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Big-Data Is Key to Consumerization of M2M

Heavy Lifting Analyst Notes
Heavy Lifting Analyst Notes
Heavy Lifting Analyst Notes
8/28/2013

Transforming itself into a value-added player in the M2M business landscape is an arduous task for any network operator or enterprise. As the "Internet of Things" becomes a common phenomenon, we see a blurring of lines between consumer and business applications. To maximize business potential from these market developments, enterprises need to transform themselves into value-added players in the M2M business landscape. For that to happen, the enterprise's ability to manage data securely becomes critical. Hence their underlying solutions platform needs to be capable of not only securely managing data captured from machines and devices, but also transforming that data into relevant information based on business rules.

Enterprises as well as network operators will need to embrace value-based approaches, which in turn mean that their underlying platform must possess the ability to identify and monetize value. In order to shape their vision into reality, service providers need an underlying platform that is flexible and can adapt to changing market needs. This platform should be able to provide enterprises with asset management and transactional insight capability that can help them launch innovative and aggressive business models.

Operators and enterprises that can adopt the right application enablement platform that allows them to become more intimate with their end-customers can feel assured that they have successfully elevated their value proposition for their high-value customers.

Today, with the success of M2M depending on the consumer or the B2B2C segment, it is time for application enablement platforms to be data driven and focus on consumer applications in order to fully exploit M2M revenue potential. Transition from the current static, siloed, inflexible M2M mindset to something more dynamic, nimble and flexible will require a data-centric approach and the capability and intelligence to turn raw data into actionable information.

Wireless operators, especially in mature markets, can increase their customer loyalty and profitability by putting visibility and control mechanisms in the hands of their enterprise users, who can then leverage those mechanisms to create a personalized experience for their end-customers. Healthcare, automotive, smart home, home security are key areas where consumer applications will be critical for M2M adoption.

In an upcoming Heavy Reading SPIT report we will be discussing how big-data and advanced analytics can be effectively exploited by companies to create revenue potential through targeted consumer applications.

— Ari Banerjee, Senior Analyst, Heavy Reading

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abanerjee
abanerjee
8/28/2013 | 11:33:06 AM
Re: Is anybody ready for this?
Absoutely. Our research shows very clearly that success of M2M will depend on consumerization of M2M. If SPs dont act fast enought alternate providers, M2M MVNOs will. In fact many of them are doing so today. Operators cannot afford to rely just on their connectivity centric wholesale M2M business if they want to see substantial revenue growth from M2M services.
Carol Wilson
Carol Wilson
8/28/2013 | 10:51:23 AM
Re: Is anybody ready for this?
So, is everyone seeing a sense of urgency here? Like, if network operators don't get their act together to do this, someone else is going to and the market will pass them by?
abanerjee
abanerjee
8/28/2013 | 10:49:47 AM
Re: Is anybody ready for this?
Good question Carol. Its not happening fast enough as it should be. However the intent is there. Next generation of application enablement platforms or AEP's will have to manage data effecitively, have analytics capability and provide API management and application management platform to make this happen. It is then upto SPs and enterprises to adopt these platforms to create personalized and value added services for the consumer segment.
Sarah Thomas
Sarah Thomas
8/28/2013 | 10:49:17 AM
Re: Is anybody ready for this?
Good question, Carol. Seems like it's happening simultaneously with operators selling customer data to businesses, retail outlets, even advertisers. Not sure if that's the right idea though, when they haven't even begun to master using it internally. 
Carol Wilson
Carol Wilson
8/28/2013 | 10:15:32 AM
Is anybody ready for this?
Ari,

As network operators continue to try to use Big Data from their own networks to improve what they offer customers, are they ready to enable enterprises to use Big Data and analytics to improve what they deliver? Is all of this happening simultaneously?
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