2. Internet of Things & M2M Help Drive Speed/Flexibility into Decision-Making:
Adding Value in Downturn throughout Value Chain
3. 1. Connected Products Solution
Definition
• Networked products connected in an eco-system of: content, technologies, smart devices, infrastructure
and services
• Smart devices know: who you are, where you are, your content preferences, and best medium to deliver
content
• Connectivity occurs across: on-board systems, device-to-device, & device-to-web
• Innovation is driven by leveraging the eco-system to deliver value to user via new capabilities … driving
new business models for both products and services
Benefits
• Differentiated product to market:
Revenue growth via higher market share and/or price premium
Increased profits via higher margin value-added extensions
4. MRI scanner as a totally outsourced solution: Hardware-as-a-Service
Pay per use
Huge Capital Investment for Hospitals, Medical Clinics
Replaced by Pay Per Use by product manufacturer
Result: Scanning used regularly for medical diagnosis
Manufacturer takes over risk
Monitors everything remotely
Detailed cost and use analysis to maintain business case
New business models:
Creating Service pull – superseding technology push
5. 2. Supply Chain Solutions: Integrating M2M into the Business Model
Definition
• Wireless sensors (RFID, Smart Dust) monitor events and conditions
• Sensors are in components, inventory, machinery, and locations
• Sensors show identity, location tracking, shock, temperature, and tampering
• Sensing is conducted across procurement, warehousing, manufacturing, and delivery
Benefits
• Real-time visibility into part locations, status, quality, and environmental conditions
• Improved supply chain reliability and productivity
• Security enhanced by constant monitoring
6. Sensor Intensive Supply Chain Example: Cemex Cement Delivery
Benefits:
Grew customer satisfaction and revenue:
–Reduced delivery window by >85%
–15% sales growth
Cost savings:
–Delivery trucks cut by 35%
–Projected $100M savings in OpEx
• Installed GPS-enabled logistics system to link delivery trucks to central
control center
• Stage trucks and dispatch/re-route dynamically based on up to the minute
customer needs
7. 3. Device Monitoring Solutions
Definition
• Monitoring devices collect valuable information
• Devices are connected to the network and monitored centrally
• Diagnostics and preventive and predictive maintenance are conducted remotely
• Field technicians are dispatched automatically with the right solution
• Engineers learn from actual product and customer behavior
Benefits
• Lower service operations costs
• Value-added service revenue
• Shorter time to resolution
• Higher services margins
• Higher customer satisfaction
• Lower warranty costs
8. Example: Air Products KeepCOLD® Services
Eliminate damage to the magnet
Reduce downtime
Reduce loss of revenue
Avoid rescheduling patient
appointments
9. Three Categories of M2M Applications - Examples
After-Market Applications
Car Wash
• Application led
• Low/Medium volume per application
• All sectors
Vineyard
• Add-on networking: retrofit
Vending Monitoring
• Medium/High cost per unit
Regulatory
Meter Reading
• Regulation led
• Medium/High Volume during install
• Specific sectors/applications
• Embedded networking eCall
Toll Collect
• Low cost per unit
Line Fit/OEM
Handheld
• Service led Tracking
• Medium/High Volume
• All sectors
OnStar/
• Embedded networking Pumps
Telematics
• Low cost per unit
10. M2M Application Categories
Connections
OEM-based
Embedded network
Across all venues
Low Cost
High Volume
Regulatory
Embedded network
Specific products
Low Cost
High Volume
After-market Applications
Network add-on
“Low hanging fruit”
High Cost
Low Volume
Time
11. Impact of Current Economic Climate
After-Market Applications
• Less affected – installed base Car Wash
• eg Commercial Security, 3G
• Individual apps affected, eg Fleet/Freight,
Containers, Commercial Shipping, Industrial Vineyard
(raw material) Vending Monitoring
• Opportunities for operational cost savings
Meter Reading
Regulatory
• Govt. initiatives less affected
• Regulatory less affected, eg Energy sector
eCall
Toll Collect
Line Fit
Handheld
• Some products substantially affected by Tracking
downturn:
• Projects delayed
OnStar/
• New house starts down Pumps
Telematics
• Car sales down 15-50%
• BUT, some are investing in downturn for
longer term competitive advantage
12. M2M Landscape – Service Sectors, Applications and Devices
Internet of Things
IT & Networks
Public Safety
Retail
Healthcare &
Buildings Consumer Energy Transportation
Industrial
& Defense
Life Science
& Home
Care
Commercial / In Vivo/Home Stores Hospitality Specialty
Industrial Trans Vehicles Non-
Research
Institutional Systems Vehicular
• Super-
• Hospital Room • Fuel Stations • Consumer
• Hotels
• Office • Process Markets
• ER • Gaming
• Commercial
• Tolls
• Education • Implants • Restaurants
• Drug • Shopping
• Mobile POC • Air
•Bowling
• Retail • Clean Room Discovery Centers
• Clinic • Construction
• Navigation • Rail
• Bars • Cinemas
• Hospitality • Home Monitoring • Labs • Single site
• Labs • Marine
• Discos • Off-Hiway
• Traffic Mgmt
• Cafes
• Healthcare Systems
• Campus • Diagnostics • Distribn.
• Doctor Office • Special events
• Clubs
• Airports Centers
• Stadiums
Devices: HVAC, Transport, Fire & Devices: POS Terminals, Tags, Cash
Devices: MRI, PDAs, Implants, Surgical Equip, Devices: Vehicles, Lights, Ships, Planes
Safety, Lighting, Security, Access,etc. Registers, Vending M/cs, Signs, etc.
Pumps, Monitors, Telemedicine, etc. Signage, Tolls, etc.
Infrastructure Resource Supply/ Oil/Gas
Awareness Comfort & Fluid/ Converting/ Distribution Alternative
Automation Demand
& Safety Convenience Processes Discrete
• Power Gen • Solar Rigs
• Metals
Security/Alerts • Pipelines
• Petro-Chemical
• Mining
• Wiring • Trans & Dist • Wind • Derricks
• Paper
Fire Safety HVAC / Climate • Mat’l Handling
• Hydro Carbons
• Network Access • Low Voltage • Co-Generation • Well Heads
• Rubber/Plastics
• Irrigation
Environ. Safety Lighting
• Conveyance
• Energy Mgmt • Power • Electrochemical
• Food/Bev • Pipelines
• Metalworking
Elderly Appliances • Agricultural
Quality • Pumps
• Electronics
Children Entertainment •
• Woodland • Energy Mgmt
• Assembly/Test
Power
Protection
Devices: TVs, Power Systems, Dishwashers, Lighting, Devices: Pumps, Valves, Vats, Conveyors, Pipelines, Motors, Drives, Devices: Turbines, Windmills, UPS, Batteries,
Washer/Dryers, Meters, Lights, Alarms, etc. Converting, Fabrication, Assembly/Packaging, Vessels/Tanks, etc. Generators, Meters, Drills, Fuel Cells, etc.
Equipment Surveillance
Emergency Public Tracking Enterprise Public
Services Infrastructure
• Human • Services
IT/Data Center
• Animal • Weapons • Radar/Satellite • E-Commerce
• Equip. & personnel
• Equip. & Office
• Food/Health • Vehicles • Environmental • Data Centers
- Water treatment
personnel
Private Nets
• Packaging • Ships • Military Security • Mobile Carriers
- Building environ.
- Police,
• Baggage • Aircraft • Unmanned • Fixed Carriers
- General environ.
- Fire
• Postal • Gear • Fixed • ISPs
- Surveillance
- Regulatory
Devices: Cars, Ambulances, Fire, Breakdown, Lone Devices: Tanks, Fighter Jets, Devices: Servers, Storage, PCs
Worker, Homeland Security, Environment Monitor, etc. Battlefield Comms, Jeeps, etc.. Routers, Switches, PBXs, etc.
13. Energy: Moving to a Smart Grid – Supply side
M2M Opportunities in addition to Smart Metering:
• Development of Smart Grid - substations
• Microgrids
• Alternative energy sources:
• Wind, Tidal, Solar, Thermal, Fuel Cell
14. Consumer M2M: Approaching a Mass Market – New Report April 2009
Image Source: www.t-mobile.de
BRL Issue: January 2009
millions
15. Consumer M2M: Approaching a Mass Market – New Report April 2009
Consumer M2M Product Shipments (millions)
40
35
30
25
20
15
10
5
0
2007 2008 2009 2010 2011 2012 2013
Beecham Research: April 2009
16. 2008 Adopter Survey, SIM-Related:
Considering the needs of your M2M-enabled products,
how important are the following factors?
17. 2008 Adopter Survey, Network Services:
How important are the following network services?
20. Typical Market Players at Each Level
Value-Added Services
System Applications/
Service Enablement
Network Services
Hardware
Enablement
21. Service Enablement: Key Issues for Research (Q2 2009)
1. Service Enablement purpose:
• Reduce Installation and Running Costs (Adopter Survey results)
• Reduce time to market for new services: Create Service Pull
• Application Providers: Focus on end user, not infrastructure
• c/f Windows and Applications
• Market Catalyst: bringing order to a fragmented market
2. Value Assessment
• Build versus buy for connectivity infrastructure
– Cost elements
– Establishing an ROI
– What connectivity provides lasting value?
3. Key Features – now and future: Which add value from user perspective?
4. Key sectors – early adopters
5. Who does what?
• Value chain players – compete or collaborate?
22. About Beecham Research
Beecham Research offers focused research, analysis and consulting services to high
technology suppliers, service providers and product manufacturers:
• Focus on network-connected products and services – M2M and the “Internet of Things”.
– Worldwide coverage for all business sectors and all technologies
• Founded in 1991. New name Beecham Research Limited (BRL) from early 2008.
• Based in London. Operating out of Boston MA, London UK, Bonn Germany, Milan Italy.
– Representation in AsiaPac and Latin America regions in progress
• Senior staff with many years of M2M experience internationally – well known in the industry
• Emphasis on services enabled by M2M technologies and on M2M market development through new
service implementations:
The services we offer:
• Consulting and custom research
• Subscription-based research service – Retainer Service
• Standard publications include Worldwide M2M Market Forecast Report at hardware and service
levels, and individual M2M Service Sector Reports (9 sectors)
• Conferences, in conjunction with our partners – Berlin October 2009
