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Internet of Behaviors is Critical to Remodeling Customer Experience and Business Innovation

"Glean through the human-computer interaction data and analyze the continuously changing customer behavior to reinvent IT, security, and solutions.

Karanjit Singh, CEO, Kellton Tech

6 min read Last Updated : Apr 13 2021 | 10:26 AM IST

“Glean through the human-computer interaction data and analyze the continuously changing customer behavior to reinvent IT, security, and solutions, re-engineer products and services, and deliver superior experiences. The time is ripe. Enterprises must put the Internet of Behaviors (IoB) at the center of business innovation.”

As cloud, AI, smart analytics, and other disruptive technology forces mature to drive the experience economy, the Internet of Behaviors (IoB) emerges as the ‘Enabler of Experiences (EoE).’ Welcome to the technology-driven world. For companies teetering on the brink of exhaustion due to the COVID-19 crisis, technologies must have become conspicuous by its absence. In contrast, the early adopters of digital transformation affirm their successful pursuit of growth and innovation in the experience economy, which blossoms in the post-COVID-19 world.

The world is no more the same. To be precise, success amidst the new normal is not primarily determined by the quality of products and services businesses offer but by the level of experiences they deliver. According to a report published by PwC, just one bad experience by a brand is enough to drift away 32% of its customers. Such facts highlight the need to build a concrete experience roadmap. 

Digital transformation enables companies to ensure business continuity and shape response to crises such as COVID-19. But to derive meaningful experiences, companies ought to lean on the Internet of Behaviors in specific.

Harness the Internet of Behaviors to Reap Data Benefits and Deliver Personalized Experiences

The Internet has enabled companies to surpass boundaries and think beyond conventional limitations. We are in an age where the Internet of Everything is prevalent. Smart devices permeate consumers’ lives, 5G ensures seamless connectivity, and IoT (Internet of Things) leverages the devices and the Internet to gather data from across the platforms. Statista reports, between 2010 to 2020, the creation, capture, copy, and consumption of data have grown globally by a whopping 5000% and grow further at a CAGR (Compounded Annual Growth Rate) of 26% from 2021 to 2024.

Currently, there are over 4.66 Billion internet users worldwide, who will together spend over “1.3 Billion years of human time online in 2021.” With such an incremental speed, imagine how much data the Internet will generate in the coming decade.

It is at this juncture when IoT extends to become the Internet of Behaviors. With instant access to consumer data and the ability to extract actionable insights, companies can easily decipher customers’ behavior. It means knowing their preferences, practices, habits, needs, wants, and more would become easy for them. These learnings play a critical role in designing and delivering personalized experiences to customers.

How the Internet of Behaviors Sits at the Centre of Everything?

Amidst the technology-led restructuring of companies, customers, and markets, IoT (Internet of Things) plays the linchpin. No one technology can help businesses create holistic experiences. IoT ensures interoperability between disparate technologies, devices, and systems, gathering data from across the endpoints and allowing other technology forces such as AI, ML (Machine Learning), and analytics to perform data mining. It enables companies to incorporate behavioral intelligence, which is critical to turn into a behavior predictor. And because behavior drives decisions, the Internet of Behaviors sits at the center of everything. 

# Business Profit and Growth:

Businesses must strategically use behavioral data in the modern age. McKinsey informs behavioral insights are critical to unlocking an 85% growth in sales and a 25 increase in gross margin. Businesses can glean through the data to perform behavioral analysis and understand the provenance and the fate of customers. Knowing such facts through the Internet of Behaviors is the key to considering recommendations, building predictive models, and developing robust strategies to improve engagement, conversion, and retention. 

# IT Reinvention and Application Development:

Customers' behavior tends to change continuously and with it changes the demand. It is where the need to practice agility and scalability highlights. With a better understanding of behavioral science, companies can reinvent their IT landscape and pursue custom application development to meet the demand force and win customers’ loyalty. For instance, SaaS (Software-as-a-Service) business models, API (Application Programming Interface) integration, or hybrid integration strategies allow companies to build a customer-driven environment and pursue continuous innovation.

# Systems and Workflow Restructuring:

When we say the Internet of Behaviors is the key to restructuring business systems and workflows, it is about becoming a smart, data-driven business. Untangling the behavioral complexities would mean developing efficient data security habits among employees, spotting market trends, deriving business and customer value from data, reducing turnaround times, measuring your marketing strategies' success, analyzing performance, and more. Enhanced learning the behavioral data underpins the molding of systems and workflows with minimal risks and without increasing operational costs.  

# Human Experiences:

Creating superior human experiences is vital to stay ahead in the experience economy curve. The Internet of Behaviors offers a 360-degree view of the customers mindset and enables companies to enhance their behavioral economics knowledge, developing competitive intelligence. With ready-access to the behavioral data, it becomes seamless for marketers to target specific customers, map operations with the supply chain, and arrive at viable conclusions concerning product engineering, building private-labeled solutions, and delivering holistic experiences.

# Cyber Strategies:

As the new normal arrives, cyberspace expands, and the need for robust cyber strategies and cyber awareness grows. Thought leaders disagree on centralizing the behavioral data as hackmongers can misuse and exploit the data, leading to unimaginable collateral damage. Therefore, it becomes critical to measure cyber behavior and create a cybersecurity mesh, which incorporates cyber resilience models. It helps companies build moats and castles around customers’ private data, which faces more risk in a distributed architecture.  

Karanjit Singh, CEO, Kellton Tech

Internet of Behaviors Encourages Combinational Innovation 

Agree or not, but behaviors drive decisions. Businesses can churn behavioral data to make result-oriented decisions, develop customer-centric strategies, re-engineer products, services, and solutions, and deliver optimum user satisfaction. When behavioral analytics is readily available and accessible, developing privacy-first approaches and building resilient delivery models becomes seamless. In short, with the Internet of Behaviors at the core of everything, it would become convenient for businesses to bridge the experience concerning the Everything of Business (EoB).   

It won’t be an exaggeration to call IoT the cradle of innovations in the digital world. It plays a vital role in facilitating significant technologies that widen both the economies of scope and economies of scale. 

Offering the ability to perform behavioral analysis by collating data, the Internet of Behaviors paints the business landscape with combinational innovations. With every different innovation, the aim is to craft and deliver solutions and services that redefine human experiences and thrive continuously to reach every inpidual customer. 

First Published: Apr 13 2021 | 10:26 AM IST

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