Have you ever wanted a customised menu from McDonald’s?
There are big things coming in the next ten years, if technology companies are to be believed. How will this impact us, the consumers? CBR spoke to Mike Riegel, Vice President of Internet of Everything, Cloud, & Services Marketing at Cisco about what to expect.
What do you expect from the IoE in the next ten years?
We’ve always had a point of view that it’s not about the things. The industry is all worked up about the things, but the things are strictly a tool. It’s the connection of the people, the process, the data and the things that really matters. Between now and 2025, what’s going to happen is more and more industries are going to move into taking advantage of it because the benefits are going to start to line up.
The reason that healthcare is one of the early adopters of the Internet of Everything is that if you can connect an individual’s health record to the hospital to the emergency provider to the doctor you can improve the customer experience, make sure you have more accurate data and probably save their life a little faster. It’s pretty easy to make the case for investing in the IoE for healthcare.
The same is true in retail; I had a meeting with the CIO of one of the big fast food [outlets] in the US. He started with a loyalty app. That was easy, connecting the people to the data. Once he did that he began to realise how much more he could do. He could get their purchase history and start to change his supply chain. When they walk in the store I can recognise them and offer them promotions that let them buy more.
So if he can improve the customer experience in the store, improve his supply chain and have better targeting of demographics, that’s three different benefits. The technology is going to continue to accelerate and I can’t predict the technology, but by 2025 there will be more industries that clearly understand the use-cases.
What effect will that have on companies’ processes?
If you understand how processes are done today in companies in particular, it’s very hard work. It’s always hard-scripted and very difficult to change. If you implement SAP and then you want to change it, well good luck. You’re going to have to get another million dollars out and six more months.
All of that eventually is going to go away. Everything is going to be light-weight apps, the type of apps that you have on your phone which are 20 Mb not 2 terrabytes. There are going to be purpose-built apps for every step of the process.
Retail banking is a good example; most major banks in the US you can now deposit a cheque with your phone. That’s a purpose-built app for depositing a cheque, which actually might sit inside the loyalty app of the bank but actually inside it’s just a very small piece of code that takes a high quality picture and sends it to a certain place in the bank.
More and more that’s what we see happening with corporations is these lightweight apps that are much more agile and therefore easier to integrate to banks, retailers and hospitals. I think that’s one of the big ones that we think we have a unique view on this because most of the large software and hardware vendors are still investing in the traditional method.
Can you give an example?
We’re working with Bank of America, the big bank, because they’ve realised that their end process for giving you a loan on a house is too long in time, it has too many steps and it has a lot of paper.
They lose about 50 percent of people in the funnel. The last house we bought we actually went to three different banks over the phone. They all had the same rate so [we went with] the one who got back to us first, who had the best customer service, who offered the deal with the least amount of paperwork. With the Bank of America we’re going to digitise their whole process.
You’re not going to have to go into the bank any more, you can do it over Skype video. You can send in pictures of documents using your phone. By digitising the whole thing down to about seven steps, not only can we simplify the time and the steps but their satisfaction has gone up and their yield has gone up. That’s an example of a big process in a big regulated industry that you can digitise and transform.