Drivers and challenges of internet of things diffusion in smart stores: A field exploration

TL;DR

This paper explores the key drivers and challenges of IoT adoption in smart retail stores through an empirical field study, emphasizing security and privacy concerns impacting smart store transformation.

Contribution

It provides new insights into the practical challenges and drivers of IoT diffusion in retail, based on practitioner perspectives and real-world observations.

Findings

IoT security is a major challenge for smart store deployment.

Heterogeneity of devices complicates IoT integration.

Customer privacy concerns influence IoT adoption strategies.

Abstract

The digitally disruptive environment has evolved rapidly due to the introduction of new advancements within the field of smart applications. Applications of one of the most prominent technologies, Internet of Things (IoT), often appear in the retail sector, where smart services have transformed the customer experience holistically. Presented in this paper are the findings from an exploratory field study in the retail service sector, which drew on the views of experienced practitioners about the smart store experience and the associated changes. The paper presents an overview of the drivers of smart retail service diffusion and the relevant challenges, such as the business expectations and the heterogeneity of devices. The arising themes indicate that IoT security is a major challenge for businesses installing IoT devices in their journey towards smart store transformation. The paper highlights the importance of a secure data-sharing IoT environment that respects customer privacy as the smart experience in-store offers data-driven insights and services. Implications for research and practice are discussed in terms of the customer experience relevant to the identified challenges.