convergent strategy for m2m networks and opportunities · 2011. 10. 27. · innovation management...

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This document is the intellectual property of PT and is prohibited the use or spread without express written permission. Bruno Conde Tomás Innovation Management [email protected] Convergent Strategy for M2M Networks and Opportunities ETSI M2M Workshop 26 - 27 October 2011, Sophia Antipolis, France

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Page 1: Convergent Strategy for M2M Networks and Opportunities · 2011. 10. 27. · Innovation Management bruno-a-tomas@telecom.pt Convergent Strategy for M2M Networks and Opportunities ETSI

This document is the intellectual property of PT and is prohibited

the use or spread without express written permission.

Bruno Conde Tomás

Innovation Management

[email protected]

Convergent Strategy for M2M

Networks and Opportunities

ETSI M2M Workshop

26 - 27 October 2011, Sophia Antipolis, France

Page 2: Convergent Strategy for M2M Networks and Opportunities · 2011. 10. 27. · Innovation Management bruno-a-tomas@telecom.pt Convergent Strategy for M2M Networks and Opportunities ETSI

2

Description

Machine-to-Machine opportunity has been evolving accordingly to

different market stages …

Ex

pec

tati

on

Timing

2011

Exploratory Phase Industrialization

Phase

Consolidation Phase

Phase of high initial

expectations, with

proof of concept,

several prototypes

and input pioneers

More realistic

phase, with

consolidation and

affirmation of the

ecosystem of

early entrants

Phase of sustained

expansion with the

major players

expectations

accomplishment

Page 3: Convergent Strategy for M2M Networks and Opportunities · 2011. 10. 27. · Innovation Management bruno-a-tomas@telecom.pt Convergent Strategy for M2M Networks and Opportunities ETSI

3

… raising a new series of challenges

Will New Network Technologies and Internet of Things

concept lead to M2M massive deployments?

What strategy and prioritization method for M2M

potential applications in virtually limitless number of

industries?

How to choose the

technical framework in

order to efficiently

deliver leading edge

and future proof

solutions

With the advance of M2M

framework definition, the value

chain actors still uncertain

whether recent developments in

new generation networks and

“The Internet of Things” concept

are an important step towards

M2M massive deployments or

not

How the prioritization

of the different

possible M2M

applications will impact

the main strategy to

follow is still uncertain

for many

How the actual and new

network technologies

and a diversity of new

application areas, such

as Vending and Smart

Metering, will depict the

future frameworks for

service delivery

Main Challenges

Wrap-up

Internet of

Things

Infinite

Application

Areas

Future Proof

SolutionsTelco

Strategy

1

2

Page 4: Convergent Strategy for M2M Networks and Opportunities · 2011. 10. 27. · Innovation Management bruno-a-tomas@telecom.pt Convergent Strategy for M2M Networks and Opportunities ETSI

4

New network technologies are evolving

80

+558%

Theoretical Downlink (Kbps)

GPRS (2,5G)

EDGE (2,75G) 384

UMTS (3G) 21.000

LTE (4G) 1800 MHz 75.000

LTE (4G) 2600 MHz 150.000

300

100

75

20

20

-49%

Latency (ms)

GPRS (2,5G)

EDGE (2,75G)

UMTS (3G)

LTE (4G) 1800 MHz

LTE (4G) 2600 MHz

Technology technical characteristics are evolving

at a fast pace…

…aligned with m2m expected

evolution

…leading to a new series of questions

•Should M2M application areas be

supported in the most advanced

solutions?

•What is the right time to invest in new

network technologies?

•What about power consumption?

82

+388%

2016

400

2011

Number of connected devices

Millions.

Source: Juniper Research

1

Page 5: Convergent Strategy for M2M Networks and Opportunities · 2011. 10. 27. · Innovation Management bruno-a-tomas@telecom.pt Convergent Strategy for M2M Networks and Opportunities ETSI

5

Wide range of M2M applications

Source: Commercial and consumer M2M device connections by industry sector, worldwide, 2020 [Source: Analysys Mason, 2011]

M2M Applications

% of worldwide connections 2020 (Total = 2,1 billions) Other Verticals

Utilities

Security &

Surveillance

Automotive

Healthcare

Government

& Local

Administration

1%

3%

13%

21%

62%

2

Waste

Vending

Parking Meter

HVAC

Traffic

Points of Sale

Printers

Production Chain

Location Services

Home Management

Lifts

Page 6: Convergent Strategy for M2M Networks and Opportunities · 2011. 10. 27. · Innovation Management bruno-a-tomas@telecom.pt Convergent Strategy for M2M Networks and Opportunities ETSI

6

To assess the identified challenges the problem was depicted in

main action blocks

Decision

Gateway

2

Technical

Framework

Strategy for

Prioritized

Applications

3

Blo

ck D

iag

ram

Ob

ject

ive Joint analysis and matching

between new network

technologies and

application areas

Evaluation

method

creation

Roadmap for

further

developments

M2M Application

Areas

1

Network

Technologies

Internet of Things

a

b

Page 7: Convergent Strategy for M2M Networks and Opportunities · 2011. 10. 27. · Innovation Management bruno-a-tomas@telecom.pt Convergent Strategy for M2M Networks and Opportunities ETSI

7

Challenge 1a main actions

• Main application areas analysis

• Business context and expected

evolution

• Requirements per application (Fixed

IP; Always on, etc.)

• Matching with technological

capabilities matrix

ILLUSTRATIVE

M2M Value

Att

racti

ven

ess

ApplicationLantecy

(ms)Nr Devices

Nr Connections

(Per Minute)QoS (%)

Smart

Metering/Grid150 X.000.000 4 99

Automotive ? X.000.000Always

Connected?

M2M Application

Areas

1

a

Page 8: Convergent Strategy for M2M Networks and Opportunities · 2011. 10. 27. · Innovation Management bruno-a-tomas@telecom.pt Convergent Strategy for M2M Networks and Opportunities ETSI

8

Challenge 1b main actions

• New and legacy network technology

characteristics analysis

• Power consumption per technology

• Communication device cost and foreseen

evolution for each network

• Matrix of capabilities per technology (QoS;

Latency; Transmission rate; Traffic; etc.)

• Future developments on Internet of Things

Technology Download* (bit/s) Upload* (bit/s) Range (meters)

ADSL 8M 768k 300

ADSL2+ 24M 1M ADSL+500

GPON (FTTH) 1G 100M

10G GPON 10 G 2.5 Gbit/s

Technology Download* (bit/s) Upload* (bit/s) Latency (ms)

GPRS (2,5G) 80k 20k >150

EDGE (2,75G) 236,8k 59,2k

UMTS (3G) 384k 64k

>80 HSDPA (3,5G) 7,2M 1,6M

HSPA+ (3,75G) 21,6M 5,8M

LTE (4G) 100M 50M >5

ILLUSTRATIVETechnology Device Avg. Cost (€) Lifetime (years)

GPRS (2,5G) 20 10

EDGE (2,75G)

UMTS (3G)

LTE (4G)

1

New Network

Technologies

Internet of Things

b

Numbering & Addressing

SIM Cards

Network Scalability

Core evolution for M2M

Transversal

Page 9: Convergent Strategy for M2M Networks and Opportunities · 2011. 10. 27. · Innovation Management bruno-a-tomas@telecom.pt Convergent Strategy for M2M Networks and Opportunities ETSI

9

Challenge 2 main actions

Decision

Gateway

2

• Definition of internal procedures to

acquire and process information

• Information gathering and analysis

• Metrics computation

• Evaluation method creation

ILLUSTRATIVE

Inputs from 1a

and 1b

Metrics

Computation

Evaluation

Method

Page 10: Convergent Strategy for M2M Networks and Opportunities · 2011. 10. 27. · Innovation Management bruno-a-tomas@telecom.pt Convergent Strategy for M2M Networks and Opportunities ETSI

10

Challenge 3 main actions

Technical

Framework

Strategy for

Prioritized

Applications

3

• Definition of the roadmap

• Definition of technical and business

guidelines on a year-by-year basis

• Final conclusions and further steps

ILLUSTRATIVE

Page 11: Convergent Strategy for M2M Networks and Opportunities · 2011. 10. 27. · Innovation Management bruno-a-tomas@telecom.pt Convergent Strategy for M2M Networks and Opportunities ETSI

11

What we usually get from traditional prioritization methods …

Automotive

Energy

Efficiency

Home

Management

Remote &

Inventory

Management

Key point: How to plan for the present but looking to the future?

Smart

Metering/

Smart

Grid

Sports &

Leisure

Health &

well being

Security

e-

Government

Education

Example of commonly prioritized

verticals concerning business

impact and market demand

Page 12: Convergent Strategy for M2M Networks and Opportunities · 2011. 10. 27. · Innovation Management bruno-a-tomas@telecom.pt Convergent Strategy for M2M Networks and Opportunities ETSI

12

… and now what we defined for an effective and future proof

strategy

201420132011 2012

Network Evolution and Technical

Framework for the Next YearsState-of-the-Art

M2M

TELCO Tech

M2M

Business

Methodology

Application

Current

Developments

and Verticals

Future Applications to Address

Methodology

Application

Where the Stakeholders are

pointingGo where the Future is …

Page 13: Convergent Strategy for M2M Networks and Opportunities · 2011. 10. 27. · Innovation Management bruno-a-tomas@telecom.pt Convergent Strategy for M2M Networks and Opportunities ETSI

13

Answering identified questions

1. Will New Network Technologies lead to M2M

massive deployments?

2. What strategy and prioritization method for

M2M potential applications in virtually

limitless number of industries?

Yes, but the killer is a

convergent strategy

Matching business and

technical requirements

Defining a technical

framework for solutions

delivery

Invest regarding what the

framework depitcs and not

only what market demands

Page 14: Convergent Strategy for M2M Networks and Opportunities · 2011. 10. 27. · Innovation Management bruno-a-tomas@telecom.pt Convergent Strategy for M2M Networks and Opportunities ETSI

14

A consolidated strategy may be underpinned by a coordinated

approach

Best practices in

access/core

technologies per

application

Identifying gaps

between

technology and

applications

Defining

mandatory

requirements per

application

Defining

transversal and

time phased

requirements for

the following years

How the different stakeholders may contribute

• Exchange of global

best practices

(Creation of a specific

forum possibly

coordinated by ETSI)

• Foment open

discussions in TC’s

focusing on these

specific topic

• Standardizing the

evaluation metric in

order to be applied

widely

Call to action

Page 15: Convergent Strategy for M2M Networks and Opportunities · 2011. 10. 27. · Innovation Management bruno-a-tomas@telecom.pt Convergent Strategy for M2M Networks and Opportunities ETSI

This document is the intellectual property of PT and is prohibited

the use or spread without express written permission.

Thank you

[email protected]

Bruno Conde Tomás

Innovation Management

[email protected]