SAP Billing and RevenueInnovation ManagementMonetizing M2M15 November 2012
Why now ? • Falling costs, wider connectivity and maturing technologies • Regulatory mandates • A growing range of success...
Value to the end user                                 “ Successful technology has two great attributes:                   ...
M2M market forecast                                            Source: Economist Intelligence UnitM2M will contribute to >...
M2M = low ARPU?    Average monthly ARPU per SIM, US$, % of survey respondents                More than $9   Between $7 and...
Secure M2M profitability #1                                      Business Challenges and Billing Requirements             ...
Connected devices and M2M                  30.0Billion devices                  22.5                  15.0                ...
M2M connections and growth                                 16                                 14                          ...
Secure M2M profitability #2                                       Business Challenges and Billing Requirements            ...
Future value shift in M2M communications                                         2015          Decision support, Reports a...
Secure M2M successTop 5 M2M operational                               Telecom               Telecom       Device,         ...
Multi-sided Partner Revenue Sharing                                                                                Consume...
Secure M2M profitability #3                                      Business Challenges and Billing Requirements             ...
M2M focus and trends                                                                                      CSPs’ target ind...
Revenue capture in the M2M value chain                                                    CHANGE                          ...
Secure M2M profitability #4                                      Business Challenges and Billing Requirements             ...
Monetizing M2M - Billing requirements summary                                 LOW ARPU                                    ...
Thank You  To view the recorded webinar, please register here:     http://webexpo.computaris.com/webinars/sapContact infor...
© 2011 SAP AG. All rights reserved.No part of this publication may be reproduced or transmitted in any form or for any   S...
Upcoming SlideShare
Loading in …5
×

SAP Webinar – Monetizing M2M

500 views

Published on

To view the recorded version of the SAP webinar held at Computaris' 2 decade anniversary virtual event, please register here: http://webexpo.computaris.com/webinars/sap

Published in: Technology
  • Be the first to comment

  • Be the first to like this

SAP Webinar – Monetizing M2M

  1. 1. SAP Billing and RevenueInnovation ManagementMonetizing M2M15 November 2012
  2. 2. Why now ? • Falling costs, wider connectivity and maturing technologies • Regulatory mandates • A growing range of successful applications and business models • A maturing provider ecosystem • Rise of the cloud Source: Economist Intelligence Unit, 1Q 2012© 2012 SAP AG. All rights reserved. Public 2
  3. 3. Value to the end user “ Successful technology has two great attributes: They are invisible to the customer and they solve a fundamental human need “ Martin Cooper, pioneer of cellular telephone Connecting the physical world to the online; your machines works for you© 2012 SAP AG. All rights reserved. Public 3
  4. 4. M2M market forecast Source: Economist Intelligence UnitM2M will contribute to >5% of global operator revenue by 2015 ~ $65B Source: Informa & SAP, 02/2012© 2012 SAP AG. All rights reserved. Public 4
  5. 5. M2M = low ARPU? Average monthly ARPU per SIM, US$, % of survey respondents More than $9 Between $7 and $9 Between $5 and $7 Between $3 and $5 Less than $3 0 5 10 15 20 25 30 35 Source: Informa & SAP, 02/2012© 2012 SAP AG. All rights reserved. Public 5
  6. 6. Secure M2M profitability #1 Business Challenges and Billing Requirements LOW ARPU ! LOW VALUE CONNECTIONS  Affordable and re-applicable low cost model  Low ongoing cost of platform ownership  Reduce operational cost  Automation© 2012 SAP AG. All rights reserved. Public 6
  7. 7. Connected devices and M2M 30.0Billion devices 22.5 15.0 7.5 Sources: Machina Research, 2010 2012 2014 2016 2018 2020 GSM Association © 2012 SAP AG. All rights reserved. Public 7
  8. 8. M2M connections and growth 16 14 12 10Million Connections (end 2011) YoY adds 8 6 4 2 0 Source: Berg Insight, April 2012 © 2012 SAP AG. All rights reserved. Public 8
  9. 9. Secure M2M profitability #2 Business Challenges and Billing Requirements MASSIVE SCALE HUGE REAL-TIME TRANSACTION VOLUMES  Billing Platform to scale for high volume  High performance and high availability architecture© 2012 SAP AG. All rights reserved. Public 9
  10. 10. Future value shift in M2M communications 2015 Decision support, Reports and alerts, Data collection storage and analytics, Service Enablement Device monitoring and control, Development toolkit and system integration Vertical Industry specific Application Services solutions and managed services Communications services, M2M Connectivity & associated communications hardware (modules, terminals, revenue Hardware devices) distribution 2012 Source: Informa/SAP (2012), Berg Insight (2012)© 2012 SAP AG. All rights reserved. Public 10
  11. 11. Secure M2M successTop 5 M2M operational Telecom Telecom Device, Cloudfocus areas CSP equipment Integrator software module, service vendor vendor / ISV chipset maker provider End-to-end service mgmt ▲ ▲ ▲ ▲ ▲ ▲ Partner mgmt ▲ ▲ ▲ ▲ ▲ Flexible billing ▲ ▲ ▲ ▲ ▲ ▲ Security & fraud ▲ ▲ ▲ ▲ Network traffic & signalling loads ▲ ▲ ▲ ▲ Ordering & provisioning ▲ Cross-border roaming ▲ Business analytics ▲ ▲ ▲ Source: Informa & SAP, 02/2012© 2012 SAP AG. All rights reserved. Public 11
  12. 12. Multi-sided Partner Revenue Sharing Consumers NW operators Module and Terminal vendors App developers € $ £ $ Specializedcommunication providers ¥ App/Service Store £Specialized solution Service € providers ¥ Provider € Specialized service $ providers Corporate System integrators Clients Resellers © 2012 SAP AG. All rights reserved. Public 12
  13. 13. Secure M2M profitability #3 Business Challenges and Billing Requirements CHANGING VALUE CHAIN/S RAPID COMBINATIONS AND VERTICAL SPECIFICS MANAGING AND MONETIZING COMPLEX PARTNER RELATIONSHIPS !  Enable and drive smart partnership value generation, including Multi Industry Billing support  Handle settlements & commission for global, complex value chains  Analytics for service differentiation, and additional end-user value© 2012 SAP AG. All rights reserved. Public 13
  14. 14. M2M focus and trends CSPs’ target industries Transport and… 51.8% Utilities 46.4% Automotive 27.3% Financial services 20.0% Health 20.0% Operators / MVNOs 15.5% Consumer… 14.5% Public safety 11.8% = = Integrators 11.8% Manufacturing /… 10.9% Oil and gas / mining 4.5% Agriculture / food 2.7% Military / defence 0.9% Parcel Patient Felony Other 3.6% tracking & alerts tracking & alerts tracking & alerts Dont know /… 12.7% % of CSPs Opportunities:  Seek horizontal scale of M2M services and apps  Focus is shifting to specific apps versus specific industries  Monetize the value that lays in the data Source: Informa & SAP, 02/2012© 2012 SAP AG. All rights reserved. Public 14
  15. 15. Revenue capture in the M2M value chain CHANGE Revenue share AHEAD App based RUN IT BUILD IT USE IT IaaS PaaS SaaS Infrastructure as a Service Platform as a Service Software as a Service© 2012 SAP AG. All rights reserved. Public 15
  16. 16. Secure M2M profitability #4 Business Challenges and Billing Requirements NEW BUSINESS MODELS ! LONG-TERM EVOLVING MULTI-SERVICE CONTRACTS CAPTURE VERTICALLY SPECIFIC ROI RAPID TTM  Real-time and Convergent Charging & Billing; supporting a mix of recurring and usage based micro payments  Flexibility and Agility for Pricing Innovation and flexible multi-sided business models  Support retail and wholesale price models  Fast TTM; configure not program© 2012 SAP AG. All rights reserved. Public 16
  17. 17. Monetizing M2M - Billing requirements summary LOW ARPU MASSIVE SCALE  Low TCO;  Scalability  Low cost footprint  Real-time  Simplified operation  High performance helps you to sustain the M2M is needed to cope with the high low value transactions M2M transaction volumes What is needed ? NEW BUSINESS MODELS CHANGING VALUE CHAIN/S  Innovative pricing  Fast recombination of offers  Fast TTM  Vertical specific or horizontal  Complex partnerships is key to support vertical differentiation ensures flexible partner management and abstract value vertically – thus your success© 2012 SAP AG. All rights reserved. Public 17
  18. 18. Thank You To view the recorded webinar, please register here: http://webexpo.computaris.com/webinars/sapContact information:Name: Christina GiraudEmail: christina.giraud@sap.com
  19. 19. © 2011 SAP AG. All rights reserved.No part of this publication may be reproduced or transmitted in any form or for any SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjectspurpose without the express permission of SAP AG. The information contained Explorer, StreamWork, and other SAP products and services mentioned herein asherein may be changed without prior notice. well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries.Some software products marketed by SAP AG and its distributors containproprietary software components of other software vendors. Business Objects and the Business Objects logo, BusinessObjects, CrystalMicrosoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other BusinessMicrosoft Corporation. Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects Software Ltd.IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, Business Objects is anSystem x, System z, System z10, System z9, z10, z9, iSeries, pSeries, xSeries, SAP company.zSeries, eServer, z/VM, z/OS, i5/OS, S/390, OS/390, OS/400, AS/400, S/390Parallel Enterprise Server, PowerVM, Power Architecture, POWER6+, POWER6, Sybase and Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere, and otherPOWER5+, POWER5, POWER, OpenPower, PowerPC, BatchPipes, Sybase products and services mentioned herein as well as their respective logosBladeCenter, System Storage, GPFS, HACMP, RETAIN, DB2 Connect, RACF, are trademarks or registered trademarks of Sybase, Inc. Sybase is an SAPRedbooks, OS/2, Parallel Sysplex, MVS/ESA, AIX, Intelligent Miner, WebSphere, company.Netfinity, Tivoli and Informix are trademarks or registered trademarks of IBM All other product and service names mentioned are the trademarks of theirCorporation. respective companies. Data contained in this document serves informationalLinux is the registered trademark of Linus Torvalds in the U.S. and other purposes only. National product specifications may vary.countries. The information in this document is proprietary to SAP. No part of this documentAdobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or may be reproduced, copied, or transmitted in any form or for any purpose withoutregistered trademarks of Adobe Systems Incorporated in the United States and/or the express prior written permission of SAP AG.other countries.Oracle and Java are registered trademarks of Oracle and/or its affiliates.UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group.Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, andMultiWin are trademarks or registered trademarks of Citrix Systems, Inc.HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C ®,World Wide Web Consortium, Massachusetts Institute of Technology. © 2012 SAP AG. All rights reserved. Public 19

×