Page 8 - index
P. 8
RESEARCH, ANALYSIS & TRENDS
New marketing opportunities, thanks to IoT
The Internet of Things (IoT), or in other words the net- The professor and "management guru" Michael Porter
working of smart products, is regarded by many as the divides the possible functions of smart products in four
next major revolution in the field of information technolo- areas in a recent Harvard Business Review article:
gy. It is a revolution that has the potential to significantly monitoring, control, optimization and automation. These
affect the structure of entire industries and value chains, functions can all be combined in one product and are
as well as the rules of competition - if not dissolving and based in this order to each other: (1) Monitoring must
rearranging them – and these upheavals affect the mar- be understood as the collection of data on the status
keting communication in particular. and usage of the product itself and its environment. (2)
Control means the remote control of the smart product
The Internet of Things opens new potential, but poses functions by the software platform. (3) Optimization
at the same time new challenges. As already men- means in this case that the product is either autono-
tioned, IoT describes the networking of so-called smart mously improved, based on the detected monitored
and intelligent objects. Products are dubbed smart if data, or improved by the control of the software plat-
they have, in addition to physical components (such as form. (4) Automation means that products, such as ro-
a motor), intelligent components (for example, sensors, bots, automate their functions largely or even complete-
processors, software systems or data storage) and ele- ly without human influence.
ments that crosslink, allowing a data exchange of the
product with one or more other smart products and gen- Use of the collected data in the marketing
eral IT systems respectively. communication
Hence, the Internet of Things requires from companies For marketing, monitoring is of particular relevance.
a certain technological infrastructure that consists of Successful marketing is nowadays data-driven and the
hardware and software, software platforms in the cloud number of marketing-relevant data will potentially multi-
or an ASP service that e.g. analyze the data collected ply by the Internet of Things. With the help of usage
by the product or control functions of the product and data, a better understanding and more targeted ap-
the network connection between these two stages. proach of customers can be achieved in the B2C sec-
tor.
8 Asian eMarketing - April 2016: IoT, VR & AR in Marketing
8
New marketing opportunities, thanks to IoT
The Internet of Things (IoT), or in other words the net- The professor and "management guru" Michael Porter
working of smart products, is regarded by many as the divides the possible functions of smart products in four
next major revolution in the field of information technolo- areas in a recent Harvard Business Review article:
gy. It is a revolution that has the potential to significantly monitoring, control, optimization and automation. These
affect the structure of entire industries and value chains, functions can all be combined in one product and are
as well as the rules of competition - if not dissolving and based in this order to each other: (1) Monitoring must
rearranging them – and these upheavals affect the mar- be understood as the collection of data on the status
keting communication in particular. and usage of the product itself and its environment. (2)
Control means the remote control of the smart product
The Internet of Things opens new potential, but poses functions by the software platform. (3) Optimization
at the same time new challenges. As already men- means in this case that the product is either autono-
tioned, IoT describes the networking of so-called smart mously improved, based on the detected monitored
and intelligent objects. Products are dubbed smart if data, or improved by the control of the software plat-
they have, in addition to physical components (such as form. (4) Automation means that products, such as ro-
a motor), intelligent components (for example, sensors, bots, automate their functions largely or even complete-
processors, software systems or data storage) and ele- ly without human influence.
ments that crosslink, allowing a data exchange of the
product with one or more other smart products and gen- Use of the collected data in the marketing
eral IT systems respectively. communication
Hence, the Internet of Things requires from companies For marketing, monitoring is of particular relevance.
a certain technological infrastructure that consists of Successful marketing is nowadays data-driven and the
hardware and software, software platforms in the cloud number of marketing-relevant data will potentially multi-
or an ASP service that e.g. analyze the data collected ply by the Internet of Things. With the help of usage
by the product or control functions of the product and data, a better understanding and more targeted ap-
the network connection between these two stages. proach of customers can be achieved in the B2C sec-
tor.
8 Asian eMarketing - April 2016: IoT, VR & AR in Marketing
8
