October 3, 2012
The magic between the generic communication services and the specific application providing desired value to the users business is what we call M2M Services Enablement. This component of a M2M solution is absolutely vital since it shortens time and effort to develop the solution and minimize the effort to maintain and further develop the solution. The more robust and complete the Services Enablers become, the more users will decide to use M2M solutions. Services can be applied in three different ways: communication providers can add it on top of the connectivity, owners of the connected things can run Services Enablement in-house and one can use an independent third-party.
From a pure technical point of view Services Enablement platforms are generic but the successful providers of these services will be very focused on a specific niche or industry. If we look at a straight forward consumer solution like sleep monitoring, there are several solutions available. But one day there will be a market leader and that solution will definitely include some kind of intelligence applied on the information gathered in the cloud. It could typically be world-class sleep experts who can look at your data and give advice or comparisons to relevant indexes. With such services available it will be difficult to sell a plain stand-alone sleep monitoring solution. What is done with the information collected will differ from industry to industry but the logic will still be the same: players in an industry will benefit from using the Services Enabler who can add most value to their business and they will most likely end up using the same one. Following this logic there will be a large number of Services Enablers each focused on a specific industry, application or niche. The marked development for Services Enablers seems likely to follow Geoffrey Moore’s theories about “crossing the chasm”. Targeting a specific pin in bowling alley is the way to cross the chasm. When on the other side, it’s possible to target another pin, using the first pin as reference.
I continue develop the Swedish M2M Service Enablers (SMSE) alliance and we just included two more companies: Springworks and Episcope. They both follow the logic above and focus on the Automotive industry and Process Industry respectively. I continue to believe that M2M Services Enablement will be a forte for Swedish start-ups.