IoT and RetailJamie Warren, Technology and Innovation Director

@jamiewarren

Firstly, some definitions…

1. The Internet of Things

The network of physical objects and devices connected to the internet

World Population 6.3 Billion 6.8 Billion 7.2 Billion 7.6 Billion

Connected Devices 500 Million 12.5 Billion 25 Billion 50 Billion

Connected Devices per Person 0.08 1.84 3.47 6.58

2003 2010 2015 2020

Source: Cisco 2011

2008ish, more devices

than people! IoT is born.

2. A Thing

We are not talking about…

We are talking about…

EVERYTHING ELSE

Everything that can be automated will be automated

Everything that can be connected will be connected

So, why now?

• Cloud computing

• Cheap sensors

• Everyone has a smartphone

• IPv6 adoption

IoT Enablers

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4 billion unique internet addresses 300 billion, billion, billion unique internet addresses

Show me the money

“The industrial Internet has the potential to add $10 to $15 trillion to global GDP over the next 20 years”- GE

“The IoT will create $19 Trillion of Value at Stake for Companies and Industries”- Cisco

“The worldwide market for IoT solutions will grow from $1.9 trillion in 2013 to $7.1 trillion in 2020”- IDC

“IoT product and service suppliers will generate incremental revenue exceeding $300 billion in 2020.”- Gartner

“Trying to determine the market size for the Internet of Things is like trying to calculate the market for plastics, circa 1940. At that time, it was difficult to imagine that plastics could be in everything.”

Let’s get back to the point…retail.

Opportunities for Retail with IoT

Customer Experienc

e

Data Driven Retail

Supply Chain

New Channels and Revenue streams

Customer Experience

In Store● Parking Assistance● Smart Mirrors● Smart Shopping carts● ‘Queue busting’

Customer Experience

Location / Behaviour● Behaviour based pricing● Personalised messaging● Order anywhere / Virtual

Stores

Customer Experience

Product provenance and authenticity● Fraud prevention● Traceability

Case study : Disney Magic Band

Data Driven Retail

● Analytics● Passive Wifi Tracking● Gender and Age

determination● Connected shelf labels

Case study : Honest Coffee Shops

Supply Chain / Industrial Internet

● Machine-requested restocking

● Smart Shelves● Product Life extension● On demand production● Fraud prevention ● Smart Packaging

Case study : Johnnie Walker Blue Label

New Channels and Revenue Streams

● Sharing fixed assets and systems

● New product development“I don’t need a drill, I need a hole in my wall”

Case study : Lowe’s Iris

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Complexity

• Machine-to-Machine communication is where the value is

• No yet plug-and-play

• Machine Learning vital

Capacity

• Poor Connectivity

• Insufficient Bandwidth

• Fog Computing?

Security

• Complex ecosystems

• Security often an afterthought

• “Pay up or the fridge gets it!”

Behaviour Change

• Privacy concerns

• More than half of U.S. consumers who have owned an activity tracker no longer use it.

Don’t Panic!

1. Focus on Customer Experience.

2. Think Big Data and Analytics.

3. Design Security in.

4. Start small. Start now.

Developing an IoT Strategy

“It used to be the case in business that the big fish ate the small fish, now it’s the fast fish eating the slow fish.” Joe Jensen, Intel

Thank you.