1. INTRODUCTION VERSION CHANGE HISTORY TEAM NAME TEAM MISSION MEMBERSHIP ROSTER BUSINESS JUSTIFICATION...

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1 ARTS White Paper IoT in Retail Charter v Status of this Document This document is an ARTS DRAFT Charter, for initial review by the ARTS IoT in Retail work team for comment and revision prior to full draft and review by the Technical Committee. Copyright National Retail Federation All rights reserved.

2 2 of 8 TABLE OF CONTENTS 1. INTRODUCTION VERSION CHANGE HISTORY TEAM NAME TEAM MISSION MEMBERSHIP ROSTER BUSINESS JUSTIFICATION VERSION 1.0 MISSION SCOPE... 5 In Scope for Version Out of Scope for Version DELIVERABLES REFERENCES OUTSTANDING ISSUES PROJECT ESTIMATES GLOSSARY... 8 Copyright 2015 NRF. All rights reserved. 2

3 3 of 8 1. Introduction This document serves as the ARTS IoT in Retail Work Team Charter and executive overview document. It has been developed following the ARTS Operations Guide. 2. Version Change History Event Changes Date Version 1.0 In Process Multiple Deliverables Team Name The proposed name change for this ARTS Work Team is the ARTS IoT in Retail Work Team. 4. Team Mission Author a Primer and set of Whitepapers describing the meaning of IoT to Retail. Provide examples to exercise the concepts. Define the vocabulary and introduce the NRF retail community to the impact IoT will have on their business. 5. Membership Roster Chairperson: Andy R. Mattice Lexmark, Intl. Members: Alan Voels Bart McGlothin Bill Tucker Brian Spracklen Carrie Wilkie David Dorf David Salisbury Debra Bacon Dennis Blankenship Dennis Gerson Ganapathy Kokkeshwara Gayla Todd PricewaterhouseCoopers Cisco Systems, Inc. Nordstrom, Inc. Total Communicator Solutions, Inc. GS1 US Oracle Corporation Star Micronics REI, Inc. Verizon Communications IBM Corporation Costco Wholesale Corporation Manthan Software Services Pvt. Ltd. Copyright 2015 NRF. All rights reserved. 3

4 4 of 8 Hedgie Bartol Jean Hillel Jerry Rightmer Jim Jones Joe Schneider Karen Shunk Kevin Peterson Kirstin Wright Lawrence Dunn Leonid Rubakhin Margaret Connors Matthew Kulig Michelle Covey Mikhail Shapirov Paul Gay Paul Rombach Peter Hurtubise Ravi Kota Richard Halter Richard Weiss Sergei Kalfov ShiSh Shridhar Stephen Sparrow Tim Hood Todd Shutts Veena Bandi Wendy Karhu Axis REI, Inc. Starmount REI, Inc. Fujitsu America National Retail Federation REI, Inc. Cumulus Data Services, LLC PCMS Epicor Software Corporation Nordstrom, Inc. Aisle411 GS1 US NCR Epson America, Inc. AT&T, Inc. Centril lululemon Athletica Inc. Association for Retail Technology Standards Pythian Nordstrom, Inc. Microsoft Corporation SAP Industries SAP SE Balance Innovations Costco Wholesale Corporation JDA Software Group, Inc. Contributors: 6. Business Justification IoT is coming. Retailers, solution providers and technology vendors need to prepare. The changing landscape will force retailers to reevaluate the way they do business. ARTS will provide expert guidance regarding how we think IoT will impact retail. This work will serve as the basis for future efforts to define standards in the Retail IoT space. We will define the space, build a common vocabulary and explore the impact on all aspects of retail. There is a mountain of data out there. Things will capture, track and interact with data. Infrastructure, applications and business process will all be impacted. Copyright 2015 NRF. All rights reserved. 4

5 5 of 8 The IoT Primer paper s purpose is to be a marketing summary, not the normal ARTS deliverable, but an NRF released primer built upon content authored by ARTS. The NRF marketing team will be made available to review copy and build infographics. Length of the IoT Primer should be 2 pages, and absolutely no more than 4 pages. A set of IoT Domain Whitepapers, 5-10 pages each in length, are needed to alert Business Process Owners (VP and C-Level) to what is coming, and provide guidance for planners to begin investigating the impact of IoT on their business. Retailers need a review of how various segments or operations will be affected by IoT. Are some sales operations vulnerable? What classes of products may be more affected than others? 7. Version 1.0 Mission Scope Impact of IoT on Retail In Scope for Version What is IoT? Interactivity Discoverability Autonomy (?) Definition of IoT terms related to retail. Carefully create a lightweight vocabulary. Do not redefine IoT. Instead, say what it is in a wide picture, describe why it needs their attention, and in the later works, ARTS could standardize how the data is used. "What does IoT mean to Retail?" with a link reference to a chosen standard definition. One single sentence teaser definition based on chosen standards, then go straight into "What it means to retail. 2. Infrastructure Applications Networks Bandwidth Storage Analytics Business process Data science (human resources, body of knowledge) Computing capacity Resources (electricity) *** Security & Privacy (needs special focus) 2. How can IoT help employees/companies be more efficient? Copyright 2015 NRF. All rights reserved. 5

6 6 of 8 operations efficiency device efficiency where does the intelligence reside consumer rules decision-making capability 3. How can it improve the customer shopping experience? Replenishment moves to the consumer Security/privacy issues 4. How will it change selling? Products you sell New categories of products Changes to how they are sold: more training, tools and infrastructure. Greater investment on the part of retailer to demo properly, answer questions, more engagement/high touch, demo infrastructure. Greater time investment on part of the shopper Out of Scope for Version 1.0 IoT devices outside the retail environment or retail interaction, except in the context of items being sold. Management of IoT infrastructure or family of devices, but planning for bandwidth, technology and expertise is in scope. Technical specifications and interface definitions Define the best practice implementation or communications technology. The technology will quickly change. Do not get locked on the current mainstream. Generic SOA or lightweight services architecture examination. Instead rely on the new ARTS Services Implementation Best Practices document to be that base. 8. Deliverables A. IoT Primer Audience: C-Level, targeting CEO. Purpose: Call to action marketing summary. Not an ARTS deliverable, but an NRF released deliverable built on content written by ARTS. Size: 2 pages including all content and ARTS branding, max 4 pages. The more infographic the better. How IoT applies to the four proposed domains. Value proposition, KPI. Risk and impact of retailer not participating. Diagrams (infographics) References to further content. Copyright 2015 NRF. All rights reserved. 6

7 Social/mobile paper Data Privacy paper IoT Domain Whitepapers 7 of 8 Audience: Business Process Owner Size: 5-10 pages each B. IoT Customer Experience Whitepaper In-store shopper marketing At-home and on-the-go shopper interaction (IoT triggered need) Discussion of technology (RFID et al) - in or out of scope? Beacons is the hot topic at the moment that needs special attention. Ethical data practices (Creepy factor) In-store demand, behavioral tracking and influence Value prop to customer for participation Reference Social/Mobile paper C. IoT Central Management Whitepaper Information Ecosystem Business Analytics Data broker Retailer as consumer, as provider Real-time event stream processing D. IoT Store Operations Whitepaper If a failure of any THING has the potential to negatively affect your operations or your customers. It needs to be monitored and ideally, controlled. In-store efficiencies environmental Loss Prevention Security (of systems, of facility) E. IoT Supply chain (B2B) Whitepaper Intelligent inventory management Distribution Center Loss Prevention Security & retailer privacy - "Nefarious Data" reference FIM paper Copyright 2015 NRF. All rights reserved. 7

8 9. References Fresh Item Management paper Services Best Practices report 10. Outstanding Issues 8 of Project Estimates <Planned Deliverables> Proposed schedule for development of this specification. Deliverable IoT Primer IoT Customer Experience Whitepaper IoT Central Management Whitepaper IoT Store Operations Whitepaper IoT Supply chain (B2B) Whitepaper Estimated Date Actual Date 12. Glossary <Terms used in this document, not the definitions that will be in the deliverables. Only a fast lookup for terms used in this document.> Term Central Management Information Ecosystem IoT Thing Internet of Things Definition Copyright 2015 NRF. All rights reserved. 8