It is the opinion of almost everyone that the future is going to be digital. But what exactly does that mean?
Well, it can mean a lot of things. The emergence of the interconnected world will have long-term consequences that sociologists and historians will be cataloguing and debating for decades. Yet, the more immediate concern is what the digital world means for business. In many ways it probably means a less-competitive business environment in certain sectors as big banks and digital companies will find it easier to consolidate. However, in other sectors I believe that digital connectivity is going to level the playing field like never before, which will be good for consumers and bad for some business owners.
A good example to use to explore this theory is the purchase of gasoline. We all need it, unless of course we have the spare change to drop on a Tesla. Gas stations know this and many station owners take advantage of it. You may notice that if crude oil goes up in price by a few cents, gas at the pump will immediately shoot up. If the price of oil falls, like it has lately, gas at the pump will slowly and grudgingly decline in price. Gouging customers is often a poor business decision as it makes them resentful and unwilling to avail themselves of an establishment in the future. Gas stations used to be able to get away with it, however, because they are selling a necessary commodity that most consumers buy without much planning or foresight – other than the low fuel light is on, I need to go fill up.
Generation wireless will help grow the IoT
The digital world has and will continue to change that. Personally, I use Gas Buddy, a website that shows the cheapest gas in your area. Although a little cumbersome for my area – I live where the jurisdictions of Virginia, Washington, D.C., and Maryland overlap – Gas Buddy is able to give me an idea of the lowest market price for gas in my general vicinity. Being able to access such information easily can greatly shift the dynamic of how gas stations market their product. Rather than setting a price that is competitive with the two stations across the street, they now have to worry about the station two blocks over since consumers are now able to check all the surrounding stations’ prices when the low fuel light comes on.
With the growth of the “Internet of Things,” I estimate it won’t be long before your car has a downloadable app synched to GPS that will direct you to the cheapest gas with the push of button or voice activation. Station franchise owners be wary – you may soon have to adjust your business model to compensate for a far more competitive marketplace.
Gas stations are not the only businesses that will be affected by this greater digitization. If your car can navigate to cheap gas, then why not a food truck, or restaurant with modest prices and high reviews? Why can’t it check a store’s online inventory to make sure the product you need is in stock before you get there? Why can’t your car be synched directly to your Amazon.com account allowing you to order something on your commute home from work? Before too long, it will. The digital world is here to stay. Let’s just learn to live in it.
Jeff Hawn was born in 1991 and represents the “millennial generation,” the people who have spent their entire lives wired and wireless. His adult life has revolved around cellphones, the Internet, video chat and Google. Hawn has a degree in international relations from American University, and has lived and traveled extensively throughout Europe and Russia. He represents the most valuable, but most discerning, market for wireless companies: the people who have never lived without their products, but are fickle and flighty in their loyalty to one company or product. He’ll be sharing his views – and to a certain extent the views of his generation – with RCR Wireless News readers, hoping to bridge the generational divide and let the decision makers know what’s on the mind of this demographic.
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