The ability to connect, communicate with and remotely manage an incalculable number of networked, automated devices via the Internet is becoming pervasive, from the factory floor to the hospital operating room to the residential basement. No technology has shown stronger possibility to change the nature of business.
In order to understand why IoT should be on the radar of every CIO, I have outlined a few scenarios I have envisioned within Financial Services.
- Life Insurance: The ability to leverage wearable devices can provide immense value in the recovery of policyholders that suffer from short-term disability or even in need of long-term care. Monitoring could include the basics such as heart rate, blood pressure and body temperature but also extend to areas such as measuring range of motion or even reaction times.
- Property and Casualty Insurance: The media has taken negatively to the usage of drones especially by our Government. However, there are a few scenarios that could benefit insurers in terms of exploration ranging from leveraging Internet connected drones to investigate claims for crop insurance to large commercial property inspection as part of their loss control discipline.
- Banking: There are very few consumers left that have yet to have their identity and/or credit card information stolen. Imagine if the ability to make a payment in a retail location were no longer driven by a credit card but rather a wearable device that would only transmit payment information based on specified vital signs.
- Capital Markets: For those who have ever worked on a trading floor know the juggling act that traders face. Throughout the day, traders are tracking data and fielding calls, while focused on turning their split-second decisions into positive financial results. Traders need to collaborate with market analysts, clients, back office and front office staff to complete a deal accurately, quickly and profitably. This could be better enabled by using custom wearables that enable collaboration that is directional in nature. The wearable device could correlate the direction the trader is looking to route communications instead of more traditional means.
Regardless of the particular industry vertical, The Internet of Things will sooner or later be a requirement of the IT ecosystem and therefore it is prudent for CIOs to ensure they are prepared to handle not only in terms of operation but also in strategy. It goes without saying that IoT will also expose weaknesses in terms of security but also opportunities in terms of Big Data.
I have amassed over 100 different use-cases for Internet of Things and would have delight in sharing a few of them with interested CIOs.