The Internet of Things catalyzes mutation of economic models
By Philippe GAUTIER on Monday 30 May 2011, 16:46 - Web 3.0 / Internet of Things / Internet des Objets - Permalink
With the upcoming Internet of Things and its associated
“Cyberobjects” – the associations of the physical objects
with software “intelligence” (whether it is embedded in the cloud, in a Web
service, a dedicated server, etc.),those which illustrates the duality
“good/service” of objects - the current CPG
economic model will undoubtedly mutate.
In today's market of mass distribution/retailing, supply (manufacturers) meets the demand (consumers) through advertising and
especially supermarkets.
The rationale behind this model is, now, that of "push" where
products are "pushed" to a mass market. A
“producing entity” is, then, linked with several “consuming entities”
("One-to-Many").
That first entity designs and manufactures (or produces) products/goods with the help of market research companies, and then
diffuse it into the retailing loop to the consumers.
In this model, putting apart advertising, distributors monopolize conditions of
access to consumers and their associated sharing
(shopping areas).
With relevant technologies, able to grant objects with software capabilities of
“self-organization” (individual or collective), the Internet of Things will foster their
emergence as full “objects-actors” in the
processes and value chains, making them real
“economic agents”.
It is therefore a historic opportunity to implement new business models, to stimulate
credit-worthy demand and then transform the consumer products goods market with
new services. Accordingly, Cyberobjets will help to reverse
the existing model, by allowing the shift from “push” to
“pull” logic. In this “pull” logic, the
consumer may, as needed, inter operate (ask, negotiate, compare and buy ...)
with several objects (and thus many manufacturers)… this almost anytime and
anywhere.
This model that we might call "many-to-One" as opposed to the
previous, but more likely a "one-to-one", could jeopardize the
existing supermarket ecosystem.
Actually, neither a manufacturer nor a distributor will be able to handle billion of
“contextual interoperability” with consumers and to address the uniqueness of
the relationships since they are currently organized in a “mass
market” logic… Unless they change as well.
Thus, the “Cyberobjects” (or economic agents) will likely be the easiest ones
to support - at the most subsidiary level - that
“situated” exchange or share.
This “paradigm change” will help to shift
from a “mass distribution” to a “targeted” one. This last one will also help to
develop new models of "conscious and Eco-friendly consumption", leverage sustainable or fair
trade (knowledge of conditions of production, seasonality, carbon balance,
re usability or recycling), allowing the
restoration of the link between the consumer and the producer.
Muriel Lecomte,
Philippe Gautier.