how to design your business form 2 m

8/7/2019 How to Design Your Business Form 2 m

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Copyright M2M United 2008

How to Design your Business (and Products)for

Machine to Machine Communication

M2M United

June 24, 2008

Joe Barkai


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Global market research and advisory services

M2M as a platform for faster, better decision-making

Our View of M2M


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The Google Test

#10

Marketing

inAct

ion


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M2M is Top of Mind for Service

Organizations

Top priorities for IT Investments in service organization

Source: Manufacturing Insights, 2008

0% 20% 40% 60% 80% 100%

CRM

Mobile Workforce

M2M for Remote Monitoring / Service

Advanced Field Service Management

Warranty Administration

Advanced Workforce Management

Warranty Analytics

Parts Planning

Fully deployed / Within 24 months

Approved / Likely project

Evaluating, no project planned

No plans


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M2M is Hot

Adding M2M within the year

8%

Do not expect to add M2M

within the year

11%

Using M2M in one area

32%

Using M2M in multiple areas

49%


Stage of M2M implementation


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Why Hot?

Business pressures

Need to do more with less

Increased cost and profit pressures Need to extend life and utilization of existing assets

Regulatory compliance and sustainability awareness

Products as service platforms

Dropping technology barriers Pervasive, cost-effective and secure connectivity

M2M smart devices

Improved cost/performance

Increased density, miniaturization, industrialization

Intelligence onboard


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High Hopes

Benefits from M2M implementation


0% 10% 20% 30% 40% 50% 60% 70% 80%

Lower operation costs

Improved asset monitoring

Improved customer service

New source of revenue

Regulatory complianceRealized

Expected



Extreme Verticalization

Narrow domain and business focus

One project at a time

Bottom up, technology-centric approach Why?

Inadequate and immature business models

Preference for smaller, manageable scale and shorter time to

value

System providers have narrow domain focus Not quite understood by IT

Lack of open M2M standards

Questionable ROI



Current State

Islands of individually successful implementations

Questionable scalability

Machine-to-back office more than machine-to-

machine

Suboptimal enterprise-level process integration



Design Your Business for M2M

M2M As a Business Strategy



DataAcquisition/

DeviceControl

Data Analysis& Assessment

DataTransmission

IntelligentDevice

Network

Enterprise

ResponseUser/

Operator

Machine to Machine CommunicationAny technology to enable wired or wireless communication betweenmachines, and connect remote machines to the enterprise



M2M: Faster, Better Decisions

Informatio

n

Governance

Resiliency in Decision Making

Consistency in

Execution

Maximize Value of Assets & Human Resources

Control Activity

Calibrate Processes

Optimize Cost &

Service Levels

Assets Infrastructure Human Resources

Speed in Detection

& Response

Decision ContextBusiness Rules &

Analytics

Calibrate Processes

Monitor Activity & Alert



Time-Value of Information

Va

lue

Time

Information

Value &Impact

Time



Business Pressures and Opportunities

Do more with less welcome to the era of knowledge

deficit

Smart Services

Increase cost and profits products as service

platforms

Extend life and utilization of existing assets



Aging Workforce The Era of KnowledgeDeficit

38.640.1

48.251.4

30

35

40

45

50

55

Labor Force Percent Above the Age of 40

1980 201020001990

Source: Bureau of Labor Statistics



Aging Workforce The Era of KnowledgeDeficit

Source: AIA



New Questions

How can we enhance the value

of products/services?

What new information models can becreated?

How can better analytics and predictions be made?

What new business models can be developed?

What new services can be offered?

How can service levels be improved?

MonitorLocate

Control Distribute



Business Value First, Technology Second

M2M across the service organization

What is the strategic business value?

How will M2M Improve decision-making capacity? What is the business impact?

What are the potential (non-technical) barriers?

What is the M2M service model?

Incorporate benefits of M2M in Service offering and SLA

Staffing, spare parts planning and logistics

If offered to your customers, what is the value to be

realized by your customer? What are the barriers?



Business Value First, Technology Second

Dont get sidetracked by the technology

Dont just automate existing processes

Automated a

Manual

Process

46%

Enhanced

Existing

Process

26%

New Process

Put in Place

28%




What About the Return On Investment?

M2M: ROI or a strategic enabler?

The real options model

Initial investment creates options for future benefits

M2M as a platform to:

Develop technology proficiency, mature business

processes, develop IT partnerships

Propel future business opportunities



Data, Data Everywhere

More data than you know what to do with (but possiblymore than you really need)

Role of data Visibility and early warning

Context for decision making

Continuous improvement

Equipment maintenance Early Warning

Remote diagnostics

Prognostics



Plan Ahead

Design your future product for M2M

M2M needs to be designed-in, not an afterthought

Involvement in early design phase

Standards-based design

Service product design as an integral part of

product design

Understand the technology roadmap

Educate product managers, engineering and IT



Partner for Success

Technology and process challenges abound

Wireless technology, integration and certification

Data security

Network scalability and resilience

Business process reengineering

Partner for success

Also consider

M2M as a Service (M2M on demand)

Business process outsourcing (BPO)


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Design Your Business for M2M

Some Thoughts for M2M Vendors


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Development & Deployment Application

Environments

Application Types

Industry Specific

Implementation

Task

Specific

Implementation

M2M (APIs) Based SOA Based

A Call for ActionFrom Extreme Verticalization to a Uniform Platform


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A Call for Action

Challenges integrating nonstandard edge data sources and

enterprise systems

M2M standards and business models Standard data acquisition platforms for edge devices

SOA application of M2M Services

Developing M2M as a Service

Industry Groups

Promote best practices

Establish standards

Open source community

M2M services


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To Learn More

Research Reports:

Machine-to-Machine Communication: Technology Overview and Market

Landscape

The Aging Workforce Impact and Opportunity

How to Sneak Behind Your CIO's Back

Worldwide Product Lifecycle Strategies 2008 Top 10 Predictions

RFID as a Cross-Platform Abstractor

www.manufacturing-insights.com

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