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presented by Marc Jensen

April 2014

Trending the Future: Apple iBeacon

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Who is this guy?

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I’m Chief Technology Officer + Managing Partner

at space150

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We use technology to create amazing experiences that connect

people to brands

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Our mission is awesome: Destroy Convention to Create Demand

(see more at space150.com)

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Okay, let ’s talk iBeacon

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What is iBeacon?

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iBeacon is a new technology created by Apple to enhance location

services for mobile devices.

image source: Apple

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iBeacon was created to enable your phone to do things when you’re

close to a specific location

image source: Apple

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iBeacon was created to enable your phone to do things when you’re

close to a specific location

like alert you when you’re in front of this Apple Store

image source: Apple

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So, why did Apple create iBeacon?

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Shopping habits and consumer expectations are

changing quickly

Shopping isn’t what it used to be

sources: New York Times, Business Insider, USA Today

Retail foot traffic is downFoot traffic is down 50% in three years from 2010 to 2013. !Online commerce is having a large and permanent impact on the traditional retail environment. !!!!!!

source: Wall Street Journal

E-commerce continues to growDigital sales are growing at the expense of offline sales. !“growth is coming from existing online shoppers who are spending more time and money - and in a wider variety of categories - online” !!!!!

source: Mashabl

Change brings opportunityIn all this change, there are bright spots. While traditional malls struggle, the Mall of America is set to double in size, as they focus on the destination and the experience. !Omnichannel retail serves the wants of consumers that expect a brand to be present across all physical and digital channels.

sources: Fortune / CNN Money, Forbes

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iBeacon was created to connect physical to digital

image source: Apple

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Let’s take a closer look at iBeacon and Location Services

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iBeacon was announced and released as part of iOS 7

image source: Apple

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The primary goal of iBeacon is to enhance location services

image source: Apple

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You may ask: “Isn’t my phone great at determining my

current location?”

image source: Google

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Yes and no, depending on what you’re trying to do

Location Accuracy

We have incredible maps and services on our phones, but they’re limited by the existing technology they’re built on. !When I took this screenshot, I was actually in the building across the street, on the second floor.

image source: Apple

Precision

It’s not Foursquare’s fault, but they just don’t know exactly where i’m at. !I’m in the space150 Minneapolis office, and it shows “90 ft away”. !Current technology is great for finding a building, but problematic after that.

image source: Foursquare

Location Tech

The accuracy of this is about 30ft (10m), much worse in buildings and urban areas. !This location is determined by a combination of GPS, Wi-Fi and Cell Triangulation.

image source: Google

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Let’s look at a real world example

Apple Store App

Apple has rolled out iBeacon to all of it’s 250+ US stores. !If you have the latest Apple Store app installed, you can experience this yourself by going to a physical Apple Store. !

image source: Apple

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When you’re close to an Apple store, you’ll see a push notification that serves two main purposes: !

Bring the proximity of the store to your attention Show you what’s possible with the combination of the mobile app and the physical store

image sources: Apple

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mobile payments genius appointments events + workshops

image sources: Apple

Specific Location

Once you’re in the store, specific areas will trigger notifications: specials, new products, or anything else they’d like to highlight about the area you’re in.

image sources: Apple

Digital Payment

You can easily pay for products using your iTunes account and existing payment information. !This is a powerful way for Apple to leverage existing digital payment methods.

image source: Apple

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Apple is using iBeacon to connect physical to digital, streamlining the

existing in-store experience

image source: Apple

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What are the important details of iBeacon?

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iBeacon aims to improve location-based services through proximity.

Confidential and Proprietary space150 ©2013image source: Icomoon

Proximity and location are different, and the difference is key

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Mobile location is represented as a point and a radius of accuracy

image source: Google

Confidential and Proprietary space150 ©2013image source: Icomoon

Proximity is knowing that you’re close to a specific physical location

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Example: I’m in front of this coffee shop

image source: Colonial Warehouse

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Example: I’m at this display

image source: Martin Patrick 3

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iBeacon is not strictly limited to Apple devices

image source: Estimote

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this is an Estimote Beacon

image source: Estimote

iBeacon is not strictly limited to Apple devices

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How does iBeacon work?

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iBeacon is built on Bluetooth, the common wireless technology

image source: Bluetooth SIG

Bluetooth Low Energy

iBeacon is built using Bluetooth Low Energy, part of the latest version of Bluetooth hardware (version 4.0) !BLE is intended to use very little power, and has a realistic range of about 150 to 200 feet.

image source: Bluetooth SIG

Basic Example

You need a transmitter and a receiver. When a receiver detects a transmitter nearby, you can trigger an event. !The transmitter is a beacon, and it’s continuously transmitting a signal. !The receiver is an app on your phone that is looking for a beacon.transmitter

(“beacon”)receiver

(iPhone app)

image source: Icomoon

Proximity to a location

far beacon

receiver phone

near beacon

immediate beacon

With iBeacon, you can initiate actions that are appropriate for being in the “immediate vicinity,” “near,” or “far” from the beacon. These distances are not fixed, but are thresholds. Your specific needs, environment and hardware will determine this.

image source: Icomoon

Multiple Beacons

You can use multiple beacons in a single environment to trigger location specific events. !When an event is triggered, you can be confident about the proximity to the location. !In this example, beacons are at the entrance, in a department, and at the checkout counter, each can trigger appropriate events.

entrancecheckout

department

image source: Icomoon

App Required

iBeacon is opt-in. Users must have an app installed. !iBeacon functionality can easily be integrated into existing apps.

image sources: Apple

Beacons

Beacons are designed to be small, use little power, and last for a long time on small button batteries. !On the left is an Estimote beacon, they’re compatible with iBeacon, are $99 for 3, and last 1-2 years on the built-in battery.

Exposed

They’re simple inside - it’s basic bluetooth hardware and a battery. The actual devices themselves are built from simple components.

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Who is using iBeacon, and what are some uses for them?

Retail + Grocery

Safeway and Giant Eagle grocery are partnering with InMarket to roll out iBeacon to 200 stores.

image source: Techcrunch

Retail + Fashion

Shopkick plans to bring iBeacon to 100 American Eagle stores.

image source: Techcrunch

Sports + Entertainment

Major League Baseball is bringing iBeacon technology to more than 20 ballparks for opening day of the season 2014.

image source: Major League Baseball

Sports + Entertainment

The NBA and the Golden State Warriors are using iBeacon to target iPhone users. When guests arrive at the top of the escalators for the “nosebleed” seats, they’re immediately presented with an offer to upgrade their seat.

image source: Apple Insider

Automatic

Automatic is a bluetooth device that connects to your car to monitor and improve your driving (it’s like Fitbit for your car). !Automatic updated their device to operate as a beacon, opening the possibility for automatic payments (toll booths, etc).

image source: Automatic

Enhanced, more automated serviceMany apps benefit from location information. As an app creator, think about how this technology could benefit your app. !It used to be that you could determine that an app user was near your building - now we can know that a guest is in your store, or at a specific location

image sources: Google, Icomoon

Hospitality

Restaurants that offer ordering and pickup could improve the experience by notifying guest services automatically when customers actually arrive, streamlining the pickup experience.

image sources: Chipotle, Panera

Starbucks

Starbucks will be adding the ability to pre-order your coffee for pickup. !iBeacon would be the perfect technology to let the staff know a customer really has arrived and is in the store, and can also help initiate mobile payments, further simplifying that process.

image sources: Engadget, Starbucks

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Any competition? Yes.

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Apple first saw the potential of this tech, and created iBeacon. Other

companies are creating alternatives.

image source: Qualcomm

Android Support

Radius Networks is creating iBeacon hardware and software that allows Android to leverage very similar functionality. !The same exact hardware can be used for Apple iBeacon and custom Android (and other) platforms, simultaneously.

image source: Qualcomm

Qualcomm

Qualcomm launched it’s own version called Gimbal. The devices can be configured to work with Apple’s iBeacon, it’s own system, or work in other custom scenarios, across iOS and Android platforms.

image source: Qualcomm

Hospitality

Starwood is extending their existing mobile apps to allow hotel guests to open their room doors with Bluetooth powered phones and apps. !They’re testing in two locations now, and plan to support iOS and Android devices.

image source: CNN

Paypal Beacon

Paypal is launching the Paypal Beacon. !Using the same Bluetooth Low Energy technology, they’re building a custom version specific to their needs, to speed checkout at physical stores that accept PayPal. The proximity of beacons can help improve security and simplify the user experience.

image source: Paypal

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Let’s Summarize

Confidential and Proprietary space150 ©2013image source: Apple

iBeacon is a technology created by Apple that brings proximity awareness to mobile devices

Confidential and Proprietary space150 ©2013image source: Bluetooth SIG

iBeacon is built on standard Bluetooth technology

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Competing and custom alternatives are emerging

image credit: Qualcomm

Confidential and Proprietary space150 ©2013sources: Gigaom, Accenture, Washington Post, MITSloan

Consumers increasingly expect seamless digital to

physical experiences

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Physical and digital are no longer separate: it’s one big experience

image sources: Apple

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The concept is simple, but the details are very important

image source: Icomoon

http://www.space150.com/work

Reach out, we’d love to talk details !

Marc Jensen, Chief Technology Office + Managing Partner space150 Minneapolis, New York, Los Angeles

!marc.jensen@space150.com