The internet of things: good for 50 to 100 billion connected devices in 2020. Is that realistic? And what is the impact of the internet of things on customer service? Ziptone spoke with Erik Peeters, managing director Internet of Things at KPN.

To immediately confirm the hype: “The internet of things (IoT) certainly has the potential to consist of billions of connected devices in a few years,” states Erik Peters. “The promise of IoT is huge. But companies still have some barriers to overcome. The technology is becoming cheaper and therefore the business cases in the field of IoT are becoming increasingly feasible. Realizing a proof of concept – the preliminary phase of innovations – is also becoming easier. Many companies are actively developing and testing new sensors and applications. However, rolling it out on a large scale is still a big step, because that is where the most money is involved.”
A good example of this is the 'connected' lamppost. It has been around for a few years, but replacing all lampposts requires a budget of many hundreds of millions of euros in total. Because according to an estimate of TV program The Court we have about 3,5 million lampposts in our country.

Internet of things applications are becoming visible

What are the best examples of practical and successful IoT applications right now? “The EU has established that by 2020, 80 percent of European households must be equipped with a smart meter. These are now being rolled out on a large scale in our country and a few million have already been installed. These meters have their own connectivity using a SIM card. The energy company does not want to be dependent on the customer's internet connection.” In addition to smart meters, there are also connected thermostats such as the Nest and more are now being added Central heating boilers on the market that can collaborate with thermostats and apps via the web – useful for both consumers and installation companies.

More SIM cards in devices than in mobile devices

Other sectors are also vigorously experimenting with connecting objects to the internet. For example, Ahold wants to reduce the number of shopping carts that 'disappear' – good for a loss of thousands of euros per store – by equipping them with a sensor that communicates the location. And airlines are introducing connected suitcases, so that tracking & tracing becomes possible. The automotive sector also plays an emphatic role in the IoT: European legislation requires new cars to be equipped with E-call, a connected safety system.

In addition, more and more car brands are equipping new types with connectivity as standard. In addition, car insurers are experimenting with monitoring driving behavior via a dongle in the car – in exchange for a discount on the premium, provided that the behavior of the insured warrants it. “In total, there are now more SIM cards in devices in our country than in smartphones and tablets,” says Peeters.

Creating added value for the customer

The Internet of Things is not only interesting for controlling objects and making them smart, the IoT is also a huge source of data. “For organizations that start working with the IoT, providing a good explanation to their customers is extremely important. What is the benefit for the citizen or end user? With a car insurance, this can be a premium discount. With Tesla you always have the latest software, plus streaming video in your car. Naturally, the supplier also benefits from the data. This provides knowledge about the device, about its use and about the user.

These new insights can also form the basis for new business models. Think of the connected toothbrush or medical equipment from Philips, which could be of interest to toothpaste manufacturers or health insurers. If you know more about your customer, you can increase customer intimacy. This information is also very applicable in a customer service environment. There are also opportunities for facility contact centers. For example: we not only interact with your customers, but also with your customers' devices.”

Preparing for the advent of IoT

With the emergence of the IoT, the necessary changes are also going to take place technology side of customer contact. In the first place, it will increasingly not be the customer, but a device that itself seeks 'contact' with customer service. Customers do not have to take any action themselves (and therefore no longer end up in a queue), but will more often be proactively approached by customer service itself.

“In certain situations, the data stream from connected devices will also have to be available to the contact center employee,” says Peeters. “That means contact centers have to adapt their IT systems because a new information flow is added, apart from education and training of employees. The work of contact centers will only become more complex.” In other words, the need for analytical competencies among contact center personnel will become stronger. For example, to be able to provide proactive advice based on real-time data. In addition, it is not inconceivable that outbound traffic will increase, because the contact center will increasingly play a monitoring or signaling role towards the customer.

More data in contact center: time for the cloud

“The data from the IoT almost always ends up in the cloud – think of environments such as Amazon Web Services, Microsoft Azure or IBM Bluemix. Contact centers will then have a must have a link with such a cloud platform or even better, have to work with cloud-based solutions yourself. Ultimately, the recipient will have to turn that data into useful information. Most facility contact centers will still have to make that leap and there companies still need to acquire the necessary knowledge – think of data scientists –.”

Applications of the IoT will have to meet a need, otherwise they have little chance of success, says Peeters. “The Senseo was a brilliant invention: how to easily make one cup of coffee. When Senseo also introduced pads for tea, they overlooked the fact that it was already very easy to make one cup of tea.”
For successful applications of the Internet of Things, the benefits for consumers must therefore be clear. But the question of whether we will reach those 50 to 100 billion devices in 2020 is quickly answered as far as Peeters is concerned: “Yes, definitely. It will be step by step, but I am not worried about 2020.”

Text: Erik Bouwer

Customer Experience, Technology Content Guru, KPN