Telecom operators have a tremendous opportunity to play a leading role in the rapidly developing Internet of Things (IoT), but to do so they will have to evolve beyond merely providing connectivity, according to Ericsson.
To help this happen, the company has launched Ericsson IoT Transformation - a new professional services offering designed to help operators make the most of their existing network and data assets. After completing a ‘transformation journey’, operators will be equipped to rapidly reach new customers, capture revenues beyond connectivity, and monetise assets ranging from apps to data.
Ericsson forecasts that the number of IoT connected devices globally will more than triple from under 5 billion today to 15 billion by 2021. A recent IDC study predicts that global IoT spending will reach USD 1.3 trillion by 2019 and the McKinsey Global Institute concludes that the IoT will have a potential annual economic impact of up to USD 11 trillion by 2025.
To help operators make the most of the IoT's vast potential, Ericsson offers a set of professional services and a modular IoT solution. The services include:
- go-to-market strategy definition, process re-engineering and organisational business consultancy
- device and application verifications
- enterprise onboarding, solution integration and customisation
- application development and maintenance
- operations and field services.
Ericsson’s scalable IoT solution consists of secure, tried-and-tested software components that are already being used by customers around the world. These include its Evolved Packet Core, Service Enablement Platform, Device Connection Platform, Ericsson Expert Analytics and enterprise billing and settlement solutions, standardised APIs and industrialised or customer-specific applications as required.
Jean-Philippe Poirault, Head of Consulting & Systems Integration at Ericsson, said: "The emerging IoT - part of the Networked Society we have spoken about for many years - represents a very significant opportunity. By providing connectivity, operators can address approximately 15% of the potential revenues on offer.
“But they can do more. We would like to help operators move higher up in the value chain to become IoT service enablers and service creators. They have the assets required to do so, and we have the capabilities and the expertise required to help them complete the necessary transformation."
The IoT revolution is creating new business ecosystems that are more complex and interdependent than ever before. As a result, Ericsson believes that operators will not succeed in implementing their IoT strategies if they focus only on the technologies or solutions required.
Instead, a transformation of this type requires that operators carefully define their target operating model and consider the implications for both their own business processes and structures and their customers.