Time for IT players to step forward

April 30, 2014

layout-databaseIn April last year I wrote that the M2M industry was leaving the connectivity focused baby phase and entered its teens. This was great news and happened much faster than when we connected people and businesses to the Internet. In essence this meant that all players who wanted to be part of building the Internet of Everything, not only the connectivity guys, started to gather around the table. Looking at when Internet of people and businesses was developed made it obvious that no one could make it alone and partnerships became the name of the game. That’s pretty much where we are today and these efforts are very promising. 

A major change has to take place before the industry leaves its teens and the building of Internet of Everything gains solid momentum – the IT companies have to take the lead. Up until now connectivity players have been enabling and driving but since “data is the gold of M2M” it has to be the IT players who take over before we really can get going. The value of any M2M application is realized when the information collected or created shows up in a decision-making system or a system managing processes of any kind. This is why application developers, system integrators, app developers, architects, UX designers, CIO:s, business analysts and others are key to bring on board. And this is why leading IT companies will have to join the party before take off.

I have been waiting for the first ones to walk the talk and I’m delighted to share with you that it’s happening here and now! Cisco has rapidly been ramping up their efforts in the Internet of Everything space with research, reports, speeches, acquisitions, idea challenges, etc. And last week they joined our Swedish M2M Service Enabler (SMSE) alliance as the first sponsor from the IT industry. This was very well received by our 26 members of the alliance and media. I expect collaboration and results quite rapidly and I am convinced we will have the leading IT players in Sweden, vendors and consultants, in our alliance before summer. My aim is to make Internet of Everything for Real 2014 in Stockholm June 18 the first event where leading connectivity and IT players will discuss how to create and promote the Internet of Everything together with the entrepreneurs and customers.

Yet another evidence of the importance of IT in building the Internet of Everything was an interview with Klas Bendrik, Group CIO at Volvo Cars, in CIO Sweden today (in Swedish). Mr Bendrik says that everything change when both customers and products are connected – how they develop, design, sell and service cars. It influences the entire life cycle of the car and redefines the entire foundation for their company. “I and our IT function get involved in all business development when IT becomes part of the core processes in the car life cycle”. Voila! Data is the gold of M2M. The only difference from when Internet of people and businesses was built is that ignorance will not be an acceptable excuse this time. Decision makers need to look into what the Internet of Everything will mean to their business and industry now.

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Inspiring examples: the Ball Camera

April 10, 2014
panono-panoramic-ball-camera-designboom04While brands like Kodak and Agfa rarely are mentioned together with photography any longer, people are taking and dealing with photos all the time and everywhere. This is yet another astonishing example of what happens when an industry moves from analog to digital. The famous “Kodak moment” belongs to history and mobile phones with powerful cameras, panoramic pictures, SnapChat and selfies are here. With 24 or 36 photos in an expensive roll with even more expensive development and printing needed, we paid a lot of attention to each and everyone of our photos. Today we take shots to remember the registration plate of the car we rented, what was written on the whiteboard and to digitalize a piece of paper and transfer it somewhere.
But today I met the founder of a start-up in Berlin who immediately blew my socks off. His company is called Panono and they have put 36 cameras in a small ball loaded with sensors and technology. With one quick toss of the Panono Ball Camera will capture everything in every direction into a high resolution 360° X 360° full- spherical panoramic image. What a wonderful idea! And even better, you will be part of the photo yourself! That takes selfies to a new level.
It goes without saying that the Panono Ball Camera is connected via mobile phones to the cloud.
For only 549€ this wonderful product is yours! Support truly innovative entrepreneurs! Go buy!

Different operator approaches will speed up the creation of the Internet of Everything

March 19, 2014

choicesUp until recently most operators had a similar approach to M2M: “it’s a very interesting opportunity, we’ll build a devoted team, we will make or buy a device connectivity platform, we will not be providing only connectivity but we are not ready to go down the verticals so we will build a partner program.” But things are changing. Telenor Connexion went their own way when they decided on a connectivity agnostic strategy to be able to follow their customers over time. Then they acquired the experienced M2M service enabler and developer Iowa in order to help customers from idea to ready to roll solution. And at MWC they announced adding Jasper’s platform to the Ericsson Device Connectivity platform already in use which as far as I know is a unique move. But perfectly in line with their customer centric strategy.

Last week, Tele2 finally announced their M2M strategy and plan at their M2M Talks event in Stockholm. Rami Avidan and his team declared loud and clear that they will provide connectivity and for the rest, work with and through partners. This was as clear and easy to understand as surprising. At the event they introduced a couple of partners including CSL and Wipro – two really well established and strong international players in the field of M2M.

It is promising and interesting that operators are starting to place their M2M bets differently now. With different approaches and offerings we will have more choices and constellations which will serve customers better and speed up the creation of the Internet of Everything.


Plumbing or solutions?

March 6, 2014

PipesDevice connectivity platforms for mobile operators have been discussed for years. There have been two primary platforms on the market – Ericsson and Jasper – with Ericsson more focused on the ability for the operator to manage M2M business efficiently and Jasper having been more focused on adding solution partners to their platform thus to their mobile operator customers. Up until now most mobile operators have had one of these platforms and in many cases an in-house alternative somewhere. But at MWC Telenor Connexion announced that they add Jasper to their Ericsson platform (once acquired from Connexion). According to Per Simonsson, CEO at Telenor Connexion: “Deploying services from the two leading platform providers ensures greater flexibility and enables us to collaborate with new partners and operators in global deployments“. I believe Telenor Connexion has a clever long-term strategy to become technology agnostic when it comes to platforms and bearer technologies in order to get a strong position for global business and to become flexible in supporting customer’s changing needs over time.

This announcement caused some stress here and there since some operators used the situation of being the only Jasper customer in a market as a differentiator. This is of course not a sustainable way to create a position in a market and it was only a matter of time until the opportunity would have been gone anyway.

I have always argued that mobile operators should refrain from a GSM-only approach in M2M and that they should be aware that Jasper’s business model is quite comparable with an MVNO from the operator’s point of view: The operator get some additional traffic but might loose the relationships with partners and customers and once and for all become a pure connectivity provider. Nothing necessarily wrong with that but most mobile operators active in M2M state that they don’t want to become just a connectivity provider. Yesterday I read that Jasper is launching the world’s first commercial end-to-end Global SIM product based on Giesecke & Devrient (G&D) technology. It’s is aimed at the IoT market and will allow enterprises to remotely manage embedded SIMs over the air (OTA).

The ability to change operator over-the-air is a necessity in M2M and I saw a GSMA demo at MWC 2012 demonstrating this. Mobile operators who don’t have the ability to go down the verticals and applications in M2M thus “outsource” partnership and business development, might be stuck with plumbing when the OTA provisioning is in place. I see only two main roads ahead for operators (including the M2M MVNOs): invest and get engaged in applications, solutions and verticals or provide the connectivity. And anyone getting involved in applications and solution, service enablers or operators, need to use a connectivity agnostic approach like Telenor Connexion.


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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