axeda integration

Axeda Connexion

2012 Survey Results and ReportMachine-to-Machine Integration with Enterprise Business Systems

2012 Survey Results and Report on M2M Data Integration with Enterprise Business Systems www.axeda.com

CONNEXIONLANDSCAPE RESPONDENTS TOP PRIORITIES

INNOVATIONTHRU

INTEGRATIONNO SILOS LEADERS DELIGHTCUSTOMERS PARTNERSHIPS

CELLULARADOPTION SUMMARYINTRODUCTION RESOURCESINTRODUCTION

Introduction: Towards M2M Enterprise Integration

Since the early years of the Machine-to-Machine (M2M) market, solutions have been focused to a large degree on the service activities of a business. A principal reason for connecting remote assets and devices using those solutions has typically been to improve its operational efficiency. The expenditure is then justified by the promise of reduced equipment downtime, using remote monitoring for identifying equipment failure or predicted failure which is then implemented through more accurate and rapid field support. This type of solution is in the realm of service and support functions and most often these solutions have been managed exclusively by the service department.

How times have changed. M2M is now increasingly being embraced by enterprises as a means for differentiating themselves in their own markets. Product manufacturers in particular are seeing the strategic opportunities presented by M2M and we have seen increasing evidence of this shift in thinking in our studies at Beecham Research over the last few years. As such, the need to share the data from remote assets and devices with other parts of the organization has dramatically shot up the priority list.

This survey conducted by Axeda shines new light on this area. Respondents to the survey were delegates to Axedas recent Connexion conference in Cambridge, MA, in June. We would categorize these as being at the leading edge among adopters of M2M technology, primarily in the Medical, Industrial and related High Tech areas. The remote assets and devices they connect in their M2M solutions tend to be large and static, are typically in constant use and any downtime is expensive in particular the loss of critical services such as in Industrial processes or in the Medical sector.

What the survey shows is that the majority of these adopters are now actively planning to integrate their M2M data with their enterprise IT systems, so it can be shared with other departments. While a small percentage (11%) have already integrated M2M data into their enterprise systems, a much larger 67% are interested, planning or scheduling to do so.

It is evident from this and in our recent studies that M2M is now on the radar of CIOs. Integration with ERP and CRM is very much on their agendas, with increasing interest in how such data can strengthen the competitive edge of their companies in their own markets. As part of that, there is also growing interest in data analytics to store and mine the data from remote devices in order to gain new intelligence about customer needs and new market trends.

Another finding in the survey, of particular interest to mobile operators, is the growing interest in using cellular connections. It is likely that many users in the survey have physically large assets connected that are not going to be moving anywhere soon. That being the case, why the high interest in using cellular in the future? In the survey, over 75% are either already using cellular or are planning to do so. The answer lies in the rapidly reducing cost of cellular versus other alternatives and the opportunity to bypass fixed line networks with their increasingly sophisticated security arrangements. Whereas fixed lines often need new labor-intensive installation activity and the requirement to navigate data through on-site networks, cellular connections side-step all of these issues and provide a separate tunnel straight to the data center.

The findings in Axedas survey reflect some of the key trends we are also finding in the M2M market as it matures over the next few years. It makes for very interesting reading and we congratulate Axeda for conducting the survey among a uniquely M2M-savvy set of respondents.

Robin Duke-WoolleyCEOBeecham Research

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CELLULARADOPTION SUMMARYINTRODUCTION RESOURCES

This report focuses on the Machine to Machine (M2M) data integration and use case findings from the customer survey conducted at Axeda Connexion 2012 the leading M2M conference and exposition held June 4-7, in Cambridge Massachusetts. Axeda polled more than 75 M2M industry leaders across life sciences, healthcare, high tech, and manufacturing to understand their connected product integration plans with enterprise business and CRM systems. Survey respondents also offered insight on the prioritization of workflow initiatives such as asset tracking, configuration management, and usage-based billing. The complete survey findings are outlined below.

Landscape

Barrier and costs across the M2M ecosystem the connectivity services, hardware, wireless communication methods, and cloud-based platform that form the ecosystem of todays M2M networks have fallen to such a degree that connected product technology is now available to a wide audience. Consider the speed at which M2M is being adopted by consumers and businesses alike. M2M is on track to have 3.5 billion connections by 2014 1 , 15 billion by 2015 2 , and 50 billion by 2020 3.

1 IDC Research

2 IDC Research

3 Ericsson

M2M Integration & Enterprise Use Case HighlightsAxeda believes that the real gold in M2M is taking the connected product data and integrating it with enterprise systems such as CRM, ERP, or data warehouses optimizing critical business processes and essentially M2Mizing their organizations.

Connexion attendees agree.

67% are actively integrating M2M data with ERP & CRM systems.

Upon integration, 69% plan to optimize field service capabilities 50% plan to enhance customer service 45% plan to automate asset management and configuration management with M2M data

Innovating using M2M data requires cross-functional collaboration and socialization:

Upon integration, 74% will share data with R&D 59% will share with operations 49% with product marketing

M2M professionals gathered

from around the world to learn

and collaborate at Connexion

2012 and discuss integrating

connected products into the

enterprise.

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Survey Respondents

Axeda took advantage of the unprecedented attendance at Connexion 2012 where industry leaders featured both visionary themes and real-world examples of the impact that M2M is having on companies around the world. With this backdrop, Axeda surveyed customers in attendance:

46% from life science and medical product manufacturers

24% from industrial manufacturing

20% from high tech

7% from financial services

3% from other industries

Industry Participation

medical mfg.

industrial mfg.

high tech

financial

other

46%

24%

20%

7%

3%

RESPONDENTS

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Integration is a Top Priority

Integrating M2M data with ERP and CRM systems is a top priority for M2M customers, according to survey results. Only a small percentage of the respondents (11%) have integrated M2M data into enterprise business systems, and of those who are not integrated, 67% are interested, planning, or scheduled to do so. By connecting real-time M2M data from the Axeda Platform into ERP and CRM, information such as asset owner, location, product configuration, health status, usage, inventory levels, and alerts can automatically be populated. This data can automatically trigger business process workflows such as:

Automated service ticket/case creation Compliance management

Pay-per-use billing Product recall management

Warranty management Planned maintenance

Consumable resupply

What is your organizations ERP/CRM system integration status with Axeda?

interested & planning integration

no plans

integrated

TOP PRIORITIES

11%

27%

67%

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Achieve Business Innovation by Integrating M2M Data More Widely

Field and customer service, asset management, and configuration management ranked highest among survey participants on new business processes enhanced by integration. The introduction of M2M data into business systems enhances current processes with more accurate and real-time data and also creates an array of new touch points for the organization, enabling customers to:

Track, monitor, and manage assets

Reduce service and support costs

Streamline management processes

Mitigate the risk of software defects

Increase service revenue

Based on your integration, which business processes are you planning to automate or enhance?

field service

customer service

configuration mgt.

asset mgt.

warranty mgt.engineering

other

usage based billing

sales

consumable mgt.

marketing

recall mgt.

security & compliance

69.1%

50%

45.6%

45.6%

19.1%

19.1%

16.2%

13.2%

11.8%

11.8%

11.8%

8.8%

26.5%

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INTEGRATION

The introduction of M2M data

into business systems enhances

current processes with more

accurate and real-time data.

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It Wont Happen in a Silo

As a corresponding point to integrated use cases, survey respondents understand the need to share M2M data with all organizations in a company to gain the competitive advantage that comes with interconnectedness. Top of the list socializing machine data with peers in R&D (74%), operations (59%), product marketing (43%), and sales (35%).

What business function would you be most likely to share your connected product information with?

dev./engineering

operations

product marketing

marketing

sales

other

compliance & security

finance

73.8%

59%

42.6%

39.3%

34.4%

18%

16.4%

13%

NO SILOS

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The Recognized ERP Leaders

Virtually every company uses an enterprise resource planning (ERP) system, and the survey findings reflect well-documented market share leaders. M2M data from connected products, in collaboration with ERP systems, can provide visibility and automation across the organization in helping to eliminate error-prone manual steps and providing new opportunities for business processes. The following ERP modules can be enhanced with real-time M2M data from connected products:

Service management

Configuration management

Product lifecycle management

Warranties

Recalls

Ordering

Billing

Which Enterprise Resource Planning (ERP) system does your organization use?

SAP

other*

Oracle

54.7%

34.7%

22.7%

*(other Microsoft, Baan IV, JD Edwards, Peoplesoft..)

LEADERS

The opportunity to embed

insights sourced directly from

equipment in the field with core

enterprise data in CRM and ERP

systems allows our customers

to transform critical business

operations for a competitive

advantage. The definition of

a customer 360 degree view

continues to expand.

Jim Goldfinger

Senior Director,

Customer Value Network,

SAP Americas

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Delight Your Customers

CRM systems can be enhanced with M2M data to improve customer service, account management, sales, and marketing. The market share of CRM giants Salesforce.com and SAP are reflected below. Integrating M2M data into CRM systems allows an organization to gain powerful insight into product usage, customer needs, and behaviors. This insight enables management to adjust design, production, sales, and service behaviors to compete more effectively and improve an organizations performance.

Which Customer Relationship Management (CRM) system does your organization use?

Salesforce.com

SAP CRM

other *

Oracle Siebel

none

Oracle EBS

Oracle JDE

41.9%

36.5%

18.9%

13.5%

5.4%

4.1%

1.4%

*(other Microsoft, Sugar, Proprietary, Peoplesoft)

DELIGHTCUSTOMERS

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M2M Partnerships Crucial to Success

Some of the basic M2M challenges have been developing the subject-matter expertise across the technology ecosystem from the connectivity, systems, applications, wireless connectivity, and cloud-based platform. System integrators are integral as they eliminate complexity, manage various technologies, including specific expertise in the customers own industry. The biggest gap that Axeda found in customer integration plans was that almost 50% of respondents had not identified a system Integrator.

What System Integrator does your organization use?

none

Tier 1

Tier 2 - Boutique

49.2%

36.5%

14.2%

Tier 1: Accenture, CSC, Deloitte, IBM

Tier 2 - Boutique: Wipro, TATA, HCL, Etherios, GlobalSoft

PARTNERSHIPS

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Does Cellular Adoption Drive Integration?

Eighty six percent of survey respondents plan or have cellular connectivity. The ubiquitous coverage and low cost of cellular is one of the primary drivers of M2M growth, and its rapid expansion provides an opportunity for new products and vertical markets to benefit from this connectivity.

Do you have or are you planning to add wireless/cellular connectivity to any of your connected products?

no cellular today

but plan to add it

no cellular today

currently support

cellular connectivity

61%

31%

24.6%

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Summary

As more organizations get connected, the conversation has moved from how do we get connected? into what can we do to get more value out of our connected products? Integration with enterprise systems is a game-changer for M2M initiatives.

Forward-thinking M2M innovators are leveraging machine data in fascinating ways bridging functional silos and instilling pervasive and real-time data through their organizations, creating new and differentiated features, increasing automation, and creating a deep understanding of how customers are interacting with their products.

As the connected asset ecosystem evolves and continues to grow increasingly complex, developing a vision for your own connected enterprise isnt always easy. Axedas Innovation Workshops bring M2M experts to you, to collaborate with your organization to help define and refine your M2M-enabled business strategy.

Schedule an Innovation Workshop Today!

Fast-track Axeda connected product data and CRM / ERP integration! To ensure that your connected products are given priority and focus within your organization, schedule an Innovation Workshop to:

Engage and build an interdisciplinary team of constituents who understand the project and share the vision.

Leverage Axeda to help you develop a vision, strategy and action plan for implementing and succeeding with your connected product initiative.

Schedule an Innovation Workshop today at www.axeda.com/innovation

SUMMARY

Learn more atwww.axeda.com/innovation

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Resources

About Axeda

Axeda provides the leading cloud-based service and software for managing connected products and implementing innovative M2M applications significantly reducing the cost and complexity of connecting and remotely servicing the products of the worlds leading companies. Axeda customers use its M2M application enablement platform to deliver innovative M2M solutions and optimize their business processes with data from their connected products.

By relying on the Axeda Platform to power their connected products, companies are transforming their business by improving customer satisfaction, reducing costs, and generating new sources of revenue. The M2M solutions behind these connected products range from remote service, fleet management, usage-based insurance, asset tracking, mHealth, and more. Join our developer community at: http://developer.axeda.com and learn more at www.axeda.com.

Additional Resources

Axeda Connexion Webinars Videos White Papers Data Sheets Case Studies

RESOURCES

For more information visit our website

www.axeda.com

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