Building an Ecosystem for M2M Solutions

Transcription

1 Building an Ecosystem for M2M Solutions From a Vertical Value Chain Approach to a Network of Business M2M Reinhold Stammeier, CEO Device Insight, Germany Palm Springs, May 2006

2 Agenda Introduction Definition of an Ecosystem M2M Pitfalls of classical horizontal value chains M2M platform & applications the heart of the Ecosystem Case study DI networking Q&A

3 About Device Insight Device Insight is an IT M2M-Solution in the area of control, device management and data acquisition for remote machines, buildings and municipal infrastructures. Founded 2003; Based in Munich/Germany Product : CenterSight based on modular Web technology and IT standards like XML/Java Operated as hosting solution (ASP) or at the client s site (inhouse solution) approach for international manufactures and international organization service structures Device Insight has formed many partnerships with vendors of data modules, SI and connectivity companies in different industries

4 Statement: What is M2M (Machine-to-Machine)? M2M describes the communication of remote devices and machines with a central server platform in order to acquire data and allow direct remote interaction. Only very few machines talk directly to other machines! >> M2M enables companies to offer new, enhanced, and more cost efficient services. Any Ecosystem M2M needs to support the decision making process and professional end2end implementation to the potential markets and customers

5 The Ecosystem must support key drivers M2M Strategic Drivers: potential to lower costs in the service area new revenue streams enhanced service offerings improvement of customer loyalty M2M Technological Drivers: transmission technologies have proven to be reliable, secure, and fast Standardized hardware interfaces to devices Standardized interfaces to other IT-management systems M2M Other Drivers: mobile & DSL operators strongly promote M2M-communication services powerful and easy-to-configure data modules with IP stack are available

6 An M2M-Solution Approach Knowledge Knowledge Functional Functional Requirements Requirements Differentiation Differentiation Competition Competition Product Product lifecycle lifecycle Product Product strategy strategy End End Customer Customer needs needs Model Model Pricing Pricing strategy strategy Channel Channel strategy strategy Product Product Roadmap Roadmap -Modules -Modules Best Best of of breed breed tools tools // products? Connectivity Connectivity Data Data Management Management M2M M2M Applikation Applikation One/multiple One/multiple vendors? vendors? Core Core Competence? Competence? References? References? Flexibility? Flexibility? Does the Ecosystem work?

7 The Hypotheses are right! Harbor Research: Companies need to abandon command-and-control thinking and embrace new, fluid business ecosystems. Cooperation is a minimum requirement for success. >> DI believes: Well-constructed alliances can provide the opportunity to cross-breed capabilities, particularly across disparate markets and geographies.

8 Traditional Way of M2M Business Development

9 Traditional Way of M2M Business Development Value Chain: M2M Logical Components & Split User Customer Module IT- DSL Expansion Tendencies Example Value Chain M2M after M&A and/or R&D: The Horizontal One way Module NOKIA failure

10 Horizontal Expansion - Ecosystem Challenge No. 1 User Customer Module Module

11 Value Chain: Horizontal Expansion Hypothesis: greate unflexibilty loosing the view for differnt customer needs difficulties to form long term and solid alliances and strategic partnerships increase in costs problem of know-how integration Lie of synergies decreaseof innovation

12 Creating a Strategic Ecosystem The Future of M2M

13 Definition of Ecosystem and Strategic Alliance ( ) An ecological system is a functional dynamic organization, or what was also called steady state. Steady state is understood as the phase of an ecological system's evolution when the organisms are "balanced" with each other and their environment. ( ) (Wikipedia) Combine A Strategic Alliance is a mutually beneficial long-term formal relationship formed between two or more parties to pursue a set of agreed upon goals or to meet a critical business need while remaining independent organizations. It is a synergistic arrangement whereby two or more organizations agree to cooperate in the carrying out of a business activity where each brings different strengths and capabilities to the arrangement. (Wikipedia)

14 The Vertical Expansation Model Future of M2M? Modules * A A Modules B B Vertical Expansion Modules Modules C C D D Modules Y Y *Example DI Horizontal Flow of Information via Cooperation Network

15 Drives the M2M Ecosystem and Strategic Alliance Modules A A Modules B B Vertical Expansion Modules Modules C C D D Modules Y Y *Example DI Horizontal Flow of Information via Cooperation Network

16 The Cooperation Network Model: Best support the M2M Ecosystem Vertical expansion* overcomes drawbacks of classical approach in the M2M market Focussing the core business Flexibility in channels and partners Consideration of customer s needs / providing added value to customers Cooperation instead of competition Creating a common vision Real synergies Cost sharing in sales and marketing Multiplication of distribution channels Decrease in product lead times and life cycles Could be based on joined development, selling know-how and assets to other industry players

17 Another Hypothesis: & becomes the Heart of the Strategic Ecosystem M2M The platform & application is becoming more and more the key for achieving the business value of M2M solutions Presenting the reports, alarms, visualization via GUI s and insights of the machine data, processes & control for services Connectivity is not visible, its just a supporting enabler -Modules and local software are seen as the primary source and feed of information integration stands for quality and performance of application

18 Example: M2M Business as a Networking Ecosystem M2M Hardware Strategic Partners CenterSight M2M Application

19 Example DI: Streetlight expansion, a different market Partners: Manufacturer

20 Summary >> Well-constructed alliances can provide the opportunity to cross-breed capabilities, particularly across disparate markets and geographies. are balanced" among each other and their environment This may drive the future and massive expansions & growth in the M2M market place.