IoT Strategy for CSPs Seeking Greater IoT Monetization
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1 IoT Strategy for CSPs Seeking Greater IoT Monetization Joern Kropfgans Partner Communications Sector, IBM Services Raj Cherchattil CTO, Telecom, Media & Entertainment, IBM 2018 TM Forum 1
2 Beyond connectivity gains - The promise, the reality and a way forward IoT business for CSP s THE PROMISE - IoT will be one of the main new revenue drivers for CSP s - Businesses and Consumers look to Telco s to be their trusted solution advisor and integrator Forward OPERATE AND INNOVATE THE REALITY - CSP s are struggling with finding the right business model to really monetize and structure offerings - Customers are struggling with clear visions on IoT enablement PARTICIPATE AND MONETIZE 2018 TM Forum 2
3 Many companies are very early in their IoT strategic planning and a number of challenges exist to monetize the IoT 75% are in early stages 69% have high expectations 65% are uncertain about ROI *Source: IBM Institute for Business Value (2015) The Business of Things 2018 TM Forum 3
4 The new business model beyond connectivity What do CSP s need to do? 1.Become Digital Service Enablers - Be an integrator and full solution provider - Define the IoT Journey for Customers 2. Invest, build and maintain the analytics backbone and IoT platform 3. Expand by leading Customers to Intelligent IOT Changes to the customer relationship The Intelligent IoT journey requires clarity of vision The and Intelligent good execution IoT journey requires clarity of vision and good execution Orchestration Envision Creation Foundation An elite group Experience of Reinventors New Business Market are furthest Actionable along Responsive Models Activation Insights Operations in the journey toward Intelligent IoT An elite group of Reinventors are the furthest along in the journey to Intelligent IoT Process automation AI and machine learning Orchestrated Ecosystems CORE SLIDE Adaptive Talent Intelligent IoT Vision of IoT with AI having significant future benefit and value Little to no current IoT implementation Extensive IoT sensoring Collaborative frameworks Predictive analytics 29% of Reinventors are leaping ahead TRUST INNOVATION REPEATABILITY Aspirationals Tacticians Reinventors *Source: IBM Institute for Business Value (2018) Intelligent Operations 2018 TM Forum 4
5 Key solution ingredients for success INDUSTRY SOLUTIONS - Platform of Platforms - Risk Management & Security APPLICATIONS - Cyber Threat - IAM - Information Management - Analytics - Connectivity P R O D U CT E N G I N E E R I N G OPEN API IoT A P P LICA T I O N S PLATFORM FOR BUSINESS COMMERCE B LOCK CHAIN - Edge Devices ANALYTICS RISK M ANAGEM ENT - Device Management INFO MANAGEMENT CONNECT - OSS/BSS - Partner Solutions - OpenAPI Model with a robust data model E D G E D E V I CES OSS/ B SS CORE NETWORK D E V I CE M A N A G E M E N T P A R T N E R S O LUTIONS 2018 TM Forum 5
6 IoT Architecture Model for CSPs END-USER NETWORK CLOUD NETWORK Platform of Platform CSP NETWORK PARTNERS USER DIRECTORY ACTIONABLE INSIGHT/ANALYTICS SECURITY VERTICAL APPLICATION CLOUD ADMIN APPLICATION CLOUD USER BILLING APPLICATION SERVERS EDGE SERVICES API MANAGEMENT DEVICE/SIM ACTIVATION APPLICATION SERVERS EDGE SERVICES DEVICE MANAGEMENT PHYSICAL ENTITY CACHE FILE REPOSITORY USER DIRECTORY IOT GATEWAY TRANSFORMATION & CONNECTIVITY 2018 TM Forum 6
7 Reinvent to Monetize 1. Move from discrete, fixed engineering to continuous engineering 2. Embrace and experiment with new ecosystems of relationships 3. Solve for security not just at the device level, but all the way up the stack 4. Use of standardized APIs such as OpenAPIs 5. Prepare your organization to be an IoT Enabler that owns the end to end stack IBM Corporation
8 Seeking Greater IOT Monetization IoT Business Models for CSP s Joern Raj 2018 TM Forum 8
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