Retail CIOs have always had a tough job, but digital makes it tougher. Emerging digital technologies threaten to transform retail experiences both in stores and at home. Without a good business case, CIOs at large retailers will find it hard to prepare their business to compete with small, nimble startups. My latest report highlights the potential of today's digital technologies to radically disrupt the retail industry once more. It serves as a call to CIOs to begin shaping their strategy to digitize the end-to-end customer experience and start proving the business case in time to make the investments needed.
Specialty fashion retailer Rebecca Minkoff is creating a truly differentiated in-store customer experience by combining RFID tags with new technologies like digital mirrors in the changing room connected to employee mobile devices. At the NYC Rebecca Minkoff store, customers can select products from racks or a digital fashion wall and head to the dressing room, where they meet their personal fashion consultant. Once in the dressing room, a digital mirror displays all the products and sizes the customer has in the room. The customer can easily request a new size by selecting it on the mirror. The consultant delivers the new sizes to the dressing room without the customer having to redress or wander the store half-undressed. By extending what Rebecca Minkoff has already achieved, we get a glimpse of a future in-store experience that helps each customer quickly find more products that satisfy their desires.
Internet of Things (IoT) security is a hot topic among security and risk professionals. It seems as if every "thing" on the market is becoming smarter and more interactive. As the level of IoT device maturity increases so does the level of risk of data and device compromise. The scary thing is that we really have no idea what IoT devices are in our environment let alone the correct way to secure them.
Both IoT product makers and IoT product operators need to understand the security implications of IoT devices. Security in IoT involves product makers rethinking how they create technologies, secure code and hardware, develop new offerings, and ensure the privacy of the data they collect. These areas of security are not typically areas that automobile, manufacturing, and retail technology makers have had to consider in the past. The scale of IoT devices in each vertical is enough to employ a small army of developers who are yet not up to speed on the latest secure code and hardware concepts.
On the other side of the coin, enterprises have the unenviable position of implementing these poorly coded and built technologies. Overwhelming pressure will come from competing enterprises causing an increase in IoT adoption to improve business efficiencies. IoT will become pervasive, and mandatory, throughout every vertical from gas and electric to automotive. The threat landscape in these areas will be immense.
Consumers are implementing connected home activities one gadget at a time - Forrester surveys show that about 13% of US online adults use one or more smart home device. But unlike mobile, where a brand new technology established a new category, smart home products will transform existing home markets, such as insurance, energy, health, water, and food, rather than create a new one.
Sure, Apple and Google will battle to be the dominant app interface and software platform – but they won’t be controlling or taking over those markets. Instead, individual companies will soon be experimenting with how to promote and even subsidize smart home products to create interactive relationships with their customers that simply weren’t possible before. Liberty Mutual and American Family just started subsidizing Nest Protect smoke detectors in return for monthly confirmation that the homeowner is keeping them on and connected to Wi-Fi. Similarly, grocers and food brands such as Nestlé and Unilever will begin promoting smart devices, like the Drop baking scale, and recipe filled apps to encourage shoppers to keep coming back.
Emerging smart home devices will perform 13 activities that can be organized into two domains: crucial background activities that automate everyday tasks like environmental comfort, home access, and home safety, or fun and helpful foreground activities that sustain engagement, such as entertainment activities, cooking and health management, and monitoring family members. Clients can see more details and many examples in our report, The Smart Home Finally Blossoms.
Once a month I use my blog to highlight some of S&R’s most recent and trending research. This month I’m focusing on application security and asking for your help with some of our upcoming research into the security and privacy risks associated with Internet of Things (IoT). IoT is any technology that enables devices, objects, and infrastructure to interact with monitoring, analytics, and control systems over the Internet. The illustrious and debonair, Tyler Shields (@txs), will lead our research into IoT security, but as the risks become more and more concrete for various verticals, you can expect the entire team to engage in this research.
Take our IoT security survey and talk with our analysts! If you contribute to the emerging IoT market, please fill out this brief survey (http://forr.com/2015-IoT-Security-Survey). Participants will receive a complimentary copy of the completed research report and we'd be happy to interview anyone who would like to discuss IoT and security in detail. Be sure to reach out to Tyler (email@example.com) or Jennie Duong (firstname.lastname@example.org) if you’re interested.
Survey data from Forrester Research indicates that Internet of Things (IoT) solutions may finally be ready for ‘prime time.’ Business Decision Makers (BDMs) report that IoT has become a top business priority and they are assessing solution feasibility and, in some cases, already investing. IoT will be driven by the business side of the house, but a close collaboration between business and technology management stakeholders is a prerequisite for success. Forrester believes that IoT will ultimately serve as a driving force for the Business Tehcnology (BT) Agenda by changing processes, skills, and the mindset of technology management organizations.
Forrester Business Technographics® runs a series of annual surveys with business and technology decision-makers measuring technology adoption plans, drivers, barriers and buyer behaviors. Let’s take a closer look at how adoption plans for IoT have evolved over the past year.
Compared with 2014, BDMs surveyed in 2015 were more than twice as likely to report they would begin IoT investment within the next 12 months, 50% more likely to report they were currently implementing or piloting IoT and dramatically less likely to be unfamiliar with IoT adoption plans or report they were not familiar with the technology. In 2015, 49% of BDMs reported that the expansion of IoT initiatives was a “high” or “critical” organizational priority over the coming 12 months.
Mobile World Congress (MWC) was a real marathon: According to my wearable gadget, I walked 70,278 steps, or 53.7 km, in four days. So was it worth it apart from the workout?
MWC was certainly busy; it attracted more than 90,000 attendees, including about 50,000 C-level executives (of whom 4,500 were CEOs) — making it the largest MWC event to date. While MWC does not attempt to cater to CIOs’ requirements — only about one-third of the attendees come from outside the technology sector, mostly from government, financial institutions, and media and advertising firms — the event deals with all the critical topics that CIOs will have to address in the years ahead.
This year’s MWC focused on innovation, which is arguably the single most important business priority to ensure business survival in a rapidly changing marketplace. As a business enabler, every CIO must meet the expectation of today’s business customer that he can get what he wants in his immediate context and moment of need. MWC highlighted that:
Mobile is critical to provide a great user experience. Therefore, mobile is becoming a critical factor for CIOs in driving product, service, and process innovation and enhancing customer and employee engagement.
Consumerization is redefining enterprise mobility. At MWC we saw more and more vendors targeting the mobile mind shift taking place in the business segment. This is reflected in the shift of most mobile business solutions away from traditional sales and field force automation toward delivering mobile moments.
The CES Tech West Expo has a number of specific areas of coverage including fitness and health, wearables, connected home, family safety, and some young innovative companies located in the startup area of the section. I spent a few hours interviewing and discussing the Internet of Things (IoT) with as many vendors as I could find. I had many good laughs and shed a few tears during the process. To describe the process, the general communication would go something like this:
Me: "Can you point me at the most technical person you have at your booth? I'd like to talk about how you secure your devices and the sensitive / personal data that it accesses and collects."
Smartest tech person at the booth: "Oh! We are secure; we [insert security-specific line here]."
Me: "Never mind . . ." (dejected look on my face).
The wild west of mobile in insurance is getting tamed. Mobile is no longer just a fun experiment—it’s now a crucial element in the customer and agent experience. We first published our mobile insurance metrics report in August of 2013. At the time, we were struck by how dependent insurers were on a single metric to prove their mobile success: Application downloads.
With 15 more months of mobile development chops under their belts, in November, we decided to take a look at how much more sophisticated mobile insurance strategists had become in their mobile performance measurement strategies. The answer? Unlike other industries where mobile metrics have grown up, insurers remain stuck in mobile adolescence. How do we know? Because topping the mobile insurance metrics list in 2014 are web traffic and app downloads. Fewer insurers are tracking metrics that measure real business outcomes like conversions and mobile revenue transactions.
The hype around the Internet of Things was on full display over the last six weeks, with announcements and events from vendors such as ARM, Cisco, GE, IBM, Intel, PTC, and others. Much of the hype has focused on the possibility of saving lots of money because of all the new information that can help improve utilization and maintenance of expensive business assets. But in this age of the customer, where customer engagement rules, a focus only on cost savings is misplaced. When we look forward to 2015 and developments around the Internet of Things (IoT), we are predicting four key trends and implications for clients. Here are two of those predictions:
IoT customer success stories will displace “billions of devices” hype. Enough already with the Carl Sagan–like references to billions and billions of devices — we’ll finally see a focus on customer success stories about improved machine uptime, better customer experience, and new as-a-service business models.
IoT software platforms will become the rage, displacing the hardware. Much of the early hype has been about cool new sensors, high-tech wearables, and new wireless technologies. In 2015, we’ll see increased focus on the software and especially the cloud services to make all these sensors connect, upload data, and drive analytics that generate insights and enable business improvements.
Most apps are dead boring. Sensors can help add some zing. Sensors are data collectors that measure physical properties of the real-world such as location, pressure, humidity, touch, voice, and much more. You can find sensors just about anywhere these days, most obviously in mobile devices that have accelerometers, GPS, microphones, and more. There is also the Internet of Things (IoT) that refers to the proliferation of Internet connected and accessible sensors expanding into every corner of humanity. But, most applications barely use them to the fullest extent possible. Data from sensors can help make your apps predictive to impress customers, make workers more efficient, and boost your career as an application developer.