FEBRUARY 20, 2018

The Consumer WHAT IS THE CONSUMER INTERNET OF

THINGS (C-IoT)?
Internet In recent years digital transformation has gained serious momentum. Computing
moved beyond the desktop and into our pockets, and this evolution continues at
of Things breakneck speed into the next era of Internet usage. Some call it “Industry 4.0”
or “machine-to-machine communication,” but it is most commonly referred to
Melanie Nuce, as the Internet of Things (IoT).
Senior Vice President, IoT encompasses the many objects, smart devices, machines, consumers,
Corporate Development, patients, and services being increasingly connected to solve problems and create
GS1 US convenience in new and more effective ways. In the near future, this increased
connectivity will facilitate unprecedented automation, visibility, and access to
services. In the simplest terms, whatever can be connected will be connected.
What is the Consumer
Internet of Consumer-IoT (C-IoT) includes a variety of integrated interfaces between people
Things (C-IoT)? and things—including sensory inputs from the consumer and also technologies
communicating with each other that are invisible to the consumer. For every
1 voice assistant that takes its verbal cue from consumers to reorder dog food,
for example, there could very well be a more automated IoT sensor that adds
The Evolution of IoT another package to a virtual shopping cart just as the kibble runs low. C-IoT is
1 about facilitating rich, ongoing experiences between a consumer, his/her products,
the brand, and the retailer, and connecting those products with data and services
The Role of Standards via the Internet, far beyond the point of sale.
in C-IoT
With C-IoT suggesting in part that consumers may give up their own autonomy
2 in favor of ultimate convenience, it represents a fundamental shift in the way
commercial ecosystems interact. How society engages with each other, how
A Bag’s Life” – businesses engage with their customers, and how consumers solve everyday
A C-IoT Example challenges will be improved via technology in exciting new ways.
3
THE EVOLUTION OF IoT
Collaborate Today,
Though IoT has been discussed in technology circles for decades, to the general
Innovate for Tomorrow
public it may still be considered a concept only seen in science fiction movies.
4 Remember the scene in the 2002 movie Minority Report when Tom Cruise is
subjected to a barrage of personalized advertisements as he walks down a single
hallway? In this scenario, it appears that IoT-like sensors capture the protagonist’s
retinal scans to activate tailored offers for beer, clothes, and travel on the wall as
he walks.

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 While IoT has not yet reached this level of ubiquity, it is already offering us a variety
of everyday conveniences—from smart refrigerators and thermostats to Amazon
Dash Buttons. According to recent research from Thales, an estimated 94% of
companies are implementing some kind of IoT technology in their organizations.
IoT has steadily evolved through the development of a number of related
technologies all working in concert to solve a consumer or business challenge.
“Collaboration on For example, the Auto-ID Center at the Massachusetts Institute of Technology (MIT)
the way IoT will began groundbreaking IoT work in 1999, stating that radio-frequency identification
(RFID) tagging should be a prerequisite for IoT. Today, in some IoT settings, such
grow and how as an intelligent retail outlet, RFID is part of an ecosystem of other technologies
such as near field communication, Wi-Fi and Bluetooth. One Levi’s store in San
data will circulate Francisco has become a brick-and-mortar IoT proof-of-concept. With RFID tags on
through many every single item on the shopping floor, data is fed through cloud-based analytics
engines, providing valuable insights back to the retailer, such as inventory status, item
disparate systems popularity and shopper movement.

is critical, given While RFID deployment is just one small part of an IoT enabled-world, it has
demonstrated the need for interoperability and streamlined processes for IoT
its projected to thrive. According to recent U.S. Department of Commerce research, there is a
need to “advocate for and defend a globally connected, open, and interoperable IoT
rapid scale.” environment built upon industry-driven, consensus-based standards.” Collaboration
on the way IoT will grow and how data will circulate through many disparate
systems is critical, given its projected rapid scale. According to Gartner,
there will be almost 21 billion connected devices by 2020, up from 6 billion in 2016.
Such a massive increase at rapid speed demands a unified architecture that enables
compatible products, brands, retailers, and consumer applications.

THE ROLE OF STANDARDS IN C-IOT

With so many different platforms and possibilities, everything connected will require
a unique identity that spans both the physical and digital domains.
Historically, product identity consisted of the standard U.P.C. number or Global
Trade Item Number (GTIN), along with any associated master data and logistics
information that drove efficiencies in B2B supply chain operations. With the advent
of IoT, more detailed information about each individual item that connects to the
item’s digital counterpart is required to meet consumer expectations, drive more
efficient business processes, and compete in the digital age.
Enter the concept of serialization. Item level serialization extends the benefits
of basic unique product identification further to meet the needs of an IoT
environment. Serialization offers the possibility of issuing a unique identity for every
individual item in the production line and unifying it with a digital identity.
Digital metadata applied to the unique identity of an item might include:
- Product history: The date, time, and location of production, its source
components, list of ingredients and sources, production methodology and
equipment, instructions for proper shipping, handling, and storage, logistics
history in the supply chain.
- Product documentation: Instruction manual and troubleshooting guide,
product warranty, legal disclaimers, and regulatory documentation,
certification of authenticity, contact information for repairs and returns.
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About CSCMP Hot Topics
Issues of CSCMP Hot Topics may
include early results from ongoing
research being conducted for CSCMP
or other organizations; new supply
chain practices, thought-provoking
ideas, or emerging trends; discussions
of changes in the broader business
and regulatory environment that may
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- Usage, ownership, and repair history.
- Ethical context: Certificates for fair trade, organic, non-GMO, cruelty-free claims
- End-of-lifecycle data: Instructions on how and where to return the product for
disposal and recycling of components.
With the need for expanded identification capabilities, comes the issue of trust.
How can the data transmitted be deemed trustworthy with such little human
interaction? The GS1 System of Standards is uniquely positioned to provide
companies with the strong foundation they need based on nearly 45 years of
enabling global commerce. GS1 Standards allow for any company—from large
multinationals to small startups—and their individual products to be accurately,
authentically, and persistently identified. This is a fundamental requirement of C-IoT.
With standards helping companies connect the flow of data to the movement of
products outside of their own proprietary systems, they are taking the crucial first
step toward the interoperability of IoT.
“A BAG’S LIFE” – A C-IOT EXAMPLE
In the supply chain world, it can be difficult to imagine influencing consumers after
the point of purchase. Virtually all operations are set up from “source to store”
simply because we have had few opportunities until now to reach beyond the
checkout line (or virtual cart, in e-commerce settings).
For example, consider the journey of a piece of luggage. First, we are familiar with
the pre-purchase phase—the consumer searches, discovers and compares suitcases
online, using social media platforms, search engines, and retailer websites. In a C-IoT
scenario, the bag would have an embedded RFID tag, which, upon purchase, is then
assigned to the consumer’s home address. The item is tracked and shipped with an
assist from an RFID tag as well, enabling the retailer to be transparent about its real
time journey to the consumer’s door.
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 The real C-IoT opportunity comes once she officially owns the bag and consents
to participate in post purchase interactions. The suitcase’s tag is recorded on her
phone to confirm authenticity. A voice-controlled device registers the suitcase’s
warranty. From there, she can even assign privacy protections to the bag and
register it with her preferred airline in preparation for a business trip. When she
arrives at the airport, she can hand over her suitcase without waiting in line, as the
“The next few C-IoT environment can automatically verify its destination and ensure it is properly
sorted. When she arrives at her destination, the consumer receives an alert on her
years will cause smartphone that the suitcase is on the baggage carousel, ready to be picked up.
many business Examples like these are not too far off into the future if the various industries with
vested interests in C-IoT can move toward more externally-compatible systems
leaders to seriously of identification and data exchange.
consider their COLLABORATE TODAY, INNOVATE FOR TOMORROW
companies’ The next few years will cause many business leaders to seriously consider their
longevity and companies’ longevity and where they fit into a C-IoT world. Rather than play a
passive role and allow disruption to act upon them, forward-thinking companies
where they fit into must actively collaborate with trading partners to plan for the future. Now is the
time to rethink legacy systems and reinvent long-established procedures from the
a C-IoT world.” industrial era for a new era of ubiquitous connectivity.
Melanie Nuce, Senior Vice President, Corporate Development, GS1 US, has
more than 20 years of experience in retail technology. She oversees a team that
investigates new technologies, partnerships and investment opportunities to increase
the relevance and reach of GS1 Standards in e-commerce, mobile, social media and
supply chain business processes. More information is available at www.gs1us.org.

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