New Value for Consumer & Industrial Oem with Internet of Things

WHITEPAPER NEW VALUE FOR CONSUMER & INDUSTRIAL OEM WITH INTERNET OF THINGS

JUNE 2018

Internet of Things (IoT) technologies productivity and form closer culminate in creating a unique IoT give computing devices embedded connections with their customers2. strategic position for OEMs as they in everyday objects the ability to can gain and retain a larger share of send and receive data from cloud This economic disruption is not just their chosen target market. applications. about the data which these billions of devices will generate - IoT will serve With the APAC region currently With a variety of tangible benefits as the brain of the new economy. leading the world with the fastest for both consumer and industrial Sensors placed in every machine rate of IoT adoption4, global product manufacturers, IoT is and device will provide insights OEMs based in the region which a paradigm shift in technology to organisations and help them are marketing and distributing which creates opportunities for automate, refine, innovate and grow their products worldwide are well the creation of better products. their businesses ultimately leading to placed to take advantage of the Products which can foster closer empowered consumers.3 opportunities that IoT has to offer. relationships with customers, IDC forecasts 8.6 billion connected create ancillary revenue streams For this vision to become a reality, devices by 2020 with global IoT and give manufacturers the real- organisations aiming to leverage expenditure expected to reach time decision-making capability the IoT revolution need to have $1.29 trillion USD by 2020, with APAC they need to improve products and the infrastructure ready to absorb, seeing the greatest IoT spending operations and strengthen their consolidate and analyse the data, throughout the forecast period.5 competitiveness. and a network which ensures all their devices are always on and However, the value of the data Across the Asia Pacific (APAC) region, secured globally. which is currently being collected is executive leaders are recognising not being leveraged effectively and the real business value that IoT THE ROLE OF THE the full potential of this platform is delivers, with 70% of Forbes Insights GLOBAL OEM not being realised. A recent study survey respondents recognising that found that while nearly all (98%) of IoT is fast becoming the competitive Global Original Equipment organisations that have adopted IoT differentiator that will affect almost Manufacturers (OEMs) are at the claim to be able to analyse data, the every industry. The study also found forefront of the IoT wave due same majority admitted to challenges an inherent need for organisations to their innovative research and in creating value from this data6. to find a trusted innovation partner design processes, their extensive to support their IoT initiatives and production capacity and their ability The true value of IoT lies in the data achieve business objectives.1 to market their products through which is being collected. Data which multiple channels on a global scale. can be analysed to extract business A NEW ECONOMIC PARADIGM OEMs can embed IoT technology at value, improve product design and scale, which creates a substantial even generate revenue in some way The IoT solution ecosystem has set barrier to entry for any prospective and OEMs need to find a solution to the stage for what many are calling competitors. These factors leverage this opportunity. the next economics paradigm or the 4th industrial revolution. A world where billions of smart devices send and receive data in real time This economic disruption is not just about the data to cloud applications which help organisations increase operational which these billions of devices will generate - IoT efficiency, enhance workforce will serve as the brain of the new economy.

For more information, visit us at www.tatacommunications.com and www.microsoft.com 1

THE IOT OPPORTUNITY FOR THE GLOBAL OEM IoT solutions are unique as each solution needs to be customised and aligned to the business and customer market the solution intends to serve. This need to address the niche nature of each target market segment and potential customer requirement, makes the creation of an IoT solution a complex, time consuming and risky undertaking. This potential risk could however be mitigated by deploying IoT solutions on a global, scalable, secured and flexible platform which has already been created and battle tested for this purpose.

There are two distinct manufacturing The OEM Industrial Segment accelerators for the consumer and sectors where a solution focus can industrial markets. These can assist be applied and IoT platforms have The industrial market segment with building out the roadmap and already been developed for these which addresses a range of industrial deploying the solution into the two primary market categories which products and control systems, relevant market segment; allowing OEMs can leverage. ranging from construction and heavy OEMs to concentrate on their core equipment to medical devices and offering while leveraging these The OEM Consumer Segment HVAC systems. The opportunity for pre-built capabilities to help rapidly IoT solutions tailored to this market build and deploy effective IoT The consumer market segment offers segment is to build better products enabled products. products such as computing devices, and maintain these in the field more wearables, home appliances etc. and efficiently due to the potential data Security is of paramount the IoT play for OEMs manufacturing insights which can be obtained from importance in the IoT world products which fall into this category connected industrial devices. is the opportunity to create revenue A secure IoT solution needs to ensure streams from connected devices and Deploying IoT solutions with the full IoT ecosystem including the applications. relevance device, the network, the applications and the data, is protected from any When embarking on an IoT journey, 7 Although each IoT solution potential security vulnerabilities. OEMs active in each market segment Any weakness in any part of the will be unique to each should tailor their IoT solutions infrastructure could lead to a serious individual OEM, there are accordingly, taking the nuances of security breach. Compromised IoT both segments into account and devices can also be hijacked by solution offerings which can recognising the unique opportunities third parties for nefarious purposes. have pre-built integrators which exist for each segment type. IoT botnets have already mounted 8 and accelerators for the devastating DDOS attacks. In fact, Although each IoT solution will be 88% of organisations in Asia Pacific consumer and industrial unique to each individual OEM, have experienced at least one IoT- there are solution offerings which markets. related security breach, the highest can have pre-built integrators and incidence of any region in the world.9

For more information, visit us at www.tatacommunications.com and www.microsoft.com 2

THE BUSINESS OPPORTUNITY end customer insights from the vast Better Products amount of data their products are TO TRANSFORM IoT can help OEMs build better “CONNECTED OEMS” accumulating on an ongoing basis. Data generated by IoT provides a products with business benefits With global reach and a diversified variety of use cases but ultimately which include opportunities for product offering, global OEMs are the quality of the information being differentiation, a shorter time to well placed, due to their control over generated helps OEMs connect with market, reduced compliance risks, manufacturing and global distribution their customers, produce better a decrease in cost, an increase to end customers, to ride the IoT products and provide differentiating in productivity, accelerated wave and realise the full range ancillary services, essentially revenue growth, enhanced innovation and an improvement of benefits arising from the data creating a “Connected OEM”. 10 being generated by this platform. in overall product quality. Not only can these insights help Understanding end customer “Connected OEMs” produce better Operational Efficiency requirements is the key to products, increase operational IoT data providing analytical successfully marketing and selling efficiencies and ultimately improve insights can also help OEMs improve products and services. Global customer satisfaction, they also product lifecycle management and OEMs who are actively engaged in provide opportunities for the operational efficiency. Data derived the production and distribution of creation of alternative revenue from connected devices can help IoT enabled devices to both the streams from data being collected reduce the time taken to correct consumer and industrial markets, by end user consumer devices, as any faults due to a shorter detection have a unique opportunity in gaining well as mitigating commercial risk. cycle and can even anticipate failures. In this way IoT can help strengthen and ensure an effective preventative maintenance process.

Further operational efficiencies can be realised through actionable insights derived from data which can help improve future design considerations. In addition, timely data can result in operational cost savings through preventive action rather than the more expensive option of post product remediation.

Understanding end customer requirements is the key to successfully marketing and selling products and services.

For more information, visit us at www.tatacommunications.com and www.microsoft.com 3

Happier Customers In an outcome-based model, OEMs HOW OEMS CAN UNLEASH could look at selling the value their THE POWER OF IOT IoT-gathered data can also help OEMs product generates. For example, if increase customer intimacy through the OEM manufactures generators IoT has an almost unlimited improved service delivery, real- it could create a revenue stream potential and many of the true time communication and enhanced based on the electricity the device benefits and innovations IoT has to support. IoT is also very effective in generates for the customer. offer have yet to be discovered. understanding and taking advantage of the customer journey, anticipating Cross-selling is another opportunity Investing in IoT, like any other customer needs and helping to where IoT can help OEMs grow business decision, requires understand customer pain points. revenue. By analysing the data the necessary due diligence. devices are generating, OEMs can Consideration must especially In addition, an IoT solution can also target their customers with ancillary be given to the scale needed help distribute feature updates and and complementary products and to successfully implement a help remediate issues remotely. services to help them utilise the global deployment strategy. It can also be used to create an original product more efficiently. ancillary customer service where By analysing the data product performance and other We have already touched on related product information are monetisation in the subscription devices are generating, shared with the customer. model. The data IoT devices are OEMs can target their generating is not only of value to customers with ancillary Access Revenue Growth the OEM, but to the end customer Due to their ability to gather data as well. In some instances, this and complementary post deployment, IoT enabled data may even be of value to a products and services devices can provide OEMs with third party. For example, an IoT- to help them utilise the a source for generating new and enabled water pump’s data could innovative business models. IoT be sold to a local authority who original product more revenue generating models include: is responsible for managing bulk efficiently. subscription, outcome-based, cross- water supply and billing end users. selling and data monetisation.11 Mitigating Risks A successful IoT solution needs a platform which is built for The subscription model enables the Risk mitigation comes down to scalability, availability and flexibility global OEM to sell its IoT enabled having the right information at the and is secure. Such a platform needs devices using a similar model to right time. An early warning system, to be able to not only manage large software subscriptions. For example, which alerts when a potential issue amounts of data, but it should OEMs could monetise the data and might be about to arise is a perfect also have the necessary tools to analytics their devices generate use case that demonstrates where analyse data to derive information, and sell this information back to IoT data can help mitigate business draw actionable insights from it the end user of the product. risk due to device failure. The use and present it in a user friendly of IoT in predictive maintenance is and comprehensible format. Consideration must one part of the scope of this, but the especially be given to use of IoT data to develop models IoT is all about connected about when and why equipment devices providing real-time data. the scale needed to fails can also be a vitally important Communications and connectivity is successfully implement way in which IoT contributes value. therefore a core component of any It provides an insight to help OEMs IoT solution. Consideration needs to a global deployment to understand design or component be given to how devices are enabled strategy. issues and rectify them accordingly. to connect and communicate and

For more information, visit us at www.tatacommunications.com and www.microsoft.com 4

what communications medium or 31% of companies state that keeping IoT secure is a network they will use. For example, a communications strategy which uses challenge and a further 31% state a lack of skilled staff is shortwave-based communications, hindering their ability to rapidly launch their IoT strategies. such as Bluetooth or Wi-Fi, will differ to a strategy where GSM is component of any communications IoT environment, the solution the chosen communication medium. medium and an important requires infrastructure, in the form GSM represents a cost-effective consideration which an OEM of connected devices, network mechanism to connect devices deploying an IoT solution needs to and a communications channel, effectively and reliably and is cost factor into its strategy. A secure together with a solutions platform effective, pervasive, secure and IoT communications solution helps in the form of a data repository, reliable. Different connectivity media protect the entire IoT ecosystem analytics and reporting engine and are suitable for different applications, comprising the device, the network, associated BSS/OSS applications. so choosing the right communications the data and the applications. medium is an essential component Configuring components which of any IoT strategy. Ultimately, an IoT strategy make up the IoT ecosystem needs to create and seamlessly requires specialised skill, and Global reach with local awareness orchestrate functions between to ensure a successful outcome, is the cornerstone of a successful the three main components of the some experience in implementing global IoT strategy. A successful IoT ecosystem. The device, the these technologies. There are global IoT connectivity service needs network and the communications challenges however. 31% of to be available everywhere but must channel all need to work seamlessly companies state that keeping IoT remain locally relevant ensuring while ensuring the entire IoT secure is a challenge and a further the infrastructure, communications environment remains secure. If 31% state a lack of skilled staff is and cost components of all markets we consider what components hindering their ability to rapidly are considered. Security is a key are needed to create a successful launch their IoT strategies12.

For more information, visit us at www.tatacommunications.com and www.microsoft.com 5

Partnering with organisations who to drive their IoT strategy. With Tata Communications also helps have appropriate knowledge and a globally deployed IP backbone OEMs eliminate the complexity expertise can help an OEM successfully network, points of presence in all of creating, managing and realise the benefits of IoT in a shorter major markets and agreements implementing their own IoT timeframe. In addition, specialised IoT with more than 600 mobile network platform. Tata Communications partners already have the necessary operators for last mile access, MOVETM provides secure end-to-end infrastructure in place which can help connections with all major cloud communications for the service get the IoT solution deployed faster. providers and a robust security lifecycle of an IoT solution. Tata platform, Tata Communications has Communications MOVETM global TATA COMMUNICATIONS everything an OEM needs to connect coverage provides a borderless AND MICROSOFT– JOINT its devices on a global basis. experience, essentially eliminating frontiers that physically exist INFRASTRUCTURE FOR Tata Communications MOVETM is across networks within countries. THE GLOBAL OEM an innovative edge-to-cloud IoT Tata Communications and Microsoft connectivity capability that gives With zero-touch provisioning and combine all the skills, resources and OEMs the ability to embark on a digital a programmable software defined infrastructure needed for OEMs to journey which allows their operations environment, Tata Communications TM launch a successful IoT solution. to become faster, more responsive MOVE provides a secure edge-to- and efficient, ultimately leading to cloud connectivity with optimum Tata Communications MOVETM – a more intimate and personalised quality of service and transparency. Providing the next generation experience for their customers. In addition, this shift in business model Microsoft Azure – Providing mobile IoT network can help reposition an OEM from being a global platform unlocking Tata Communications can help a pure hardware provider to becoming the value of IoT data OEMs with the communications and a service-based provider (XaaS), which connectivity requirements needed opens new revenue opportunities. Microsoft Azure has a host of IoT- related offerings which can help OEMs with their IoT platform needs. From scalable data repositories which can handle vast amounts of data, to machine learning platforms and other analytical services, Microsoft Azure has every solution an OEM may need to store, analyse and report on IoT data.

From its global data centres located on every major continent, Microsoft Azure has the ability to scale any IoT solution and deliver the service to end customers in their local regions.

Furthermore, the technology investment made in building IoT- related services such as IoT Hub which can support millions of connected devices on a single instance, can

For more information, visit us at www.tatacommunications.com and www.microsoft.com 6

OUR NETWORK ARCHITECTURE GIVES FULL END-TO-END CONNECTIVITY

SMS/2G/3G/LTE (Private APN dedicated IZO™ Private or shared) Connect

600+ NETWORKS Private Instance of Azure Cloud IPX or Serving gateway GRX DISTRIBUTED GLOBAL ARCHITECTURE

DNS Provisioning & Network Policies Management THINGS Azure IoT

Secured IoT Azure 600+ mobile Regional break-out Cloud management connectivity IoT Device ID network coverage • Local Tiers 1 Internet / MPLS • Private cloud connectivity (Remote subscription & (Multiple networks (Embedded in eSIM • Customisable routing policies Azure device ID within a country) secured element) • Local IP Internet address Portal & API management)

www.tatacommunications.com I @tata.comm | http://tatacommunications-newworld.com | www.youtube.com/tatacomms © 2016 Tata Communications. All Rights Reserved. TATA COMMUNICATIONS and TATA are trademarks of Tata Sons Limited in certain countries. be scaled to multiple instances solutions. Their unmatched scaling “Artificial Intelligence has the providing a robust global platform capability and the investment potential to amplify human for an IoT solution of any size. made in researching and developing ingenuity, improve lives and solutions in terms of platform, transform businesses. At Microsoft, AI integration is seamless with transport and cloud computing, we are enabling AI at the edge native support for Machine Learning make their joint platform the logical that securely scales to billions of and with native, secure IoT edge choice for global OEMs looking to devices with management from a support, Microsoft Azure is the IoT launch a successful IoT strategy. single dashboard. Our Azure IoT solution which brings AI and Machine platform empowers OEMs to support Learning directly to the edge. “The joint offering from Tata their customers with targeted, Communications and Microsoft Azure adaptive and innovative services With a global reach, local relevance provides a truly scalable, available that allows them to achieve more,” and innovative IoT applications and and secure IoT solution” said Anthony said Mike Chan, General Manager services, Microsoft Azure provides Bartolo, Tata Communications Chief for Cloud and Enterprise Business an IoT platform which is unmatched Product Officer. “It provides a full at Microsoft in Asia Pacific. by even its closest competitors edge-to-cloud platform which takes care of the transport, storage and Tata Communications and Microsoft Microsoft Azure + Tata compute resources required. Security are two industry giants which Communications MOVETM = and reliability are also built into ensures this IoT platform is truly Full Edge to Cloud Platform the solution providing a private scalable. Both organisations bring end-to-end and always on secured economies of scale and a mature The true value Microsoft and Tata provisioning service. Intelligence partner ecosystem which can help Communications bring to the is also built into the core of this OEMs rapidly develop and deploy market is their proven ability to joint platform.” IoT solutions and applications. launch and deliver successful IoT

For more information, visit us at www.tatacommunications.com and www.microsoft.com 7

CONCLUSION: NEXT STEPS IoT is the platform for the next economics paradigm and will serve as the brain of the new economy.

Global OEM vendors based in the APAC region, marketing and distributing their products worldwide, are at the forefront of the IoT wave and are very well placed to take advantage of the opportunities that IoT has to offer. However, the value of the data collected by IoT enabled devices is not being leveraged effectively and organisations have yet to realise its full potential. deployment, IoT devices can also offerings which can help OEMs build Connected OEMs who are actively help OEMs build better products and a platform which can consume, engaged in the production and provide OEMs with a platform for analyse and report on their data. distribution of IoT enabled creating new and innovative business devices to both the consumer models such as subscription and The joint solution offering from and industrial markets, have a outcome-based revenue generation, Tata Communications and Microsoft unique opportunity in gaining end cross-selling and data monetisation. creates a truly scalable, available and customer insights from the vast secure IoT platform which provides amount of data their products are Tata Communications and Microsoft a full edge-to-cloud solution. It accumulating on an ongoing basis. are global leaders in IoT and together takes care of the transport, storage have all the skills, resources and and compute resources required IoT can help OEMs build better infrastructure needed for OEMs to and is both secure and reliable. products, and IoT gathered data can launch IoT enabled devices and help global OEMs increase customer equipment. Tata Communications can Discover more at: intimacy through improved service help OEMs with the communication delivery, real-time communication and connectivity requirements needed https://www.tatacommunications. and enhanced support. Due to to drive their IoT strategy, while com/services/mobility/iot/move their ability to gather data post Microsoft has a host of IoT-related https://azure.microsoft.com/ en-gb/services/iot-hub

1 www.forbes.com/forbes-insights/our-work/internet-of-things/ 7 www.networkworld.com/article/3266375/internet-of-things/best-practices-for-iot- 2 www.gartner.com/doc/3806366?srcId=1-3132930191 security.html 8 3 www.forbes.com/sites/joemckendrick/2015/03/25/is-the-internet-of-things- www.csoonline.com/article/3258748/security/the-mirai-botnet-explained-how- heralding-the-next-great-economic-shift/#65421bfd8b11 teen-scammers-and-cctv-cameras-almost-brought-down-the-internet.html 9 4 softwarestrategiesblog.com/2018/01/01/roundup-of-internet-of-things-forecasts- www.enterpriseinnovation.net/article/state-iot-asia-pacific-1805692365 and-market-estimates-2018/ 10 www.concurrent-engineering.co.uk/Blog/bid/89061/7-PLM-business-benefits-that- 5 www.telecomreviewasia.com/index.php/news/featured-articles/975-dell-emc- every-company-needs-to-know realizing-the-potential-of-iot-in-asia 11 www.iotforall.com/iot-business-model-monetize-product/ 6 www.enterpriseinnovation.net/article/state-iot-asia-pacific-1805692365 12 www.networksasia.net/article/apac-companies-are-already-seeing-benefits- iot.1516530687

For more information, visit us at www.tatacommunications.com and www.microsoft.com 8