MACHINE-TO-MACHINE (M2M) THE 4 TH INDUSTRIAL REVOLUTION?

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1 MACHINE-TO-MACHINE (M2M) THE 4 TH INDUSTRIAL REVOLUTION? Jürgen Hase Springe, March 20, 2014

2 DEUTSCHE TELEKOM FROM TELCO TO TELCO PLUS MY FIRST CHOICE FOR CONNECTED LIFE & WORK TRADITIONAL INDUSTRY & MARKETS Global leading integrated telco provider Revenue EUR 58.2 bn; 232,000 Employees Presence in 50 countries T-Systems: global presence & alliances via partners VISION & STRATEGY Aim: Service provider Deutsche Telekom My First Choice for Connected Life and Work NEW BUSINESS AREAS Development of innovative services & new business models Entering new business areas (e.g. Automotive, Health, Energy M2M The overall enabler for Connected Life & Work 2

3 WHAT IS M2M? DEVICES NETWORK APPLICATION AREAS M2M Enabler Machine 1 Machine 2 Machine 3 Mobile Fixed-line Data Integration Point Machine-to-Machine communication stands for a technology that supports wired or wireless communication between devices anytime and anywhere. M2M enables innovative solutions for monitoring, localizing, controlling or maintaining machines remotely. It is expected that by 2020 nearly 50 billion devices worldwide will be connected. 3

4 M2M MARKET VIEW TREMENDOUS IMPACT ALONG ALL INDUSTRIES M2M Ecosystem Transport & logistics 2. Vehicle telematics 3. Smart metering/smart grid 4. Connected consumer electronics 5. Security 6. Retail & commerce 7. Industrial automation, monitoring & control 8. Health care 9. Public sector & infrastructure 4

5 M2M STRATEGIC APPROACH HORIZONTAL SOLUTION ENABLING Highly reliable connectivity Global footprint and seamless M2M services ACCESS An open and scalable M2M management platform Extended device and data management END-TO-END SOLUTIONS Standard and customized solutions DT as a one-stop M2M provider 5

6 DEUTSCHE TELEKOM S M2M ECOSYSTEM TOOLS FOR ALL MAJOR PLAYERS IN THE MARKET M2M Service Portal M2M Developer Platform Manage the M2M connectivity Close to 600 products available Deutsche Telekom s open landscape All around M2M application development Around 500 registered companies M2M Marketplace M2M Partner Portal 6

7 M2M SOLUTION OVERVIEW Real Real Time Time Cargo Cargo Monitoring Monitoring Wind Wind Power Power Plant Plant Management Management Remote Remote Equipment Equipment Management Management Tank Tank Level Level Monitoring Monitoring Serial Serial Switch Switch Network Network Vending Vending Telemetry Telemetry Solar Solar Power Power Plant Plant Management Management Parking Parking & & Mobility Mobility Management Management P Water Water Flow Flow Management Management Street Street Lighting Lighting Management Management 7

8 REMOTE EQUIPMENT MANAGEMENT Monitor and manage machines remotely from wind turbines to manufacturing plants. Wind Power Photovoltaic Water Plant Any machine or plant 8

9 REMOTE TANK LEVEL MANAGEMENT Highly improved distribution. 24% fewer fuel and gas delivery trips needed 9

10 FROM TECHNICAL VIEW TO CUSTOMER BENEFITS CONNECTIVITY - BUSINESS INTELLIGENCE - BUSINESS MODELS INNOVATE & GROW New Business ANALYSE & OPTIMIZE Data Analytics & Business Enhancement CONNECT & VISUALIZE Connectivity & Business Transparency 10

11 M2M SOLUTION AND DATA SILOS M2M SOLUTION SILOS Isolated M2M s in every vertical segment Data silos limited use of data produced and collected by M2M s Missing horizontal integration 11

12 GLOBAL INDUSTRY REQUIREMENTS BEYOND ISOLATED M2M SOLUTIONS AND DATA SILOS Individual end-customer wishes Further reduction of costs Availability of information in real time Optimization of resource usage Integration of customers and business partner into processes 12

13 FROM VERTICAL ISOLATION TO HORIZONTAL INTEGRATION DEUTSCHE TELEKOM HORIZONTAL SOLUTION ENABLING ISOLATION HORIZONTAL SOLUTION ENABLING & OPEN API S Secure Data Storage & Big Data Analytics M2M Application Services M2M Services Enabling Middleware M2M Access & Enabler Platforms Remote Equipment Management Serial Switch Network Solar Power Plant Management Water Flow Management... Certification & Additional Services M2M Developer Platform Vertical Vertical Vertical Vertical Vertical Vertical 13

14 COMMUNICATION WITHIN THE INDUSTRIE 4.0 COMPONENTS AND BENEFITS Industry machines Devices Sensor technology Productivity increase and cost reduction Support services for the employee Big Data Cloud Computing M2M Vehicles Steering systems Grids New business models Increase competitiveness of German industry Networks IPv6 ICT-Security 14

15 THANK YOU! JÜRGEN HASE Vice President M2M Competence Center Deutsche Telekom AG Landgrabenweg 151, Bonn Mobile:

16 BACK UP

17 REAL TIME CARGO MONITORING Strictly confidential, Jürgen Confidential, Hase - VP M2M Internal Competence Center Author - Deutsche / Presentation Telekom title AG 03/20/2014 3/6/

18 16 MILLION CONTAINERS IN TRANSIT DAILY 30% of all shipments are either damaged or delayed 15% of companies logistics cost is inventory cost safety stock 30% of all perishable goods never reach their destination The EU suffers 6 billion of tax fraud every year $60 billion global shrinkage from expiry, loss, damage before delivery 1 in 5 cargo claims is due to moisture Growing demand for global real time solutions to track and secure cargo containers. 18

19 REAL TIME CARGO MONITORING SOLUTION Tracking Device Wireless Connectivity SaaS and Dashboard Customer Care / Support Tracking and sensor device mounted to reefer or dry container Embedded SIM card/ Wireless connectivity Cloud based real time cargo monitoring application; web based dashboard for cargo monitoring and management Customer care/support for complete E2E solution 19

20 TRACKING DEVICES Tracking devices available for dry and reefer container GPS module tracks the containers position GSM module (quad band) to transmit all data Sensors inside containers measure ambient conditions (e.g. temperature and humidity), detect shock, light intrusion, door opening, and device mounting/removal For reefer containers the tracking device is in two parts one for inside and one for outside the container to seal it hermetically Easy to mount and to remove 20

21 SaaS AND DASHBOARD Cloud-based monitoring software Real-time analytical data accessed via a Webbased customer dashboard (for PCs) Data for position, temperature, humidity, door opening/light intrusion, movement, shock and mounting, shipment status and history Ability to manage start and end of shipments per shipment Automated alert and notification Data export to Excel 21

22 CUSTOMER SUPPORT Scope: Handling of perceived service anomalies Support language: English Channel: to Availability: The help desk is available by from Monday to Friday Response time: Within 4 hours if the request is sent in before 2 pm EST. Anomalies forwarded after 2 pm will be answered by 8 am next morning EST 22

23 FLEXIBLE AND TRANSPARENT Flexible in handling Tracking device is not built into the container Customer can mount tracking device to and remove it from any container Transparent business model and flexible use Pay-as-you-use service fee per shipment for complete end-to-end support No investment in new assets CAPEX-free Immediate start of service One-time set-up fee 23

24 OPTIMIZED SUPPLY CHAIN AND REDUCED COSTS Reduce inventory carrying costs know exactly when freight arrives at destination Fulfill customers expectation and enhance customer retention by delivering on time and in perfect quality Manage and control supply chain and ensure compliance with regulations by tracking the freight from start to finish Improve security and reduce shrinkage real time tracking 24/7 Pay-as-you-use -service with no pre-investment Reduce insurance costs Deutsche Telekom s Real Time Cargo Monitoring solution. 24

25 IF YOU CAN THINK IT, IT S POSSIBLE WITH US! Name Lastname M2M Competence Center, Deutsche Telekom AG Landgrabenweg 151, Bonn Germany 25

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