Is Your Brand Ready For The Connected World?

After almost a quarter of a century since the term “the Internet of Things” (IoT) was coined, we are close to a world in which everything has connectivity embedded. It has been predicted that within the next few years, 88 per cent of organisations will offer intelligent services. That will affect sectors from mobility to medicine and from personal care to production lines, as innovators create ecosystems containing products and services with intelligent capabilities.

Already there is a proliferation of products that can connect and exchange data via communications networks and smart devices, powered by artificial intelligence (AI) and machine learning. Now, as the Making Connectivity Matter report from Capgemini's agency frog expertly illustrates, we're on the precipice of that truly Connected World.

Life-enhancing technological innovation

Intelligent devices and tools will increasingly help enhance our day-to-day lives and in the professional sphere will unlock new business models and revenue streams that will fuel economic growth.

But as Heather Brundage, senior director of strategy and innovation at Capgemini's Synapse, explains: "A lot of companies aren't set up for success—what got them to where they are today won't get them to where they need to go."

And it's not all about comfort and profit; when it comes to the planet, connected products and services promise to be a crucial part of a sustainable future thanks to their ability to offer more efficient ways of operating.

Our planet already knows a thing or two about the power of connectivity, of course. Vast underground mycorrhizal networks enable trees, fungi and more to thrive in forests around the world. Migratory birds in flight use thermal air currents to help them travel efficiently across continents. The Amazon rainforest plays a major role in both local and global climates due to the water it releases into the air and seas.

Mindful of the need to protect these delicate ecosystems, the future of connectivity must be traced with sustainability at its core, argues frog in its study. As with any developing technology, the way these powerful new connected devices are harnessed will be key to their success.

Faced with existential climate risks, businesses, governments and consumers alike are rightly asking tough questions about the balance of value brought by new goods and services, with a particular focus on tackling the rising e-waste problem.

The consultancy believes that to deliver on the promise of a truly connected world, business leaders and innovative thinkers must ask themselves the following questions:

• What tangible steps can we take to build the

next generation of products and services that

will change the world for the better?

• How can we ensure that new offerings consider

both our business and our planet?

• Can these new offerings be woven into a smart,

future-proofed ecosystem?

The consultancy also believes that success lies in four interconnected strategies: Focus, Design, Innovate and Impact.

FOCUS: Find the right path

The Making Connectivity Matter report also found that only 7 per cent of organisations surveyed had scaled use cases for intelligent products and services. This means that many organisations have yet to prepare for what’s next in the connected world, whilst those who are already active in the space have a strong head start.

Developing effective breakthroughs in this space can be tough. The same report suggests that there are various stages where organisations typically get stuck. While it seems fundamental, many companies struggle to identify or articulate the user value and business case that will underpin their success—they jump to piloting or become too enamoured with a specific technology. It’s crucial to take the time to identify a significant enough customer need and see a strong enough potential ROI that can survive the inevitable twists and turns of new development.

However, taking the steps to ensure there is a clear business goal, plan and an understanding of what's involved is key, frog argues. So, get ready to demystify the initial stage to take the first systematic and deterministic steps that inspire the confidence to take big, bold steps.

DESIGN: Aim for iconic

According to frog's chief design officer, Chiara Diana: "From customers, to clients, to consumers, to employees, we have an opportunity through design in the context of the connected world to really augment and supercharge humans across all aspects of their lives."

To deliver on the full potential of the connected world, frog believes the entire spectrum of design capabilities and disciplines must be mobilised. A convergent design approach is crucial to accessing new sensing capacities through physical products, as well activating the service design around the data that is captured or the layer of services that could be enabled with digital experiences.

But the report argues that it’s vital to design for sustainability throughout every step of an innovation journey across the lifecycle of the product; from ensuring that products are designed using the right materials, as well as optimising resources and minimising impact in assembly, transportation, use and end of life. This includes seeking more circular approaches to the way that the product exists in the world, considering the entire realm of interactions with the product and its service ecosystem.

It’s critical to use this approach concurrently and throughout the design process— understanding the environmental “hot spots” and working to mitigate them before they ever become a real problem.

INNOVATE: Make it possible

At its core, innovation is a route to enabling previously impossible value—whether that’s sensing hard-to-get data, interacting with users in seamless ways, delivering insights or even changing the physical world itself.

An easy trap to fall into is innovating for innovation’s sake. For many, intellectual property, and exploring what’s hot and new, is exciting. But building new connected products and services, even from existing technologies, is already a complex undertaking on its own.

To avoid excessive complexity, it’s critical to identify where innovation really matters—for the experience, business model or competitive advantage—and triage the rest. One clear place innovation may be needed is custom sensor development to capture data that is otherwise inaccessible. Another may be in the algorithms and AI needed to generate insights from data.

IMPACT: Deliver at scale

The Making Connectivity Matter report acknowledges that there’s a lot of hype currently around the power of platforms and partnerships, and it’s not without just cause.

That’s because connected products and services can provide even more utility when extended all the way through to enabling and operating as a platform—combining sources of data from across a company’s products and services as well as those of partners, and delivering synthesised insights and actions. There’s a lot of value in doing so, because consumers want the seamless user experiences that come from integrated systems. For example, a fridge that knows it’s almost out of milk is useful, but a fridge that is linked to a grocery delivery service so it never runs out is a different level of value altogether.

Because in the connected world the launch of a new connected offering is just the beginning of the brand journey, frog urges brand owners to think about "living products" that change and develop as technology and consumer needs evolve.

As Jeff Hebert, Capgemini Invent’s global head of intelligent products and services, puts it: "These smart connected products don't end. We need to be listening to our customers and using the data to evolve those products as we go forward."

Unsurprisingly another hot topic in the world of products and services, is the area of servitisation, which includes offerings such as Software as a Service (SaaS) and Mobility as a Service (MaaS).

Essentially servitisation is about moving beyond one-off sales to instead sell “outcome as a service.” In entertainment, think of the move from buying DVDs, to renting them, to subscribing to the SaaS company, Netflix. In mobility, e-scooters from the likes of Voi, Bird and Lime that can be rented with an app in cities around the world are examples of MaaS in action.

These additions can lead to enhanced experiences for end users as well as enabling the activation of new business opportunities and new services added over time. By doing so, businesses can build up incremental and unconventional revenue streams.

Starting the journey

The Making Connectivity Matter report concludes that the shift from traditional products and services requires new teams, structures and ways of operating.

While daunting, this is a journey that must be taken to maintain relevance and drive results in a rapidly changing, highly competitive landscape. With an approach that considers desirability, viability, feasibility and sustainability at each step of the way, bold companies can clear the rising bar, crafting breakthrough connected products and services that bring huge value for customers.

Click here to download the full Making Connectivity Matter report.