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Digital Innovators: Internet of Things

June 2019

In recent years, the Internet of Things has become one of the most impactful technological developments in all of digital commerce, and will remain so for the foreseeable future. Due to the affordability of smart speakers like the Amazon Echo and Google Home, consumers have welcomed voice assistants into their life, further enabling their expansion to everything from appliances to thermostat systems. Companies profiled include Facebook, Miele, Hilton, Quip, Huawei, MIRROR and Harman.

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This report comes in PPT.

Key findings

IoT devices have gone from futuristic to commonplace in the last three years

With the explosion in the popularity of smart assistants, consumers have become more open to the idea of a connected home. Connected devices previously thought to be out of reach for the average consumer, like smart appliances and Wi-Fi enabled vehicles, are now within reach and, in some cases, even expected.

Smart speakers make connectedness more of an expectation than a luxury

Approximately 32% of US homes have a smart speaker, such as the Amazon Echo or Google Home. These speakers allow many consumers to control their basic home functions with just a few words. Initially, this meant turning the lights on and off, or turning up the music, but now these devices enable the ordering of dinner, adding items to a grocery shopping list, and checking what is already in a shopping cart. Smart speakers are expected to continue growing to become a vital medium for digital commerce, just like smartphones or laptops.

Security risks still represent a barrier to IoT adoption

Internet-connected devices offer convenience and efficiency for consumers worldwide; however, with convenience comes certain risks. Many IoT devices are accompanied by mobile applications and in-app or in-device purchases. Whenever payment or personal information is involved, there is a risk of it being compromised or even sold. Cameras and listening IoT devices add another level of risk, as there have been cases of devices listening in on conversations to create future targeted marketing ads.

IoT devices will continue to move beyond the home and penetrate every part of modern living

Going forward, internet-connected devices will continue to grow in popularity and become a normal expectation among the mass population. Large hotel chains and leading vehicle manufacturers have already begun incorporating IoT devices into their customer experiences, and Internet of Things devices are likely to move further into areas such as foodservice and travel.

Scope of the Digital Consumer
Key findings
What is the “Internet of Things”?
The Internet of Things has to the potential to reshape commerce
Internet of Things devices help consumers and producers alike
Portal: Facebook finds success in hardware with new IoT device
Blue Horizon washing machine: smart appliance accessibility with rental
Bbot overhead delivery: IoT serves the restaurant industry
Hilton: connected smart rooms bring smart home convenience to travel
Quip: high tech toothbrush introduces subscription model to dental care
Huawei AI Cube: smart speaker goes outside of the home
Pebby : pets take part in the IoT market
Moodo : connected diffuser spreads the scent of innovation in home care
MIRROR: digital gym reflects new IoT trends
Harman Spark: plug in to the future of smart vehicles
IoT is expected to most impact customer engagement in the near term
In the future, more commerce choices will be aided by machines
Greatest barriers to the future uptake of passive consumption


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