Find out how the IoT is fundamentally changing retail.

1. IoT and Retail
Jamie Warren, Technology and Innovation Director
@jamiewarren

2. Firstly, some definitions…

3. 1. The Internet of Things

4. The network of physical
objects and devices
connected to the internet

6. 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

7. 2. A Thing

8. We are not talking about…

9. We are talking about…
EVERYTHING
ELSE

10. Everything that can be automated
will be automated

11. Everything that can be connected
will be connected

12. So, why now?

13. • Cloud computing
• Cheap sensors
• Everyone has a smartphone
• IPv6 adoption
IoT Enablers

14. 14
4 billion unique internet addresses 300 billion, billion, billion unique internet addresses

15. Show me the money

16. “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

17. “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.”

18. Let’s get back to the point…retail.

19. Opportunities for Retail with IoT
Customer
Experience
Data Driven Retail
Supply
Chain
New Channels and
Revenue streams

20. Customer Experience
In Store
● Parking Assistance
● Smart Mirrors
● Smart Shopping carts
● ‘Queue busting’

21. Customer Experience
Location / Behaviour
● Behaviour based pricing
● Personalised messaging
● Order anywhere / Virtual
Stores

22. Customer Experience
Product provenance and authenticity
● Fraud prevention
● Traceability

23. Case study : Disney Magic Band

25. Data Driven Retail
● Analytics
● Passive Wifi Tracking
● Gender and Age determination
● Connected shelf labels

26. Case study : Honest Coffee Shops

27. Supply Chain / Industrial Internet
● Machine-requested restocking
● Smart Shelves
● Product Life extension
● On demand production
● Fraud prevention
● Smart Packaging

28. Case study : Johnnie Walker Blue Label

29. 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”

30. Case study : Lowe’s Iris

32. 32

33. 33

34. Complexity
• Machine-to-Machine
communication is where the
value is
• No yet plug-and-play
• Machine Learning vital

35. Capacity
• Poor Connectivity
• Insufficient Bandwidth
• Fog Computing?

36. Security
• Complex ecosystems
• Security often an afterthought
• “Pay up or the fridge gets it!”

37. Behaviour Change
• Privacy concerns
• More than half of U.S.
consumers who have owned
an activity tracker no longer
use it.

38. Don’t Panic!

39. 1. Focus on Customer Experience.
2. Think Big Data and Analytics.
3. Design Security in.
4. Start small. Start now.
Developing an IoT Strategy

40. “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

41. Thank you.