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If you have seen the Netflix documentary ‘The Social Dilemma’, you might be familiar with the concept of IoB, which regards using and analyzing data that is collected about individuals to predict and influence their behavior. The first things that may come to mind when thinking about IoB, are social media companies such as Facebook. However, IoB has many different applications and is relevant for nearly all industries. In this article, I will discuss the context, possibilities, and limitations of IoB.

Context

With the ever-increasing computing power of computers and technological developments, business information and data are becoming more and more relevant. In the future, data will be collected even more efficiently, as more and more products are being digitally linked through the internet of things (IoT). Furthermore, advancements in AI and machine learning improve the accuracy of predictive models and simulations. Therefore, businesses and organizations that have a lot of data are increasingly able to more accurately monitor individual stakeholders and make predictions regarding their behavior.

Opportunities

As the technology behind IoB is improving, the amount of opportunities it brings is not slowing down. Not only can IoB be used for businesses to better understand customers and increase sales and customer experiences, but it can also be used for organizations such as hospitals to better monitor individuals and understand their behavior. Action can then be taken to provide individuals with the optimal experience and improve customer relationships. Moreover, the physical and mental health of individuals within a society can be monitored and predicted to try to maintain high well-being. Furthermore, new products and services can be created by businesses, organizations, and governments based on the predicted demands of individuals. Accordingly, IoB is not just a concept that focuses on increasing sales, but it could also have great opportunities for society as a whole.

Limitations

However, there are certain limitations regarding IoB. The most prominent one is that of privacy, which limits organizations in their collection and usage of customer data. In some cases, privacy will hinder organizations to collect the data they need to pursue certain value creation activities with high potential. Another limitation is the quality of the collected data. While many organizations collect large amounts of data, the quality of the data is often hard to verify, which could seriously impact the accuracy of the predictions and models for the behavior of individuals. Moreover, one of the most important limitations is ethics. Even though data collection and analysis can create a lot of value, unsolicited data collection and analysis can be unethical. Before collecting and analyzing every data point we can find, we should think about the impact it can have on an individual and if our actions are morally acceptable. Finally, responsibility is arguably the most important limitation. Customers do not know what happens with their data and who is responsible for it. As data brokers are becoming more prominent and the sizes of most major companies do not seem to slow down, the responsibility for the handling of data is often unclear, especially for individuals outside the organizations.

References
Kidd, C. (2019). What Is the Internet of Behaviors? IoB Explained. Retrieved from https://www.bmc.com/blogs/iob-internet-of-behavior/ (Accessed 9 October 2021)
Mishra, U. (2021). Introduction to Internet of Behaviour (IoB). Retrieved from https://www.analyticssteps.com/blogs/introduction-internet-behaviour-iob (Accessed 9 October 2021)

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When we think of the concept of shopping, we often think of going to a brick & mortar store and buying physical goods. However, this could be about to change as customer demands change and new opportunities arise due to the technological advancements of the past decades.

In the past, customers did not have the opportunity to order just about anything they want online, for a cheaper price and sometimes faster availability. However, due to the ever-improving efficiency of supply chains made possible by technological advancements, this became a reality. Physical stores have not (yet) fully adapted to this new reality, and one way to evolve the way brick & mortar stores work is by transforming them into digital showrooms. A digital showroom consists of a physical store location where customers can see the products a company has to offer in a virtual form. This could be used for a clothing brand to show virtual samples of their clothing, or for a car showroom to show cars that are currently not physically available.

This concept is not just interesting for a tech-savvy or business student, but also has a lot of practical upsides. Think of lower inventory costs, a reduction in the number of employees needed, and increased speed to market for new products. Moreover, due to the increased potential for data collection, digital monitoring and analysis can be used for data-driven planning, optimization and efficiency. Not to mention the fact that customers could have a better shopping experience as they will have an easier time finding products they like and ordering them through self-service.

One of the brands that recently adopted the digital showroom concept, is Tommy Hilfiger. “I’m convinced this will revolutionize the fashion industry”, chief executive officer Daniel Grieder said. “We believe this technology will play a big role in the store of the future. I don’t think brick-and-mortar stores will die out, but they will definitely change”. Even though the technology needed for digital showrooms has to keep evolving before this kind of store will become mainstream, it shows a lot of potential. Ultimately, it could end up being the solution to the modern problem of failing brick & mortar stores.


References
Damen, A. (2021). What Is a Digital Showroom? 6 Examples & Best Practices to Sell More. Available at https://www.shopify.com/retail/digital-virtual-showroom#5 (Accessed 5 October 2021)

RetailInnovation (2015). Tommy Hilfiger open digital showroom in Amsterdam. Available at http://www.retail-innovation.com/tommy-hilfiger-open-digital-showroom-in-amsterdam (Accessed 5 October 2021)