In the previous post we looked at the key components for ERP III and the Digital Economy to Build the Borderless Enterprise. While ERP system integration with Data Analytics is a key bridge for the Digital Economy, other components cannot be ignored.
A successful roadmap for the Digital Economy includes some of today’s biggest business enablers: mobility, social interactions, and the Internet of Things (or, some form of product or service usage information).
The Internet of Things Provides New Revenue and Customer Insight
Internet of Things (IoT) adoption is moving along, ranging from connected productivity devices to value-added services embedded in products . When it comes to revenue generation for connected devices, Capgemini notes that less than 30% of companies find ways to monetize connected devices.
The Phase 1 Internet of things, is focused on device connectivity to enhance productivity, or provide value-added services, including things like:
- smart meters for managing energy usage
- remote readers for utility meter readings remotely
- smart refrigerators
- computer printers connected to the cloud
- home security systems managed through smartphones
- smart appliances with smartphone notices (such as those from Whirlpool)
- GM’s OnStar system
Device connectivity will continue to accelerate and proliferate over the next 5-10 years. As this occurs, the marketplace winners are those organizations who monetize their connected device offerings, or use those data streams to evaluate new service or product opportunities. If you don’t have an organic data stream through some IoT device, then other external data sources, showing customer sentiment around your company’s products or services, is critical in the Digital Economy.
Mass Customization Finally Becomes “Customerization”
It has long been a goal of product and service providers to perform “mass customization”. The idea that you can sell a unique product or service to just one person at a price which compares to a mass produced item. As noted in Customerization: the next revolution in mass customization, pg. 14: [FN3]
While the idea of “customerization” is over a decade old, the digital economy is making it a reality.
Marketing activities change when you consider this definition in the context of deep analytics including: social media, the Internet of Things (product or service usage insight), and mobile devices. Engaging in highly targeted marketing, down to the individual customer, is now a reality. The technologies finally enable cost efficiencies and the analytics to support individual marketing efforts.
Mass Marketing is Now Personal Marketing
Amazon was one of the early personalization pioneers. Their recommendation engine has served as a model to organizations everywhere. Google’s targeted advertising, along with many other firms is beginning to change the Internet shopping experience. Eric Schmidt, the Chairman of Google, states:
Go Digital offers a brief guide for digital economy personalization: [FN6]
- Leverage Big Data
- Use targeted rewards and deals
- Use a multi-channel approach, including social media
- Leverage existing marketing content
- Be persistent and patient
- Get local
Do You Need Help With Digital Marketing?
Personalization is a key marketing component of the Digital Economy. That personalization, and your marketing efforts, are driven by data analysis, through multiple data channels and several delivery mechanisms. The components are all there for your Digital Marketing future–, but those components must be deployed and integrated into your ERP system for the greatest benefit.
Whether you are far along in that journey, or just getting started, there are always ways to improve your navigation. Contact me today on how Capgemini can provide a map to your technology-enabled business transformation journey. We can help you get to where you want to go without all the detours, dead-ends, or u-turns.
Best wishes and good luck on your journey!
With about 145,000 people in over 40 countries, Capgemini is one of the world’s foremost providers of consulting, technology and outsourcing services. Contact me today for more information on how Capgemini can help your business take advantage of the digital economy.
Bill Wood – Principal
(704) 905 – 5175
[FN1] Westerman, G., Bonnet, D., McAfee, A. (2014) Leading Digital. Turning Technology Into Business Transformation. Harvard Business Review Press, ISBN 978-1-62527-247-8.
[FN2] The Internet of Things. Are Organizations Ready For A Multi-Trillion Dollar Prize? http://www.slideshare.net/capgemini/internet-of-things-34854286 (retrieved Jan 20, 2015); See also, Monetizing the Internet of Things. Extracting Value from the Connectivity Opportunity. http://www.slideshare.net/capgemini/iot-monetization (retrieved Jan 20, 2015).
[FN3] Wind, J., & Rangaswamy, A. (2001). Customerization: the next revolution in mass customization. Journal of interactive marketing, 15(1), 13-32.
[FN4] Hart, C.W. (1996). Made to Order. Marketing Management, 5(2), 12–22.
[FN5] Ask a Billionaire: Eric Schmidt’s 2014 Predictions. https://www.youtube.com/watch?v=vzKM8oyCsUg retrieved December 10, 2014. Bloomberg Youtube Interview of Eric Schmidt.
[FN6] Personalized Marketing Campaigns: Meet the New Normal. http://www.godigitalmarketing.com/personalize-marketing-campaigns-nationalblog/ retrieved December 10, 2014. Go Digital, a Gannet Company.