Machine-to-Machine 06/12/2011. Towards user co-creation of value on the IoT. Démystifier l'internet des objets

Towards user co-creation

of value on the IoT

Démystifier l'Internet des

objets

Le Machine to Machine et

l‘IoT : une réalité

IoT: Repères et Projets

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Machine-to-Machine

AWT_November 2011

Machine to machine: live at telco today

Gert Pauwels, Mobistar

Marketing Manager M2M

(nat+

Int’l

)

Agenda



what is M2M and its business potential?



natural role of a mobile operator in M2M



the business models in M2M

M2M is…

“

the ability for machines, devices, or

objects to communicate (in real time) with

other machines, devices or objects “without”

human intervention

”

Once upon a time in 2001…



Request for Stolen Vehicle Recovery

(after

sales)



…OEM



…International customers

(France Telecom

The OEM market

Since 2001, Mobistar leads the way in the Machine to

Machine segment in Belgium

… and beyond

Mobistar M2M card evolution



Focus since 2001



Dedicated financial reporting since 2004



2009: FT International M2M Center



Mobistar is market leader



End ’10: 65 % market share

20,000 40,000 60,000 80,000 100,000 120,000 140,000 129,978

Telematics

Point of Sales

Telemetry

60%

15%

10%

8%

7%

End 2010

Mobistar has 65% in Belgian market on M2M

Market Size: End 2010: 350k SIMS

tracking

behavior

process

optimization

optimized resource

consumption

sensor-driven

decision

analytics

What can we do with M2M (Internet of Things)?

Orange Business Services

M2M platform

Tracking behavior

monitoring the behavior of persons, things or data through space and time

engines tracking

fleet management

benefits



route optimization



increase efficiency



reduce fuel

consumption

Process optimization

automated control of closed (self-contained)

systems

preventive maintenance &

optimization of field services

predictive maintenance spare

part management

benefits



service oriented

products



real-time monitoring



economy of operating



failure prevention

where the volumes are/will be coming from?

“Traditional” Applications

Network add-on “Low hanging fruit” High Cost Low Volume

Regulatory

OEM-based

Time

Connections

After Sales

Tracking&Tracing

mPoS

Remote monitoring

eCall

Automotive

Connected Devices

Consumer Electronics

eToll

Smart Grid

Agenda



what is M2M and its business potential?



natural role of a mobile operator in M2M



the business models in M2M

Russia New Zealand Papua-New Guinea Australia Philippines Japan Brunei Taiwan South Korea North Korea Indonesia Malaysia Vietnam Cambodia Laos Myanmar Sri Lanka Madagascar India Mongolia China Mozambique South Africa Malawi Pakistan Zimbabwe Botswana Kirgistan Tadschikistan Somalia Afghanistan Tanzania Namibia Sambia Kenya Dschibuti Qatar Yemen Uganda Ethiopia Usbekistan Angola Turkmenistan Eritrea Iran Zaire Saudi-Arabia Sudan Iraq Kazakhstan Azerbaijan Congo Argentina Jordan Central Africa Chile Gabun Israel Syria Lebanon Georgia Cameroon Chad Egypt Cyprus Nigeria Turkey Benin Togo Ghana Libya Greece Niger Bulgaria Ivory Coast Burkina Faso Liberia Ukraine Serbia Romania Tunesia Sierra Leone Belarus Mali Guinea Brazil Hungaria Algeria Lithuania Italy Guinea-Bissau Estonia Latvia Senegal Gambia Poland Mauretania Finnland Bolivia West Sahara Germany Marocco Sweden Denmark Spain France Belgium Netherlands Portugal Peru Norway French-Guayana United Kingdom Guyana Ireland Columbia Ecuador Venezuela Trinidad Panama Puerto Rico Costa Rica Dominican Republic Haiti Nicaragua Jamaica Honduras El Salvador Iceland Belize Cuba Mexico USA Greenland Canada NepalBhutan Bangladesh Thailand Uruguay Guatemala Kuwait Oman United Arab Emirates

Lesotho Swaziland Burundi Rwanda CroatiaBosnia-Herzegovina Austria Switzerland Luxemburg Moldawia Albania Macedonia Montenegro Slovenia Czech Republic Slovakia Armenia Paraguay Surinam

29 500

employees

dedicated

to B2B

+2.5 M

m2m

active SIM

cards

170 000

employees

+200

employees

dedicated

to M2M

4 000

researchers in

Orange Labs

Orange Group

50B€

consolidated

revenus,

B2B 1/3

32 mobile

operations

B2B

presence

in +200

countries

 M2M adapted tariff offer  M2M adapted process  M2M SIM cards  M2M customer care  connectivity++

– Web services and portal

– deploying and operating lines

 consulting  global solution design  vendors sourcing  IS integration  deployment  consulting  application development  back-end supervision interface  end-user interface  customer care  maintenance  support  logistic  service management  continuous evolution  chipset selection  module fabrication  interface design  device integration  device fabrication

connectivity

integration

applications

deployment

& run

hardware

M2M solution building blocks & role mobile telco

Key axis M2M development: standardisation

Mobistar/Orange is strongly involved in international standardisation

to speed up m2m developments

standardisation is key to reliability, simplicity and flexibility

Key axis supporting M2M development: QoS

Orange/Deutsche Telekom/Telia Sonera partnership in M2M

global

device

testing

trouble

shooting

unmatched

coverage

joint

module

certification

Orange FT Group

Deutsche Telekom

Teliasonera

your

market

expansio

n

covered!

minimised

business

downtime

save costs

and faster

time to

market

quicker

&

optimise

19

Mobistar global M2M connectivity is simple + flexible

simplified

distribution

1

SIM

hassle-free solution



economy of scale and

cost control



one-stop shop



simplified logistics

easy set-up and

operations



one single technical

architecture/support

faster project

deployment and

time to market

Orange IP VPN

IMC

M2M communication

services

local radio

network

gateway

middleware

platform

core mobile network

gateway

end to end responsibility

Customer

Orange IP VPN

IMC

M2M communication

services

local radio

network

gateway

middleware

platform

core mobile network

gateway

end to end responsibility

Customer

We developed a series of new features delivering

best in class M2M connectivity services

Orange IP VPN

Customer

IMC

M2M communication

services

local radio

network

gateway

core mobile network

gateway

end to end responsibility

middleware

platform

portal

as state-of-the art

tool on connectivity management

service

management

service

assurance

customer

administration

billing

information



state-of-the-art tool



full visibility and control in a few clicks



user-friendly interface



intuitive use

M2M portal

one tool for customer’s M2M business management

Customer Name

our M2M SIM portfolio matches M2M industry challenges:



wide temperature range (-40°to +105°C)



high resistance to vibrations



corrosive environment (saline environment, humidity)

dedicated M2M SIM (2FF)

M2M 2FF reinforced

MFF2 (ad’hoc)

(VQFN-8A)

MFF 1

removable or soldered

soldered only

Agenda



what is M2M and its business potential?



natural role of a mobile operator in M2M



the business models in M2M



key take aways

1

°

Business model M2M: Mobistar in its “natural role”

Orange

M2M Global

Connectivity

Service

Providers

Option 2: through

service provider

2

End

Customers

Option 1: direct

1

 M2M adapted tariff offer  M2M adapted process  M2M SIM cards  M2M customer care  connectivity++

– Web services and portal

– deploying and operating lines

 consulting  global solution design  vendors sourcing  IS integration  deployment  consulting  application development  back-end supervision interface  end-user interface  customer care  maintenance  support  logistic  service management  continuous evolution  chipset selection  module fabrication  interface design  device integration  device fabrication

connectivity

integration

applications

deployment

& run

hardware

1

°

Business model M2M: “natural role”

end-to-end capabilities, accountability and services

Intl M2M

Center

Orange

Partners

Partners

Service

Provider

or

end cust.

Partners

1

°

Business models M2M: examples

engines tracking

fleet management

end customer

 M2M adapted tariff offer  M2M adapted process  M2M SIM cards  M2M customer care  connectivity++

– Web services and portal

– deploying and operating lines

 consulting  global solution design  vendors sourcing  IS integration  deployment  consulting  application development  back-end supervision interface  end-user interface  customer care  maintenance  support  logistic  service management  continuous evolution  chipset selection  module fabrication  interface design  device integration  device fabrication

connectivity

integration

applications

deployment

& run

hardware

2

°

Business model M2M: Orange as an integrator

Orange

devices

Partners

Orange end-to-end capabilities, accountability and services

Mobistar

M2M

connectivity

Orange

Business

Services

Orange

IT&L@bs

Orange

Business

Services

Partners

Partners

patient monitoring

gas consumption

2

°

business model M2M: examples

end customer

 M2M adapted tariff offer  M2M adapted process  M2M SIM cards  M2M customer care  connectivity++

– Web services and portal

– deploying and operating lines

 consulting  global solution design  vendors sourcing  IS integration  deployment  consulting  application development  back-end supervision interface  end-user interface  customer care  maintenance  support  logistic  service management  continuous evolution  chipset selection  module fabrication  interface design  device integration  device fabrication

connectivity

integration

applications

deployment

& run

hardware

3

°

Business model M2M: put key assets in common

Orange

Partners

business

applicatio

n

IT for the

network

3. business models M2M:

example of innovative partnership

4

°

model where M2M goes from B2B to B2C, Service

Provider model can still work for some applications

M2M Global

Connectivity

End

Customers

Retail

Service

Providers



Service provider delivers the

value added service to the

retail end user



End customer does not know

the M2M connectivity provider



Business model works when

data traffic cost can be covered

by the value added service

(“low” data traffic)

Coyote

8

countries

1.4 Mio

subscribers

Telematics

Meets

Social

Media

Nr1 Europe

Sims growth

2011

Where is the real value? (1)

•

Coyote is a service

Connection

Services

Personal Info Management

Content

The bricks

of the

value

chain

Hardware

Where is the real value? (2)

=> Internet of Things

Agenda



what is M2M and its business potential?



natural role of a mobile operator in M2M



the business models in M2M



key take aways

Key take aways



M2M/internet of things is a big opportunity for Mobile Network

Operators fuelled by three waves/drivers



Orange embedded M2M business into its strategy

Orange can deliver a wide portfolio of M2M specific offers/services



at least 4 business models needed to address the different M2M

opportunities

Orange is able to address the 4 of them



case by case discussion to take place on business model when we

go to B2B2C requesting high data consumption

“

Mobistar/

Orange’s

M2M event

, one of the

liveliest of the year

”, Jamie Moss, Analyst,

Informa Telecoms & Media, Sept 2010

Yearly ecosystem event

Thank You

Enjoy

the rest

of the

day

Thank you

Local contact

T 00 00 00 00

F 00 00 00 00

[email protected]

Towards user co-creation

of value on the IoT

Démystifier l'Internet des

objets

Le Machine to Machine et

l‘IoT : une réalité