visionfc – an nfc forum event: the future of the internet of things + nfc presentations

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 IoTFrank 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

locationIn 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

impactIndirect

• 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 IoTPercent 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 togetherautomatically Samsung’s SmartThings hub


5. Work togetherautomatically


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 experiencesIoT 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

[email protected]


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

https://mytag.io/home/index.html

https://mytag.io/home/index.html



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

VISIONFC 2016

CONSUMER JOURNEY

PRODUCTRETAILOUT OF HOME

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 SPARKSEXCITEMENT 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 purchase it.

TECHNOLOGIES: Touchpoints, Beacons, Geofencing

DEPLOYMENT: Transit Shelters

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

THANK YOU