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April 2016

BEACON TECHNOLOGY: CONNECTING THE VIRTUAL AND PHYSICAL WORLDS

By Craig Van Pelt

Beacons are sending you a message. Whether or not you are receiving that message depends on your

willingness to accept it. There is no existential meaning attached to that thought, it typically means you have

either opted in or opted out on your smartphone. If you have heard the term beacon technology, it’s likely that

you would associate it with retail marketing. Retailers strategically place beacons throughout a store to send

product information, coupons, sales, or links to online information via your smartphone. However, beacon

technology uses and applications are becoming more widespread and versatile. Corporate real estate (CRE) is

already implementing beacon technology for certain scenarios. As the technology is tailored for CRE purposes,

its use will increase exponentially. Regardless of how quickly beacons are adopted, they are already

connecting the digital and physical worlds.

Beacons are small battery-operated devices – ranging in size from a

cookie to a mere sticker – that can be placed nearly anywhere, inside or

outside. Beacons emit signals (small packages of data) via Bluetooth Low

Energy (BLE) several times per minute that are captured by devices

(smartphones) within an approximate 100 to 200 foot (30 to 60 meter)

range. The beacon signal is a radio wave that is not limited by walls or

doors and helps guide customers/users to particular destinations, as well

as deliver and receive information based on proximity. These devices are

distinct from GPS technology, which is expensive, drains phone batteries,

and needs cell towers and/or satellites to provide locations. Conversely, beacons are inexpensive, operate on

long-lasting batteries (years), and transmit signals that can be interpreted in a wide variety of applications.1

HOW IS BEACON TECHNOLOGY CURRENTLY BEING USED?

The retail sector has utilized beacon technology to create a shift in consumer engagement. Once a beacon

recognizes a specific customer through an enabled smartphone app, it can push out discounts to specific

customers when they are near a particular product, based on past shopping patterns and purchases. This

customization is what sets beacon technology apart from other offerings.

Image from estimate.com

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The sports and entertainment industry has also taken notice of beacon technology. Major League Baseball

implemented Apple’s iBeacon technology in 20 of the 30 MLB baseball parks in 2015. Although ostensibly a

marketing tool, users with Apple’s IOS operating system and other enabled devices have access to maps,

concession information, video clips, and the ability to upgrade your seat. The Los Angeles Dodgers have

reportedly installed 65 beacons throughout their stadium.2 The technology is available on many other

technology platforms, too.3

Institutions, like the Brooklyn Museum, are implementing the technology to provide context to visitors. Because

beacons are “location aware”, information can be shared through an app (instead of the ubiquitous audio

headsets) on specific exhibits and artists. In turn, this information can also help museum staff answer specific

questions from visitors, know which exhibits are most popular, and plan for future exhibitions.4

See examples of how different industries are using beacon technology at the end of this document.5

HOW CAN BEACON TECHNOLOGY BE USED WITHIN CORPORATE REAL ESTATE?

The development of Smart Buildings has ushered in a better way to integrate building systems to improve

efficiency, control, and decision making. Fundamentally, these types of buildings utilize Building Automation

Systems (BAS) to integrate these systems. Beacon technology does not make a building smart, but rather

complements these systems by capitalizing on the increasing connectivity of the Internet of Things (IoT). The

IoT is the concept of connecting any device with an on/off switch to the Internet (and/or to each other).6 The

Big Data era is closely associated with the IoT due to the enormous amount of data the “Things” can produce.

The Internet of Things (IoT) is the network of physical objects – devices, vehicles, buildings and other items embedded with electronics, software, sensors, and network

connectivity-that enables these objects to collect and exchange data.7

What is a Smart Building?

There are many definitions, but the Institute for Building Efficiency describes smart buildings as a structure that delivers useful building services that make occupants productive (e.g. illumination, thermal comfort, air quality, physical security, sanitation, and many more) at the lowest cost and environmental impact over the building lifecycle.

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Beacon Technology and CRE: Opportunities & Challenges OCCUPANCY MANAGEMENT

The implementation of activity based working (ABW) in office environments is providing greater collaboration

and more efficient space utilization. Open seating and other flexible work stations increase efficiency, but make

tracking staff whereabouts difficult. Within smaller offices, this is not necessarily a problem, but scaled to a

larger office on multiple floors or even spread out over an entire campus, the challenges of understanding

where employees are situated and how effectively the space is being used quickly escalates. Faced with these

challenges, CRE departments and facility management (FM) have limited knowledge of occupancy levels and

how to prepare for future space needs. Couple these problems with a fast growing business and the

importance of tracking employees and space quickly intensifies.

From a utilization standpoint, beacon technology provides insight into how a building is being used and can

ultimately lead to more efficiently planned spaces. An office populated with smartphones and outfitted with

proximity beacons and other sensors can deliver highly accurate occupancy information. Sensors can measure

environmental data, such as body temperature and vibration to detect human presence. This data can help

pinpoint peak time usage and favored workplace settings and resources. Coupled with a dashboard and a

digital floor plan(s), real-time and historical data can be visualized to show how space is being used.8

Beacons can also identify open meeting rooms, locate individual employees, and track items, like that projector

that is always missing. The game changer for beacon technology, versus other tracking technology, is that

information is now instantly available to staff through their phones, not only FM. This better understanding of

how and when spaces are being occupied can also help with energy efficiency by tailoring HVAC systems to

operate based on past and projected patterns.

TARGETED MESSAGING

Within retail settings, proximity to a beacon can send coupons, offers, and daily deals to a customer as they

pass a specified product or location in a store. Corporate real estate can use this same technology to push

specific messaging to individuals. For example, once a guest enters a building, they pass a beacon which

gives directions to a meeting and a detailed itinerary of the day’s events. The important piece of this

technology is context awareness.9 Context awareness is a property of mobile devices that is defined

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complementarily to location awareness.10 In other words, the system must know about the preferences or

identity of a particular individual in order to deliver the right message when they pass near a designated area.

TENANT EXPERIENCE

Simplifying and improving occupants’ experiences within a building is the goal of any facility manager or

building owner. The idea behind the Internet of Things and Smart Buildings is to facilitate these experiences for

tenants. For example, a tenant enters a building and her office computer and lights are turned on, HVAC is set

to the preferred temperature, and the coffee machine is triggered. Through beacon technology and context

awareness, these features can be implemented into building automation systems to improve the users’

experience for users.

DISASTER MANAGEMENT

Threats or danger can come in many forms – natural disasters, fires, power outages, or terrorist attacks.

Because beacons work on batteries and send signals through Bluetooth technology, connection to the internet

is not necessarily dependent.11 Beacons can provide immediate updates to people quietly and securely on the

one device that most have with them at any given moment – their smartphones. Providing updated information

and escape routes can prove to be invaluable. Beacons can also send the location of individuals to emergency

personnel to let responders know where people are located in rescue and recovery efforts.

CHALLENGES

The actual or perceived threat of the invasion of privacy is a very real issue surrounding beacons and micro-

location enabling services. Although the technology is intended to provide efficiencies and increased safety,

there are scenarios, such as tracking employee locations, which may be considered intrusive. Users of beacon

technology can opt in or opt out of the service on their Bluetooth enabled device. Adoption of this service will

have to be widely used and generally accepted for the technology to reach its full potential. Other issues such

as security, interference problems, and accuracy will only improve as beacon technology proliferates. Further,

compatibility between the beacon manufacturers and the associated software, coupled with the hardware of

different phones, will need to be consistent and inclusive for beacon technology to truly succeed. Once these

challenges are addressed, the use of beacons will flourish and can become a seamless part of our

experiences – truly connecting the physical and digital world for tenants, occupiers, and guests.

© 2016 CORENET GLOBAL 5

CoreNet Global is the world’s leading association for corporate real estate (CRE) and workplace professionals, service providers and economic developers. Almost 10,000 members, who include 70% of the Fortune 100 and nearly half of the Forbes Global 2000, meet locally, globally and virtually to develop networks, share knowledge, learn and thrive professionally.

Craig Van Pelt Director, Knowledge Community Research +1 404.589.3248 cvanpelt@corenetglobal.org

Craig Van Pelt is the Director of Knowledge Community Research with CoreNet Global. As part of his recent focus, Craig has undertaken numerous studies and written extensively on a spectrum of important topics from key performance metrics to workplace wellness. He has broad-based strategic experience in the public, private and non-profit sector and his experience includes financial analysis and modeling, corporate real estate, valuation, development economics, site selection, and market research. Craig holds an MBA from the University of Michigan and a BA in Urban Planning from Miami University. He is also a member of the American Institute of Certified Planners (AICP). For more information on the CoreNet Global Knowledge Communities, please visit our website. Check out our Pulse Blog to keep up on the latest projects and new content being delivered. Connect with us.

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REFERENCES

1 Maycotte, H.O. “Beacon Technology: The where, what, who, how and why”. Posted September 1, 2015. Forbes.com. Accessed April 2016 from: http://www.forbes.com/sites/homaycotte/2015/09/01/beacon-technology-the-what-who-how-why-and-where/#54ab0b834fc1

2 Accessed April 2016 from http://www.engadget.com/2014/03/28/san-francisco-giants-mlb-ibeacon/ 3 Note: In July 2015, Google launched its Bluetooth technology specification called Eddystone, a direct competitor to Apple’s iBeacon. 4 Shu, Les. “Van Gogh vs. Candy Crush: How museums are fighting tech with tech to win your eyes”. Digitaltrends.com.

Access April 2016 from: http://www.digitaltrends.com/cool-tech/how-museums-are-using-technology/ Note: The Brooklyn Museum has installed beacon technology, but not without some issues. For further reading please see: https://www.brooklynmuseum.org/community/blogosphere/2015/02/04/the-realities-of-installing-ibeacon-to-scale/ 5 Many of the uses for beacon technology within industries was taken from the following:

http://blog.mowowstudios.com/2015/02/100-use-cases-examples-ibeacon-technology/ 6 Morgan, Jacob. “A simple explanation of ‘The Internet of Things’”. Posted May 13, 2014. Forbes.com. Accessed April

2016 from: http://www.forbes.com/sites/jacobmorgan/2014/05/13/simple-explanation-internet-things-that-anyone-can-understand/#23585ac36828

7 “Internet of Things Global Standards Initiative”. Accessed April 2016 from: http://www.itu.int/en/ITU-

T/gsi/iot/Pages/default.aspx. The initiative also defined the IoT as: a global infrastructure for the information society, enabling advanced services by interconnecting (physical and virtual) things based on existing and evolving interoperable information and communication techniques.

8 Information related to beacon and sensor technology and their potential uses to track occupancy was found here:

http://ap.haworth.com/docs/default-source/white-papers/haworth-analytics---april-2015.pdf?sfvrsn=6 9 Cheng, Natalie. “A Guide to iBeacon Hardware and Contextually Aware Platforms”. Posted April 28, 2014. Chaione.com.

Accessed April 20166 from: http://chaione.com/a-guide-to-ibeacon-hardware-and-contextually-aware-platforms/ 10 Accessed April 2016 from: https://en.wikipedia.org/wiki/Context_awareness 11 Danigelis, Alyssa. “S.O.S. app turns smartphone into emergency beacon”. Discovery.com. Accessed April 2016 from:

http://news.discovery.com/tech/apps/sos-app-turns-smartphone-into-emergency-beacon-140429.htm

OTHER RECOMMENDED READING AND WEBSITES RELATED TO BEACON TECHNOLOGY https://hbr.org/2014/09/how-beacons-are-changing-the-shopping-experience http://www.ibeacon.com/ http://blog.estimote.com/post/106913675010/how-do-beacons-work-the-physics-of-beacon-tech Micro-location for Internet of Things equipped Smart Buildings