Companies today need to understand and adapt to the constantly changing market around them. From the large companies to SMB’s and start-ups, all depend on computer based systems to carry out their daily activities and manage key processes.
Artificial Intelligence (AI) and Internet of Things (IoT) are common terminologies that are used in business today. These technologies are helping companies big and small to participate more effectively in the rat-race that defines the present day market.
What is the “Internet of Things” and “Artificial Intelligence”?
Artificial Intelligence allows machines to make use of their experiences to organize and regulate new data. Although it is not a new technology, its utility in managing big data has made it highly popular. Internet of Things, on the other hand, is the technology that connects different devices and enables them to exchange data so that the physical world can integrate seamlessly into computerized systems. Interconnected IoT sensors and devices generate a massive amount of data. This data is analyzed by decision makers within companies to enable them to make informed decisions to continually maximize profits.
How IoT and AI Work Together?
The IoT is a process of connecting various networks. An example would be a smartphone connected to multiple machines over a geographical region and collecting data from sensors known as “dumb sensors”. What amounts over time is a lot of data, which compiles into “Big Data”. This is where AI comes in. Al analyzes Big Data through various algorithms outputting useful metrics for company operations. This makes the combination of IoT, Big Data, and Al the perfect recipe to improve business proficiency.
IoT and Al enable companies to access data of connected devices in real time. Combined with historical data, companies can make decisions faster, giving them a competitive edge in their market. IoT and Al systems reduce business costs, increase efficiency, and save time and money. A good example where IoT, Big data and Al has been extremely beneficial is the manufacturing industry. Due to the data collected by IoT and thereafter analysed by Al, the manufacturers now can easily decipher and/or predict the technical defects/issues in their machines. This data creates insight into problems that are likely to arise in the future, enabling a model of preventative maintenance. Operations are improved because maintenance can be scheduled, minimizing the risk of unexpected downtime. Though these three innovative processes/techniques are in a nascent stage, developments are being made rapidly, which will benefit many companies and ultimately the society at large.
Here are 4 ways AI, IoT and big data can help business owners to make smart decisions and provide better products and services.
1. Customer Data Segmentation
For every marketing campaign, using data wisely is a crucial task. The customer data you have can be represented in different datasets. These datasets represent groups of customers with similar behaviors, age groups, demographics, interests and likes, and other factors that you need for marketing strategies. With proper segmentation, you can go with the right marketing strategy that can drive more significant results and have a lasting impact. It is common to see advertisements of specific products that you may have already shown interest in or added to your cart while you were casually scrolling through Amazon. Ever wondered how does this product keep popping on your screen? This is all because of AI based algorithms employed by Amazon. From the chunks of data available within Amazon and other sites operating in a similar segment, based on the consumer interest and behavior, it gives the product recommendation to customers. The technique has been proved to be useful for not only E-commerce giants, but SMB’s as well. To slice the data you have, you need a proper segmentation. Experts say that the future of segmentation can be correlated with AI, IoT, and Big Data.
2. Predictive Analysis
More than marketing your products to new customers every day, what keeps you in business is reselling and re-targeting customers. To increase sales, offering complementary products and cross-selling to your existing customers will always prove to be fruitful. To achieve this, predictive analysis plays an important role. Predictive analysis studies the buying patterns of customers and comes up with a list of products that customers may like. These products can then be presented to the customer while they are checking out, in an email, or displayed the next time they visit the website. Through predictive analysis, you can build a better relationship with customers by suggesting them the products or services they may want to buy. For example, if you have 3 million customers in your database and you are planning to run a marketing campaign offering discount coupons with a limited promotional budget, you will only want to give the coupon to customers who are likely to buy rather than the entire list. Predictive analysis can help you take the steps to successfully run such marketing campaigns.
3. Fraud Detection
Every online business runs a risk of fraudulent transactions and illicit traffic on the website. Frauds can occur anytime and can cause massive losses to the business. To counter these attacks, the security system has to be smart enough. Human inspection may not be full proof for such frauds. To deal with frauds, there are many machine learning techniques used. Based on previous fraud attempts, machine learning can detect when there's unusual activity happening on a website, take action, and remember for the future. This makes the system robust, super alert, and responsive to any fraudulent activity. Airbnb, leverages machine learning technology to detect and prevent the fake listings before they are live on website. They block the fake listings by using millions of data sets with machine learning algorithms.
4. Personalized Targeting
To gain a competitive edge, it is imperative to give your customers an incredible experience with good products and services. With AI and machine learning, it is possible to capture what the customer likes and enhance their overall experience. A personalized experience is a driving factor for conversions on your website. AI and machine learning algorithms take away the guesswork of what customers like and give a user history based list of products that the customer is likely to buy. AI algorithms assist in knowing the customers better, understanding their behavior, and ultimately retaining the customer and influencing their purchases with a personalized experience.
Technology continues to take the way we do business to another level. It helps in crucial decision making based on user behavior. Retaining customers, avoiding frauds, enhancing their experience give companies a competitive advantage and helps them survive and sail through the stiff competition. Although many businesses are using these technologies, the one with consistent efforts, appropriate algorithms, quick and wise decision making will hold steady and soar in a competitive landscape. If you are looking for a custom software developer who can help you increase your company’s productivity and ROI in a cost-effective and timely way, call Konverge. Our services range from technology consulting, business analysis, QA, application maintenance and solution integration, UI and UX design and more. Call us to bring your business vision to life.