Bill Oakes

June 2nd, 2014

The Consumerization of Retail

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Consumerization of RetailOver the last few weeks, I’ve been working on a couple of solution briefs that talk about “the consumerization of retail”. Odd turn of phrase, right? After all, isn’t retail all about consumers? But don’t shoot the messenger because this isn’t just a term I’ve dreamt up – it’s been lurking around for a while but now it’s quickly emerging from the dark corners of the Web.

The consumerization of retail is all about retailers transitioning to provide a single face to you, regardless of how you’re viewing them. A great example is Amazon. When I put something in my shopping cart via my desktop browser (yes, those do still exist), then grab my iPad or my Nexus 7, my shopping cart is intact – as is any list of favorites or even recent searches. So no matter what channel I use, I see a single face. Millions of smaller companies partner with Amazon, recognizing that this kind of capability means that their products might get put into a shopping cart that they might never have had access to if Amazon didn’t offer such a great partner program (exposed through APIs, of course). BTW, when I say millions, I’m not kidding. According to Amazon, there are over two million sellers in the Amazon Marketplace – 65% more than a year ago (not a bad growth rate).

eBay is another online retailer that “gets” the omni-channel approach which consumers are beginning to take for granted (an approach that will discussed in detail during our upcoming webinar). According to eBay’s 2013 Annual Report, eBay Stores did $6.7 billion in 2013, an 11% increase over 2012 – and 40% of those purchases had a mobile touch (meaning that the consumer may have viewed the items multiple times and that at least 40% of those times, mobile was involved).

Certain brick-and-mortar stores, such as Best Buy and Walmart, also understand this approach. With these retailers, you can now use your computer and/or mobile device to browse, place an order and pick up your purchase at your local store (and you can seamlessly switch from computer to device).

Why would a retailer want to allow that, instead of “trapping” you in their store? Easy: in the mobile age, consumers don’t want to be forced to continue using the retailers’ paradigm. They want the freedom to choose how they view items. How they buy items. How they take ownership of items. Consequently, retailers are finding that they have to offer this level of freedom, to stay competitive. That’s why it’s called “the consumerization of retail”. Retailers are having to accept that mobile consumers want – and increasingly expect – to take control of the shopping process.

Those retailers that adapt to the consumerization of retail paradigm are the ones that will survive (if you don’t believe me, look at the roadkill on the consumerization highway – Borders, Circuit City and Blockbuster are three examples of brick-and-mortar operations at the top of their game that refused to adapt and failed to survive the transition to the Web, which was just the first step toward the consumerization of retail).

The consumerization of retail is a rising force. Brick-and-mortar and conventional Web shopping sites that don’t embrace this are doomed to become niche (or non-) players in the next generation of online retail.

March 26th, 2014

Of Monsters & Men & Machines

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Category API Security, IoT, M2M
 

Monsters Men Machines

In my last post, I talked about IoT and its nascent emergence into our everyday lives, with products like Anki Drive and the Nest Thermostat beginning to get a foothold. I also talked about the need for security, as IoT becomes more present in our day-to-day lives. Today, let’s talk about a few real-world examples where security was an “oh, we didn’t think of that” kinda thing.

Implantable medical devices (think pacemakers, for example) are absolute lifesavers for virtually all recipients. And, as you would suspect, they need to be monitored – usually at a doctor’s office. BUT what if the recipient lives in a rural area (e.g. anywhere in Montana, North/South Dakota, Wyoming)? A quick visit to the office might be out of the question. But there’s an app for that (you knew that was coming, right?) Pop an IP address and wireless on that pacemaker, plug that address into the doctors app and voila! Monitoring via the Internet! Yeah! Only thing is… suppose somebody got a hold of that IP address? And suppose that somebody had access to said app? Monitoring could easily become something far more nefarious – bumping up the heartbeat, slowing it down (either of which may have the same result, mind you). Not too cool.

Or how about using a baby monitor with video? New parents are always going to want to have complete unfettered access to their precious being – and the newest generation of baby monitors not only delivers audio but video and yes, with an IP address, there’s an app for that too! So mom/dad can be anywhere and keep complete tabs on the fruit of their loins. Of course, in the wrong hands, with an IP address and no security, that baby monitor all of a sudden becomes an audio/video surveillance tool. No big deal unless, say, that new mom or dad works in the President’s office, NORAD, banking or any one of a number of businesses where you really wouldn’t want to let sensitive information out via casual conversation around a dinner table – with the baby monitor catching every word.

Finally, how about the car – a ubiquitous item (in many countries) of which the newer ones are just chock-full of various computer systems, some of which talk to each other, some of which don’t, some of which are supposed to talk to each other but don’t (anyone played with the Cadillac CUE lately?). All these systems are there to make the driving experience either better or safer. One of these is simply brilliant – the Tire Pressure Monitoring System (TPMS) reports pressures to the primary automotive ECU, keeping the owner informed of poorly-inflated tires (when appropriate). By definition, these systems have to be wireless – and unfortunately, they are completely unsecured. What if someone was within range (say the car behind you) and used the same set of APIs that power the TPMS to send invalid data to the ECU – thereby potentially shutting down the car or, worse, making it unsafe?

All of these examples sound outlandish, right? And yeah, they are.

Oh and they’re also all true. The remarkable Robert Vamosi details these exploits, along with many others, in his phenomenal book When Gadgets Betray Us (available on Amazon here). Writing at a layperson’s level, Vamosi details time and time again how the emergence of IoT consistently takes security for granted or ignores it completely. It’s a scary bedtime story but worth reading. And it’s worth taking note of the key lesson: In IoT, security is very, very important.

March 10th, 2014

The Internet of Things – Today

Anki Drive CarA quick intro: I’m Bill Oakes, I work in product marketing for CA Layer 7 and I was recently elected to write a regular blog about the business of APIs. I’ve been around the block over the years – a coder, an engineer… I even wrote a BBS once upon a time (yes, I’m pre-Web, truly a dinosaur – roar!) But now I “market things”. That said, I still have a bit of geek left in me and with that in mind, this blog is going to focus not so much on the “what” or “how” when it comes to APIs, their implementations and how they affect businesses/consumers but rather, the “why” (which means, alas, I won’t be writing about the solar-powered bikini or the Zune anytime soon – I mean, really… why?)

For an initial first post, I thought I’d take a look at the Internet of Things (IoT) because it’s something no one else is really discussing today (cough). We are beginning to see the actual emergence of nascent technology that can be called the IoT. First, I’m going to take a look at one particular example – one that’s actually pretty representative of the (very near) future of IoT. Yes, I’m talking about Anki Drive (and if you haven’t heard of Anki Drive, you really should watch this short video).

What’s amazing about Anki Drive cars is that they know WHAT they are, WHAT their configuration is, WHERE they are, WHERE you are… Five hundred times a second (in other words, effectively real time), each of these toy cars uses multiple sensors to sample this information using Bluetooth Low Energy, determining thousands of actions each second. Oh… and they’re armed!

Equally amazing is the fact that kids of all ages “get it”. (By “kids”, I of course mean “males” – as once males hit 15 or so, they mentally stop growing, at least according to my wife. Although, I’ve seen many women enjoy destroying other vehicles with Anki too… but I digress.) Players intuitively know how to use the iOS device to control their cars and after learning the hard way that the “leader” in this race really equates to the “target”, they adapt quickly to compete against true artificial intelligence (AI) and each other. It really is an incredible piece of work and is absolutely the best representation of the IoT today.

So, you ask: “What does this have to do with moi”? Well, imagine if your car could do this kind of computation in real time as you went to work. Certainly, Google is working aggressively on this track but Anki lets you get a feel for it today. (And I’m fairly certain Google is not going to provide weaponry its version.) Still, the real-world application of this technology is still a ways away. Let’s reign in timeframes and take a look at what is happening with the IoT in other industries today.

Imagine that your appliances knew about and could talk to each other. Google, though its Nest acquisition, is working on this with its learning thermostat. My first thought on the Nest was something along the lines of: “What kind of idiot would spend $250 on a thermostat when you can get a darned good programmable one for around $50?” But then Nest introduced the Protect. Simply an (expensive) smoke detector with CO detection built in. Big deal, right? Except that if your Nest Protect detects CO, it makes a somewhat logical assumption your furnace is malfunctioning and sends a command to the thermostat to shut down said furnace. That is the power of the IoT in the real world today. So I bought into Nest (thus answering that previous question) and, yeah, it’s pretty cool – not nearly as cool as Anki Drive but then Anki really doesn’t care if my furnace has blown up and Nest does.

As we see more and more real-world introduction of functional, useful IoT solutions, these solutions will all have one thing in common: they will use APIs to communicate. And what IoT will absolutely require is a solution that ensures that only the right devices can communicate with other right devices, in the right way, returning the right results, with no fear of Web-based (or, technically, IoT-based) threats, bad guys, MITM etc. As solutions roll out, it’ll be interesting to see how many vendors remember that security and performance are not options in IoT – they are 100% essential.