The race to create and own “connected spaces” in the digital economy
With the rapid ubiquity of mobile, Wi-Fi, RFID/NFC and other network coverage now invading many living and working “spaces”; there is a digital land grab going on by many incumbent and new players in the market.
Between 30 and 80% of personal information and usage data at “touchpoints” everyday living spaces and work environments are wasted or lost due to lack on good quality Sensor instrumentation or inefficient customer experience journey management.
This is not just the preserve of telecoms but adjacent cloud providers and other sector organisations that are building strategies to “own the spaces” , either the smart home, smart transport, smart retail, smart government, health, finance and so on.
Technology investment and physical dominance is less of a protection to an increasing service based information economy. There is wide recognition that developing technical “funnel” innovations and product-service catalogues is giving way for a need to dominate the context and spaces customers and partners are increasingly expecting mobile and other digital service providers to offer.
Economically we see typically a 20-30% growth rate, impacting revenue growth in 2nd level and 3rd level cross sell and upsell associated to contextual spaces. Primarily driven by a 40-90% shift in customer behaviour to mobile services in those spaces. One such client stated for example: “a digital Omni-channel customer spends and is worth 4 times as much a single channel customer”.
The research we have carried out called “Digital Spaces” looks at this phenomena in several industries in redefining how customer journeys and value chains work in a connected environment that more realistically represents complex organizational ecosystems of connected spaces.