This presentation was given by GK Digital Media at the Elevation Summit on August 21, 2015. It details how the internet of things will impact retailers and consumer product companies within the next few years.

1. What’s Next in the
Connected Retail World?
Greg Kahn / GK Digital Media / August 2015

2. The Internet Of Things Has Arrived
“The Internet of
Things Will Transform
Retail As We Know It.”
Keith Mercier
Global Retail Leader for IBM Watson
“[The Internet of Things]
will be bigger than anything
that’s ever been done in
high tech.”
John Chambers, Executive Chairman of Cisco

3. IoT has piqued the interest of mainstream consumers
Worldwide Google search activity for “Internet of Things,”
January 2008 – June 2015
Source: Google Trends

4. Why Now?
Source: Goldman Sachs, Cisco, IoT Analytics, GK Digital Media
Adoption of
Mobile Devices
Cost of
Sensors
Cost of
Bandwidth Cost of
Processing
Shrinking
form factors
Big Data tools
+ Infrastructure
Emergence
of IoT

5. So, what does the term actually mean?
The Internet of Things (IoT)
(n.) “Sensors and actuators embedded in physical objects
are linked through wired and wireless networks, often
using the same Internet Protocol (IP) that connects the
Internet”
IoT enables multi-way communications between objects
and brands, objects and consumers, objects and objects.
The result is a virtuous cycle of value improvement.
Source: McKinsey, HBR
Sensors
People &
ProcessesConnectivity
IoT

6. IoT: The Who’s Who
600+companies in IoT as of Dec 2014

7. The Internet of Things Consortium (IoTC) is comprised of more than 60
leading hardware, software and analytics companies – in areas including
home automation, wearables, connected cars, smart cities, 3D printing, and
virtual/augmented reality.
The IoTC is dedicated to the growth of the internet of things
marketplace and the development of sustainable business models.
The Internet of Things Consortium

8. 60+ and growing
Members

9. The impact of IoT
The internet of things is
revolutionizing our daily lives.
• Safety in our homes
• Commute to work
• Delivery of goods and services
• Health monitoring
• Improving the efficiency of industrial machinery
• City infrastructures

10. 1
2
3
Enhancing customer
experience
Improving operational
efficiency
Enabling creation of
new channels +
revenue streams
How IoT will play into Retail

11. Today’s Complex Retail Journey
Source: Cisco IOE Retail Journey

12. IoT will…
1
2
3
Enhance customer
experience
Improve operational
efficiency
Enable creation of new
channels + revenue
streams

13. IoT Impact on In-Store Experience
Personalized Shopping Experience
Beacons
Wearables
Contactless CheckoutSmart vending
machines

14. Retailers are already setting up tech open houses
Target’s Open House provides a hands-on demonstration so consumers can
truly experience how technology will improve their lives on a day-to-day basis
Baby’s cry is detected
by onesie, alerting a
mother’s phone
Coffee maker is activated,
and sound is piped in to
confirm the brew
Temperature adjusts and
lights dim when
consumers lie on beds

15. Retailers are offering more connected
touchpoints to simplify consumer shopping
The on-the-go shopper expects no hassle “in-and-out” experience
Push Notification Sent
Upon Entering Store
for Latest Offers
Digital Signage for
Additional Information
Contactless Payment
During Checkout

16. What’s to Come: Home-to-car-to-store
At Home Seeking Information In Transit Entering the Store

17. What’s to Come (Part 2):
Virtual and Augmented Reality
Neiman Marcus’s smart mirrors allow shoppers to
compare several outfits side-by-side and share
photos with friends
American Apparel’s shopping app transforms a
physical product in-store to an informative, custom
digital experience
Virtual Dressing RoomAugmented Shopping

18. What’s to Come (Part 3):
Connected Packaging and Buttons
SMART PACKAGING
Placing RFID chips on the
package to learn more about the
product or send special offers
when the item is running out
Johnny Walker Smart Bottle
EXTENDING CONNECTED
EXPERIENCES
Create added value experiences
through augmented reality that
provide either inform, entertain, or
delight the user
Heinz Trivial Pursuit
HOME REPLENISHMENT
Provide consumers a personalized
home inventory management
device that replenish consumer
goods automatically and on-
demand.
Amazon Dash

19. IoT will…
1
2
3
Enhance customer
experience
Improve operational
efficiency
Enable creation of new
channels + revenue
streams

20. IoT and Retail Supply Chain
Smart Thermostats/Lighting
Smart Tagging Products
Smart Shelves

21. IoT will…
1
2
3
Enhance customer
experience
Improve operational
efficiency
Enable creation of new
channels + revenue
streams

22. Monetization of IoT Data
OPPORTUNITY
INDUSTRY EXAMPLE
IoT – through data sales – becomes its own profit center
Tesco works with Dunhumby to sell its purchase
shopping data and analytics platform to CPG
suppliers for them to better understand behaviors
and segmentation

23. OPPORTUNITY INDUSTRY EXAMPLE
Service Based Business Models
Industrial Printer 3D Printing Service
Shift focus from expenditures to pay-by-use model In order to drive sales of consumer 3D printers, Staples
invests in a 3D printing service to get users comfortable
with the technology and software before purchasing

24. New Pricing Models
360pi IBM Real Time Pricing
Intelligence Dashboard
OPPORTUNITY
INDUSTRY EXAMPLE
Dynamic pricing models based on customer preference
supported through micro-segmentation
Ace Hardware catalogs inventory into IBM 360pi’s real
time pricing intelligence tool to power dynamic pricing
based off zone rather than setting a national price

25. Beacon Networks
OPPORTUNITY INDUSTRY EXAMPLE
Creation of a cloud-based beacon network Swirl’s cloud-based software allows retailers and marketers to
plan and assemble on-premise ad campaigns. The ad format
appears as a full-screen takeover that auto-launches on a user’s
phone when they are in the range of a beacon — which can be
as close a proximity as a certain aisle or even an area of a shelf.

26. Where do we go from here?
• Tweak behaviors, don’t reinvent them
• Consider the platform
• Start small, but keep an eye out for
expansion
• Integrate technology and standards
• Partnership is key
• Think beyond the smartphone
• Consider new revenue streams
• Focus on data integrity
Help define future consumer
experiences
Build an infrastructure
for IoT

27. Call to action: 4 ways to get started now
1
Upgrade Your
Registers to Enable
Digital Payments
Deploy Smart
Vending
Machines
2
Make Your
Shelves Smarter
with Sensors
Offer Personalized
Messages at Home, in the
Car, at the Store and On
the Mobile Device
3 4

28. THANK YOU
Greg Kahn
greg@gkdigitalmedia.com
@GKmediaBUZZ

29. Sources
Google Trends “Internet of Things,” January 2008 – June 2015
McKinsey Quarterly Insights and Publications, “The Internet of Things”
HBR: Hui, Gordon, “How the Internet of Things Changes Business Models,” Harvard
Business Review, July 29, 2014
Center Electric 2015
Goldman Sachs Global Investment Research
Cisco Consulting Services, 2015
Higginbotham, Stacey, “Target opens up a new store in San Francisco to try out smart
devices”, Forbes, July 9, 2015.
Eliot, Lance, “Retail's new reality: Invisible shopping centers and virtual assistants,”
CNBC, April 24, 2015.
Quirk, Mary Beth, “Neiman Marcus, Nordstrom, & Other Retailers Trying on Smart
Fitting Mirrors,” Consumerist, May 11, 2015.
Takahashi, Dean, “Thinfilm’s smart bottle tells you if your Johnnie Walker scotch has
been opened before,” Venture Beat, February 25, 2015.
“QR Code Review Heinz Trivial Pursuit,” Scan This Guide, July 22, 2014
Perez, Sarah,” What’s It’s Like to Use Amazon’s Dash Buttons,” TechCrunch, August 3,
2015
Karlin, Sarah, “Staples 3D Printing Service Has Arrived,” Fast Co Create, May 5, 2014
“360pi And IBM Collaborate To Help Retailers Price Competitively In Real-Time,”
Innovation Retail Technologies, September 30, 2014
O’Reilly, Lara, “Beacons can finally become massive deal, thanks to Twitter,” Business
Insider, April 23, 2015
Desarnauts, Bernard, “Wristley Apple Insider’s Report #16,” Medium, August 18, 2015
Smith, Cooper, “How beacons – small, low cost gadgets – will influence billions in US
Retail Stores,” Business Insider, February 9, 2015
Bacheldor, Beth, “NeWave Sensors Solutions Unveils Smart Shelf To Track High
Volume, Fast Moving Consumer Goods,” RFID Journal, March 6, 2014
Kasznik, Efrat, “5 ways the ‘Internet of Things’ transformed the vending machine,” The
Business Journals, April 10, 2015