The internet of things – the Emperor’s not so new clothes?

What chief information officer, chief executive, or chief marketing officer in the world doesn’t like those sorts of figures?

But these numbers aren’t new and nor is the IoT. Machine-to-machine (m2m) technology has been around for a significant amount of time, really taking hold in telecoms businesses from 2009.

Matt Hatton of Machina Research describes m2m as the "plumbing" of the IoT.

At BWP we have been working with O2’s m2m team and Telefónica Digital since 2011 and have seen first-hand how the IoT has benefited businesses and end-users alike.

It’s a technology that’s already here, but it is only truly being embraced by businesses where the technology is already clearly understood, the tangibility is high or regulation dictates; automotive and transport, security, energy and utilities.

Doubtless the IoT offers huge business opportunities, including:

• Improved maintenance and security
• Improved control and co-ordination
• Heightened efficiency and productivity

But this, in part, is why the IoT has not yet reached a level of maturity or resonance that suggests 75 billion connected things by 2020 is possible.

A recent Accenture report, 'Winning with the Industrial Internet of Things', has found that 84 per cent of respondents believed the IoT would generate new, service-based income streams, but a mere seven per cent had developed a strategy with investments to match.

Most business leaders see it rather as a way of making efficiency gains through improved employee productivity (46 per cent) and reduced operational expenses (44 per cent).

Those providing solutions related to the IoT often drive this introspection; many remain resolutely focused on talking about the technology rather than the very human benefits it can provide to end-users.

For businesses to gain a significant competitive advantage, it’s essential that cheif marketing officers are part of the conversation in how it is implemented and not just chief technology officers or chief information officers.

There are key marketing led opportunities around product development, customer relationships, new revenue streams and smarter, more relevant advertising.

Chief marketing officers can truly reap the rewards the IoT offers, but they must be brave enough to sow the seeds now and take the following steps:

• Look beyond the jargon and the hype. Be laser clear on what the IoT offers and where it could tangibly improve your customers’ lives
• Be clear on the strategic changes to the business and the long-term implications (and opportunities) they offer. The Telegraph noted that the IoT signaled a move beyond simply supplying an item for purchase as businesses would have an on-going relationship with a buyer and the product. This is seen in the case of connected car tyres that report their status back to the manufacturer
• As with any technology related to data collection, people will fear a loss of control over their lives and privacy. The challenge will be to introduce connected services in a way that is reassuring and beneficial, rather than scary, but also in a way that will allow consumers to be in control

Ultimately, the role of the marketer is to put people first and technology second, but too often that means they enter the conversation when it’s too late to shape the technology they actually require.

The emperor’s new clothes it is not; but chief marketing officers must be on the design committee to make sure those clothes are not just some flashy wearable technology, but technology that makes the emperor’s life healthier, safer and more in control than ever before.

Kieron Weedon, director of strategy, BWP Group