IDC Manufacturing Insights Community > Operational Technology Blog

NextGen RFID-Sensing Inclusion of Telematics

Thu, 29 Oct 2009 14:29:33 +0000

Entry

The Auto ID and Sensing Expo, held at MIT and produced by the Cambridge Enterprise Forum, offered a preview of what's ahead for auto-ID and related sensor-based technologies. In years past, this event was focused on UHF-RFID. This year's event was expanded to include technologies ranging from automotive telematics to specialized RFID-data-acquisition systems designed for vertical industries. It reasons that the driving force behind RFID-related technologies has moved from third-party commercial-and-federal mandate to need-based functionality defined along vertical-market requirements.

Vendors that had been leaders in the mandate-driven days of UHF-RFID, have shifted focus from “slap and ship” strategies to system designs that demonstrate how RFID solves challenges facing businesses—a welcome departure from the sterility of controlled pilot programs. An example of the space’s evolution can be observed by considering Alien Technologies. Once narrowly focused on market share related to tag production and sales, Alien Technologies today focuses on deployments in the manufacturing and retail sectors. Indeed, most vendors at the MIT event appear to have evolved past the stage of demonstrating the physics of RFID.

The RFID-related market is becoming less fragmented, a welcome development from a technology buyer perspective, a community that has been overwhelmed by vendor options and under-whelmed by results. An indication of the lessening market fragmentation can be observed in the reduced number of vendors that identify themselves as providers of RFID technology and tools. A pessimistic interpretation might be that the market has shrunk or consolidated—or that the value of the MIT event was low. Whatever the case, in recent history we've observed vendor attrition, acquisitions and exits from the RFID market altogether. Although this could be viewed as market implosion, we contend that it is merely the grounding of a technology sector that was never as earth moving as RFID boosters had suggested.

Recognizing that UHF-RFID is now supported by rationalized use cases and reasonable expectations, we believe that it's worthwhile to consider the wider Auto ID and sensor-based technologies space. An interesting place to start is in the area of telematics. Most often associated with the automotive industry, telematics systems collect, process, deliver, and analyze data sent from sensors mounted on a mobile asset. Unlike UHF-RFID systems, which are “passive,” telematics are “active” systems, meaning that these systems regularly “push” data from an enabled asset to an analytics architecture.

To emphasize the expanded range of technologies covered at this event, the keynote was delivered by an MIT professor whose research centers on “participatory sensing”—collecting data from multiple sources and making that data available to a community of users. The speaker demonstrated how pooled data can be exploited in manners ranging from civil infrastructure monitoring and visual mapping to route optimization.

That active systems that may not be exchanging typical RFID data are now included in the overall RFID narrative speaks to the coalescence of the sensor-based technology market. It's our belief that the inclusion of RFID and telematics into the broader categorization of auto-ID and sensor-based technologies is correct. Apparently, the event organizers agree, and we expect that vendors in the space will follow suit.

Keywords

M2M, telematics, RFID, auto-ID, Remote Services

M2M in MP3

Wed, 19 Aug 2009 13:31:52 +0000

Entry by Benjamin Friedman

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I was recently interviewed on M2M Radio. This interview was conducted by M2M Magazine editor Peggy Smedley. Peggy and I discussed factors shaping the M2M market; topics covered ranged from the Manufacturing Insights M2M vendor selection framework to the manner by which the overall M2M ecosystem might benefit from the US Federal Government's American Recovery and Reinvestment Act.

During the interview, I introduced the future IDC Manufacturing Insights M2M Global Index. The goal, as related to our M2M index, is to create and maintain a quarterly updated index of publicly traded firms that have identified M2M technologies as central to their product strategies. Identifying firms today that fit this characterization will be a challenge; nevertheless, we are confident that product companies will increasingly market enhanced product capabilities and support options made possible by M2M enablement. Metrics that we'll track in the index include: Revenue, Net Profit Margin and Inventory levels.

As the index evolves into a sample useful for data trending, we'll compare and contrast the performance of those firms with substantiated M2M product sets and those that have not acted in kind. We anticipate the findings will show quantifiable value of M2M throughout the product lifecycle.

Please have a listen to this two part interview (titles number 2 and 3 on 7/21/2009 ["Manufacturing M2M"]). I'm interested in your thoughts on M2M and the Stimulus package. Additionally, I welcome your thoughts concerning the MI M2M Global Index. Do you think there's value in this sort of data? Will data of this sort help you build the case for M2M within your enterprise?

I look forward to your feedback.

Qualcomm/Verizon Announce Joint Venture

Fri, 14 Aug 2009 15:32:54 +0000

Entry by Benjamin Friedman

Entry

The recent announcement of a Qualcomm Verizon joint venture represents a major step forward for the machine-to-machine (M2M) market. In the past twelve months the M2M market has exhibited a steady maturation that has lessened the fragmentation that had once defined the space; an example of this maturation is Deloitte's alliance with Axeda Corporation. In a similar vein, the Qualcomm / Verizon announcement will expand awareness of M2M and the manners by which M2M enabled devices solve business issues facing product companies spanning vertical industries.

The Qualcomm/Verizon joint venture (name to be determined) presents the market with an option that not only offers proven technology but also presents a level of fiscal stability that helps buyers sleep better. End-users seduced by M2M enabled capabilities yet unsure of the long term viability of the vendor should have confidence that the combined research and development groups of a Qualcomm/Verizon offering will bring stable M2M offerings backed by the cash reserves to support clients ranging from SMB to enterprise level.

Qualcomm and Verizon have independently built M2M offerings that have been in the market for a number of years. Qualcomm's M2M focus has been on the development of products and services, whereas Verizon's M2M efforts have focused on connectivity offerings. The companies complement one another well. Both companies have established strong reputations for their wireless offerings; however, their wired products have received less attention and suggest a capability gap in the joint offering. The market is right to inquire about the manner in which these wireless-focused partners plan to market, sell, provision and support wired or mixed connectivity M2M environments.

This joint venture may drive a coalescence of vendors to either compete with or complement the Qualcomm/Verizon juggernaut; the beneficiaries of the M2M vendor shake-up will be end-users, those already using M2M and those considering augmenting their product portfolio with M2M enabled functionality. Moreover, the Qualcomm/Verizon joint venture will drive M2M vendors to accelerate the delivery of expanded capabilities and/or partnerships that allow them to compete with the Qualcomm/Verizon offering.

A Qualcomm/Verizon joint venture should awaken the ERP vendors Oracle and SAP to the M2M space. While the ERP duopoly is tangentially involved in the M2M space, to describe their commitment to the space as "committed" would be disingenuous. It's a reasonable assumption that a Qualcomm/Verizon venture should secure the attention of the C-suite at the ERP vendors and, as such, drive ERP vendors to reconsider M2M as an area of resource investment.

Qualcomm's Steve Pazol will lead the joint venture. Mr. Pazol joined Qualcomm when his firm nPhase was acquired in November of 2006. In the time between the nPhase acquisition and yesterday's announcement, Qualcomm's M2M offering has maintained nimbleness that mirrors the performance of nPhase predating the acquisition. Qualcomm's M2M clients span vertical industries from Medical Devices to industrial equipment to discrete manufactures. The smooth integration of nPhase capabilities into the Qualcomm product portfolio is unquestionable.

The Qualcomm / Verizon announcement will energize the M2M market in many ways. In the coming months we will closely monitor the development of partnerships and new alliances of vendors spanning the M2M ecosystem. These alliances will allow M2M vendors to compete with an offering that — minus a proven wired M2M approach — offers the closest thing to a one-stop complete M2M supplier.

Keywords

Qualcomm, Verizon, M2M, Remote Services, Wireless

M2M Connected World — Has An Agenda Emerged?

Thu, 09 Jul 2009 12:53:00 +0000

Entry by Benjamin Friedman

Entry

I recently attended the M2M Connected World industry event. In years past, this event was defined by the unequal representation of vendors and end-users, the vendors presenting compelling and competing technologies to one another — certainly not atypical of an emerging market. This year’s attendance (estimated at 500) was decidedly geared toward end-users considering the technology as a vehicle for solving important business challenges.

The evolution of the show’s structure and content demonstrated the continued maturation of a technology segment that Manufacturing Insights anticipates will grow. This segment’s near-term growth will be a result of initiatives such as the U.S. government’s ARRA mandate and increasing requirements for companies to deliver higher levels of service with fewer resources. These factors will likely force product and service companies to seek alternative manners for providing service and support, while potentially creating new revenue streams.

To harness current opportunities, M2M vendors must elevate their technology’s value proposition to system integrators such as IBM, HP/EDS, and CSC — the most likely participants in the type of projects mandated by ARRA that may exploit M2M technology. M2M vendors and the market’s current ecosystem currently lack the leverage required to secure these opportunities alone.

Notwithstanding the absence of system integration firms at M2M Connected World, the show’s organizers and presenters stuck to the timely themes of Smart Grid technologies in the energy sector, telematics in the automotive and off-road vehicle space, and efficient power and resource management in the building automation segment. M2M vendors and end-users attending this event benefited from a well-structured agenda that aligned well with macroeconomic forces likely to impact both communities.

End-users ranging from municipal governments to off-road vehicle OEMs presented use cases in which M2M technologies provided visibility into asset performance. The use cases presented were production environments that offered actionable takeaways for attendees. Mercifully, academic dissertation on pilot programs and one-off deployments were left off the show’s agenda.

The City of Chicago demonstrated that its vehicle fleet’s use of GPS had allowed more efficient allocation of the city’s wide array of mobile assets. This use case is instructive for manufacturers that maintain rolling service fleets: they can achieve similar fleet efficiencies. AGCO, a manufacturer of farm and off-road vehicles, demonstrated how M2M derived data were used across the corporation to facilitate evidence-based visibility into efficiencies and deficiencies of its full product life cycle.

AGCO presented a compelling presentation that articulated the benefits the company had realized since its adoption of M2M technologies. More specifically, the company outlined how M2M data had assisted the global enterprise in repurposing human and capital assets in a challenging economic period. The company’s use of data derived from telematics demonstrated an evolution of how M2M data can be used by companies with complex product lines. AGCO spoke to the established telematics themes of job fencing and triangulation, but extended the narrative to include less obvious uses of M2M data, such as for verifying or refuting warranty claims.

Although the M2M segment has matured in areas, the space continues to lack a cohesive and consistent theme concerning data and enterprise-wide engagement. Instances of leveraged M2M data were addressed (for example, by AGCO), but the segment has not yet achieved enterprise-level penetration adequate for moving it into the realm of CRM or ERP.

The M2M space has crossed the first chasm and elevated the discussion beyond technical wizardry, and now the players and boosters of the M2M space need to include enterprise players in the M2M value discussion. Certainly, the development of partnerships between M2M vendor Axeda and Oracle offers a suggestion of enterprise vendor involvement. Nevertheless, Oracle and SAP have offerings in service and asset management, so M2M vendors would be well served to engage the duopoly and socialize synergies between their technologies and ERP vendor offerings.

Moving forward, M2M market growth will be accelerated less by the entities present at this year’s event and more by those not in attendance. Manufacturing Insights believes that M2M technologies will be central elements in the success of current and future wide-reaching initiatives, and formalized partnerships with ERP vendors and system integrators will assure that M2M vendors and their supporting ecosystem will get a share of the opportunities ahead.

So what do you think, what will drive this segment forward? Is the M2M market's inflection point commitment from ERP vendors or System Integrators, or a combination of the two?

Regarding the M2M Connected World Event, what themes have resonated with you?

Keywords

M2M, Axeda, Oracle, SAP, Remote Services, Smart Services, Stimulus Package, IBM, CSC, Deloitte, HP/EDS, CSC