In its most basic form, technology is an instrument or tool. In the business world, technologies are viewed as engines of transformation and disruptors in the marketplace. A new innovation can alter the rules of engagement for the participants with it.
Organizations that embrace emerging eCommerce technologies experience a competitive advantage in terms of market positioning, customer service quality, responsiveness, and revenue growth. Those who ignore these trends do so at their own risk.
Emerging technologies can be classified into two categories:
1) Complementary emerging eCommerce Technologies that are additive to the mix of what a business is already doing or plans on doing in the future.
2) Disruptive emerging eCommerce Technologies that will replace, substitute, or supersede current business models.
The first type of technology creates the possibility for new revenue streams and changes in operations. The latter technologies can be viewed as a death sentence for those competitors who fail to adapt (i.e., Blockbuster).
This article presents an overview of 5 disruptive technologies to look out for that are coming of age in 2022 and are listed here:
The Metaverse (meaning "the world" in Greek) is an immersive virtual reality platform that will provide immersive experiences in both augmented and virtual realities. It is the result of the convergence of real-time communication, social networking, cloud computing, sensor networks, wearable devices, and artificial intelligence technologies (Swan et al., 2015).
Although the metaverse is still in the future, the 3D technologies that are the backbone of the future metaverse are here and are already being leveraged for the future of eCommerce. One of the biggest obstacles to transitioning from a brick and mortar world to digital commerce is that in the digital world you lose the ability to interact with products before purchasing them. 3D technologies help bridge that gap allowing consumers to interact with products in a more engaging manner that reflects the analog reality we live in today.
However, the metaverse does not just exist in shopping. Brands are creating immersive 3D experiences that surprise and delight consumers in new ways. Additionally, with cutting-edge technologies like webGL you can create experiences for 3D, VR and AR.
Vans has recently joined the metaverse with their custom shoe designer on their website. Check out the Vans Customs Designer here for a peak.
Artificial intelligence is just beginning to capture its full potential. While most of the headline grabbers are self-driving cars, it's poised to be just as disruptive for eCommerce. In fact, it already has. If you run digital ads, the platform you are running ads on is using AI to target the consumers with who are most likely to perform an action (such as making a purchase on your site). If you have product recommendation widgets on your site, they are using AI to make the best personalized recommendations.
Here are few emerging trends you may not be leveraging yet:
With huge advances in Natural Language Processing (NLP) over the last few years, AI can now effectively augment (or take over entirely) much of the interactions you have with consumers. The AI program, Jasper, generates word content that you can use for content such as social media and blog posts. This type of AI can be very useful in content marketing. Additionally, there are tools for interacting with consumers onsite, providing customer service, aiding in content creation, designing assets, and more. Often the best way to use these tools today is to augment existing processes rather than replace them entirely. However, these engines can give you a great start, provide inspiration or improve efficiency of existing processes.
We know, we know... Data is yesterday's news. It was all the buzz in 2015, and what has become of it? Well, the truth is that all of that great AI potential we just covered in the last section is all powered by data. The more high quality data you have at your fingertips, the better experience you can provide for consumers.
Unfortunately, due to a couple of bad actors (we won't name any names... eh hmmm), collecting data has gotten a bad wrap. But when done transparently with a clear value proposition for the consumer, you can strike the right balance between good for your business and good for the consumer.
A great example is the Vans Family loyalty program. Consumers can create an account and complete challenges to earn cool perks and rewards. Through this process, data is collected that improves the loyalty experience for the consumer. Members get experiences tailored towards their preferences. The result is a win-win for the user and the brand. The key is to be authentic and transparent to avoid some of the PR nightmares associated with collecting user data.
When collecting consumer data, there are a few things to keep in mind to keep your customers happy and feeling safe. Here are some of the most important aspects to consider when collecting user data:
By implementing these three tactics you will build better, more authentic relationships with your customers.
Edge computing is a lot like the many other technologies we have talked about in this post. This is an evolution of something that already exists. In fact, it would be better described as Fog Computing since edge computing typically refers to devices "at the edge" of a network (think IoT). So why mention it here?
We mentioned 3D technologies and how they will be important for eCommerce. It's hard to have a 3D experience if you don't have the assets available. Many of those must be processed at the edge before being sent off to your device. The same goes for VR and AR. If you are going to offer a VR/AR experience, not only do you need content, you need to render and process it before sending it to the consumer.
Edge computing is also important for your IoT devices. Think about a smart mirror with Alexa built-in, or a smart speaker with a display. These types of devices need the ability to talk directly to cloud services and/or other edge computing-enabled devices. It's not just about the processing power needed to run these experiences, but also the speed.
Edge computing allows for near real-time responses (even if that response is just sending data off to another device/service). It can save you money in bandwidth costs. It can also keep your devices operating at maximum efficiency so you don't have to worry about battery life or overheating.
Edge computing has a lot of potential to mesh well with the technologies discussed in this post, but it is still in its early days. Many developers are building apps that are not fully taking advantage of edge computing's true power. So take your time and build something that provides real value to consumers or your business will suffer.
OK, we know crypto is in a bit of a slump. But that doesn't mean there isn't a future. Like all emerging technologies, the kinks will be worked out over time. And we don't see a future where it disappears. Given the current crypto ice age, mark this one in particular as developing - something to keep your eyes on as it develops.
Crypto is poised to be one of the most disruptive technologies for eCommerce. It has the potential to erase many existing business models and create new ones. We believe Crypto will have a major impact on economies around the world, not just in terms of currency but especially in terms of security tokens. To help us understand the scale of this impact, we're going to break this broader category into 3 sub-topics:
Blockchain is a decentralized ledger technology that enables secure transactions and computation in an untrusted network (Swan, 2015). Blockchain has four key attributes:
1) Immutability
2) Byzantine Fault Tolerance
3) Ecosystem-enabling Platform
4) Cryptography
To learn more about blockchain and how it can help your business, check out this article.
Cryptocurrencies are the native currencies on a blockchain platform. The most popular example of Cryptocurrencies is Bitcoin, which was introduced in 2009 by Satoshi Nakamoto (Nakamoto, 2008). Additionally, more examples of Cryptocurrency are Ecosystem-enabling Platforms and Cryptography.
An Ecosystem enabling platform acts as a pathway to enable the creation of decentralized applications (Dapps). Decentralized applications can be computer programs or applications that are not directed by a single individual but instead can be accessed by all. The key feature of this type of platform is the ability for smart contracts to attach themselves directly to a blockchain without having to use another existing platform. Ethereum, for example, can be considered both an ecosystem-enabling and crypto-platform.
Ethereum was developed by Vitalik Buterin in 2013 (Buterin et al., 2015). It is considered the first blockchain platform to become widely adopted for decentralized application development.
Cryptography is necessary because it provides security for both authentication and encryption of information. Cryptography is critical because blockchain technology enables peer-to-peer transactions without the need for a central intermediary (e.g., banks and financial institutions).
As of recently cryptocurrencies have not been performing well. This can partly be attributed to the recent inflation and higher interest rates that 2022 has brought with it. However, we believe this will change. The ups and downs that are occurring in Crypto investing are not uncommon. In fact, Bitcoin crashed in 2018 but has since recovered. We believe that Cryptocurrencies are still a very important ecommerce technology that should not be ignored. To learn more about the Crypto crash and how it might progress, check out this article.
Non-fungible tokens are unique digital assets that cannot be traded like traditional cryptocurrencies such as Bitcoin and Ethereum. NFTs can represent ownership of physical property, virtual collectibles, games, loyalty points, etc. The adoption of NFTs will likely proliferate in the gaming market.
To learn more about how NFTs can be used to tokenize your business model, check out this article.
Summary
Now that we've covered some of the basics within crypto-tech, let's continue to look at more tech that can and will upend eCommerce in the future and change the way people and businesses interact online.
As you can see, there are some truly amazing technologies that are changing the way consumers interact with businesses and products. The key is to make sure you understand what your consumers want and need. These new technologies need to actually solve a problem for your consumers or they won't stick around long enough for you to figure out how to monetize them. Start looking into new technology for your business so you can elevate your consumer experience to its utmost potential. At Indra Intelligence we can help you find and use the right technologies to maximize your business and its potential. Click here to learn more.