What do M2M Adopters Look Like?
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1 International M2M Council What do M2M Adopters Look Like? 11 December 2014 Presented by: Keith Kreisher, Executive Director
2 The International M2M Council Mission: Increase M2M deployments by proving the business case for the IoT. Formed in late 2013, the International M2M Council is a global trade association that currently has 17 Sustaining Members, including some of the largest and most influential companies in the M2M ecosystem. IMC Sustaining Members join the group for the following reasons: Adopter Outreach Programmes exclusive access to the largest crossvertical group of M2M Adopters (enterprise users) ever assembled. Global Channel Relations Sustaining members already include global telcos, the sole owner of Java IP, a top three module maker, and more. Thought Leadership the IMC already produces news, business content, and organic research on a global scale, shaping the industry agenda. 2
3 IMC Sustaining Members 3
4 IMC Adopter Members Adopters are associates that qualify for IMC membership by providing demographic information and permission for contact. Actively recruiting since February, the IMC has close to 3,000 Adopter Members, making it the largest and fastest growing organisation in the M2M/IoT sector. Adopters join to gain access to IMC content and interaction, including: Weekly, vertical market newslettersin their field, now published for logistics, energy, and healthcare, soon to include retail, building & construction, and smart cities. The IoT Content Library, including over 50 case studies, plus white papers, blogs, and more, all organized by vertical markets. Access to the IMC Membership Directory, where all members can speak directly to each other via in mail, much like LinkedIn. 4
5 IMC Adopters read Customers 3M Healthcare UK Business Mgr ABB Belgium Group Sr VP Airport Authority HKG PRC Comm & Control Engr Aurora Tankers Singapore Manager Bausch & Lomb UK Director Beiersdorf AG Germany Chief Scientist Betton Tecnica Construcao Brazil Engineer BIC France Supply Chain Manager BMW Germany Innovation Manager Bristol Myers Squibb USA CMC Documentation Mgr Ceva Logistics UK Operations Manager Children s Natl Medical Ctr USA Dir Telemedicine Coca Cola Argentina Innov & Supply Chain Dir DHL USA Director Dole Food Co USA Head of Process Innovation DSM Germany Sr Energy Program Mgr E.On UK Ports & Shipping Manager Eaton Singapore Supply Chain Manager Electrolux Egypt Lean Ops Mgr GE Belgium Technology Leader Fedex PRC Technology Svc Advisor Ford Motor Co UK Transport Manager Hyundai India Mgr of Operations & Sales iei Integration Corp Taiwan Assoc VP 5
6 IMC Adopters read Customers Ingersoll Rand Air Ctr India Mgr Testing & Reliability Interlink China PRC Managing Director Itron USA Director Business Development Johnson Controls USA EVP Ops & Innovation Kautex Textron Belgium Supply Chain Mgr Kuehne & Nagel USA Director Los Alamos Natl Labs USA Technical Staff Medtronic Biopharma France Scientific Dir Mitsubishi Corp Japan Chief Engineer, New Energy Sources National Grid UK Director of Regulations Novartis Pharmaceuticals Pakistan Zonal Sales Mgr Pakistan Railways Pakistan Chief Engr Parker Hannafin USA VP Technology & Innovation Philips USA Sr Development Manager Robert Bosch GmbH S Africa Key Accounts Director RWE UK Energy Manager SAIC USA Director Smart Grid Saudi Aramco USA Petroleum Engr Sdv Logistics France Transport Director Siemens Healthcare Austria Integrator Stryker Ireland Commodity Manager Tata Group India Mgr Plant Engineering Unilever Singapore Procurement UPS USA Global Solutions Director US Dept of Defense USA Supervisory Civil Engr US Food & Drug Admin USA Sr Staff Scientist Wal Mart USA Pharmacy Manager 6
7 IMC Adopter Member Demographics Vertical Markets 29% 34% 37% Energy Logistics Telehealth Organisational Level 57% 3% 18% 22% C Level VP / Director Manager Other Geographic Regions 12% 5% 4% 42% Europe N/C America M East /Africa 14% 23% Asia S America Oceana 7
8 What Do Adopters Buy? S'ware Applications S'ware Platforms Consulting Services SI Services Modules / H'ware Cellular Connectivity Emdedded Design Svcs Satellite Connectivity Chip Sets/ SIM Cards Other Components 8
9 Conclusions on Base Demographics The IMC targeted three vertical markets for recruitment: energy, logistics, and healthcare and obtained fairly even distribution. Europe and the Middle East are over represented, North America and (especially) Asia are under represented among the associates. Quality is solid 40% of the Adopter Members are at the director level or higher, and fully 18% label themselves as C level 77% claim to have direct participation in the buying process for M2M deployments. IMC Adopter Members tend to be more focused on systems level software, services, and hardware than on components. 9
10 Operations Dominates Adoption Principal Job Function 14% 8% 3% 1% Operations Marketing / Sales 16% 58% Product Devel / Design IT / Data Mngmnt Finance Other 10
11 It s Ops Across Verticals Operations Sls & Mktg Prdct Dev/Des IT Finance Other Energy Logistics Healthcare 11
12 And Ops Across Regions Operations Sls & Mktg Prdct Dev/Des IT Finance Other 0 Europe N/C America ME / Africa Asia S America Oceana 12
13 Ops leads, but who s on the team? Indicate the department/function of participants/constituents for your company s M2M/IoT deployment
14 Conclusions on Functional Roles A large majority of people (close to 60%) that are interested in the subjects of smart energy, connected healthcare, and smart logistics selfidentify as operations. This is surprisingly consistent across the aforementioned vertical markets, as well as across geographic regions of the world. When forming or joining internal teams to deploy M2M/IoT solutions, Adopters tend to look for people from their IT departments first, followed by other operations, and only look to engineering departments thereafter. 14
15 Biggest Concerns at Launch Identify the most critical needs to design & launch an M2M deployment Connectivity and network availability Data Security/integrity Device design and certification Device management & lifecycle Executive sponsorship/buy in Finance and funding Privacy/compliance 15
16 Ongoing Deployment Concerns Identify the most critical ongoing needs to manage & operate an M2M deployment
17 How do you measure success? 60 What method does your organisation use to measure the benefit of an M2M deployment? Impact on Cash Flow Incresed Revenue Market Share Return on Asset Return on Investment Total Cost of Ownership Other: Customer Satisfaction 17
18 Conclusions on Concerns/Benchmarks Cost and returns (and the control thereof) remain an over riding concern and requirement for enterprise Adopters. The integrity and security of data is now a major concern among those deploying M2M/IoTsolutions Total Cost of Ownership a Gartner Group concept that incorporates lifecycle management is one of the more important benchmarks used for measuring the success of deployments. 18
19 Extrapolations on M2M Adopters M2M Adopters at the enterprise level tend to come from operations, and therefore one might say that they are less likely to be technical in ways that are recognized by insiders to the M2M/IoT sector. When seeking assistance in their own organisations, they look at technical people first this usually means the IT department. At least a significant minority of them are aware of current/leading issues facing the industry, such as data security and life cycle management. Every deployment is different, but there is significantly more conformity between M2M Adopters from different vertical markets than we would have recognized maybe there is an M2M Community after all. 19
20 Methodologies IMC Membership Tabulations Data presented on slides 7, 8, 10, 11,and 12 are direct tabulations taken from IMC Adopter Member data points 2,822 separate registrations as of 1 October The information is provided by Adopter Members themselves, and is cleansed of obvious false information, but results are not independently audited. IMC Survey Results Data presented on slides 13, 15, 16, and 17 are direct tabulations taken from an IMC Adopter Member survey for which data is still be gathered currently with a total of 74 respondents. The information is provided by Adopter Members themselves, and is cleansed of obvious false information, but results are not independently audited. 20
21 What s next for the IMC? 5G IoT China Conference & Exhibition Beijing, (October 2015) Yes, it s all about the business case, but in some ways new technologies may change the basic models we know. Together with China Mobile, the IMC will explore SDN s, high frequency spectrum, energy harvesting, cloud architecture, end to end security, and more. Three New Verticals We re looking to establish a presence in three new vertical markets retail, building & construction, and public infrastructure (smart cities), with an eye to having well over 6,000 new Adopter Members by mid year More, Deeper Research Plans call for development of new M2M/IoT case studies that are deeper than what s been seen in the industry, special reports on security and other new technical development areas, and deeper surveys of the IMC Adopter communities. 21
22 Presenter, More Info Keith Kreisher Executive Director, International M2M Council Keith Kreisher heads the London based IMC, the world s largest and fastestgrowing professional organisation for M2M and the IoT. He is also director of the US based M2M Zone exhibition. Mr. Kreisher has held senior marketing management positions at business information companies such as McGraw Hill, Reed Elsevier, and Advanstar Communications. For more Information: The International M2M Council 16 Sussex Street London SW1V 4RW United Kingdom tel: info@im2mc.org 22
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