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Connected Enterprises Report
Connected Enterprises Report
In this report
We’ll set out the 6 golden rules for digital In the spotlight 14
transformation success, along with tips
for overcoming challenges. And we offer
unique insights, such as AT&T’s advice on Section 3
the benefits of a fail-fast approach.
How to stay ahead 20
As Dr. Henning Löser of Audi notes, “You’ll
see how IoT and cellular connectivity, like
4G and 5G, are making things possible that Conclusion24
were impossible in the past.”
No limits, except
your imagination
IoT’s boundless potential Helping put IoT to work
The global IoT market is projected As our goal has long been to realize
to reach $1.5 trillion by 2030. By the dreams of innovators and help
2026, there will be almost 27 billion companies seize new opportunities,
connected devices. That means we created the “Talking IoT with
almost every object around us will be Ericsson” podcast.
connected. Streetlights, thermostats,
This report features insights from
electric meters, fitness trackers,
interviews with leaders who have
water pumps, cars and elevators.
applied digital transformation in
The transformative potential this varied and powerful ways, like
holds for business and society is increasing operational efficiency
boundless, allowing us to solve or creating new revenue streams.
problems like never before. We’ll draw on their learnings and
show how to put these insights into
Now that COVID-19 has sped up
practice in your own business.
widespread digitalization, this
transformation is happening faster We’ll also reveal how cellular technology,
than ever. And this means decision 5G, dedicated networks and other
makers need to be prepared technologies can help you define the
for change. future of your own company.
In the words of Warren Chaisatien,
Senior Director of Global IoT Marketing
at Ericsson: “The applications of IoT
are endless and hold incredible potential.
We can make safer work environments,
potential.”
Warren Chaisatien,
Senior Director of Global IoT
Marketing, Ericsson
4 The fundamentals Connected Enterprises | May 2021
Section 1
The fundamentals
of connectivity
As businesses the world over pursue
digital transformation, new opportunities
and revenue streams are opening up.
But ideas around how to digitalize
goods and services are only as strong
as the connection driving them. To
make them happen, they need reliable
and secure connectivity, and that is
what cellular technology provides.
So before you harness the potential of
cellular, you need to grasp the technical
and operational fundamentals.
Although this technical foundation
is important, the true path to success
lies in having a clear business case
and understanding the value you want
to create.
The right knowledge, the right business
model and the right mindset will help
you bridge the gap between possibility
and reality.
5 The fundamentals Connected Enterprises | May 2021
Fundamental #1
Making IoT
work for you
Business first, technology There are several ways to approach IoT success flows top
building this business case. Consider
second how to create new efficiencies or down
optimize processes. Think of other
IoT solutions are now more easily Ultimately, in order to see new IoT
approaches – like differentiation –
available to businesses than ever. initiatives through, you need to get
by adding more services or value to
But it’s important not to be seduced buy-in at the top of your organization.
existing offerings, which can help
by the new technology and instead, Showing a strong case for return on
you gain a competitive advantage.
take a business-first approach. The investment will give you a strong
path you take must support business business case, and will make the
needs, not just technical ones.
Infinite connections, C-Suite more comfortable with
“It’s clear that IoT is now on the agenda
infinite potential throwing out the rulebook.
in the boardroom in most enterprise Mo Katibeh, EVP Chief Product and As Martin Whitlock advises: “You
businesses,” notes Phil McDermott, Platform Officer for AT&T Business, need a management team that is
the Chief Commercial Officer believes there are infinite possibilities willing to commit to this, to see the
from Arkessa, an IoT connectivity for businesses to grow if they can business value, and maybe taking
service provider. spot the potential: “Almost every some risks and throwing out new
single vertical is seeing the potential types of business models as well,
But Martin Whitlock, CTO of Telenor
of how they can use 5G and IoT to that to some extent may or may not
Connexion, emphasizes the need to
drive outcomes for their business”, challenge the legacy business model.”
think business-first: “There are so
many disciplines that you need to do explains the AT&T Business EVP
IoT, and you can do IoT in different Chief Product and Platform Officer.
ways – but my recommendation “It can be improved efficiencies in
“You need a management
is that regardless of what kind of terms of their operations. It can be team that is willing to
focus you have…whatever it is you’re improved effectiveness in terms of
going to do, don’t only focus on the how they’re thinking about safety
commit to this, to see the
technology, but on the business as well.” for their employees. It can even be business value, and maybe
a way of changing outcomes for their taking some risks.”
“It’s clear that IoT is end customers and creating entirely
now on the agenda in new experiences for them, which can
manifest itself as new revenue sources.”
Martin Whitlock,
CTO, Telenor Connexion
the boardroom in most
enterprise businesses.”
Phil McDermott,
Chief Commercial Officer, Arkessa
6 The fundamentals Connected Enterprises | May 2021
Fundamental #2
Fundamental #3
Begin with
holistic thinking
In order to execute successful projects
at scale, you must organize your
By keeping an end-to-end mindset,
you can set up the business for long- “You’ve got to take
business for long-term transformation.
That includes setting up operational
term success in a way that works for
you. If you’re an asset-heavy business, an end-to-end
foundations in a smart way. ripping and replacing isn’t necessary.
Instead, think of the things you can perspective all the
Firstly, you’ll need to embed digitalization
into the core of the business. It can’t just
upgrade and enhance over time.
way from supply
be an afterthought if you want to clear Fredrik Östbye, Group Vice President
a smooth path to business growth. and Head of Digital Transformation chain into the core
at Grundfos, believes that, “In the
Plus, to proceed with an end-to-end
implementation in mind, you’ll need to
basics, IoT is quite simple. It’s a device manufacturing
that connects and delivers data. But in
ensure that you possess or can source
the right skill sets and capabilities.
reality, there are some challenges… process and the
as this technology spans quite wide.
Sachin Mathur, Hexagon’s Head
of Strategic Partnerships, Smart
It spans from physical devices in one end delivery.”
end to cloud infrastructures and APIs in
Manufacturing, believes that thinking the other end. And this end-to-end Sachin Mathur,
longterm is the key: “You’ve got to set-up is extremely important to get Head of Strategic Partnerships,
plan your digital transformation. You’ve in place.” Smart Manufacturing Hexagon
got to plan it around the capabilities
and the skill sets that you have within
your own office environment…You’ve
got to take an end-to-end perspective
all the way from supply chain into
the core manufacturing process and
the end delivery.”
8 The fundamentals Connected Enterprises | May 2021
Fundamentals
Section 2
The 6 golden
rules for digital
transformation
success
We set out how to get your
customers center stage,
step into their shoes and
speak their language.
These golden rules represent
the key learnings we have
gleaned from businesses who
are already forging ahead on
the path towards digitalization.
10 Golden rules Connected Enterprises | May 2021
Section 2
Listen
to
your
customer
Three key principles for
solving real world problems.
11 Golden rules Connected Enterprises | May 2021
Rule 1
Know your
audience
Put the customer first, But it’s important that organizations set Focus on the user
business goals, not technology ones –
not the product technology is just a tool to enable the The customer must always be the
achievement of those goals. primary focus, and the user experience
The customer must always be the focus,
should be firmly at the heart of
not the technology. You first have to IntraGrain’s Tanner Folk agrees: “Make
everything you do.
understand the challenge they’re trying sure you understand your audience and
to solve. Then, you can determine how you’re providing solutions to solve real By learning what success looks like
technology can support it. Trying to world problems.” to them and their business, then
push technology for the sake of selling you’ll be in a position to add true
Hexagon’s Sachin Mathur shares this
technology will not make a customer value that will help everyone.
view: “To be able to define pain points,
happy in the long run.
to be able to define how to improve Simplification is key for customers.
As we sat down with more and more of day-to-day operations, by gaining the Essentially, simplicity is about the
the visionaries helping guide other digital true understanding of the customer reduction of the unnecessary.
transformation journeys, a very common and employee needs, then you can align We optimize the user experience by
theme began to emerge. “Listen more, the technology goals with the business removing complexity. Ultimately, users
talk less,” summarized Tanner Folk, goals and then prioritize the areas don’t want to have to think about the
CEO of agtech provider, IntraGrain. which make the largest impact quickly.” technology – they just want to plug in
and go.
Everyone saw incredible value in listening,
versus telling. In order to create something
Speak their language “When the ecosystem comes together,
that’s useful to the world, you must It’s been said many times, but you must it needs to add value in the eyes of
spend time listening to customers and learn to speak your customer’s language. the customer, and not complexity,”
fundamentally learn the nature of Get out in the field and work with the said Arkessa’s Phil McDermott.
their business. client, rather than seeking the isolation
Once you have an understanding of their of a research and development lab.
business dynamic, use cases can then be Speak like your clients think and you’ll
“When the ecosystem
devised to help them achieve their goals. help them lay a clear, viable path comes together, it needs
to what they consider success. The to add value in the eyes
ability to proactively identify win-win
“Make sure you understand outcomes for customers will go a of the customer, and not
your audience and you’re long way towards helping everyone. complexity.”
providing solutions to solve “Make sure your products are truly solving
a pain point and not just pushing down Phil McDermott,
real world problems.” a feature or an idea that was developed Chief Commercial Officer, Arkessa
but never researched.”, advises
Tanner Folk IntraGrain’s Tanner Folk.
CEO, IntraGrain Technologies
12 Golden rules Connected Enterprises | May 2021
Rule 2
Rule 3
Test your
proof-of-concept
Start small, then scale up Act fast, test early “Fail fast and you
Once the decision is made to pursue
data collection via IoT, don’t go rushing
In the early stages of creating IoT
projects, enterprises can take inspiration can take that time,
in blindly. Start small with a pilot program
or proof-of-concept. Try it out. Run tests.
from how start-up companies operate.
These lessons include: that money, that
Experiment. Make sure the intended
value is being met before applying other
Act fast, act early, and test often. Plus, resource, and shift it
be ready to fail fast, regroup, and then
solutions elsewhere. Once it’s working
well, then you can scale.
optimize. Start small, integrate with to the next initiative
various systems gradually, and then
“We tell our customers, let’s make a scale on the back of success. to drive outcomes.”
proof-of-concept, let’s make a minimum
“Scalability is a question of maturity in
viable application. Because it’s about Mo Katibeh,
understanding the business models that
learning. It’s not about technology, it’s EVP Chief Product and Platform Officer,
can be created out of it,” said Brighter’s
about seeing what the value is for the AT&T Business
CEO, Henrik Norström.
customer. So, I think we need to experiment
with our customers to get these kinds of AT&T Business’s Mo Katibeh believes
early successes,” said Staffan Dahlström, it’s good to fail fast: “Being able to
CEO of HMS (Hardware Meets Software), show up and say that something is not
the leading independent supplier of working is just as good of an answer,
solutions for industrial communication because it means you can fail fast and
and the Industrial Internet of Things (IIoT). you can take that time, that money, that
resource, and shift it to the next initiative
to drive outcomes.”
Audi
automate
manufacturer SICK to connect one of Audi’s
German factories with 5G technology, creating
seamless robot collaborations, greater efficiency,
and enhanced productivity and safety.
Outcome
5G brought flexibility improvements, enhanced
connectivity, and a complete reimagining of what
safe human-robot collaboration can look like.
All on the same network.
“Working alongside SICK and Audi, we can address
complex use cases that could never be solved
5G brought flexibility before, making human-robot collaboration possible.”,
said Andreas Thuelig, 5G for Europe – Program
improvements, enhanced Manager, at Ericsson.
IntraGrain
to create new
solution that could reduce this high spoilage level,
maximize revenues by ensuring more of their
product reaches buyers, and provide customers
with 24/7 access to their stored grain data.
efficiencies Solution
IntraGrain’s cellular-powered solution monitors
grain storage conditions and reduces spoilage.
Ericsson and SaskTel partnered with IntraGrain
to create an IoT Accelerator-based solution that
enables farmers to closely monitor the conditions in
their grain silos, like temperature and humidity, with
data from sensors collected by BIN-SENSE®. They
also provided farmers with access to a simple web-
based user interface and mobile application.
Outcome
Monitoring grain in near real-time can reduce
spoilage rates to as low as 2% down from an
average of 60%.
Monitoring grain in near “Our monitoring system allows the producers
real-time can reduce to sleep well at night and know their grain
is safe in their bins. It gives them the insight
spoilage rates to as low into the structures that they store massive
amounts of commodity in.” – Tanner
as 2% down from an Folk, CEO of IntraGrain Technologies.
average of 60%.
16 In the spotlight Connected Enterprises | May 2021
Grundfos
to transform
a cellular-powered solution that offered a robust
and agile IoT ecosystem, global coverage across 55
countries, and security of all connected assets.
Solution
products to By intuitively regulating water flow via data
feedback from temperature sensors, the world’s
largest pump manufacturer used cellular technology
Outcome
Making pumps intelligent has resulted in a 60%
increase in energy efficiency.
“Today 10% of all electricity used in the world goes
to pumps – and if we swapped all of those pumps
to the latest technology, that percentage would be
Making pumps 4%. That is quite a big saving in energy consumption
by making all pumps intelligent.” – Fredrik Östbye,
intelligent has resulted Head of FutureLab at Grundfos.
in a 60% increase in
energy efficiency.
17 In the spotlight Connected Enterprises | May 2021
to protect
solution for their GT Sense platform that tracks
and monitors containers, no matter where they
were globally, and ascertain if they will arrive
on-time and in good condition.
GrandPad
to keep
a solution that simplified the technology, let seniors
easily connect anywhere, at any time, and supplied
enough connectivity for high-quality video calls.
Solution
the elderly With Orange Belgium providing a secure IoT
network, and managed by Ericsson IoT Accelerator,
a purpose-built tablet was created that is enabled
Outcome
One million users in 110 countries enjoying reliable
and secure GrandPad tablet experiences.
“Every GrandPad connected tablet comes with
built-in LTE service, which removes a common
technology barrier because seniors often don’t
have in-home WiFi. Being able to stay connected
and engaged, especially during these challenging
One million users in 110 times of the pandemic, is essential for reducing
depression and improving the quality of life for
countries enjoying reliable seniors as well as family members.” – Scott Lien,
co-founder and CEO of GrandPad.
and secure GrandPad
tablet experiences.
19 In the spotlight Connected Enterprises | May 2021
Atlas Copco
Building a Challenge
Compressor manufacturer Atlas Copco Airpower
wanted to improve remote management and
streamlined,
manufacturing productivity without a cable in sight.
The company wanted to do away with traditional
cables and create a more autonomous, automated,
and intelligent manufacturing facility that is flexible,
connected
efficient, wireless, and future-proof with a clear
path to 5G.
Solution
Outcome
A secure, fully connected, and wireless factory floor,
allowing for 24/7 control and system availability.
“This technology gives us the possibility to connect
our machines wirelessly instead of the traditional
way with cables. The really exciting use cases will
A secure, fully connected come when we can make use of low latency”, says
Wouter Ceulemans, President of the Airtec division
and wireless factory floor, at Atlas Copco Airpower. The case that wraps it all
together for us is, of course, security. We can all do
allowing for 24/7 control this in a secure environment. I think that the factory
of the future will be a lot more autonomous,
and system availability. automated and intelligent”, he adds.
20 Golden rules Connected Enterprises | May 2021
Section 3
How
to
stay
ahead
Three key watch-outs on
your journey towards a
more connected business
21 Golden rules Connected Enterprises | May 2021
Rule 4
Rule 5
Don’t do
it alone
Innovation through Kent Eriksson believes it’s all about the Be open for business
ecosystem: “One of the inhibitors of
teamwork digital transformation today is the Creating open ecosystems and open
inability to manage the ecosystem and standards will allow you to grow your
To successfully innovate, companies
the many decisions and risks involved industry and differentiate your
need to spend time building a strong
there for the end customers”, commented product within it.
network of alliances and partners, and
the former PTC advisor, adding “We
become part of a digital ecosystem. Gerhard Loots of Telstra – Australia’s
tried to remove that by partnering on
largest telecom operator – believes
Grundfos’s Fredrik Östbye explains the the ecosystem in a very structured way.
open standards are vital to industry
importance of tapping into the right At the end of the day, it’s not company-
growth. “Nobody wants to be locked into
talent: “As a company you shouldn’t to-company competition. It’s an
one vendor, especially not when you’re
spend your energy on building the ecosystem-to-ecosystem competition.”
sitting with situations where business
enablers. They are already there. You
cases play over 10 to 15-year periods”,
should spend your energy on creating Partnerships keep you says the global IoT solutions executive.
value for your customers…we bring on
board other companies…start-up
connected “So, we’ve sought to address that by
being very open with our standards.
companies to speed up our innovation Ecosystem partnerships provide benefits We’re really encouraging the competition
and to increase the innovation height.” to all sides. Telecom operators can because it’s good for the industry
expand their portfolios and coverage as a starting point and it serves the
An ecosystem is the only areas, leading to more revenue customer need.”
system opportunities. Meanwhile, enterprises
can gain easier access to the global
To enable innovation to fit a business IoT network, with just a single
model, a good product company needs contract and set of SLAs.
to partner with a good digital ecosystem.
Companies can avoid the need to
For a manufacturer who may try to plug
roam by deploying international eSIM
into the ecosystem by itself, there lies
technology and collaborating with
“At the end of the day,
ahead a complex and arduous journey.
Depending on where the device is
a telecom operator who will have an it’s not company-to-
extensive reseller network of partners.
expected to operate, the manufacturer
With this approach, a connected device
company competition.
will need to take out a contract with an
operator in each locality. Not a good idea.
will be able to remain in contact as it It’s an ecosystem-to-
passes through all the stages of the
This results in multiple contracts, each
global supply chain – from the factory,
ecosystem competition.”
outlining different SLAs (service-level
to the port, to the end user. Regardless
agreements), and KPIs (key performance Kent Eriksson,
of where the device is in its journey,
indicators). When something goes wrong, former PTC advisor
it will automatically connect to the
that means having to track down a lot of
provider in the region and benefit from
responsible parties.
localized, high performance connectivity.
23 Golden rules Connected Enterprises | May 2021
Rule 6
Don’t compromise
on security
Built in, not bolt on Listen to the experts AT&T Business’s Mo Katibeh, believes
in the security of cellular. “One of the
IoT security cannot be an afterthought If security knowledge is not your core conversations we have a lot with
or an add-on. Organizations must be strength, use trusted security providers. businesses is how cellular connections
proactive with security, and build it into Don’t try to reinvent the wheel, or are inherently more secure as they’re
the hardware from the outset. The cyber become an expert. Leverage the encrypted end-to-end. 5G is being built
security landscape is constantly changing strengths of the right partners in your to take into account all of the learnings
but if you do things right, you can put digital ecosystem. It’s of great benefit to from a security perspective of every
together a very secure system. have a partner who can help shape the other G and with security built in from
security landscape so you can envision the ground up”.
The security risks need to be addressed
new possibilities with confidence.
with eyes wide open. “When building
new technology, like IoT or AI, companies Those who pursue cellular connectivity
should try to act like a startup and adopt are already a step ahead as it is inherently “5G is being built to take into
a fail-fast approach,” said Kristofer secure across platforms and geographies, account all of the learnings
Ågren, Head of Data Insights for Division without building in passwords or security
X of Telia, the biggest telecom operator measures as add-ons. from a security perspective
in the Nordics.
“I see perceptions that wireless is not as of every other G.”
“Tech is built up quickly so that data can secure as cable-based communication,
be collected immediately, and companies which is not true. If you do this right you Mo Katibeh,
can test if it flies. However, this approach can have a very secure system,” said EVP Chief Product and Platform Officer,
comes with a lot of data risks. Safeguards HMS’s Dahlström. AT&T Business
need to be put in place to secure the
network end-to-end, even if the Cellular has it covered
technology is only being tested”,
added Ågren. Cellular technology provides a coordinated
approach to security. This includes
product security, deployment, operations
and management, incident-handling
capabilities through strong security
algorithms, traffic encryption, and
protection of signalling and interfaces.
An end-to-end secure system with
global identity management, cellular
technology interacts securely with other
network technologies.
24 Conclusion Connected Enterprises | May 2021
Conclusion
The future is
yours to shape
IoT-enabled products and profitable,
innovative business models are no longer
far-off dreams – they’re happening
right now.
Businesses are now able to bring the future
into the present, while creating new business
models and opening up new revenue
opportunities.
Companies will have a huge advantage if
they adopt the right mindset, such as the value
of collaboration, and planning with people in
mind. They’ll be able to leverage the vast
ecosystem of partners to help overcome
challenges like scalability and security.
And those are the kind of enterprises that
will end up shaping the future.
Dr. Henning Löser, Senior Manager of the
Audi Production Lab, summed it up when
he said, “By doing this, all of us together,
right now, we are actually shaping the future.
We’re making things possible that were
impossible in the past.”
Final word
People-powered
technology
True digital transformation
must be human-centric
At Ericsson,
we connect
businesses
Let’s talk about how
you can connect yours.
Read more on
www.ericsson.com/enterprise
Or get in touch at
iot@ericsson.com
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