An old killer app rides again. Radio frequency identification will become a key component of the Internet of Things because it bridges the physical and digital worlds, enabling the identification of objects and linking them to the internet.

While the economy recovered and retailers grew more optimistic, 2014 was "the year of the POS breach," with many highly publicized attacks compromising millions of personal records. As a result, some of the largest and most popular retail brands were severely damaged.

Global online sales increased 20 percent last year, and the United States took the international lead over China.

Seeing what is happening to their customers and feeling the heat from possible threats, technology companies are increasing spending on security for their own systems, according to a survey of chief financial officers. Meanwhile, incentives to spend big on security are still in short supply for retailers and other private companies.