Tag Archives: Retail

AIoT: How the Intersection of AI and IoT Will Drive Innovation for Decades to Come

We have covered the evolution of the Internet of Things (IoT) and Artificial Intelligence (AI) over the years as they have gained prominence. IoT devices collect a massive amount of data. Cisco projects by the end of 2021, IoT devices will collect over 800 zettabytes of data per year. Meanwhile, AI algorithms can parse through big data and teach themselves to analyze and identify patterns to make predictions. Both technologies enable a seemingly endless amount of applications retained a massive impact on many industry verticals.

What happens when you merge them? The result is aptly named the AIoT (Artificial Intelligence of Things) and it will take IoT devices to the next level.

WHAT IS AIOT?

AIoT is any system that integrates AI technologies with IoT infrastructure, enhancing efficiency, human-machine interactions, data management and analytics.

IoT enables devices to collect, store, and analyze big data. Device operators and field engineers typically control devices. AI enhances IoT’s existing systems, enabling them to take the next step to determine and take the appropriate action based on the analysis of the data.

By embedding AI into infrastructure components, including programs, chipsets, and edge computing, AIoT enables intelligent, connected systems to learn, self-correct and self-diagnose potential issues.

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One common example comes in the surveillance field. Surveillance camera can be used as an image sensor, sending every frame to an IoT system which analyzes the feed for certain objects. AI can analyze the frame and only send frames when it detects a specific object—significantly speeding up the process while reducing the amount of data generated since irrelevant frames are excluded.

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While AIoT will no doubt find a variety of applications across industries, the three segments we expect to see the most impact on are wearables, smart cities, and retail.

WEARABLES

Wearable-IoT-Devices

The global wearable device market is estimated to hit more than $87 billion by 2022. AI applications on wearable devices such as smartwatches pose a number of potential applications, particularly in the healthtech sector.

Researchers in Taiwan have been studying the potential for an AIoT wearable system for electrocardiogram (ECG) analysis and cardiac disease detection. The system would integrate a wearable IoT-based system with an AI platform for cardiac disease detection. The wearable collects real-time health data and stores it in a cloud where an AI algorithm detects disease with an average of 94% accuracy. Currently, Apple Watch Series 4 or later includes an ECG app which captures symptoms of irregular, rapid or skipped heartbeats.

Although this device is still in development, we expect to see more coming out of the wearables segment as 5G enables more robust cloud-based processing power, taking the pressure off the devices themselves.

SMART CITIES

We’ve previously explored the future of smart cities in our blog series A Smarter World. With cities eager to invest in improving public safety, transport, and energy efficiency, AIoT will drive innovation in the smart city space.

There are a number of potential applications for AIoT in smart cities. AIoT’s ability to analyze data and act opens up a number of possibilities for optimizing energy consumption for IoT systems. Smart streetlights and energy grids can analyze data to reduce wasted energy without inconveniencing citizens.

Some smart cities have already adopted AIoT applications in the transportation space. New Delhi, which boasts some of the worst traffic in the world, features an Intelligent Transport Management System (ITMS) which makes real-time dynamic decisions on traffic flows to accelerate traffic.

RETAIL

AIoT has the potential to enhance the retail shopping experience with digital augmentation. The same smart cameras we referenced earlier are being used to detect shoplifters. Walmart recently confirmed it has installed smart security cameras in over 1,000 stores.

smart-shopping-cart

One of the big innovations for AIoT involves smart shopping carts. Grocery stores in both Canada and the United States are experimenting with high-tech shopping carts, including one from Caper which uses image recognition and built-in sensors to determine what a person puts into the shopping cart.

The potential for smart shopping carts is vast—these carts will be able to inform customers of deals and promotion, recommend products based on their buying decisions, enable them to view an itemized list of their current purchases, and incorporate indoor navigation to lead them to their desired items.

A smart shopping cart company called IMAGR recently raised $14 million in a pre-Series A funding round, pointing toward a bright future for smart shopping carts.

CONCLUSION

AIoT represents the intersection of AI, IoT, 5G, and big data. 5G enables the cloud processing power for IoT devices to employ AI algorithms to analyze big data to determine and enact action items. These technologies are all relatively young, and as they continue to grow, they will empower innovators to build a smarter future for our world.

How to Leverage AR to Boost Sales and Enhance the Retail Experience

The global market for VR and AR in retail will reach $1.6 billion by 2025 according to research conducted by Goldman Sachs. Even after years of growing popularity, effectively employed Augmented Reality experiences feel to the end-user about as explicitly futuristic as any experience created by popular technology.

We have covered the many applications for AR as an indoor positioning mechanism on the Mystic MediaTM blog, but when it comes to retail, applications for AR are providing real revenue boosts and increased conversion rates.

Augmented Reality (AR) History

Ivan Sutherland 1

While working as an associate professor at Harvard University, computer scientist Ivan Sutherland, aka the “Father of Computer Graphics”, created an AR head-mounted display system which constituted the first AR technology in 1968. In the proceeding decades, AR visual displays gained traction in universities, companies, and national agencies as a way to superimpose vital information on physical environments, showing great promise for applications for aviation, military, and industrial purposes.

Fast forward to 2016, the sensational launch of Pokemon GO changed the game for AR. Within one month, Pokemon GO reached 45 million users, showing there is mainstream demand for original and compelling AR experiences.

Cross-Promotions

Several big brands took advantage of Pokemon GO’s success through cross-promotions. McDonald’s paid for Niantic to turn 3,000 Japan locations into gyms and PokeStops, a partnership that has recently endedStarbucks took advantage of Pokemon GO’s success as well by enabling certain locations to function as PokeStops and gyms, and offering a special Pokemon GO Frappucino.

One of the ways retailers can enter into the AR game without investing heavily in technology is to cross-promote with an existing application.

In 2018, Walmart launched a partnership with Jurassic World’s AR game: Jurassic World Alive. The game is similar to Pokemon GO, using a newly accessible Google Maps API to let players search for virtual dinosaurs and items on a map, as well as battle other players. Players can enter select Walmart locations to access exclusive items.

Digital-Physical Hybrid Experiences

The visual augmentation produced by AR transforms physical spaces by leveraging the power of computer-generated graphics, an aesthetic punch-up proven to increase foot traffic. While some retailers are capitalizing on these hybrid experiences through cross-promotions, others are creating their own hybrid experiential marketing events.

Foot Locker developed an AR app that used geolocation to create a scavenger hunt in Los Angeles, leading customers to the location where they could purchase a pair of LeBron 16 King Court Purple shoes. Within two hours of launching the app, the shoes sold out.

AR also has proven potential to help stores create hybrid experiences through indoor navigation. Users can access an augmented view of the store through their phones, which makes in-store navigation easy. Users scan visual markers, recognized by Apple’s ARKitGoogle’s ARCore, and other AR SDKs, to establish their position, and AR indoor navigation applications can offer specific directions to their desired product.

Help Consumers Make Informed Choices

Ikea Place Screenshots

AR is commonly employed to enrich consumers’ understanding of potential purchases and prompt them to buy. For example, the “IKEA Place” app allows shoppers to see IKEA products in a superimposed graphics environment. IKEA boasts the app gives shoppers 98% accuracy in buying decisions.

Converse employs a similar application, the “Converse Sampler App”, which enables users to view what a shoe will look like on their feet through their device’s camera. The application increases customer confidence, helping them make the decision to purchase.

Treasury Wines Estates enhances the consumer experience with “Living Wine Labels”: AR labels that bring the history of the vineyard to life and provide users with supplementary information, including the history of the vineyard the wine came from and tasting notes.

Conclusion

AR enables striking visuals that captivate customers. As a burgeoning tool, AR enables companies to get creative and build innovative experiences that capture their customers’ imagination. Retailers who leverage AR will seize an advantage both in the short term and in the long term as the technology continues to grow and evolve.

The Future of Indoor GPS Part 1: Top Indoor Positioning Technologies

GPS can help you get from A to B, but what can it do to enhance your indoor retail experience?  Over the next several entries, the Mystic Media Blog will endeavor on a five-part deep dive into the top indoor location technologies and how they will help form the retail experience of the future.

GPS has become ingrained in our everyday lives. Zoomers will never know of a world without GPS, the world of Mapquest and just plain old maps.

While Google Maps, Waze, and Apple Maps can take you from your home to your favorite retailer, finding your way around large stores remains difficult. As a business owner, you want to make the act of navigating the store as easy as possible so that your customers have a positive experience finding what they want. Indoor GPS can solve that problem.

In the past five years, indoor positioning has blown up. The global market for indoor location technology is projected to hit $40.99 billion by 2022, a significant increase from $5.22 billion in 2016. That’s a compound annual growth rate of 42%. With $2.4 billion anticipated in annual spending on beacons and asset tracking by the end of 2020, IPS or Indoor Positioning Systems are here to stay.

Here are the top IPS technologies in use today:

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BLE 5.1 BEACONS

Bluetooth Low Energy Beacons are tiny battery powered devices that can connect to bluetooth-enabled devices like smartphones.

When it comes to indoor positioning, the more precise the positioning, the larger the investment required to achieve it. Bluetooth Low Energy beacons have become a technology stack because they require relatively inexpensive hardware to achieve an accuracy of up to 1-3 meters. BLE 5.1 beacons have improved upon that, providing 1-10 centimeters of accuracy with minimal lag.

BLE is extremely power efficient and cost-effective, minimally draining a phone’s battery  when connected, and can be used within WiFi access points or lighting infrastructure. Since they infrequently require maintenance, they are often used in high-traffic venues.

Locatify-UWB-Ultrawideband-RTLS

ULTRA-WIDEBAND (UWB)

Ultra-wideband (UWB) is a radio technology utilizing low power consumption for a high-bandwidth connection. UWB has extremely precise locating abilities, dialing in to locate objects within one centimeter.

In September 2019, Apple announced the iPhone 11 includes a “U1” chip with UWB technology; however, UWB technology is currently not widely available. Many consider it to be the future of indoor positioning technology, but the lack of existing infrastructure will likely delay mass adoption. Regardless, for applications like warehouse tracking where ultra-precise positioning is required, UWB is an ideal solution.

RFID

RFID TAGS

RFID stands for Radio Frequency Identification. RFID is a simple technology with a tag and a reader. The reader extracts data from the tag using radio-frequency electromagnetic field and identifies the object the tag is attached to.

Although RFID is often used in combination with other technologies for more precise indoor location, the market for RFID is gradually increasing. It’s currently slated for growth in the apparel and shoes space, with great potential in other markets such as healthcare and automotive.

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AR-BASED NAVIGATION

Indoor navigation utilizing Augmented Reality technologies can do more than just help you navigate a store, it can totally revolutionize the retail experience.  AR can create virtual paths and arrows to help navigate the store. For businesses, AR can improve internal processes by making it easier for staff to navigate offices and warehouses.

This technology is enabled by placing visual markers which can be scanned by the users using their mobile device’s camera. The phone will then guide the user through the retail experience and can be customized to help them find what they need.

In May 2019, the number of AR-enabled devices around the world reached 1.05 billion. Apple and Google are actively working on improving ARKit and ARCore, their AR software development frameworks. Beyond simply helping customers and staff navigate stores, AR will pave the way for personalized shopping experiences unlike any we’ve seen before.

CONCLUSION

While BLE Beacons are currently the leader in the marketplace, many technologies are competing to pioneer the most advanced and accurate indoor location technologies. Given the countless applications, the future is looking bright for indoor location applications! Tune into our next indoor positioning blog when we take a deep dive into BLE 5.1 beacons.

Securing Your IoT Devices Must Become a Top Priority

The Internet of Things has seen unprecedented growth the past few years. With an explosion of commercial products arriving on the marketplace, the Internet of Things has entered the public lexicon. However,  companies rushing to provide IoT devices to consumers often cut corners with regard to security, causing major IoT security issues nationwide.

In 2015, hackers proved to Wired they could remotely hack a smartcar on the highway, kill the engine and control key functions. Dick Cheney’s cardiologist disabled WiFi capabilities on his pacemaker, fearing an attack by a hacker.  Most recently, the October 21st cyber attack on Dyn brought internet browsing to a halt for hours while Dyn struggled to restore service.

Although the attack on Dyn seems to be independent of a nation-state, it has caused a ruckus in the tech community. A millions-strong army of IoT devices, including webcams and DVRs, were conscripted with a botnet which launched the historically large denial-of-service attack. Little effort has been made to make common consumers aware of the security threats posed by IoT devices. A toy Barbie can become the back door to the home network, providing access to PCs, televisions, refrigerators and more. Given the disturbing frequency of hacks in the past year, IoT security has come to the forefront of top concerns for IoT developers.

SECURING CURRENT DEVICES

The amount of insecure devices already in the market complicates the Internet of Things security problem. IoT hacks will continue to happen until the industry can shrink vulnerable devices. Securing current devices is a top priority for app developers. Apple has made an effort to combat this problem by creating very rigorous security requirements for HomeKit compatible apps.

The European Union is currently considering laws to force compliance with security standards. The plan would be for secure devices to have a label which ensures consumers the internet-connected device complies with security standards. The current EU labeling system which rates devices based on energy consumption could prove an effective template for this new cybersecurity rating system.

ISPs COULD BE THE KEY

Internet service providers could be a major part of the solution when it comes to IoT Security. Providers can block or filter malicious traffic driven by malware through recognizing patterns. Many ISPs use BCP38, a standard which reduces the process hackers use to transmit network packets with fake sender addresses.

ISPs can also notify customers, both corporate and individuals, if they find a device on their network sending or receiving malicious traffic. ISPs already comply with the Digital Millennium Copyright Act which requires internet providers to warn customers if they detect possible illegal file sharing.

With the smarthome and over 1.9 billion devices predicted to be shipped in 2019, IoT security has never been a more important issue. Cyber attacks within the US frequently claim the front page of the mainstream media. CIO describes the Dyn attacks as a wake-up call for retailers. The combination of a mass adoption of IoT and an environment fraught with security concerns means there will be big money in IoT security R & D and a potential slow-down in time-to-market pipeline for IoT products.

Will the federal government get involved in instituting security regulations on IoT devices, or will it be up to tech companies and consumers to demand security? Whatever the outcome, this past year has proved IoT security should be a major concern for developers.

How Mobile Commerce Is Changing Retail Sales

Smartphones have brought about unparalleled convenience in our daily lives. We are constantly connected to our rolodex of contacts with a variety of methods of communication. We can access all the information available on the world wide web anytime. Consumers looking to make purchases on the go can find the nearest store with ease. For businesses, the mobile platform represents not only a major avenue for advertising, but an opportunity to give customers the ultimate convenience when purchasing products.

According to Internet Retailer, mobile commerce represents 30% of all US e-commerce and rose by 38.7% from 2014 to 2015. Mobile commerce drives sales, and businesses lacking a mobile strategy are missing out on a major opportunity to increase revenue. Here are the top mobile commerce trends for 2016:

INTEGRATING PHYSICAL WITH DIGITAL

Although the digital world is virtually omnipresent in households, the appeal of immediately receiving one’s purchases by shopping in store remains attractive. Retailers are increasingly offering a variety of online + in-store options to capitalize on the convenience of digital and the immediacy of making a physical purchase.

Apps like Curbside have partnered with Target & Kroger’s to enable customers to reserve their purchases and skip the line when picking up products.

Beacon-enabled features like geo-targeted offers and loyalty rewards are becoming more and more popular. Geo-targeted offers can drive in-store traffic when delivered effectively. According to Target Marketing Magazine, 85 of the top 100 retailers are planning to adopt beacon technology by the end of 2016. Business Insider has predicted beacons will directly influence over $44 billion in US retail sales in 2016.

PERSONALIZED MOBILE PAYMENTS DRIVE LOYALTY

Although services such as Apple Pay and Android Pay were once hailed as the future, they have had a hard time receiving mass adoption. While mobile payment services haven’t gained popularity, the mobile wallet has made a major impact on commerce. Starbucks drives 16% of transactions through its mobile app. Walmart Pay arrived in December 2015, and now Target is next in line to develop their own payment app.

WEARABLES ON THE RISE

According to Arc, there will be a 61% growth in wearable ownership in 2016. App developers and retailers are still plotting on how to capitalize on wearables. Many anticipate a hands-free shopping experience in which one can simply walk out with their purchases and have automatic charges through wearable devices. Malls and large stores like Walmart may use wearables to make it easier for consumers to navigate stores. Wearables represent a major avenue for retailers to create innovative strategies and dictate trends to come.

THE MOBILE WEB DRIVES PURCHASES

While about 85% of time spent on mobile devices occurs in apps, the mobile web has actually proven to be a more successful in driving website traffic. While app usage is prevalent, consumers spend 80% of their app time on their top 3 apps. The mobile web drives twice the amount of site traffic than mobile apps. With 82% of smartphone users looking to their phones in stores when deciding what to buy, many anticipate the mobile web to surpass apps as the largest revenue driver in the next few years.

HOW CAN MOBILE COMMERCE HELP YOUR BUSINESS?

With technology in constant flux, the potential to drive revenue with a refined mobile strategy is constantly growing. Mobile strategies must be created, enacted and reevaluated with every new OS and device. Mobile is an ongoing investment. Understanding the value of a mobile strategy and how each device can enrich a customer’s interaction with your business will lead to long-term revenue growth.

Cashing Out the Smartphone: How Mobile Commerce Is Changing Retail

This week, we wrap up our five-part series on Top App Development Trends for 2016 with an article on mobile commerce! For a recap, take a moment to review our last four articles on cross-platform app development, cloud integration, mobile security and IoT.

Smartphones have brought about unparalleled convenience in our daily lives. We are constantly connected to our rolodex of contacts with a variety of methods of communication. We can access all the information available on the world wide web anytime. We can find the nearest store of choice anywhere we go. For businesses, the mobile platform represents not only a major avenue for advertising, but an opportunity to give customers the ultimate convenience when purchasing products.

According to Internet Retailer, mobile commerce represents 30% of all US e-commerce and rose by 38.7% from 2014 to 2015. According to The Mobile Playbook, the absence of a mobile presence is the financial equivalent of closing a store for one day a week. Suffice to say, mobile commerce is only on the rise in the coming years. Here are the top mobile commerce trends for 2016:

INTEGRATING PHYSICAL WITH DIGITAL

Although the digital world is virtually omnipresent in households, the appeal of immediately receiving one’s purchases remains attractive. Retailers are offering an increasing variety of online + in-store options. Apps like Curbside have partnered with Target & Kroger’s to enable customers to skip the line when picking up their purchases.

PERSONALIZED MOBILE PAYMENTS DRIVE LOYALTY

Although services such as Apple Pay and Android Pay were once hailed as the future, they have had a hard time receiving mass adoption. This hasn’t stopped the impact of the mobile wallet on commerce. Starbucks drives 16% of transactions through its mobile app. Walmart Pay arrived in December 2015, and now Target is next in line to develop their own payment app.

WEARABLES ON THE RISE

According to Arc, there will be a 61% growth in wearable ownership in 2016. App developers and retailers are still plotting on how to capitalize on wearables. Many anticipate a hands-free shopping experience in which one can simply walk out with their purchases and have automatic charges through wearable devices. Wearables represent a major avenue for retailers to create innovative strategies and dictate trends to come.

MOBILE WEB DRIVES PURCHASES

While about 85% of time spent on mobile devices occurs in apps, the mobile web has actually proven to be a more successful in driving website traffic. Consumers spend 80% of their app time on their top 3 apps. The mobile web drives twice the amount of site traffic than mobile apps. With 82% of smartphone users looking to their phones in stores when deciding what to buy, many anticipate the mobile web to surpass apps as the largest revenue driver in the next few years.

This concludes our five-part series on Top App Development Trends for 2016! Follow the Mystic Media Blog for more awesome articles on app development, website design, strategic marketing and more!

Apple Pay Shakes Up eCommerce

One of the major features which defined iOS 8 as a success was Apple Pay. Combined with Touch ID, Apple Pay allows users to make purchases on their iPhone using finger-print scanning technology equipped on iPhone 5 and 6. Apple Pay has aroused its fair share of controversy from the banks, who claim Apple, in addition to Google and Paypal, is infringing on one of their core revenue streams. This post will explore the ins and outs of Apple Pay, it’s potential impact on eCommerce, and what it has to offer your business.

Let’s start with the basics. Apple Pay is a mobile payment system and digital wallet designed to make both in-store and online purchasing easier for the user. When purchasing items on a smartphone from iTunes, the App Store, or third-party apps, Apple Pay uses Touch ID for instant check-out. When purchasing items in-store, Apple Pay utilizes near-field communications so that, like in the digital world, all it takes is a fingerprint scan for a seamless check-out experience.

Apple Pay is not the first of it’s kind. Google Wallet, launched in 2011, was the first major mobile payment system. Google Wallet also utilized near field communications, bu Google Wallet, unlike Apple Pay, did not catch on in any big way. In fact, the recent surge in Apple Pay use has actually caused a resurgence in Google Wallet use.

One of the main differences between the two platforms is Apple Pay’s insistence on protecting the user’s private information. “We are not in the business of collecting your data,” said Apple’s Senior Vice President of Internet Software and Services Eddy Cue at the Apple Pay announcement in September. “So when you go to a physical business and use Apple Pay, Apple doesn’t know what you bought, where you bought it, or how much you paid for it. The transaction is between you, the merchant, and your bank.”

When you add a card with Apple Pay, it only stores a portion of your credit card information, along with a device-specific Device Account Number, but all of your personal information is encrypted. Apple Pay demonstrates it’s not only possible to have secure in-store mobile transactions on your iPhone, but  these transactions are actually even more secure than physical ones.

Apple Pay has been expanding rapidly. It launched with the support of McDonalds, Whole Foods, Nike, and Uber. Recently, ten more banks, including SunTrust, TD Bank North, and Commerce Bank all agreed to use the service. Apple says in a recent New York Times article it supports the cards of 90% of the credit card purchase volume in the US.

Statistics on Apple Pay point to staggering potential. According to MarketingLand, in September 2014, 49.7% of online shopping done on a mobile phone was on an iPhone. 81.6% of tablet e-commerce transactions are done on iPads.

So what does Apple Pay mean for eCommerce? For one, it makes secure purchasing easier than ever for consumers. There’s hope that given the increased competition in payment options, retailers could see decreased fees and improved profit margins.

Alex Martins, chief executive of the Orlando Magic, recently said to the New York Times: “One of the biggest pieces of feedback we get from our fans is that the food and beverage lines are too long… It keeps them from going to the concession stand because they don’t want to miss the action. This, and technologies like Apple Pay, will speed up our service.”

Retailers are also hoping for opportunities to team up with Apple Pay for promotions, however, this would require Apple to keep transaction data in their database, which Apple is currently opposed to for security reasons. As the service refines, it seems inevitable there will be exclusive Apple Pay deals and more of an effort to push consumers to utilize the service. The question is whether Apple Pay will eventually be able to take the next step and replace physical credit cards. Only time will tell.

Mystic Media is an app development and strategic marketing firm providing a host of services to clients, from Android and iOS Development, eCommerce, Web Design, and more. Contact us today by clicking here, or by phone at 801.994.6815