Partnership is on everyone’s lips

February 28, 2014

bildYet another humongous Mobile World Congress is over. Almost 90.000 people from around the globe have spent a couple of days together in Barcelona with decent weather, amazingly good organization and an interesting mix of cava, business cards, pickpockets, technology and rock’n roll. This year was very much about improvement and evolution and little news and revolution. That is both serious and good but unfortunately less exciting and makes a show like this a little sleepy. Beyond a couple of quite expected things like Mozilla’s 25$ smart phone and that Nokia goes Android you mainly heard words like security, virtualization, big data, robustness and improved BSS/OSS at the show. From a helicopter perspective I believe it is a slow process of marrying IT and Telecommunications that we are looking at.

And then, of course, M2M and Internet of Things. It’s on everybody’s lips now, and it’s mainly questions. Ranging from companies considering to enter the market and wonder where to start to people already there trying to figure out where to go next. And my previous conclusion that we have left the connectivity phase behind and focus on the data and use of it was more clear than ever. I heard reference to the 50B devices three times during the entire event to be compared with hundreds of times a year ago.

I was there with a common stand in the Swedish Pavilion with nine of the 21 members of the Swedish M2M Service Enablers alliance: Kombridge, Springworks, Maingate, Possio, WSI, Fym, Evothings, Info24 and WBIRD. And I was amazed to see the interest in talking to experienced specialized m2m service enabler companies with solid solutions in use by real customers. From across the world we had operators, potential customers, vendors, analysts, regulators, consultants, investors and governments visiting us. We counted collectively to over 300 meetings with reasonable business potential after day three of the event. We also got the opportunity to explain to our Swedish Minister of ICT and Energy, Anna-Karin Hatt, that we are working hard together in SMSE to make Sweden the obvious country to go to for leading edge skills and knowledge in M2M aka Internet of Things. 

So what’s the state of the nation? Most players have understood that data is the gold of M2M, that the value of M2M is realized when the information is properly distributed to decision-making systems, business process applications, etc. and that a proper M2M solution consist of three different components: connected devices and sensors, collection and blending of data most often in the cloud and distribution of the information to apps, ERP systems, etc. The challenge is that each of these three components is a competitive industry by itself and each M2M solution must include all three to deliver the value. This is obviously not possible to solve without well working partnerships. The transition from quite ok complete generic proprietary M2M solutions to excellent M2M solutions for an industry or more often a specific organization is similar to what the IT industry went though over some 20 years starting from IBM providing everything from Nobel prize research and silicon to post service and financing. Our transition will be brutally fast and enable the fully international and layered Internet of Things industry needed for the real take-off. Companies perceived as providers of generic products or services with no edge will fade away in this process and simply just not be seen. This is why operators and vendors talk partnership now. It is needed but very difficult. To set up a well designed and attractive partner program is not rocket science but a lot of work. But making people work well together goes far beyond that. It is little about technology and a lot about trust, way of working, culture, business models and not the least “similar children play best” as we say in Sweden. And entrepreneurs are stressed people who have little to no patience with things that don’t contribute to their business. Partnerships are also initiated by government bodies and research organizations and a new LinkedIn group on IoT or M2M is established at least weekly.

It will be really interesting to follow how this will develop. In my mind this is mostly a commercial issue why any working partnership will have to be driven by people closest to the customers, who understand the context of the data and application the customers are looking for. Progress and success will only come when people start doing thing also in this field. Nobody, not even McKinzey or Accenture, designed the value chains, the standards or the API:s when we connected people and organizations to the Internet. It was created by people trying things and finding ways that customers liked. This is how the Internet of Things will be established as well. And this is the thinking behind our Swedish M2M Service Enablers Alliance. Avanti!


Context is king!

February 20, 2014

MWC14_Logo-whiteBGAn old friend wrote: “Hi Magnus, Great to hear from you. Sounds like you are in the sweet spot of the next digital revolution.” Internet of Things is on everyone’s lips now! If we wouldn’t have had the M2M hype phase over ten years ago I would definitely be nervous, but this is for real. Kudos to Gartner who provided us with the hype curve!

IoT is still in the teenage phase but growing very fast. The industry obviously remains excited on ever new levels. But what makes me believe that we will be grown up by 2015 is the rapidly growing requests from businesses across industries and nations. They want better decision-making, faster processes, competitive advantages, security, sustainability, profitability and bottom line, success. And more and more we end up talking about strategic issues like addressing adjacent markets, “re-defining our industry”, brands and new business models. Somehow a lot of decision makers got the point: it’s time to act! Leaving discussions and PowerPoint behind and jump into trials and action.

The value of M2M becomes visible when the information appears in decision-making systems and processes. The data collected and blended will have to end up in the IT systems why solutions require context, i.e. industry experience, and will be developed by specialized companies. As vehicle specialist Springworks put it: “it took as a while to learn the difference between a hard break and a crash”. Specialized M2M Service Enablement remains the most critical part of building the Internet of Things. Context is king!

The Swedish M2M Service Enablers alliance (SMSE) was established 2012 on this insight and we are already 21 members – Imagimob and Expektra joined earlier this week. And we are now sponsored by six organizations including four operators. We believe the M2M service enablement business will have to be international for M2M to grow up. And with all national players competing on an international market, only the specialized ones will win. It is simply not good enough to connect a couple of things to the Internet, collect some data and distribute it to an App or web page. One needs the context to develop and sell really useful Service Enablement solutions.

We are working hard to demonstrate our combined skills and experience in M2M, or Internet of Things if you like, and that Sweden is a great place to look for advanced M2M applications. Over the last 12 months we have been on several trade missions including Italy, France, Spain, Holland and Germany. And starting on Monday nine of our members – Springworks, Maingate, Kombridge, Possio, EvoThings, Fym, WSI, Info24 and Wbird – represent SMSE in the Swedish Pavilion (7F41) at Mobile World Congress in Barcelona. Please come by and visit us during the week! And as proud sponsors of the traditional Sweden@MWC Cocktail we invite you for a drink with us on Monday afternoon as well!

Adelante!


European connected cars standard is done deal!

February 18, 2014

0250.auto%20blog_9.16.13Intelligent Transportation Systems (ITS) is one of the areas where M2M will make a huge difference in our lives. Transportation of people and goods will be more sustainable, safer, more efficient and more predictable. The communication required is complex and includes communication between vehicles, between vehicles and road infrastructure. The EU has invested over €180 million in more than 40 research projects since 2002 and last week the European standards organisations, ETSI and CEN, confirmed that the basic set of standards requested by the European Commission to make connected cars a reality has been fully completed. The European car industry is eager to translate these enabling standards to competitive advantages and we could see the first connected cars able to communicate with road infrastructure already 2015.

With some 200 million vehicles in Europe it’s easy to understand that proper implementation of these standards will make big impact on road efficiency, safety and sustainability. And if the initiated collaboration for global standards with the US and Japan becomes successful, the reward can be many times bigger.
This is good news and enables yet another area where M2M will make big impact on society here and now. And as always, there will be winners and losers based on how well organizations leverage this opportunity. And it definitely made the 10:th ITS European Congress in Helsinki, 16 – 19 June 2014, more interesting to visit.

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