Market Trends & Examples

1. Indoor 3D, Cape Town Dec 2013 Tristian Lacroix IndoorLBS Market Trends & Examples

2. Focus on the indoor Airport Mall Subway Convention Hall Garage Campus Retail Store Stadium Casino

3. Businesses • $500B retail commerce will be conducted on mobile phones by 2015 • 70% of all brand / purchase decisions are made in-store (ABI, IDC Retail) • Loss of business: • 90% of shoppers say they have trouble finding things while shopping in store. • Over 20% of shoppers claim they leave a store without buying everything on their list because of difficulty finding items • 87% of retailers see value in using smartphones to drive traffic to the store compared with 65% last year (RSR Research) (c) Indoor LBS Retail Consumers • Don’t want to wait 1+ business days to receive an eCommerce purchase – they want the opportunity to experience it immediately, and buy it NOW. • Increasingly looking to their mobiles for shopping: finding the store, product, deal, directions, price comparison, etc. • 79% of smartphone owners use them to help with shopping • 73% of shoppers with smartphones favor using them to handle simple tasks in stores (e.g., finding a product) compared with 15% who favor interaction with an employee

4. Travel • Improve customer service • Way-finding inside terminals (reduce stress) • Passengers can plan their time inside airport and get info on gates, shops, restaurants and other services in a fun and interactive way • Monetize the opportunity • Target layover passengers with offers to buy products or services

5. Goals: • Airport wanted new revenue sources from its retail stores within the airport • Indoor location services for airport users (restaurants, parking, car rentals, customer loyalty program) (c) Indoor LBS Example Project – Airport

6. (a)  Auto wayfinding features • (i)  Geo-fencing – a virtual perimeter that triggers an alert when you pass through it. For purposes of this project geo-fencing can be utilized via a call to action message to the user. • (ii)  WiFi location technologies *** • See next slide (also presented in original presentation). • Our technology uses these sensors together with a WiFi signal map to estimate the position of the user. • No additional infrastructure needed - 100% software solution (no hardware needed) • (b)  Explain the technology required for each *** • Today’s smart phones are equipped with several motion sensors (accelerometer, gyroscope, magnetometer, altimeter, etc.), WiFi, and Bluetooth • (c) Describe the accuracy of the auto way-finding solution • (i)  Where am I? Accuracy 2-5 m (Android); 10-20m (iPhone) • (ii)  Show me the way: depends on map data: CAD/spatial files include scale, distances, etc. Data freshness/updates. Use case: Auto–Wayfinding

7. Indoor positioning with GPS not possible since satellite signals are not available indoors. Today’s smart phones are equipped with several sensors (accelerometer, gyroscope, magnetometer, altimeter, etc.). The solution uses these sensors together with a WiFi signal map to estimate the position of the user. No additional infrastructure needed - (100%) software solution. Accuracy 2-5 m (Android); 10-20m (iPhone) Indoor location technologies Sensor 1 Sensor Fusion Position Sensor 2 ………… WiFi Indoor Map

8. A gyroscope can be used to either measure, or maintain, the 3D orientation of a device. Indoor location technologies • Sensor fusion algorithm are able to fuse signals from the following mobile embedded sensors (9 axis + pressure sensor)and WiFi and Bluetooth 4.0 modules • A Compass tells the phone’s orientation relative to that derived from the earth’s magnetic field • The accelerometer can measure the magnitude and direction of the acceleration, and can be used to sense the orientation of the device • Indoor WiFi signals • Use of WiFi fingerprinting. • Indoor Bluetooth signals provided by beacons • Cheap to deploy, small in size • Battery operated beacons with an autonomy of 1.5 years • An altimeter or pressure sensor can be used to locate the user on a certain floor or level of a building

9. Transaction fees Advertising/sponsorship Third party vendors e.g. hotels/services Loyalty membership fees Revenue Generation Opportunities

10. (c) Indoor LBS Solution Components Indoor Location Providers Indoor Map Providers App Developers Content Providers Store Inventory Indoor Analytics Providers

11. Beacons use bluetooth 4.0, LE to enable proximity triggers ranging from approx. 5cm to 70 meters. Apple created the ibeacon API in iOS7 for developers to use, to enable these proximity services within applications. Bluetooth 4.0 is increasingly included in Android phones such as the HTC One and the Samsung Galaxy SIII and upward. Since Android Jelly Bean (4.3), Google has included support for BLE signaling industry support for the technology. iBeacons

12. iBeacon offerings allow a retailer or brand to introduce hyper location messaging and interactivity Beacons can be used for entry/exit messaging, check-out notifications, in-aisle promotional targeting iBeacons at apple stores

13. iBeacons bring Apple Stores to life

14. Ibeacons at Macys using shopkick

15. Ibeacons at Macys using shopkick

16. As indoor location gains traction in the Marketplace, bluetooth 4.0, LE completely redefines the user experience for contextual engagement. Offering a personalized, relevant, and intuitive experience to engagement will revolutionize verticles from healthcare to retail. Increased optimization reveals more opportunities for increased revenue. Will be offered “as a service”, in addition to hardware and integration costs. Why it is important LinkedIn Group

17. Indoor LBS Market ADoption 2013 Customers want “cool” technology Customers want solutions and convenience

18. Thank you Email: tristian@indoorLBS.com