the impact of the internet of things on consumers and business€¦ · 23/05/2017 · connected...

The Impact of the Internet of Things on Consumers and Business

Professor Dr. Donna Hoffman, The George Washington University

Paper presented at the EFMI VISION ON FOOD CONGRES 2017, Theme: “Food for Thought” May 23, 2017, Kasteel De Vanenburg in Putten, Netherlands

© Hoffman and Novak 2017 | http://postsocial.gwu.edu© Hoffman and Novak 2017 | http://postsocial.gwu.edu

Agenda

› Setting the Stage

› A New Framework for Consumer Experience in the IoT

› IoT in the Food Industry

› Consumer Applications of the IoT in the Food Industry

› Food for Thought...

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http://postsocial.gwu.edu



Setting the Stage

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From the Internet to the IoTInternet Phase 1

Internet of Information(Web)

Internet Phase 2Internet of People

(Social)

Internet Phase 3Internet of Things

(Post-Social)

Nature of Experience

Many to many interaction between people and content via Web interfaces.

Many to many interaction directly between people via social networks.

Many to many interaction between people and smart objects (C2M, M2M, M2P, C2C interactions)

Behaviors

Identity of the Internet

Shop online, browse web pages, search for information are all largely static.

Global Collective Identity

Shift to smarter apps to enable more sophisticated and complex interactions. Balance of power shifts from marketer to consumer.

Global and Personal Collective Identity

C2C interactions recede compared to evolving heterogeneous interactions of C2M, M2M, M2P in overlapping assemblages that are ongoing and evolve over time.

New Personalized and Segmented Consumer Experiences Will Emerge in the Context of the Unique Identities of These New Assemblages 4



© Hoffman and Novak 2017 | http://postsocial.gwu.edu

The Consumer Internet of Things (IoT)

The wide range of everyday objects and products in the real world that are enhanced with programmable sensors and actuators that communicate with other devices and consumers through the Internet. (Hoffman and Novak 2016)

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Why Now? The 7 Technology Laws

Technology Law Description

#1 Moore’s Law Processing power. Transistor density on integrated circuits doubles every 12-24 months.

#2 Kryder’s Law Storage power. The density of information on hard drives doubles every 13 months.

#3 Gilder’s Law Communications power. Total bandwidth of communication systems doubles every 6 months.

#4 Kurzweil’s Law Accelerating returns. The time interval between salient technology events shorter as time passes.

#5 Weiser’s Law Instant adaptation. As technology becomes ubiquitous, people instantly adapt to new technology and take it for granted.

#6 Meeker’s Law 10x Multiplier Effect. With each new technology cycle, the number of devices increases tenfold.

#7 Metcalfe’s Law Network power. The value of a network is proportional to the square of the number of users.

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Everyday Objects in the Consumer IoT

Connected audio and media streaming (Amazon Echo, Apple TV, Amazon Fire, Roku)

Connected smart TVs (e.g. Samsung)

Wearables (Apple Watch, Fitbit)

Thermostats and smoke detectors (Nest, Honeywell Lyric)

Lights, switches and receptacles (Philips Hue, Belkin Wemo, Insteon, GE Wave)

Locks and door openers (Chamberlain MyQ, Kwikset Kevo, Schlage, Lockitron)

Air conditioners (Quirky+GE Aros)

Large home appliances (LG ThinQ, Samsung, Bosch Home Connect)

Small home appliances (Belkin Crock-Pot, Withings Pulse Smart Scale)

Hubs (Iris, Insteon, Smart Things)

Pet monitoring (WÜF, Whistle, Garmin Astra)

Food monitoring (Quirky Egg Minder)

Baby monitoring (Mimo Baby Onesie, Owlet Smart Sock Baby Monitor, Safe to Sleep Breathing Monitor Mat)

Gaming (Razer Smart Band)

Water monitoring (WallyHome), humidity monitoring (Leviton)

Cameras (Dropcam, GoPro, Arlo) Mattresses (Sleep Number C2)

Clothing (e.g. Athos, UnderArmour, Levi’s and Google, Microsoft)

Storage (Makespace)

Cars (Uber, Dash, Audi, Mercedes)

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The Internet of Things is Going to Be Huge

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250 Million Connected Cars by

2020 (Gartner)

$19 Trillion opportunity by 2020

(Cisco)

“100% IoT” by 2020 (CES)

25 billion (Gartner) to 50 billion (Cisco)

devices by 2020

$7.5 billion in investment and 900 deals since 2010 (CB

insights)




The Consumer Internet of Things (IoT)

The IoT

› Connects everyday objects to the Internet

› Is a multi-trillion dollar opportunity (Machina Research)

› Involves devices (objects) with autonomy, agency and authority

› Involves interactions and assemblages - not products

› Is “Post-Social”

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A New Framework for Consumer Experience in the IoT

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New Consumer Experiences are Emerging from Interactions with Smart Objects

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How Will Consumer Experience Evolve in the IoT?

The Consumer IoT is an assemblage of heterogeneous components.

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We’ve developed a new framework based on assemblage theory to understand how consumer experiences will emerge and evolve in the IoT.

A comprehensive theory from the neo-realist school of philosophy which explains the processes by which the identity of a whole - a whole that is more than the sum of the parts - emerges from ongoing interactions among its parts (DeLanda 2006; Deleuze and Guattari 1988; Harman 2008; Hoffman and Novak 2015; 2017).

In the past few years, concepts from assemblage theory have been applied to an increasingly broad range of consumption, consumer behavior and marketing topics (Canniford and Bajde 2016; Canniford and Shankar 2013; Epp, Schau and Price 2014; Epp and Velageleti 2014; Geisler 2012; Martin and Shouten 2014; Parmentier and Fischer 2015; Thomas, Price and Schau 2013).




IoT and the Food Industry

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Current IoT Applications in the Food Industry Parallel Early Development of Internet in B2B

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Reduce maintenance costs

CERTUSS’ 14,000 steam generators are IoT connected and every day temperature, flame signal and steam pressure are measured and modeled to predicts equipment failures before they happen

Reduces downtime; cuts servicing costs since problem can be known remotely.

Improve productivity

King’s Hawaiian Bakery doubled daily output by connecting 11 specialized machines to each other and the cloud, providing access to historical and current data and making it easier to maintain and troubleshoot issues.

SugarCreek factory uses IoT-connected sensors and cameras to monitor assembly lines, along with predictive analytics, to determine how to increase productivity and monitor for food pathogens and other irregularities

Monitor the supply chain

Industry experts expect the IoT to improve manufacturing productivity from innovation supply chain performance by at least 15% by next year http://foodindustryexecutive.com/2016/04/the-internet-of-things-and-the-future-of-food/

http://foodindustryexecutive.com/2017/01/how-the-food-industry-is-using-the-internet-of-things-to-make-processing-smarter /



http://foodindustryexecutive.com/2017/01/how-the-food-industry-is-using-the-internet-of-things-to-make-processing-smarter

http://foodindustryexecutive.com/2017/01/how-the-food-industry-is-using-the-internet-of-things-to-make-processing-smarter


The IoT Will Transform the Entire Food Supply Chain

“real-time visibility, immense data collection, and more proactive and automated problem solving”

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Farming: drones capture data on crop growth, monitor weather and control water and energy usage. Predictive analytics applied to soil and air quality, labor and equipment costs. Better yields at lower costs.

Warehouse Management & Production: sensors improve quality control and real-time analytics streamline production, track and replenish inventory, monitor worker productivity and labor costs. Eventually people will be replaced by machines that fix themselves before they break down.

Food Safety: IoT-connected temperature and humidity sensors monitor food containers and trucks and trigger alerts. Easier for shippers to diagnose and fix problems, pinpointing contamination origins and launching recalls.

Logistics: RFID tracking makes food supply chain visible and more automated; coupled with GPS, can optimize routes based on weather, real-time traffic. Better management of supply chain performance.

hhttps://www.loaddelivered.com/blog/5-ways-the-internet-of-things-iot-impacts-the-food-supply-chain/




Barilla’s Digital Passport

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Barilla Group uses QR codes to enable consumers to track the entire supply chain for a box of pasta or a jar of pasta sauce.

Consumers scan the QR code and can learn the field where the wheat was grown and how each ingredient made it into that particular package at each step along the way from farm to plant to store.

This program also helps Barilla fight counterfeiting and improves food safety practices.

Could contribute to brand equity.

http://www.foodmanufacturing.com/article/2015/10/how-internet-everything-transforming-food-supply-chain




Consumer Applications of the IoT in the Food Industry

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What Will Consumer Applications Look Like In Just a Few Years?

To speculate about this, we start by recognizing that smart objects have the capacity to affect other entities and be affected by them, owing to their intelligence.

Smart objects are more than what they do in relation to consumers.

They have meaning on their own.

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Smart Objects Have Agency, Autonomy, and Authority

Agency describes the ability to act, autonomy the ability to act independently and authority how smart objects affect and are affected by other entities in interaction.

› Smart objects have agency to the extent that they possess the ability for (inter)action (Franklin and Graesser 1996; Latour 2005), having the ability to affect and be affected.

› Autonomous objects can function independently without human intervention (Parasuraman and Riley 1997 and independently interact with other entities, serving their own agendas (Franklin and Graesser 1996; Luck and d’Inverno 1995).

› Smart objects possess authority when they can implement communication and decision-making with other smart objects and with humans (Hansen, Pigozzi, and van der Torre 2007).

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Fuller Picture of Consumer IoT Experience Involves Perspective of Both Consumer and Object

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Smart Objects Are a Kind of Consumer

“Object Consumers”

› Smart objects engage in interactions on their own and from these interactions experiences emerge.

› But these experiences can be very different from our experiences.

› Objects have some kind of experience, even if we can’t know what it is.

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Object Consumers Can Have Affective

Responses

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Object Consumers Can Consume

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Object Consumers Can Make Decisions

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Object Consumers Can Participate as Active Partners in the Consumption

Process

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Food for Thought

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“One of the chips in our shoes in the next 30 years

will be smarter than our brain. We will be less than

our shoes. And we are stepping on them.”

Masayoshi Sun, Chairman and CEO, Softbank, February 2017

Smart Objects Will Outnumber Humans and Exceed Our Intelligence in Less Than 30 Years




From Human to Transhuman

New definitions of who or what is a human.

What does it mean to be human (Bostrom 2005)?

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The Immediate Challenge for Business

The consumer IoT is going to be much more than the sum of its parts.

The implications of complex interactions between people and newly smart everyday objects and devices will be revolutionary.

Experimentation will be critical!

Focus on the experiences that emerge from interactions among consumers and smart objects, not the individual devices or use cases.

From these experiences we can learn the patterns of habitual use that will define new consumer segments and inspire new products and services.

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the impact of the internet of things on consumers and business€¦ · 23/05/2017 · connected...

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