Internet of Things | Paul Wallbank - Communications Professional

Customer service is no longer a department

Customer service needs to pervasive through modern organisations says Salesforce’s Alex Bard

When it comes to customer service businesses, Alex Bard calls himself a ‘career entrepreneur’, having founded four startups in the field since the mid 1990s.

In 2011 he sold his most recent business, Assist.ly, to Salesforce and became the company’s Vice President for Service Cloud and the Desk.com customer service offerings.

Bard tolds Decoding the New Economy last week how social media and Big Data are radically changing how organisations respond to the needs of their clients.

“I’ve been in the industry for twenty years and I’ve never been excited as I am now,” Bard says. “The real transformational things that’s happening now are these revolutions – the social revolution, the mobile revolution, the connected revolution.”

The philosophy of customer service

“What they’re really driving is this idea that customer service is no longer a department, it’s a philosophy.”

“It’s a philosophy that has to permeate throughout the organisation. Everybody in the company has a role in support. It’s not just about a call centre or a contact centre or even an engagement center which is what these things are called today.”

“I really don’t like the word ‘centre’ because I really fundamentally believe that everbody in that company has to interact with customers, has to engage and has to the information – no matter they are – about that customer to provide context.”

Abolishing the service visit

With the Internet of Things, Bard sees GE’s social media connected jet engine as illustrating the future of customer service where smart machines improve customer service.

“They’re going to capture more data in one year than in their entire 96 year history prior,” says Bard. “With that data they’ll be able to analyse and do things on behalf of that product or service that’ll reduce the number of issues.”

“Because the best service of all is one that doesn’t have to happen.”

In this respect, Bard is endorsing the views of his college Peter Coffee who told Decoding the New Economy last year that the internet of machines may well abolish the service visit.

“Connecting devices is an extraordinary thing,” says Coffee. “It takes things that we used to think we understood and turns them inside out.”

“If you are working with connected products you can identify behaviours across the entire population of those products long before they become gross enough to bother the customer.”

For Alex Bard, the customer service evolution has followed his own entrepreneurial career having evolved from being personal computer based in the 1990s to today’s industry that relies on cloud computing, big data and social media technologies.

As these technologies roll out across industry, businesses who adopt the customer service philosophy Bard describes are much more likely to adapt to the disruptions we’re seeing across the economy. Changing corporate cultures is one of the great tasks ahead for modern executives.

Kickstarting the smarthome revolution

The latest Decoding the New Economy video interviews Daniel Friedman of Sydney startup Ninja Blocks.

The latest Decoding the New Economy clip is up with an interview with Daniel Friedman of Sydney startup Ninja Blocks.

Ninja Blocks focuses on controlling smarthomes with basic “if, then” rules where house holders can set basic instructions like “if the garage door opens after 5pm then turn on the kettle.”

It’s an interesting interview that covers Ninja Blocks’ vision along with the challenges of selling electronic devices globally and how to run a successful Kickstarter campaign for a hardware startup.

Microsoft struggles with in car technologies

Microsoft Windows faces further challenges as it loses market share and revenue in the automotive market

As Microsoft prepare for a major launch at this week’s Mobile World Congress, the news isn’t good for the company’s flagship Windows operating system.

Two Bloomberg reports illustrate the problems; the major story is the company is planning to drop licensing fees for Windows 8.1 while the other, still serious, news is that Ford will be dropping Windows as its in-car operating systems.

Automotive systems are one of the key markets for Microsoft as the company tries to move into markets beyond the stagnating personal computer sector and should the reports be true that Ford is looking at moving to the rival Blackberry owned QNX system then Windows Embedded has taken an embarrassing blow in a key market.

More serious though is Bloomberg’s report that Microsoft plans to cut its licensing fees for Windows installed on cheaper devices.

While not unexpected, this will damage the company’s earnings given the Windows division made up 22% of Microsoft’s earnings last year.

It’s clear that the free Android system is beginning to hurt Microsoft both in the smartphone and personal computer markets.

For Microsoft’s new CEO Satya Nadella, dealing with Windows’ place in the new Microsoft is going to be one of his most pressing challenges and will almost certainly define his first year in the role.

As the Internet of Things and Machine to Machine markets grow, Microsoft is going to have quickly decide if the company wants to compete in the market.

Could the Internet of Things grow by fifty times?

Cisco Systems’ Visual Networking Index forecasts M2M data traffic will grow fifty fold in the next four years.

One of the annual events in the tech world is Cisco’s Visual Networking Index, the company’s survey of internet traffic trends.

The numbers, as always, are staggering and this year Cisco are forecasting that global internet traffic will grow by a factor of eleven over the next four years to 190 exabytes – that’s 190,000,000,000,000Mb or the equivalent of 19o billion hard drives.

What’s particularly fascinating about this year’s index Cisco forecast that by 2018 there will be more mobile devices on the planet than people.

Many of those devices will be the sensors and equipment that makes up the Internet of Things (IoT), or Machine to Machine (M2M) technologies and Cisco expects the internet traffic in this area to surge fifty-fold over the next four years.

This is remarkable as most of the M2M devices don’t use much data as the vast majority only need to send out the odd short signal – as opposed to smartphones that download megabytes of information each day.Cisco’s predictions underscore just how pervasive this technology is going to become in the next few years, the challenge for us is to understand how to use and protect the masses of data these systems are going to generate.

The evolution of the Internet of Things

Cooking Hacks shows how the internet of things evolved out of other technologies

One of the notable things about modern technology is that few of the developments are actually new, the Internet of Things is a good example of this.

Most of the tech we talk about is a collection of existing technologies that have been cobbled together — cloud computing, 3D printing and the Internet of things are all good examples of this.

Libelium’s Cooking Hacks community page has a good infographic on how the makers’ movement, crowd funding and miniaturization have driven the development of the Internet of Things, 3D printing and wearable technologies.

The diagram, shown at the bottom of the post, is a good illustration of how technologies are evolving and the businesses that are being spawned from the developments.

Cooking Hack’s infographic show why it’s an exciting time to be in business.

Network neutrality and the internet of things

Yesterday’s US Supreme Court decision ruling against network neutrality is a mixed bag for the Internet of Things industry.

Yesterday’s US Supreme Court decision ruling against the Federal Communication Commission’s regulations on network neutrality is a mixed bag for the Internet of Things industry.

Network neutrality is the principle that all internet traffic is treated the same, regardless of its nature or destination.

The FCC rules meant US based Internet Service Providers weren’t allowed to discriminate between different types of services, for instance blocking Netflicks or allowing faster downloads from Amazon.

In the United States network neutrality has been a bone of contention between consumer groups, government regulators and ISPs for over a decade, although it hasn’t been much of an issue outside North America.

For Machine to Machine (M2M) or Internet of Things (IoT) vendors and services there is some attraction in Telcos being able to offer prioritised traffic for mission critical systems.

In applications like supply chain management and public safety, reliability of the connection is essential and something the ‘best effort’ services offered by ISPs are not well suited to.

When networks are overcapacity, say at sporting events or during disasters, being able to shed non critical traffic may be important for emergency services and the devices they may depend upon.

So for IoT and M2M services, network neutrality is not necessarily a good thing.

However there is a downside should network neutrality be overturned, the risk of vendor lock in is high and it’s quite possible to see as situation where, for instance, AT&T enter into an agreement with Google to provide the public network capabilities for Nest home automation devices.

This could see Nest customers suffering a substandard service if they choose another provider.

Internationally the attitude towards network neutrality has been that competition will sort things out, however the IT and telco industries do have a habit of trying to enforce their own monopolies on customers – something we’re currently seeing in the Apple-Google battles over smartphones and connected vehicles.

So it isn’t clear whether network neutrality isn’t a good thing for the M2M sector, however it’s something that’s going to play out as these technologies become more ubiquitous across the economy.

Who pays for the internet of things?

Our assumptions about where the money will be made from the internet of things may turn out not be so.

“If there’s one number I’d like you to remember, it’s 19 trillion.” Cisco CEO John Chambers told the 2014 International CES during his keynote speech earlier this week.

Chambers was referring to the economic value of the Internet of Things or machine to machine technologies as they get rolled out across society, but who pays for the connectivity?

In the case of the smart home, office, factory or farm the data costs go onto the existing internet bill, but once you get out of the office or on the road then the bills start mounting up as systems start connecting to a cellular or satellite network.

Certainly the telcos see the opportunity with Ovum Research predicting telco’s M2M revenues will grow to reach US$44.8bn over the next five years.

While for logistics companies and similar businesses this will be just another cost of doing business, for many consumers being stuck with an expensive mobile data plan with their smart car might not be attractive.

As car manufacturers start to push their vehicles as being more like smartphones, suddenly the choice of network provider, compatibility with apps and operating systems starts to become a valid concern.

In that world, choosing a car on the basis of which telco it connects to is a sensible idea.

Of course it may be that consumers may not own cars by the end of the decade. The vision of companies like Zip Car and Uber is that we just call for a towncar or pick up a share car when we need one.

Certainly that vision makes sense from an economic perspective and the trends right now show that millennials are nowhere near as interested in cars as their parents and grandparents were.

As with every technological change, it’s not always obvious in the early days how things will pan out. In 1977 the founder of Digital Equipment Corporation Ken Olsen said, “there is no reason anyone would want a computer in their home.” Within 15 years he was proved very wrong.

The motor car drove western society during the Twentieth Century and to assume we’ll continue to use it the same way in the 21st is as flawed as believing a hundred years ago that we’d continue to use horse carriages the same way as previously.

So the assumptions about where money is to be made with the Internet of Things may turn out to surprise us all.

Launching Networked Globe

Network Globe aims to be one of the main sources for information on the Internet of Things

Out of the last six months of travelling, a new project has been born. Networked Globe is intended as a clearing house for news and opinion on the Internet of Things, Machine to Machine and all the technologies that surround these industries.

The intention is to have a daily update on industry news along with two or three feature pieces a week to start with. If gets legs, and an income, then we’ll be looking at extending the coverage.

Finding things to cover certainly won’t be a problem, equipment vendors and telecommunications companies are pouring into the space and security issues are already becoming a major concern, as this story on the vulnerabilities of home automation illustrate.

Hopefully this blog won’t be neglected as the focus shifts to Networked Globe, although there’ll probably be more posts about the usual rollercoaster ride about setting up a business.

Connecting the vending machine

Vending machines are leading the way in adoption of the internet of machines

Wired Magazine’s Klint Finlay speculates why Coca-Cole would want sixteen million MAC address for their vending machines.

That Coca-Cola has connected all their vending machines shouldn’t come as a surprise, probably the only thing moderately unusual from this story is that the soft drink company organises its own hardware rather than getting the machine manufacturers to do it.

Vending machines being connected isn’t new, back in the days of dial up modems some of the more advanced one would use phone lines for basic diagnostics.

Today most vending machines have a cellular connection used for payments, stock monitoring, fault warnings and vandalism detection.

A visit to my local swimming pool today showed this, the Coca-Cola branded machine machine outside the change rooms offers credit payments and in the not too distant future will probably include some sort of NFC type option.

On top of the the machine is a little aerial for the back to base communications. So the device can validate and bill cards, report back when stock levels are low and alert operators to anything untowards happening.

A big opportunity for the soft drink companies and their distributors is analysing the information about buying patterns at various locations — it’s a classic Big Data play.

So it’s not surprising Coca-Cola has registered a block of MAC addresses as the company will probably need several more 16 million blocks in the not too distant future as more of their operations from bottling plants to vending machines require unique connections.

Vending machines are a small but obvious example of how the internet of things is evolving, in the near future most consumer devices will have similar options.

Smart homes come of age

Smart devices are going to change our homes as much as our offices.

For years we’ve been predicting the arrival of the smart home, this week the Chicago Tribune reports that the connected household may be becoming a reality.

The Chicago Tribune describes Raffi Kajberounihi’s Santa Clarita home where his doors and his home automation systems are all controlled by his smartphone.

Most of the technology in Raffi’s house isn’t new, it was just unaffordable for most people until recently.

“It had always been an upscale-type business: Unless you were in the top 5% of income levels, you didn’t have access to this type of connectivity,” said Randy Light, merchant of home automation for Home Depot.

Wireless Internet and the widespread proliferation of smartphones are making smart home technologies more sophisticated — and affordable.

“This used to be something out of ‘The Jetsons’ or limited to the super-rich,” said Jonathan Dorsheimer, an analyst at Canaccord Genuity. But as smart home technology has improved and costs have come down, “it’s becoming more mainstream.”

While much of the focus on the smart home has been around the consumer applications, much of the real potential lies in the machine to machine possibilities.

The Nest smoke detector is a good example of how smart devices are evolving, it doubles as a nightlight and is intelligent enough to spot the difference between burning toast at 7am and a smoldering electric blanket at 11pm.

The next wave of air conditioners could be checking the weather forecast and adjusting settings before a cold change hits, similarly a smart alarm clock may well check transit and traffic information to adjust wake up times when the trip into work is unusually congested.

For all the benefits though there are risks; as we saw with the Foscam baby monitor, security remains a real concern that isn’t as built into devices as it should be.

Over time, we’ll find these smart technologies are changing our households. With that will come advantages and risks that we’ll have to manage.

Britain’s smart cities agenda

Can Britain’s national innovation strategy give the UK leadership in the smart city movement?

Yesterday the UK government held its first Smart Cities Forum on what it sees are the economic opportunities for the British economy and its cities.

The Smart Cities Forum is part of the British government’s innovation policy that’s seen £50 million allocated to smart city projects including £24 million for Glasgow’s Future City showcase.

While the British government sees this as being an investment in grabbing the nation a share of what they believe to be a £400 billion global market, it’s also an opportunity to rejuvenate the county’s cities, as this video clip explaining what being a smart city has to offer Birmingham.

Like Barcelona and San Francisco tech and smart city policies, the UK initiative was born out of the 2008 Global Financial Crisis which forced the British political and business establishment to rethink the nation’s economic position and policies.

A key part of that rethink is how infrastructure spending can be co-ordinated with new technologies and this is something Barcelona is doing with its own smart city project in rolling out fiber networks as part of scheduled maintenance around the town.

The Glasgow pilot project is probably one of the more ambitious smart city projects, as the UK’s Technology Strategy Board says in its media release;

The Glasgow Future Cities Demonstrator aims to address some of the city’s most pressing energy and health needs. For example, developing systems to help tackle fuel poverty and to look at long-standing health issues such as low life expectancy.

Glasgow’s objectives go beyond the usual open data and parking spot strategies and attacking low life expectancy and poverty are strong social challenges.

With buy-in from the national government, the UK is making a strong big to lead the smart city industries. The challenge now is for British businesses to step up and find the commercial opportunities.

Balkanising the internet

Breaking up the internet into different standards would be a backward step, but it might happen.

Could the current internet spying scandals result in the internet become fragmented into different national empires?

Over dinner with President Obama with fourteen other tech industry leaders, Yahoo!’s CEO Marissa Mayer warned that US spying threatens to ‘Balkanize the Internet’, Bloomberg reports.

Mayer has reasons to be worried, the scale of the US National Security Agency’s multiple programs monitoring internet traffic around the world has surprised even the most hard bitten commentator and it is already affecting US technology sales to China.

Coupled with revelations that Britain’s GCHQ was tapping the subsea cables themselves in concert with US agencies almost every national government is now pondering the fact that, as an invention of the US military, the internet itself is open to being misused by its creators.

The Internet’s critical economic role

As online communications become more critical to nation’s economies and security it’s understandable that governments would be considering how to make their networks more hardened to interception or interference and creating whole new protocols outside current standards is one way of doing that.

With the industrial sector increasingly being connected through the internet of machines the stakes suddenly become much higher, as the Iranian government discovered with the Stuxnet worm that crippled the country’s nuclear research program.

After Stuxnet every country and business with critical systems exposed to the internet is now working on hardening those systems from similar attacks.

Until recently, almost all the profits from the internet’s growth have gone to US technology companies so its not a surprise that Facebook chief Sheryl Sandberg and Google chairman Eric Schmidt were with Mayer when she expressed her concerns to President Obama.

Balkanising the web

A balkanisation of the internet along national lines and industrial sectors is bad for US business which already struggles to get traction in non-Western markets like China and India.

The irony is though that Yahoo!, Google and Facebook are all trying to balkanize the internet themselves in locking users into their own networks.

While that’s a concern for internet users, it appears those commercial walled gardens don’t seem to be working.

The failure of commercial walled gardens

Yahoo!’s attempt to monopolise their corner of the web has clearly failed and it’s appearing that Google’s attempts to take over social media are failing despite forcing YouTube users onto Google+ while Facebook is beginning to buckle under the sheer weight of its own News Feed.

Common wisdom about internet markets is that you have to be the number one provider in your niche to succeed, what we may well be seeing is those niches are smaller than we thought and leadership in one sector doesn’t automatically guarantee success in another.

As Deloitte’s Eric Openshaw told this blog last week, ““one way or another, these things can be problematic in the short run but typically over time they are resolved.”

Tesla, Edison and Jonathan Swift

One of the reasons for the internet being one of the most successful technologies is that it was standardised relatively early, it didn’t have the battles over industry standards like the AC versus DC electricity arguments between Edison and Tesla, or the insanity of different railway gauges plaguing countries and international trade.

Jonathan Swift parodied these technological arguments in Gulliver’s Travels where the main point of contention between the warring empires of Lilliput and Blefuscu was over which end boiled eggs should be cracked.

It would be a great economic loss if security concerns or commercial opportunities saw the internet follow those examples and saw the online world carved up into many little empires.

Should it happen, we deserve a future Jonathan Swift to parody us mercilessly.

Walls of Constantinople by Bigdaddy1204 through Wikimedia