December 5, 2013
Data is the gold of M2M! This remains the most important thing to keep in mind when trying to understand where the industry is going. When collecting the data from sensors and sub-systems of all sorts, we need to understand the context in order to turn the data into useful information. Data analysis without understanding the context opens up for poor conclusions and decision-making down the road. No news here! The value of the information created appears when the information is properly integrated into business systems, decision-making systems, etc. No news here either!
The good news is that the need to understand the context for the data collected and the fact that value materialize when the information is integrated into ERP systems, processes and decision-making systems clearly points towards a fragmented market with successful players focused on industries or functions. Good news is that this is how the software industry has been structured for years. And efficiency is achieved by generic platforms, tools and API:s which specialized applications can utilize.
Since M2M will have to become an international business to benefit from scale this brings us a “glocal” value chain like this: customized or specific software provided to customers by local integrators, resellers or consultants working with specialized international M2M Service Enablers. Software used is based on generic platforms, tools and API:s – this is where Oracle, IBM, Microsoft, SAP and others come in. And the M2M Service Enablers are agnostic to devices and connectivity. And sensors are provided by a variety of specialized companies.
So which conclusions could we draw? The three most important conclusions to me are that:
- M2M Service Enablers need to be agnostic to connectivity and device
- there are many M2M Service Enablers in each country today and only the ones who are really specialized, context aware, will survive when it becomes an international market
- generic software companies as well as connectivity providers need to figure out how to work with the best M2M Service Enablers
June 29, 2013
What more does it take to make M2M aka Internet of Things – everything or some things – happen big way? Let’s revisit the key components again. Data is the gold of M2M and the winners will be those who best utilize the data captured. Integration of data in existing business systems and processes is key to maximizing the value. Distribution of information through relevant channels and to terminals of users choice, using open api’s and gorgeous human-machine interaction is required for the applications to be used. Generic Device Control platforms on top of service providers networks together with Specialist Service Enablers are required to make it affordable to develop and maintain applications for clients of all types. The winners in Service Enablement will be the ones who understand the data they are dealing with and due to the huge amounts of industries and functions to be served Service Enablement will be a very fragmented part of our industry.
I see most of this happening now and our industry is definitely developing fast. We are in the teenage stage already with clients moving from thinking and talking to doing. From Powerpoint to pilots. There is absolutely no better way to understand what happens if one connects things than actually connecting some things to play around with. And there is no better way to go for that than to contact a Specialist Service Enabler who has most things ready. Connecting things and collecting the data in the cloud was good enough 1-2 years ago when technology was the key challenge. But today the challenges are mainly business centric why understanding the context of the data is key to succeed. This is why Specialist Service Enablers is the right choice when it is time for a pilot or proof of concept project.
But there is one major thing missing: Internet is global, ICT is a global business and Internet of Things will have to be global as well to prosper. Vendors and operators are working quite hard to make this happen which is great but it will take long time and they can’t make it themselves. Most organizations in the world are small to medium-sized and the software they use are mostly local or localized. Law, policies, culture, language, taxonomy, habits, taxation, religion, alphabet and friendship are examples of things that make people use local software. And it will continue to be like this for many many years. Since the data captured in M2M solutions should end up in business applications, maybe blended with data from public or commercial sources, we need what I call a glocal value chain. The global component is needed to drive economies of scale and enable international business etc. The local part is there to cope with the local requirements, to ensure proper integration in business systems and to engage integrators, consultants and developers locally bringing their clients with them.
Glocal value chains are always difficult to make work. But in our case, whatever we call our industry, I find it quite straight forward. The global part consists of operators (like Telenor Connexion) and their alliances (like GMA), Telecommunication vendors (like Ericsson and Telit) and international ICT vendors (like Cisco, SAP and Oracle who all have started to move now). Ever since Ericsson’s 50 Billion Devices statement this inside-out effort has been coming along quite well. The local part, i.e. developers, integrators, resellers and consultants, has in most parts not got going yet and therefore the small to medium businesses in general are in waiting mode or not even aware. Specialist Service Enablers constitute the missing link. Due to missing operator device connectivity services they have had to learn to deal with the connectivity layer directly. And the services they provide to customers in the industry they target is to a large degree useful across boarders. To me it’s clear: operator networks with device connectivity services together with Specialist Service Enablers interfacing to local developers and integrators is the way forward. The challenges are primarily commercial and practical, not technical. I am working with members of Swedish M2M Service Enablers in several projects along those lines and it looks very promising.