IoT NFC Opportunity

THE FUTURE OF THE INTERNET OF
THINGS + NFC PRESENTATIONS
June 15 – 16, 2016
Dallas, TX, USA

THE NFC OPPORTUNITY
IN THE IOT
Frank Gillett, Forrester

The NFC Opportunity In The IoT
Frank E. Gillett, VP and Principal Analyst
@FrankGillett
June 15, 2016

© 2016 Forrester Research, Inc. Reproduction Prohibited 5
Agenda
› How does IoT help customers?
› What are the IoT use cases?
› How does IoT help with engagement?

Agenda

Image source: Associated Press (AP.org), picture taken by Michael Sohn
2005

Image source: Associated Press (AP.org), photo by Michael Sohn
2013

Image source: Associated Press (AP.org), photo by Michael Sohn
The mobile mind shift
The expectation that I can get
what I want in my immediate
context and moments of need

Infrastructure, cities, and agriculture
Source: October 31, 2013, “Mapping The
Connected World” report.

Buildings, equipment, homes, and gadgets
Source: October 31, 2013, “Mapping The
Connected World” report.

What is the Internet of Things?
Digital technology (software) that answers three questions
about the physical world...

2. What is happening?
Digital Sensors

3. What can I do?
Actions via software automation to switches, robots…
Or humans

1. What is this?
The Forgotten Question
Identity…
And any digital information about
the object

The three questions that IoT answers:
What is this?
What is happening?
What can I do?
1
2
3

Two Fundamental IoT Scenarios Emerge From Two
Different Business Stakeholders
See the “Brief: The Two Fundamental IoT Business Opportunities” Forrester report

The titles of IoT implementers are varied by type
Business
owner
examples
• Product design
• Product engineering
• Chief product officer
• Chief technology officer
• Chief Marketing officer
Customer product
• Line of business
• General manager
• Chief of operations
• Chief operations officer
Business process

All companies can use IoT for business process, but
only product companies can be makers of IoT products
Relevant
types of
companies
Only Product companies
(discrete manufacturing or consumable goods)
Customer product
All companies
Business process

IoT devices are very different by use case
IoT sensor
location
In multiple company assets, across a business
process, including a CX:
• Internal operations – ex. Manufacturing
• Customer-facing operations – ex. Retail store,
amusement park
Business process
At the customer’s point of use with a physical
product:
• In products – ex. Garage door opener
• On product dispensers – ex. Coffee maker
Customer product

The impact of IoT on customers is different by scenario
Direct
• Improves the CX with a specific physical
product at the point of use
Customer
impact
Indirect
• Improves the service experience of the customer
interacting with company ops
Customer productBusiness process

IoT usage is quite different in the two scenarios
Business
owner
examples
Relevant
types of
companies
Customer
impact
IoT sensor
location
• Product design
• Product engineering
• Chief product officer
• Chief technology officer
• Chief Marketing officer
Only Product companies
(discrete manufacturing or consumable goods)
At the customer’s point of use with a physical
product:
• In products – ex. Garage door opener
• On product dispensers – ex. Coffee maker
Direct
• Improves the CX with a specific physical
product at the point of use
Customer product
• Line of business
• General manager
• Chief of operations
• Chief operations officer
All companies
In multiple company assets, across a business
process, including a CX:
• Internal operations – ex. Manufacturing
• Customer-facing operations – ex. Retail store,
amusement park
Indirect
• Improves the service experience of the customer
interacting with company ops
Business process

Three levels IoT value propositions
BASED ON IMPROVED BUSINESS OUTCOMES
Innovate
new products
and services
Transform
customer
engagement
Optimize
physical assets
“We’re going from using the customer as a sensor find out about the product’s performance, to putting sensors in the product to learn about the customer’s experience”
- Russ Fadel, President of ThingWorx, a PTC company, at LiveWorx conference, May 2015

Agenda

Two types of IoT scenarios
IoT Maker
Connected Products
• Only companies that
manufacture a discrete or
consumable product
• Product or dispenser of
consumable
• OEMs in many markets,
including medical, industrial,
food, consumer products
IoT Operator
Connected Assets
• All companies operate
connected products or assets
for business operations or
processes
• Offices, hospitals, farms,
utilities, miners,
governments…

Two different types of IoT buyers
IoT Maker
› Product design, marketing,
and customer service staff
• Work with data from
connected products (IoT
Maker)
• Customer oriented people
with little techie knowledge
IoT Operator
› Business process and
operations staff
• Work with data from
connected assets (IoT
operator)
• Operations and business
process, not necessarily
technology or data geeks

Smart, connected products
› Incorporating connectivity and intelligence into
products or dispensers in industrial, commercial,
and consumer markets

B2B IoT use cases involve connected assets
Applications of IoT
• Security and surveillance • Industrial asset management
• Supply chain management • Smart products
• Inventory and warehouse • Smart home management
• Customer order/delivery tracking • Energy management
• Facility management • Fleet management
Source: October 31, 2013, “Mapping The Connected World” report.

Industrial asset management
› Monitoring and managing the location, condition,
and usage of industrial equipment and machinery

Energy management
› Monitoring, managing, and reporting usage of
water, electricity, and other energy sources

Fleet management
› Monitoring and managing the condition, location,
and usage of vehicle fleets

Inventory and warehouse
› Tracking inventory levels and managing
warehouse operations

Customer order/delivery tracking
› Enabling customer visibility into the status of
orders and deliveries

Supply chain management

Security & surveillance
› Monitoring of facilities and spaces for public safety
and commercial security purposes

Facility management
› Monitoring the design, construction, and operation
of structures and buildings, including HVAC and
lighting

Source: MM1, Forrester’s Business Technographics Networks And Telecommunications Survey, 2015
29%23%
Implemented/Expanding Planning to Implement in next 12 months
Enterprises*
Base: *1,755 Global technology business decision-makers (1,000+ employees)
Sums may shift slightly due to rounding
52%
Rapid enterprise adoption of IoT
Percent implemented or planning to implement in next 12 months

47%
52%
40%19%
23%
14%
28%
29%
26%
Overall
Enterprise
SMB
Using Planning
“What are your firm’s plan to adopt M2M/Internet of Things solutions or applications?”
Base: 337 Global telecommunications decision-makers (20+ employees)
Base: 1582 Global telecommunications decision-makers (20-999 employees)
Source: Forrester’s Global Business Technographic Network and Telecommunications Survey, 2015
31%
30%
33%
78%
82%
73%
Interested Total
=
=
=
Enterprises are more likely to be using IoT

Source: Forrester’s Global Business Technographics Network and Telecommunications Survey, 2015
“Which of the following IoT applications has/is your firm implemented/planning to implement?”
7%
7%
7%
8%
8%
8%
8%
8%
8%
8%
9%
9%
11%
11%
10%
11%
12%
12%
Fleet management
Industrial asset management
Security and public safety monitoring or surveillance
Facility management
Inventory management or warehouse management
Energy management
Smart products
Customer order and delivery tracking
Supply chain management
Using Planning
(Note: Not all responses shown)
Firms are interested in a variety of use cases

Security tops the list of IoT concerns
Source: MM3, Business Technographics Global Networks And Telecommunications Survey, 2015
4%
7%
10%
17%
18%
18%
21%
21%
24%
28%
30%
34%
Don't know
None - we don't have any concerns
We can't find the right supplier(s)
Lack of executive support
Regulatory issues or concerns
We don't think that we have an application or process that will be enhanced by M2M
Difficulty and risk of migration or installation
Pricing is unclear or complicated
Lack of technology maturity
Integration challenges
Total cost concerns (total cost of ownership)
Security concerns
Base: 3627 global business and technology decision makers (20+ employees) in 7 online countries only
MM3: What are your firm's concerns, if any, with deploying M2M/Internet of Things technologies? (All that apply)

Consumer interest in smart home is strong and growing
Source: Forrester North American Consumer Technographics Devices And Telecom Recontact Survey, 2015
Base: 4,646 US Online Adults (18+)
1%
1%
1%
1%
1%
1%
2%
1%
1%
1%
2%
2%
3%
20%
21%
24%
24%
24%
26%
26%
29%
29%
30%
31%
31%
34%
Garden help
Small appliance control
Remote pet monitoring
Large appliance control
People monitoring
Water monitoring (e.g. monitor water usage, detect leaks)
Connected Speakers
Energy systems monitoring
Connected doors, locks
A smart lighting system
A home monitoring/security device system
Climate control
Smoke/carbon monoxide monitoring
Use Interested
37%
33%
33%
31%
30%
30%
28%
27%
25%
25%
25%
23%
21%
Total
6%
of US Online adults
use one or more
connected devices
2%
of US Online
adults use 3+
connected devices
57%
of US Online adults
use or are interested (4
or 5) in using at least
one connected device
“How interested would you be in using the following smart home technologies/services in your home?”

Percentage of
US online
adults who say
they would
wear a sensor
device…
Wearables:
The wrist and clothing
lead more exotic locations

Drivers want connected car features
Base: 2105 metropolitan Chinese adults (18+) who own or lease a vehicle
+Base: 1604 British online adults (18+) who own or lease a vehicle
Tbase: 1770 French online adults (18+) who own or lease a vehicle
Source: “The Retrofit Future Of The Connected Car” Forrester Report

Agenda

DISCOVER
EXPLORE
BUYUSE
ASK
ENGAGE
IoT Powers Three Changes
To The Customer Life Cycle
Source: “Brief: The Internet Of Things Will Transform Customer Engagement”
3. Increase brand affinity and
repurchase intent by
increasing customer benefits
and engagement.
2. Transform the post-purchase
experience by creating new forms of
customer interaction and
engagement.
1. Ease and accelerate
entry into the customer
life cycle by
personalizing and
contextualizing offers.

IoT enables better customer experiences
Eight ways that IoT enables customers to get products and services that:
1. Are designed and built for
them
2. Give real time feedback
3. Deliver richer,
personalized experiences
4. Improve over time
5. Work together seamlessly
6. Offer product-as-a-service
options
7. Create assurance and
peace of mind
8. Faster, more relevant
design upgrade cycles
Source: May 11, 2015, “Brief: The Internet Of Things Will Transform Customer Engagement” report.

1. Tailor products and services

2. Give visibility into real-world events
Vessyl

3. Deliver richer, more personalized
experiences
Drop kitchen scale

4. Improve over time with software
updates
Case IH Harvester

5. Work together
automatically
Samsung’s SmartThings hub

5. Work together
automatically

6. Offer product-as-a-service options

7. Offer assurance and peace of mind

8. Provide faster, more relevant hardware
upgrade cycles

IoT-enabled offerings can deliver better experiences
IoT enables customers to get products and services that:
1. Are designed and built for
them
2. Give real time feedback
3. Deliver richer,
personalized experiences
4. Improve over time
5. Work together seamlessly
6. Offer product-as-a-service
options
7. Create assurance and
peace of mind
8. Faster, more relevant
design upgrade cycles
Source: May 11, 2015, “Brief: The Internet Of Things Will Transform Customer Engagement” report.

The IoT opportunities for NFC
Setup and config of
devices, and user
sessions
Status query, especially for
ad hoc and direct connect
Identity and
authentication,
beyond contactless
payment

forrester.com
Thank you
Frank E. Gillett
@FrankGillett
+1 617.613.6017
fgillett@forrester.com

Q&A and Discussion

ABANDON STATUS
QUO: NFC
TECHNOLOGY IS MORE
THAN JUST PAYMENTS
Mark Robinton, HID

The Trusted Source for
Secure Identity Solutions
An ASSA ABLOY Group brand
The Trusted Source for
Secure Identity Solutions
Abandon Status Quo: Trusted NFC Technology
is More than Just Payments
Mark Robinton: Director, Business Development & Innovation
July 22, 2016

PROPRIETARY INFORMATION. No unauthorized use.
Many uses of NFC Tags
[URL]
www.service.com
[URL]
www.service.com
The Traditional
 Smart Poster
 Enhanced Retail
Experiences
 Transit Schedules
Other Uses
 Secure documents
 Brand Protection
 Sweepstakes & Loyalty
 Proof of Presence
Emphasis on Convenience Need for Trust

Benefits of Frictionless Trust
64
Frictionless Trusted
Trusted Benefits:
• Un-clonable Tags
• Proof of Presence
Frictionless Benefits:
• Easy customer adoption
• No Application Needed

HID Trusted Tags are NFC Forum Tag Type 4 compliant and work with any NFC
forum compatible device without requiring special apps!
How Trusted NFC works
65
http://…ABCDTap
http://…7635Tap
http://…7635Refresh
http://…B423Tap

Trusted NFC Use Cases
66
Authenticity
Prevent counterfeiting
and warranty fraud while
also engaging the
consumer
Transactions
Controlled Sweepstakes,
loyalty point issuance,
small data analytics
Proof of Presence
Proving that a person is
where they said they
were

Secure Electronic Visit Verification
Nurse’s ID
Badge
Trusted Tag
securely
mounted in
patients home
NFC
Enabled
Phone

• Live reporting on Secure Proof of
Presence
• Verified via HID Trusted Tag®
Services
• Real, precise location
• Full history
• No cloning / fake logs possible
• Management of physical keys
Trusted Guard Tour and Keys
68

Maintenance & Inspection

Secure Information Access

Secure Reviews

Virtual Intercom

Smart Badge

Secure Facility Tour

Anti Counterfeiting
Caps and
Bottles
Gold
Coins
Leather
Goods
Documents

NFC in the Next 10 Years
 NFC phones will be an integral tool to every service
business with the need for Proof of Presence
 NFC will be embedded into documents and products for
anti counterfeiting because phones will be the best tool for
validation due to ubiquity
 NFC will make consumers lives more convenient AND add
security and privacy to their transactions

Conclusion
 Conferring trust to proximity transactions enables new and
exciting use cases that wouldn’t otherwise be possible or
insecure
 Secure Proof of Presence can manifest itself in many end
user needs and holds the most short term promise
 Conferring the trust doesn’t need to compromise the user
experience, it can still be frictionless
 HID Trusted Tag™ Services uniquely offers “Frictionless
Trust” through its patented tag technology

Questions and Answers

PROPRIETARY INFORMATION. Do not reproduce, distribute, or disclose. No unauthorized use.
hidglobal.com/solutions/trusted-tag-services

HID Trusted Tag® Services Overview
80

A DAY IN THE LIFE WITH IOT
Mikhail Damiani, Bluebite

CONSUMER JOURNEY
PRODUCTRETAILOUTOFHOME

NFC VALUE PROPOSITION
Entertainment
Offer exclusive, free
content to users
Videos
Songs
eBooks
Games
Monetary
Provide potential customers
with deals relevant to their
wants and needs
Local Offers
Coupons
Deals
Functional
Present users with useful,
informational content
Transit Schedules
App Downloads
Authentication
Product Info
Directions
Local Info
Social
Give consumers access to
social media feeds in one
central location
Instagram
Facebook
Twitter
Pinterest

OUT-OF-HOME
Extend a one-way interaction into a two-
way engagement
Collect Real Time Data / Analytics
Generate revenue from existing media
Provide value to consumers during dwell-time
Make physical-digital connections easier

RETAIL
Elevate shoppers’ retail adventures
Customer loyalty: provide exclusive content and
rewards to loyal customers; CRM Integration
Assistance during shopping experience
Give insight into a consumer’s path to purchase
Post purchase: provides real-time brand
messaging, events and exclusive offers,
feedback, etc.

PRODUCT
Empower products to provide perpetual
value
Remain top of mind
Give insight into a consumer’s preferences and
behaviors
Provides real-time brand messaging, events and
exclusive offers, feedback, etc.
Sequential messaging
Create meaningful relationships with consumers

Drive to Store
2..User enters predefined beacon region
inside store and receives a notification on
mobile device. User swipes notification to
launch corresponding app with coupon code.
1..User taps (NFC) or scans (QR)
out-of-home media to reveal
corresponding store locator.
3..User interacts with product
via NFC to access exclusive,
personalized content.
Post-Purchase
ECOSYSTEM
Mobile instantly connects users with the world around
them. Our platform enables dynamic content delivery
during a user’s journey through a series of interactions,
providing the most relevant experience based upon current
and past behavior.

PUMA SPARKS
EXCITEMENT FOR
IGNITE XT
PUMA collaborated with Blue Bite, Blue 449, Zenith
Media, and Austria-based mobile agency Loop, to
create a one-of-a-kind campaign to promote PUMA’s
latest sneaker, the Ignite XT, and its brand
ambassador partnerships with Usain Bolt and
Rihanna.
Deployed in collaboration with JCDecaux in Chicago,
the custom built experiential transit shelters were
outfitted with Blue Bite’s mTAG® (NFC/QR) , esca®
beacon and geofence technologies. Users tapped or
scanned the mTAGs and clicked on display ads and
notifications triggered by the beacons and geofences
to launch a mobile experience. This experience
allowed users to discover the featured Ignite XT
sneaker with the ability to purchaseit.
TECHNOLOGIES: Touchpoints, Beacons,Geofencing
DEPLOYMENT: TransitShelters
KEY MARKETS:U.S.
PARTNERS: Blue 449, JCDecaux, Loop, Zenith Media
CASE STUDY | PUMATRAC

MY VISION FOR THE FUTURE OF NFC
NFC Ubiquity
All major handsets will have NFC support
Most of the things (not devices) that we buy will
be embedded with NFC
NFC will be a widely used technology to aid
consumers during their shopping experience
Virtual closets will be commonplace
The counterfeit goods market will decline
Brands will have significantly more customers in
their CRMs
Product design/release cycles will shorten due
to constant feedback

IoT NFC Opportunity

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