iBeacon: New Opportunities for Companies

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iBeacons are low-cost transmitters that can notify bluetooth devices of their exact presence down to centimeters. Kent Stones examines this micro-location concept, along with security concerns and several use cases, in order to kickstart thinking about innovative ways companies can use the technology.

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iBeacon: New Opportunities for Companies

  1. 1. iBeacon
  2. 2. 2.5 Quintillions bytes of data we create every day of data created within the last two years 90% It’s coming from: • Sensors • Posts • Transactions • Media • GPS • Phones • Cars • And lots more.... Speed & Connectivity Calculations from the brainiacs at IBM
  3. 3. Speed & Connectivity Meaning: Consumers have become addicted to connectivity and speed.
  4. 4. i B e a c o n What is iBeacon? Before answering that, what is a beacon? A new class of low-powered, low-cost transmitters that can notify nearby bluetooth devices of their presence. Not just presence, but precise distance down to centimeters (micro-location). Can be about the size of a quarter.
  5. 5. i B e a c o n What is iBeacon? Before answering that, what is a beacon? A new class of low-powered, low-cost transmitters that can notify nearby bluetooth devices of their presence. Not just presence, but precise distance down to centimeters (micro-location).
  6. 6. i B e a c o n What is iBeacon? Before answering that, what is a beacon? A new class of low-powered, low-cost transmitters that can notify nearby bluetooth devices of their presence. Not just presence, but precise distance down to centimeters (micro-location). Your order is ready! Lunch special today - $2.00 off You Pick Two It’s been two months since you bought running shoes.
  7. 7. First Critical Concept: Micro-location Geo-location with a very high level of granularity Apps are notified when the hosting device moves in and out of range of a beacon (which allows history to be recorded) “Hello, I am present.” “I hear you.” i B e a c o n
  8. 8. How does iBeacon identify itself? •Three hierarchical and customizable values ‣Proximity UUID (Company) ‣Major and Minor (Store and In-Store Location) ‣Internal identifier (customizable) •Distance ‣Immediate (less than 50 centimeters) ‣Near (between 50 centimeters and 2-5 meters) ‣Far (2-5 meters to 30-50 meters)
  9. 9. Second Critical Concept: Interaction The beacon signal enables interaction with some app functionality. It can be a specific action on a specific device at a specific time in a specific location. Hello, I am present at the entrance. App [communicating with its own server]: Kent just entered the store. He hasn’t been here in two months. When he walks by the donuts, offer him 50% off. He can’t resist. Beacons don’t track people, apps do. Beacons only transmit. They do not recieve or collect any signals from mobile devices. The device is where everything happens. i B e a c o n
  10. 10. iBeacon Features Mobile app automatic start Low energy consumption Beacons easy to deploy and will be cheap No internet required (but limited if not) Listening and broadcasting
  11. 11. http://youtu.be/sUIqfjpInxY Hardware
  12. 12. Concerns Security The information broadcasted by beacons is public - any app could use it. Organizations that desire exclusive use or prevent malicious hacking will need to employe an encryption layer, which adds complexity and cost. Privacy Will consumers be accepting of being monitored at every step in the store? Will they demand to know how their location (or other data) is used? Will consumers want to be bombarded with offers or information as they walk through any location or even city? Marc Wallace, Radius “iBeacons are powerful enablers for delivering new personalized services to customers. App providers leveraging iBeacon technology and the resulting proximity information have a responsibility to ensure that users are fully informed of these activities and aware of the opt-out options available to them.” i B e a c o n
  13. 13. iBeacon Use Cases
  14. 14. Retail •Contextualized Deals •Reminders •Product information •Shopper behavior •Online/Offline integration •Shopper engagement (content) •Large and small implementation •Others?
  15. 15. Other Opportunities •Museums and exhibitions •Mass transit •Healthcare •Sporting events •Parking •Restauruants •Smart home
  16. 16. Major League Baseball •Auto ticket barcode as approach •Map to seat as after entrace •Relevant stadium ammenities •Point card (automatic) •Coupons •Seat upgrades •Living museum •Heat maps (for the marketers) After installing MLB App
  17. 17. Macy’s Shopkick Test •Macy’s •Best Buy •Target •J.C. Penney •Kmart •American Eagle •Safeway •Giant Eagle •SXSW •CeBit •CES •MLB •NFL •NBA •McDonald’s •Coca-Cola •American Airlines http://www.shopkick.com/shopbeacon
  18. 18. Kent Stones Vice President of Account Planning Callahan Creek kstones@callahancreek.com @KentStones

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