Tech Trends: 4 Reasons Why Women Will Rule the Internet of Things

Remember when all everyone could talk about was “The Cloud”. Every commercial and movie contained some mention of this invisible world where all data could be stored and saved. Nobody really knew what it was or where it lived, but they were told that it would change the world. Nowadays, the cloud is just that place where you save your iTunes songs and Amazon Prime movies. Similarly, the phrase “The Internet of Things” is this generation’s buzzword for innovation. Everything from teddy bears to refrigerators are now labeled as “IOT products”. What is driving this surge of interest in connected devices?

About a year ago, BI Intelligence produced a report that highlighted the four key elements that were driving the Internet of Things:

• Cost of internet-connected sensors coming down
• More money being poured into the IOT
• Expanded internet connectivity
• High adoption of “remotes”, especially smartphones, phablets, and tablets

Read that again. Did you notice anything missing from that list? I did. Consumers. When have you ever heard of a new technology being successful without mass consumer adoption? It just doesn’t happen. Per Everett Roger’s diffusion of innovation theory, “innovation must be widely adopted in order to self sustain. As the adoption rate rises, there is a point at which an innovation reaches critical mass.” This only occurs if innovators and early adopters accept the new technology as having value. If they don’t, it may never attract enough demand to go mainstream.

DIffusion of Innovation Model – www.smartinsights.com

When companies examine technology drivers through a consumer lens, their marketing strategies become more focused on user benefits, which can vary greatly depending on different demographics, including gender. For instance, when a mother of two decides to buy a Fitbit, does she make her choice based on if it has the most cutting edge sensors (as men tend to) or because of how it will impact her health goals? A smart company already knows the answer, because they know how to differentiate features and benefits to build products that fit a woman’s unique profile, thereby, increasing consumer satisfaction.

But why am I betting on women to be the main driver of the Internet of Things? I’ve listed my four reasons below.

#1 Women Are Gaining Buying Power

Current reports show that women are getting more college degrees than their male counterparts. It’s projected that by 2020, 58 to 62% of graduates with a bachelor’s or master’s degree will be women. This increase in education will likely lead to increased earning and buying power, and it already has. In 2013, women controlled 64% of global household spending or $39 trillion, and this spending is expected to increase to $69 trillion by 2018. Female buying power in the US is even higher, with 73% of women controlling or influencing household spending.

Now you may be thinking, “Well, of course. Women are the main purchasers of clothing, groceries, and basic household necessities, but they don’t buy TVs or care about smart cars. They just aren’t as concerned with consumer electronics.” Sorry to tell you, but that notion is false. The gender gap between purchases of consumer electronics is declining as I type. In 2011, the Consumer Technology (Electronics) Association reported that women only spent 9% less per year ($61) on consumer electronics than men. It’s 2016. How much do you think they are spending today? And if you want to talk about cars, women buy 54% of all cars purchased in the United States and influence 84% of all vehicle decisions. Based on those statistics, automobile companies such as Ford, who are integrating Alexa-like Internet of Things solutions into their cars, would be smart to include women in the conversation.

#2 Women Care About Home Security & Safety

If you were at the Consumer Electronics Show (CES) in January, you would agree that home security is one of the top trends within IOT. There were booths after booths full of smart locks, security systems, and webcams. Typically, men are viewed as the technical person in the house, but this is changing as household demographics change. According to the National Association of Realtors, 23% of new home buyers are single women compared to 15% percent who are single men. These numbers include single professionals, mothers, and widows who don’t mind paying more to build a safe community for their family and themselves. This makes them more attracted to the concept of Smart Homes.

Nest Security Web Cam – Electronics Weekly

Companies like Nest, SmartThings, and SkyLink are only touching the surface of what home connectivity can do for security. As IOT technology matures, women will expect solutions that match their unique needs and lifestyle. They will also be looking for ways to use their mobile devices to care for their family. Whether they are using a smartwatch to track their child’s whereabouts remotely or using a connected thermometer to measure their toddler’s temperature, they will expect companies to design IOT products that keep their families safe and healthy.

#3 Women Rule the Kitchen, For Now…

Almost every MBA student has read or responded to the Nintendo Wii case study (when I was a teaching assistant for a business strategy course, I read a hundred of these) regarding disruptive technology and its impact on corporate strategy. When asked why Microsoft created the Xbox when they were known for developing office productivity software, the most strategic thinkers highlighted the threat to PC gaming by home entertainment centers. If they didn’t act, Microsoft felt they would lose significant market share to console gaming and would not be able to “win the living room”. By creating the Xbox, they would keep their competition, mainly Sony, from controlling the home.

Two decades later, a similar war on the home is occurring but this time it’s happening in the kitchen and laundry room. Smart appliances are no longer an idea from a ‘70s Star Trek episode. Companies such as Whirlpool, LG, and Samsung are designing refrigerators, stoves, ovens, washers, and dryers that can be remotely controlled from a consumer’s mobile phone. At CES, I saw numerous examples of how the Internet of Things is changing the way we cook and clean. But, think about this for a moment. Who in the home is most likely to take care of these domestic duties?

Household Activities by Gender – www.bls.gov

Despite increased income and buying power by women, the Bureau of Labor Statistics’ Annual Time Use Survey revealed that the percentage of women responsible for housework (83%) has barely changed since 2003. It doesn’t take a brain surgeon to figure out that if connected home appliances are going to succeed, they will need to be designed for women. And not just any women. Busy women who not only “Lean In” but do so while taking care of an entire home. So when you ask yourself who will be driving the Internet of Things in the home, the answer is very clear: women will. Their need to multitask their domestic and professional lives provides an enormous opportunity for brands to develop premium products.

#4 Women Are More Innovative…I’m Joking…Kinda

Within this discussion of the Internet of Things, I’ve mostly focused on the female consumer. But let’s not ignore the most influential players in innovation—female engineers and managers. Typically in tech, you see a larger number of women in marketing roles, but very few working with the actual technology, which is a shame. Studies show that companies that invest in developing women and other diverse employees are more likely to be more innovative. In a Coexist article, Jeanne Hultquist, Senior Director for Anita Borg Institute for Women in Technology, said, “When you form a team tasked with a problem to solve— if you have half a dozen people with the same background in terms of life experience, education, where they grew up—you’ll get a consensus around relatively homogenous solutions. [With] more diverse team chemistry, you get more perspectives with a larger variety of options to consider, and more chances of having innovative solutions proposed.”

There is a lot of truth to her statement. Think about it. If you want to build technology for women, who should be represented in the room? I’ll let you answer that question yourself. But to help you out, here are some telling statistics:

• U.S patents produced by mixed-gender teams were cited 30-40% more than other similar patents
• Teams with at least one female member have a higher collective IQ than all-male teams
• Female representation in senior management improved financial performance in organizations where innovation is a key component of business strategy

But as compelling as these stats may be, diversity in technology is still a huge problem. A study by the American Association of University Women showed that the percentage of women in engineering only rose by 3% between 1990 and 2013, while computing and mathematical jobs held by women decreased from 35% to 26% across the same time. At Google, a huge contributor to the Internet’s growth, women account for only 10% of the company’s tech jobs. This number is even lower at Facebook and Twitter, 15% and 10% respectively.

Women in Technology – www.huffingtonpost.com

It’s my hope that companies investing in the Internet of Things realize that this is not the Internet of Men and will commit to bringing more women into the creative and engineering process.

Women and men aren’t that different; they both seek the same things when shopping for technology: ease of use, multi-functionality, and good warranties. However, you must be able to articulate the benefits and value of the Internet of Things on an individual level. Gone are the days when businesses could make a phone pink, and it’s suddenly built for a woman. Instead, smart home technology companies should be bringing more women into the process, from ideation through development. By gaining the support of early adopters within this growing consumer group, it’s more likely that new ideas will reach the masses faster. They need to ask women what they want and most importantly, listen. Because one day women are going to rule the Internet of Things.

Keep the Discussion Going

These thoughts are based on my own experiences as a woman working with technology. Since my experiences are not universal, I want to know what you think. What would you change or add to my list?

Please leave a comment below. I’d love to keep this conversation going.