Title of the presentation

06/12/2011
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
Tweet us #ipforum
User/Password: ipforum
Ipforum231111!
Machine-to-Machine
10 years reality @ Mobistar
1
06/12/2011
Machine to machine: live at telco today
Gert Pauwels, Mobistar
Marketing Manager M2M (nat+Int’l)
AWT_November 2011
Agenda
 what is M2M and its business potential?
 natural role of a mobile operator in M2M
 the business models in M2M
 key take aways
2
06/12/2011
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)

Followed by Trains & Trucks & Compressors
3
06/12/2011
The OEM market

…OEM

…International customers (France Telecom)
Since 2001, Mobistar leads the way in the Machine to
Machine segment in Belgium … and beyond
Mobistar M2M card evolution
140,000
 Focus since 2001
 Dedicated financial reporting since 2004
129,978
120,000
100,000
 2009: FT International M2M Center
80,000
Mobistar is market leader
60,000
 End ’10: 65 % market share
40,000
20,000
0
2005
2006
2007
2008
2009
4
06/12/2011
Mobistar has 65% in Belgian market on M2M
Market Size: End 2010: 350k SIMS
Telematics
Point of Sales
60%
8%
End 2010
Telemetry
7%
10%
15%
What can we do with M2M (Internet of Things)?
tracking behavior
M2M platform
Orange Business Services
comply with regulation
sensor-driven
decision analytics
process optimization
optimized resource
consumption
5
06/12/2011
Tracking behavior
monitoring the behavior of persons, things or data through space and time
engines tracking
benefits

fleet management


route optimization
increase efficiency
reduce fuel
consumption
Process optimization
automated control of closed (self-contained)
systems
preventive maintenance &
optimization of field services
benefits


predictive maintenance spare
part management


service oriented
products
real-time monitoring
economy of operating
failure prevention
6
06/12/2011
where the volumes are/will be coming from?
Automotive
Connected Devices
Consumer Electronics
Connections
OEM-based
Smart Grid
eToll
eCall
Embedded network
Across all venues
Low Cost
High Volume
Regulatory
After Sales
Tracking&Tracing
mPoS
Remote monitoring
“Traditional” Applications
Embedded network
Specific products
Low Cost
High Volume
Network add-on
“Low hanging fruit”
High Cost
Low Volume
Time
Agenda
 what is M2M and its business potential?
 natural role of a mobile operator in M2M
 the business models in M2M
 key take aways
7
06/12/2011
Orange Group
Greenland
Iceland
Russia
Sweden
Finnland
Norway
Canada
Estonia
170 000
employees
50B€
29 500
employees
dedicated
to B2B
Latvia
United Kingdom
Denmark
Netherlands
Portugal
4 000
researchers in
Orange Labs
Poland
Germany
Belgium
Czech Republic
Luxemburg
Ukraine
Slovakia
Austria
France
USA
Switzerland
Hungaria
Slovenia
Kazakhstan
Italy
Serbia
Montenegro
Bulgaria
Usbekistan
Georgia
Macedonia
Albania
Spain
Armenia
Cyprus
Turkmenistan
Iraq
Iran
Israel
Kuwait
Algeria
Libya
Egypt
Saudi-Arabia
Mauretania
Senegal
Gambia
Guinea-Bissau
Guinea
Nicaragua
Trinidad
Costa Rica
Venezuela
Panama
Columbia
Sierra Leone
Guyana
Surinam
French-Guayana
Liberia
Chad
32 mobile
operations
Bangladesh
Cameroon
Uganda
Kenya
Rwanda
Burundi
Tanzania
Angola
Malawi
Mozambique
Sambia
Brazil
Bolivia
Zimbabwe
Namibia
Botswana
Paraguay
Swaziland
South Africa
Lesotho
Laos
Thailand
Vietnam
Cambodia
Dschibuti
Ethiopia
Taiwan
Myanmar
Yemen
Eritrea
Sudan
Central Africa
Zaire
Peru
India
Niger
Nigeria
Congo
Japan
Bhutan
Oman
Mali
Burkina Faso
Benin
Ivory Coast
Ghana
Togo
Gabun
Ecuador
Nepal
Pakistan
Qatar
United Arab Emirates
Haiti Dominican Republic
Jamaica
Puerto Rico
Belize
Honduras
South Korea
China
Afghanistan
Jordan
West Sahara
El Salvador
North Korea
Tadschikistan
Syria
Lebanon
Cuba
Guatemala
Kirgistan
Azerbaijan
Turkey
Greece
Tunesia
+2.5 M
m2m
active SIM
cards
Mongolia
Moldawia
Romania
Croatia Bosnia-Herzegovina
Marocco
Mexico
+200
employees
dedicated
to M2M
Lithuania
Belarus
Ireland
consolidated
revenus,
B2B 1/3
Somalia
Philippines
Sri Lanka
B2B
presence
in +200
countries
Brunei
Malaysia
Indonesia
Papua-New Guinea
Madagascar
Australia
Uruguay
Argentina
Chile
New Zealand
M2M solution building blocks & role mobile telco
hardware
connectivity
applications
integration
deployment
& run
service & solution
provider

chipset selection

M2M adapted tariff offer

consulting

consulting

maintenance

module fabrication
interface design

M2M adapted process
M2M SIM cards

global solution design
vendors sourcing


support
logistic
device integration
device fabrication

M2M customer care
connectivity++

application development
back-end supervision
interface
end-user interface
customer care





–
–


Web services and portal
deploying and operating lines
IS integration
deployment






service management
continuous evolution
Mobistar M2M connectivity
8
06/12/2011
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
unmatched
coverage
Orange FT Group
Deutsche Telekom
Teliasonera
trouble
shooting
your
market
expansio
n
covered!
minimised
business
downtime
global
device
testing
save costs
and faster
time to
market
joint
module
quicker
&
optimise
d
integrati
on
certification
9
06/12/2011
Mobistar global M2M connectivity is simple + flexible
19
hassle-free solution

economy of scale and
cost control

one-stop shop

simplified logistics
1
SIM
simplified
distribution
IMC
M2M communication
services
middleware
platform
gateway
easy set-up and
operations
gateway

one single technical
architecture/support

faster project
deployment and
time to market
Customer
local radio core mobile network Orange IP VPN
network
end to end responsibility
Our mobile coverage delivers a truly global footprint
IMC
M2M communication
services
middleware
platform
gateway
gateway
Customer
local radio core mobile network Orange IP VPN
network
end to end responsibility
10
06/12/2011
We developed a series of new features delivering
best in class M2M connectivity services
IMC
M2M communication
services
middleware
platform
gateway
gateway
Customer
local radio core mobile network Orange IP VPN
network
end to end responsibility
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

tailor-made pages (personalization)
11
06/12/2011
M2M portal
one tool for customer’s M2M business management
Customer Name
Complete M2M SIM portfolio, industry challenges driven
dedicated M2M SIM (2FF)
M2M 2FF reinforced
MFF 1
removable or soldered
MFF2 (ad’hoc)
(VQFN-8A)
soldered only
our M2M SIM portfolio matches M2M industry challenges:







wide temperature range (-40°to +105°C)
high resistance to vibrations
corrosive environment (saline environment, humidity)
fit to small machine (chip)
manufacturing processes (“pick and place”)
extended lifetime (up to 10/15 years)
heavily secured (anti-theft/fraud mechanism)
12
06/12/2011
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”
1
Option 1: direct
Orange
M2M Global
Connectivity
End
Service
Customers
Providers
2
Option 2: through
service provider
13
06/12/2011
1° Business model M2M: “natural role”
hardware
connectivity
applications
integration
deployment
& run
service & solution
provider

chipset selection

M2M adapted tariff offer

consulting

consulting

maintenance

module fabrication
interface design

M2M adapted process
M2M SIM cards

global solution design
vendors sourcing


support
logistic
device integration
device fabrication

M2M customer care
connectivity++


application development
back-end supervision
interface
end-user interface

customer care





–
–


IS integration
deployment
Web services and portal
deploying and operating lines




service management
continuous evolution
end-to-end capabilities, accountability and services
Partners
Intl M2M
Center
Orange
Service
Provider
or
end cust.
Partners
Partners
1° Business models M2M: examples
engines tracking
end customer
fleet management
Service Provider
14
06/12/2011
2° Business model M2M: Orange as an integrator
hardware
connectivity
applications
integration
deployment
& run
service & solution
provider

chipset selection

M2M adapted tariff offer

consulting

consulting

maintenance

module fabrication
interface design

M2M adapted process
M2M SIM cards

global solution design
vendors sourcing


support
logistic
device integration
device fabrication

M2M customer care
connectivity++


application development
back-end supervision
interface
end-user interface

customer care





–
–


IS integration
deployment
Web services and portal
deploying and operating lines




service management
continuous evolution
Orange end-to-end capabilities, accountability and services
Orange
devices
Mobistar
M2M
connectivity
Partners
Orange
Business
Services
Orange
IT&L@bs
Orange
Business
Services
Partners
Partners
2° business model M2M: examples
patient monitoring
end customer
gas consumption
end customer
15
06/12/2011
3° Business model M2M: put key assets in common
hardware
connectivity
applications
integration
deployment
& run
service & solution
provider

chipset selection

M2M adapted tariff offer

consulting

consulting

maintenance

module fabrication
interface design

M2M adapted process
M2M SIM cards

global solution design
vendors sourcing


support
logistic
device integration
device fabrication

M2M customer care
connectivity++


application development
back-end supervision
interface
end-user interface

customer care





–
–


IS integration
deployment
Web services and portal
deploying and operating lines




service management
continuous evolution
Orange
Partners
3. business models M2M:
example of innovative partnership
business
applicatio
n
IT for the
network
16
06/12/2011
4°model where M2M goes from B2B to B2C, Service
Provider model can still work for some applications
 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)
M2M Global
Connectivity
Service
Providers
Coyote
End
Customers
Retail
Telematics
Meets
Social
Media
1.4 Mio
subscribers
8
countries
Nr1 Europe
Sims growth
2011
17
06/12/2011
Where is the real value? (1)
• Coyote is a service
Personal Info Management
Services
Content
Connection
The bricks
of the
value
chain
Hardware
Where is the real value? (2)
=> Internet of Things

Coyote is a service
18
06/12/2011
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
19
06/12/2011
Yearly ecosystem event
“Mobistar/Orange’s M2M event, one of the
liveliest of the year”, Jamie Moss, Analyst,
Informa Telecoms & Media, Sept 2010
Thank You
Enjoy
the rest
of the
day
ITS Belgium October 2011
20
06/12/2011
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
IoT: Repères et Projets
Tweet us #ipforum
21