M2M In Utilities- Beyond Meters Into The Grid

M2M in Utilities M2M in Utilities –– Beyond Meters into the GridBeyond Meters into the Grid

Staying ahead in the M2M GameStaying ahead in the M2M Game

Yiru Zhong, Analyst

ICT

17th November 201117th November 2011

Today’s Presenter

Functional Expertise

8 years of expertise in Telecommunications, particular expertise in :

Yiru Zhong, Analyst

Frost & Sullivan

2

8 years of expertise in Telecommunications, particular expertise in :

- Enterprise Communications and Telecommunications Infrastructure (Mobile & Fixed)

- ICT requirements in Utilities, Transportation and Healthcare sectors

- Quantitative skills

Industry Expertise

� Fixed & Mobile Consumer Communication Services

� Enterprise Communication Services & Adjacent Industries Expansion

� Machine-to-Machine Communications & Applications

Focus Points

� Setting the Scene

� Opportunities in M2M

3

� Winning the Race

� Key Takeaways

Setting the Scene

4

The Future is A Pervasive Network of Humans, Machines and Intelligent Objects

5

Growth Opportunities Lie in Industries Where Customer Requirements Will be More Complex

30%

27%

12%

22%

35%

7-year CAGR, %

6

35%

18%

34%

29%

30%

Source: Frost & Sullivan

Extract from “Smart Cards in the M2M Communications Market–

A Competitive Analysis of SIM Cards, Modules, and Software Platforms” 2011

The Marketplace Becomes More Crowded as Market Leaders Tap Immediate M2M Opportunities

7

Opportunities in M2M

8

M2M Communications Came to the Fore with Energy Legislation

Evolution of M2M Applications in Utilities Over Time

Co

mp

lexit

y o

f M

2M

Dem

an

d Hig

h

Customer Requirements

for M2M Connectivity

• SLAs

• Reliable, robust and

mission critical security

for communications

networks

• Integration of IT and

communications

Customer Requirements for M2M Connectivity

• SLAs and network reliability and robustness

• Security

• More complex managed services options

Customer

Requirements for

M2M Connectivity

• Network coverage

• Network reliability

• Limited data

volumes

communicated per

M2M unit• Automated Sense and

9

Co

mp

lexit

y o

f M

2M

Dem

an

d

Lo

w

communications

servers for one-stop

platform for policy

control

M2M unit

• Policy control

platforms


<2008 2008-2010 2011-2015 2016-2020Timeline

• Metering Deployments

• Mobile workforce management

• Remote Asset Diagnostics

• Exception Alerts• Asset Performance

Monitoring• Voice Communication

• Workflow Automation

• Third-party Communications

• Limited Interpretation of Captured Information

• Automated Sense and Response

M2M Communications Allow Electricity Grids to be More Intelligent Across All Value Chain Functions

10

M2M in Smart Metering – A Gateway to New Services


• Remote Asset Diagnostics

• Exception Alerts• Asset Performance

11


• Asset Performance Monitoring

• Voice Communication

M2M Beyond Smart Metering – Distribution Automation




• Limited

12




Future M2M Applications in Value Chain - Transmission




• Limited

13



Future M2M Applications in Value Chain - Generation


• SLAs and network reliability and robustness

• Security• More complex

14

• More complex managed services options

1. Anticipate M2M Customers’ ICT Requirements

2. Assess Opportunities for Portfolio Expansion

The Market Leader Stands Out from the Crowd in 3 Steps

Winning the M2M Race

15

for Portfolio Expansion

3. Engage in Offensive Partnership Alliances and/ or M&A Strategy

Source: Google Images

1. Anticipate Existing M2M Customers’ ICT RequirementsE

xp

ecte

d M

on

itis

ati

on

of

M2M

Serv

ices

Hig

h

IT Integration

Managed Services -Utilities

Professional Services

HAN/WAN rollouts

Data analytics

16

Exp

ecte

d M

on

itis

ati

on

of

M2M

Serv

ices

Lo

w


Singular Highly integratedBreath of Services

Connectivity

Utilities Applications

Integration

Roaming

Billing

Service Fulfillment & Assurance

IT Outsourcing

HAN/WAN rollouts

Data warehousing

Managed Services -Telecoms

2. Assess Opportunities for Portfolio Expansion

MACHINEMACHINE

SensorsSensors

ICIC

MODULEMODULE

GatewayGateway

ModemModem

GATEWAYGATEWAY

TransportTransport

ServicesServices

DATA PROCESSING

DATA PROCESSING

MiddlewareMiddleware

ViewingViewing

SERVICESSERVICES

IS IntegrationIS Integration

DistributionDistribution

END CLIENTEND CLIENT END USERSEND USERS

Traditional M2M Vendors Traditional M2M Vendors

Traditional

M2M Service

Providers

Traditional

M2M Service

Providers

17

Source: Telit, Frost & Sullivan

Telecom M2M Service ProvidersTelecom M2M Service Providers

ProvidersProviders

Traditional IT/SI Traditional IT/SI

Industry VendorsIndustry Vendors

Current functionalities Future functionalities

Telecom

Service

Providers

Telecom

Service

Providers

3. Engage in Offensive Partnership Alliances and/ or M&A Strategy

18

Generation Transmission Distribution Retail Storage

Energy Service

Providers

New service

providers

Telecoms

IT

M2M

Industry

Transport Services Middleware ApplicationsDeliveryMachine Modules

Gateway Data processingServices

Who will Stand Out from The Crowd?

1. Detailed Customer Understanding

19

Transport Services Middleware Applications

Telecoms

IT

M2M

Industry

M2M

Industry

Telecoms

IT

Distribution Channels Industrial Technology ICT Technology Hardware & Devices Adoption


2. Comprehensive Product Range

3. Flexible Development Range

Legend: Strong Capability Fit Medium Capability Fit Weak/No Capability Fit

Key Take-Aways

• Upstream effort to reposition & educate market & customer segment

• Applications & Software will win the day

20

• Securing important eco-system relationships has a first mover advantage

Next Steps

� Request a proposal for or Growth Partnership Services or Growth Consulting Services to support you and your team to accelerate the growth of

your company. ([email protected])

� Join us at our annual Growth, Innovation, and Leadership 2012: A Frost & Sullivan Global Congress on Corporate Growth (www.gil-global.com)

21

� Register for Frost & Sullivan’s Growth Opportunity Newsletter and keep

abreast of innovative growth opportunities

(www.frost.com/news)

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For Additional Information

Yiru Zhong

Analyst

ICT

+48 22 390 41 28

[email protected]

Joanna Lewandowska

Corporate Communications

ICT

+48 22 390 41 46

[email protected]

24

Gustavo Cury

Sales Manager

ICT

+44 207 343 8310

[email protected]

Adrian Drozd

Research Manager

ICT

+44 1865 398 699

[email protected]

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M2M In Utilities- Beyond Meters Into The Grid

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