i3 - March/April 2016 - 46

Business

BY STEVE SMITH

R E TA I L ST R AT EG I E S
IoT COULD BE A GAME CHANGER
FOR RETAILERS

C

As always there were plenty
of cutting-edge and jawdropping products at CES, but
the show was about far more
than devices. It was about how
wide-reaching electronics, services and content are affecting,
everything. Consumer Technology Association's President
and CEO Gary Shapiro said
in his keynote that technology
displayed at CES is "engaging
almost every major industry
segment and America's burgeoning startup economy," and
"touching almost every part of
consumers' lives."
The Internet of Things phenomenon-known as "IoT"-is
the technology that will soon
be helping run all the apps and
services on devices large and
small. IoT's promise is a lofty
one. IoT could provide a future
where consumers' devices can
communicate with each other
using cognitive abilities and
enable everyone to live more
efficient, healthy and rewarding lives. Several presentations
at CES seem to hold evidence
of that.
"The future is now," Dr. WP
Hong, president of Samsung
SDS, asserted in his CES keynote and outlined partnerships
with Microsoft, BMW and
Corning Glass, among others.
He emphasized that Sam46

MARCH/APRIL 2016

sung and its partners want an
open standard, or as he said,
"openness, integration and
collaboration."
At a CES press conference,
Bosch's CEO Dr. Volkmar
Denner highlighted his company's ability to make components as well as consumer
products, and provide "software
and services." He emphasized
his company's catch
phrase, "Simply
Connected" for IoT.
IoT could provide a future where consumers'
Ginni Rometty,
devices will be able to communicate with each
IBM's president
and chairman, disother using cognitive abilities and enable everyone
cussed its Jeopardy
to live more efficient, healthy and rewarding lives.
champion Watson
which is now a
cloud-based system
with cognitive abilities that
strate and guide consumers on
Amazon, Google or another
puts "thinking into everything
various IoT formats for home
group offer gated alternatives?
you do." She also trotted out
If a standard is not agreed upon products. But if a standard is
various partners-Under
reached early on, there should
IoT's rollout will be hampered
Armour, Medtronic and Softbe profits galore for retailers
by confusion. In the history of
Bank Robotics. Her implied
who can explain, demonCE the lesson is a format war
message was that Watson is an
strate, sell-and in some cases
could endure for years.
example of how such cognitive
install-home IoT products.
If an old-fashioned format
systems could help compaIt will be interesting to see
war occurs in IoT, confusion
nies who want to develop IoT
if an IoT format battle ensues
will reign. And one group of
services and devices.
or not. You would think that
people in the industry should
some of the players might
be poised to benefit from
learn from history rather than
it-retailers.
Format
confuThe Retail Angle
repeat it, for the benefit of all.
sion
is
bad
for
manufacturers
Putting aside the issue of IoT
and frustrating for consumers.
security, Dr. Hong asked which
Steve Smith is editor at large of
"future" will dominate. In other Sales and profits aside, it will
be difficult for retailers to train TWICE and its longtime editor
words, will there be open stanin chief.
their staffs to explain, demondards for IoT? Or will Apple,
I T I S I N N O VAT I O N

Erik Isakson/Glow Images

hange is in the air, whether you measure it by
2016 being a presidential election year, the
effects of El Nino or the volatile equity markets
worldwide. Anyone who attended CES 2016 or closely
observed from a distance can attest that CES reflects
what's going on in consumer technology today.

http://www.bosch-home.com/us/ http://cesweb.org/News/CES-TV/Video-Detail?vID=UHLIwNw2pK98&dID=DliGIusJiD1C&sID=OhYr3WpdgEMj http://cesweb.org/News/CES-TV/Video-Detail?vID=UHLIwNw2pK98&dID=DliGIusJiD1C&sID=OhYr3WpdgEMj http://cesweb.org/News/CES-TV/Video-Detail?vID=UHLIwNw2pK98&dID=DliGIusJiD1C&sID=OhYr3WpdgEMj http://www.samsungsds.com/ http://www.samsungsds.com/ http://www.microsoft.com http://www.BMW.com https://www.corning.com/worldwide/en.html

i3 - March/April 2016

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