The Services Research Company™
Oliver MarksVP Research Digital & IoT [email protected]
HfS Blueprint Report
Internet of Things (IoT) ServicesExcerpt for AccentureOctober 2016
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Table of ContentsTOPIC PAGE
ExecutiveSummary 2
Key MarketDynamics 10
Research Methodology 21
ServiceProviderAnalysis 26
Market DirectionandRecommendations 33
AbouttheAuthorandHfSResearch 39
Executive Summary
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Introduction to the HfS Blueprint Report: Internet of Things (IoT) Servicesn TheInternetofThings(IoT)ServicesHfSBlueprintReportreviewstheemergingvaluechainof
servicesdevelopingfromprovidersthatareaddressingthispotentiallyhugeandtransformativetechnology.
n Unlikeotherquadrantsandmatrices,theHfSBlueprintidentifiesrelevantdifferentialsbetweenserviceprovidersacrossanumberoffacetsintwomaincategories:innovationandexecution.HfSemphasizestheemergingnatureoftheIoT,with55%ofthetotalBlueprintscoringlinkedtoinnovation-basedevaluationcriteria.
n TheHfSBlueprintincludesprofilesandassessmentsof17serviceprovidersofIoTServices.
n Wedisplayourassessmentsofthe17serviceprovidersontheHfSBlueprintGrid.
n TheHfSBlueprintGridrecognizesprovidersinthefollowingcategories:HighPotentials—up-and-comingserviceprovidersthatscoredhigheroninnovationcriteriathanonexecutioncriteriaastheybuildtheirpractices.ExecutionPowerhouses—established,high-executionserviceprovidersthathavebuilteffectivedeliveryoperationsbutneedtoinnovatetheircapabilitiesandofferingsfurther.HighPerformers—serviceproviderswithstrongcombinedinnovationandexecutionperformance.Winner’sCircle—serviceproviderswiththehighestoverallperformance.
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HfS Definition of Internet of Things (IoT) Services
HfSDefinesIoTServicesas:
1. Datastreamstoandfromconnectedphysicaldevices2. Deliveryofdatafromandtocentralizedrepositories
bythesephysicaldevicesforadditionalinteractions.
Note:Thedevicesdeliveringthedatamayormaynotcreatethedatathemselvesandmayormaynotprocesstheinformationbeforedeliveringit.Thedevicescanbeintelligentordumb—rangingfromanitemtaggedwithanRFIDchipthatiscodedwithauniqueidentifiertoalargesophisticatedheavyindustrialmachinewithsensorsthatmonitorandcontrolallaspectsofoperation,output,andhealth.Further,communicationofdatamaybedoneviavariouscombinationsofwiredand/orwirelessnetworks.Thesenetworkscanbeeitheropenorprivate,andwhilethiscommunicationisoftencarriedoutviaIPprotocol,itisnotarequirement.Asaresult,theIoTincludesabroadsetofactivities,someofwhichhavebeenusedfordecadesinindustrialcontrol.
HfSdefinesIoTServicesasdigitalstrategyandtacticalexecutiontosolvebusinessproblems,increaseoperationalefficiencies,and/orcreatenewmarketsbyleveragingdatatoandfromconnectedphysicaldevices(“things”)andthedigitalcore.ThedigitalcoreistypicallyablendoflegacyITinfrastructureandmoderndigitaltoolsandtechnologies.
IoTServicesdesign,deploy,andenableinteroperabilitywithconnected“things”asanaspectofanoverarchingapproachtosolvingbusinessproblemsforclientsandpartners,rangingfrominnovation,conception,andexecutionthroughtooperationalsupportandmaintenance.
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Key Highlights: The State of the IoT Services Market
n TherearetwodistinctIoTdevelopmentareas:WheretheIndustrialInternetusageofIoThasastrong,maturestandardsandinteroperabilityservicesculturerootedinITworkflowlogic,theIoTwillbeemerging,mutating,andevolvingfortheforeseeablefuture,makingithardforservicescompaniesofalltypestocoalesceteamsaroundrepeatableprocesses.
n IoTServices requiresmultipleskillsetsworkingtogether:TheIoTbridgesmultiplecompetenciescurrentlyhousedwithindifferentserviceproviderpracticelines.Business/digitalstrategy,telecom/mobility,cloud,userexperience,engineering,analytics,andsecurityareblendedinagileteamsforclientsafterstrategicintentsandgoalsaredefined.Forbuyers,executionsecurityandinteroperabilitycompetenciesaretablestakesforconsideration.Theabilityofparticipantstounderstandthebusinessvalueofexecutioniscriticalforsuccess.
n IoTisaningredientofbroaderdigitalinitiatives: Agreatdealofcurrentactivityfocusesonstrategy,innovation,andplanning,essentialbeforefocusingonexecution.Theabilitytogenerateandgatherdataonanever-broaderrangeofphysicalassetsandinteractionswillyieldvalueonlyifactionableinsightsyieldclearbusinessvalue.Servicesprovidersareexpectedtoparticipateinthesestrategicstages.
n IoTopportunitiesrequirecompetitorstocollaborate:Digitalplatformsthatintegratedatafrommultiplesourcesaresoughtaftertoyieldthegreatestandbroadestcontiguousvalues.IoTpointsolutionsareoflittleusetobusinessiftheycannotinteroperate,unlesstheysolveaveryspecificpainpoint.
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Key Highlights: The State of the IoT Services Market (continued)
n Thedigitaleconomyisforcingchangeonlegacybusinesses:ThereisonlysofarwecanpushlegacyITasaplatformforthescaleofdataandinformationflowsenabledbytheIoTandotherinitiatives.Atthesametime,therearehugebusinesspressuresfromnewerdigitalcompetitors,forcingmaturebusinessestolookhardatre-platformingtoaccommodatetheIoTandotherdigitaldataflows.
n Thesecretive,competitivenatureofIoTplanningobscuresmarketperceptions:Althoughindustrialefficienciescasehistoriesarecommonplace,fewofthevendorsanalyzedinthisBlueprintcouldpubliclydiscussthemoreinnovativeclientworktheywereworkingon.ThistendstoskewperceptionoftheIoTtoindustrialsensordataflowsandheavilymarketedservicesandtools.Proofsofconceptandpilotprojectsarealsooftenheavilypublicizedtogaintractioninthemarketplaceandjustifybudgetingdecisions,whereactualwell-fundedinitiativestendtobekeptundertightwraps.
n Securityfoundations:Acrosstherapidlyevolvingdigitallandscape,end-to-endsecurityiscriticalandisakeyvaluepropositionforallserviceproviderpartnerships.TheIoT’schaoticevolutioncontinuestobefullofpotentiallyexploitablepiecemealcomponentsthatcouldbedangerousplatformpointsofentryforhackers.Thischallengeslowsdevelopmentbutisessentialforresponsibleinnovationandbusinessstrategyrollout.
n Accessibleandactionabledataviaplug-and-play digitalservices:InnovativeIoTbusinessusesareanexcellentexampleofthe“borndigital”next-generationtechnologiesbeingleveragedtodrivemodernbusinessthinking.
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IoT Services Value ChainIoTServicesarethosethatdesign,create,andmanageapathwayforthephysicalworldtoentertheAs-a-ServiceEconomybycreatingabridgebetweenhardgoods(andservices)anddigitalinfrastructure.
IoTServices,however,donotincludethefollowingactivitieswhenconductedasastandaloneservice:deployingoroperating analytics,implementingorrunningadatarepository, developingordeliveringanetwork, andcreatingormaintainingaphysicaldevicewiththecapacitytocreateand/orcommunicatedata.ThosestandaloneactivitieswouldbeclassifiedasAnalytics,BigData,NetworkImplementation,andProductEngineeringServices,respectively.
IoTCONSULTING
• Strategicplanningandbusinesscasedevelopment
• Governancestrategy• IoTtechnologyroadmap(referencearchitecture)
• Securitystrategy• Datatransportandtelecomcostconsulting
IoT ENABLEMENT
• Productengineering• Sensordevelopment• Softwareengineering• Embeddedtech• Devicesecurity• CustomAppDev(dashboards,visualization,etc.)
• Physicalprototypingof“things”
IoT CONNECTIVITY
• Networkengineering• Networkimplementation
• Networksecurity• Telecom
IoT INTEGRATION
• Databasedesignandbuild
• AnalyticsImplementation
• Systemintegration• Applicationmodernization
• Security
IoT MANAGEMENT
• Devicemanagement• Cloudhosting• Networkmanagement• Datasecurity
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IoT Service Value Chain by Overall Current Supplier Maturity
IoTCONSULTING IoTENABLEMENT IoTCONNECTIVITY IoTINTEGRATION IoTMANAGEMENT
Strategic PlanningandBusinessCaseDevelopment
ProductEngineering
NetworkEngineering
Database DesignandBuild
DeviceManagement
GovernanceStrategy
SensorDevelopment
NetworkImplementation
Analytics Implementation CloudHosting
IoTTechnologyRoadmap(Reference
Architecture)
SoftwareEngineering
NetworkSecurity
SystemIntegration
NetworkManagement
CustomDevelopment EmbeddedTechnology
ApplicationModernization
DataSecurity
DesignThinking DeviceSecurity
Mature Competitivemarket withexamplesofserviceofferingsandcustomercasestudiesfromalargenumberofserviceproviders
Nascent Marketindevelopment withlimitedexamplesofserviceofferingsandevidence ofactivities
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n As-a-ServiceWinnersareserviceprovidersthatarebeingentrepreneurialalongsideclientsandinnovatinginbothIndustrialInternetandIoTactivities,buildingnewmarkets,paradigms,digitalsystems, anddataflowsaroundabreadthofdifferenttypesofconnecteddevices.Accenture,Atos,Cognizant,EPAM,Harman,IBM,HCL,TCS,TechMahindra
n TheHighPerformers allexecutewellaroundolderIndustrialM2Mmodels,andareexploringandinvestinginnewerIoT.Evolvingdemonstrationofmoretractionwithclientsindefininganddeliveringatscaleagainstbusinessoutcomesandco-innovation.
Dell,Infosys,NTTDATA,NIITTechnologies,Syntel,Tieton ExecutionPowerhouses Thiscategoryhasdeeppedigrees
andcompetenciesinIndustrialInternetworkataglobalscale,withtremendousresourcesbutislackinginmodernIoTinnovationandentrepreneurship.Genpact,Luxoft
n VirtusaPolarishasHighPotential withpost-mergergrowthshowingpromisethroughrapidmaturationasamodernIoTplayer.
AS-A-SERVICEECONOMY
Useofoperatingmodels,enablingtechnologies,andtalenttodrivebusinessoutcomesthroughoutsourcing.Thefocusisonwhatmatterstotheendconsumer.
HfSusestheword“economy”todescribethenextphaseofoutsourcingasanewwayofengagingandmanagingresourcestodeliverservices.
The8IdealsoftheAs-a-ServiceEconomy:
1. Write OffLegacy2. DesignThinking3. CollaborativeEngagement4. BrokersofCapability5. IntelligentAutomation6. AccessibleandActionableData7. Holistic Security8. Plug-and-PlayDigitalServices
Source:BewareoftheSmoke:YourPlatformIsBurningbyHfSResearch,2015
State of the Market: Service Providers
Key Market Dynamics
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The Rapidly Changing Face of Business Strategy, Associated Technologies and the Services that Are Sought AfterInourcurrenthigh-stakesbusinessera,whendigitalischangingallaspectsofdailylivesandbusinessmodels,theInternetofThings(IoT)stilllargelyhastwodimensions.TheIndustrialInternetoriginatedintheearlydaysofconnectivityandhasevolvedtowhatEuropeansnamed“Industry4.0”—arobustsetofstandards,technologies,andgovernancemodelsforsensorfeedbackfromequipmentandbuildingstomonitoroperationalefficienciesandhealth.
WheretheIndustrialInternet’srootsinthelastcenturylargelyassociateitwiththatera’senterpriseITlogicandworkflows,theIoThasexplodedontotheworldstageinatsunamiofhyperboleandredherrings,asistypicalwithemergenttrendsandtechnologies.TheIoTisfundamentallyanattributeofthedigitaltoolkit(mobility,cloud,bots,dataflows,andanalytics,humancollaborationandexperiences,security,payments,governance),andasaningredientindigitalbusinessplanshasvaryinglevelsofimportancedependingonbusinessgoalsandneeds.
WheretheIndustrialInternetisnowpartofthefabricofourlivesandthebedrockfornewerincrementaldevelopments,suchassmartcitiesandcars,IoTbusinessmodelsareevolvingveryfastforcommercialvalueapplications,bothasproductsandascountlesstuck-instoexistinginformationflowsandprocesses.
Atangibleexampleisthespeedwithwhichdronesemergedandbecameahugeconsumermarket,aninvaluablevisualinspectiontool,andanoriginatorofgigabytesofdatathatneedtobeprocessedandstored.
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The Rapidly Changing Face of Business Strategy, Associated Technologies and the Services that Are Sought After, continued
Dronesareoneexampleofthespeedatwhichdatacreation“things”andtoolsemergeandbecomepartofdailylife—anda$127billionmarketby2020accordingtoPwCdata.
LIDAR(aradar-likedetectionsystemthat“sees”usinglightfromlasers)willguidethenextgenerationsofdronesawayfrompowerlinesandotherobjects,allowingformanymoreautomaticusemodels.Thecommercialusesforthesetoolsandthedatatheycapturearewidespread,partofcountlessbusinessmodelsandleveragedineffortstocreateautonomousvehicles.
Currently,theIoTisanevolvingmassofcompetingstandards,securityconcerns,andinteroperabilityissues,withtransportationviamobilespectrum/G5,low-powerwideareanetworks,andsensortechnologiesalsoatvaryingemergentstagesofevolution.
Noneofthelegacyplayersinbusiness,IT,marketing,andlegalconsultinghavestrongbroadskillsetsindigitalstrategicandtacticalthinking,andthereisavacuumforcrediblepartnerstobusiness.Abroadmarketshiftfocusedondigitalinnovationandexecutioniscreatinganewgenerationoftrustedpartners,while someofthelegacythinkingplayerswillloserelevanceorbepushedtocommodityproviderstatus.
ThisreportfocusesoninnovationandexecutioncompetenciesaroundtheIoTwithinthebroadercontextofdigitaldemands,strategies,andtechnicalexecutionsophistication.
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FixedAssetsLeveragedAssets
2DesignThinking
3BrokersofCapability
1WriteOffLegacy
4CollaborativeEngagement
7HolisticSecurity
5IntelligentAutomation 6
Accessibleand
ActionableData
8Plug-and-PlayDigitalServices
SOLUTIONIdeals
LEGACY
ECONOMY
AS-A-SERVICE
ECONOMYCHANGEMGMTIdeals
§ MovingintotheAs-a-ServiceEconomymeanschangingthenatureandfocusofengagementamongenterprisebuyers,serviceproviders,andadvisors.
§ “As-a-Service”unleashespeopletalenttodrivenewvaluethroughsmartercombinationsoftalentandtechnologyfocusedonbusinessresultsbeyondcostreduction.
Journey to the As-a-Service Economy
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TOOLS/INFRASTRUCTURE GOVERNANCE
IoT As-a-Service Economy: Ideal Provider Attributes HfSusestheword“economy”toemphasizethattheemergingnextphaseofoutsourcingisamoreflexible,outcome-focusedwayofengagingandmanagingresourcestodeliverservices.OperatingintheAs-a-ServiceEconomymeansarchitectinguseofincreasinglymatureoperatingmodels,enablingtechnologiesandtalenttodrivetargetedbusinessoutcomes.Thefocusisonvaluetotheconsumer.
I.THEOPTIMUMOPERATINGMODEL
Outsourcing|SharedServicesGBS|BPaaS/SaaS/IaaS|Crowdsourcing
II.EMPOWERINGTALENTTOMAKEITALL
POSSIBLECapabilitiesoverSkills|
DefiningOutcomes|Creativity|DataScience
IV.TECHNOLOGYTOAUGMENTKNOWLEDGELABOR
DigitizationandRoboticAutomation|Analytics|Mobility|SocialMedia|CognitiveComputing
III.ABURNINGPLATFORMFORCHANGE
GlobalizationofLabor|High-GrowthEmergingMarkets|
DisruptiveBusinessModels|Consumerization
AS-A-SERVICEECONOMY
Agility|CollaborationOne-to-Many|OutcomeFocus
Plug-and-PlayServices
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IoT Service Provider Innovation and Execution Journey
15-year-oldIndustrialInternetLocalsensordatafromdevices
InnovationoutsideIndustrialInternetmodelsconnectingdatatotherestofthebusinessandpartnerecosphere
FullyconnectedenterprisewithIoTattributesfeedingdatatoandfroma‘digitalcore’
Examples:Fullyintegrateddigitalbusinessentitywithglobalconnectivity,processes, andcustomerrelationships- Amazon- AppleComputer
ManyCPGfirms- Fintechfirms
EvolutionoftheIndustrialInternettoIndustry4.0
BuyersshouldbeawareserviceprovidershaveverydifferentinnovationandexecutionstrengthsandweaknessesacrossIoTandIndustry4.0strategic,tactical,andtechnicalskillsets,anddifferenttechnologyplatformpartnerallegiances.
Execution
Inno
vatio
n
LEGACYECONOMY
AS-A-SERVICEECONOMY
Examples:LegacyserialporteraindustrialcontrolmechanismsLimitedconnectivityanddataflows- Oil&Gas- Manufacturing- Olderheaviertechnologies
Examples:Smartfactoriesandheavyequipmentwith“localonly” dataflows.MultipleIoTpointsolutions.Muchgreaterconnectivity,moremodernroboticequipment- Oil&Gas- Manufacturing- Modernheavytechnologies
Examples:Real-timedatafromflowtoandfrommanufacturing,servicesinconnected“oneconnecteddevicesoffice”environment- Consumermanufacturingofsmartproducts- Smartvehicles,equipmentwithstrongsupport,
self-healingattributes
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IoT Innovation and Execution Data Flow IdealsThe IoTflowstoCoreDigitalDataflowsfromsmartobjectsintotheircontrollingorganization’sdigital“backbone”core,whereitisanalyzed,distributed,androutedtorelevantsystemsandpeople
Execution
Inno
vatio
n
AS-A-SERVICEECONOMY
Security
LegacyIT
LEGACYECONOMY
DataLake
DigitalCo
re
IndustrialInternet
InternetofThings
Otherdigitalattributes
Real-timeintelligence,Analytics
DesiredbusinessOutcomes,valuetocustomer
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The Eight Ideals of the Broader As-a-Service Economy
LEGACYOUTSOURCING AS-A-SERVICEECONOMYIntelligentSimplification
Legacytechnologyinvestments thatlimitagilityandcreate massesofexceptionsaddressedthroughaddinginternalandexternalFTEs
1.WriteOff Legacy
Usingplatform-basedsolutions,DevOps,andAPIecosystemsformoreagile,lessexception-orientedsystems
Resolving problemsbylookingfirstattheprocessasthesourceofthesolution
2.Design Thinking
Understandingthebusinesscontexttoreimagineprocessesalignedwithmeetingclientneeds
Focusinggovernancestaffonmanaging totheletterofthecontractandthedecimalpointsof
servicelevels
3.Brokers ofCapability
Orientinggovernance tosourceexpertisefromallavailablesources,bothinternallyandexternally,toaddresscapabilitygaps
Evaluating relationshipsonbaselines ofcost,effort,andlabor
4.Collaborative Engagement
Ensuring relationshipsarecontractedtodrivesustainedexpertiseanddefinedoutcomes
Operatingfragmented processesacrossmultipletechnologieswithsignificantmanual
interventions
5.Intelligent Automation
Using ofautomationandcognitivecomputingtoblendanalytics,talent,andtechnology
Performing ad-hocanalysisonunstructureddatawithlittleintegrationorbusinesscontext
6.Actionable andAccessibleData
Applyinganalyticsmodels,techniques,andinsightsfrombigdatainrealtime
Respondingwith post-event fixes;littlefocusonend-to-endprocessvaluechains
7.Holistic Security
Proactivelymanagingdigitaldataacrosstheservicechainofpeople,systems,andprocesses
Undertakingcomplex,painfultechnologytransitionstoreachsteadystate
8.Plug-and-PlayDigital BusinessServices
Plugginginto“readytogo”business outcome–focused, people,process,andtechnologysolutionswithsecuritymeasures
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How IoT Services Play in the As-a-Service EconomyIDEAL AS-A-SERVICE
IDEALDEFINITION EXAMPLE
WriteOffLegacyUsingplatform-basedsolutions,DevOps,andAPIecosystemsformoreagile,lessexception-orientedsystems
Pullingrelevant dataflows fromring-fencedlegacysystemstocontributetothedigitalcoreinordertodrivemodernbusinessmodels
DesignThinkingUnderstandingthebusinesscontexttoreimagineprocessesalignedwithmeetingclientneeds
IdentifyingbusinessmodelsthatleverageIoTattributes todrivenewmarketsandcostsavings
Brokers ofCapability
Orientinggovernance tosourceexpertisefromallavailablesources,bothinternallyandexternally,toaddresscapabilitygaps
AssemblingfitforpurposeAs-a-Servicedigitalplatformframeworksto enablemodernbusinessdataflowstoandfromIoTcomponents
CollaborativeEngagement
Ensuring relationshipsarecontractedtodrivesustainedexpertiseanddefinedoutcomes
TheIoT contributesstructureddatatounstructuredcollaborativeframeworksacrossbroadecospheresaroundbusinessoutcomes
AccessibleandActionableData
Applyinganalyticsmodels,techniques,andinsightsfrombigdatainrealtime
TheIoTprovidesanewlevelanddepthofdataflowsthatrequireasophisticatedAs-a-Service cloudinfrastructurethatenablesreal-timeactionableintelligence
HolisticSecurityProactivelymanagingdigitaldataacrosstheservicechainofpeople,systems,andprocesses For theIoT,securingdatawithinsophisticatednetworksiscriticaltosuccess
Plug-and-PlayDigitalBusinessServices
Plugginginto“readytogo”business outcome–focused, people,process,andsolutionswithsecuritymeasures
Ecosphere thatrunsonan agiledigitalcorethatallowsandaccommodatesrapidtechnologychangesandenablesdataflowincreasesandrerouting
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IoT Solution Examples Across VerticalsINDUSTRY VERTICALS EXAMPLES
Aerospace ConnectedAerospace,Connected RepairSolutions
Automotive&Transportation ConnectedCar,Insurance Telematics,FleetManagement,ConnectedShip,InteractiveGeospatialSolution,ConnectedEVStations,PredictiveAnalyticstoReduceMaintenanceandWarrantyCosts
Manufacturing ConnectedAssetManagement,ConnectedWorkers,RemoteDiagnosticand Predictive MaintenanceforIndustrialMachines,StolenAssetRetrieval,TransparentSupplyChain,ConnectedShopfloor
Buildings ConnectedHome,SmartEnergy,ConnectedBuilding,ConnectedSecurity
Agriculture PrecisionFarming,FarmtoFork
Consumer Electronics SmartWearables,Subscription EnablementPlatform,AuthenticationApplicationsforWearables
Urban Infrastructure Smart Parking,SmartLight,SmartBin,SmartWaste,DigitalUndergroundMapping,Infrastructure Monitoring,BridgeMonitoring
Healthcare&LifeSciences ConnectedHealthcare,HealthFacilityWayFinding, VirtualCarePlatform,PatientEngagementPlatform,ConnectedPatient,EmergencyManagement
Oil&Gas DigitalOilField,SmartDrilling,SmartOilTransportation,Solarand WindPowerMonitoring
Utilities SmartGrid,SmartMetering,ConnectedPowerPlant,ConnectedSolarFarm,ConnectedWindFarm
Mining&Resources ConnectedMines,Connected SupplyChain
BFSI Cryptocurrency,BlockChainAssetManagement,BeaconsforCommerce
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IoT Solution Examples by Verticals: Innovation/Entrepreneurial vs. Execution
INDUSTRY VERTICALS EXAMPLES
Aerospace ConnectedAerospace,Connected RepairSolutions
Automotive&Transportation ConnectedCar,Insurance Telematics,FleetManagement,ConnectedShip,InteractiveGeospatialSolution,ConnectedEVStations,PredictiveAnalyticstoReduceMaintenanceandWarrantyCosts
Manufacturing ConnectedAssetManagement,ConnectedWorkers,RemoteDiagnosticand Predictive MaintenanceforIndustrialMachines,StolenAssetRetrieval,TransparentSupplyChain,ConnectedShopfloor
Buildings ConnectedHome,SmartEnergy,ConnectedBuilding,ConnectedSecurity
Agriculture PrecisionFarming,FarmtoFork
Consumer Electronics SmartWearables,Subscription EnablementPlatform,AuthenticationApplicationsforWearables
Urban Infrastructure Smart Parking,SmartLight,SmartBin,SmartWaste,DigitalUndergroundMapping,InfrastructureMonitoring,BridgeMonitoring
Healthcare&LifeSciences ConnectedHealthcare,HealthFacilityWayFinding, VirtualCarePlatform,PatientEngagementPlatform,ConnectedPatient,EmergencyManagement
Oil&Gas DigitalOilField,SmartDrilling,SmartOilTransportation,Solarand WindPowerMonitoring
Utilities SmartGrid,SmartMetering,ConnectedPowerPlant,ConnectedSolarFarm,ConnectedWindFarm
Mining&Resources ConnectedMines,Connected SupplyChain
Banking, FinancialServices,Insurance
Cryptocurrency,BlockChainAssetManagement,BeaconsforCommerce
Innovative/Entrepreneurial UsingDesignThinking, broaderbusinessstrategytodrivenewideasandmarkets
Execution Increasedfocus onIndustry4.0controlsystems,sensor,anddataflowtechnicalevolution
Research Methodology
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Research Methodology
n Morethan1,080datapointswerecollectedfrommorethan56IoTServicescontracts,covering18majorserviceproviders.Therewereothers(suchasHPandCapgemini)whoseIoTserviceofferingsarestillevolvingandwerenotyetinapositiontobeincludedbutonwhichwewillreportlater.
n DatawascollectedinQ2-Q32016,coveringbuyers,providers,andadvisors/influencersofIoTServices.
§ TalesfromtheTrenches:Interviewswithbuyerswhohaveevaluatedserviceprovidersandexperiencedtheirservices.Somecontactswereprovidedbyserviceproviders,andotherswereinterviewsconductedwithHfSExecutiveCouncilmembersandparticipantsinourextensivemarketresearch.
§ Sell-SideExecutiveBriefings:Structureddiscussionswithserviceprovidersregardingtheirvision,strategy,capability,andexamplesofinnovationandexecution.
§ PubliclyAvailableInformation:Thoughtleadership,investoranalystmaterials,websiteinformation,presentationsgivenbyseniorexecutives,industryevents,etc.
ThisReportIsBasedOn:
ParticipatingServiceProviders
DataSummary
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HfS Blueprint Scoring: IoT Services Scoring Percentage Breakdown
EXECUTION 45%
Quality ofCustomerRelationships 15%QualityofAccountManagementTeam 5%HowServiceProvidersIncorporateCustomerFeedback 10%
Real-WorldDelivery Solutions 20%ProprietaryDeliveryModels 15%StandardDeliveryMethods 5%
FlexiblePricingModelstoMeetCustomerNeeds 10%
INNOVATION 55%
FutureAlignmentwithChangingMarket 25%AcquisitionandInvestment Strategy 5%Partnership Ecosystem 10%Collaboration andDevelopmentTechniques 10%
StrengthofVisionforIoTServices 15%
AbilitytoGoBeyondStage1(Digitization) withtheIoT 15%CreationofProprietaryFrameworksforAnalyzingNeeds 5%IndustryExperience 10%
TOTAL 100%
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Blueprint Scoring Definitions: Innovation
INNOVATION Innovationisthecombinationofimprovingservicesandbusinessoutcomes.
FutureAlignmentwithChangingMarket Howfuturelookingistheserviceproviderintermsofaligningitself—inskillsandofferings—withtheevolvingmarketdemand?Isitkeepingpace,is itafastfollower,orisitleadingtheway?
AcquisitionandCapabilityDevelopment Howdoestheserviceproviderincorporate capabilitydevelopmentinvestments,includingacquisitions,intoitsstrategy,andwhathasbeenaccomplishedalready?
Partnership Ecosystem Whatis theroleofpartnershipsinthedevelopmentoftheserviceprovider’ssolutionecosystem?Howextensiveisthecurrentpartnershipecosystem?
CollaborationTechniques HowwelldoestheserviceprovidercollaboratewithclientsandpartnerstodevelopPoCsintofull-scalebusinesssolutionsandIoTofferings?
StrengthofVisionforIoTServices DoestheserviceproviderhaveastrongvisionforservicesacrosstheIoTvaluechain?
AbilitytoGoBeyondStage1withtheIoT Howwellhas the serviceproviderintegratedinnovativeapproachesandemerging skillsandtechnologiesintoservices?DoesitalsobringthecoretechnologyplatformtoassistanenterpriseindeployingthenextlevelofIoTsolutions?
CreationofProprietaryFrameworksfor AnalyzingNeeds
What,ifany,proprietaryframeworksdoestheserviceproviderutilizetoanalyzethe underlyingbusinessneed?
IndustryExpertise Doestheserviceprovider haveanyindustryIoT-specificofferings?Ifso,what arethenatureofthese,andhowfaradvancedisitinbuildingthisareaout?
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Blueprint Scoring Definitions: Execution
EXECUTION Howwelldoestheserviceproviderexecuteonitscontractualagreement,andhowwelldoestheserviceprovidermanagetheclient–providerrelationship?
QualityofCustomerRelationships Howengagedareserviceprovidersinmanagingtheclientrelationshipbasedonthefollowingmetrics:qualityofaccountmanagement,serviceprovider/clientengagement,andincorporationoffeedback?
QualityofAccountManagementTeam Whatisthequalitylevelofprofessionalskillsintheaccountmanagementteam?
HowServiceProvidersIncorporateCustomerFeedback
Howhaveserviceproviderstakenfeedbackandincorporatedthatfeedbackintoofferings?
Real-WorldDeliverySolutions Doesthesolutionprovidedcomparefavorablytopeersregardingvaluecreationthroughcurrentofferings,partnerships,subjectmatterexpertise,anddeliverymodels?
ProprietaryDeliveryModels What, ifany, proprietarysoftwareplatformsandprocessstructureshastheserviceprovidercreatedtodelivertheseservices?
StandardDeliveryMethods What,ifany,standardsoftwaretoolsandbusinessplatformsdoestheserviceproviderutilizetodelivertheseservices?
FlexiblePricingModelstoMeetCustomerNeeds
Howflexiblearetheserviceproviderswhendeterminingpricingofcontracts?HavetheserviceprovidersalignedthesetermswiththeuniquedemandsofIoTprojects?
Service Provider Analysis
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TodistinguishserviceprovidersthatshowcompetitivedifferentiationinaparticularlineofdeliverywithprogressinrealizingtheAs-a-ServiceEconomyofbusinessoutcome-oriented,on-demandtalentandtechnologyservices,HfSawardstheseproviderstheAs-a-ServiceWinner’sCircledesignation.
Guide to the Blueprint Grid
EXECUTION INNOVATION
As-a-ServiceWinner’s Circleshowexcellencerecognizedbyclientsinthe8Idealsin executionandinnovation
Collaborativerelationshipswithclients,servicesexecutedwithacombinationoftalentandtechnology asappropriate,andflexiblearrangements.
Articulatevisionanda“newwayofthinking,”haverecognizableinvestmentsinfuturecapabilities,strongclientfeedback,and aredrivingnewinsights andmodels.
HighPerformersdemonstratestrongcapabilitiesbutlackaninnovativevisionormomentuminexecutionofthevision
Executesomeofthefollowingareaswithexcellence:worthwhilerelationshipswithclients,servicesexecutedwith“greenlights,”andflexibilitywhenmeetingclients’needs.
Typically, describeavisionandplanstoinvestinfuturecapabilitiesandpartnershipsforAs-a-Service,andillustratean abilitytoleveragedigitaltechnologiesand/ordevelop newinsightswithclients.
High Potentialsdemonstratevisionandstrategybuthaveyettogainmomentuminexecutionofit
Earlyresultsandproof pointsfromexamplesinnewserviceareasorinnovativeservicemodels,butlackscale,broadimpact,andmomentuminthecapabilityunderreview.
Well-plotted strategyandthoughtleadership,showcaseduseofnewertechnologiesand/orroadmap,andtalentdevelopmentplans.
ExecutionPowerhousesdemonstratesolid,reliableexecutionbuthaveyettoshowsignificantinnovationorvision
Evidence ofoperationalexcellence;however,stillmoreofadirectiveengagementbetweenaserviceprovideranditsclients.
Lessevidentvisionandinvestmentinfuture-orientedcapability,suchasskillsdevelopment,“intelligentoperations,”ordigitaltechnologies.
Proprietary│Page28©2016HfSResearchLtd. ExcerptforAccenture
HfS Blueprint Grid: Internet of Things (IoT) 2016INNOVA
TION
EXECUTION
ExcellentatInnovationandExecutionInvestinginInnovationtoChange
BuildingAllCapabilities ExecutionIsAheadofInnovation
AS-A-SERVICEWINNER’SCIRCLE
EXECUTIONPOWERHOUSES
HIGHPOTENTIALS
HIGHPERFORMERS
CognizantHarman
TechMahindra
NTTData
Infosys
DellServices
EPAM
Luxoft
VirtusaPolaris
IBM
AccentureAtos
Syntel Tieto
NIITTechnologiesGenpact
TCS
HCL
Proprietary│Page29©2016HfSResearchLtd. ExcerptforAccenture
Major Service Provider Dynamics: HighlightsEXECUTION
• Buyingdecisionsareofteninfluencedbycomparingpricingflexibilityandco-investmentoptionswith sharedrisksandrewards.BuyerscitedIBM,Harman,TCS,and Tietoforflexibility,whileAccenture,Atos,NTTDATA, and TechMahindraAs-a-ServicepricingforIoTisconsideredforward-thinkingforsubscription-basedpromisedoutcomesovertime.
• Decisionmakingabout proprietaryand/oropensourcestandardsiscriticalfor the IoT,particularlyforinteroperabilitywithlegacysystems.Vendorsthatcollaboratewithpartnersandclientsareimportant,with Cognizant,EPAM, Genpact,andNIIT receivingkudosforworkingcloselywithclients.
• Tie-instolarger“systemsofintelligence”whereIoTdataflowstoandfromlargercoredigitalenterprisesystemsaspartofbroaderdigitalstrategiesrequiresophisticatedstrategyandsuppliers.Accenture,Atos,IBM,and Infosyswereconsideredparticularlycapableatthislevelofexecution.
INNOVATION
• BecausetheIoTistypicallyasubsetofabroaderbusinessstrategy,manysuppliershavepurchaseddesignandideationfirms(TechMahindrapurchasedPininfarina,Cognizant Designit asexamples)tomoveupthestrategyandinnovationvaluechainaroundbroaderdigitalconstructs.Howwelltheseadd-instolargeITorganizationsworkinthecontextofclientstrategicneedsrequiresclosescrutiny.Accenture currentlyhaveatacticaladvantage sincetheyarealreadytrustedstrategicadvisors.
• Innovationinthe IndustrialInternetevolutioninheavymachineryisverydifferentfromthemoreinterconnecteddigitalworld.Harman,Atos, and Luxoftarewellestablishedinthesmartcarstandardsecosphere,forexample,butothersmayhavegreateragilityinentrepreneurialconnectedproductefforts,dependingonbusinessgoals,needs,andscale.
• Where theOil&Gas, Utilities,andMining&Resourcesverticalsarefocusedonmodestinnovationwithincomplexlegacyindustrialframeworks,innovationinconnectedsmart“things”areonaverydifferenttrajectorywhereproof-of-valueexperimentationiscommon.Itisunfairtocalloutspecificsuppliersheregiventheirdifferentdimensionsofinnovation.
Proprietary│Page30©2016HfSResearchLtd. ExcerptforAccenture
IoT Services Value ChainIoTServicesarethosethatdesign,create,andmanageapathwayforthephysicalworldtoentertheAs-a-ServiceEconomybycreatingabridgebetweenhardgoods(andservices)anddigitalinfrastructure.
IoTServices,however,donotincludethefollowingactivitieswhenconductedasastandaloneservice:deployingoroperating analytics,implementingorrunningadatarepository,developingordeliveringanetwork,andcreatingormaintainingaphysicaldevicewiththecapacitytocreateand/orcommunicatedata.ThosestandaloneactivitieswouldbeclassifiedasAnalytics,BigData,NetworkImplementation,andProductEngineeringServices,respectively.
KeytoServicesMaturityontheServiceProviderProfilePages
MaturityisbasedonthefullsetofweightingcriteriaforIoTServices,andthefiveboxesarethefiveareasofthevaluechain.
LessMatureServices
MoreMatureServices
ReliesonPartners
IoTCONSULTING
• Strategicplanningandbusinesscasedevelopment
• Governancestrategy• IoTtechnologyroadmap(referencearchitecture)
• Securitystrategy• Datatransportandtelecomcostconsulting
IoT ENABLEMENT
• Productengineering• Sensordevelopment• Softwareengineering• Embeddedtech• Devicesecurity• CustomAppDev(dashboards,visualization,etc.)
• Physicalprototypingof“things”
IoT CONNECTIVITY
• Networkengineering• Networkimplementation
• Networksecurity• Telecom
IoT INTEGRATION
• Databasedesignandbuild
• AnalyticsImplementation
• Systemintegration• Applicationmodernization
• Security
IoT MANAGEMENT
• Devicemanagement• Cloudhosting• Networkmanagement• Datasecurity
Not Mature
LessMature
MoreMature
KeytoFourStrengths/WeaknessesontheServiceProviderProfilePages:Innovation,Execution,Industrial,andEntrepreneurial
Proprietary│Page31©2016HfSResearchLtd. ExcerptforAccenture
The Current Maturity of Service Provider IoT Service Offerings and Capabilities
CONSULTING ENABLEMENT CONNECTIVITY INTEGRATION MANAGEMENT
Accenture
Atos
Cognizant
Dell
EPAM
Genpact
Harman
HCL
IBM
Infosys
Luxoft
NIITTechnologies
NTTDATA
Syntel
TCS
TechMahindra
Tieto
VirtusaPolaris
LessMatureServices
MoreMatureServices
ReliesonPartners
KeytoServicesMaturityontheServiceProviderProfilePages
Not Mature
LessMature
MoreMature
KeytoFourStrengths/WeaknessesontheServiceProviderProfilePages:Innovation,Execution,Industrial,and Entrepreneurial
Proprietary│Page32©2016HfSResearchLtd. ExcerptforAccenture
AccentureBusinessstrategythroughtoexecutioncontinuitywithstrongIoTexpertiseasaningredientofabroaderdigitalplatformWinner’s Circle
Service DeliveryOperations Client Profile Acquisitions/Partnerships ProprietaryTechnologies/Platforms
Headcount: About5000inIoTandMobile,about36000inAccentureDigital
DeliveryNetwork:30%US,Europe,Asia;55%India;10%Philippines;5%EasternEurope
Go-to-MarketApproach:
Accenture’sIoTpracticeformedinDecember2014aspartofAccentureMobility,whichispartofAccentureDigital.
AccentureIoTpracticeorganizedacrossfivebusinesstowers:ConnectedTransport,ConnectedSpaces,ConnectedOperations,ConnectedHealth,andConnectedCommerce.Thesetowershave30+clientoffers.
TargetIndustries:Global2000companiesin19industries.TheAccentureIoTcoretargetindustriesinclude: Utilities,Energy,IndustrialEquipment,Chemicals,Travel,andTransportation.
Acquisitions:Mobgen(2016)• OPSRules(2016)• Cimation(2015)• Gapso(2015)
RelevantStrategicInvestments• RippleLabs(2016)• VenueNext(2015)• ChaoticMoon (2014)• Apigee(2013)
Partnerships:• AmazonWebServices• Apigee• Cisco• GE• Intel• Microsoft
ConnectedTransport:ConnectedVehicle,Fleet,TransitSystems,Insurance,Freight.ConnectedSpaces:ConnectedHome,ConnectedBuildings,ConnectedCitiesConnectedOperations:ConnectedAssetManagement,ConnectedWorker,ConnectedManufacturing,ConnectedAgricultureConnectedHealth:RemotePatientMonitoring,Wellnessand Prevention,ConnectedPharma,IntelligentHealthEnterpriseConnectedCommerce:IoTPaymentand DataSecurity,Blockchainand Cryptocurrency,ConnectedContextualCommerce.IoTplatform:ConnectedPlatformsasaService (CPaaS)integratedwithAccentureInsightsPlatform,acloudanalyticssolution,andtheAccentureIoTDevicePlatform(AIDP)anARM-basedRapidPrototypingdevicedevelopmentplatform.
IoTServicesOfferingMaturity:
IoTConsulting
IoTEnablement
IoT Connectivity
IoTIntegration
IoTManagement
Strengths Challenges
• IoTIsintheMobilityGroupWithinDigitalPractice:Accenture’sMobilityStrategyandConsultinggroupheadsupinnovationanddrivesactionplanswithclientsfortheIoT,pullinginthevariousAccentureplatformtechnologiesandpartnershipsasneeded.Momentumisunderwaywith1,200+IoTengagementsin2015and2016.
• InternalPlatforms,TightPartnerRelationships:ThereisafocusondevelopingadditionalproprietarydigitalsoftwareandAPIsthisfiscalyearfortheIoTinordertobuildoutfoundationsforAccentureanditsclients.
• VeryStronginLarge-ScaleComplexIndustrialandManufacturingIoT,andConnectedSmartBuildings:With30As-a-ServiceIoTapps,Accentureisinvestingaheadofthecurveforallsizesofprojectsfrombuildingstothe“things”connectedtothem.
• StrongPortfolioofIoTWork:AccentureismatureandexperiencedacrossmanyindustryverticalsinIoT,implementingthebackenddataflowsandinteroperabilityneededtodisseminateintelligence.
• AccentureIoTIgnite:Thismethodologydrivesbusinessvalueprototyping,PoCs,andprojectplanningtieswiththelargerservicesorganizationtoscaleprojects.
• SignificantReady-to-DeployTechnologies:Accenture’sacceleratorsallowagilityandspeedtomarketforIoTprojects,backedbydedicatedstaffingandprocesses.
• As-a-ServicePositioning:AccenturecontinuestoactivelybuilditsIoTofferingsaroundanAs-a-Servicemodel.Thisapproach,alongwithcomplexpartneringrelationships,maynotbeagoodfitforsomeclientneedsandculturesrootedinlessflexibleworkflowsandtechnologyrelationships,andAccenturewillneedtohelpbridgethesecompaniesfromtodaytotomorrow.
• IoTEmbeddedinMobilityPractice:This makessensefromanIndustry4.0perspective,butsomecompetitorshaveamoredirectlineagetodigitalstrategy,abetterfitforcertaintypesofIoTgoals.
• StrongPartnershipModel:Accenture mayrunintochallengesasthemarketmaturesandexistingbusinessmodelsaredisruptedbetweenlargertechplayers,causingstresstoclientplatformsasformeralliesbecomeadversaries.
• Messaging: IoTisburiedingenericAccenturedigitalmarketingpositioning,anditcanbehardtoidentifyspecificAccentureIoTattributes,uniqueselling,andvaluepropositions.
BlueprintLeadingHighlights
• BroadDigitalStrategicStrengths• StrongVisionfortheIoT• FlexiblePricingModels• CreationofProprietary
Frameworks• IndustryExpertise
Innovation
Execution
Industrial
Entrepreneurial
Market Direction and Recommendations
Proprietary│Page34©2016HfSResearchLtd. ExcerptforAccenture
What Is Next for IoT ServicesWeseethefollowingasthemajortrendsinthematurationofIoTServicesoverthenext2–3years:
n Themarketwillremainlooselydefinedassomeserviceprovidersrebadgeolderanalytics,mobile,andcloudpracticesas“IoTServices”whileotherscreatestandalonepractices—somenarrowpointsolutions,somebroaderandincludingelementsofIoT/IndustrialInternet.
n Asusecasesmatureandmarketdemandforsensordataflowsincreases,moreandmoreserviceproviderswillpositionthemselvesasIoTcapableandready.
n StandardsandsecuritywillcontinuetobeproblemareasthatimpedeusecasesastheIoTevolvesandbecomesmorecomplex.
n ThematureIndustry4.0andinnovative,emergentIoTuseswillbeincreasinglyintertwinedandreliantoneachother.
n AstheIoTisanattributeofbroaderdigitaldataflowvaluesneedsforbusiness,coherentplatformpartnershipswillbecomeincreasinglycrucialforsuccessforsuppliersandbuyers.
n Creatingdataflows,APIs,andanalyticsaretablestakesforservices,whileidentifyingbusinessvaluefromtheIoTwillbeanincreasinglyimportantdifferentiator.
Proprietary│Page35©2016HfSResearchLtd. ExcerptforAccenture
IDEAL AS-A-SERVICEIDEALDEFINITION
NON-EXISTENT INITIAL EXPANSIVE EXTENSIVE ALL
PERVASIVE
WriteOffLegacyUsingplatform-basedsolutions,DevOps,andAPIecosystemsformoreagile,lessexception-orientedsystemsandprocesses
2016 2020
DesignThinkingUnderstandingthebusinesscontexttoreimagineprocessesalignedwithmeetingclientneeds
2016 2020
Brokers ofCapability
Orientinggovernance tosourceexpertisefromallavailablesources,bothinternallyandexternally,toaddresscapabilitygaps
2016 2020
CollaborativeEngagement
Ensuring relationshipsarecontractedtodrivesustainedexpertiseanddefinedoutcomes 2016 2020
IntelligentAutomation
Use ofautomationandcognitivecomputingtoblendanalytics,talent,andtechnology 2016 2020
AccessibleandActionableData
Applyinganalyticsmodels,techniques,andinsightsfrombigdatainrealtime 2016 2020
HolisticSecurityProactivelymanagingdigitaldataacrosstheservicechainofpeople,systems,andprocesses 2016 2020
Plug-and-PlayDigitalBusinessServices
Plugginginto“readytogo”business-outcomefocused, people,process,andtechnologysolutionswithsecuritymeasures
2016 2020
IoT Services Market Adopting As-a-Service IdealsHowIdealsWillProgressBetweenServiceBuyersandServiceProviders
Proprietary│Page36©2016HfSResearchLtd. ExcerptforAccenture
2016–17 Recommendations: Enterprise Buyers
n Beawareofyour opportunitiesand goals: ThematureIndustrialInternetand theemergent IoTaretwodimensionsofthebusinessadvantagesbroaderdigitaldataflowscancreate.Itispossibletounlockthevaluefromtheseonlywithacoherentbroaderstrategy.Manyserviceprovidershavetechnicalexecutionskillsbutarelightonbusinessacumenincreatingandstitchingtogetherthedata“wiring” neededto realize valuefromsmart “things.”
n End-to-end securityisessential: Breachesofnetworksremainamassiveconcernasstandardsandusecasesmature.Theweakestlinkwillbesoughtoutbyattackers,andtheIoTprovidesdangerousphysicalopportunitiesinadditiontodatatheftunlesscarefulthoughtisgiventoallstagesofconnectivityandoperation.
n RealIoTactionishappeningingreatsecrecy:MostpubliclydiscussedIoT initiatives eitherarematurewithlittlecompetitivesensitivityorareprojectsandpilots thatrequirepublicity.Themostinterestingworkis,bynature,strategicallyimportantandunderwraps—pressvendorstoexplaintheirdifferentiationbeyondgenericprojects.
n Pointsolutionsare very different frombroaderdataflowsfrommultipledigitalelements: Addingsensorsandgatheringdataoftencontinueto betheeasiestaspectsoftheIoT.Creatingdatarepositoriesthatcancapturenewinsightsisnowstraightforwardandcanbeleveragedacrossthefirm.TherealchallengefortheIoTischanging broader end-userprocessestodigitalplatformparadigms.
n DeepskillsintheIndustrialInternetarenotthesameasentrepreneurialinnovation:Whiletheheavymachinery–focusedMachinetoMachine(M2M)Internethasbeenevolvingformorethanadecade,emergentdigitalbusinessmodelsforsensor-enabledmass-produceddevicesareaverydifferentworldthatrequiresdigitalstrategyapproachestomaximizebenefitfromdatacreation.
Proprietary│Page37©2016HfSResearchLtd. ExcerptforAccenture
2016–17 Shared Strategic Challenges: IoT Service Providersn Wheretoinvest?LegacyITservicescompanieshavesignificantchallengesinmakingIoTinvestment
commitments,withtheirgrowthinvestmentsatriskfromendlesslow-value“tirekicking”exercisesbyprospectstentativelyexploringandunderstandingbusinessvalue.As-a-Serviceapproachesthisproblemwithflexiblerisk-sharingoptionsthathelpbothsidesoftherelationshipgettogripswithriskandrewardoptions.Education,strategy,anddesignthinkingsessionshelpqualifyandreinventperceptionsofITprovidersasbeingontopofwhatisaverynewfocusareaformostpeople.
n Wheretopartner?Partnerecospheresinthe“systemsofintelligence”erarevolvearounddataflows,withIoTdevicesofallsizesinteractingwiththecoreofbusinesssystems.Manyoftheolderenterprisesystemswereneverintendedforthesevolumesofsophisticatedtransactionsandsecurity.ThismeansIoTserviceprovidershavetochoosetheirpartnerswiselytobealignedwithplatformsthatarefitforpurposeandmakesenseforclientstoinvestinaspartoftheiroperations.
n Wheretofocus?Pure-playdeep“bornIoT”servicesarefrequentlynotwellalignedwithbroaderdigitaltransformationeffortsoflargeclientsarounddatavalue,despiteIoTsensordatabeingincreasingimportantacrossmostverticals.Pointsolutionthinkingandlackofidentificationofdatavalueadjacenciescoulddoomsomehighlyskilledplayerstobeingmerelycommodityprovisionersunlessstrategichorizonsarebroadened.
n Whichstandardstogetbehind?Consistentstandards,security,anddescriptorsareessentialifsharedgoalsacrosstheserviceproviderspectrumaretobemet:Tomanyprospects,IoTisabewilderingblizzardofbuzzwords,conflictingstandards,poorinteroperability,andscarysecurityopportunities.
Proprietary│Page38©2016HfSResearchLtd. ExcerptforAccenture
2016–17 Recommendations: Service Providers, continued
n Abuyers’marketfornow:Forastill-emergingmarket,IoTServicesarebroadanddeepwithpatchyuptakeatwhatsometimeseemsalmostrandomsegmentinterestbyprospects.Consistencyisfoundviaclearpathstobusinessvalue,whichareachievedwithstrategicconsultingandplanning.Whethersupplierschoosetodrivethisactivitythemselvesorpartnerwithconsultingcompanies,thisisalmostinvariablywherescaleprojectsoriginateandwherefocusmustbeconcentrated.
n End-to-end ischallenging: TheIndustrialInternethasmatureincumbentswhilethedigitalentrepreneurspaceisfarmorefluid.Whiletheysharesomesimilartechnologicalunderpinnings,thebusinessdynamicsareverydifferent,andchoosingwhereandinwhatsegmentstospecializeisincreasinglyimportanttobuildoutpractices.Partneringadjacenciesarecriticallyimportanttoprovidebroaderofferingsthatmeetprospectandclientneeds,whileprovidingscalingoptions.
n Platformoropensource/bestofbreed?Both?Manymoderndigitalcompaniesare“fullstack”environmentswithalotofopensourceflexibility.TheIoTspacehasmanycompetingproprietaryplatformapproachesfromlargevendorsthatservicesproviderscanleverage.Findingabalancethatavoidsvendorlock-inisonprospectandclientmindsjustasitiswithsuppliers.As-a-Servicelendsitselftoplatformapproaches, butopensourceisanessentialelementofsystemsintegrationanddigitaldataflowenablement.
n Securitysecurity security:Fearofsecuritybreachesisasignificantbarriertomanycommercialdigitalinitiatives,andconcernsabout“theweakestlink” areallthemoreseriouswhen“things”canbecompromised.ClientsbeingabletosleepatnightknowingtheirnewIoTenvironmentsaresecurearetablestakesforparticipation.
About the Author
Proprietary│Page40©2016HfSResearchLtd. ExcerptforAccenture
Oliver MarksVPDigital&IoT,HfSResearch– SanFrancisco, CA
Overview• LeadsDigitalandInternetofThingsresearchforHfSResearch
• Extensivepriorexperienceconsultingandadvisingwithcompaniesoneffectiveinternationaldigitaltransformationstrategyandexecution
• Streamlining,simplifying, andmodernizingwaysofworking,findingthecorrect“recipe”ofnewtoolstocombinewithlegacysystemsandprocesses,andidentifyingviablebusinessmodels
PreviousExperience
• Built,ran,managed,andevolvedglobalgamedevelopercollaborationenvironmentatSonyPlayStationWorldwideStudios
• LedtheGlobalDigitalEnterpriseTransformationconsultingteamatHP
• Numerousreal-worldstrategicprojectsundertightNDAinmultipleindustryverticals,includingCPG,BFSI,Energy,andMergers&Acquisitiondigitalbusinessstrategies
• OliverisbasedintheSanFranciscoBayareaandgrewupintheUK.
Proprietary│Page41©2016HfSResearchLtd. ExcerptforAccenture
About HfS ResearchHfSResearch isTheServicesResearchCompany™—theleadinganalystauthorityandglobalcommunityforbusinessoperationsandITservices.Thefirmhelpsenterprisesvalidatetheirglobaloperatingmodelswithworld-classresearchandpeernetworking.
HfSResearchcoinedthetermTheAs-a-ServiceEconomy toillustratethechallengesandopportunitiesfacingenterprisesthatneedtore-architecttheiroperationstothriveinanageofdigitaldisruption,whilegrapplingwithanincreasinglycomplexglobalbusinessenvironment.HfScreatedtheEightIdealsofBeingAs-a-Service asaguidingframeworktohelpservicebuyersandprovidersaddressthesechallengesandseizetheinitiative.
Withspecificfocusonthedigitizationofbusinessprocesses,intelligentautomation,andoutsourcing,HfShasdeepindustryexpertiseinhealthcare,lifesciences,retail,manufacturing,energy, utilities,telecommunications, andfinancialservices. HfSusesitsgroundbreakingBlueprintMethodology™toevaluatetheabilityofserviceandtechnologyproviderstoinnovateandexecutetheEightIdeals.
HfSfacilitatesathrivinganddynamicglobalcommunityofmorethan100,000activesubscribers,whichaddsrichnesstoitsresearch.Inaddition,HfSholdsseveralServiceLeadersSummits everyyear,bringingtogetherseniorservicebuyers,providers,andtechnologysuppliersinanintimateforumtodevelopcollectiverecommendations—fortheindustryandtoadddepthtothefirm’sresearchpublicationsandanalystofferings.
Nowinits tenthyearofpublication,HfSResearch’sacclaimedblogHorsesforSources isthemostwidelyreadandtrusteddestinationforunfetteredcollectiveinsight,research,andopendebateaboutsourcingindustryissuesanddevelopments.HorsesforSourcesandtheHfSnetworkofsitesreceivemorethanamillionwebvisitsayear.
HfSwasnamed AnalystFirmoftheYearfor2016,alongsideGartnerandForrester,byleadinganalystobserverInfluencerRelations.