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Whatyou
needtoknow
aboutIoT
Therightinformationcanchangetheworld
Contents
50billion“things”connectedto
theInternetby2020.
Source:DHLTrendResearch/CiscoConsulting,20151
04	 Preface
06	 LetterfromChrisPenrose
	 SeniorVicePresident
	 AT&TInternetofThings
08	 Whatyouneedtoknow
	 abouttheInternetofThings
10	 EvaluatingROI
12	 Thedeveloper’s
	conundrum
14	 Drivingtheconnected
	 carrevolution
16	 Theconnected
	 caropportunity
18	 FleetManagement:
	End-to-End
20	 Transportationandtelematics
22	 Fleetcasestudy:
	 B&PEnterprises
24	 AT&TSmartCities
26	 Smartcitycasestudy:
	 MuellerWaterProducts
28	 AT&Tandthesmartgrid
30	 Yoursupplychain
	 underyourcommand
32	 Theneedfor
	 proactiveresponse
34	 Assetmanagement
	 casestudy: Maersk
36	 Takingthenextstep
37	 Sources
3
Therightinformation
canchangetheworld.
TheInternetofThingsishowithappens.
AtAT&T,wehelpcompaniesofeverysizedevelopIoTsolutionstolower
costs,gainefficiencies,andimprovecompetitiveadvantage.Weknow
theIoTdecisionsyoumaketoday,impactyourbusinesstomorrow.
InsidethesepagesyouwilllearnaboutthelatestIoTtrendsacrossa
varietyofindustries,experiencehowIoTsolutionsareimpactingbusiness
today,andgaininsightintohowtobuildglobalIoTapplications--quickly,
affordablyandsecurely.
4 54
Businessleader,
We’reoperatinginatimewhenvirtuallyanythingcanbeconnectedtothe
Internet. Entirelynewexperiences,revenuesandprofitability,tightercustomer
relationships,businessinsightsandprocessesneverthoughtpossiblearenow
achievableusingtheInternetofThings(IoT).
Harnessingdatatopredict,learnandmakereal-timedecisions,cancreatea
distinctcompetitiveadvantageforyourbusiness. Knowingthevalueofthedata
isthefirststeptodrivingpositivechangeusingtheIoT. Withthat,youcanbetter
executeawinningstrategyacrossmanydepartmentsinyourorganization.
FrommarketingteamsandnewproductdevelopmenttooperationsandI.T.,
unlockingthevalueofIoTsolutionsinyourbusinessmaynotbeassimpleas
connectingdevicestotheInternet,butitcanbeeasierthanyouthink.
ThisAT&TreportontheInternetofThingsandhowTheRightInformation
CanChangetheWorldisintendedtoshareinsightsthatcanhelpyouturnthe
InternetofThingsintoastrategicadvantageandincludestopicsthatcanhelp
driveyourorganizationtosuccess,including:
•	 Accelerateinnovation
•	 BetterunderstandthechallengesyourI.T.organizationmayface
•	 LearnaboutIoTinusetodayfromindustrieslikeautomotive,
	 transportation,andmunicipalinfrastructure
WeareexcitedabouttheInternetofThings.Thankyoufortheopportunityto
shareourleadership,knowledge,andexperienceinIoTwithyou.Pleasereach
outandvisitussoonatatt.com/iot.
ChrisPenrose
SeniorVicePresident
AT&TInternetofThings
“Ourgoalistoreplace
confusionwithclarity.
Harnessingdatafromthe
InternetofThingstopredict,
learnandmakereal-time
businessdecisions,can
createadistinctcompetitive
advantageforyourbusiness.”
ChrisPenrose
SeniorVicePresident
AT&TInternetofThings
6 76
Whatyouneedto
knowaboutthe
InternetofThings
•	 IDC predicts the global market for
the Internet of Things will nearly triple
reaching $1.7 Trillion by 2020.3
•	 An estimated 50 Billion “things”
ranging from sensors in cars and
traffic lights to utility meters and
household appliances will be sharing
data over the Internet by 2020.4
•	 As the leader in North America for
the Internet of Things, we have
connected more than 25 million
devices to our network and continue
to grow.
•	 In Q3 of 2015, we added a record 1.6
million connected devices in a single
business quarter.
•	 And in just the last 24 months, AT&T
has experienced a 250% increase in
data usage from our IoT customers.
Greaterefficiency,newrevenue,loweroperatingcosts,and
increasedcustomersatisfactionallcontributetothereasons
theInternetofThingsishighonthelistofmanybusinessleaders.
Weknowbusinessesareseriousabout
theInternetofThings:
TheInternetofThingsismoving
fromconcepttorealityfast.Business
leadersarecreatingmomentumin
manyindustries,including:
•	 In automotive, Machina Research
estimates the number of IoT connections
to grow from 125 million in 2014 to
approximately 1.2 Billion in 2024,
representing a CAGR of 23%.5
•	 In transportation, Berg Insight forecasts a
15.3% growth of active fleet management
systems by 2019.6
•	 In Smart Cities, Frost & Sullivan research
shows that between 2011 and 2014,
approximately 37 million smart meters
were shipped in the United States and
approximately 5 million in Canada.7
Youwantthebottom-lineresults,profitability,
andcostreductionsthatIoTcanproduce.
Youknowyourindustry,businessandcustomers,
andwhichconnectionscandrivemaximum
value.Buthowdoyouturnyourvisionsofa
connectedfutureintoareality?
Thebestwaytohelpourcustomerstransform
theirbusinesseswithIoTistoprovidethe
servicesandplatformsthatcovertheentire
technologyvaluechainfromdevicesand
connectivitytoplatformsandapplications.
Thisway,yourorganizationhasthetoolsand
resourcestofocusattentiononinnovation
ratherthanfacemanyofthechallengesthatcan
arisefrombuildingIoTsolutionsforthefirsttime.
Executivesummary
Morethan50%
ofdevelopers
activelyworking
onIoTsolutionsare
thinkingglobally.
WhatdoesIoTmean
formybusiness?
Whatisthereturnon
investmentandhowdo
youseeyourcompany
changinginthenext
2to5years?
Howquicklycanyoutest
theorieswhileminimizing
costs?
DoesyourCIOhavethe
rightmixofdeveloper
talenttodesignandbuilda
newsolution?
Areyourplansglobal?
5Questionseverybusiness
shouldaskbeforeyoubuild
yourfirstIoTsolution:
Source:IDC2
85%
of global organizations
are considering or
exploring an IoT strategy
98
Evaluating
ROI
TheInternetofThingsisgrowingsteadilyalongsidethealreadywell-
establishedsmartphone,tablet,PC,andconsumerelectronicmarkets.
AccordingtoIDC,aglobalproviderofmarketingintelligence,IoTisexpectedto
growatacompoundannualgrowthrate(CAGR)of19.2%throughtheforecast
period(2014–2020),whereasallthe“other”connecteddeviceswillgrowata
CAGRof9.5%.8
TheInternetofThingscanbedefinedastheconnection
ofeverydayobjectsandmachinessothattheywork
seamlesslytogetheracrossmodernnetworks. Thedata
collectedmustbeaggregated,oftendisbursedamongst
legacybackendsystems,storedandanalyzed.Withthis,
thedatacanbetransformedintomeaningfulinformation
inordertocreatenewserviceopportunitiesandoptimize
businessprocesses.
CompaniesoftendeployIoTsolutionsforoneoftwo
reasons–efficiencygainsorcostsavings. Withmore
innovation,companiesarelookingatIoTservicesto
enablenewbusinessmodels,orcreatenewrevenue
streams.Whetheryourinterestsaremotivatedby
costsavingsorimprovedrevenue,theIoTisuniquely
positionedtohelpwithboth.
IoT Versus Other Connected Devices
40M
30M
20M
10M
0
2014 2015 2016 2017 2018 2019 2020
IoT
“Other” connected devices
Decreased
Customer
Churn
Asset&
Inventory
Visibility
Regulatory
Compliance
Business
Process
Efficiency
Improved
Workflow
Management
ImprovedEfficiencies
NewVertical
Markets
New
Capabilities
New
Horizontal
Applications
Improved
Customer
Services
NewBusinessModels
MarketorRevenueGrowth CostReduction
The Internet
of Things: The
connection of
everyday objects
and machines
so that they work
seamlessly
together across
modern networks.
In this report, we define the Internet of Things (IoT) as the digitization of elements of
the physical world, in which products and other “things” are outfitted with intelligent
sensors and tags that let them communicate across the Internet without human
intervention. This definition excludes smartphones and tablets.'
Source:IDC 2015
1110
Thedeveloper’s
conundrumInJune2015,AT&TandIDCfieldedandcompletedasurveylookingtogainadeeper
understandingofdevelopersanddevelopercommunitiesthataretargetingIoTsolutions,
markets,andendpoints.
Duringthestudy,twoprimaryobstacleswereuncovered.First,developersarechallenged
tocutthroughallthenoiseabouttheendlesspotentialofIoTandfindtherightfocus.The
secondchallengeisfindingtherightpartnertoworkwithtobringtomarketanapplication
orsolutionthatiseffectiveor,whereapplicable,revenuegenerating.
+ DevelopingIoTapplicationsischallenging
Themajorityofourdeveloperaudience(53.7%)foundtheprocessof
developingapplicationssomewhatchallenging,withanother9%expressingit
hasbeenaverychallengingprocess.
Q.Pleasechoose
theresponsethat
bestdescribesyour
experiencedeveloping
IoTapplications.
Source: IDC, 2015, n=201
Very
challenging
process
9.0%
Organized
process
37.3%
Somewhat
challenging
process
53.7%
Source:IDC
TheDeveloper’sIoTPlaybook:WhattoExpectandWheretoTurntoFast-TrackYourIoTInitiatives
Theshortageofskilled
mobiledevelopersisthe
primarybarriertoefficient
releasecyclesaheadof
anumberofwell-known
technicalchallenges.
+ AshortageofskilledIoTdevelopersisaprimaryobstacle
Alackofavailabletalenthasdemonstrablyheld
backthepaceofenterprisemobilization.
InAppceleratorandIDC’s3Q14MobileTrends
Report,bothdevelopers41.3%andITdecision
makers33.5%cited“findingskilledresources”as
thenumberoneobstacletotimelyappreleases.
+ TrainingforIoTdevelopmentislimited
82%ofactiveand87%ofaspiringIoTdevelopersindicatedthattechnical
informationislessthanreadilyaccessible.Thisstronglysuggeststhatdevelopers
arelookingtovendorsandserviceprovidersforbetterandmorecomprehensive
toolsetsanddevelopersupportresources,andthatwheresuchresourcesexist,
IoTdevelopmentispoisedtoaccelerate.
Q.Pleasechoosetheresponsethatbestdescribesyour
experiencedevelopingIoTapplications.
Currently
developing
Expect to develop
in 12-18 months
Very accessible
Moderately accessible
Somewhat accessible
Slightly accessible
Not accessible at all
Source: IDC, 2015, n=51
100%
80%
60%
40%
20%
0
18.5 12.5
40.7
16.7
22.2
33.3
18.5
33.3
4.2
Source:IDC
TheDeveloper’sIoTPlaybook:WhattoExpectandWheretoTurntoFast-TrackYourIoTInitiatives
+ TheCaseforaComprehensive,Platform-CentricResource
TheactiveIoTdeveloperssurveyedtellustheyareusingabroadvarietyof
toolsandresourcestosupporttheirwork.Aspiringdevelopers’expectations
aboutresourcerequirementslagbehindwhatactivedeveloperstellusthey
areusinginpractice.Thisdeltahighlightshoweasyitistounderappreciate
theneedforresourcesinanewdevelopmentdomainliketheIoTbefore
projectsareactivelyengaged.
>>GettheFullReport
1312
Drivingthe
connectedcar
revolution
AT&T Drives IoT Innovation
OurgoalwithAT&TDriveistobringtogetherthetopplayersintheindustryto
collaborateandaccelerateinnovationforendusers.Wewanttogiveconnectedcar
driversaccesstoIoTapplicationsthatprovideenhancedincarexperienceswhile
continuingtofocusondriversafety.It’shardtooverstatetheimportanceofthe
safetyfeatures.Theyincludevehicle-to-vehiclecommunicationandvehicle-to-
infrastructureservices.Thiscombinationcreatesanawarenesszonearoundthe
driver’scarthathelpsdriversanticipateandrespondmorerapidly,andappropriately,
topotentiallydangeroussituations.
UsageBased
Insurance
Lease,Rental,
HP&ShareCar
Mangement
Emergency
Call
In-CarVoiceStolenVehicle
Recovery
VehiclePlatform
Vehicle
Navigation
Vehicle
Diagnostics
RoadsideAssist In-Car
Entertainment
&InternetAccess
Connected cars expected
on the AT&T Network by
the end of 2017
Relationships with
the top automakers
in the world 10M+9
1514
Theconnected
caropportunity totalM2Mconnectionsinthe
automotivesectorgloballyby2024
1.2billion
User/Buyer Behavior
• Sharing economy
• Digital native expectations
• Car as a service
Source: Machina Research, 2015
Connected
Cars
External Environment
• Demographics
• Regulation
• Urbanization/traffic congestion
• CO2 constraints
ICT Industry Dynamics
• Telecom market saturation
and declining ARPU
• M2M connectivity
• Big data
• OS player strategies
Auto Industry Dynamics
• Competition and new entrants
• Slowing growth
• Demand for new
revenue opportunities
MachinaResearchestimatesthatatthe
endof2014therewereapproximately
125millionMachinetoMachine
connectionsintheautomotivesector
globally.By2024thiswillhavegrownto
1.2billion,representingaCAGRof23%9
Theabilitytoaddconnectedservices
givestheautomotiveOEMshope
thattheycancreateinnovativedriver-
orientedservicesthatwillbringinnew
revenuestreams,reachoutdirectlyto
theendcustomersoastodeepenthe
relationship,winvaluableafter-sales
servicebusiness,anddifferentiatetheir
carsfromthoseoftheircompetitors.
Formobilenetworkoperators,M2Misa
newandlargelyuntappedmarket,and
theautomotiveindustryisconveniently
structuredasaB2Bopportunitywithasmall
numberofverylargecustomers.Thearrival
ofBigData,theCloud,4Ganddedicated
M2Mprovisioningplatformsmeansthatthe
telecomindustryhassomenewtoolsto
offertheautomotivesector.
Thelastfewyearshavemarkeda
sea-changeduetoonekeyfactor:the
adventofincreasinglyubiquitousaccess
tobroadbandnetworks.Thisallowsthe
intelligencetoresideonthenetworkrather
thanonthedeviceitself.Thenextfive
yearsmayheraldtheshiftfromoffline
toonlineintelligence.
MachinaResearchwillbewatchingthis
dynamicwithsomeinterestoverthe
nextfewyears.If,asexpected,theshift
takestheformoflessintelligenceonthe
deviceandgreaterconnectivity,itwillbe
manifestedinM2Masmuchasinanyother
connecteddevices.Theimplicationsand
timingofthisshiftforM2Mtrafficand
revenueisquitesubstantial.
Thenextgenerationofcarpurchasers
simplywon’tacceptun-connectedcars.It
willseemnaturaltobeabletoaccessweb
applicationsandcontentfromthedriver’s
seat,albeitinwaysthatareappropriateto
anin-carcontext.
Inthenearfuture,theideathatin-car
usersshouldonlyhaveaccesstomedia
contentthattheyphysicallybroughtwith
themintothevehicle,orbroadcastmedia
nottargetedtotheirspecificpreferences,
willseemquaint.
Increasingly,driverswillsimply
expectcars–likemostotherthings
thattheyownoruse–tobeconnected
totheinternet.
Factorsdrivingtheadventoftheconnectedcar
Source:MachinaResearch,2015
Factorsdrivingtheadventoftheconnectedcar
Source:MachinaResearch,2015
1716
Fleet
Management:
End-to-End
TheInternetofThingsgivesfleetmanagerstheabilitytomonitorexactly
whereeveryassetis,24hoursaday,365daysayear.Evenmoreimportant,
businessescanuseIoTapplicationstomeasurehowtheirvehiclesarebeing
used.Thesesolutionscombinereal-timeglobalassettrackingwithawidevariety
ofinnovative,value-addservicestosavethousands,evenmillions,ofdollarsin
unnecessarymaintenance,trafficfines,andinsuranceexpenses.
Security
Tracking
Vehicle
Management
Driver
Management
MobileWorkforce
Management
Transport
Management
Fleet vehicles on
the AT&T network
(as of Q2 2015)
Vehicles makes AT&T’s
service fleet is one of
the largest commercial
fleets in the US
1.9M 74K
1918
TheNorthAmericanfleet
managementmarketis
expectedtoexperience
stronggrowthinthe
upcomingyears
Growthofactivefleet
managementsystemsinthe
NorthAmericanmarketby2019
AT&Tinthe
transportand
telematicsmarkets
15.3%
fleetmanagementsolution
providersintheUSmarketuse
connectivityservicesfromAT&T.
9ofthe
top10
2014
0
2
4
6
7
10
2015 2016
TheNorthAmericanFleetManagementMarket
2017 2018 2019
Active
FMunits
(millions)
Inthefuture,fleetsareexpectedto
usevehicledatainamoreanalytical
fashion.Theywillintegratenew
datasourcestorealizeefficiencies,
includingtheuseofpredictive
capabilitiesformaintenanceand
operations.
BergInsightanticipatesafuture
scenarioinwhichtheglobalfleet
managementmarketisdominatedby
ahandfulofproviderswithinstalled
basesmeasuredinthemillions.
TheInternetofThings-togetherwithBig
Data-isexpectedtocreateamarketplace
fordataanalyticsthatwillfeedinto
decisionsupportforfleetmanagement
andothersolutions.11
AT&Thasextensiveexperienceinserving
theUStransportationmarket.OutofAT&T’s
closeto25millionconnecteddevices,
inservice,transportation-relatedM2M
applicationsaccountforaround2million
unitsinNorthAmerica.
AT&T’sfullportfoliosupportsbasicfleet
trackingneeds,aswellasconsultative
selectionofmoreadvancedsolutions.
Fleetscommonlyadopttelematics
systemsfromAT&Ttoimprove
managementefficiency,proofof
deliveryanddriverproductivitybyusing
applicationsthatstreamlinedispatching,
routing,trackingandreporting.
AT&Tsetsitselfapartfromthe
competitionbyworkingwithastrong
ecosystemofpartners,offeringa
rangeofsolutionsdesignedtoappeal
totheneedsofallsegmentsinthe
transportsector.BothAT&T’shistory
ofsuccessinthetransportation
marketanditsrobustnetworkof
globalSIMcapabilitiesareindustry
differentiators.
Source:BergInsight,201510
Source:BergInsight,201510
2120
B&P’sBottomLineResults
B&PEnterprisesisanemergencyresponsespecialistoperating
200vehiclesandover400otherpiecesofconstructionandmarine
equipmentacrosstheUS.Oneofthecompany’smajorchallengeswas
managingtheirrapidgrowth,includingaccuratetrackingforalloftheir
fleetresources.
B&PturnedtoAT&Tanditsinnovativefleetsolutionstodevelopa
comprehensive,simple-to-implementprogramthatwouldcreate
immediatecostsavings.
“It’sahugebenefit.Thesolutionwascost
effective,andwesawareturnoninvestment
immediately.AT&Talsohelpedussetupand
implementthenewtechnology.”
JamesHinton,EnvironmentalHealth&
SafetyDirector/DoTManager,B&PEnterprises
80%
Fleet solution provided
80% decrease in DOT
violations
86K
Fleet solutions saved
$86,000 annually on
insurance
Fleetcasestudy:
B&PEnterprises
See the
whole story
2322
TheInternetofThingsgivescitiespowerfulnewtoolsforsavingmoney
andoperatingmoreefficiently.Theseinnovative,intelligentsolutions
buildmorelivablecitiestoday,aswellasapowerfulbridgetothefuture.
Smart
Homes
Smart
Energy
Smart
Infrastructure
Smart
Healthcare
Smart
Buildings
Smart
Security
Smart
Governance
Smart
Transportation
66%
of the world’s population
will live in cities by 2050
60-80%
of global greenhouse gas
emissions will be generated
by cities
AT&T
SmartCities Source:UnitedNations,WorldUrbanizationProspects,201412
24 2524
MuellerWater’sBottomLine
WorkingtogetherwithIBMandMuellerWaterProducts,AT&T
isdevelopingasolutionthatmakesitpossibletodetectleaksin
watermains.Thethreecompaniescametogetherafterthefederal
governmentissuedaninvitationforcompaniestoshowcasetheir
smartcitysolutions.
Thisproofofconceptisnowacommercializedsmartwatersolution
forlargecompanies,municipalities,orevenwaterparks–leveraging
acoustictechnologyprovidedbyMuellerWaterProducts.
Acousticsensorsplacedalongthepipestriggeralarmswhenthey
sensesoundchangesthatmayindicateleaks.AT&T’sLTEnetwork
carriesthesensorinformationtocomputingresourcesrunninga
watermanagementapplicationfromIBM.
“AlthoughtherangeofourIoTsolutionscontinues
toexpandandevolve,thepurposeforcreatingthem
remainsthesame:tohelpbusinessesstreamline
processes,reducecosts,bemoreproductive,and
createnewproductsandlinesofbusinesses.”
MobeenKhan
AT&T,AVPIoTStrategyandProductManagement
Smartcitycasestudy:
MuellerWater
Products
6 billion
gallons of water lost
per day in the US
30%
of the pipes serving
populations of +100,000
are 40 to 80 years old
Source:U.S.EnvironmentalProtectionAgency13
Source:AmericanSocietyofCivilEngineers14
2726
AT&TandtheSmartGrid-
Aninsightintobestpractice
enablersintheU.S.utilitysector
RationalizingaDataPlan
forSmartGridMeters
AT&T’sutilitystrategytargetsfourspecificareas:
ReducingComplexityto
ImplementSmartGrid
CapitalizingonChanges
totheExistingMeter
Infrastructure
DevelopingCellular
ReferenceDesignfor
InternetofThings
CombinedutilitiesintheUSgenerate
approximately$370billioninannual
sales,makingitoneofthemost
importantandvisibleverticalsinthe
IoT.Bringingtheindustryintothe21st
centuryisessential,withAT&Tbeingan
importantenabler.16
However,utilitieslosebetweenonehalf
and1%ofrevenuetounpaidbillsthat
aretypicallywrittenoff.Thistranslates
to$1billion.17
Oneofthemoresuccessfulapproaches
todatehasbeentoimplementpower
curtailmentmeasuresbymodernizing
theexistingmeteringinfrastructure.
Investmentinsmartmetershasproduced
agrowingmarketforpromoting
sustainabilityinitiativesinwhich
companiessuchasAT&Tareplayingan
importantroleasanenablerthroughits
wirelessofferings.
AT&Thasalsobeenapioneerindeveloping
cellularreferencedesignsforsmartgrid
devices.In2013,AT&Tformedaglobal
partnershipwithGEthatledtothe
developmentofsmartgriddevicesfor
smartmetersandIoTdevicesforsmart
cityapplications.
TheAT&TM2XDataServiceisanother
exampleofenablingoffuturetechnologies
consistingofamanagedservicefor
developersaimedatadvancingIoT
applications.Thiscloud-baseddatastore
letsenterprisescollect,analyze,andshare
datathatcanbetrackedoveraperiodof
timefromconnecteddevices. Forthe
utilities,thisisanimportanttoolfor
enhancingedgecomputingtothe
grid,allowingforthedecentralized
rectificationofissuesaroundoutage
management.
Tomakeiteasytosupportprepaidenergy,
AT&T’sCellularReferenceDesignforGE
residentialelectricmetersenabledprepay
technology.
AT&T’sutilitystrategytargetsfourspecificareas:
Percentageofcountry’s
powertransmission
system+25yearsold70
Source:ExecutiveOfficeofthePresident15
2928
AT&T Cargo View with FlightSafe®
Accessglobalsupplychainawarenessandstayincontrol.
AT&TCargoViewwithFlightSafe®
putsyouincontrolandhelpsyoustayontopof
yourshipmentsfromendtoend.FlightSafe®
deviceswithsensorstravelwithyour
cargoandstreaminformationdirectlytoyou,soyoumaximizevaluabletrackingdata
andclosemonitoringgaps.Whetheryourcargoisonthegroundorintheair,thereis
nodetailtoosmallwhenitcomestoyourbusiness.
GPS Temperature
Sensor
Pressure
Sensor
Light
Sensor
Shock
Sensor
Motion
Sensor
27
Airlines worldwide
have approved the
use of AT&T Cargo
View on their flights
280K +
Containers monitored
globally by AT&T
Yoursupply
chainunder
yourcommand
3130
Theneedfor
proactiveresponse
Supplychainshavebecomelargerandmoreinterconnected.
Theglobalizationoftheeconomyhascreatednewchallenges
fortransportationandlogisticsproviders,including:
•	 Higheroperatingcostsandcommodityprices
•	 Anew,morecomplicatedregulatoryenvironment
•	 Theneedtotransformcrewproductivityandoperations
•	 Fleetmanagementoptimizationandondemandassetavailability
•	 Demandforcustomerserviceimprovements
In2014,eyefortransportinconjunctionwithAT&Tconductedaglobalsurvey15
ofshippersandlogisticsproviderstofindouthowthesupplychainviewsthe
importanceofoperationalvisibilityandmonitoringtechnologiesnowandinthe
future. Keyfindingsinclude:
TimelinessofInformationisthenumberone
challengeinthesupplychaintoday
Whenaskedaboutthenumberoneprobleminthesupplychaintoday,65%of
respondentswhohavenotdeployedvisibilitysolutionssay‘timelinessofinformationis
a‘bigchallenge’.Thiscomparesto46%sayingthesameforthosewhohavedeployed
solutions.Thisdataillustratesthatoperationalvisibilitysolutionsaredramatically
reducingtheproblemoftimelyinformationandcanbeinterpretedasaprimary
solutionwhenproblemsdoexist.
Increasingvisibilityisatoppriorityforthose
responsibleforthemovementofgoods
Whenaskedhowimportantoperationvisibilitytechnologiesaretotheirbusinesses,
around90%ofrespondentsreportthatimprovingoperationalvisibilityandreal
timeinformationiseither‘criticalandnecessary’or‘veryimportant’. Statedanother
way, Lessthan1%ofallrespondentssaidimprovingoperationalvisibilitywas‘not
important.”
ThetechnologyoutlookforIoTsolutionsinuseby
thetransportationandlogisticsindustryisstrong.
Thetechnologytrendforoperationalvisibilityintransportationandlogisticshas
nowreachedapointwheredeployingacompelling,automatedsolutiontomonitor
goodsintransitiscommonplace.Thenewemphasisregardingreceiptoftimely
informationisinanumberofareas;notjustlocation,buthumidity,temperature,
andsecuritycanalsobesolvedwiththeadoptionofafullyautomatedIoTsolution.
Companiesexpecttosee
ROIwithin2years.
Thereturnswillalsocomefasterthanyoumaythink.
80%ofcompanieswhohavealreadydeployedsome
solutionsandlookingtoexpandtheiruse,believe
thattheywillgetareturnwithin2yearsontheirnew
deployments.
Within
2 year
Between
2-3 years
More than
3 years
80%
11%
9%
Companiesthatusemonitoringtechnologies
aremovingbeyondlocationdata
Locationinformationisveryprevalenttodaywithover80%usingitwithinthesupply
chain.Howevertheindustryhasmovingbeyondreportingjustlocation,withover
40%ofrespondentsreportingtemperaturedataandover40%usingvisibilitydatafor
securityreasonstocombattheft.Otheroperationvisibilityinformationinuseincludes
enginetelemetry,tiltsensors,tirepressures,driverperformance,andproofofdelivery.
7%
29%64%
46%
42%
1%
11%
Do not yet have any
operational visibility
technologies
Do currently use
operational visibility
technologies
Critical & necessary Very important Somewhat important Not important
>>GettheFullReport
3332
Maersk’sBottomLineResults
Inoneofthelargestagreementsofitskind,Maerskisworking
withAT&Ttotrackandmonitortheconditionofrefrigerated
containerswithperishablegoods.BeforeAT&T’ssolution,onsite
supplychainmanagerswereforcedtochecktheconditionofeach
containermanually.Maersknowhasnear-real-timevisibilityintothe
conditionsofeachrefrigeratedcontaineratalmostanypartofits
journeyalongthesupplychain.Shippingsupervisorscanmonitor
mechanicalperformancetohelpensuretheequipmentisinproper
workingcondition.
“AT&T’stechnologyhelpingensurecontainer
conditionsareoptimizedandtheircontents
arriveinpropercondition–nomatterthelength
ofthejourney.”
AmdiKrogh,MaerskLine’sVicePresident
andHeadofAssets&Deployments
+280,000
Refrigerated containers
monitored via wireless
619
Maersk Line is the world’s
largest container shipping
company
Assetmanagementcasestudy:
MaerskLine
Container
Vessels
3534
TakingtheNextStep Sources
1.	 InternetofThingsinLogistics,DHLTrend
Research|CiscoConsultingServices,2015
http://www.dhl.com/content/dam/Local_Images/g0/New_
aboutus/innovation/DHLTrendReport_Internet_of_things.pdf
2.	 TheDeveloper’sIoTPlaybook:WhattoExpect
andWheretoTurntoFast-TrackYourIoT
Initiatives,IDC,2015
3.	 WorldwideInternetofThingsForecast2015-
2020,IDC,2015
http://www.idc.com/getdoc.jsp?containerId=prUS25658015
4.	 InternetofThingsinLogistics,DHLTrend
Research|CiscoConsultingServices,2015
http://www.dhl.com/content/dam/Local_Images/g0/New_
aboutus/innovation/DHLTrendReport_Internet_of_things.pdf
5.	 TheConnectedCar,FleetManagement,and
Telematics,M2MNowMagazine,April-May2015
http://www.m2mnow.biz/2015/04/27/32498-m2m-now-
magazine-april-may-2015/
6.	 AT&TintheTransportandTelematicsSpace,
M2MNowMagazine,April-May2015
http://www.m2mnow.biz/2015/04/27/32498-m2m-now-
magazine-april-may-2015/
7.	 AT&TandtheUtilities-Aninsightintobest
practiceenablersintheU.S.utilitysector,M2M
NowMagazine,July-August2015
http://www.m2mnow.biz/2015/07/08/34626-m2m-now-
magazine-july-august-2015-edition/
8.	 TheDeveloper’sIoTPlaybook:WhattoExpect
andWheretoTurntoFast-TrackYourIoT
Initiatives,IDC,2015
9.	 Visibility,SpeedandAgility:HowM2Mis
redefiningtheSupplyChainandTransportation,
eyefortransportReports,2014
10.	 AT&TintheTransportandTelematicsSpace,
M2MNowMagazine,April-May2015
http://www.m2mnow.biz/2015/04/27/32498-m2m-now-
magazine-april-may-2015/
11.	 ibid
12.	 WorldUrbanizationProspects,
UnitedNations,2014
http://esa.un.org/unpd/wup/highlights/wup2014-highlights.pdf
13.	 TheCleanWaterandDrinkingWater
InfrastructureGapAnalysis,U.S.Environmental
ProtectionAgency,2002
http://www.m2mnow.biz/2015/07/08/34626-m2m-now-
magazine-july-august-2015-edition/
14.	 InfrastructureReportCard,AmericanSociety
ofCivilEngineers,2009
http://yosemite.epa.gov/water/owrccatalog.nsf/
7322259e90d060c885256f0a0055db68/
7a8df50b74d1585585256c44005dba46!opendocument
15.	 EconomicBenefitsofincreasingElectricGrid
Resilience,ExecutiveOfficeofthePresident,
August2013
http://energy.gov/sites/prod/files/2013/08/f2/Grid%20
Resiliency%20Report_FINAL.pdf
16.	 AT&TandtheUtilities-Aninsightintobest
practiceenablersintheU.S.utilitysector,M2M
NowMagazine,July-August2015
http://www.m2mnow.biz/2015/07/08/34626-m2m-now-
magazine-july-august-2015-edition/
17.	 ibid
WhiletheInternetofThingsmaysometimesseemslikeanewbuzzword
ortechnologyfad,itishardlynewatall. Themovetowardsaddingsensing,
diagnostic,andcommunicationscapabilitiestothe“things”thatare
importanttoabusinesshasbeenslowlymovingforwardforatleastlast
twodecades.
Whatisnew,however,istherapidpaceofinnovationaroundit,andthe
expectationsonwhatitmeanstobusiness. Justastheinternetprogressed
quicklyfromanunknowntechnologytothedominantvehicleforglobal
informationexchange,andtheSmartphonehasgonefromluxurydevice
toaubiquitousoneinnearlyeverycorneroftheglobe,IoTwilllookradically
differentinjustafewyearstime.
Pricedecreasesinsensors,chips,andbroadbandaccesscoupled
withourimprovingabilitytostoreandusedataintheCloudisdrivingthe
currentstageoffastIoTgrowth. Howeverthisrapidinnovationwillonlybe
usefultocompanieswhocanmasterthebusinesslogicneededtomake
itservetheirpurposes.
Thisreporthasdetailedmanyofthechallengesandopportunitiesthat
businessleadersandtheirteamswillfaceastheymoveforwardwithplans
thewillincorporatetheIoTintotheirbusinesses.
FormostbusinessesthekeyquestionisnotwhethertoadoptIoTsolutions,
buthowtobestusethem.
Ultimately,acompany’sabilitytorealizethetruepotentialoftheInternetof
Thingsisdrivenbyitsskillinutilizingtheconnectivityandinformationthat
comesfromit. AT&Thashelpedcompaniesbigandsmallconnectmore
than25millionIoTdevicestoournetworkandthenumberisgrowingevery
day.Isyourbusinessreadytotakeadvantageofthenewpotential
theInternetofThingsdelivers?
Startaconversationwithustodaybyvisiting www.att.com/iot.
3736
©2015AT&TIntellectualProperty.Allrightsreserved.AT&T,theGloballogoandothermarksaretrademarksandservicemarksofAT&TIntellectualPropertyand/orAT&Taffiliatedcompanies.
Allothermarkscontainedhereinarethepropertyoftheirrespectiveowners.Theinformationcontainedhereinisnotanoffer,commitment,representationorwarrantybyAT&Tandissubjecttochange.
att.com/IoT

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