M2M solutions for industrial companies

M2M in industrial sectors_

M2M10.2015

2

1. How M2M is benefiting companies

3DISCOVER, DISRUPT, DELIVER

M2M Adoption by industry and purpose Energy and utilities

Automotive

Retail

Consumer Electronics

eHealth

Transport

Manufacturing

New devices

More connected

Data Analytics

New channelsNew revenue streamsCustomer contact

Geo-expansion

Test-bedding

37%

32%

32%

29%

28%

19%

17%

55%

53%

48%

45%

44%

42%

41%

37%

“The energy sector is very active in the adoption of M2M services to enhance the control over their infrastructures”


Main benefits from adopting M2M solutions

Process optimisation

Improve customer opps

Expedite decision-making

Cost Reduction

Competitive advantage

Innovation

Automating processes

Gathering extra data

Enabling new productsProcess transformationEnabling business modelSafetyMeasuring Quality

52%

47%

46%

44%

43%

42%

72%

66%

59%

52%

50%

40%

27%

By…

“Companies are not only reducing cost but improving the quality delivered and enabling new services”


Areas involved in M2M projectsCI

O

63%

“Since benefits from M2M solutions are wide, areas involved in the developments are wide as well”

CEO

41%

Stra

tegy

Dire

ctor

36%

COO

35%

CFO

32%

R&D

24%CM

O21%

Prod

uct D

.

20%

Prod

uct.

M

17%

Tran

sf.

15%

B.De

v

15%

Companies with multiple leaders involved in M2M developments

P.Dev

12%

63%


Funding in M2M projects

“IT Budget is leading but business and end customers also involved in funding M2M projects”

IT Budget

46% 42% 30% 29% 28%

Beneficiary department

Cost of Sales End Customer Risk SharingCompany-supplier

Multiple options allowed


What companies need from M2M?

High speed

Two-way communications

Reliable connections

Big volume of data

Low cost

Low power

59%

52%

50%

40%

27%

“Low costs are not any more the main buying driver as more companies are relying on M2M for new businesses”

CoverageCompanies using m2m to enable new business

50%

66%

72%


Areas improved with M2M applicationsPr

oduc

tivity

52%

“From productivity to performance more than 8 out of 10 companies have seen their operations improved with m2m solutions”

Cust

omer

serv

ice

47%

Busin

ess s

teer

ing

46%

Cost

s

44%

Com

petit

iven

ess

43%

Inno

vatio

n

42%Se

rvice

s de

liver

y39%

Sust

aina

bilit

y

38%

Cost

pre

dict

ion

37%

Reve

nue

optim

.

37%

Perfo

rman

ce

37%

Companies which found improvements after embracing m2m solutions


Barriers observed when adopting M2M in businesses

Secu

rity

33%

“Telefonica has strive to deal with these barriers creating specialized teams and building dedicated infrastructure”

Confi

dent

ialit

y br

each

es

31%

Disa

ppoi

ntin

g RO

I

29%

Lack

of e

xper

tise

26%

Unpr

oven

re

liabi

lity

25%

No st

anda

rds

24%Gl

obal

eco

nom

y21%

impl

emen

tatio

n

20%

Cost

pre

dict

ion

20%

Regu

latio

n

20%

M. R

eact

ivity

20%

10

2. Trends and services in the M2M world

11

Vertical integrationExpand your business

reach by performing additional tasks in the

value chain

New Sales ChannelsDevelop additional ways to do business with your customers, to sell existing products or new ones

New Business ModelDiscover a new way to do

business or a new industry

Creating New

Revenue Streams

Environment & RegulationModify and optimize your

processes in order to decrease resources

consumption and minimize environmental impact

Security & SurveillanceImplement new ways of

keeping your assets security or improving

current methodologiesOperation &

LogisticsAchieve more visibility of your logistic process in order to adjust them and improve

efficiency

Optimizing Costs Product

EnhancementProvide your products or services with additional functionalities which increase their value

Optimizing

Revenues

Customer IntelligenceKnow more about your clients, their behaviours and their needs to enhance engagement

Fraud PreventionControl financial or stock flows in order to manage fraud and assure revenues

Long story short: where M2M can improve industrial companies’ businesses

DISCOVER, DISRUPT, DELIVER

APPLICATION

INTEGRATION

CONNECTIVITY

DEVICE

M2M ecosystem

IoT Platfroms Fleet M. Machinery M. Tank Telemtry Asset T. Energy Efficiency

Global SIM

Business Servers Integration

System integratos ERP Integration

Network of Partners

Managed Connectivity

LPWA

Billing

Device Management

DevicesModules


Advanced ControlAdvanced Monitoring

Integration and AutomationGlobal

Scale

• Real time visibility:• Subscription status• Subscription consumptions• Issue detection

• Reports generation

• Lifecycle control• SIMs blocking• Service activation /

deactivation• User profiles

definition

• Notifications and alarms definition• Consumptions• Fraud prevention

• API integration• Batch support

• Global integrated communications operator

• Own network in 18 countries• Global SIM with service in

footprint + +650 international networks

Telefónica’s state of the art m2m solution can improve our customers’ business operations

DISCOVER, DISRUPT, DELIVER14

Telefonica is #1 or #2 in almost every country in Latam

Telefonica is #1 in 3 of the 5 largest markets in EU

Own mobile network in 15 countriesCarefully crafted assembly of industry allies

One global solution for world wide connectivity


IoT in the mining industry

Comprehensive inventory

Device setup

Monitoring

Alarms

DiagnosisTools

RemoteTroubble-shooting

FirmwareUpdates

FraudPrevention

AdvanceMonitoring

ConnectivityControl

Business Rules&

API integration

GlobalCoverage

AdvanceKPI Dashboard

HistoricalData

Real-timeInformation

Statistics Reports



Optimize logistics processes by integrating the remote telemetry information with the corporate ERP

Improve the customer experience and service quality by avoiding stock outs

Reduce the operating and maintenance costs by optimizing the refuelling routes, tank maintenance, TCO, etc.

Potentially invoice customers based on consumption creating a new business model (converting your product into a service)

Tank Telemetry: optimize logistics with real-time info on distributed assets


Upstream TransformationRaw

materials transport

StockageCustomer processesIndustrial

Logistics

Connected Factory Fleet Management

Refilling process

optimisation

KPIs Telemetry (temperture, pressure, geo-location

Fraud Prevention

Demand forecast

Route Optimisation

Let’s think about the logistic chain…


Description

How it works

sms

Data Center

Interface

Alarms

m2mConectivity

Telemetry platform

APP

Business info

MConn

m2m

API

HWTanks

Tank Telemetry solution overview

Telefonica’s tank telemtry solutions involves telemtry hardware, managed connectivity and a vertical application which provides remote monitoring with advanced dashboards with all the needed information.

The information retrieved from the tanks can be customized.


Product levelsTank geo-location Hitory of dataBusiness rules Hardware status

Comprehensive customized dashboards

Real-time alarms

Vertical solutions focused on materializing ROI

Tank Telemetry solution benefits


Optimize logistics processes by saving fuel in deliveries

Improve the customer experience and service quality by knowing the precise time when the good arrives

Reduce the operating and maintenance costs by optimizing routes

Potentially reduce risk by improving the driving the behaviour of your drivers

Fleet management: Enhance your supply chain and reduce costs

DISCOVER, DISRUPT, DELIVER* EM função da mercadoria transportada

Good needsETA prediction

Fuel control

Route optimisation

Vehicle identification

Driving behaviour

Load protection

Vechicle tracking

Detour alert

Preventive maintenance

Milage control

Planning

Let’s think about the challenges of managing a large fleet

Description

Como funciona?

A solução de Gestão de Frotas é baseada em um dispositivo instalado nos seus veículos e que permite conhecer, entre outros:• Localização da frota em tempo real• Detecção de estilos de condução• Hodômetro

Aproveitando esta informação convenientemente se pode gerenciar e mitigar muitos dos problemas anteriores para otimizar o seu negócioDispositivo

Módulo Rastreador

Conectividade

Conectividade Celular m2m

Plataforma

AcessoWeb/ API

Gestoresde Frotas

Seu negócio

Fleet management solution overview

AlamrsPoI ReportsGPS Positioning Driving behaviour

Easy to use and full of features

Vertical solutions focused on materializing ROI

Milage Remote engine lock

Fleet management solution benefits


Industrial machinery management: control its usage and location

Locate the asset with at-a-glance geographic information

Trigger alarms in case of unexpected movements or boundary breach

Manage customer expectations with predictable ETA

Control door openings and potentially monitor the temperature of the asset


The Track and Trace Manager with integrated Business Intelligence ToolWeb based system interface for optimal Fleet Management overview and reportingDriver identificationIndividual design, specific reports according toactual needsReport historic/current data for top-management decisions

Industrial machinery management solution overview


Locate the asset with at-a-glance geographic information

Trigger alarms in case of unexpected movements or boundary breach

Manage customer expectations with predictable ETA

Control door openings and potentially monitor the temperature of the asset

Asset tracking: Track assets around the world and react in real time to any unexpected behaviour


Complete: real time and remote, control and management system, in a global solution (devices + connectivity + platform)

Simple: Telefónica will do a energy survey and install all the needed devices and actuators

Management: the customer then connects to the web application and manages its office buildings energy efficiently

Cost-efficient: provides efficiency financial model aligned with agricultural industry

Energy Efficiency: reduce your energy bill and go greener

29

3. How Telefonica can enhance Vale value chain


Mining

• Real-time data transmission from exploration spots

• Expedite results with cloud processing

• Heavy machinery telemetry and use control

• Proactive maintenance of drilling and excavator remote devise

• Personnel security with hazardous areas beaconing

• Fleet management for mining trucks

• Sensorize processing facilities to co wireless in production areas


Logistics

• Truck telemetry and fleet management in mining spot

• Asset tracking for costly mining machinery

• Track load along the railroad

• Control and real-time interaction with signalling devices along the railroad

• Train engine telemetry

• Control load and unload operations

• Telemeter load machinery

• ePoD for port taskforce

• Intermodal container tracking to improve ETA estimation

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4. Success stories

33

Rafael Cabrera RodríguezGlobal M2M Business Development ManagerTelefónica Sales Specialist

[email protected]@yahoo.com

@rafacabrerarodes.linkedin.com/in/rafaelcabrerarodriguez

Let’s keep in touch

mailto:[email protected]

Technology

M2M solutions for industrial companies