Industrie 4.0 / Internet of Things Vendor Benchmark 2016 ...€¦ · Both Industrie 4.0 / Industry...

Industrie 4.0 / Internet of Things Vendor Benchmark 2016 Comparison of Vendors for Germany

I4.0 / IoT Vendor Report

White Paper based on the Results of the I4.0 / IoT Vendor Benchmark 2016 for

Deutsche Telekom AG

Authors:

Arnold Vogt, Dr. Henning Dransfeld, Dr. Michael Weiß and Holm Landrock

© Experton Group AG

Preface

Both Industrie 4.0 / Industry 4.0 and the Internet of Things address the same dynamics of

change, i.e., the increasing connectivity and automation of devices, machines and products,

but have a different focus. Industry 4.0 (I4.0) has a basic focus on the production process

within a "smart factory", while the Internet of Things (IoT) focuses on the utilization phase

of digitized and connected devices and products. Both terms have emerged during the last

couple of years and have caused a real hype, but more important than such fashionable

terms is the understanding of underlying change dynamics. I4.0 and the IoT represent the

next steps of evolution towards autonomous processes, based on a long-term development

which has started many years ago.

Predecessors of I4.0 & IoT include M2M. M2M, i.e., machine-to-machine communications,

started with the interconnection of individual devices and has reached a new level of

maturity through the cloud-based collective interconnection of devices; not surprisingly,

considering this long-term development, some companies have been intensively involved

with these topics and have built up respective expertise, and Deutsche Telekom is one of

these pioneers.

Deutsche Telekom has many years of experience with key basic IoT technologies such as

connectivity and cloud computing and also comprehensive competences regarding complex

M2M/IoT integration projects for their customers. Based on these strengths, Deutsche

Telekom was able to achieve an outstanding and excellent position within Experton Group’s

I4.0/IoT Vendor Benchmark 2016.

Kassel, March 2016

Arnold Vogt

Lead Advisor I4.0 & IoT


Current Market Developments

Key results of the first I4.0/IoT Vendor Benchmark 2016 in Germany include the following:

• I4.0 has a basic focus on the production process within a "smart factory", while the IoT

focuses on the utilization phase of digitized and connected devices and products.

• The I4.0/IoT market is still in its infancy. Market segmentation is difficult, because

solution vendors (HW & SW) and service providers (consulting houses & system

integrators) strongly overlap; there are many partial solutions and demand for

consulting is high.

• As of today, users are pursuing a bottom-up approach out of their respective lines of

business (production, logistics, customer service) to look for full-service providers to

digitize individual steps of their value chain. In the future, they will increasingly pursue

strategic top-down approaches.

• Solution vendors and system integrators have built up partner networks to be able to

offer complete solutions and position themselves as full-service providers.

• Many small IoT platforms have evolved, which are used by the vendors themselves in

their role as full-service providers and/or are offered to other full-service providers.

• According to Experton Group estimates, hundreds of IoT platforms are already

available today worldwide, and in 2016, additional renowned providers will enter this

market, with a first consolidation wave to be expected as early as 2017.

• In the future, most vendors will act as full-service providers that implement customized

solutions, based on standard platforms (rather than their own platforms).


Overall Ranking: Deutsche Telekom’s Position in the I4.0/IoT Vendor Benchmark

2016

Within the first edition of the I4.0/IoT Vendor Benchmark 2016, Deutsche Telekom was

evaluated in the following five categories:

IoT Platforms

Industrial Big Data Analytics

I4.0/IoT Consulting & System Integration – Machine & Plant Engineering

I4.0/IoT Consulting & System Integration – Automotive Industry

I4.0/IoT Consulting & System Integration – Transportation & Logistics

Deutsche Telekom provides an enormously broad I4.0/IoT portfolio and was even able to

achieve a position in the leader quadrant of all of the five categories.

Market Categories

Industrie 4.0 / Internet of Things

Ranking

Deutsche Telekom

IoT Platforms

I4.0/IoT Consulting & System Integration

Machine & Plant Engineering


Automotive Sector


Transportation & Logistics

I4.0 Analytics

Figure 1: Overall ranking of Deutsche Telekom within the individual market categories

Source: Experton Group, 2015


Deutsche Telekom’s broad IoT/I4.0 portfolio

Deutsche Telekom designs, transforms and operates digital solutions based on its mission

“Digitization. Simply. Make it Happen”. The vendor provides customers an easy entry into the

digitization topic, based on a highly standardized approach, and supports them on their digital

journey, from design to transformation and operations.

Design of IoT/I4.0 solutions

Deutsche Telekom helps customers design new, more agile business processes and digital

business models. These services are based on the vendor’s broad industry-specific know-how

and standardized starter and pilot packages, including preconfigured dashboards and

integrated connectivity. Deutsche Telekom also provides IoT consulting packages to help

customers develop digital business models or a digital strategy.

Transformation and operations of IoT/I4.0 solutions

In many cases, existing ICT landscapes must be restructured and migrated during the

transformation to support, for instance, new online business models. Deutsche Telekom, as a

long-term and trusted IoT and I4.0 partner, supports its customers during this transformation

and operations phase. For example, through comprehensive integration and managed IoT

services across the complete IoT stack, including specific hardware such as sensors or tracking

devices. Depending on customers’ individual requirements – such as regional focus or data

criticality – Deutsche Telekom’s multi-IoT service platform provides multiple standard

technology and infrastructure settings to support their respective IoT solution.

Figure 2: Digital customer journey (Source: Deutsche Telekom)


End-to-end modules for IoT/I4.0

Deutsche Telekom’s IoT/I4.0 offering has a modular structure and was designed as end-to-end

service with centralized contract and service management across all components and

partners, based on the “one-stop shop” principle.

The degree of standardization of IoT/I4.0 solutions is increasing rapidly. Deutsche Telekom

has already developed first standardized use cases:

Condition monitoring: for instance, for the real-time check of devices and machines for

remote maintenance purposes;

Predictive maintenance: for instance, for automated real-time notification on whether

and when repairs are required for devices and machines;

Mobile asset management: for instance, for fleet management control or to receive

connected real-time pictures of the current situation on parking and movement spaces

to optimize driving and parking times.

Strategic concepts: Deutsche Telekom’s consulting packages have been designed to

help customers develop digital business models and strategies, for instance, to build

up decentralized production and logistics processes, provide point-of-sale solutions or

ensure the fast, customized production of trend products.

Figure 3: End-to-End Offer modular services for Iot/I 4.0 (Source: Deutsche Telekom)


I4.0 and IoT Use Cases – Today and Tomorrow

Most customers pursue a I4.0/IoT bottom-up, rather than a top-down approach, with an

interest on concrete use cases to optimize individual steps of the value chain (production,

logistics or customer service). Experton Group has examined two aspects – the question as to

what a maturity model for I4.0/IoT use cases could look like, and where most current use cases

would be positioned within this maturity model.

A maturity model must be able to show long-term developments in individual development

steps. An examination of current I4.0/IoT topics shows that these two terms are closely related

to and interwoven with two other long-term developments: automation and

interconnectivity. Therefore, the increasing automation, from measuring and control to the

operations of autonomous systems, can be used as one dimension of a maturity model.

Remote

monitoring

through operator

and/or service staff (without

remote control)

Remote

monitoring and

control through

operator and/or service staff (2-

way

communications)

Increasingly

automated

remote

monitoring and control to

increase

efficiency

Self-learning

systems are

increasingly

taking over operational,

diagnostic,

service and

coordination

tasks

MonitoringMonitoring &

Control

Automated

Optimization

Autonomous

Systems

Degree of Automation (Driver: Digitization)

Figure 4: Value creation through increasing automation – towards integrated processes



The other dimension, increasing interconnectivity of machines, products and things could be

used, from an individual to a collective level (e.g. in machine parks) towards completely

networked and integrated processes. Process integration includes everything from purely

vertical production or customer service processes to integration of all horizontal processes.

If you lay both dimensions on top of each other, you will have a maturity model for I4.0/IoT

use cases that maps the increased value through increased automation and interconnectivity.

Evolution goes from simple device monitoring on the individual device level (bottom left in

the picture) to completely autonomous processes (top right).

Many-to-Many:

Connecting machine data to processes allows for the integrated

usage of machine data in various processes (ERP, PLM, CRM) and

new areas of application

One-to-Many:

Digitized and networked machine parks allow for the collective

usage of machine data to monitor, control and optimize all devices

(swarm intelligence)

One-to-One:

Digitized and networked devices allow for the individual usage of

machine data to monitor, control and optimize individual devices

Pro

ce

ss

Le

ve

lF

lee

t L

eve

lD

evic

e

Le

ve

l

De

gre

e o

f C

onne

cte

dne

ss (

Dri

ve

r:

Se

nso

rs

Figure 5: Value creation through increasing connectivity – towards integrated processes



In a next step, a variety of use cases that are currently discussed within the I4.0/IoT context

was collected to determine their current maturity level. As a result, we discern that all use

cases are still in an early maturity stage and practically all have to do with device monitoring.

The use cases of Deutsche Telekom illustrated in the figure below – condition monitoring,

predictive maintenance and mobile asset management – represent the next evolutionary step

within the maturity model. While Deutsche Telekom has obviously made good progress with

the standardization of more complex I4.0/IoT use cases, there is also no doubt that the largest

part of the development curve is still ahead of us. Evolution towards autonomous processes

will still take some more time.

Process

Monitoring

Process

Monitoring &

Control

Automated

Process

Optimization

Autonomous

Processes

Fleet

Monitoring

Fleet

Monitoring &

Control

Automated

Fleet

Optimization

Autonomous

Fleet

Device

Monitoring

Device

Monitoring &

Control

Automated

Device

Optimization

Autonomous

Devices

Pro

ce

ss

Le

ve

lF

lee

t L

eve

lD

evic

e

Le

ve

l

De

gre

e o

f C

onne

cte

dne

ss (

Dri

ve

r: S

enso

rs

Degree of Automation (Driver: Digitization)

Figure 6: Maturity model for I4.0/IoT use cases

Source:Experton Group, 2015


Figure 7: Evolution of I4.0/IoT use cases of Deutsche Telekom



APPENDIX

Experton I4.0 / IoT Vendor Benchmark 2016

This is Experton Group’s first benchmark that analyzes the German I4.0/IoT market, based on

six categories. The results gained on relevant vendors were published within a comprehensive

study, including key trends and respective Market Insight quadrants for the individual

categories.

The I4.0/IoT Vendor Benchmark is the result of intensive market observation, which helps us

to compare user requirements with comprehensive vendor portfolios, which are analyzed and

evaluated accordingly. These analyses are based on the "Experton Group Market Insight"

methodology developed by Experton Group. This validated and internationally acknowledged

methodology serves as basis for the evaluation and positioning of the individual vendors. The

charts for the individual quadrants contain the output of our analysis with respect to the

portfolio attractiveness and the competitive strength of the benchmarked vendors.

Each subcategory is further differentiated by various elements. For each vendor, a detailed

scoring based on 10 key and additional secondary criteria is provided for each product

category. Altogether, about 100 items are analyzed. These criteria are weighted, based on the

respective product category, resulting in an assessment of the individual offering’s

Figure 8: Relevant analysis and evaluation aspects


attractiveness (“portfolio attractiveness”) and the strength of the individual vendor

(“competitive strength”).

Figure 9: Benchmarked providers within the consulting & system integration category – machine & plant engineering


Figure 10: Benchmarked providers within the consulting & system integration category – automotive sector

Figure 11: Benchmarked providers within the consulting & system integration category – transportation & logistics


Figure 12: Benchmarked IoT platform providers

Figure 13: Benchmarked vendors of industrial big data analytics


About Deutsche Telekom

Deutsche Telekom is one of the world's leading integrated telecommunications companies,

with some 156 million mobile customers, 29 million fixed-network lines, and more than 18

million broadband lines. The group provides fixed-network/broadband, mobile

communications, Internet, and IPTV products and services for consumers, and information

and communication technology (ICT) solutions for business and corporate customers.

Deutsche Telekom has presences in more than 50 countries. With a staff of some 225,200

employees throughout the world, the company generated revenue of 69.2 billion Euros in the

2015 financial year, about 64 percent of it outside Germany. For Deutsche Telekom, the

business customer segment in Europe is a strategic area of growth. Together with T-Systems,

Deutsche Telekom’s daughter company for the large accounts segment, Deutsche Telekom

provides small and medium businesses as well as multinational corporations ICT solutions for

an increasingly complex digital world. The core offering comprises cloud-based services, M2M

and security solutions, additional mobile and fixed-line communications products, solutions

for virtual collaboration and IT platforms, which serve as basis for customers’ digital business

models.

About T-Systems

T-Systems is one of the world’s leading providers of information and communications

technology (ICT). T-Systems offers a range of integrated solutions for business customers,

based on global fixed-line and mobile offerings, highly secure data centers, a unique cloud

ecosystem consisting of standardized platforms and global partnerships, combined with

highest security levels – upon the customer’s request in compliance with strict German privacy

regulations. With a footprint in more than 20 countries, 46,000 employees, and external

revenues of 7.1 billion Euros (2015), T-Systems acts a digital transformation partner for their

customers. The portfolio comprises traditional cloud-based services, tailored infrastructure,

platforms and software from the cloud as well as innovation projects for the business fields of


the future, such as big data, the Internet of Things, machine-to-machine (M2M)

communication or Industrie 4.0.

About Experton Group

Experton Group is a leading IT research, advisory and consulting company. The company has

30 experienced analysts in Europe who support mid-sized and large organizations with their

IT strategic planning and implementation. In Germany, Experton Group has offices in Munich

and Kassel. Additional information on our research can be found under:

http://experton-group.de

http://blog.experton-group.de/

https://twitter.com/ExpertonGroup

Industrie 4.0 / Internet of Things Vendor Benchmark 2016 ...€¦ · Both Industrie 4.0 / Industry...

Documents

Transcript of Industrie 4.0 / Internet of Things Vendor Benchmark 2016 ...€¦ · Both Industrie 4.0 / Industry...