M2M Smart Services

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M2M Smart Services
Presented by Lisa Sanders Wavecom Steve
Pazol nPhase, a QUALCOMM business
1045 a.m. 1125 a.m. River Room AB
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M2M Communication -- no longer a Tomorrows
story Presented by Lisa Ann Sanders Wavecom
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2002 Market estimates European M2M installed base
versus Mobile phones 2002 Estimates

• Market size estimates were grossly
  overestimated in the past

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Worldwide Volumes by Segment (K Units)
CAGR 27,5 36,5 26,6
44,757
34,054
25,944
19,750
15,410
11,477
8,750

• Scenario steady-state volume progression.
• We have a better accuracy after SE acquisition
  robust and consistent figures

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Worldwide Revenues by Segment (M)
1265
CAGR 14,5 21,8 13,7
1040
878
741
641
567
473

• Market valuation model takes into account price
  decreases / segment / region

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WorldwideSub-segmentation (K Units)
CAGR 31,2
44,757
34,054
25,944
19,750
15,410
11,477
8,750

• External market analysts generally show less
  detail

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Worldwide Revenue sub-segmentation (M)
1265
1040
878
741
641
567
473

• Most sub-segments are substantially below 100M
  Euros

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Segments Potential - Worldwide
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AMM
Sales Payment
Home Security
VRM
CAGR (2006-2010)
After-Market
Control Monit.
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Auto Tier1
Mob.Comp.
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Fixed Voice
100m
5m
50m
Revenues (2006)

• Some sub-segments have greater potential for
  short-term growth

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The Art of Smart Services
Presented by Steve Pazol Vice President GM
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The Evolution of Connectivity
The Phone Number
One for every town
One for every home
One for every hand
One for every thing
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Embedding cellular mobile communications
technology into machines...has the potential to
be the first major communications break-through
of the twenty-first century.
Wake-Up Calls

• Deloitte Research 2004

Any industrial manufacturer that has not
awakened to the fact that it must become a
service business is in serious peril today.
Harvard Business Review 2005
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Common Business Challenges

• Maturation of business/industry/products
• Low perceived differentiation
• Growth requirements call for new business models
• Customer loyalty not like it used to be
• Service is human capital intensive, reactive, and
  difficult to differentiate
• Regulatory drivers
• High turn-over in labor pool major base entering
  retirement
• Difficult to attract next generation of knowledge
  workers
• Losing aftermarket business to third-party and
  competitors

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Who is affected?Virtually all product
manufacturers

Industrial and commercial equipment
Analytical instrumentation
Food service equipment
Kiosks
Medical devices
Imaging equipment
Construction equipment ?
Transportation equipment ?
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Strategic Service Management
Asset operators require unprecedented levels of
asset uptime, reliability, availability, output
Manufacturers face increasing product
commoditization and competition
DEMAND
SUPPLY
The leaders are establishing the new performance
benchmarks for their industries, deriving more
than 50 of their revenues and 60 of their
margin contributions from services as opposed to
product sales. Harvard Business Review, October
2005

• 74 of the leading OEMs run post-sales service
  as a profit center, revenue driver, and
  competitive differentiator

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Enter Smart Services
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OEMs Business Case For Deployment

• Smart Services Value Blades

• Increase workforce productivity
• Improve responsiveness
• Reduce service inventory

• Reduce recalls
• Reduce warranty expenses
• Extend product lifecycle (MTBF)

• Strengthen aftermarket presence
• Drive product sales
• Build brand

• Increase Asset Uptime
• Improve ROA
• Reduce energy costs

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Service Performance
Source Aberdeen Group
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• 70 reduction in asset downtime
• One customer saved more than 100,000 in robot
  programming time and production throughput on a
  single robot outage, due to ABBs ability to
  respond.

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nPhase, a QUALCOMM business
Its about solving the problem . . .
Field Device
Custom/Hosted Applications
Wireless Wireline Data Network

• Building relationships
• Addressing complex dynamic needs
• Delivering comprehensive tailored solutions
• Managing long term relationships

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Custom Applications Feel Like Their Own
Customized private label screens are a typical
component of nPhase solutions. This is an example
designed for Gardner Denver, a 1.5B OEM of air
compressors.
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Thank You
For further information contact Steve Pazol
QUALCOMM Wireless Business Solutions
spazol_at_qualcomm.com