The Internet of Things. Alternative business models and best practices.

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1 The Internet of Things. Alternative business models and best practices. Jürgen Hase,Vice President M2M Competence Center, Deutsche Telekom AG IoT Week IoT Economics Workshop, Venice, 21 Mai 2012

2 Practical experience with IoT companies. 2

3 M2M market view. Deutsche Telekom serves a broad variety of market segments, which provide horizontal as well as vertical business opportunities. M2M Ecosystem Horizontal business opportunities Vertical business opportunities 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 3

4 M2M solutions Security. Fire alarm systems and solutions for housing and domestic construction industry. T-Mobile SIM SIM chip chip in in all all Pyrexx Pyrexx fire fire alarm alarm systems systems Solution Pyrexx Fire Alarm Systems Fully integrated GPRS fire alarm systems Multinational services/call-centers Highest security standards (DIN EN ) Full service (installation, operation and servicing) International emergency call Source: 4

5 M2M solutions Smart Metering/Smart Grid. Intelligent photovoltaic system management. Solution IPM System PV System Management Connected photovoltaic system management improving efficiency, transparency, flexibility and safety in PV system operations Average efficiency gains of 15 percent M2M solution enabling remote monitoring and control of the system 5

6 M2M solutions Consumer electronics. Remote Power Plug. T-Mobile SIM SIM chip chip in in all all Q-Gate Q-Gate power power plug plug Solution QGate Remote Power Plug Fully integrated GPRS power plug Enables remote power switching of devices connected to the QGate Energy monitoring and switching of any household device Monitoring of live and historical data Source: 6

7 M2M solutions Retail & Commerce. Easy-to-install order handling system for food delivery service. Solution Lieferheld Express Box Remote ordering system Out-of-the-box hardware solution for Lieferheld partner restaurants Simple connection setup to order system and processes through fully integrated GPRS and WiFi connection communication solution International rollout support by Telekom Deutschland 7

8 M2M solutions Public sector and infrastructure. Urban bike rental services. T-Mobile SIM SIM chip chip in in DB DB Call-a-Bikes Call-a-Bikes Solution Deutsche Bahn Call-a-Bike Fully integrated GPRS solution for city bikes Terminal for tracking and monitoring Location-based services via Smartphone App Remote lock provided by our Deutsch Telekom M2M partner Keymile Source: 8

9 Specifics of IoT business models. 9

10 The M2M industry value chain. Highly complex value chain to be integrated into existing vertical value chains. Traditional Industry Value Chain Pre-Products Machine Supplier Manufacturer End Customer M2M specific Value Chain Module/box supplier Connectivity Enabler/ Aggregator Application Provider System Integrator E2E Solution Provider Vertical specific Players Vertical specific Players Implementing an M2M solution needs integration of the M2M specific Value Chain into the traditional Value Chain of the respective industry huge barrier of entry; dedicated industry knowledge needed Highly complex M2M Value Chain calls for thorough business model considerations to make the business profitable for each party involved 10

11 Partnering in M2M business. DT to build up worldwide M2M partner network with focus on segment specialists and horizontal partners. Potential segment partners small & diversified Partner network enables global approach DT There are millions of small and midsize enterprises on global M2M market with enormous business potential for DT. To provide complete M2M solution to customer at first hand and to drive international M2M business, DT builds up a strong partner network on global level. 11

12 M2M Partner Network. Horizontal and vertical partnerships to support various M2M services and solutions. Customer Retention E2E System Integration M2M Software Development M2M Equipment Development *exemplary illustration 12

13 Best practices for running IoT companies. 13

14 Deutsche Telekom M2M strategy deep dive. M2M from connecting everybody to connecting everything global SIM, open and scalable platform, global service alliance, global partner and developer network. Call-a-Bike Remote Socket M2M Partner Portal M2M Marketplace Innovations with ideabird Connected Fire Detector Remote machines management Global services M2M M2M Solutions M2M Services M2M Developer Platform M2M Access & Enabler Platform Global developer network Open and scalable platform, global SIM International Marketing Online Marketing Direct Marketing & Events Analysts Relations 14

15 Telekom s partner management solution. M2MCC Partner Portal as central point of contact at DTAG for international M2M companies. https://partner.m2m.telekom.com Partner Portal is a communication, information and management platform for registered members only on global level 24/7/365 Partner Portal is an efficient Tool for Partner Pre- Qualification & central Partner Data Management with access for all NatCos Benefits for Partner: Efficient point of contact, access to exclusive information, usage of special features like Solution Finder, Project Tool, Forum Goal: Enable M2M business networking across countries and among all segments 15

16 M2M marketplace. 1 st international M2M ecommerce portal. https://marketplace.m2m.telekom.com The M2M Marketplace is an international e- commerce portal, which will: provide opportunities to all M2M players in the value chain to sell goods no matter if they are direct sellers, dealers, producers or other merchants. enable companies, as well as business customers to search and compare the prices of all M2M goods offered though search filters, and to subsequently order the products in a clear and simple manner. 16

17 M2M Developer Platform. Example: M2M Innovation contest ideabird.com ideabird.com Identification and development of innovative M2M products. First focus on ideas, relating the recovery of persons, animals or property. Identification of the product ideas is carried out through an innovative crowd-sourcing approach. Realization with independent global ideation platform Selection of winner product ideas in April Target: Develop and sell 1 million additional M2M devices. 17

18 Global M2M Association (GMA). Implementing an excellent global M2M service experience. Global M2M Association Main focus: Realizing potential synergies, implementing joint services and driving innovation. Global M2M Association GMA will enable enhanced value propositions around M2M smart connectivity through: seamless connectivity across its footprint, interoperability between different networks and API harmonization, an international Partner Program gathering key players from the M2M ecosystem. 18

19 Guidelines for new IoT companies. 19

20 How to seize the opportunity: M2M success factors. Technology Deliver best-in-class solutions: State-of-the art and cost effective M2M products. Partnering Approach the market together: Excellent relations to business partners and developers. Go2Market Think global, act local: Flexible business models to meet customer needs effectively. Market communication Establish a strong global M2M brand: Educating and exploring new markets worldwide. Ambitious common targets Be innovative Act with your business partners along the entire value chain for joint successes. Ask the market: DT M2M innovation contest Ideabird. 20

21 Thank you for your attention. Contact us. Deutsche Telekom AG M2M Competence Center

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