BEST PRACTICES FOR IMPLEMENTING GLOBAL IOT INITIATIVES - KEY CONSIDERATIONS FOR LAUNCHING A CONNECTED DEVICES SERVICE
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Best Practices for Implementing Global IoT Initiatives
Key Considerations for Launching a Connected Devices Service
White Paper
© Jasper Technologies, Inc.02
Executive Summary
For more information about
Vending machines connected to a network lower the cost of service and
becoming a service business, read increase margins. Cars connected to a network allow for customized insurance
plans based on driver behavior. Sensors in the home connected to a network
the white paper, “Capitalizing on the
enable remote management of heating, lighting, and security.
Internet of Things.”
Doing business today requires that you connect with your customers
everywhere, on any device, and all the time. That’s the promise of The Internet of
Things (IoT) deployment. IoT doesn’t change the business you’re in, but it does change
how you do business. It means evolving your business into a connected service
business. Becoming a service business enables you to create and deliver a host
of new experiences for your customers, automate previously manual processes,
drastically reduce response times for critical operations, understand the state of
your business in real-time, and make more accurate predictions about where it’s
going.
An IoT business model typically has three, distinct continual facets: Launch,
Manage, and Monetize. An IoT lifecycle is continuous, as you continue to launch
new services, or launch additional devices, constantly mange connectivity and
costs, and continue generating revenue.
Key Business Processes in an IoT Lifecycle
Launch • Enable devices to connect to the wireless Internet.
• Integrate into mobile operator networks, anywhere and
everywhere in the world.
• Set rate plans.
• Define use cases and map out business and operational
requirements for every stage of your product lifecycle.
• Integrate your new Internet of Things business with your
existing infrastructure.
• Configure application programming interfaces (APIs) to meet
your unique business needs and the requirements of each and
every mobile operator you work with.
• Test, stage, and implement.
• Deliver the new applications and services to the market.
Manage • Monitor your connected devices in real-time, tracking data
usage, connectivity, etc.
• Run diagnostics to identify and troubleshoot issues on any
device, anywhere, at any time.
• Monitor for exception activity and to trigger mitigation activity, if
needed.
• Define and automate the events that trigger each device’s
activation and deactivation.
• Set up real-time controls that give you visibility into every
deployed device and let you manage data usage.
White Paper Best
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Monetize • Set rates for each type and level of service you offer and define
how those plans will be managed over time (e.g. free trial
periods, introductory discounts, subscriptions of different
lengths, renewal plans, split billing, etc.).
• Handle billing, charges, and payments to and from customers,
operators, OEMs, partners, and suppliers, etc.
• Establish data usage thresholds and cost controls.
• Gather intelligence from all the data you’re now gathering and
use it to create new revenue streams, optimize processes, build
new products, and improve existing ones.
• Analyze and optimize your supplier costs in real-time.
• Automate every stage of the billing process.
When thinking about implementing connected devices services, many senior
managers almost exclusively focus on just the basics around launching their
devices, including network coverage, SIM provisioning, rate plan management,
usage reporting, and network connectivity costs. Of course, the elements of
Launch are crucial for any successful IoT initiative. But building a successful IoT
service—one that truly accelerates and supports your business needs—includes
taking a more holistic approach and it also requires you to be strategic in
planning for the Manage and Monetize phases of the lifecycle.
Connected services businesses present different operational challenges. When
offering a connected service, companies need to be prepared to address six
crucial areas throughout the entire lifecycle of their IoT deployment:
1. Automating the day-to-day tasks of maintaining your devices and pulling
relevant data to assess IoT service performance.
2. Efficiently and cost-effectively servicing connected products when they
don’t work in the field.
3. Moving beyond raw data collection to accurate, automated reporting of
your IoT business performance.
4. Controlling costs and building predictability into expenditures and
revenue.
5. Meeting the expectations of always-on, anywhere, every time service.
6. Scaling into global markets with standardized operations.
White Paper Best Practices for Implementing Global IoT Initiatives04
Managing IoT Complexity
To get the most out of your IoT business, it’s not simply about finding the right
device, finding a rate plan, and turning on a modem. It’s that and thousands of
additional layers of complexity. Did you know that a typical connected devices
business will1:
Overlooking crucial areas in the Manage and Monetize phases of an IoT lifecycle
may mean additional costs in managing your IoT business—costs that can add
up quickly. Internal resources have to be secured if you’re manually changing
policy on a per device-use basis. Internal resources have to be secured to
identify, diagnose, and troubleshoot device connectivity issues. Who will
provide frontline support for your customers if your devices fail in the field?
Who will provide backend systems support? And depending on your business
model, one operator rate plan for your devices probably won’t scale. What will
be the costs for your devices when they roam in international markets? Do
you need the same rate plan when you’re just in device testing mode? These
considerations, and more, need to be thought through carefully and aligned
around the following six best-practices areas.
1. Establish Automated Business Processes
Ensure that you can automate the day-to-day tasks of maintaining your
Best Practice Tip devices and pull relevant data to assess IoT service performance
An average device may have up to 585
Managing the day-to-day tasks of 1,000 or 1,000,000 devices cannot scale
different ways it can be configured (SIM
if you’re not able to automate much of the core, required operations around
state, rate plan options, communication
maintaining them effectively. You should consider the core business processes
plan options, etc.). Without the ability around maintaining your devices and ensure you can automate as many of them
to automate standard workflows as possible.
around provisioning, testing, launching,
bill management and performance Automating standard business processes ensures that you will be able to
monitoring for devices, you will not be maintain high-quality service delivery for your customers. It can also potentially
able to scale your business quickly or increase the margins of running your IoT service by lowering support costs and
increase operational margins. preventing overage charges.
1Based on March 2014 data analysis of Jasper Control Center, an IoT platform supporting more than 1,000 global enterprise deployments of connected devices services.
White Paper Best Practices for Implementing Global IoT Initiatives05
Here are some standard business operations that will be tedious to manage
manually and that will recur regularly. Example standard processes:
• When a device exceeds monthly data usage, de-activate it.
• If a device loses its connection, notify a technician.
• If a device’s prepaid plan is about to expire, notify the customer and offer a
different plan.
• If a device makes too many connections within a 24-hour period, notify a
technical service manager.
• If a device exceeds its roaming caps, change the rate plan to one better
suited for roaming.
2. Provide Real-time Device Diagnostics and Support
Ensure that you can efficiently and cost-effectively service connected
products when they don’t work in the field
Getting your connected device deployed is only half the battle. How do you
support devices once they are in the field? Do you bear the expense of sending
out a service technician? Do you offer phone support? Are there local personnel
with enough training to do remote troubleshooting?
Even if you build diagnostics scripts into your connected device, it doesn’t
mean your troubles are over. What happens if the device cannot connect to
the network? That’s one of the most common support issues, and it could be
caused by a network connectivity problem, device software or server software
problem, or a hardware malfunction. But without a connection, it is impossible to
get the diagnostic data you need.
Best Practice Tip
In the majority of cases, when your Your team needs the ability to conduct network diagnostics that let you quickly
devices cannot connect to your mobile determine whether network connectivity is in fact the problem. The ability to
network, it’s not a network issue. It could rule this factor in or out within a couple of minutes speeds problem resolution,
be a device malfunction, improperly significantly reducing your customer support costs.
provisioned SIM card, or an improperly
Real-time diagnostics and troubleshooting of devices ultimately ensures better-
set APN within the device. Network
optimized field service operations. This type of availability enables you to:
malfunctions are usually to blame
because they are typically the area where • Respond to the customers faster and decrease time-to-repair.
customers have the least information. • Save on operational costs by knowing exactly what to fix and eliminating
Ensure good reporting capability on redundant service trips.
network conditions, so you can quickly • Extend the useful life of equipment and increase average-time-between-
rule out issues and begin focusing on failures by identifying and repairing small problems before they become
other root problems. big ones.
White Paper Best Practices for Implementing Global IoT Initiatives06
Best Practice Tip 3. Focus on Accurate Reporting and Analytics
Most customers focus solely on Move beyond raw data collection to accurate, automated reporting of your
generating reports around device IoT business performance
application data. Is the firmware on
Many IoT projects focus on raw data collection around your device activity. And
the device up-to-date? What files
while useful, raw data alone will not enable you to drive innovation. How can
were downloaded to a device and you develop analytics that mine knowledge from your IoT data and extracts high
when? Which users have access and business value in real-time?
permissions to access application
downloads? While of course, device Your focus should be on measuring how well you’re meeting your IoT initiative’s
application management is important, internal key performance indicators (KPIs) and service-level agreements (SLAs).
customers often overlook the need and Automated report generation and integration into existing business intelligence
importance for reports around network or other corporate reporting systems are key to making sure that your IoT
data. Ensure that you can generate initiative is a success.
reports that give you a 360° view of
your network data as well. Network What are the categories, patterns, and rules around your device data that you
need to know? Would it be useful to identify security panels from specific device
data provides you key indicators of
manufacturers that have higher malfunction rates, correlate leaks from a water
performance such as device behavior—
meter with its network malfunction, or predict potential risks for a patient in an
is the device trying too many times to outside care program?
connect to the network? That could be
an early indicator of an upcoming device You need analytics related to your deployed devices, network usage, rate plans,
malfunction. Are the devices in a specific and resulting costs. This would give your company detailed insight into how
geographic area using more data than devices are using network resources and what it is costing you. Work with your
expected? That can be an early indicator operators to get real-time access to a granular breakdown of your invoices for
of fraud. connectivity services. Doing so means that you won’t have to wait until the end
of the billing cycle to understand what you will owe.
4. Control Costs and Optimize Revenue
Manage costs and build predictability into expenditures and revenue
You need analytics related to your deployed devices, network usage, rate plans,
and resulting costs. This would give your company detailed insight into how
devices are using network resources and what it is costing you. Work with your
operators to get real-time access to a granular breakdown of your invoices for
connectivity services. Doing so means that you won’t have to wait until the end
of the billing cycle to understand what you will owe.
You need an easy way to easily analyze operator charges. You should look for
ways to automate the management of your network rate plans and the analysis
of devices against rate plans to determine the plans that are most cost-effective.
It’s not enough just to just have reports for cost management. You need to be
able to make automated changes against rate plans as well. Make sure you can
change a device’s rate plan when a rule is triggered. For example, if a device
uses more data than expected, ensure that you can automatically switch it from
your standard rate plan to a premium rate plan. The premium plan may have a
White Paper Best Practices for Implementing Global IoT Initiatives07
Best Practice Tip higher subscription fee, but it could help eliminate even more costly overage
Wireless spend optimization starts charges than if the device were to remain on the standard plan.
with an analysis of current operator
When thinking through reports, being able to have at-a-glance comprehension
contracts, plans, and usage to determine
of subscription, overage, and roaming charges for all your devices is vital for
the baseline wireless spend. Look into
cost management and prediction. But be sure you can have granular reporting
pooled-usage options with your operator. capabilities as well on additional costs around activation, one-time charges,
Sometimes pooled-usage can offer subscription commitments, and device usage commitments.
savings over the “unlimited” offerings.
There are typically a couple of different pool plans. In a Fixed Pool, the pool itself
has a predefined, fixed usage allotment that can be shared among any number
of devices in a rate plan. Fixed pool plans can be either prepaid or monthly. For
monthly fixed pool plans, usage is defined per billing cycle, not per term.
In a Flexible Pool, each device has a usage allotment that can be shared with
other devices in the pool. The size of the pool depends on the number of
devices contributing. Devices in a monthly flexible pool contribute their monthly
included usage to the pool each month. Devices in a prepaid flexible pool
contribute a prorated portion of their per term, included usage to the pool each
month, based on the number of days the device was active. For example, if
each device in the prepaid flexible pool had 12MB of included data for a term of
twelve months, then each device could contribute at most 1MB of data to the
pool per month and possibly less if the device was active for a portion of the
month.
An Add On rate plan is a prepaid plan that increases the data allotment for the
devices in a shared pool (flexible or fixed) during the current billing cycle only. An
add-on plan expires when the included usage is consumed or the current billing
cycle ends, whichever comes first.
5. Optimize for the Customer Experience
Meet the expectations of always-on, anywhere, every time service
Customers value service that goes beyond the standard, and they remain loyal
when businesses provide it. Spend time on ensuring that you can reach out
to customers for predictive service maintenance before breakdowns panic
customers.
Look for ways to offer customers premium service contracts with a
predetermined, proactive response to conditions that indicate declines or
failures in device performance.
Best Practice Tip
You must continually review, test, and More service contracts lead to higher profits, so how can you easily add
fine-tune your devices in the field. new services without requiring additional resources? What if you could offer
Benchmark your IoT deployment premium service contracts that guarantee proactive equipment maintenance?
elements against competitors, industry
best practices, and industry trends. If you can continuously monitor critical health indicators for all your devices,
This type of information can usually be customers can rest assured their operations will stay up and running, and they’ll
obtained from your IoT solution providers. be willing to pay a premium for that piece of mind.
White Paper Best Practices for Implementing Global IoT Initiatives08
Best Practice Tip 6. Prepare for Global Scale and Operations
If you are planning to deploy devices in Scale management for multi-operator and multi-country use
multiple regions you may want to ask
your mobile network operator if it is part Enterprises with connected products often start with their products in one
or more centralized locations and then deploy them all over the globe. This
of a broader partnership or global alliance
business model requires network services in multiple countries with multiple
that gives you access to local operators
operators.
outside their market. Some type of
operator global alliance participation To scale globally, enterprises should ensure that they can manage a single
gives you: embedded SIM in each device that can be remotely provisioned and ensure that
they can manage mobile operator profiles and policies for that SIM anywhere
• Single Operator Management: You in the world. This meets the demand for more efficient and cost-effective
only have one vendor to manage— global deployment models and enables rapid international distribution and
your primary operator, even as device activation. Connected devices can be transferred seamlessly from one
your devices are using secondary operator to another to take advantage of local operator support, comply with
operators in smaller markets. international roaming restrictions, and address cost constraints.
• Streamlined Purchasing: Purchasing
is much easier because all SIMs If international reach is a key part of your IoT business, you need to be able to
come from the same operator, no change SIM profiles on-demand or based on pre-defined rules and triggering
matter what their final destination is. events, with reporting and audit controls, automated assignment to proper
• Lower Roaming Costs: You can policies, rate plans and service conditions, with fully managed billing and
contractual term compliance.
bypass the roaming rates associated
with the primary operator and take
advantage of the partner operators’
local service rates. You get a global About the Jasper Control Center Platform
market at local rates. Get everything you need to rapidly launch, manage, and monetize your
connected device business with the only platform purpose-built for IoT. The
cloud-based Jasper Control Center Platform is highly configurable to your
unique processes, experiences, and business models. Control Center is
designed to meet needs across industries and around the globe.
About Jasper
Becoming a connected business means becoming a service business. And
that’s where Jasper comes in. Jasper is the pioneer in cloud-based platforms
for the Internet of Things (IoT) and the defining player in the Service IT category.
The Jasper Platform empowers enterprises and mobile operators of all sizes to
deploy successful IoT service businesses on a global scale. More than 1,000
companies, including many of the world’s top brands, have chosen Jasper
to fast-track their connected businesses. Mobile operator groups worldwide,
representing over 100 network affiliates, partner with Jasper.
Founded in 2004, Jasper is based in Mountain View, California. For more
information, visit www.jasper.com or follow us on Twitter @Jasper__IoT.
Find out more
Visit www.jasper.com to see the full breadth of how companies are really using
IoT to advance their businesses.
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