Best practices for bridging the physical and digital worlds of the … · 2017-10-07 · SAP...

SAP Thought Leadership PaperInternet of Things

Connecting the Internet of Things Best practices for bridging the physical and digital worlds of the Internet of Things

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Table of Contents

4 The Path to the IoT

5 Managing IoT Sprawl

6 Use Case for IoT in Transportation

7 Eight Must-Ask IoT Connectivity Questions

11 Reducing Complexity with IoT Solutions from SAP Digital Interconnect

12 Realizing Time to Value Quickly

© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Connecting the Internet of Things

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A Rapidly Growing Internet of Things

What do shopping lists, washing machines, and sports cars have in common? The Internet of Things (IoT). Our world is becoming more interconnected every day, as the IoT is linking billions of devices and automating processes. By 2020 as many as 20.8 billion items will be connected, and most major business processes and systems will incorporate some element of the IoT.

With so many things, devices, and objects connecting to the IoT, enterprises need to find the most reliable, cost-effective path to IoT interconnectivity.



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The IoT holds incredible opportunities for businesses, their partners, and end users, and much of its promise hinges on connections that exchange data and automate processes without human intervention. Cellular connectivity plays a key role with nomadic devices enabling a wide range of IoT technology.

By 2020 approximately 252 million healthcare devices will record patients’ respiration, blood pressure, and other vital signs. On our highways, 965 million automotive devices will collect infor-mation about vehicle maintenance, the nearest gas stations, traffic, and even pedestrians entering walkways. Smart city devices, the number of which is expected to reach 7.5 billion, will monitor water systems, traffic congestion, sidewalk damage, and pollution.

The Path to the IoT

Connectivity among people, machines, and things is increasing exponentially. Enabling communications among billions of people and things represents a tremendous opportunity.



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Looking at these statistics, it’s easy to see that the IoT will coordinate, control, and manage many areas of our lives. Furthermore, these statistics only refer to the connected devices, and we must also consider the full scope of the IoT ecosystem. This includes connectivity, data, applications, operators, equipment manufacturers, network infrastructure, provisioning, and management, and the list will continue to grow.

Without an IoT strategy, an enterprise can quickly get overwhelmed by a sprawl of things that need to be provisioned, managed, and connected, and data that must be secured and transmitted reliably. Enterprises face the following challenges:

• Deployments often require multiple mobile network operators

• Connected things and data must be kept secure

• Data must be transferred on reliable, highly available networks

• IoT environments grow so fast that the enterprise is unable to manage connections, traffic, and infrastructure

Managing IoT Sprawl

The IoT will coordinate, control, and manage many areas of our lives, and the number of areas will continue to grow.



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Conveniently, since the global company has trucks in North America, Asia, and Europe, it can easily track the vehicles as they move from country to country or different regions. No matter where they roam, the company continues to collect data.

This scenario can apply to shipping containers, remote mechanical and control systems, and almost every type of consumer and business product. Companies that recognize the potential of IoT and have a clear, strong IoT strategy are on track to separate themselves as leaders in their industries and the digital economy.

Let’s look at how a trucking service could leverage IoT technology. The global transportation provider embeds subscriber identity module (SIM) connected sensors in all of its vehicles, and the sensors capture usage, performance, and environmental data.

The collected measurements provide a full view of what’s happening with the vehicle. When the tires, engine, or other parts need maintenance or repairs, a technician and the necessary parts are sent to the trucking company. The technician can then fix any problems before the vehicle goes out of commission, costing time and possibly the loss of an asset.

Use Case for IoT in Transportation

IoT technology can help simplify processes, streamline operations, and optimize supply chain relationships and product and service delivery.



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When researching IoT solutions and defining an IoT strategy, you will want to make sure that you can easily answer these eight questions. Knowing these answers will help you find an IoT solution provider that can meet your business require-ments and adapt to your current—and future—business needs.

ARE YOU PREPARED TO SCALE?Your IoT ecosystem will continually grow—creating more things, more sensors, more gateways, more operator connections and contracts, and more IoT applications to manage. Investing in short-term solutions that do not scale has prevented enterprises from meeting their future business needs. For these organizations, lack of scalability has caused significant disappointment and caused them to fall behind their competition.

Addressing scalability issues early ensures that as your IoT deployment expands:

• All IoT devices and their SIMs will automatically and reliably connect to the best mobile network, based on location, usage, subscription, and roaming agreements. Connected things will easily select and switch between networks to ensure the best connectivity and roaming profile

• Operator changes, such a new ownership, tariff plans, coverage, feature sets, and network technology, never impact IoT connectivity

• Provisioning and managing SIM cards is easy and reliable

• Operations stay flexible without compromising security

• Usage needs and changing demands will not cause huge price increases

HOW WILL YOU MANAGE OPERATOR CONTRACTS AND CONNECTIONS?IoT solutions that minimize management require-ments enable enterprises to focus on their core business. Negotiating and managing operator contracts, for example, is extremely complicated and time-consuming, especially for regional and global deployments that involve multiple geographies and operators. Consider a washing machine manufacturer that sells products in Germany, China, Russia, and the United States. Or, an automobile manufacturer that must track vehicle data when its cars move from Spain to France to Portugal. These manufacturers will need to access data and reach connected things that are aggregated and provisioned across multiple mobile network operators.

You will want to have an IoT solution that reduces these complexities by connecting all the IoT devices to the most cost-effective operator with the most robust network. Beyond connectivity, you need a provider that manages all the operator contracts. In addition, you will need to consider the APIs for connectivity. IoT solutions that offer a single Web service API for device and application management will simplify integration of the management of the full lifecycle of your connected devices. Access through a Web service gives you maximum flexibility in your choice of IT environment and application deployments.

Eight Must-Ask IoT Connectivity Questions



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SIM cards and sensors are another management concern. A consumer goods manufacturer could have as many as 1 million SIMs deployed in its products around the globe. To reach this scale, the manufacturer should look for an IoT platform that simplifies management to a single, consistent SIM for all networks and the life of the connected thing. A single connection for global connectivity, a single provider to manage all networks, and a single system to monitor the inventory and location of all SIMs and things will greatly reduce com-plexity. Again, the size of the IoT ecosystem and its management requirements get exponentially bigger and more complicated. Every industry should consider a platform that simplifies and eases the burden of managing and supporting the inevitable sprawl that the IoT will create.

IS THE LAST MILE OF THE IOT ROCK-SOLID RELIABLE?The last mile, or the distance from sensor to operator network, is often the most difficult for enterprises. You will need to be confident that your business has a reliable, secure last mile. A private, carrier-grade infrastructure with network-based firewall protection and guaranteed quality of service ensures that your connected things are secure and data travels safely and reliably on every communication.

CAN YOUR IOT ECOSYSTEM CONNECT TO DISPARATE NETWORKS?Enterprises are connecting to the IoT over many types of networks, including mesh networks like Zigbee and Z-Wave, Internet networks such as Wi-Fi, and mobile networks such as 3G, 4G, and

5G. Successful companies must be able to interop-erate with all these networks to be truly connected to the IoT or they risk becoming isolated and limited by their connectivity options. If you have multiple things to connect and monitor globally, you need a solution that supports ubiqui-tous connectivity. Mobile solutions use established SIM technology inserted or embedded into the connected things, and mobile networks are pervasive.

Additionally, mobile networks have the long-range ability to connect globally, and vast portions of the globe already have strong reliable cellular coverage. IoT objects can also connect to networks using satellite technology, further eliminating barriers to connectivity in even remote areas.

For global deployments, connectivity is a critical concern. Communications need to cross disparate networks and support data transfers from regions both near and far. An interoperable solution that connects to multiple networks is essential. To ensure that the deployment can reach the different regions, the IoT solution must have a global foot-print with extensive range and reach. Other considerations are the number and quality of roaming partners; the available direct connections to global networks and cost to connect; and the existing local, national, and international relation-ships to promote successful business partnerships.



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CAN YOUR NETWORK AFFORDABLY HANDLE ADDITIONAL TRAFFIC?IoT ecosystems significantly increase the number of network connections and the amount of traffic and data. Realistically, enterprise networks cannot support the increased data from an IoT deployment, and they do not have staff or the expertise to manage the operator contracts, prevent security risks, and monitor the additional traffic.

In terms of new traffic, sensors can send short bursts of data every few minutes, for example, or large amounts of data hourly or daily, depending on the use case. Similarly, sensors can remain dormant for long periods of time and send small amounts of data infrequently. SMS is an enabling technology that transfers both large and small loads of data.

Enterprises need connections and rate plans that are favorable to their use cases. Even within a single enterprise, use cases may require a slightly different rate plan, connected thing, or analytics platform. Look for a solution and a partner that locates the operator with the ideal coverage and best plans, and can connect across any number of disparate networks. This partner should take on the responsibility of managing all the network contracts and negotiating the best possible rates. Enterprises will want global connectivity at local prices plus on-staff experts who have established relationships with regional operators and under-stand the regions’ tariffs and regulations.

WHAT IS YOUR SECURITY AND DATA PROTECTION PLAN?IoT attacks are predicted to increase as more things join the IoT, and the attacks are expected to become more sophisticated and more prevalent.

With a rise in IoT attacks, enterprises must be more vigilant about the confidential and sensitive data that they collect over the IoT. Anything from a customer address to the location of a company’s physical assets could pose a danger if they fall into the wrong hands. Another equally important security risk is data accuracy. In automated sys-tems, a single measurement or word can trigger multiple actions and responses. A utility company, for example, could cut off power or water to a segment of its customers based on a hacked communication. Enterprises must be confident that the incoming data has not been maliciously compromised, altered, or falsified.

A legion of vulnerable things married with unprotected data leaves an enterprise incredibly exposed. To secure the IoT environment, enter-prises can avoid the uncontrolled Internet and move traffic onto a protected network. A private, carrier-grade cloud infrastructure provides a quality of service not available over the Internet, and the secure transfer of data. Similar to any WAN or LAN, network-based firewalls prevent the intrusion of malicious traffic and abuse. Hardened SIMs and encrypted data provide additional protection. In contrast to localized IoT deploy-ments, a secure network connects disparate operator networks so that the enterprise can have secure data transfers across regions and nations worldwide.



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CAN YOU SUPPORT A GLOBAL IOT STRATEGY?Partnering with a global provider helps enterprises enter new markets and opens unexpected business channels. Global companies work with technology and market leaders across the world and have a global customer service team that is able to respond 24x7.

Rarely can a company provide knowledge at a local level and global expertise and partnership opportunities. Global leaders can and do. Local teams understand each country’s regulations and laws, plus they can tap into their global reach and connect with different operators international-ly. Global leaders can introduce partners, share current market leadership strategies, and provide both local and global representation.

CAN YOU INTEGRATE CONNECTIVITY MANAGE-MENT ACROSS ANY TYPE OF ENVIRONMENT?The ability to closely integrate connectivity management with manufacturing processes and applications using this connectivity is critical to ensuring efficient and secure workflows. RESTful APIs allow OEM systems to maintain control of a device’s connectivity throughout its lifecycle, without the need for physical intervention.

The OEM can monitor the data usage of all devices (including those in subaccounts) in real time, and enforce usage policies to prevent fraudulent behavior. The manufacturer can update mobile subscriptions operating on devices as locations change or new tariffs become available from other operators. You can also alter device usage limits in real time and suspend or reactivate a device through the API as required.

Global leaders can provide knowledge at a local level and expertise and partnership at a global level.



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SAP IoT Connect 365 helps ensure that IoT projects are manageable and streamlined by providing:

• Simple and secure connectivity • One SIM for all networks and for the life of the connected thing

• A single provider for global connectivity • A unified management platform for all networks • Simple integration for all functionality through a RESTful Web-services API

The SAP® IoT Connect 365 mobile service connects any object or thing that can be monitored or controlled from a remote location to your enter-prise. As a managed, cloud-based mobile service, SAP IoT Connect 365 simplifies the connectivity of the IoT with a single contract, connection, and interface. It provides a well-connected, cost-efficient, and secure environment that enables enterprises to easily and consistently deploy, access, control, and monitor interconnectivity worldwide between their connected objects and business systems and applications.

Reducing Complexity with IoT Solutions from SAP Digital Interconnect

SAP IoT Connect 365 simplifies the connectivity of the IoT with a single contract, connection, and interface.



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CASE STUDY: INDUSTRIAL MANUFACTURER GAINS GLOBAL IOT CONNECTIVITY

In Europe, a global industrial machinery company is deploying the enterprise service for the SAP® IoT Connect 365 mobile service to connect its drills and heavy equipment to the Internet of Things. The company is embedding SIMs into its popular line of drill products, as well as other heavy equipment that customers use on their construction sites. When customers purchase or lease the equipment, the network connection is initiated and the SAP Digital Interconnect group provisions the SIM, which begins capturing a range of data about the equipment, such as usage time, vibration, speed, and temperature.

When the equipment moves from a site in Belgium to a site in Austria, the company continues to track usage and collect data without interruption. The data travels reliably and securely across multiple networks and is collected on a cloud-based platform managed by the SAP Digital Interconnect group. Data transfer isn’t the only task that SAP Digital Interconnect handles. SAP Digital Interconnect also manages all network contracts and negotiates best rates and roaming agreements. To keep the manufacturer safe and secure, SAP Digital Interconnect also protects the communications and prevents them from being falsified.

With SAP solutions already deployed throughout the company, this market leader knew SAP Digital Interconnect was the best provider to support its global IoT strategy.

SAP IoT Connect 365 is part of a suite of IoT solutions offered by the SAP Digital Interconnect group. Formerly SAP Mobile Services, SAP Digital Interconnect provides cloud-based engagement services and programmable digital interfaces that enable enterprises to connect the “last mile” with their customers. Our interconnection services help operators worldwide to simplify and optimize connectivity, monetize messaging services, and reduce network costs without additional capital expenditure. In addition, SAP operates one of the world’s largest, most reliable cloud messaging networks.

With many IoT projects taking up to twice as long as planned, it is critical to reduce complexity. Solutions such as SAP IoT Connect 365 help businesses launch new IoT services faster and easily expand services to realize time to value more quickly. In this way, you can avoid the potholes on the road to IoT.

Realizing Time to Value Quickly



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LEARN MOREIf you have other questions about connecting to the IoT, we can help you find answers. The SAP Digital Interconnect group: • Connects with more than 1,000 operators • Reaches 220 countries and territories • Processes tens of billions of messages monthly • Engages with more than 500 enterprise customers • Supports in excess of 500 operators over Internet

packet exchange (IPX) • Touches 7.3 billion mobile subscribers • Enables faster go-to-market times at lower cost • Extends to existing SAP® platforms and offerings • Reduces operational expenses with cloud-based services

For more details about how SAP Digital Interconnect can help transform your business and improve customer experiences in the digital economy, please contact us at [email protected] or visit us on the Web at http://www.sap.com/digital-interconnect or https://www.sap.com/products/enterprise-iot-connect.html.

To learn more about intelligent and interconnected mobile engagements, join the SAP Mobile Services Community at https://community.sapmobileservices.com/ and follow us on Twitter at @SAPInterconnect.

Mobile-connected devices are expected to reach 10.5 billion by 2020.1

1. GSM Association.


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