M2M ROI and Business Case from Enterprise Perspective

M2M Business Case

Generally speaking, the Mobile Network Operators (MNO) had not been terribly excited about Machine to Machine (M2M) communications until a few years ago.  That has changed in a big way, as M2M is on the short list of key lines of business for every major MNO.  The important questions are:

  • How can a MNO grow revenues while optimizing profits in M2M?
  • What is the business case for M2M for various industry verticals?
  • What aspect of M2M should be outsourced to managed service providers?
  • How do grow the M2M business in a way that is manageable, leverages important MNO assets, and maintains control?

M2M services are a key part of every successful enterprise strategy to improve business processes, increase productivity, and cut costs through automated operations and processes. It empowers managers with greater awareness and insight into business and systems operations.

The M2M value chain is complex and comprises of multiple stake holders. Different analysts depict slightly different value chain than depicted herewith. However, the basic building blocks remain the same. This is because a single vendor can sometime cater to multiple aspects of value chain. In many situations an M2M application may involve four or five different vendors.

M2M Value Chain

M2M Value Chain

Telecom carriers have two choices to make; provide just the connectivity for M2M devices and continue being a silent player in the value chain. This is exactly the case with data and content delivery where carriers have been reduced to dumb delivery pipe or provider of last mile facilities. The other option is to spread their service offerings across M2M value chain to grasp larger portion of the pie.

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About Mind Commerce

Analysis of telecom and ICT infrastructure, technologies, and applications.
This entry was posted in Internet of Things, M2M, Managed Services, Telecom Strategy and Planning, Wireless Carriers. Bookmark the permalink.

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