According to a Frost and Sullivan report, each of us is likely to have an average of 5.1 connected devices (IoT devices) by 2020. Will this avalanche of connected devices impact the way marketers manage their brand?

Yes, of course.

With the increase in the number of connected devices, the pool of data they will collect will rise exponentially in the coming years. The data thus collected will reveal to us critical pieces of information and patterns in consumer behaviour around the world.

According to a study conducted by the Economist Intelligence Unit (EIU) among 500 top marketing leaders, more than half of them believed that the explosion of potential marketing channels via the IoT will impact the field of brand management the most by 2020. These devices present a million ways in which brands can connect to their customers and gives them access to enormous amounts of data that they can use to evaluate consumer behaviour and trends.

Here are some of the ways that the IoT will redefine brand management and engagement:

A new wave of adaptive advertising

Advertising will become a whole new ball game in the IoT era. Just like it adapted to the changes that were brought in by mobile and social media, advertising will fit into the IoT groove. Connected devices help companies understand customer behaviour better by interacting with them in real-time. This will, in turn, lead to more personalised and targeted marketing.

Customers would also appreciate it, proves a study conducted by the Interactive Advertising Bureau. The study found that almost 65 percent of the 1,200 adults who participated were “willing to see ads on their IoT screens”. 62 percent said that they were already receiving such ads.

Enhanced customer experience

Using IoT devices, brands will be able to achieve what the Altimeter Group’s Customer Experience in the IoT report calls the ultimate marketing objective: delivering the right content or experience in the right context. They will be able to go beyond just products and provide their customers with an entire experience. Brands will have an unprecedented insight into each customer’s journey, which will help them make optimizations to their products in real-time.

Amazon’s Mayday button (that connects you to a live tech support system) is a classic example of how brands are already using IoT devices to revolutionise customer support & service.

Support can also be proactive and invisible to the customer. Take the case of Tesla cars. The IoT devices in the cars report performance data to the manufacturer, which allows them to correct any deviations by administering software updates or by proactively scheduling a service visit.

Increased customer loyalty

One of the key ways to drive customer loyalty is by giving your clients rewards for activities that does not necessarily include purchase of your products or service – for instance, sharing information about your brand or liking your page on social media channels.

With IoT devices, the expanse of such behavior and the ability to track and reward them increases. An example of this is how health insurance firm Humana uses wearables to reward customers for adhering to their fitness plans. According to a report by Loyalty360, this led to about 20 percent increase in healthcare savings and a 44 percent reduction in sick days. On similar lines, utility companies are rewarding customers who reduce their energy loads during peak hours, by tracking it through an IoT device like the Nest Thermostat. Such rewards breed satisfaction, loyalty and repeated purchases.

What is the down side?

IoT is still in its nascent stages and there still are concerns regarding privacy and security issues. Apart from this, there is also a growing apprehension about whether the current infrastructure is capable of handling the data load that will arise as a result of so many connected devices.

However, some observers say that IoT devices would trump the existing mobile wave in the coming years. Although there will be a huge surge in the number of IoT devices, a recent Forrester report discards this theory. The report says that IoT will overlap with existing mobile technology. Brands will have to define engagement strategies keeping in mind that smartphones are the primary interface and that it will be used as a main controlling centre for all connected devices.

In conclusion:

Brand engagement and management is, thus, set to evolve in the coming years, thanks to the IoT. With just a few sensors, everyday things can become a crucial point of communication between the customer and the brand. As convenience, communication and care increases, so will brand loyalty and engagement.

The Internet of Things (IoT), a growing network of connected ‘things’ that can collect and exchange data using sensors, has revolutionised the way in which we do business, interact with our consumers, travel, eat out, and, in general, just get things going in our daily lives. According to BI Intelligence’s Global IoT Executive Survey 2017, the number of IoT devices are expected to go up to 22.6 billion in 2021, from 6.6 billion in 2016.

The more immediate way that IoT will affect each of us will be through the special group of devices now collectively referred to as “smart home” applications. From security monitoring devices to smart switches, beds, fridges, entertainment systems and even a smart laundry machine that folds your clothes, the range of devices that were introduced for your home, at this year’s Consumer Electronics Show 2017, at Las Vegas, was astounding. Let’s take a look at how these devices are transforming the way we live:

Energy-conscious living

Convenience is the key word when it comes to smart home and IoT. But it is also instilling and encouraging a new style of energy-conscious living among us. For instance:

· Remote access lighting that can be programmed to fit your mood, Wi-Fi enabled thermostats that regulate the temperature at home, or HVAC (Heating, Ventilation & Air-Conditioning) control systems that use sensors to turn lights and devices off when no one is in a room.

· With devices like Nest Learning Thermostat, one can automatically adjust temperatures in the house using location information and far-field sensors.

· Remember that time you fretted about whether you had switched off the stove, iron or toaster just as you got out of home? Smart plugs that are connected to your smartphones will come to your rescue now by letting you know exactly what devices are on and running, and what’s more, they can even be remotely switched off.

Although the aim is to conserve energy and save costs in the long run, most IoT devices in this category are priced steeply as they are just entering the market.

Enhanced home security

Smart home devices also protects you and your family from unwanted intruders. Smart locks are not just about remotely locking or unlocking doors without physical keys, they also allow you to track who is entering and exiting your house and report unfamiliar or suspicious activity. Like hotel room locks, digital keys can be issued to your kids, guests or trusted handymen who wouldn’t have to wait for you to leave work and be present physically to open the door for them. These features go a long way in being able to enter with ease at times of unforeseen events like medical emergencies.

Predictive maintenance

Every device needs maintenance and repairs at different points in its lifetime. With IoT technologies, we can now reduce the downtime in our devices and maximise their efficiency by knowing exactly when each device at our homes needs to be mended. Smart home devices use data to keep track of the wear and tear or damage that every device goes through and predicts its maintenance cycle. According to a study conducted by the US Department of Energy, predictive maintenance can reduce energy and maintenance costs by up to 30 per cent, eliminate breakdowns up to 40 per cent and reduce downtime by up to 75 per cent. By optimising a device, the energy it consumes can also be cut by 20 to 25 per cent.

Centralised automation

Now, what if we could control all these devices just by speaking to one master robot? For many of you, this may not come as surprise because Amazon Echo and it’s voice-activated assistant Alexa have been the talk of the town lately. You can connect all your smart home gadgets to Echo and manage them using voice instructions given to Alexa. Similar products are available by many other service providers like Google Home, Apple HomeKit and most recently Wink. All these devices are geared towards user convenience, comfort and energy efficiency.

Now for the downside!

Although all this may seem like a leaf out of a thrilling sci-fi book, these devices are not without its complications. The main problem? Security concerns. We will need heavy-duty technological infrastructure in order to manage the huge amounts of data collected from IoT devices and to ensure that they are not misused or tampered with. The other barrier that I see as of now is the high cost, which, I hope, should be pushed down with more affordable technologies and increasing scale of production owing to growing popularity of such devices.

Smart homes represent just a microcosm of how the IoT devices can revolutionise our lives. This can be used as a blueprint to scale this revolution up to smart cities and the like in the near future. The aim of technology is to make life easier and the beauty of IoT is that it makes this possible as seamlessly as ever.

References:

1. https://phys.org/news/2012-10-smart-technology-energy-home.html

2. http://www.businessinsider.com/internet-of-things-smart-home-automation-2016-8

3. http://www.businessinsider.com/the-us-smart-home-market-report-adoption-forecasts-top-products-and-the-cost-

and-fragmentation-problems-that-could-hinder-growth-2015-9

4. http://www.econais.com/applications/smart-home-applications/

5. http://www.greenpeak.com/Application/SmartHome.html

6. http://www.computerworld.com/article/2490360/consumerization/the-internet-of-things-at-home–why-we-

should-pay-attention.html

7. http://www.cypress.com/blog/internet-things-iot/home-smart-home-how-wiced-will-change-way-we-live

8. http://insurance.safeco.com/news/how-smart-homes-are-changing-the-way-we-live/

9. http://www.curbed.com/2017/1/12/14219800/smart-home-tech-ces-2017-trends

10. https://www.techuk.org/insights/news/item/10020-ces-show-report-part-3-the-smart-home-virtual-reality-and-drones

What could be the ‘Word of the Year’?

Demonetization.

From the addas of Kolkata to the high-end hotels of Mumbai, from my driver in Kochi to the Uber driver I met in Chennai, the discussion centered on one and only topic – how the high denomination cash ban is going to affect our economy.  The media too has been replete with stories of migrant laborers losing their jobs, and hotels reporting record cancellations.

In the midst of all these developments, a few companies, or rather financial startups, were seen having all the fun. Mobile wallets like Paytm, Mobikwik and Freecharge recorded all-time high transactions through its wallets. Vijay Shekhar Sharma, founder of Paytm, sold one percent of his stake in the company for a whopping Rs. 325 crore.

And I have had some exciting conversations too in the midst of all these developments. Over the last fortnight or so, many prospective entrepreneurs wrote to me asking whether they too can jump onto the fintech bandwagon. After brainstorming with some of them, here are three guidelines or trends that we need to keep in mind about the fintech industry:

1. Fintech is not just mobile wallets

Yes, this is what most people think. However, that is not the case. From alternative lending to crowdfunding, and enterprise finance to foreign exchange, there are around 11 broad categories of fintech companies (excluding cryptocurrency sector, whose legality is still being debated). So, if you want to start up in the fintech sector, find out where yours and your team’s strength lies. For instance, if your core team’s prowess is in programming, you could think of a startup in software for institutional investors or investment tech or banking tech.

Two good friends of mine do a roaring business in banking tech. Almost a decade back, they realized that core banking software solutions (CBS) developed by software majors were either too pricey for small banks or weren’t customized to their needs. With their rich experience in banking sector, they developed a CBS tailored to meet the needs of co-operative banks. And today, they claim that their solution is used by more than 200 co-operative banks in Kerala.

1. Fintech is here to stay

The potential of fintech market is growing exponentially, and has not been restricted to a year or so.

The Indian fintech market is forecasted to reach  $2.4 bn by 2020 from the current $1.2 bn, as per NASSCOM estimates.

Increasing smartphone penetration, easy availability of credit, burgeoning e-com sales and Government policies incentivizing card/wallet payments are set to further increase the absorption of fintech in India.

1. Is your fintech idea unique?

To illustrate, if you are planning another mobile wallet with almost the same set of features as your competitors, it will be hard to get a footing. There are a lot of well-entrenched mobile wallet players in the market who are heavily funded. And their marketing strategy is mostly focused on discounts and cash backs. So for a new entrant in the mobile wallet space, there will have to be unique partnerships, enormously simpler user experience, highly differentiated value proposition, and of course huge cash reserves to create the brand/market. In essence, you will have to research and find a unique pain that needs to be addressed rather urgently to be successful.

Take for instance, the Kochi-based startup Spenwise. The company is developing a prototype that will help parents provide a debit card to children, wherein the parents can decide as to where the debit cards can be used. In other words, it’s a parent-monitored debit card for children. The debit card market is a highly crowded one for sure. However, Spenwise team’s idea is unique and designed to reach an audience not much catered by the current set of players.

A year back, I wrote a blog for ‘Business Standard’ detailing the things one should evaluate before taking the entrepreneurial plunge. Fintech or not, these basic rules still apply.

Before I wind up, here are a few fintech sectors that will have a lot of potential in the years to come:

Peer to Peer (P2P) Lending

These are mostly online platforms which connect individual investors with borrowers in need for financing. In other words, it is a matchmaking site for loans.

The global market for P2P lending is expected to grow to USD 1 trillion by 2025. Even though India-specific growth figures are unavailable, I believe that close to 60 mn small businesses in the country will lead the demand for P2P lending.

Financial Inclusion

Recently, I read about the success of the startup, Novopay. In just 2 years, the startup has managed to serve close to 5 lakh customers. The reason for the runaway success – a unique idea in the financial inclusion space. Novopay helps migrant laborers and daily wagers electronically transfer money to their families back home.

So, if you have an innovative solution in the financial inclusion space (remittances, direct benefit transfers, digital identity, aadhar-enabled KYC, microfinance and so on), you have a fortune waiting for you.

Cyber Security

Cyber attacks are increasing by the day, and so are investments in cyber security. The global cyber security market is estimated to be $175 bn by 2020. So, if you are planning to start up in fraud detection solutions, iris/ voice/ visual/ fingerprint recognition services and e-KYC products, expect double digit growth rate in a few years.

Do you have any innovative ideas in the fintech space? I’m all ears. Tweet to me @kmukund7 or write to me at hello@mukundkrishna.com.

Reference

http://economictimes.indiatimes.com/small-biz/money/paytm-founder-vijay-shekhar-sharma-raises-rs-325-crore-by-selling-1-stake/articleshow/55886819.cms

https://assets.kpmg.com/content/dam/kpmg/pdf/2016/06/FinTech-new.pdf

With Intel estimating that in the next three years, there will be 26 smart objects for every human being on Earth, and with McKinsey estimating a potential global economic impact of up to $11.1 trillion a year by 2025, it is clear that IoT will revolutionise the way we do business, irrespective of whichever sector we may be working in.

Many of the top players like Marriott International, Hilton Group and Starwood’s Hotel and Resorts have adopted newer technologies to drive customer satisfaction. One thing that is common to every business in the hospitality industry is that to be successful you need to understand what your customer needs because it is one of the few industries which sees the actual physical participation of the customer in the sale process. It is also a business that thrives on the loyalty factor. So pre-empting your customer’s expectations is crucial in attaining business success.

This is where IoT technologies can help.

IoT and predictive maintenance

Not long ago I read about a small cafe in Sydney, Australia, called Get York Coffee, which faced a humongous loss of inventory because one of its refrigerators broke down. The day after this incident happened, the cafe’s owner, Shawn, fitted his refrigerators with sensors that could monitor the internal temperature of these refrigerators. The sensors consist of a gateway that connects to the cafe’s Wi-Fi network and hosts a web portal. The sensor unit is connected wirelessly to this gateway. This tiny sensor transforms the fridge into a ‘smart’ device by sending e-mail notifications to its operator if there is a rise in temperature above the acceptable limits. Such a notification, says Shawn, helps him place a service call before the device actually breaks down. He could also move his inventory, in time, into another refrigerator if needed.

This is an example of predictive maintenance, which is one of the biggest ways in which the hospitality industry can use IoT to improve their service, reduce their costs and even ultimately generate more revenue. Some bigger hotels are also using the technology to inform their staff about broken air-conditioners and leaky pipes. The Starwood’s chain recently began experimenting with an energy saving concept called “daylight harvesting”, in which an IoT device regulates the lighting in a room by turning down artificial lights depending on the amount of natural light that comes in. Businesses are also talking about using Iot devices and big data to map and store a guest’s personal preferences to automate the same during future visits.

Mobile and wearables: The hub of IoT

Imagine the possibilities arising out of connecting smartphones to other IoT-enabled devices? Take for instance, the Hilton group’s digital keys feature, in which you can stand at a stipulated distance of your hotel room and open the door by just tapping on the digital key in the hotel’s app.

The same technology is being used to automate or regulate the energy and lighting settings in the room of many hotels around the world. This sounds like a win-win situation to me–the hotel can cut down on unnecessary labour costs and the customer can get fast, uninterrupted service, literally “at the tip of his fingers”. In fact, a Magnani Caruso Dutton survey found that 74 percent of the 1,000 travellers surveyed preferred that their hotels were “proactively involved” in making their visits better. This meant that the customers were perfectly okay to relinquish a bit of their private information if that meant they would get a better experience for what they paid for.

Another huge area where the IoT is creating a wave is wearables. These devices are moving beyond the fitness, health or caregiving industries. In fact, some hospitality groups have already started incorporating wearable bands to give the customer access to the property and allow them to set or go back to their personal preferences while travelling within the properties of the same group. A great example of this is the MagicBand by Disney. The band helps sync your whole Disney experience in one device and allows customers to unlock their rooms, enter theme parks and even charge food and merchandise bought at Disney properties to their hotel room account.

The way ahead

Hotels around the world have already started experimenting with various IoT-enabled devices and technologies. Some prime examples are that of the Marriott International’s M-beta concept, which takes real-time feedback on services through touchpads placed throughout the building and adapts accordingly, to Aloft Hotel’s Project Jetson, which allows guests to adjust ambient settings in their room and much more by just ‘voicing’ their desires.

These examples are proof enough that the future is, in fact, right here. By incorporating IoT devices to your operations seems like a logical step to take in these times. If done right, after proper assessment of your assets and proper infrastructure to ensure data security, IoT will be the key to shaping your hospitality business into a success in the near future.

references:

http://www.intel.com/content/www/us/en/internet-of-things/infographics/guide-to-iot.html

http://www.iothub.com.au/news/how-iot-saved-a-sydney-cafe-thousands-433160

http://www.stamfordadvocate.com/business/article/Starwood-hits-environmental-milestone-6065115.php

http://hhonors3.hilton.com/en/hhonors-mobile-app/digital-key.html

https://mcdpartners.com/wp-content/uploads/2014/12/Seeing_Returns.pdf

https://disneyworld.disney.go.com/plan/my-disney-experience/bands-cards/

http://www.marriott.com/hotel-info/cltcc-charlotte-marriott-city-center/m-beta/22umtoc/home-page.mi

http://www.alofthotelshub.com/news/aloft-hotels-unveils-voice-activated-hotel-rooms/

Today, a promising technological revolution is predicted to make a global economic impact of about $1.9 trillion by 2020 and $2.5 trillion by 2025; and it is the Internet of Things. For those unfamiliar with the term, the Internet of Things or IoT may sound like one of those jargon that IT guys throw around casually. In reality, IoT is a progressively promising wave of new possibilities and opportunities, which will give the technology we use today a remarkable boost. In simple words, it is just establishing a relationship between machines. It refers to being able to share information through every day ‘things’ or devices over a network. It is going to change the way we connect with the world around us forever.

According to Gartner Inc., almost 26 billion devices of all kinds will be connected through the IoT by 2020. The intelligent systems that are created by these connected devices will provide us with data that will help study and explore critical information and patterns in the world. Such data will be useful for marketers—a study by Marketo found that about 51 percent of the world’s top marketers agree that IoT will revolutionize the marketing landscape in the coming four years. With IoT, marketers would be presented with the enormous opportunity of interpreting data from smart devices to evaluate consumer behavior, identify trends and tailor campaigns accordingly. But that’s not all. Let’s see how IoT will influence marketing as we know it in the near future:

Better mobility of data: The core of IoT lies in being able to share information over a    network. Information thus shared would be something that is extracted with the permission of the user and would translate into a marketer’s goldmine. With the devices doing all the work automatically, better and easier transfer of data will be possible. It will also be easier for a marketer to lay his hands on earlier unavailable data or information that was too cumbersome to collect.

Real-time, specifically targeted marketing efforts: This is especially true if we are talking about the customer’s in-house or in-store experience. A real-time exchange of data becomes possible, thanks to multiple IoT devices that sense location, and track the customer’s buying journey. Armed with this information, a marketer will be able to figure out if a customer is indecisive about the choice he needs to make. In such a scenario, the marketer can speak to the customer in real-time or send them a message on their authorized, registered phone number, maybe offering a discount or so. In effect, here, a consumer’s data collected through various IoT devices are being used as a raw material for real-time, specific marketing efforts.

Increased customer understanding: Why has social media become so popular? Because, it builds connections. IoT, too, is all about building new connections and making older ones stronger. Being connected to an extensive network of devices only means that communication becomes swift and meaningful. Instead of providing feedback and taking time to collect this information and act on it, now marketers will be able to receive feedback instantaneously and come up with remedies sooner. Such a level of connectivity also translates to better analytics. For instance, suppose your business sells coffee from a vending machine. The data collected from the purchases made at the vending machine will enable you to track patterns in consumer buying and also understand the demographics of purchase and consumption. Does the purchase rates spike during a certain time of the day? How often are purchases made and within how much time of one another? Such information will provide marketers a good ground to base their targeted and personalized marketing campaigns on.

Better click-through rates: With IoT, marketers are finally reaching their all-time aspirational high of ‘relevant advertising’. Campaigns and ads will be more streamlined, personalized and specific. This means that as a consumer you will see less and less of information or advertisements of things that do not matter to you; instead you will be rewarded with information of what you really do need at the right time and place. This will also ensure that marketers can be assured of better click-through rates and engagement for their campaigns.

IoT offers tremendous opportunity when it comes to customer engagement and marketing. Marketers are able to tide through two of their most important struggles—one being why consumers are interested in your products or services, and the next being that it opens the door for real-time interaction with your end-users or buyers. Although, some of you may feel a bit skeptical about privacy issues, and the kind of personal data that will be collated and used to market products and services to you, I would want to remind you that only if you allow the permission to a smart device to do so, will it be storing your data. The choice is still yours. Despite the many challenges it comes with, like infrastructure concerns, connectivity issues and security concerns, I cannot help but be optimistic about what IoT holds in the future for businesses like ours.

Unknown to you, predictive analytics is a part of your daily life in many ways – in the search suggestions on your Google search, in the product suggestions you see on our page when you shop on Amazon, and even in your Gmail account that automatically detects and filters spam messages.

Healthcare, insurance, and banking are some of the more important areas where predictive analytics is being used in a big way. However, it is B2B marketers, 89% of them, who have embraced predictive analytics as an essential part of their business roadmap. By 2020, predictive analytics is expected to attract 40% of an organization’s net new investment in BI and analytics.

So why should entrepreneurs and businesses in India care?

Netflix analyzes millions of viewer data to predict which movies or shows would be most popular with their audience as well as to provide program recommendations to their customers.

Facebook uses customer data to predict product preferences, which it applies to its advertising activities. It uses Facebook interactions and ‘likes’ posted by its members to predict preference patterns among customers.

Predictive analytics has immense scope for utilization in a country like India, which has an economically disparate cross-section of consumers, as also in sectors riddled with high unpredictability like the oil and gas industry. 80% of CIOs belonging to the oil and natural gas industry feel that increasing their big data and analytical capability can optimize their businesses. Predictive analytics has helped such companies by predicting maintenance requirements of high-value machines and facilitating proactive maintenance.

More and more companies are trying to apply predictive analytics to their business to get a deeper understanding of customer relationships, build better products, and secure higher revenue. There is a great demand in the Indian market for analytics-driven tools and solutions that offer deeper data visualization and accelerate business decisions.

Predictive analytics help businesses improve their customer service and their branding, and market their products more effectively, besides improving employee relationships. Employee data can be analyzed to identify high-performing employees as well as employees who show signs of discontentment. While the organization can ensure that the former are suitably rewarded, managers can take timely steps to engage employees who are at risk of attrition, thereby increasing the average retention rate in the company.

The challenges of predictive analytics

Predictive analytics comes with its challenges – the first one is in identifying the areas within your business that can gain the most from predictive analytics. An organization needs to be clear on the problems that it seeks to solve using analytics, and the business goals it aims to achieve at the end of the process. Implementing any technology without a clear goal and direction can be risky.

Often, there is a clear disconnect between the CIO and the management within an organization in harnessing technology for business advancement; which can be a problem in applying predictive analytics. In a study, 60% of CIOs believed that analytics enable corporate strategists to make fact-based decisions. However, only 35% of the management agreed with this. To implement data analytics within an organization, you need specialized tools and solutions that can put a strain on your budget. The management needs to have a unified approach towards the rationale and objectives behind investing in this technology.

When done right, predictive analytics can give you deep customer and market insight, drive high operational efficiency, and enable fast and accurate decision-making. In short, it can be the game changer you seek to turn the market in your favor.

While we are still in the nascent stages of adoption, we believe the IoT opportunity for Industrials could amount to $2 trillion by 2020. The IoT has the potential to impact everything from new product opportunities, to shop floor optimization, to factory worker efficiency gains that will power top-line and bottom-line gains.” — Goldman Sachs, in its report The Internet of Things: The Next Mega-Trend

A smart refrigerator that reminds you to restock your pantry, and orders the everyday necessities from your nearby supermarket. A smart wearable for the elderly, which keeps them on track for their doctor’s appointments, refills their medications and pays heed to their vital health statistics.

The above examples may just be the most basic devices that can explain the functioning of IoT best. But the scope of this hugely connected technology lies way beyond these simple devices. Imagine all kinds of devices that can be powered by such smart functionalities—medical devices, motion-detecting security devices, GPS-based location systems, utility meters, toll meters, smoke detectors, and embedded systems! According to Gartner Inc, about 6.4 billion devices are already connected to the cloud of IoT. In the next four years, this number is expected to rise to 20.8 billion, and the market value of the IoT economy to 1.7 trillion dollars.

Why is IoT important for India?

The beauty of IoT is not that there will be enhanced connectivity. The real essence of this phenomenon lies in what we can use such connectivity for. From better civic facilities to proper transportation management, waste management, health service providers, road safety measures, agricultural management and power consumption, the possible outcomes are many.

There have been many examples of businesses and governments worldwide having turned their games around with an innovative inclusion of IoT to their arsenals. Take BMW, for instance. They reduced auto-warranty costs by 5 percent and reduced scrap rate of defective vehicles by 80 percent by only implementing predictive maintenance and quality control IoT. With smart IoT fixtures, Oslo city reduced their energy costs by 62 percent.

Such changes can be brought about in India, too. Given that we are the fastest growing IT market in the world and are expected to grow to a figure of at least $85 billion by 2019, India has the capability to embrace this wave of IoT. However, such an expansion would call for secure connections, reliable bandwidth and scalable technologies. The question is—are we ready for that?

The Indian government has been surprisingly proactive in this sphere, and has unveiled a plan of building 100 smart cities around the country and allocating over Rs 7000 crore to this project in last year’s budget. Understanding that the scope of IoT extends over key sectors like retail, IT, oil and gas, manufacturing, disaster management and healthcare among many others, the government has formed a Centre of Excellence on IoT with NASSCOM to help nurture and grow this ecosystem. These are positive steps towards turning India into a global digital powerhouse that Indian entrepreneurs and businesses dream of.

What is the role of IT in India in the IoT wave?

In my opinion, the three sectors that will drive this IoT wave are the government, the industry and the IT or tech startup sector. The Economic Times predicted recently that 43 per cent of the IT budgets of firms will now be pumped into IoT projects and solutions by 2020.

Using IoT technologies, the Indian IT sector is changing the way in which businesses create value for their customers. With IoT, businesses can boost their operations, reduce costs and enhance the experience they provide customers with. They can become leaders and change agents of industry transformation, update their institutional expertise and work towards sustainable growth. I am thrilled that the IT sector is at the forefront of such a revolutionary transformation.

What are the challenges India needs to tackle to take advantage of the IoT wave?

According to India Internet of Things Market Forecast & opportunities, 2020, the IoT market in India is projected to grow at a compound average growth rate of over 28% till 2020. As tech solutions providers, I think it is our responsibility to educate our clients on the benefits of IoT and help them deal with their fears over security and privacy concerns.

Currently, the rate of IoT adoption in India is limited to few verticals like FMCG, healthcare and energy, among others, for a variety of reasons. Unreliable internet connectivity tops the list of challenges, closely followed by limiting prices of IoT devices, lack of global vendors and an unsuitable or underdeveloped infrastructure to support the huge amounts of data and traffic expected to flow through these smart grids. If we can join our efforts to deal with these challenges, India will soon be able to reap the benefits of the IoT revolution.

So, back to the question we began with: Is India ready to jump on the IoT bandwagon? Given its software prowess, India has the ability to lead this digital revolution worldwide. All that is required is the creation of a healthy ecosystem of the government, industry, start-ups and academia to drive this change.

It is time to put our seat belts on!

A start-up is like a tight-knit family. Teams are usually small, with little or no hierarchy and the setup is almost always informal. In such a situation, even one employee quitting the start-up can be a huge blow. The simple reason is the personal and professional impact. As you grow, the impact is not as bad as one employee leaving a 5-10-person team. But, people have to move on and they will, and as a start-up owner, you may have to take this blow many a time in your entrepreneurial life.

At Suyati, we have been lucky to be blessed with very low attrition rates, but that doesn’t mean that our employees don’t leave. Some of them have to move on because of inevitable personal or professional reasons. But whether you are a start-up or a corporate giant, every time an employee leaves, it has the ability to reduce productivity, affect resource planning, and upset client delivery.

So while it is not an ideal situation for any company, here are FIVE things you can do to handle it as quickly and efficiently as possible.

1. We don’t take it personally

For those who sow the seeds, a start-up is always their baby. But it’s unfair to expect every employee to feel the same way. Yes, we hire our employees for their passion for the cause we are working towards; but we also hire them because they are talented, ambitious and competent professionals.

So when an employee quits, we don’t take it personally. Instead, we respect their personal decision of wishing to hone themselves professionally in some other direction. It’s important for those running a start-up to understand that employees will grow out of the start-up at some point and be ready for other challenges.

2. We find out why

Start-ups have an advantage over bigger firms—communication channels are simple and open, making it easier to find out why an employee is leaving. We always make it a point to find out why he/she chose to make this decision. Is it something we can rectify? Is it a raise or a change in title they are looking for? Is there a problem in the office culture? We try our best to rectify or improve any such conditions for our employees.

But sometimes, the employees really just want to move on. They just want a change of scene. If that is the reason, the right thing to do is to let them find their own way, ease the process of leaving, and encourage them to stay in touch.

3. We involve them in hiring and training

If the decision is final, the next step is to take full support from the employee who is leaving by involving them in the recruitment and training process for their replacement. We make sure that they share all important information with the newcomer so that the transition between employees becomes as smooth as possible.

4. We keep in touch

This is also crucial, especially when you work out of a start-up environment. The world is a small place, so we work on ensuring that an employee’s tenure ends on a positive note. Recently, we met the HR manager of a huge IT firm in Trivandrum who couldn’t stop talking about the “positive view and attachment” that our ex-employees have for Suyati. It was a proud moment for us and it encouraged us to reinforce our method of handling even the most difficult situations with a smile on our faces.

Professional connections should always be maintained because one cannot predict how they can come around to help, sometimes unexpectedly, at a future stage. Some of our ex-employees have come back to work for us, while some have become our advocates, and help us by referring candidates and client leads occasionally.

5. We have a system in place – for business process and employee retention

Despite our best efforts some employees still move on. We have put a system in place to protect Suyati from such sudden blows:

• No one employee holds the key to all crucial processes or information. We distribute responsibilities among the team without concentrating it on specific individuals.

• We encourage the documentation of all key information of the firm. Managers must have a clear blue-print for key processes within their departments and know how to navigate important software that their team uses.

• Most importantly, we go great lengths to keep our team happy and engaged by introducing fun activities at work to unwind. Every employee is a part of the family and is treated as a valuable member. This, along with clear communication channels and transparency in our actions, help in employee retention.

Saying goodbye to your employees with a smile is the result of a positive work atmosphere where you are committed to give your team the best work environment and the most opportunities to grow.

The digital revolution is changing the way we consume information, make choices and conduct business. Gartner says that nearly 1,25,000 large organizations are launching digital business initiatives now and predicted that their revenues would increase by more than 80% by 2020. Gartner also predicted that within the next two years, around 70% of CEOs would be placing digital transformation at the center of their corporate strategy.

It is then no surprise that every business is figuring out how to use technology to deliver the best user experience for their customers. This use of digital tools to radically improve the performance or reach of your business is referred to as digital transformation.

Digital transformation can mean different things for different companies. For some, it means acquiring customers through digital means, and for some others, it refers to improving operations by implementing connected systems and processes. For a few, it is a mix of both of this.

Simply put, digital transformation means building and connecting systems together across various enterprise functions so that insights generated from the data thus collected can be used for continuous improvements, aimed at bringing about profitability for the enterprise.

The touch points for such interactions may be mobile devices, web applications or social channels, giving providers ample opportunity to improve their client’s business through innovation. Embracing digital advances like analytics, mobility, social media and smart devices to keep up with the ever-changing customer expectations and behavior is the only way ahead for businesses now.

The tale of tables

Check this amazing example of how digital transformation happens. Humanyze is a Boston-based people-analytics company. It wires up employees of its client companies with wearables, sensors, digital data and analytics to map and measure how they collaborate with each other and how it correlates with the company’s productivity. The tale of tables started when Humanyze was called on by a famous online travel company to analyze their employees’ productivity. Humanyze found that productivity levels rose when employees had lunch together, which was positively correlated with an increase in the number of employees at a table. At the travel company, Humanyze found that employees always had lunch in groups of four or 12. And, that was because all the tables in their cafeteria were for either four or 12. The company took the unlikely step of increasing the table sizes to increase productivity.

This example makes it clear that digital transformation is not centered just on technology or on the acquisition of latest gadgets or software. It is on how a business effectively uses the information they collect from their digital technologies to bring about a positive business outcome and customer satisfaction. The real success mantra stems from how each business integrates such useful analytics and social technologies to transform the way their business works. This also highlights the fact that businesses should build their digital transformation strategies with a people-centric motive.

The Suyati way

At Suyati, we believe in enabling digital transformation using customer relationship management (CRM) systems, content management systems (CMS) and other related technology to make sure that businesses remain relevant to their customers and can adapt to changing customer expectations without delay.

How are we achieving this? We are building skills in technologies and in new areas such as IoT, cloud, analytics and data science through our experiences with various clients. As an organization, we are combining each of our employee’s skills in an effort to create a suite of frameworks and utilities called Mekanate to easily enable our delivery of digital transformation services.

In layman terms, we believe in putting people–both our customers and employees–in the center of every business equation, and empowering them with high-performing technological solutions.

Every process of digital transformation that Suyati enables involves three distinct steps:

• Extracting insights from the collected data.
• Understanding the relevance of that insight and converting it into an actionable solution.
• Reinventing existing models to incorporate this action and driving a positive outcome for the business.

Why your business needs to adopt digital transformation

Even five years ago, it was a nice add-on to have access to and use digital tools in your business. But, now it has become a necessity. According to a report by Capgemini and MIT Center for Digital Business, 78 percent of business leaders believe that achieving digital transformation is critical for their organizations. Here’s why:

1. It encourages collaboration: Digital transformation requires your teams to work together in real-time, sharing and collaborating on various processes. This helps hone the end product or experience into a well-rounded one. This empowers, engages and connects your team.

1. It increases productivity: As people drive this transformation process, there is continuous action happening and the scope for delay is limited. There is open access to information for employees via all devices, thus enabling them to work from anywhere, using the best device for the process at hand. With increased collaboration and simplified workflows, it is not surprising that productivity will go up as well.

1. It ensures transparency and builds trust: Using real-time insights from data collected gives way for a rather open workflow and sets ground for a new level of transparency. And, transparency breeds trust which in turn builds relationships, using which you can get access to real-time feedback and work on continuous reinvention of your products and services.

1. It drives innovation: By using models that work faster, foster collaborations and factor in customer expectations, the chances of creating a better and more innovative product and service is high. The focus is on delivering value to your end-customer, and digital transformation forces one to think creatively to deliver the best results.

Digital transformation efforts should be directed by a clear vision of what lies in the future for the business. Bringing together your teams and empowering them with required digital tools is the starting point for a successful future run.

The rulebook of any successful organization would have the word “innovation” in it. And, today I will be focusing on innovation in the thought process of organizations. Whatever role you may be holding at your workplace, you will find that the core requirement from you as a part of a larger team is to come up with ‘innovative’ solutions in the least amount of time, using the resources at your disposal most efficiently. This holds true irrespective of whichever field of work you may belong to or whichever level of the organization you may be working at. Today, innovation has become everyone’s business. And, that’s where design thinking enters the picture.