NOTE: First published in the Jan. 9 edition of the Daily Herald Business Ledger
As we begin the new year, you can expect technology to make further changes in the way your business and your customers interact, according to experts.
But a local expert says you need not fear the coming evolution because you are already a technology expert, though you may not know it.
“Most of you have become digital technologists, but you just haven’t realized it,” said Steve Bell, president of KeySo Global LLC in Long Grove. “But if you look over the past 30 years, you can see just how your life has changed inordinately.”
Bell, whose global consulting company tracks technology trends, says people tend to look at themselves as novices when new technology changes the way things are done. But when they step back and look at how they’ve adapted to technology over the decades, they can be more confident in taking advantage of the new developments that will affect their business and lives in the future.
Bell points to four developments in the 1980s that have significantly changed the way people live and work today: The creation of the PC computer and cellphone; the establishment of a global Internet, and the creation of the Sony Walkman. While the first three may be self-explanatory, Bell notes the Walkman opened the doors to the ability to carry “personal music” anywhere at anytime.
As the 1980s brought the introduction of these new technologies, the 1990s brought their integration into society, he said. For example, GSM cellphone technology (which Bell worked on when he was employed with Motorola), the development of the World Wide Web and Internet browsers, and the creation of TiVo with its ability to time-shift entertainment brought technology into the mainstream. Add to that the development of the iPod and iPhone and rise of social networking in the 2000s, and Bell said it easy to see just how well people have adapted to change.
“We help people recognize that they are much more technology savvy than they realize,” Bell said. “But it’s like the frog in a pot. You don’t know you’re being cooked until somebody shows you the water is much hotter than it used to be, so you have the opportunity to either jump out or continue to get cooked.
“We find once people look at it that way, they say ‘oh yeah, I never thought about it like that,’” he added.
Having that confidence to handle change will be even more important this year, as Bell believes 2012 will be a pivotal year in the integration of mobile technology into the business world.
“2010 brought everything together,” he said. “In device evolution, it’s the development of the tablets and cloud computing. The user experience is becoming more of a differentiator as touch screens are making things become more relevant. And social media is leveraging all these trends.”
As a result, he said. smartphone use and the growth of 4G LTE cellphone technology has already changed how consumers live, work, and shop — and that will change how businesses cater to their customers in the coming year.
“The confluence of LTE and smartphone devices is compelling because it gives an opportunity for the ecosystem that builds around them to not only grow and stimulate in relation to the U.S. economy, but potentially global as well,” he said. “But a more interesting element is that mobile devices, mobility and the power of the networks is fundamentally changing the business models for most companies and industries.”
We are already seeing this in the retail industry as more consumers are using smartphones to comparison shop — both online and in brick-and-mortar businesses (Bell estimates that 50 to 60 percent of all shoppers are already doing this). While in one store, they can use their phones to compare product prices among stores, and if they find a better deal, they can also check availability at that store before they leave one business for another.
But as digital wallets, smart cards and loyalty programs become more prevalent, businesses now have the opportunity to compile information on their customers, track their buying habits and even know what parts of their store they are frequenting. In turn, the business can develop and instantly push offers and opportunities tailored to keep customers in the store. Bell said having this technology gives the business the advantage to keep a customer from leaving the store if they find a better price elsewhere.
“On the one hand people are saying ‘can I get this somewhere else,’” he said. “But you can turn that around. You can push them a coupon (to their smartphone) that says ‘if you stay in the store and buy two items in the next half-hour, you can get a 25 percent discount on both items.’ It could easily match what they were going to get if they went elsewhere, but the positive thing is now they’re going to buy two items where before they would have bought none.”
While this is now being used by many national chains, Bell foresees the growth in 2012 of businesses that will help small to mid-sized retailers utilize the technology. He points to one company, Chicago-based Belly, as an example of firms helping small businesses develop customer loyalty programs that can compete with bigger players like Starbucks.
The key for the small business owner, Bell stresses, is to recognize what technology is doing, do some research, and take advantage of the opportunities that the changes will create.
“If you open your eyes and look at the technology that is around, if you use the Internet a little bit to explore, there is a plethora of opportunities to be very active and very flexible by utilizing some of the technologies to enhance your business, as well as enhance the experience of both the people who work in your company and the experience you can deliver to your customers,” Bell said.
For more information, go to www.keysoglobal.com.