Infosys’ Global Digital Head says Internet of Things will expand the definition of digital transformation

Much in the same way we look back and wonder what we ever did without the Internet, we will look back on this time and wonder how we ever lived without connected devices and connected “things.” Because we won’t just be connected to our thermostats. We’ll be connected to nearly everything in our household, business and world. Everything will be connected to everything. And every “thing” will be connected to every “thing.”

• Autonomous cars that learn “best practices” from one another, machine-to-machine, to handle intricate driving scenarios (Tesla Autopilot)
• Connected appliances that lets you know when food has spoiled and inventory that need to be replenished (LG smart refrigerator)
• Adhesive sensors that record biometric data (heart rate, hydration, muscle activity) and monitor ultraviolent radiation levels (MC10 + L’Oréal’s My UV Patch)
• Smart cities where stoplights adjust to actual traffic patterns and parking spots can be found via real-time data notifications (Atlanta + AT&T)
• Digital contact lenses that revolutionize diabetes management by measuring blood glucose levels from tears (Google/Alphabet/Verily + Novartis/Alcon).

Already we’re not far from being able to automatically check-in when we enter an airport, track the location of our luggage in real-time, verify that it’s on the plane, receive an alert when our bags have reached the conveyer belt, and automatically update airport shuttle pickup by drivers tracking arrival times.

Welcome to the Internet of Things (IoT).

With more and more “things” becoming “smart,” Gartner is forecasting that there will be over 20.8 billion connected “things” by 2020, linking the physical world to the digital world. (In 2016 alone, 5.5 million new “things” are getting connected each day.) The IoT, coupled with consumer demand, is the primary driver of digital transformation today. What it will yield is an avalanche of data, the likes of which we have never seen. The question is, are you ready for it?

What does IoT mean for consumers and brands?

Companies that are already leveraging the IoT include Honeywell (integrating digital technologies into manufacturing, shifting emphasis from machinery to information), Comcast (focusing on connected home security and automation devices), Philips, and Qualcomm (combining health informatics, cloud data management, medical-grade device connectivity to create a scalable care ecosystem), among others. The opportunities to drive efficiency, effectiveness, revenue and cost savings are enormous. For perspective, General Electric CEO Jeffrey Immelt has said that GE estimates that just a 1% increase in gas turbine fuel efficiency (for freight-rail haulers, jet engines) could yield nearly $3 billion in savings annually.

For the consumer, the Internet of Things promises a future that meets and exceeds their new digital expectations. With the power of digital analytics, automation, and machine learning, the consumer is increasingly expecting real-time responsiveness as well as the anticipation of their needs: from knowing when a doctor’s appointment is needed or the immediate processing of an insurance claim, to creating more efficient cities and leaner, responsive enterprises.

No matter what your industry, from automotive and healthcare, to energy and financial services there will be an IoT application for you.

Implications for the future

More than half of major new business processes and systems will incorporate some aspect of the Internet of Things (IoT) by 2020, according to Gartner; the lion share of which will be dedicated to improving customer experiences.

IoT’s impact on consumers’ lives and businesses is rapidly increasing as the cost of implementing physical things with sensors, as well as connecting them to other digital devices, infrastructure and people, continues to fall. Artificial intelligence, automation, machine learning, and even Big(ger) Data will help to enhance and improve our ability to not only conduct business, but answer ever-increasing consumer demand for seamless transactions, real-time solutions, speed-to-market, transparency, authenticity and security.

With the massive increase in connected devices, and the avalanche of data they increasingly generate, businesses and consumers will need to reevaluate how to organize, process, and understand an exponential amount of information.

Bottom line: While the “Internet of Things” may sound at times like the latest buzzword, it’s not new. We’ve been adding diagnostic, sensing, and communications capabilities to business critical “things” for over a decade.

The new news is the rapidly accelerating pace of innovation and the expectations that have increased around it. The Internet of Things has become a priority due to its promise of increased efficiencies, new revenue streams, operating cost savings, and increased customer satisfaction.

In the same way that the Internet evolved from a nascent, obscure technology to the primary vehicle for global information exchange, and once exclusive smart phones have become ubiquitous around the world, IoT will likely transform into something we have yet to imagine, which will greatly impact business, consumers, and the very way we live our lives.

(This article is authored by Scott Sorokin, ‎Global Head of Digital, Infosys)