<b>Vantage point:</b> Insights from cutting-edge research

Social media complaints can be an alternative to market discipline

Nothing inspires consumer frustration quite like an airline flight delay. Researchers from the University of Toronto’s Rotman School of Management have used those meltdown moments — and the complaints they produce via Twitter — to study how consumer “voice” may influence business behaviour. Economists believe markets act to discipline companies for poor performance as consumers will withdraw their business if they are not happy. Complaining, as opposed to switching, has been suggested as an alternative mechanism. The public nature of social media now makes it possible to track consumer complaints, the market circumstances in which they’re made and how companies respond.

Not surprisingly, the researchers found that passenger complaints via Twitter increase when an airline’s “on-time” performance worsened. The deterioration in on-time performance generated about 

50 per cent more complaints when the airline was the dominant carrier in the passenger’s local market. Airlines also responded more often when competition was limited and when the passenger mentioned the airline’s loyalty programme in their tweet. The finding suggest companies in low-competition markets may have the most to lose from ticked-off customers because these customers generate high margins yet have the ability to go elsewhere if they are not happy.

8.4 billion connected ‘things’ will be in use in 2017, says Gartner

Gartner, Inc. forecasts that 8.4 billion connected things will be in use worldwide in 2017, up 31 per cent from 2016, and will reach 20.4 billion by 2020. Total spending on endpoints and services will reach almost $2 trillion in 2017. Regionally, Greater China, North America and Western Europe are driving the use of connected things and the three regions together will represent 67 per cent of the overall Internet of Things (IoT) installed base in 2017.

The consumer segment is the largest user of connected things with 5.2 billion units in 2017, which represents 63 per cent of the overall number of applications in use. Businesses are on pace to employ 3.1 billion connected things in 2017. “Aside from automotive systems, the applications that will be most in use by consumers will be smart TVs and digital set-top boxes, while smart electric meters and commercial security cameras will be most in use by businesses,” said Peter Middleton, research director at Gartner. In addition to smart meters, applications tailored to specific industry verticals (including manufacturing field devices, process sensors for electrical generating plants and real-time location devices for health care) will drive the use of connected things among businesses through 2017, with 1.6 billion units deployed.

Balance cybersecurity investments with understanding of behaviour 

Cybersecurity professional are dissatisfied with technology investments — and a combination of data sprawl and eroding network boundaries makes security more difficult — but there are opportunities to improve security postures and results, says a new study by global cybersecurity leader Forcepoint. The study, “The Human Point: An Intersection of Behaviors, Intent & Data”, was compiled through inputs of more than 1,250 cybersecurity professionals worldwide.

Rather than focusing solely on security from a technology perspective, the survey’s results reveal potential upside associated with understanding users’ behaviours and intent as they interact with critical business data, such as intellectual property. “For years, the cybersecurity industry has focused primarily on securing technology infrastructure. The challenge with this approach, however, is that infrastructure is ever-changing," said Matthew P Moynahan, chief executive officer at Forcepoint. “By understanding how, where and why people touch data, businesses will be able to focus their investments and more effectively prioritise cybersecurity initiatives.”