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 Page 2
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
© Experton Group AG Page 3
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).
© Experton Group AG Page 4
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
I4.0/IoT Consulting & System Integration
Automotive Sector
I4.0/IoT Consulting & System Integration
Transportation & Logistics
I4.0 Analytics
Figure 1: Overall ranking of Deutsche Telekom within the individual market categories
Source: Experton Group, 2015
© Experton Group AG Page 5
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)
© Experton Group AG Page 6
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)
© Experton Group AG Page 7
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
Source: Experton Group, 2015
© Experton Group AG Page 8
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
Source: Experton Group, 2015
© Experton Group AG Page 9
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
© Experton Group AG Page 10
Figure 7: Evolution of I4.0/IoT use cases of Deutsche Telekom
Source: Experton Group, 2015
© Experton Group AG Page 11
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
© Experton Group AG Page 12
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
© Experton Group AG Page 13
Figure 10: Benchmarked providers within the consulting & system integration category – automotive sector
Figure 11: Benchmarked providers within the consulting & system integration category – transportation & logistics
© Experton Group AG Page 14
Figure 12: Benchmarked IoT platform providers
Figure 13: Benchmarked vendors of industrial big data analytics
© Experton Group AG Page 15
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
© Experton Group AG Page 16
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
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