Original Publish Date: July 27, 2018
Many company owners can’t imagine a world where their devices, software, and technology didn’t speak to one another and made their life significantly easier and their tasks smoother to manage. Adaptation in the current market is the flavor of the past year.
Dependence on technology and computer-based systems is no longer just a large corporation game, now small and medium companies, as well as startups are in the race and testing, changing, and adapting to the new and improved technology.
Artificial Intelligence (AI) and the Internet of Things (IoT) are common terms you’ll hear in any office and operating room today. These technologies are helping companies participate more effectively in the ever-fluctuating present day market. The winner? Whoever can do it faster, smarter, and with the most integration for a frictionless technology experience.
Let’s talk about the “Internet of Things” and “Artificial Intelligence”. What are they?
Artificial Intelligence allows machines to make use of their experiences to organize and regulate new data which is used to contribute to machine behavior and learning. Although it is not a new technology, its utility in managing big data has made it highly popular.
The Internet of Things, on the other hand, is the technology that connects many sources and kickstarts the sharing and creation of exponential amounts of data. From the home devices sitting on everyone's desk gathering information about people to the oil and energy sectors of entire countries and everything in between, it makes operations durable and factual and based on preferences, behaviors, and previous information, enables companies to make informed decisions to continually maximize profits.
How IoT and AI Work Together?
The Internet of Things is a process of connecting various networks. Think a smartphone, a safety feature in your home, your baby camera, doggy cam, Google helping you find locations, order food, or set up Zoom conferences. The limitations are almost none, and the possibilities endless.
The more technology learns about your clients, the easier it gets to personalize and streamline their lives. That equates to higher sales, better service, and higher retention rates for basically any industry imaginable.
This huge amount of data over time compiles into “Big Data”. This is where AI comes in. Al analyzes this Big Data through various algorithms outputting useful metrics for company operations. The combination of IoT, Big Data, and Al is the perfect recipe to improve business proficiency and customer satisfaction.
IoT and Al allow companies to access both historical and real-time data, rendering decision-making faster and less error-ridden, which translates into a huge competitive edge in the market.
A good example where IoT, Big data, and Al has been extremely beneficial is the home. With millions of people working from home, the need for a blend of home and office lends itself as the perfect field for an interconnected system that helps make decisions, manage mundane and everyday tasks, and smooth out wrinkles on team and company organization.
Another example is in the manufacturing industry. Data collected by IoT is analyzed by Al and manufacturers can easily decipher and/or predict the technical defects/issues in their machines.
Creating in-depth views into problems that haven’t even happened yet or allowing companies to create solutions they wouldn’t think of as possible is the very essence of the combination of AI and IoT.
Here are 3 ways AI, IoT, and big data can help business owners to make optimal decisions and provide better products and services.
1. Customer Data Segmentation and Personalization
Separating the data gathered through marketing campaigns, customer interaction, and interactive software is split and organized into different datasets. Customers with similar behaviors, interests, demographics, places, and age groups, to name a few, are an example.
Using what you’ve learned about a group and targeting your strategy to relate and speak to it in a way it understands and appreciates is at the heart of every marketing campaign launched.
Brands people love and shop with pop up on their screens, perfectly timed and ready to show exactly what the customer is likely to want. With a good understanding of your segmented data, a company can keep ahead of a client, telling him or her what it is they need.
Personalization in areas such as product recommendations, coupons that pop up at certain times of the year or month, brands that have similar but perhaps better-priced products and many more are all a compilation of deep analysis and data. Nothing is a coincidence or a fluke online. The future of segmentation is faster, smarter, and bigger data that knows what your client wants and when they want it.
2. Predictive Analysis
As touched on before, companies are learning more and more about their clients. Free promotions, reselling items at perfect times, knowing who is most responsive when, these are all examples of predictive analysis, which is basically a study of behavior and customers gathered from data available. The more data, the more honed in and accurate the systems are, and the better the sales and marketing strategy targets and converts.
Relationship building is actually the key to the strategy. The better in tune your company is with the needs of your audience, the more attached and appreciative your customers are. Bringing in a level of reciprocity between a client and a company cements a good relationship, trust, and a loyal customer.
Predictive analysis also helps you talk to people in ways that will make them individually feel heard and understood. Selling the same thing in 5 different ways works if you have 5 ways of directing, language choice, and timing based on segmentation.
3. Fraud Detection
Security is always the cornerstone of connection. For many people, the internet is a place that they understand on just the surface. That allows for mistrust and fear to build up quickly. The biggest loss to a business is the loss of trust people have in their product or mistrust on how the information they shared with said company is being used.
To stay ahead of fraud and security breaches, companies utilize machine learning. It takes into account previous issues, current issues being discovered, and can look ahead to prevent new ones from ever happening and prevent similar ones right away.
This makes the system robust, super alert, and responsive to any fraudulent activity. Airbnb leverages machine learning technology to detect and prevent fake listings before they are live on the website.
With Coronavirus hitting the global scene, internet fraud attempts have skyrocketed by 40%, and the predictions say it will continue to keep rising. Only a sophisticated system with plenty of information will be able to withstand such issues in the future. Most recently, the European Union Agency for Cybersecurity (ENISA) released its Guidelines for Securing the IoT, which covers the entire IoT supply chain: hardware, software, and services.
People First, Tech Second
Growth is inevitable, and technology continues to become a seamless and quiet companion to our homes, offices, and other spaces. The best know that to be successful requires a gentle well-timed message to a client who is ready to listen, trusts the company, and believes in the message a brand shares because it resonates with who they see themselves as a person.
The connection between AI, Big Data, and IoT are now an inseparable system meant to upkeep and protect the links humans have made with technology. Companies can use that wealth of information to their advantage. Proper segmentation and a personal touch, coupled with learning about the future are combined with security.
Many businesses try and fail to successfully implement and use these technologies but only the ones with proper structures in place, such as consistent efforts and appropriate algorithms used for decision making will succeed and move forward. For that, you need a trusted partner to work with you and create the vision forward for your company.
If that is what you’re looking for, Konverge is the custom software development company that will get you to the next level of connection. Our motto is people first, tech second. For us, it's always the customer at the center of it all.
Grab a free consultation to get started.