunity to capture market share and achieve competitive advantages.  The future, if a company is to have one, must be funded.


*************************************************************
Kevin Benedict, Head Analyst for Social, Mobile, Analytics and Cloud (SMAC) Cognizant
View Linkedin Profile
Learn about mobile strategies at MobileEnterpriseStrategies.com
Follow me on Twitter @krbenedict
Join the Linkedin Group Strategic Enterprise Mobility
***Full Disclosure: These are my personal opinions. No company is silly enough to claim them. I am a mobility and SMAC analyst, consultant and writer. I work with and have worked with many of the companies mentioned in my articles.

What Do All these SMAC Developments Mean?

The research team at Cognizant has come up with some interesting numbers related to SMAC (social, mobile, analytics and cloud) for us all to ponder:
  • 37% of all media consumption in the U.S. in 2012 was via a mobile device
  • 3 out of 5 searches are done through mobile devices
  • Data production will be 44 times greater in 2020 than it was in 2009
What do you think these numbers mean for enterprises today and tomorrow?

Opinion:

I see digital transformation spinning off many different business trends and technology waves.  Consumers want to consume media on mobile devices. This in turn drives tablet sales, as most media is easier to view on tablets.  Tablets and other mobile devices encourage and promote the digitization of customer engagements and produce more data (code halos) that enables new business models to emerge based on a strategic use of big data analytics tied to marketing and commerce platforms.

The more data and commerce that flows through mobile devices, the more companies focus on mobile marketing and sales channels.  I see no end to the popularity of mobile devices, so this trend is guaranteed to continue.  The question for us now is how this will impact traditional sales and marketing channels and strategies.

Real-time communications and data exchanges on mobile devices, drives the desire for all kinds of additional real-time interactions including collaboration, and commerce.  This in turn requires businesses to transform themselves and re-engineer their businesses to support real-time interactions and engagements.

The competition will quickly move beyond just supporting mobile devices, and re-engineering for real-time commerce and services, to personalizing engagements and enabling context-aware applications and devices (think health and fitness) and Pandora's, Netflix's and Amazon.com's ability to recommend items based on the data they have collected on you.  This same context aware capability will quickly spread into the enterprise where mobile applications will understand you, your role, your task, your location and support your needs without being asked.  There is a lot of work to be done here.  ClickSoftware, as an example, has created context aware mobile applications for field services.  You can read and watch a short video on their ClickButler here.

Another emerging trend is the convergence of mobile and wireless data whether it is from a mobile device or an embedded wireless sensor in your car, home appliance, home security system, oil pipeline, city bus or manufacturing assembly line.  These sensors will quickly be in everything, producing massive quantities of data begging to be used in clever applications for both personal and enterprise purposes.

Recommendation:

I am not reporting anything new here.  This is all happening now. We all see it. Enterprises need to be evaluating their entire "information logistics" systems today to understand where they have problems supporting mobile and real-time environments.  They need to replace any systems that cannot support this quickly emerging world.  They also need to secure this new wireless world and their data from bad guys.

Real-time environments require different management practices.  Companies will need to re-train managers and executives on how to work with real-time data and business intelligence so as not to suffer from decision-making paralysis.  New decision-making tools and methods will need to be employed.  In addition, new business strategies, business models, management techniques, customer service and engagement paradigms all need to be re-thought in this fast moving, mobile and real-time age.

*************************************************************
Kevin Benedict, Head Analyst for Social, Mobile, Analytics and Cloud (SMAC) Cognizant
View Linkedin Profile
Learn about mobile strategies at MobileEnterpriseStrategies.com
Follow me on Twitter @krbenedict
Join the Linkedin Group Strategic Enterprise Mobility
***Full Disclosure: These are my personal opinions. No company is silly enough to claim them. I am a mobility and SMAC analyst, consultant and writer. I work with and have worked with many of the companies mentioned in my articles.

Mobile Marketing History and Infograph

Mobile is now the first screen of influence for many marketers while adults are spending more time on mobile media than newspapers and magazines.

Timeline of Mobile Marketing

Middle ages

- Town criers are used to spread messages

1876

- First telephone introduced by Alexander Graham Bell

1973

- First mobile portable handset invented

1992

- First text message sent from computer to mobile phone

1993

- First mobile phone that both sends and receives texts introduced

1998

- Term "spam" officially added to dictionary to mean unwanted, junk emails

2003

- First commercial mobile SMS launches. Short codes introduced for use with text message marketing

2005

- Nike and Pontiac launch SMS campaigns

2007

- 2.4 billion SMS users worldwide
- Apple iPhone is released in U.S.
- Texting is embraced: Average monthly texts (218) outnumber calls (213)

2010

- Quick response (QR) codes start being used in mobile marketing
- Cambridge dictionary adds "text" as a verb

2011

- Mobile marketing becomes a $14 billion+ industry, including $9.3 billion worth of music

2013

- Android and iOS battle it out for market share

Businesses embrace new technology for mobile outreach

  • Square-like apps for payment
  • Same-day shipping through Amazon and eBay
  • Mobile fingerprinting to secure payments
  • Augmented reality in which customers can point their mobile cameras at products for reviews and discounts

2014

- Mobile Internet usage will overtake desktop Internet usage

2015

- 81% of U.S. mobile customers will have smartphones
- Mobile marketing will generate $400 billion in sales (a 52% increase in just two years)
- Retailers and marketers will spend $19.8 billion on mobile marketing, up from $6.7 billion in 2012)

2016

- Global mobile marketing spending will grow to $22 billion

We Love Our Mobile Phones - and So Do Businesses

91%

- Adults who have their mobile phone within arm's reach

271 million

- Adults who own some type of mobile device

75%

- Percentage of smartphone market held by Apple and Android

86%

- Users who use their smartphone while watching TV

$22 billion

- Mobile advertising spending
- 2012 - 2010
- $22 billion - $3.4 billion

15%

- Online retail sales in 2013 made through mobile devices

3 in 4

- Mobile users who use their device for shopping

$39 billion

Original Source: http://www.topmarketingschools.net/mobile/



*************************************************************
Kevin Benedict, Head Analyst for Social, Mobile, Analytics and Cloud (SMAC) Cognizant
View Linkedin Profile
Learn about mobile strategies at MobileEnterpriseStrategies.com
Follow me on Twitter @krbenedict
Join the Linkedin Group Strategic Enterprise Mobility
***Full Disclosure: These are my personal opinions. No company is silly enough to claim them. I am a mobility and SMAC analyst, consultant and writer. I work with and have worked with many of the companies mentioned in my articles.

Interviews with Kevin Benedict