The advent of the Internet of Things (IoT) has disrupted the computer networking landscape. IoT provided a diverse network landscape that accommodated a wide range of devices such as wearables, sensors, computing devices, mechanical devices, objects, sensors etc. IoT enables organisations to monitor data, better use resources, efficiently manage operations, leverage automation, improve productivity and work safety while optimizing operational costs.
The State of the IoT Market
The IoT market is rapidly evolving. According to Fortune Business Insights, the global IoT market is valued at $308.97 billion in 2020. This value is expected to touch $1854.76 billion in 2028, growing at a CAGR of 25.4% between 2021 and 2028. Similarly, Mordor Intelligence reports that the global IoT market revenues will increase from $761.4 billion in 2020 to $1386.06 billion in 2026 at a CAGR of 10.53% during 2021-2026. All these numbers speak volumes of the massive innovation IoT brings to the business network ecosystem. The Internet of Behaviour (IoB) is the new buzz in the IoT landscape.
What is Internet of Behaviour (IoB)?
The Internet of Behaviour (IoB) is a new technology that enables organisations to deliver services to users based on their preferences, interests and choices. The IoB technology leverages the IoT user data and runs advanced analytics on it to derive behavioural trends and offers recommendations based on user choices. It captures all types of human behaviours, analyses the data using advanced machine learning algorithms and other technological innovations. By combining IoT, analytics and behavioural science, IoB enables organisations to deliver better user experience (UX) and search experience optimization (SXO) to customers.
The good thing about IoB technology is that it is not just descriptive but also proactive and prescriptive which means it provides insights into how businesses can derive an expected response from users by influencing certain psychological variables. Applying the IoB technology, organisations can proactively deliver customized offers to the user at the right time using the right channel. While it increases conversion rates, it also improves customer experience and reduces churn.
How does IoB-based IoT Networks transform your Business in 2022?
The benefits of IoB are not just limited to marketing and sales but extend to every vertical. For instance, doctors can prescribe better healthcare solutions to patients based on the data generated from healthcare apps or wearables. It is especially beneficial for patients suffering from critical illnesses as IoB can monitor and identify anomalies to alert the concerned people in real-time.
Ecommerce companies can easily identify key influential factors of customer purchase and offer customized recommendations accordingly. IoB helps autonomous vehicles to reinvent their operations based on the passenger location, bicycle and scooter traffic, city regulations etc. Similarly, transport companies can deliver a better customer experience based on the IoT data of cab drivers, users and locations. OTT platforms don’t have to rely on past data but use your behavioural data to forecast your likes and dislikes.
Coffee chain Barista has been successful in leveraging this technology. Barista uses facial recognition technology to identify the age, gender and mood of the customer and offer customized and appropriate drinks to the customer, thereby delivering a personalized customer experience. Similarly, Booking.com offers personalized suggestions for travel and stay based on customers’ demographics and past interactions. Insurance company Aviva has leveraged IoB to analyze the driving behaviour of a customer and decide the premium amount for vehicle insurance. It means responsible citizens will pay low premiums.
IoB is already disrupting the customer experience space. However, data privacy and integrity is a cause of concern as it is a challenge to configure access levels to users across distributed IoT networks. If behaviour data falls into the hands of a hacker, it can expose sensitive data. As such, organizations should consider data integrity and security as their biggest priority while implementing IoB-based solutions.