Data Is A Powerful Weapon. Use It Responsibly – And Tell People
Former Cisco CEO John Chambers famously predicted that there would be 50 billion connected devices by 2020. Thanks to the Internet of Things (IoT), his forecast may soon become reality.
Things such as appliances, cars, medical devices, street lights, wearable technologies, industrial machinery, military equipment, and logistics systems are beginning to share huge volumes of information. Organizations that collect, store, and analyze this data can increase efficiency, cut costs, and make smarter decisions.
Despite this rapid growth, however, IoT technologies are still in their infancy. Consumer devices have drawn the most attention so far, but it’s likely that IoT will have more widespread applicability in business applications.
That’s why executives who want to gain value from IoT technologies need to make hard decisions about this dynamic, maturing technology. Among the most important concerns are privacy and security. To stay compliant with regulatory mandates and to create trusted relationships with customers, companies must protect and secure data.
Protecting data assets – and your reputation
Thinking about what’s possible with IoT is not enough. You must also consider what’s responsible in your data practices.
For example, who owns the data you collect? Is it the consumer, the device owner, or the device manufacturer? In the United States, Internet service providers are now permitted to sell any and all of their consumers’ information without consumer consent. Is it a breach of consumer privacy if the ISP’s customers buy data that tracks individuals’ entertainment preferences? E-mail communications? Online bill payments?
What about data created by an asset that has multiple owners over its lifetime? If a customer rents or leases an air compressor, the company owns the asset and the data it produces. But if the company later sells the compressor, who does the data belong to – the old owner or the new one? Should the data be stored by a trusted third-party to prevent breaches?
Many cars can track driver behaviour. Some consumers elect to share that data with their insurance carriers. But should the car’s technology alert the police or the insurer after every minor accident? Should law enforcement officials be able to access that vehicle data, or does it belong to the driver?
Developing trust
As you develop your IoT policies and strategies, look for ways to increase consistency across all touch points while correlating your interactions with customers’ changing wants and needs.
For consumers who opt in, you can use the IoT to enable a constant feedback loop that can boost product innovation, enhance service interactions, and engender new customer loyalty. For example, imagine a family whose vacation is interrupted by a rainy day. The beach resort that recognizes this need could save the day – and develop a loyal customer – by sending the parents coupons to enjoy a local movie theatre, museum, or bowling alley.
Balancing privacy and security and the insights enabled by data can be tricky in the age of the IoT. But organisations that adopt sophisticated data and analysis strategies for using IoT data – while still protecting customer privacy and security – stand to gain a practically unbeatable competitive advantage.
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Follow me on Twitter @TomRaftery.
This article originally appeared on Forbes SAPVoice.