Improve the product lifecycle

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1 Improve the product lifecycle Vodafone M2M solutions for manufacturing m2m.vodafone.com Vodafone Power to you

2 Vodafone M2M solutions for manufacturing What s facing manufacturers today? Whether you re a producer of solar panels or luxury cosmetics, all manufacturers face pressure from fluctuating demand and rising energy, labour, and raw materials costs. Success means finding innovative ways to improve processes right across the product lifecycle and making core activities, such as managing stock, more efficient. How can you: Improve quality to minimise recalls and warranty work and better hit customer needs? Align production with fluctuating demand to eliminate waste? Innovate your product designs and your processes? Optimise energy use throughout your organisation? We re here to help Machine-to-machine (M2M) use is rocketing in manufacturing. The Vodafone M2M Adoption Barometer 2014, based on independent research, shows 20% of all manufacturers now use M2M almost double the previous year s proportion. M2M solutions can provide you with real-time data to help you optimise each stage of your product lifecycle enabling you to drive down costs and serve your customers better. 66% of companies that are already using M2M have seen ROI within 12 months. Vodafone M2M Adoption Barometer 2014

3 3 M2M: the real-time manufacturer The Internet of Things will transform the way you run your business M2M technology provides the foundation for this revolution. Keep your production lines rolling Problems on the assembly line can stall production and slow your time to market. M2M technology enables you to keep production running continuously, because it can alert you to early indicators of impending equipment failure. Monitoring devices, which you install in your factory assets such as production machinery can detect these problems, divert or reschedule production, order replacement parts, and schedule in an appropriate window for just-in-time servicing to minimise disruption. Equipment monitoring has become the most widely used M2M application in manufacturing, according to the 2014 Barometer. Speed up the supply chain When your supply chain is fully connected with M2M technology, you ll be able to speed up your processes because stock management, placing orders, booking deliveries and assigning jobs all happen automatically without the need for human intervention. With an efficiently connected supply chain, you can afford to keep stock levels in warehouses at a minimum reducing storage costs and product depreciation. And, when your customers make an order, you are able to fulfil it quickly and efficiently. An M2M-enabled supply chain cuts your time to market, so any technical issues or sourcing problems can be quickly resolved. Cut energy costs and carbon emissions With energy prices rising and governments tightening the screw on industrial carbon emissions, it has never been more important to be in control of your energy use. M2M can help you reduce your overall consumption and comply with regulation through tracking usage data. You can deploy smart meters installed at your sites to track the energy usage of factory assets, warehouse systems, heating, and lighting in near real-time. Your management team can use this data to see where energy is being wasted, and optimise its usage for instance by scheduling energy-intensive activities at cheaper times of the day, or optimising processes and upgrading facilities. Track goods in transit Your products can be vulnerable to theft when in transit between your factories, warehouses and customers even if you use a third-party logistics firm or run your own fleets in-house. But with our M2M tracking solution, your security teams can always know the exact location of your assets. We can install M2M trackers on individual products, containers or cages to monitor their location, motion, and light levels when products are in transit. The devices will alert your security team if your products or their containers have been tampered with. Manufacturing M2M investment set to rise By 2018, manufacturing companies will spend $7.1 billion on M2M technology. Ovum, 2014 M2M deployments are accelerating There are 84 million global M2M connections in the manufacturing and supply chain sector today. This figure will rise to 219 million by Machina Research, 2013

4 Vodafone M2M solutions for manufacturing Diversify your business model M2M can do more than improve your operations it can change the very products and services you offer, and generate extra revenue. By 2015, more than 70% of manufacturers will use service as a product differentiator. Oxford Economics, 2013 Drive product quality improvements Using granular information about product behaviour collected in situ, you can profile exactly how, where, when and under what conditions customers are using your products. You can identify patterns of failures to promptly issue recalls, send firmware patches over the air, and quickly revise product designs. And in the longer term, you can focus new product development to target unmet customer needs and outpace your competitors. Support new pricing models Because it enables you to precisely track how each product is used throughout its lifespan, M2M also gives you the opportunity to shift to utility pricing: selling products as a service, a trend called servitisation. For instance, you can sell printers by the page, coffee machines by the drink dispensed, solar panels by kwh generated, or air conditioners by hour of cooling. This kind of pricing model is potentially much more attractive for your customers because it ties directly into their cashflow and the way they measure their own business performance. It s better for you too, giving you an ongoing revenue stream, greater profit margins, and a way to differentiate yourself from your competitors. Make maintenance more profitable For many manufacturers, service and maintenance contracts are a key part of the value proposition to customers. M2M can make these contracts better for both provider and customer, as KONE has found. KONE is working with Vodafone to install M2M into its lifts. Sensors report on each lift s usage and give early warning of potential problems, enabling KONE engineers to conduct preventative maintenance. KONE avoids the cost of unnecessary routine maintenance visits, and customers benefit from greater lift availability. Embrace innovation M2M-enabled servitisation can also open up entirely new revenue streams, enabling you to sell business outcomes, not just hardware. For example, a security camera manufacturer could use M2M to provide a complete packaged connected security service, including cloud storage, remote camera control and automatic alerts when it detects motion. Feeding machine manufacturer Keenan is one business that s already made the leap, from selling feeding equipment to providing a complete, premium nutrition service. It uses Vodafone M2M connectivity to automatically calculate customised feed mixes for livestock on its customers farms, improving animal nutrition and yield, and saving farmers time and money.

5 5 M2M in action Manufacturers are already using our M2M solutions to improve processes, cut costs, and offer a better service to their customers. Here s an example of an M2M project in place today. Carel uses M2M from Vodafone to transform its business Carel is a leading international provider of climate controls and equipment for buildings. As part of its growth strategy, the company was keen to expand and transform its business from a pure hardware sales model to selling value-added services that generate ongoing revenue. Our M2M remote monitoring solution has helped Carel do just that. Using M2M devices installed in products such as heat pumps and refrigeration racks, Carel can now get real-time detailed information about each product s performance. The manufacturer is using this information to improve the efficiency and effectiveness of its maintenance services. The M2M-enabled products alert Carel s support team to potential equipment problems before they happen so engineers can schedule maintenance visits to the customer s site exactly when needed. Customers benefit because problems are fixed before they result in a breakdown; Carel benefits from increased profitability because M2M data can help minimise engineer time spent on unnecessary routine checks. M2M information also helps Carel s customers directly. Carel is giving individual businesses access to product performance data through an online portal, enabling them to take control of their energy usage. When choosing its M2M provider, Carel looked for scalability, technical support, and worldwide reach. Vodafone was a clear winner. Our consistent regional pricing, combined with global coverage and simple configuration, is helping Carel roll its M2M services out to more countries and expand its opportunity. It s always the same with new projects it s not possible to achieve perfection. But we expect to work through problems together. We have that relationship with Vodafone. No piece of hardware should be without M2M technology. Serena Ometto, Product Manager, Carel

6 Vodafone M2M solutions for manufacturing Making it happen Every manufacturer is different. So if it s to deliver the benefits you expect, your M2M solution has to fit the way your business operates from design through to post-production. We can help. A proven process Our engagement model gives you support at every stage of your M2M solution, from building your initial business case to ongoing service. We can help you with training so you get the most out of M2M technology where it s used at each stage of your products lifecycle. As a result, you ll be benefitting from an M2M solution that s perfectly tailored to your business and your objectives. A complete solution M2M deployments can be extremely complex, involving a mix of devices, networks and applications, which in many cases have to come from multiple suppliers. We deliver an end-to-end solution that includes: M2M terminals and devices, including tracking devices, monitoring devices and energy meters from leading hardware manufacturers. Fully managed connectivity, on the world s farthest-reaching wireless networks, with a range of wired connectivity too. Seamless connectivity for smart devices, using our Simple Out-of-Box Experience (SOBE) technology to make M2M connectivity easy for your customers to configure. Consultancy Solution design and development Implementation Operational services Global SIMs and tariffs, simplifying worldwide deployments. We can manage activation and reporting for you, on any scale, including roaming. Requirements analysis Strategy and business case development Workshops Project management Piloting Technical on-boarding Rollout support Service desk Training Support Service management Our Global M2M Platform, which gives you a single webbased tool and API-based automated interface for monitoring and managing all your M2M services, requesting support, and connecting back-end applications. Project and programme management Meeting cost, time, quality and client satisfaction objectives Logistics, including help with forecasting, setting up tariffs and billing, and working with third parties. Comprehensive support, including a dedicated service management team and a global, 24/7 service desk for ordering, fault reporting and operational issues. World-leading SLAs, tailored to your business objectives at a local or global level.

7 7 Why Vodafone? M2M has the potential to become a core part of the way you run your business. So your choice of M2M provider is very important. Here are three good reasons why you should choose Vodafone. 1. Deep experience transforming businesses with M2M M2M technology is gaining momentum in the manufacturing industry now, but it s not new. We ve got more than 20 years of experience in M2M and have delivered some of the world s most prestigious M2M projects in manufacturing such as with helping Atlas Copco, the international maker of industrial productivity solutions, improve its compressed air products. Today we have over 400 dedicated M2M experts ready to put this experience to work for you: at a global level in planning international deployments, and at a local level to provide insights into connectivity options. No other operator can match our level of M2M expert support. 2. Global networks you can rely on Vodafone has mobile operations in 27 countries, partners with mobile networks in 48 more, and fixed broadband operations in 17 markets. As of 31 March 2014, Vodafone had 434 million mobile customers and 9 million broadband customers. Our scale doesn t just give you the confidence that we operate wherever you do business; it also means that we can provide extremely competitive pricing and simplify your service management. Our global SIM and global SLAs ensure that you receive a consistent experience, whether that s monitoring machinery and products, or tracking your assets in transit. Want proof of our experience? Don t just take our word for it. We ve been ranked as the world s leading global communications provider for three years running M2M by Machina Research. Visit m2m.vodafone.com/ why_vodafone/ to find out more. 3. The support you need to make M2M simple We know that building an M2M solution can be complex. We focus on making it simple. We give you a single point of contact, bringing together the right hardware, application and service providers, and ensuring they work together seamlessly with your products and equipment, and our global network. Our dedicated Innovation Park team in Dusseldorf is at your disposal throughout your project to ensure that hardware and complete solutions work perfectly. And once we ve deployed the solution, our Global M2M Platform gives you both a single web-based and API-based automated interface for tracking the status of all your M2M devices in real time and for raising support issues and provisioning requests. Start your journey Vodafone Global M2M is uniquely positioned to help you take advantage of this innovative technology in order to drive down costs, improve your customer experience, create revenue by generating new business opportunities and fulfil your servitisation plans. To find out more about Vodafone s M2M solutions for manufacturing, please contact your Vodafone account manager, or visit m2m.vodafone.com.

8 m2m.vodafone.com Vodafone Group This document is issued by Vodafone in confidence and is not to be reproduced in whole or in part without the prior written permission of Vodafone. Vodafone and the Vodafone logos are trademarks of the Vodafone Group. Other product and company names mentioned herein may be the trademarks of their respective owners. The information contained in this publication is correct at time of going to print. Such information may be subject to change, and services may be modified supplemented or withdrawn by Vodafone without prior notice. All services are subject to terms and conditions, copies of which may be obtained on request.

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