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Connectivity for IoT


Published on

BearingPoint’s “Connectivity for IoT” (Internet of Things)
approach supports industrial customers launching IoT based
solutions. Our accelerator aims to cut time and to reduce costs
to design and deploy mobile connectivity ecosystems. Our
customers will take advantage of BearingPoint’s cross-boarder
IoT experience.

Published in: Internet
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Connectivity for IoT

  1. 1. Connectivity for IoT A BearingPoint Accelerator BearingPoint’s “Connectivity for IoT” (Internet of Things) approach supports industrial customers launching IoT based solutions. Our accelerator aims to cut time and to reduce costs to design and deploy mobile connectivity ecosystems. Our customers will take advantage of BearingPoint’s cross-boarder IoT experience.
  2. 2. Contents Market Drivers Our Approach Client Benefits References Contact Connectivity for IoT | A BearingPoint Accelerator
  3. 3. Connectivity for IoT | A BearingPoint Accelerator Competitive pressure Complexity Aligning product live-cycles Time to marketCompetitive advantages Participation in IoT ecosystem is “a must” for manufacturers of consumer and industrial products nowadays. IoT enables the use of new categories of digital products and allows integration into new automated workflows like predictive maintenance. IoT products combine communication hardware, SIM cards and mobile telecommunication services. Newcomers to the IoT market place have seldom sufficient hands-on experience with the latest mobile technology. Regional regulations and restrictions are increasing the complexity. Industrial machines and some consumer products (i. e. cars) are being utilized for a number of years. Mobile technologies (e. g. modems, SIM features) are changing at shorter intervals. IoT providers need to design a connectivity approach which not only works today, but also tomorrow. IoT connectivity solutions that fit only one application category is potentially (too) expensive or unsuitable for a different category. Choosing the right connectivity approach could create a competitive advantage. Due to the increasing competition on the market, industrial customers have to cut time to market. Accessing external know-how regarding connectivity set-up allows for the reduction of time for tests and deployment. The launching of new IoT based solutions in international environments by industrial customers has met numerous challenges while aiming to enable cost-effective mobile connectivity tailored to actual needs. Different IoT application classes set specific requirements regarding availability, bandwidth, latency etc. These requirements have to be mapped onto off-the-shelf solutions by the manufacturers of communication hardware (routers and modems), SIMs, and mobile network operators (MNOs) Market Drivers
  4. 4. Connectivity for IoT | A BearingPoint Accelerator IoT applications are usually built for long term use – often 10+ years. Business cases based on the TCO (total cost of ownership) model show that the connectivity cost – including one-time set-up, monthly recurring fees and usage based charges – is one of the major cost drivers. When calculated over the entire usage period, communication costs are higher than hardware costs. Requirements regarding connectivity are different depending on application area. The amount of data sent by a garbage bin is smaller than the data generated by a jet engine. Wind turbines do not require international roaming, while connected cars rely on it. Safety related systems have additional requirements in term of service quality, reliability, etc. These requirements impact connectivity cost significantly. Finding a suitable solution is a real challenge, especially if a global solution is needed. Market Drivers Cost Geo-Coverage Data volumeLatency Reliability Requirements for mobile communications by different applications Garbage bin Elevator Jet Engine Connected Car Self-Driving Car Industry 4.0
  5. 5. Connectivity for IoT | A BearingPoint Accelerator Customers implementing IoT solutions today expect that connectivity costs will decrease in the future. That is the reason for the current popularity of flexible or short-term contracts with mobile networks operators. Connectivity costs • Low prices for telecommunication services • Flexible tariff models (per MB, per bucket of flat fee) • Benefits of decreasing charges for data and voice transmission (e. g. indexed contracts) Mobile technology shift • Older mobile technologies – 2 and 3 G – are being already decommissioned in some countries • New cost-effective networks incl. LTE, NB, LTE, VoLTE are still in the rollout. Nationwide connectivity for 4G networks is not the norm • Starting in the early 2020s, new 5G networks will become available SIM technology • Customers can choose between “classic” (removable), solderable, or software SIM. • New SIM technologies allow migration to a new MNO (mobile network operator) using OTA (over-the-air) services • SIMs may have one or more preinstalled MNO profiles Quality of Service • Sufficient quality of service, tailored to particular customer needs • Country-wide coverage (incl. rural areas) may be achieved via domestic roaming (where applicable) Additional MNO services • Industrial customers are looking for telcos offers – “one-stop shopping” and provisioning of connectivity services in areas of interest • Function-rich service platforms for device / and SIM management Market Drivers
  6. 6. Connectivity for IoT | A BearingPoint Accelerator IoT is the key enabler for the creation of future digital products which will significantly impact our lives in the medium term. Manufacturers which will not integrate IoT functionality into their products will miss revenue opportunities. Customer Value Product Optimization Operations and Service Delivery Optimization Added Value Data Higher availability Shorter time to repair Lower total cost of ownership Avoidance of unscheduled maintenance Workflow automation Additional revenue streams Asset sharing / shared economy Design to use pattern Weak point analysis Spare parts management Preventive maintenance Predictive maintenance Workforce management Global use Demand based pricing Forecast data Economic data Market Drivers
  7. 7. Vision preparation: • New digital products based on customer core competencies • Evolution of existing business model • Focus on existing customers Analysis of following areas: • Geographical coverage • Communication requirements – data volumes, communication frequency • Additional services (SMS, voice, etc) • Technical restrictions (power consumption, size, antenna requirements) • Service level agreements • Financial restrictions • Logistics requirements Analysis of potential options: • Selection of suitable communication technologies • Modem / communication module consideration • SIM strategy (plugin vs. embedded – single- vs. multi-profile SIM) • Recommendation for single / multiply vendor (MNO) strategy • Business case preparation Preparation of the “future” solution: • Specification of selected products / services • Fit-gap analysis for the commercial off-the-shelf products • Selection of potential suppliers • Decision single / multi-vendor strategy • Proof of concept • RfP documentation RfP evaluation: • RfP execution • Evaluation of RfP responses • Final business case preparation Roll-out • Roll-strategy • SLA monitoring 1. Need indentification 2. Needs analysis 3. Design options 4. Solution design 5. Vendor selection 6. Implementation support Connectivity for IoT | A BearingPoint Accelerator RfP evaluation: BearingPoint’s approach can support customers in establishing connectivity for new IoT products and services, which can be tailored for particular needs. Our approach aims to reduce the time to market and to benefit from the suitable combination of current offers of hardware manufacturers, SIM providers and telcos. BearingPoint’s approach consists of the following six phases:
  8. 8. Connectivity for IoT | A BearingPoint Accelerator Matching service level requirements resulting from digital products characteristics with SLA offered by telco has significant impact on the total cost of operation. If the expected SLAs (e. g. availability) are too high, customers are paying for services which are not really needed. If the SLAs are insufficient, the quality of the digital product is at risk. Service cost SLA insufficient SLA fulfilled SLA overdelivered SLA (e.g. availability)
  9. 9. Connectivity for IoT | A BearingPoint Accelerator BearingPoint’s approach aims to free up time of our customers so they focus on the core functionality of the future IoT solution, without having to acquire telco-specific knowledge. Connectivity, which usually does not belong to the customer's core business, can be tailored in a way which allows to select communication services that fit the actual requirements profile. Requirement set by the IoT solution for connectivity Plans for functional and geographical enhancements Cost reduction Shorter time to market Reduced individual development Reduction of number of involved parties Higher SLA Unique sales proposition
  10. 10. Connectivity for IoT | A BearingPoint Accelerator Leading automobile manufacturer Challenges • Introduction of new services in the area of connected car and mobile entertainment in a mixed 3/4G environment • Rollout of a global (cross-market) solution • Preparation of customer friendly processes • Implementation of multiply data / voice plans (different plan owners) on a single SIM Our approach • Definition of data / voice plans for new services • Vendor selection for customized SIMs and MNOs • Definition of processes: in-factory, in PoS and for end-customers • Vendor selection for customized SIMs and MNOs • Amendments of IT systems to integrate SIM management into vehicle manufacturing processes Client benefits • End-customer friendly SIM management processes – all products and services are demonstrable during the entire sale process • Higher customer satisfaction • Error reduction though new in-factory processes and IT support Consumer goods manufacturer Challenges • Preparation of a global connectivity platform for data and voice services • High variance in the volume of transferred data and frequency of communication events • Very high SLAs • Inclusion of “difficult” markets Our approach • Data protocol improvements to minimize the volume of transferred data • Requirement definition for hardware and SIM manufacturers, requirement definition for MNOs • Vendor selection • Inclusion of VoIP technology for cost reduction Client benefits • Cost reduction through reduction of data volume • IoT connectivity available for numerous markets and different network technologies • Smartphone app for IoT device installation and optimization of data communication under difficult conditions References
  11. 11. Connectivity for IoT | A BearingPoint Accelerator Contact Markus Laqua Partner BearingPoint Germany Dr. Karol Abramowicz Senior Manager BearingPoint Germany About BearingPoint BearingPoint is an independent management and technology consultancy with European roots and a global reach. The company operates in three units: Consulting, Solutions and Ventures. Consulting covers the advisory business; Solutions provides the tools for successful digital transformation, regulatory technology and advanced analytics; Ventures drives the financing and development of start-ups. BearingPoint’s clients include many of the world’s leading companies and organizations. The firm has a global consulting network with more than 10,000 people and supports clients in over 75 countries, engaging with them to achieve measurable and sustainable success. For more information, please visit: Homepage: LinkedIn: Twitter: @BearingPoint © 2018 BearingPoint. All rights reserved