Machine-to-Machine Integration with Enterprise Business Systems

2012 Survey Results and Report

Axeda Connexion

INTRODUCTION

CONNEXION LANDSCAPE

RESPONDENTS

TOP PRIORITIES

INNOVATION THRU INTEGRATION

NO SILOS

LEADERS

DELIGHT CUSTOMERS

PARTNERSHIPS

CELLULAR ADOPTION

SUMMARY

RESOURCES

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 efciency. The expenditure is then justied 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 eld 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 nding 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 xed line networks with their increasingly sophisticated security arrangements. Whereas xed 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 ndings in Axedas survey reect some of the key trends we are also nding 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-Woolley CEO Beecham Research

Page 2

2012 Survey Results and Report on M2M Data Integration with Enterprise Business Systems

www.axeda.com

NEXT >

INTRODUCTION

CONNEXION LANDSCAPE

RESPONDENTS

TOP PRIORITIES

INNOVATION THRU INTEGRATION

NO SILOS

LEADERS

DELIGHT CUSTOMERS

PARTNERSHIPS

CELLULAR ADOPTION

SUMMARY

RESOURCES

M2M professionals gathered from around the world to learn and collaborate at Connexion 2012 and discuss integrating connected products into the enterprise.

This report focuses on the Machine to Machine (M2M) data integration and use case ndings 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 workow initiatives such as asset tracking, conguration management, and usage-based billing. The complete survey ndings 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.

M2M Integration & Enterprise Use Case Highlights

Axeda 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 eld service capabilities 50% plan to enhance customer service 45% plan to automate asset management and conguration management with M2M data

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

1 IDC Research 2 IDC Research 3 Ericsson

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

Page 3

2012 Survey Results and Report on M2M Data Integration with Enterprise Business Systems

www.axeda.com

< PREV

NEXT >

INTRODUCTION

CONNEXION LANDSCAPE

RESPONDENTS

TOP PRIORITIES

INNOVATION THRU INTEGRATION

NO SILOS

LEADERS

DELIGHT CUSTOMERS

PARTNERSHIPS

CELLULAR ADOPTION

SUMMARY

RESOURCES

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 nancial services 3% from other industries

Industry Participation
medical mfg.

46%

industrial mfg.

24%

high tech

20%

nancial

7%

other

3%

Page 4

2012 Survey Results and Report on M2M Data Integration with Enterprise Business Systems

www.axeda.com

< PREV

NEXT >

INTRODUCTION

CONNEXION LANDSCAPE

RESPONDENTS

TOP PRIORITIES

INNOVATION THRU INTEGRATION

NO SILOS

LEADERS

DELIGHT CUSTOMERS

PARTNERSHIPS

CELLULAR ADOPTION

SUMMARY

RESOURCES

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 conguration, health status, usage, inventory levels, and alerts can automatically be populated. This data can automatically trigger business process workows such as: Automated service ticket/case creation Pay-per-use billing Warranty management Consumable resupply Compliance management Product recall management Planned maintenance

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

interested & planning integration 67%

no plans 27%

integrated 11%

Page 5

2012 Survey Results and Report on M2M Data Integration with Enterprise Business Systems

www.axeda.com

< PREV

NEXT >

INTRODUCTION

CONNEXION LANDSCAPE

RESPONDENTS

TOP PRIORITIES

INNOVATION THRU INTEGRATION

NO SILOS

LEADERS

DELIGHT CUSTOMERS

PARTNERSHIPS

CELLULAR ADOPTION

SUMMARY

RESOURCES

Achieve Business Innovation by Integrating M2M Data More Widely

Field and customer service, asset management, and conguration 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

The introduction of M2M data into business systems enhances current processes with more accurate and real-time data.

Based on your integration, which business processes are you planning to automate or enhance?
eld service customer service conguration mgt. asset mgt. warranty mgt. engineering other usage based billing sales consumable mgt.
security & compliance

69.1% 50% 45.6% 45.6% 26.5% 19.1% 19.1% 16.2% 13.2% 11.8% 11.8% 11.8% 8.8%

marketing recall mgt.

Page 6

2012 Survey Results and Report on M2M Data Integration with Enterprise Business Systems

www.axeda.com

< PREV

NEXT >

INTRODUCTION

CONNEXION LANDSCAPE

RESPONDENTS

TOP PRIORITIES

INNOVATION THRU INTEGRATION

NO SILOS

LEADERS

DELIGHT CUSTOMERS

PARTNERSHIPS

CELLULAR ADOPTION

SUMMARY

RESOURCES

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 nance

73.8% 59% 42.6% 39.3% 34.4% 18% 16.4% 13%

Page 7

2012 Survey Results and Report on M2M Data Integration with Enterprise Business Systems

www.axeda.com

< PREV

NEXT >

INTRODUCTION

CONNEXION LANDSCAPE

RESPONDENTS

TOP PRIORITIES

INNOVATION THRU INTEGRATION

NO SILOS

LEADERS

DELIGHT CUSTOMERS

PARTNERSHIPS

CELLULAR ADOPTION

SUMMARY

RESOURCES

The opportunity to embed insights sourced directly from equipment in the eld with core enterprise data in CRM and ERP systems allows our customers to transform critical business operations for a competitive advantage. The denition of a customer 360 degree view continues to expand.
Jim Goldnger Senior Director, Customer Value Network, SAP Americas

The Recognized ERP Leaders

Virtually every company uses an enterprise resource planning (ERP) system, and the survey ndings reect 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 Conguration management Product lifecycle management Warranties Recalls Ordering Billing

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

54.7%

other*

34.7%

Oracle

22.7%

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

Page 8

2012 Survey Results and Report on M2M Data Integration with Enterprise Business Systems

www.axeda.com

< PREV

NEXT >

INTRODUCTION

CONNEXION LANDSCAPE

RESPONDENTS

TOP PRIORITIES

INNOVATION THRU INTEGRATION

NO SILOS

LEADERS

DELIGHT CUSTOMERS

PARTNERSHIPS

CELLULAR ADOPTION

SUMMARY

RESOURCES

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 reected 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)

Page 9

2012 Survey Results and Report on M2M Data Integration with Enterprise Business Systems

www.axeda.com

< PREV

NEXT >

INTRODUCTION

CONNEXION LANDSCAPE

RESPONDENTS

TOP PRIORITIES

INNOVATION THRU INTEGRATION

NO SILOS

LEADERS

DELIGHT CUSTOMERS

PARTNERSHIPS

CELLULAR ADOPTION

SUMMARY

RESOURCES

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 specic expertise in the customers own industry. The biggest gap that Axeda found in customer integration plans was that almost 50% of respondents had not identied a system Integrator.

What System Integrator does your organization use?

none

49.2%

Tier 1

36.5%

Tier 2 - Boutique

14.2%

Tier 1: Accenture, CSC, Deloitte, IBM Tier 2 - Boutique: Wipro, TATA, HCL, Etherios, GlobalSoft

Page 10

2012 Survey Results and Report on M2M Data Integration with Enterprise Business Systems

www.axeda.com

< PREV

NEXT >

INTRODUCTION

CONNEXION LANDSCAPE

RESPONDENTS

TOP PRIORITIES

INNOVATION THRU INTEGRATION

NO SILOS

LEADERS

DELIGHT CUSTOMERS

PARTNERSHIPS

CELLULAR ADOPTION

SUMMARY

RESOURCES

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 benet 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

61%

no cellular today

31%

currently support cellular connectivity

24.6%

Page 11

2012 Survey Results and Report on M2M Data Integration with Enterprise Business Systems

www.axeda.com

< PREV

NEXT >

INTRODUCTION

CONNEXION LANDSCAPE

RESPONDENTS

TOP PRIORITIES

INNOVATION THRU INTEGRATION

NO SILOS

LEADERS

DELIGHT CUSTOMERS

PARTNERSHIPS

CELLULAR ADOPTION

SUMMARY

RESOURCES

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 dene and rene 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.

Learn more at
www.axeda.com/innovation

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

Page 12

2012 Survey Results and Report on M2M Data Integration with Enterprise Business Systems

www.axeda.com

< PREV

NEXT >

INTRODUCTION

CONNEXION LANDSCAPE

RESPONDENTS

TOP PRIORITIES

INNOVATION THRU INTEGRATION

NO SILOS

LEADERS

DELIGHT CUSTOMERS

PARTNERSHIPS

CELLULAR ADOPTION

SUMMARY

RESOURCES

Resources
About Axeda Axeda provides the leading cloud-based service and software for managing connected products and implementing innovative M2M applications signicantly 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, eet 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.

For more information visit our website

www.axeda.com

Additional Resources
Axeda Connexion Webinars Videos White Papers Data Sheets Case Studies

Page 13

2012 Survey Results and Report on M2M Data Integration with Enterprise Business Systems

www.axeda.com

< PREV