SlideShare a Scribd company logo

[REPORT PREVIEW] Smart Places: The Digital Transformation of Location

Visit https://bit.ly/altimeter-smart-places to download the full report.

1 of 9
Download to read offline
SMART PLACES:
The Digital Transformation
of Location
AUGUST 2018
BY ED TERPENING AND CHARLENE LI
WITH AUBREY LITTLETON
Includes input from brands, retailers, and
technology companies
RESEARCH REPORT
PREVIEW VERSION
1
				
TABLE OF CONTENTS
2	 EXECUTIVE SUMMARY
3	 KEY FINDINGS
4	 EVOLVING TO SMART PLACES
5	 DESIGNING SMART PLACES
5	 SMART PLACE DEVICES AND USE CASES
20	 OPPORTUNITIES FOR SMART PLACE TECH ADOPTERS
22	 CHALLENGES FACING LOCATION BRANDS PLANNING SMART PLACES
28	 LOOKING FORWARD
30 	 ENDNOTES
33	 METHODOLOGY
33	 ACKNOWLEDGEMENTS
33	 OPEN RESEARCH
33	 PERMISSIONS
34	 ABOUT US
35	 HOW TO WORK WITH ALTIMETER
2
	
"
	
"
EXECUTIVE SUMMARY
Technology continues to spread its impact on society and commerce in ways that disrupt how
people and businesses interact. The growing adoption of Internet of Things (IoT) consumer
electronics — such as smart thermostats and digital assistants — has paved the way for brands
to use connected devices in their physical spaces too. The same sophisticated technology that
powers “smart home” devices is slowly finding its way into stores, hospitals, and other public
spaces, creating “smart places.”
To compete with digital-only brands, location brands (i.e., brands that serve customers primarily
in a physical space like a retail store or hospital) have invested in websites and mobile apps in
ways that mimic their competitors while neglecting their most-prized asset: their real estate. As
e-commerce giants like Amazon are now investing in brick-and-mortar, the battle for the customer
has shifted to the ground, literally. Location brands in any industry can take the battle offline by
investing in technology-rich locations that raise the bar for Customer Experience (CX).
But as location brands adopt smart place technologies, they will need to balance the value of
the consumer insights and operational efficiencies they stand to gain against the risk that their
reputation might be harmed if consumers think their privacy is violated. Consumers still think
physical spaces like retail stores are safe from the kind of tracking they experience online (e.g.,
through targeted advertising). While they might perceive online tracking as a somewhat abstract
invasion of privacy, they might interpret that same level of tracking in a physical location as a
more personal intrusion. The public is already shocked by the amount of personal data businesses
collect online — and that is increasingly released through hacks. The growing number of physical
locations rich with tracking technology will only add fuel to the growing privacy fire.
For this report, we sought to understand the opportunities for location brands that invest in smart
place technology and the barriers they face. While location brands can achieve many goals with
smart place technology — e.g., increased revenue, efficiency, and safety —
the focus of our research was on its use to improve CX. To that end, we interviewed early
adopters, device makers, industry groups, and vendors who focus on CX management in
physical locations.
As we delved deeply into this emerging area, we found no dominant term defining the use of IoT
devices in the service of location brand experience. To remain consistent with the “smart home”
movement, we opted for the term “smart place,”1 which we define as:
"A physical space — public or private, indoors or outdoors —
where connected, sensing technology is used to gather insights into the
actions, intent, and behavior of people in it to support customer experience.
Smart places can be ‘active’ when people opt-in; ‘passive’ when people’s
actions are tracked and their behavior intuited in an unobtrusive way or
without their knowledge; or a combination of the two.”
2
3
	
"
KEY FINDINGS
Consumer IOT Bandwagon
Smart, small, AI-assisted tech adopted by
consumers as IoT wearables and smart home
devices are finding their way into businesses
in every industry — including retail, healthcare,
and transportation — where brands serve
customers. The growth of smart places will
heighten consumer awareness of the tradeoffs
between value of personalized experiences
and privacy in public places.
Market Maturity
The technology market for smart place
devices is early and, therefore, fragmented
and complex. This tech ecosystem is broad —
spanning personal consumer mobile devices,
on-site sensing beacons, cloud-based AI and
data systems, and systems that integrate on-
site and enterprise customer data.
Focused Use Cases
The hundreds of devices we reviewed exposed
many CX use cases, but they can be boiled
down to:
•	 managing location access,
•	 wayfinding,
•	 delivering personalized content that drive
the sales funnel,
•	 facilitating payments,
•	 tracking key assets (including products,
consumers, and employees),
•	 enabling on-location staff, and
•	 gathering new insights from on-site activity.
Regaining Relevance
The digital transformation of locations into
smart places presents an opportunity for
legacy brands invested in real estate (“location
brands”) to deliver omni-channel customer
experiences online-only brands can’t. In
retail, location brands still have time to slow
revenue lost to online competitors, as 85% of
all purchases still occur in stores vs. online.2
Aware of this consumer preference and the
opportunities it presents, online retailers like
Warby Parker3 are opening bricks-and-mortar
stores to provide customers holistic shopping
options, adding pressure to location brands
to act.
Challenges Ahead
The digital transformation of location is not
without substantial challenges that will slow
adoption. Location brands planning this
evolution of place will have to face hurdles,
such as developing new internal team skill
sets, tackling consumer privacy concerns,
operating in an early market, orchestrating
complex data connections, and navigating
the uncertainty that comes with making
capital investments in quickly evolving
smart place technologies.		 	
3
4
EVOLVING TO
SMART PLACES
By offering better convenience and
abundant product choices, e-commerce has
slowly chipped revenue away from brands
invested in physical locations. In an effort
to stay afloat, location brands in retail, for
example, have taken on significant debt.4
Mounting debt coupled with the snail’s pace
of technology deployment to support the
digital transformation of their locations has
challenged location brands’ attempts
to compete.
While e-commerce has largely replaced the
creation, distribution, and use of products
easily digitized (like music and news), it has
less of a foothold on physical products that
consumers still crave to touch and feel before
buying. Until now, location brands have had
few options to take advantage of this weakness
and respond to the needs of connected
consumers who bounce between both online
and offline worlds. To attract consumers to
their physical location, they have deployed
technology focused on digital advertising,
websites, and apps. They have also invested in
early precursors to smart place technologies
— such as door hinge sensors and security
video monitoring — that focus on improving
the efficiency and convenience of payments,
managing inventory, and increasing security.
But now, both the shrinking footprint and
expense of consumer electronics technology
(epitomized by IoT) has made it possible for
location brands to use smart place technology
to improve CX in ways that online-only
brands can’t.
This evolution toward smart places represents
an exciting opportunity for location brands
— and many are taking the plunge. Industry
firm Gartner expects significant growth in
smart place deployments. It estimates that
the market for indoor location platforms and
services could grow from $7.2 billion in 2017 to
$12.5 billion by 20205. Wireless Registry, a kind
of search engine for detecting IoT devices,
measured a doubling of signals from these
devices in a three-month period.6 Consumer
personal use of IoT devices — as well as
increased use of smart place tech in public
and private spaces — is creating a data rich
environment and new use cases that location
brands can use to their competitive advantage.
5
Designing Smart Places
When designing smart places, location brands
must consider a complex array of devices,
use cases, and data management options.
Technology might range from tracking devices
placed directly in front of a customer — e.g.,
a smart shelf to track product inventory — to
a location brand’s data center. That range,
combined with the nascent IoT market and
shifting industry standards, complicate the
design of smart places.
Some device manufacturers rely on
continuous network connections to cloud or
other remote analytical engines, while others
favor pushing as much computing power on
location as possible. In some cases, the choice
of where compute power resides is dependent
on a location brand’s security and privacy
concerns. For example, telling a consumer
that the location they are in is monitored but
not “shared on the Internet” may increasingly
be a way to lessen consumer privacy fears but
also a way for brands to mitigate the damage
they could experience if massive amounts of
centralized consumer tracking and behavior
data were to be hacked and released (or held
at ransom, as is increasingly the case today7).
Smart Place Devices and Use Cases
As a technology in its early phase, smart place
devices vary widely and are produced by a
wide array of manufacturers — from start-
ups to today’s leading enterprise technology
companies. Location brands can choose
among solutions ranging from simple, single-
use case devices to complex, integrated
systems of smart place technology. To decide
what approach to smart place design makes
the most sense to them, location brands
should focus on the use cases with the
greatest potential. While these use cases are
quickly evolving, we found that most fall into
one of seven general categories. Common
among them is a thread that starts with
tracking activity, understanding behavior,
and using both to deliver the most relevant
experience to customers
on location.
Ad

Recommended

[REPORT PREVIEW] The AI Maturity Playbook: Five Pillars of Enterprise Success
[REPORT PREVIEW] The AI Maturity Playbook: Five Pillars of Enterprise Success[REPORT PREVIEW] The AI Maturity Playbook: Five Pillars of Enterprise Success
[REPORT PREVIEW] The AI Maturity Playbook: Five Pillars of Enterprise SuccessAltimeter, a Prophet Company
 
[Report] Consumer Perceptions of Privacy in the Internet of Things
[Report] Consumer Perceptions of Privacy in the Internet of Things[Report] Consumer Perceptions of Privacy in the Internet of Things
[Report] Consumer Perceptions of Privacy in the Internet of ThingsAltimeter, a Prophet Company
 
Fjord Trends 2020: Emerging Trends in Business | Accenture
Fjord Trends 2020: Emerging Trends in Business | AccentureFjord Trends 2020: Emerging Trends in Business | Accenture
Fjord Trends 2020: Emerging Trends in Business | Accentureaccenture
 
The Robot and I: How New Digital Technologies Are Making Smart People and Bus...
The Robot and I: How New Digital Technologies Are Making Smart People and Bus...The Robot and I: How New Digital Technologies Are Making Smart People and Bus...
The Robot and I: How New Digital Technologies Are Making Smart People and Bus...Cognizant
 
Apps for the Connected World: Supercharge Customer Data with Code Halos
Apps for the Connected World: Supercharge Customer Data with Code HalosApps for the Connected World: Supercharge Customer Data with Code Halos
Apps for the Connected World: Supercharge Customer Data with Code HalosCognizant
 

More Related Content

What's hot

Data vs Hunch - Lecture at Hyper Island 2015
Data vs Hunch - Lecture at Hyper Island 2015Data vs Hunch - Lecture at Hyper Island 2015
Data vs Hunch - Lecture at Hyper Island 2015Nils Mork-Ulnes
 
Design thinking: An approach to innovation that scales.
Design thinking:  An approach to innovation that scales. Design thinking:  An approach to innovation that scales.
Design thinking: An approach to innovation that scales. Infosys Consulting
 
Disrupting Reality: Taking Virtual & Augmented Reality to the Enterprise
Disrupting Reality: Taking Virtual & Augmented Reality to the EnterpriseDisrupting Reality: Taking Virtual & Augmented Reality to the Enterprise
Disrupting Reality: Taking Virtual & Augmented Reality to the EnterpriseCognizant
 
The Future Shape of Digital | Chartered Institute of Marketing
The Future Shape of Digital | Chartered Institute of MarketingThe Future Shape of Digital | Chartered Institute of Marketing
The Future Shape of Digital | Chartered Institute of MarketingiStrategy
 
The future of bank branches coordinating physical with digital capgemini co...
The future of bank branches coordinating physical with digital   capgemini co...The future of bank branches coordinating physical with digital   capgemini co...
The future of bank branches coordinating physical with digital capgemini co...Rick Bouter
 
Exactly Who Are Your Customers?
Exactly Who Are Your Customers?Exactly Who Are Your Customers?
Exactly Who Are Your Customers?Cognizant
 
Analyze The Effectiveness Of Atl & Btl Activities Practiced By Broadband O…
Analyze The Effectiveness Of Atl & Btl Activities Practiced By Broadband O…Analyze The Effectiveness Of Atl & Btl Activities Practiced By Broadband O…
Analyze The Effectiveness Of Atl & Btl Activities Practiced By Broadband O…Holostik India Ltd.
 
Digital Engineering: Combining Computer Science with Social Science to Transl...
Digital Engineering: Combining Computer Science with Social Science to Transl...Digital Engineering: Combining Computer Science with Social Science to Transl...
Digital Engineering: Combining Computer Science with Social Science to Transl...Cognizant
 
The 3 Biggest Digital Marketing Developments For 2016 | Extreme Connectivity ...
The 3 Biggest Digital Marketing Developments For 2016 | Extreme Connectivity ...The 3 Biggest Digital Marketing Developments For 2016 | Extreme Connectivity ...
The 3 Biggest Digital Marketing Developments For 2016 | Extreme Connectivity ...Bastiaan Neurink
 
Taking the Digital Pulse: Why Healthcare Providers Need an Urgent Digital Che...
Taking the Digital Pulse: Why Healthcare Providers Need an Urgent Digital Che...Taking the Digital Pulse: Why Healthcare Providers Need an Urgent Digital Che...
Taking the Digital Pulse: Why Healthcare Providers Need an Urgent Digital Che...Capgemini
 
The upwardly mobile enterprise
The upwardly mobile enterpriseThe upwardly mobile enterprise
The upwardly mobile enterpriseIBM Software India
 
Guide to Mobile Healthcare Technology
Guide to Mobile Healthcare TechnologyGuide to Mobile Healthcare Technology
Guide to Mobile Healthcare TechnologySamsung Business USA
 
Enhance CX (Customer Experience) / LSC Digital
Enhance CX (Customer Experience) / LSC DigitalEnhance CX (Customer Experience) / LSC Digital
Enhance CX (Customer Experience) / LSC DigitalRick VARGAS
 
Harbor Research - The Internet of Things Meets the Internet of People
Harbor Research - The Internet of Things Meets the Internet of PeopleHarbor Research - The Internet of Things Meets the Internet of People
Harbor Research - The Internet of Things Meets the Internet of PeopleHarbor Research
 
Accenture Tech Vision 2020 - Trend 1
Accenture Tech Vision 2020 - Trend 1Accenture Tech Vision 2020 - Trend 1
Accenture Tech Vision 2020 - Trend 1accenture
 
What Makes Great Infographics
What Makes Great InfographicsWhat Makes Great Infographics
What Makes Great InfographicsSlideShare
 
Social Trends Report 2013
Social Trends Report 2013Social Trends Report 2013
Social Trends Report 2013Brett Hurt
 
Design to Disrupt - Blockchain: cryptoplatform for a frictionless economy
Design to Disrupt - Blockchain: cryptoplatform for a frictionless economyDesign to Disrupt - Blockchain: cryptoplatform for a frictionless economy
Design to Disrupt - Blockchain: cryptoplatform for a frictionless economyRick Bouter
 

What's hot (19)

Data vs Hunch - Lecture at Hyper Island 2015
Data vs Hunch - Lecture at Hyper Island 2015Data vs Hunch - Lecture at Hyper Island 2015
Data vs Hunch - Lecture at Hyper Island 2015
 
Design thinking: An approach to innovation that scales.
Design thinking:  An approach to innovation that scales. Design thinking:  An approach to innovation that scales.
Design thinking: An approach to innovation that scales.
 
Disrupting Reality: Taking Virtual & Augmented Reality to the Enterprise
Disrupting Reality: Taking Virtual & Augmented Reality to the EnterpriseDisrupting Reality: Taking Virtual & Augmented Reality to the Enterprise
Disrupting Reality: Taking Virtual & Augmented Reality to the Enterprise
 
The Future Shape of Digital | Chartered Institute of Marketing
The Future Shape of Digital | Chartered Institute of MarketingThe Future Shape of Digital | Chartered Institute of Marketing
The Future Shape of Digital | Chartered Institute of Marketing
 
The future of bank branches coordinating physical with digital capgemini co...
The future of bank branches coordinating physical with digital   capgemini co...The future of bank branches coordinating physical with digital   capgemini co...
The future of bank branches coordinating physical with digital capgemini co...
 
Exactly Who Are Your Customers?
Exactly Who Are Your Customers?Exactly Who Are Your Customers?
Exactly Who Are Your Customers?
 
Analyze The Effectiveness Of Atl & Btl Activities Practiced By Broadband O…
Analyze The Effectiveness Of Atl & Btl Activities Practiced By Broadband O…Analyze The Effectiveness Of Atl & Btl Activities Practiced By Broadband O…
Analyze The Effectiveness Of Atl & Btl Activities Practiced By Broadband O…
 
Digital Engineering: Combining Computer Science with Social Science to Transl...
Digital Engineering: Combining Computer Science with Social Science to Transl...Digital Engineering: Combining Computer Science with Social Science to Transl...
Digital Engineering: Combining Computer Science with Social Science to Transl...
 
The 3 Biggest Digital Marketing Developments For 2016 | Extreme Connectivity ...
The 3 Biggest Digital Marketing Developments For 2016 | Extreme Connectivity ...The 3 Biggest Digital Marketing Developments For 2016 | Extreme Connectivity ...
The 3 Biggest Digital Marketing Developments For 2016 | Extreme Connectivity ...
 
Taking the Digital Pulse: Why Healthcare Providers Need an Urgent Digital Che...
Taking the Digital Pulse: Why Healthcare Providers Need an Urgent Digital Che...Taking the Digital Pulse: Why Healthcare Providers Need an Urgent Digital Che...
Taking the Digital Pulse: Why Healthcare Providers Need an Urgent Digital Che...
 
The upwardly mobile enterprise
The upwardly mobile enterpriseThe upwardly mobile enterprise
The upwardly mobile enterprise
 
Guide to Mobile Healthcare Technology
Guide to Mobile Healthcare TechnologyGuide to Mobile Healthcare Technology
Guide to Mobile Healthcare Technology
 
The Rise of the Mobile Empire
The Rise of the Mobile EmpireThe Rise of the Mobile Empire
The Rise of the Mobile Empire
 
Enhance CX (Customer Experience) / LSC Digital
Enhance CX (Customer Experience) / LSC DigitalEnhance CX (Customer Experience) / LSC Digital
Enhance CX (Customer Experience) / LSC Digital
 
Harbor Research - The Internet of Things Meets the Internet of People
Harbor Research - The Internet of Things Meets the Internet of PeopleHarbor Research - The Internet of Things Meets the Internet of People
Harbor Research - The Internet of Things Meets the Internet of People
 
Accenture Tech Vision 2020 - Trend 1
Accenture Tech Vision 2020 - Trend 1Accenture Tech Vision 2020 - Trend 1
Accenture Tech Vision 2020 - Trend 1
 
What Makes Great Infographics
What Makes Great InfographicsWhat Makes Great Infographics
What Makes Great Infographics
 
Social Trends Report 2013
Social Trends Report 2013Social Trends Report 2013
Social Trends Report 2013
 
Design to Disrupt - Blockchain: cryptoplatform for a frictionless economy
Design to Disrupt - Blockchain: cryptoplatform for a frictionless economyDesign to Disrupt - Blockchain: cryptoplatform for a frictionless economy
Design to Disrupt - Blockchain: cryptoplatform for a frictionless economy
 

Similar to [REPORT PREVIEW] Smart Places: The Digital Transformation of Location

The marketing opportunities in the internet of things (iot)
The marketing opportunities in the internet of things (iot)The marketing opportunities in the internet of things (iot)
The marketing opportunities in the internet of things (iot)OgilvyOne Worldwide
 
IoT and the Payments Industry
IoT and the Payments IndustryIoT and the Payments Industry
IoT and the Payments IndustryMichael Navarrete
 
Internet Of Things From Strategy To Action
Internet Of Things From Strategy To ActionInternet Of Things From Strategy To Action
Internet Of Things From Strategy To ActionBryan K. O'Rourke
 
Internet of Things: From Strategy to Action: Driving IoT to Industrial Scale
Internet of Things: From Strategy to Action: Driving IoT to Industrial ScaleInternet of Things: From Strategy to Action: Driving IoT to Industrial Scale
Internet of Things: From Strategy to Action: Driving IoT to Industrial ScaleCognizant
 
How to Ride the Smart Home Wave
How to Ride the Smart Home WaveHow to Ride the Smart Home Wave
How to Ride the Smart Home WaveJames Brewin
 
HeathWallace_Mobile_Whitepaper_2015
HeathWallace_Mobile_Whitepaper_2015HeathWallace_Mobile_Whitepaper_2015
HeathWallace_Mobile_Whitepaper_2015Rory Yates
 
The Internet of Us: Why Human Experience Is Vital to Building Useful IoT Appl...
The Internet of Us: Why Human Experience Is Vital to Building Useful IoT Appl...The Internet of Us: Why Human Experience Is Vital to Building Useful IoT Appl...
The Internet of Us: Why Human Experience Is Vital to Building Useful IoT Appl...Cognizant
 
Digital transformation in the manufacturing industry
Digital transformation in the manufacturing industryDigital transformation in the manufacturing industry
Digital transformation in the manufacturing industryBenji Harrison
 
The Internet of Things: P&C Carriers & the Power of Digital
The Internet of Things: P&C Carriers & the Power of DigitalThe Internet of Things: P&C Carriers & the Power of Digital
The Internet of Things: P&C Carriers & the Power of DigitalCognizant
 
A Guide To The Internet Of Things
A Guide To The Internet Of ThingsA Guide To The Internet Of Things
A Guide To The Internet Of ThingsBryan K. O'Rourke
 
Wearable Devices: The Next Big Thing in CRM
Wearable Devices: The Next Big Thing in CRMWearable Devices: The Next Big Thing in CRM
Wearable Devices: The Next Big Thing in CRMCognizant
 
Exciting it trends in 2015 why you should consider shifting and upgrading yo...
Exciting it trends in 2015  why you should consider shifting and upgrading yo...Exciting it trends in 2015  why you should consider shifting and upgrading yo...
Exciting it trends in 2015 why you should consider shifting and upgrading yo...lithanhall
 
CH_004_APPLICATIONS_OF_IOT.pptx
CH_004_APPLICATIONS_OF_IOT.pptxCH_004_APPLICATIONS_OF_IOT.pptx
CH_004_APPLICATIONS_OF_IOT.pptxvidhanPoddar1
 
Deep Learning Market.pdf
Deep Learning Market.pdfDeep Learning Market.pdf
Deep Learning Market.pdftechtomorrow570
 
ACMPaperFinalDraft.docx (5)
ACMPaperFinalDraft.docx (5)ACMPaperFinalDraft.docx (5)
ACMPaperFinalDraft.docx (5)scomes
 
Designing for Manufacturing's 'Internet of Things'
Designing for Manufacturing's 'Internet of Things'Designing for Manufacturing's 'Internet of Things'
Designing for Manufacturing's 'Internet of Things'Cognizant
 
Smart applications smart platforms, security, processes and interactions
Smart applications   smart platforms, security, processes and interactionsSmart applications   smart platforms, security, processes and interactions
Smart applications smart platforms, security, processes and interactionsBellaRobert139
 
IOT Environment & Business Value
IOT Environment & Business ValueIOT Environment & Business Value
IOT Environment & Business ValueMahua Chatterjee
 

Similar to [REPORT PREVIEW] Smart Places: The Digital Transformation of Location (20)

The marketing opportunities in the internet of things (iot)
The marketing opportunities in the internet of things (iot)The marketing opportunities in the internet of things (iot)
The marketing opportunities in the internet of things (iot)
 
IoT and the Payments Industry
IoT and the Payments IndustryIoT and the Payments Industry
IoT and the Payments Industry
 
Internet Of Things From Strategy To Action
Internet Of Things From Strategy To ActionInternet Of Things From Strategy To Action
Internet Of Things From Strategy To Action
 
Internet of Things: From Strategy to Action: Driving IoT to Industrial Scale
Internet of Things: From Strategy to Action: Driving IoT to Industrial ScaleInternet of Things: From Strategy to Action: Driving IoT to Industrial Scale
Internet of Things: From Strategy to Action: Driving IoT to Industrial Scale
 
How to Ride the Smart Home Wave
How to Ride the Smart Home WaveHow to Ride the Smart Home Wave
How to Ride the Smart Home Wave
 
HeathWallace_Mobile_Whitepaper_2015
HeathWallace_Mobile_Whitepaper_2015HeathWallace_Mobile_Whitepaper_2015
HeathWallace_Mobile_Whitepaper_2015
 
The Internet of Us: Why Human Experience Is Vital to Building Useful IoT Appl...
The Internet of Us: Why Human Experience Is Vital to Building Useful IoT Appl...The Internet of Us: Why Human Experience Is Vital to Building Useful IoT Appl...
The Internet of Us: Why Human Experience Is Vital to Building Useful IoT Appl...
 
Digital transformation in the manufacturing industry
Digital transformation in the manufacturing industryDigital transformation in the manufacturing industry
Digital transformation in the manufacturing industry
 
The Internet of Things: P&C Carriers & the Power of Digital
The Internet of Things: P&C Carriers & the Power of DigitalThe Internet of Things: P&C Carriers & the Power of Digital
The Internet of Things: P&C Carriers & the Power of Digital
 
A Guide To The Internet Of Things
A Guide To The Internet Of ThingsA Guide To The Internet Of Things
A Guide To The Internet Of Things
 
Wearable Devices: The Next Big Thing in CRM
Wearable Devices: The Next Big Thing in CRMWearable Devices: The Next Big Thing in CRM
Wearable Devices: The Next Big Thing in CRM
 
Exciting it trends in 2015 why you should consider shifting and upgrading yo...
Exciting it trends in 2015  why you should consider shifting and upgrading yo...Exciting it trends in 2015  why you should consider shifting and upgrading yo...
Exciting it trends in 2015 why you should consider shifting and upgrading yo...
 
Wearable Technology | Towards a multidisciplinary approach - Beecham Research
Wearable Technology | Towards a multidisciplinary approach - Beecham ResearchWearable Technology | Towards a multidisciplinary approach - Beecham Research
Wearable Technology | Towards a multidisciplinary approach - Beecham Research
 
CH_004_APPLICATIONS_OF_IOT.pptx
CH_004_APPLICATIONS_OF_IOT.pptxCH_004_APPLICATIONS_OF_IOT.pptx
CH_004_APPLICATIONS_OF_IOT.pptx
 
Deep Learning Market.pdf
Deep Learning Market.pdfDeep Learning Market.pdf
Deep Learning Market.pdf
 
ACMPaperFinalDraft.docx (5)
ACMPaperFinalDraft.docx (5)ACMPaperFinalDraft.docx (5)
ACMPaperFinalDraft.docx (5)
 
Designing for Manufacturing's 'Internet of Things'
Designing for Manufacturing's 'Internet of Things'Designing for Manufacturing's 'Internet of Things'
Designing for Manufacturing's 'Internet of Things'
 
Smart applications smart platforms, security, processes and interactions
Smart applications   smart platforms, security, processes and interactionsSmart applications   smart platforms, security, processes and interactions
Smart applications smart platforms, security, processes and interactions
 
Article_6
Article_6Article_6
Article_6
 
IOT Environment & Business Value
IOT Environment & Business ValueIOT Environment & Business Value
IOT Environment & Business Value
 

More from Altimeter, a Prophet Company

[REPORT PREVIEW] Employee Adoption of Collaboration Tools in 2018
[REPORT PREVIEW] Employee Adoption of Collaboration Tools in 2018[REPORT PREVIEW] Employee Adoption of Collaboration Tools in 2018
[REPORT PREVIEW] Employee Adoption of Collaboration Tools in 2018Altimeter, a Prophet Company
 
Experience Strategy: Connecting Customer Experience to Business Strategy [REP...
Experience Strategy: Connecting Customer Experience to Business Strategy [REP...Experience Strategy: Connecting Customer Experience to Business Strategy [REP...
Experience Strategy: Connecting Customer Experience to Business Strategy [REP...Altimeter, a Prophet Company
 
[RESEARCH REPORT PREVIEW] Creating a Customer-First Web Experience
[RESEARCH REPORT PREVIEW] Creating a Customer-First Web Experience[RESEARCH REPORT PREVIEW] Creating a Customer-First Web Experience
[RESEARCH REPORT PREVIEW] Creating a Customer-First Web ExperienceAltimeter, a Prophet Company
 
The Race to 2021: The State of Autonomous Vehicles and a "Who's Who" of Indus...
The Race to 2021: The State of Autonomous Vehicles and a "Who's Who" of Indus...The Race to 2021: The State of Autonomous Vehicles and a "Who's Who" of Indus...
The Race to 2021: The State of Autonomous Vehicles and a "Who's Who" of Indus...Altimeter, a Prophet Company
 
[RESEARCH REPORT] The 2016 State of Digital Transformation
[RESEARCH REPORT] The 2016 State of Digital Transformation[RESEARCH REPORT] The 2016 State of Digital Transformation
[RESEARCH REPORT] The 2016 State of Digital TransformationAltimeter, a Prophet Company
 
Social Employee Advocacy: Tapping into the Power of an Engaged Social Workforce
Social Employee Advocacy: Tapping into the Power of an Engaged Social WorkforceSocial Employee Advocacy: Tapping into the Power of an Engaged Social Workforce
Social Employee Advocacy: Tapping into the Power of an Engaged Social WorkforceAltimeter, a Prophet Company
 
The OPPOSITE FRAMEWORK: 8 Success Factors for Digital Transformation
The OPPOSITE FRAMEWORK: 8 Success Factors for Digital TransformationThe OPPOSITE FRAMEWORK: 8 Success Factors for Digital Transformation
The OPPOSITE FRAMEWORK: 8 Success Factors for Digital TransformationAltimeter, a Prophet Company
 
The Future of Music: What Every Business Can Learn From The State of The Musi...
The Future of Music: What Every Business Can Learn From The State of The Musi...The Future of Music: What Every Business Can Learn From The State of The Musi...
The Future of Music: What Every Business Can Learn From The State of The Musi...Altimeter, a Prophet Company
 
[Slides] Four Steps Brands Can Take to Design Internet of Things Experiences
[Slides] Four Steps Brands Can Take to Design Internet of Things Experiences[Slides] Four Steps Brands Can Take to Design Internet of Things Experiences
[Slides] Four Steps Brands Can Take to Design Internet of Things ExperiencesAltimeter, a Prophet Company
 

More from Altimeter, a Prophet Company (20)

[REPORT PREVIEW] Employee Adoption of Collaboration Tools in 2018
[REPORT PREVIEW] Employee Adoption of Collaboration Tools in 2018[REPORT PREVIEW] Employee Adoption of Collaboration Tools in 2018
[REPORT PREVIEW] Employee Adoption of Collaboration Tools in 2018
 
[REPORT PREVIEW] The Customer Experience of AI
[REPORT PREVIEW] The Customer Experience of AI[REPORT PREVIEW] The Customer Experience of AI
[REPORT PREVIEW] The Customer Experience of AI
 
Experience Strategy: Connecting Customer Experience to Business Strategy [REP...
Experience Strategy: Connecting Customer Experience to Business Strategy [REP...Experience Strategy: Connecting Customer Experience to Business Strategy [REP...
Experience Strategy: Connecting Customer Experience to Business Strategy [REP...
 
The Conversational Business [REPORT PREVIEW]
The Conversational Business [REPORT PREVIEW]The Conversational Business [REPORT PREVIEW]
The Conversational Business [REPORT PREVIEW]
 
[RESEARCH REPORT PREVIEW] Creating a Customer-First Web Experience
[RESEARCH REPORT PREVIEW] Creating a Customer-First Web Experience[RESEARCH REPORT PREVIEW] Creating a Customer-First Web Experience
[RESEARCH REPORT PREVIEW] Creating a Customer-First Web Experience
 
[REPORT PREVIEW] The Transformation of Selling
[REPORT PREVIEW] The Transformation of Selling[REPORT PREVIEW] The Transformation of Selling
[REPORT PREVIEW] The Transformation of Selling
 
[REPORT PREVIEW] The Age of AI
[REPORT PREVIEW] The Age of AI[REPORT PREVIEW] The Age of AI
[REPORT PREVIEW] The Age of AI
 
The Race to 2021: The State of Autonomous Vehicles and a "Who's Who" of Indus...
The Race to 2021: The State of Autonomous Vehicles and a "Who's Who" of Indus...The Race to 2021: The State of Autonomous Vehicles and a "Who's Who" of Indus...
The Race to 2021: The State of Autonomous Vehicles and a "Who's Who" of Indus...
 
The 2016 State of Social Business
The 2016 State of Social BusinessThe 2016 State of Social Business
The 2016 State of Social Business
 
The 2016 State of Digital Content
The 2016 State of Digital ContentThe 2016 State of Digital Content
The 2016 State of Digital Content
 
Crafting a Digital Strategy
Crafting a Digital StrategyCrafting a Digital Strategy
Crafting a Digital Strategy
 
[RESEARCH REPORT] The 2016 State of Digital Transformation
[RESEARCH REPORT] The 2016 State of Digital Transformation[RESEARCH REPORT] The 2016 State of Digital Transformation
[RESEARCH REPORT] The 2016 State of Digital Transformation
 
[NEW RESEARCH] Crafting A Digital Strategy
[NEW RESEARCH] Crafting A Digital Strategy[NEW RESEARCH] Crafting A Digital Strategy
[NEW RESEARCH] Crafting A Digital Strategy
 
The Six Stages of Digital Transformation
The Six Stages of Digital TransformationThe Six Stages of Digital Transformation
The Six Stages of Digital Transformation
 
Social Employee Advocacy: Tapping into the Power of an Engaged Social Workforce
Social Employee Advocacy: Tapping into the Power of an Engaged Social WorkforceSocial Employee Advocacy: Tapping into the Power of an Engaged Social Workforce
Social Employee Advocacy: Tapping into the Power of an Engaged Social Workforce
 
[NEW RESEARCH] Social Media Employee Advocacy
[NEW RESEARCH] Social Media Employee Advocacy [NEW RESEARCH] Social Media Employee Advocacy
[NEW RESEARCH] Social Media Employee Advocacy
 
The OPPOSITE FRAMEWORK: 8 Success Factors for Digital Transformation
The OPPOSITE FRAMEWORK: 8 Success Factors for Digital TransformationThe OPPOSITE FRAMEWORK: 8 Success Factors for Digital Transformation
The OPPOSITE FRAMEWORK: 8 Success Factors for Digital Transformation
 
The Future of Music: What Every Business Can Learn From The State of The Musi...
The Future of Music: What Every Business Can Learn From The State of The Musi...The Future of Music: What Every Business Can Learn From The State of The Musi...
The Future of Music: What Every Business Can Learn From The State of The Musi...
 
[INFOGRAPHIC] 2015 State of Social Business
[INFOGRAPHIC] 2015 State of Social Business[INFOGRAPHIC] 2015 State of Social Business
[INFOGRAPHIC] 2015 State of Social Business
 
[Slides] Four Steps Brands Can Take to Design Internet of Things Experiences
[Slides] Four Steps Brands Can Take to Design Internet of Things Experiences[Slides] Four Steps Brands Can Take to Design Internet of Things Experiences
[Slides] Four Steps Brands Can Take to Design Internet of Things Experiences
 

Recently uploaded

SARomics Biostructures 2024 Company Presentation
SARomics Biostructures 2024 Company PresentationSARomics Biostructures 2024 Company Presentation
SARomics Biostructures 2024 Company PresentationSalam Al-Karadaghi
 
publicpolicy-130621235359-phpapp02 2.pdf
publicpolicy-130621235359-phpapp02 2.pdfpublicpolicy-130621235359-phpapp02 2.pdf
publicpolicy-130621235359-phpapp02 2.pdfmmople
 
Pernod Ricard presentation at CAGNY 2024
Pernod Ricard presentation at CAGNY 2024Pernod Ricard presentation at CAGNY 2024
Pernod Ricard presentation at CAGNY 2024Neil Kimberley
 
5 Common Writing Mistakes Infographic.pdf
5 Common Writing Mistakes Infographic.pdf5 Common Writing Mistakes Infographic.pdf
5 Common Writing Mistakes Infographic.pdfRemar Barquilla
 
FICCI Monthly Bulletin February 2024.pdf
FICCI  Monthly Bulletin February 2024.pdfFICCI  Monthly Bulletin February 2024.pdf
FICCI Monthly Bulletin February 2024.pdfsubarnamostafa1
 
BeMetals Presentation_February_15_2024.pdf
BeMetals Presentation_February_15_2024.pdfBeMetals Presentation_February_15_2024.pdf
BeMetals Presentation_February_15_2024.pdfDerekIwanaka1
 
Actionable Fundraising Planning - Slide Presentation.pptx.pdf
Actionable Fundraising Planning - Slide Presentation.pptx.pdfActionable Fundraising Planning - Slide Presentation.pptx.pdf
Actionable Fundraising Planning - Slide Presentation.pptx.pdfBloomerang
 
Research Showcase 2024 final presentation slides
Research Showcase 2024 final presentation slidesResearch Showcase 2024 final presentation slides
Research Showcase 2024 final presentation slidesenterpriseresearchcentre
 
Questions to Answer to Prepare for Zero Budget Marketing .docx
Questions to Answer to Prepare for Zero Budget Marketing .docxQuestions to Answer to Prepare for Zero Budget Marketing .docx
Questions to Answer to Prepare for Zero Budget Marketing .docxPrecious Mvulane CA (SA),RA
 
edition features a handful of the Brands Of Honour- 2024.pdf
edition features a handful of the Brands Of Honour- 2024.pdfedition features a handful of the Brands Of Honour- 2024.pdf
edition features a handful of the Brands Of Honour- 2024.pdfinsightssuccess2
 
Ch 11 Haunted Castle on Hallows Eve.pptx
Ch 11 Haunted Castle on Hallows Eve.pptxCh 11 Haunted Castle on Hallows Eve.pptx
Ch 11 Haunted Castle on Hallows Eve.pptxdeveloperarafat360
 
Trending Topics for events Presentation.pdf
Trending Topics for events Presentation.pdfTrending Topics for events Presentation.pdf
Trending Topics for events Presentation.pdfgaju619
 
Miller Coors Presentation at CAGNY Feb 2024
Miller Coors Presentation at CAGNY Feb 2024Miller Coors Presentation at CAGNY Feb 2024
Miller Coors Presentation at CAGNY Feb 2024Neil Kimberley
 
Zero Budget Marketing Strategy with KPIs for a Cleaning Detergent Training ...
Zero Budget Marketing  Strategy with KPIs for a Cleaning Detergent  Training ...Zero Budget Marketing  Strategy with KPIs for a Cleaning Detergent  Training ...
Zero Budget Marketing Strategy with KPIs for a Cleaning Detergent Training ...Precious Mvulane CA (SA),RA
 
Grevault battery storage system manufacturer
Grevault battery storage system manufacturerGrevault battery storage system manufacturer
Grevault battery storage system manufacturerGrevault
 
General Mills Presentation at CAGNY 2024
General Mills Presentation at CAGNY 2024General Mills Presentation at CAGNY 2024
General Mills Presentation at CAGNY 2024Neil Kimberley
 
SlideEgg_300445-Apple Inc(1).pptx case study
SlideEgg_300445-Apple Inc(1).pptx case studySlideEgg_300445-Apple Inc(1).pptx case study
SlideEgg_300445-Apple Inc(1).pptx case studyindobanglatradeinter
 

Recently uploaded (20)

SARomics Biostructures 2024 Company Presentation
SARomics Biostructures 2024 Company PresentationSARomics Biostructures 2024 Company Presentation
SARomics Biostructures 2024 Company Presentation
 
publicpolicy-130621235359-phpapp02 2.pdf
publicpolicy-130621235359-phpapp02 2.pdfpublicpolicy-130621235359-phpapp02 2.pdf
publicpolicy-130621235359-phpapp02 2.pdf
 
Pernod Ricard presentation at CAGNY 2024
Pernod Ricard presentation at CAGNY 2024Pernod Ricard presentation at CAGNY 2024
Pernod Ricard presentation at CAGNY 2024
 
5 Common Writing Mistakes Infographic.pdf
5 Common Writing Mistakes Infographic.pdf5 Common Writing Mistakes Infographic.pdf
5 Common Writing Mistakes Infographic.pdf
 
FICCI Monthly Bulletin February 2024.pdf
FICCI  Monthly Bulletin February 2024.pdfFICCI  Monthly Bulletin February 2024.pdf
FICCI Monthly Bulletin February 2024.pdf
 
Charlie Caldwell - Living Smart with AI.pdf
Charlie Caldwell - Living Smart with AI.pdfCharlie Caldwell - Living Smart with AI.pdf
Charlie Caldwell - Living Smart with AI.pdf
 
BeMetals Presentation_February_15_2024.pdf
BeMetals Presentation_February_15_2024.pdfBeMetals Presentation_February_15_2024.pdf
BeMetals Presentation_February_15_2024.pdf
 
Actionable Fundraising Planning - Slide Presentation.pptx.pdf
Actionable Fundraising Planning - Slide Presentation.pptx.pdfActionable Fundraising Planning - Slide Presentation.pptx.pdf
Actionable Fundraising Planning - Slide Presentation.pptx.pdf
 
Research Showcase 2024 final presentation slides
Research Showcase 2024 final presentation slidesResearch Showcase 2024 final presentation slides
Research Showcase 2024 final presentation slides
 
Questions to Answer to Prepare for Zero Budget Marketing .docx
Questions to Answer to Prepare for Zero Budget Marketing .docxQuestions to Answer to Prepare for Zero Budget Marketing .docx
Questions to Answer to Prepare for Zero Budget Marketing .docx
 
edition features a handful of the Brands Of Honour- 2024.pdf
edition features a handful of the Brands Of Honour- 2024.pdfedition features a handful of the Brands Of Honour- 2024.pdf
edition features a handful of the Brands Of Honour- 2024.pdf
 
Ch 11 Haunted Castle on Hallows Eve.pptx
Ch 11 Haunted Castle on Hallows Eve.pptxCh 11 Haunted Castle on Hallows Eve.pptx
Ch 11 Haunted Castle on Hallows Eve.pptx
 
Trending Topics for events Presentation.pdf
Trending Topics for events Presentation.pdfTrending Topics for events Presentation.pdf
Trending Topics for events Presentation.pdf
 
2024 Calendar-eXperience MattersThailand
2024 Calendar-eXperience MattersThailand2024 Calendar-eXperience MattersThailand
2024 Calendar-eXperience MattersThailand
 
Miller Coors Presentation at CAGNY Feb 2024
Miller Coors Presentation at CAGNY Feb 2024Miller Coors Presentation at CAGNY Feb 2024
Miller Coors Presentation at CAGNY Feb 2024
 
Zero Budget Marketing Strategy with KPIs for a Cleaning Detergent Training ...
Zero Budget Marketing  Strategy with KPIs for a Cleaning Detergent  Training ...Zero Budget Marketing  Strategy with KPIs for a Cleaning Detergent  Training ...
Zero Budget Marketing Strategy with KPIs for a Cleaning Detergent Training ...
 
Pan Dhoni - Modernizing Data And Analytics using AI.pdf
Pan Dhoni - Modernizing Data And Analytics using AI.pdfPan Dhoni - Modernizing Data And Analytics using AI.pdf
Pan Dhoni - Modernizing Data And Analytics using AI.pdf
 
Grevault battery storage system manufacturer
Grevault battery storage system manufacturerGrevault battery storage system manufacturer
Grevault battery storage system manufacturer
 
General Mills Presentation at CAGNY 2024
General Mills Presentation at CAGNY 2024General Mills Presentation at CAGNY 2024
General Mills Presentation at CAGNY 2024
 
SlideEgg_300445-Apple Inc(1).pptx case study
SlideEgg_300445-Apple Inc(1).pptx case studySlideEgg_300445-Apple Inc(1).pptx case study
SlideEgg_300445-Apple Inc(1).pptx case study
 

[REPORT PREVIEW] Smart Places: The Digital Transformation of Location

  • 1. SMART PLACES: The Digital Transformation of Location AUGUST 2018 BY ED TERPENING AND CHARLENE LI WITH AUBREY LITTLETON Includes input from brands, retailers, and technology companies RESEARCH REPORT PREVIEW VERSION
  • 2. 1 TABLE OF CONTENTS 2 EXECUTIVE SUMMARY 3 KEY FINDINGS 4 EVOLVING TO SMART PLACES 5 DESIGNING SMART PLACES 5 SMART PLACE DEVICES AND USE CASES 20 OPPORTUNITIES FOR SMART PLACE TECH ADOPTERS 22 CHALLENGES FACING LOCATION BRANDS PLANNING SMART PLACES 28 LOOKING FORWARD 30 ENDNOTES 33 METHODOLOGY 33 ACKNOWLEDGEMENTS 33 OPEN RESEARCH 33 PERMISSIONS 34 ABOUT US 35 HOW TO WORK WITH ALTIMETER
  • 3. 2 " " EXECUTIVE SUMMARY Technology continues to spread its impact on society and commerce in ways that disrupt how people and businesses interact. The growing adoption of Internet of Things (IoT) consumer electronics — such as smart thermostats and digital assistants — has paved the way for brands to use connected devices in their physical spaces too. The same sophisticated technology that powers “smart home” devices is slowly finding its way into stores, hospitals, and other public spaces, creating “smart places.” To compete with digital-only brands, location brands (i.e., brands that serve customers primarily in a physical space like a retail store or hospital) have invested in websites and mobile apps in ways that mimic their competitors while neglecting their most-prized asset: their real estate. As e-commerce giants like Amazon are now investing in brick-and-mortar, the battle for the customer has shifted to the ground, literally. Location brands in any industry can take the battle offline by investing in technology-rich locations that raise the bar for Customer Experience (CX). But as location brands adopt smart place technologies, they will need to balance the value of the consumer insights and operational efficiencies they stand to gain against the risk that their reputation might be harmed if consumers think their privacy is violated. Consumers still think physical spaces like retail stores are safe from the kind of tracking they experience online (e.g., through targeted advertising). While they might perceive online tracking as a somewhat abstract invasion of privacy, they might interpret that same level of tracking in a physical location as a more personal intrusion. The public is already shocked by the amount of personal data businesses collect online — and that is increasingly released through hacks. The growing number of physical locations rich with tracking technology will only add fuel to the growing privacy fire. For this report, we sought to understand the opportunities for location brands that invest in smart place technology and the barriers they face. While location brands can achieve many goals with smart place technology — e.g., increased revenue, efficiency, and safety — the focus of our research was on its use to improve CX. To that end, we interviewed early adopters, device makers, industry groups, and vendors who focus on CX management in physical locations. As we delved deeply into this emerging area, we found no dominant term defining the use of IoT devices in the service of location brand experience. To remain consistent with the “smart home” movement, we opted for the term “smart place,”1 which we define as: "A physical space — public or private, indoors or outdoors — where connected, sensing technology is used to gather insights into the actions, intent, and behavior of people in it to support customer experience. Smart places can be ‘active’ when people opt-in; ‘passive’ when people’s actions are tracked and their behavior intuited in an unobtrusive way or without their knowledge; or a combination of the two.” 2
  • 4. 3 " KEY FINDINGS Consumer IOT Bandwagon Smart, small, AI-assisted tech adopted by consumers as IoT wearables and smart home devices are finding their way into businesses in every industry — including retail, healthcare, and transportation — where brands serve customers. The growth of smart places will heighten consumer awareness of the tradeoffs between value of personalized experiences and privacy in public places. Market Maturity The technology market for smart place devices is early and, therefore, fragmented and complex. This tech ecosystem is broad — spanning personal consumer mobile devices, on-site sensing beacons, cloud-based AI and data systems, and systems that integrate on- site and enterprise customer data. Focused Use Cases The hundreds of devices we reviewed exposed many CX use cases, but they can be boiled down to: • managing location access, • wayfinding, • delivering personalized content that drive the sales funnel, • facilitating payments, • tracking key assets (including products, consumers, and employees), • enabling on-location staff, and • gathering new insights from on-site activity. Regaining Relevance The digital transformation of locations into smart places presents an opportunity for legacy brands invested in real estate (“location brands”) to deliver omni-channel customer experiences online-only brands can’t. In retail, location brands still have time to slow revenue lost to online competitors, as 85% of all purchases still occur in stores vs. online.2 Aware of this consumer preference and the opportunities it presents, online retailers like Warby Parker3 are opening bricks-and-mortar stores to provide customers holistic shopping options, adding pressure to location brands to act. Challenges Ahead The digital transformation of location is not without substantial challenges that will slow adoption. Location brands planning this evolution of place will have to face hurdles, such as developing new internal team skill sets, tackling consumer privacy concerns, operating in an early market, orchestrating complex data connections, and navigating the uncertainty that comes with making capital investments in quickly evolving smart place technologies. 3
  • 5. 4 EVOLVING TO SMART PLACES By offering better convenience and abundant product choices, e-commerce has slowly chipped revenue away from brands invested in physical locations. In an effort to stay afloat, location brands in retail, for example, have taken on significant debt.4 Mounting debt coupled with the snail’s pace of technology deployment to support the digital transformation of their locations has challenged location brands’ attempts to compete. While e-commerce has largely replaced the creation, distribution, and use of products easily digitized (like music and news), it has less of a foothold on physical products that consumers still crave to touch and feel before buying. Until now, location brands have had few options to take advantage of this weakness and respond to the needs of connected consumers who bounce between both online and offline worlds. To attract consumers to their physical location, they have deployed technology focused on digital advertising, websites, and apps. They have also invested in early precursors to smart place technologies — such as door hinge sensors and security video monitoring — that focus on improving the efficiency and convenience of payments, managing inventory, and increasing security. But now, both the shrinking footprint and expense of consumer electronics technology (epitomized by IoT) has made it possible for location brands to use smart place technology to improve CX in ways that online-only brands can’t. This evolution toward smart places represents an exciting opportunity for location brands — and many are taking the plunge. Industry firm Gartner expects significant growth in smart place deployments. It estimates that the market for indoor location platforms and services could grow from $7.2 billion in 2017 to $12.5 billion by 20205. Wireless Registry, a kind of search engine for detecting IoT devices, measured a doubling of signals from these devices in a three-month period.6 Consumer personal use of IoT devices — as well as increased use of smart place tech in public and private spaces — is creating a data rich environment and new use cases that location brands can use to their competitive advantage.
  • 6. 5 Designing Smart Places When designing smart places, location brands must consider a complex array of devices, use cases, and data management options. Technology might range from tracking devices placed directly in front of a customer — e.g., a smart shelf to track product inventory — to a location brand’s data center. That range, combined with the nascent IoT market and shifting industry standards, complicate the design of smart places. Some device manufacturers rely on continuous network connections to cloud or other remote analytical engines, while others favor pushing as much computing power on location as possible. In some cases, the choice of where compute power resides is dependent on a location brand’s security and privacy concerns. For example, telling a consumer that the location they are in is monitored but not “shared on the Internet” may increasingly be a way to lessen consumer privacy fears but also a way for brands to mitigate the damage they could experience if massive amounts of centralized consumer tracking and behavior data were to be hacked and released (or held at ransom, as is increasingly the case today7). Smart Place Devices and Use Cases As a technology in its early phase, smart place devices vary widely and are produced by a wide array of manufacturers — from start- ups to today’s leading enterprise technology companies. Location brands can choose among solutions ranging from simple, single- use case devices to complex, integrated systems of smart place technology. To decide what approach to smart place design makes the most sense to them, location brands should focus on the use cases with the greatest potential. While these use cases are quickly evolving, we found that most fall into one of seven general categories. Common among them is a thread that starts with tracking activity, understanding behavior, and using both to deliver the most relevant experience to customers on location.
  • 7. 6 Figure 1: Smart Places Track Assets and People and Intuit Consumer Behavior that Supports Personalized Customer Experience Smart Place Devices Ecosystem Location brands can count on a diverse range of connected, sensing devices to configure a smart place. Our research shows that most devices fall into one or more of these three categories: (1) devices that track, (2) that intuit behavior, or (3) that deliver experience. In a sign the market is evolving, we discovered that the use cases and applications smart place devices support often overlap significantly. SMART PLACE DEVICE ECOSYSTEM TRACK Parking Door & shelf sensors RFID Tags Smart Carts Beacons Visible Light Communications (VLC) INTUIT BEHAVIOR AI assisted video Listening devices Consumer devices DELIVER EXPERIENCE Consumer devices Smart carts Audio Assistants Augmented Reality Digital displays Automated checkout Although we’ve categorized these devices and developed a hierarchy for the categories that ultimately delivers on CX objectives, we realize some devices track, intuit behavior, and deliver experience as one integrated system (e.g., IBM Watson Retail7 or Intel’s Responsive Retail Platform8). 6
  • 8. 7 To better understand smart place tech options, we’ll explore the three categories of devices in detail. TRACKING The key advantage of a smart place is that it allows brands to know who and what is in it and their movements. Tracking devices in the following three categories play one of the most critical roles in the smart place technology ecosystem. FACILITY TRACKING These devices are planned into a location brand’s building architecture (starting just outside the location, in the parking lot) for energy efficiency, security, and, increasingly, tracking people and assets. They might include devices that manage access (like employee card readers at entrance doors) or that manage the environment like controlling a building’s temperature based on where people are in it. Figure 2: NEDAP Transform Canadian Libraries with Intelligent Shelves OBJECT TRACKING These devices track “objects” — whether customers, employees, or products — at the location. Like lighthouses, ceiling-mounted beacons mark a location with a broadcast signal that supports the equivalent of indoor GPS tracking. The range of a beacon transmitter can vary from a small area (5m radius) to an entire business location (inside and out). Mobile phones — or other devices like smart shopping carts — are capable of receiving beacon signals that can then be used to trigger events or simply collect location data actively (e.g., through branded mobile apps) or passively (e.g., by triangulating WiFi reception). 7