“Mobile network provider’s and operator’s current process landscapes have
been designed with typical consumers and voice-oriented business customers
in mind. They were not designed to meet the specific process requirements of
enterprises that want to integrate M2M solutions into their own production
and customer-oriented processes and make them more efficient. While services
for a mass market are largely standardized, M2M projects are usually highly
customized,” says Stefan Gärtner, Managing Consultant at Detecon
International. That is why a simple adaptation of the current operational
processes at telecom operators is insufficient: “Telecommunication providers
that want to benefit from the growing M2M market will rebuild platforms and
processes.”

Detecon recommends the creation of a “M2M enabling unit” (M2ME) as the core
element of a M2M process framework. Such unit acts as a mediator between the
telecommunications networks and the M2M applications, hiding the complexity
of the telecommunications networks to M2M providers.

Complex provisioning or service management processes are made easy through
an Internet portal with just a few mouse clicks. If, for example, a security
company needs several hundred SIM cards for their alarm systems, it can
easily use an API suited for bulk operations – avoiding a tedious manual
activation process that usually applies for private customers. Once the SIM
cards have been activated by the M2ME, a real-time report will show the
status of the alarm systems. “Using automated business processes, the M2ME
decouples the M2M business from the existing network operator standard
processes,” says Stefan Gärtner. “That saves time and reduces costs.”

Potential of the M2M growth market
Detecon assumes that the growth rates for the European M2M market will be in
double digits until 2013. Examples of wireless M2M solutions include
hand-held devices to transmit warehouse and cash inventory data, or portable
devices that send real-time data from medical equipment. Other M2M
applications are intelligent power meters which transmit their readings
straight to the utility company, or household appliances which can be
controlled by cell phone.

According to an analysis performed by Detecon, six industry sectors produce
more than 80 per cent of the communication revenues of the M2M market:
automotive, logistics, retail and financial services, industrial and
security technology, facility management, and utilities. Currently,
connected consumer electronics such as e-book readers, cameras or music and
video players still play a minor role. But Detecon believes that this will
soon change. Already today, one out of five portable consumer electronic
devices is M2M enabled. This proportion continues to grow rapidly.
“Therefore operators do benefit from adapting their process frameworks and
networks to meet the requirements of machine communication,” recommends
Gärtner. “This ensures success to enter these new, additional M2M markets
besides the current mobile mass market.”

Detecon International GmbH
Detecon is one of the world’s leading consulting companies for ICT
management consulting. Our services focus on consulting and implementation
solutions which are derived from the use of information and communications
technology (ICT). They encompass classic strategy and organization
consulting as well as the planning and implementation of complex,
technological ICT architectures and applications. Detecon’s expertise
bundles the knowledge from the successful conclusion of management and ICT
consulting projects in more than 160 countries. Detecon is a subsidiary of
T-Systems International, the key account brand of Deutsche Telekom.