IoT for Enterprises

I agree with the post of Richard Hobbs (who is also the President and Founder of Novotech) “M2M Standards: The Elusive Silver Bullet” to stop creating and saying new words like “Internet of Everything” and “Internet of Things” and just focus on a single concept “Machine-to-Machine”, especially if we are going to talk with CEOs, CFOs,  or Business Managers in other industries out of IT or Telco.

These men and women running small, medium or large companies don´t really bother about technology predictions, they look for advice, they are looking for ideas, they look for help that allow them continue increasing revenues and profits because all of them know that the product/service price pressure is more intense than ever

  • in every country (nobody is immune)
  • and every market: alarm vendors, industrial, utilities, healthcare, retail, telco

Do not misunderstand me, I share the idea that if:

  • Operators and OTT companies build a fully wireless connected world
  • M2M module and device vendors continue innovating and reducing prices
  • M2M Technology companies allow connecting machines with people and
  • new M2M Service Business Model are implemented

the value propositions, TCOs, ROIs, Business cases will be not as important as they are today to convince these key decision makers to implement new M2M solutions. As soon as the early adopters would recognize its improvements in Business Processes and Bottom line results, we will see the start of a new industrial revolution as Jürgen Hase, Deutsche Telekom points out in “M2M: The third industrial revolution” post. “From automotive to engineering to energy, nearly all industries anticipate achieving high growth rates through the implementation of M2M”.

But coming back to present days, we can see that not all industries have the same level of government attention and therefore the same level of M2M maturity (lack of standards, fragmented M2M market). The most reliable and optimistic predictions of analyst researchers are those related with Government directives like eCall or Smart meter. I encourage more Government initiatives or directives in other industries like Healthcare, Services, Transportation, Manufacturing, Smart Cities, etc  to exit  the financial crisis that in most developed countries we are suffering and that makes very difficult to generate new M2M opportunities. If we cannot show a quick return of the investment and there is not a Directive we will not have attention of any CEO, CFO or CIO in spite of our excellent “2 minutes M2M elevator pitch”.

We all know that the M2M value chain for industry applications is more complex than for consumers, mainly because integration of M2M solutions in business processes and security concerns. Other reason , in my opinion, to explain why we are not seeing yet an exponential M2M growing market in the industry is because there is less creativity and innovation in developing M2M applications for verticals. Maybe the developers of business vertical applications do not have the same freedom to build disruptive M2M applications. They need to consider the objects will be smart and social. Developers need to be also more creative and innovative to generate the interest and new business opportunities in different sectors.

Mobile Operators worldwide and M2M Operators are doing its best to expand M2M smart services beyond connectivity and facilitate the deployment of M2M vertical solutions with certified devices such as smart meters and other gear for M2M to work on their networks. Such M2M smart services will apply to a broad range of industries, including but not limited to energy, healthcare, transportation, manufacturing, retail or finance.

For those more skeptical about M2M brilliant future for enterprises, I recommend to read Phil Goldstein´s post published August 9,  The next generation simply ‘gets’ M2M and a connected world, about his fleet mangement solution experience in the Philippines. We must recognize that transport represents a critical M2M vertical and is proving to be one of the most popular and successful segment so far for the majority of mobile operators, as Charles Golvin, Principal Analyst, Forrester Research comment in his post.

While industry sectors are waiting for new M2M solutions and Telco and M2M Operators are investing in offer Smart M2M services, which is the role of IT sector?

In absence of M2M standards, and a profitable and mature market, only IT niche companies had been providing M2M platforms, vertical applications, best practices on ROI models, and implementations for different industries Oil & Gas, Petrochemicals, Power & Energy, Utilities, Healthcare, Government/Public Sector, Retail & Commerce or  Transportation & Logistics.

However the interest in M2M is now so big that IT companies like IBM, Ericsson, Cisco, Huawei, Oracle, SAP, Google, Microsoft, Accenture, TechMahindra, …. have a strong focus on M2M. To success in M2M these companies will have to think in terms of M2M SDK’s and M2M API’s as much as M2M Hybrid Cloud Platforms and Smart and Social Object and Devices. I do not believe that proprietary M2M solutions will success in the long term.

Powerful new ideas that all kind of industries dream up will be a reality with innovative M2M products and services if research labs will give way to an era of M2M open innovation and collaboration among all M2M ecosystem.

Nevertheless, I do not want to end this post without mention the current risk for companies to invest in M2M vertical solutions that they expect to stand for a long time. Vendors Merger and Acquisitions, multiple start ups, new technology standards, a dynamic M2M ecosystems, cost, and many other factors should be taking into account before implement a M2M vertical.

Business decision makers will find many technology vendors selling them M2M solution that will the promise of improve business processes, reduce cost or increase profits and revenues. These guys will need to take a decision that will affect their business in the future.  That’s why is important for BDMs to consider include in your strategic plans independent M2M trusted advisors that can make savvy recommendation for implement the M2M vertical application that your business need.

For additional information please contact: francisco.maroto@oies.es

1- M2M Industrial series: “The Connected livestock farmer” –> https://pacomaroto.wordpress.com/m2m-industrial-series/m2m-industry-series-the-connected-livestock-farmer/

2- M2M Industrial Series – Will M2M / IoT be able to transform the customer retail experience? –> https://pacomaroto.wordpress.com/m2m-industrial-series/m2m-industry-series-will-m2m-iot-be-able-to-transform-the-customer-retail-experience/

3- M2M Industrial series: “Healthcare – “The connected patient”. –> https://pacomaroto.wordpress.com/m2m-industrial-series/m2m-industry-series-healthcare-the-connected-patient/

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