The Internet of Things: Revolutionizing the Retail Industry

THE INTERNET OF THINGS: REVOLUTIONIZING THE RETAIL INDUSTRY

ABSTRACT

 The internet has already connected people with people. Its reach is growing faster to modify even the way things are connected to each other. Internet of Things is transforming and revolutionizing every aspect of our lives. This technology (IoT) has evolved, which connects different devices through sensors, software, and electronics for seamless information sharing. Retailers ,with the adoption of IoT technology they are opening up all possible delivery channels to ensure smooth shopping experiences for customers. Along with exploring innovative delivery services, the IoT technology is also used in the retail sector for improving e-commerce and in-store experience of shoppers. 78 percent of retailers agree with the idea of implementing IOT in retail industry to improve the level of production in store.

 Internet of Things helps them to track the store visitor and provides them with  immediate alert to employer if a visitor needs assistance. Other customer-related information is gathered using this technology by using previously visited data or it creates a new data about the visitor. Sensors fixed at dissimilar place of a store can follow shoppers’ actions, and remain employers on their toes to help them as soon as they need any help.

KEYWORDS: Connect sensor, adoption, e-commerce, in-store, visitors.

1. INTRODUCTION

 Internet of things is described as an open and for the organization and communication between physical and digital objects comprehensive network of intelligent things that have the capacity to auto organize, share information, data and resources, recting and acting in face situations and changes in the result. The Internet revolution has profoundly impacted our lives. Not only has it fundamentally changed the way businesses operate, but also the way we live. Today, we are witnessing yet another technology and data-led transformation — Internet of Things (IoT), which is transforming almost every industry, including retail. These “Things” that are connected to the Internet — machines or devices with smart sensors — are capable of collecting and exchanging observational and transactional data with each other, making them seamlessly interconnected. The data gathered from IoT can be utilized to provide insights, trigger actions and control outcomes — all in real time with or without any human intervention.

2. IMPROVING THE CUSTOMER EXPERIENCE

 Many industry can already take off customer understanding—as seen in online ads that quickly be a sign of your latest purchases— but the IoT assure something much more reliable and important to the individual. What’s come about now is that every experience is eye-catching a digital experience as ordinary “things” turn into intelligent devices. These occurrence are combine into what some are calling the “Internet of Me,” which explain an unified environment in which businesses are building products and services to be planned for, created for, and particularly centered on the individual.

 Consumer adoption of IoT devices is likely to rise rapidly: The “State of the Internet of Things” study is founded that almost two-thirds of clients intend to purchase a related home device by 2019, while ownership of wearable technology is predictable to double year over year in 2016.

 This technology provides a chance to connect to the physical and digital worlds, allowing bidirectional, real-time interaction with consumers both inside and outside the store. The gradually more ubiquitous smartphone will be the hub for these communications. One method is all the way through location-based beacon technology, which retailers can use to communicate directly with customers as they enter the store.

 Retailers can leverage the copious amounts of data produced by these interactions to improve the customer’s in-store experience. Sensors are used to track the path of the customers throughout the retail store an example for this technology, can help managers improve store layout and merchandise placement strategies. Hugo Boss has already deployed heat sensors in its clothing stores to track customer movements, which helps managers place premium products in high-traffic areas

  FIG 1:Flow of an IOT installed retail industry

3. OPTIMIZING SUPPLY

 The Industrial internet sector created a new revolution in the field of cloud data , mobile, big data and other technologies to improve the operation efficiently and effectively by integration physical and technical world. By 2030 the global economical level gets increased by $14 trillion in the industrial internet sector of retail.

 Those connected devices provide the users and retailers helps to optimize operation in the in-store activities in facing more complex supply chain and increasing digital usage. An example for this RFID technology which can improve the precision of inventory tracking. Data visualization technologies make it easier for employees to track products across the supply chain. This help the customer to extend the service and allowing them to track all the details within the store activities in the production and distribution process.

 Managers might initiate to alter pricing in real-time, using Internet-enabled smart tags to lesser prices on promotional or low-turnover items or increase pricing on higher-demand items. A fully included pricing system would help retailer improve organization of prices involving the shelves and the registers and also across channels, to verify prices are reliable between online and brick and mortar stores.

  Other IoT devices can be connected inside the supply chain to additional develop store operation and help decrease cost. For example, IoT-enabled sensors verify store managers to check lighting and temperature control and regulate set to improve customer ease and maintain more cost-effective energy usage. Using sensors to computerize many of the functions that employees at present have to do by hand, such as track inventory or altering prices on individual items, gives sales associates more time to spend interact with customers—additional improving the in-store experience.

4. CREATING NEW CHANNELS

 The original power of IOT lies in the opportunity it provided to retailers to generate fresh income streams or, in some cases, build completely new channels. We’re previously seeing examples of incremental revenues retailers can help attain by increasing into new channels or create new, high-margin product category for the emerging “connected home.” Household appliance home security and console products, even health and wellness products are all fitting part of the Internet of Things ecosystem.

  The center was planned with an release interface so that manufacturer could integrate their products with the platform. Iris puts Lowe’s in direct competition with telecommunications providers such as AT&T and Verizon, while opening up new opportunities for teaming with manufacturers to integrate their products with Iris. Other platform examples include Home Depot’s Wink and Staples’ Connect. Retailers in other retail sectors, such as grocery, could potentially build or partner with these platforms as well. Connected platforms would give retailers another direct channel to customers, generating a potential gold mine of customer data—information associated with almost every aspect of the household, from utility usage to consumption trends. The retailers provided with information are helped to drive more aimed offers or, by combing connected platforms with previous e-commerce channels, recommend new services such as automated replacement of products based on the customer’s consumption or by monitoring perishable dates.

FIG 2:Capitilizing on emerging technology to create an empowered workforce

5. MAKING THE INTERNET OF THINGS A REALITY

It’s significant for retailers to judge taking steps now to lay a foundation for IoT support later. Specifically, they’ll need to think about building new capabilities in two key areas:

      ORGANIZATION

 One of the the majority significant portion of inspiring the IoT-enabled plan is make certain element right culture, organizational structure, governance and talent survive within the company. Business and IT leadership must work as one to identify chance to influence technology and make sure a strong company between IT and the business, allowed by executive leadership, to quickly bring new ideas and solutions to market.

Key organizational elements required for IoT success

1. Culture

• A obvious appreciative of the business plan to confirm that IoT-enabled answer are consistent with industry plan

• An approach that prioritizes the contact and probable benefits of IoT reserves in the order of customer wants

• A compliance to quickly test—and fail—in order to find the right mix of solutions and capabilities

2. Governance

• decrease silos among industry and IT proposal associated to IoT by construct cross-functional project side cover IT, Marketing, Operations and Supply Chain

 • decrease interior opposition for resources and skill

• Prioritize income improvement vs. cost drop chance for IoT (e.g., use cost reduction benefits to fund revenue enhancement initiatives)

• approve supple improvement method to get better operation times for new IoT-related functionality

• generate fresh confidentiality rule that suspiciously report for the new connection businesses will have with customers and their information and how they will interact in the real planet

6. TECHNOLOGY

 A base of methodological ability is critical to enable the IoT plan. IT teams will require to construct off of presented funds in key region such as big data/analytics, in-store technology infrastructures and interior and customer-facing application to take benefit of the wealth of data produce by IoT devices, while ensure that the proper connectivity and security foundations are in place to support IoT-enabled scheme.

Foundational technology capabilities required for IoT success

1. Big Data / Analytics

• Compatibility and use of presented data warehouse and database answer for IoT applications

• On-premise and proprietary data management vs. cloud solutions to support IoT analytics

• Middleware solutions and data interchanges that optimize speed of queries for real-time analytics

• In-memory computing

2. Infrastructure

• Bluetooth LE Beacons that identify and send messages to registered consumers and unregistered devices that respond when the customer enters a store

• RFID for inventory management • Network security policies and services to ensure customer data is secure across the entire supply chain

3. Applications

• Web services/APIs that define how devices send, receive and process information

• API management strategy to provide the business with API monitoring and visibility capabilities

• App factories

• Development and debugging tools

• Embedded operating systems

7.         REFERENCES

• https://www.google.co.in/?gfe_rd=cr&ei=6p4LWIfrGMaL8Qft7Zb4CQ&gws_rd=ssl#q=revolution+in+retail+industry+using+iot
• https://www.accenture.com/_acnmedia/Accenture/Conversion-Assets/DotCom/Documents/Global/PDF/Dualpub_14/Accenture-The-Internet-Of-Things.pdf