Académique Documents
Professionnel Documents
Culture Documents
business thrive.
Five invaluable steps to get the most
out of the Internet of Things.
2
Contents
Foreword 4
Executive summary 5
1.0 Introduction 6
5.0 Conclusion 31
6.0 Appendix 32
6.1 Why Telstra? 32
7.0 References 36
8.0 Abbreviations/Acronyms 37
3
Foreword
As I reflect on my recent interactions with customers Telstra has a long and proud history of innovating for the
across the globe, it’s clear that IoT has come of age. benefit of our customers and we continue to invest in our
In recent times, there has been a lot of buzz about the great networks and technologies to make this possible.
Internet of Things (IoT) and the impact of a new era of
business productivity. I’m delighted to share our thoughts And when it comes to IoT, we are well positioned to help.
on IoT in this latest Telstra discussion paper, ‘How to make By way of example, right now we have several local councils
your business thrive: Five invaluable steps to get the most piloting sensor networks to monitor environmental
out of the Internet of Things’. In it, we look at what the IoT is, conditions (noise, humidity and CO2) so they can improve
what it can offer your organisation, and some tips and tricks their planning. (They now have historical and near real-time
for those considering adopting or scaling up an IoT solution. data to inform town planning strategy and urbanisation
impact studies.) We also have other councils using sensor
IoT is essentially about making business ‘smarter’ with feeds from streetlights and power grids to optimise
networked devices that contain sensors, software and operating times and reduce costs while continuing to deliver
electronics to collect and exchange data. Through analytics the same quality of service to their communities. Meanwhile,
and automation, IoT helps organisations and individuals one of Australia’s founding manufacturing companies,
to make more informed decisions. It can also help to drive Sutton Tools, is embracing IoT for quality control, machine
change, improve business efficiencies, reduce costs optimisation and reduced maintenance costs.
and make organisations competitive in a global market.
IoT is poised to become a cornerstone of business Telstra’s Chief Scientist Dr. Hugh Bradlow also says: “While
innovation and growth, and its impact on Australian previous IT revolutions have impacted particular tasks or
industries will be significant. segments of the economy, IoT can be applied across the
board. All industries are open to being revolutionised and the
However, there are a number of factors that we recommend status quo of today is quickly becoming a thing of the past.”
our customers consider when contemplating an IoT
initiative. It’s important to understand – up front – the key Michelle Bendschneider,
issues and opportunities within your business. This covers Telstra Executive Director Global Products, 2016
everything from the steps you need to take for a great
execution to choosing the right technology, defining the
right operating model and selecting the right partner to
deliver your desired result. And then there are the project,
device, network, platform and application considerations
and decisions, all of which will be key to the successful
rollout and ongoing management of your solution.
4
Executive summary
IoT solutions are far from ‘one size fits all’. The right
solution for your organisation depends entirely on your
business challenge or strategic goals. While the decisions
(and impacts) at each step of the process may appear
daunting, they are all made easier with a suitably
experienced IoT partner to guide you through the process.
The Internet of Things is here, it’s real and it will have a As Telstra’s Director of Business and Enterprise Mobility,
profound impact on every aspect of our society. This paper Mark Chapman, observes:
aims to help businesses with the key points for their
business strategy when looking to implement or extend “Businesses aren’t just competing locally
an Internet of Things (IoT) solution.
anymore. They’re competing with the
IoT is essentially a network of connected devices supported world… That means being cost-effective,
by a platform that integrates and manages multiple
systems and data points, with insights from data analytics
being efficient and delivering the best
driving business value. product to your customers that you
possibly can. IoT is a way of actually
IoT promises tremendous opportunities for innovation,
driven in part by insights from data analytics and near
optimising your business to deliver
real-time connectivity on an unlimited range of devices the best outcomes for your customers
or ‘things’. However our research has shown us that there at the best price.”
is a lack of IoT understanding and this is a critical path to
overcome before any IoT deployment. This suggests that As more IoT use cases come to light, we will continue
there is significant unrealised potential for IoT among to share with you insights into innovation and competitive
Australian organisations. advantage from Telstra customers who are adopting
a ‘smarter’ business model of the future.
5
1.0 Introduction
Telstra has produced this white paper to help you – We will explain what IoT is and how it differs from M2M,
as a mid-sized business, large enterprise or government demonstrate the potential with real world examples and
organisation – understand the key considerations for your provide actionable information to enable your organisation
business strategy when looking to implement an Internet to exploit the opportunity. This paper will help you identify
of Things solution. Our step-by-step plan includes five how you can use IoT to drive innovation and improve
invaluable points to help you increase productivity or set service, reduce cost, improve productivity and increase
your organisation apart from the competition. And while efficiency for your business.
IoT has equal applicability in the home (heated to your
preferred temperature for your pending arrival or remote We examine the key technology considerations for IoT
access to appliances to improve one’s lifestyle), this paper as well as looking at the steps to take when planning your
primarily explores considerations for IoT in the business IoT implementation or evolving an existing deployment.
context. Key industries embracing IoT solutions are the
mining sector, financial services and local government. But first, what is the Internet of Things?
We are also seeing adoption in the manufacturing,
transport and logistics, and retail sectors.
6
2.0 What is the Internet
of Things?
• and, in some cases, actuators (a type of motor that “When Telstra thinks about IoT,
is responsible for moving a mechanism) that perform
control functions under command from the central we think about three things: innovation,
computing resources. the network and security. It’s about
In other words, information from the sensors is sent over
taking what you do well today and making
a network to be processed by a computer so that the it better. Whether you want to optimise
business knows what is happening and can make better cost, improve your customers’ experience,
informed decisions. Many IoT applications also incorporate
data analytics so that additional intelligence can be
or improve a process to make things better
gleaned from aggregating large volumes of data generated for your staff, IoT can solve the problem
by small or large numbers of sensors. For example, it’s one for you.”
thing to know that there is traffic congestion; it’s far more
useful to know the cause of the traffic congestion and
alternative safe routes that can be used to reroute traffic Mark Chapman, Director of Business
and convey that directly to drivers. and Enterprise Mobility, Telstra
7
2.0 What is the Internet
of Things? (cont.)
8
2.2 International IoT examples Efficient resource and energy monitoring
The changing pace of logistics ‘IoT sensors are ideally suited to tracking all kinds of
resources, including petroleum and natural gas, electricity,
‘Fleet management is crucial at the Port of Hamburg, and water. And IoT technology has strong potential to
which is the second busiest port in Europe. Its ‘smartPORT’ enable greater environmental sustainability. IoT can reduce
initiative has raised efficiency and prepared the port waste, prevent disasters, and be a critical component of
for additional growth. The overall goal is to maintain, the smart energy grid of the future. Utility organisations,
modernize, and improve the Hamburg Port Authority’s municipalities, oil and gas companies, and consumers
IT infrastructure to support efficient operations and themselves are among the many entities and individuals
economic development, while minimizing the impact of tapping into IoT capabilities to optimise their use
traffic on local citizens. An IoT-based approach coordinates of resources.
all aspects of harbor operations impacting ship, rail,
and road traffic. So far, the Hamburg Port Authority has Hagihon, Israel’s largest municipal water utility company,
installed more than 300 roadway sensors to monitor traffic is leading the way in using smart devices to improve
in the port area and to track wear on bridges. Digital water-system management, maintenance, and revenue
signs and mobile apps give drivers traffic and parking collection in the Jerusalem area. In a semi-arid climate,
information. Sensors also extend to waterways (using radar Hagihon has reduced water loss while preserving the
and automatic identification systems to coordinate ship company’s bottom line.
traffic), and a solution that integrates roadway traffic data
to help manage traffic disruptions that may occur when
ship traffic requires bridge closures around the port area’.1
9
2.0 What is the Internet
of Things? (cont.)
The company replaced a traditional, labour-intensive work Major international retailers are already applying
model with a smart-technology solution, implementing IoT data to drive experience and sales
a mix of both high- and low-tech strategies, and cultivating
several key technological partnerships, to increase ‘Online retailing giant Amazon is once again disrupting
efficiency and profitability. Pump and in-ground bricks and mortar retailing with the Dash Button, a Wi-Fi
sensors allow easy tracking of water pressure and flow. enabled device that is mapped to specific consumer
A supervisory control and data acquisition (SCADA) packaged goods products like laundry detergent. Stuck
system controls functions based on sensor data analysis. to a washing machine, all a consumer needs to do when
A geographical information system (GIS) provides a the current supply is running low is tap the button and
real-time map of current conditions. Fixed acoustic that generates an order, transaction and delivery of a fresh
sensors, combined with mobile, cloud, and GPS technology, supply of detergent.
can pinpoint water leaks underground, while ERP and
mobile apps support field technician productivity. This Nordstrom tracks pins on Pinterest to see what products
impressive leak detection system has resulted in are trending, and uses that on signs in-store to show
a significant decrease in overall water loss, and has shoppers what interests their peers.’2
increased profitability. The system has also improved
labour efficiency, with sensors taking data collection A new era of self-health management – integration
that was previously conducted manually. This has of health with large data sets
generated substantial cost savings’.1
‘A recent strategic partnership between Philips and
IoT-enabled preventative maintenance on Salesforce.com led to the creation of a platform that
production floor enables medical devices to operate in conjunction with
deep sets of data. The analysis of this data – amassed
‘IoT enables managers to understand what is occurring through electronic medical records, diagnostic information
at a given moment in a factory environment – the gathered through imaging equipment, monitors and
performance of machines, ambient conditions, energy hand-held personal devices – enhances the decision-
consumption, status of inventory, or the flow of materials. making powers of professionals and enables patients
Preventative maintenance is a key use case of IoT, and to take a more active role in managing their personal
this is particularly critical in a production-floor setting. health. These innovations are transforming not just
Sensors can alert managers (or machines) that a physical the care of the chronically ill but those who are and
asset in the factory is exceeding acceptable levels of want to remain healthy.
vibration or temperature, is malfunctioning, or is otherwise
prone to fail. This has major implications in terms By the end of the decade, this data-rich personalised
of overall equipment effectiveness (OEE), a key metric analysis of our health will become the norm. Individuals will
of manufacturing productivity, and has positive ripple be provided with tailor-made strategies to combat illness
effects throughout the supply chain. and social technologies will enable us to manage our own
health. From the data generated, we will learn how to
Continental Tire provides a good example of a connected improve our wellbeing and be motivated to take control’.3
production floor. The company was experiencing
production delays due to misplaced components for tire
manufacturing in its enormous plant environments, relying
on grid lines painted on the floor and handwritten notes
to locate ‘carriers’ (carts) holding sheets of rubber and
other tire components. Now, Wi-Fi sensors are placed
on carriers and integrated with an inventory management
system, so that employees can view individual carrier
locations on their mobile devices. These appear as icons
superimposed on a map of the facility. As a result,
Continental has increased production efficiency,
and cut wasted component costs’.1
10
3.0 How important will IoT be?
“The literature abounds with predictions The Australian Communications Alliance (Australian
Communications Alliance, 2015)6 suggests that the local
on the value and scale of IoT.”4 market for IoT could have a positive impact of $116 billion
on the Australian economy by 2025. They suggest there
McKinsey & Co, 2015 is “opportunity for Australian businesses to become a
significant exporter of business solutions by IoT provided
the policy and regulation setting can be optimised early
The numbers alone don’t convey the expected impact
to support business-led innovation”.
of IoT. McKinsey says the central finding of its report
“is that the hype may actually understate the full potential
Deloitte7 (TMT Predictions 2015) predicts that in 2015
of the Internet of Things.” However, this comes with the
one billion wireless Internet of Things (IoT) devices will
caveat that “capturing the maximum benefits will require
be shipped, up 60 per cent from 2014, and leading to
an understanding of where real value can be created and
an installed base of 2.8 billion devices. It says the global
successfully addressing a set of systems issues, including
market for IoT-specific hardware (which could be a relatively
interoperability.”
expensive cellular modem, or a much cheaper Wi-Fi chip)
is likely to be worth $US10 billion, and the associated
McKinsey puts an upper limit on the potential economic
services enabled by the devices worth about $US70 billion.
impact of IoT in 2025 of $US11.1 trillion, or about 11 per cent
of the World Bank’s estimate of the value of the world
Finally, IDC8 (International Data Corporation, 2015) suggests
economy by that time.
that 73 per cent of organisations have already deployed
or intend to deploy an IoT solution within 12 months.
Australian market research company Telsyte forecasts
(Telsyte, 2016)5 that spending on IoT home products and
The volume of commentary around IoT has certainly
services in Australia will grow almost 11-fold in the next
created a strong level of interest and a review of global
four years from $289 million in 2015 to $3.2 billion
commentary suggests that there is a transitory shift
in 2019, by which time it expects every household to have
to IoT (admittedly more quickly in mature and developed
24 Internet-connected devices, up from nine in 2015.
economies such as the US, Europe and Australia than
developing nations). Indeed, the IDC research appears
to support this shift with 58 per cent of organisations
surveyed citing IoT as ‘strategic’ and 24 per cent
regarding it as ‘transformative’.
11
4.0 Key IoT considerations
If you are thinking of deploying an IoT solution there are five 3. Choose the right technology:
key aspects you need to consider, from identifying the right
business problem to selecting the right partner. We explore a. Device – sensor or microprocessor?
these in more detail below.
b. Communication network – what do you need?
1. Identify the right problem – what are your business’s What’s the data rate, coverage, cost, battery life,
issues, constraints and growth opportunities? latency, reliability?
Depending on your business, these may involve
a desire or need to: c. Platform – again, consider your needs: reliability,
data aggregation and visualisation capability,
a. Improve the efficiency of your business operations. developer capability, scalability, openness,
SIM and device management capability?
b. Reduce your asset/device maintenance costs and
equipment failures (via proactive maintenance). 4. Define the right operating model – self manage
or outsource to a third party with proven expertise?
c. Improve your customer engagement and/or
differentiate yourself from your competitors. 5. Select the right partner – what IoT ecosystem can they
offer? What’s their expertise in scoping, implementing,
2. Get set for a great execution – do you have executive monitoring and managing a solution like yours?
endorsement, consensus on your business issues and
opportunities? Are your IoT deliverables aligned with Each of these areas is explored in more detail in the
your business strategy, and do you understand the following sections.
implementation and logistical impacts?
12
The TRA data also suggests organisations perceive IoT
4.1 as a source of innovation and great potential for the
STEP 1: Identify the right problem business and are looking for examples to help them
plan their own IoT activities.
Identifying and understanding your business problem A search of the Internet will offer up many real world
is the key to developing the right IoT solution examples of IoT implementations – of every kind and
across every industry. These can provide inspiration if
As Telstra’s Director of Business and Enterprise Mobility, you are looking to explore how your business can usefully
Mark Chapman, observes: “Businesses aren’t just exploit IoT. At the very least, you should be able to translate
competing locally; they’re competing with the world. some case studies, at a high level, into something
In order to be effective in that landscape, you’ve got to applicable to your own operations. The challenge then,
be doing it as well or better than your competition, not just from an organisational and technical perspective, is
[the company] next door, but also overseas. That means slotting together all the pieces to translate the concept
being cost-effective, being efficient and delivering the best into a working IoT system.
product to your customers that you possibly can. IoT offers
a way of actually optimising your business to deliver the There are predominantly six broad use cases for
best outcomes, at the best price.” companies to consider for IoT:
According to the Accenture and Economist Intelligence Unit Projects can be typically driven by four key
CEO Briefing 20159 report, From Productivity to Outcomes considerations. In other words, the company
– Using the Internet of Things to drive future business may want to:
strategies, (Accenture, 2015): “The vast majority of C-suite
executives (84 per cent) believe that their organisations • Optimise operations;
have the capability to create new, service-based income
streams using IoT. Despite this, a mere seven per cent have • Reduce cost;
developed a comprehensive strategy and committed
investments accordingly.” • Enhance customer engagement;
A survey of 253 Australian organisations in September 2015 • Differentiate through innovation in the market.
undertaken by Tech Research Asia10 (TRA) (Tech Research
Asia, 2015) found that 28 per cent of respondents said they Or any combination of the above.
needed to understand IoT better before determining
whether a strategy was needed, and 24 per cent admitted With these considerations in mind, it is important that
to having an ad hoc approach to IoT. all stakeholders in your organisation are clear about
the business challenge you face and the inherent value
The TRA analysis also showed that “lack of IoT offered by an IoT solution.
understanding” was ranked the most important obstacle
to overcome before embarking on an IoT deployment by
24 per cent of respondents, followed by the “lack of IoT
business case” (18 per cent). All of this suggests that
there is significant unrealised potential for IoT among
Australian organisations.
13
4.0 K
ey IoT considerations
(cont.)
14
Nufarm’s new ways to benefit farmers: better crop University, North Metropolitan TAFE, Police Academy
quality and yields increase productivity and City of Joondalup) to progress digital initiatives
in partnership. The City is the driver of innovation and
Nufarm is an Australian-based, global specialist in crop economic growth for the north-west metropolitan region
protection and seed technologies and is collaborating of Perth, boasting one of the largest concentrations of
with Israel-based firm, Phytech, to introduce their plant knowledge-based activity in Western Australia and [we]
monitoring and agriculture analytics system to Australia. continue to experience growth. We need to be conscious
This system provides near real-time monitoring via in-field that with digital transformation set to play a key role in
devices connected to Telstra’s mobile network on a range government services and operational delivery in the future,
of parameters that allow growers to optimise inputs and government agencies need to reassess their business
make better informed decisions that improve both the models and shift towards a more mobile and agile way of
quality and yield of their crops. business. We firmly believe this project will demonstrate
the City’s leadership in digital transformation for the
Nufarm Australia GM Lachlan McKinnon observes: benefit of the wider community.”
“This leading edge technology is helping growers make
timely decisions on how best to manage their crops. These customer examples demonstrate how IoT can
This IoT solution represents the innovation and growth be used to provide market differentiation and improve
that is possible using technology in Australia to set a new productivity. In the next section, we look at what’s
precedent for best practice farming. It supports growers involved in a great execution.
by giving them the information to make timely decisions
on how to best manage their crop. This is particularly
valuable for Australian farmers who work with the inherent
challenges of our landscape, with the variability in The City had many discussions internally
seasonal conditions… there is a plethora of opportunity – and with Telstra on this project.
across a whole range of crops.” The City wanted to:
Improving citizen service delivery and amenities • Improve business and service delivery; for
management in the City of Joondalup (WA) example, through improved asset management
planning and a better understanding of
One of Western Australia’s largest local governments has maintenance requirements and the life
embarked upon an IoT proof-of-concept to provide smart of assets;
infrastructure and technology-based solutions to its
174,000 citizens. The City of Joondalup started its IoT • Increase the City’s competitiveness from
deployment in early 2016 by embedding a range of sensors an economic and/or marketing point of view;
in one of its largest coastal parks. The aim is to provide for example, through IoT-enabled
improved services, availability and safety. The wide-ranging push notifications;
initiative is a significant part of the city’s “Digital Strategy”
and involves everything from waste management to street • Provide near real-time data to aid
lighting, parking, asset usage and management, and decision-making; for example, to assist
logistics (route optimisation and scheduling). The City in determining the location and number
expects key benefits across three broad areas – cost of assets in parks.
reductions, improved workplace efficiencies and improved
asset management planning.
15
4.0 K
ey IoT considerations
(cont.)
16
IoT research from Machina11 (Machina Research, 2015)
uncovers some important things you should consider 4.3
before embarking on an IoT project. STEP 3: Choose the right technology
For a start, an IoT implementation should be driven by a
C-Level executive and not seen simply as an IT or product Your choice of technology will involve several key building
development project. IoT can significantly transform and blocks. The foundation blocks need to look at what ‘things’ will
change the nature of your business; either by improving be connected – devices and assets such as radio modules,
your operational processes, enabling new business models sensors, gateways and smartphones. Then there is a layer
with near real-time data, or delivering new customer that includes access networks and subscription management
experiences and engagement models through connected systems. You need to think about your requirements around
devices and services. Telstra would also suggest that cellular, satellite, Wi-Fi, fixed broadband, Bluetooth, RFID
cultural change is required for an IoT solution. C-level or NFC, ZigBee, or perhaps private radio.
support and endorsement will be key to driving this
successfully through your organisation. On top of this is the layer that’s designed to make
the management of your connected services simple
IT research firm, CIO12, says that many of the early and meaningful: this includes everything from device
IoT installations were done outside the purview of management, to data management, data and visualisation.
organisations’ information or operational technology units. In this layer, you’ll be able to define your requirements for
They liken the situation to the emergence of ‘shadow IT’ platform features, firmware, activation, storage, analytics,
where business units implement IT resources (such as alerts, query management and dashboard views.
cloud computing) to meet their immediate business
requirements, and without consulting the IT department. 4.3.1 Devices – sensors and microprocessors
With IoT too, such independence may cause issues later
on – for example, when you try to scale your solution Moving towards IoT involves a decision about the hardware
or align to other in-house systems to maximise the and devices you will connect to your access network, the
opportunities of big data. Internet and your backend servers or databases. These
devices may include end sensors, RF modules, gateways
Even a cursory investigation into IoT applications is likely and firmware. The cost of these IoT-enabled devices will
to produce a significant number of potential projects, vary depending on the type of device chosen.
so it’s essential to undertake a preliminary cost/benefit
analysis to prioritise these. For the initial projects, Overall, the cost of producing small sensors has fallen
ease of implementation should rate highly in the by nearly 90 per cent in the past five years13, making it more
assessment process. economically feasible to incorporate them into devices
(and thus to enable many new IoT solutions not previously
It’s also important to consider your software and considered possible).
application requirements. How easy will system integration
be? What resources will be required and can this need Device cost also has an impact on the type of connectivity
be accommodated within your existing business? you choose. You may be happy with a low-cost option –
How will this affect your current operations? a 20 cent RFID sticker for tracking a carton, for example
– but a high-value piece of machinery may merit a
Any solution requires an application. Depending on $100 Internet-connected GPS tracker.
your needs and budget, this can possibly be purchased
‘off the shelf’ from one of the many vertical applications We recommend that any IoT devices are tested and
currently available. Alternatively, it may need to be custom- certified to ensure optimised coverage and performance.
built to suit your precise need. These considerations Fewer dropouts and stable device performance can make
and options are made simpler if you engage a capable all the difference to data feeds and the inherent value.
IoT provider who can work with you to guide you through Prior to purchase, we suggest that devices are tested under
these aspects of the decision-making process. various conditions so you can be assured of a seamless
rollout. Are the devices futureproof? How can software
updates be effected with minimal ease and cost without
removing hardware. What technical support is available
if you find that your devices are not operating with optimal
efficiency? All of these factors are worthwhile discussing
to ensure that short and long term IoT solutions
are successful.
17
4.0 K
ey IoT considerations
(cont.)
4.3.2 The communication network – your critical link An example of such a solution can be seen at the
construction company, Laing O’Rourke, which is in
“Unlike a mobile phone, an IoT device can’t the process of developing a smart hard hat for their
construction workers. The hard hat is fitted with sensors
move to get the best reception so network in the headband and a short range ZigBee wireless
becomes even more important and more transceiver. It monitors the wearer’s pulse, temperature
and activity level, and the ambient temperature and
critical... the network is pivotal to broad- humidity. The company is looking to realise a number of
based, very secure, low latency solutions.” safety benefits, but its primary aim is the early detection
of heat stress, which is often at dangerous levels by the
Mark Chapman, Director of Business time symptoms become evident. Data from all the hats
on a construction site is consolidated in a central unit
and Enterprise Mobility, Telstra that communicates with a central monitoring station over
3G cellular networks.
The communication network is a vital component of any
IoT implementation, and there are many variations and As Nufarm, the global provider of agricultural services
combinations of technologies available. Your final choice commented in relation to farming applications: “The
will depend on your particular IoT implementation and your network is absolutely critical to the solution and, given the
business requirements. The key determining factors include: remote locations of our customers, we need to ensure that
whatever we deploy works. Having a lack of connectivity or
• Device and solution availability; not being able to get devices on a network can be terminal.”
(Nufarm Limited, Global Business Manager Ag Tech
• Scale; Solutions & Disruptive Technologies.)
Cellular technology is more cost-effective in situations – Does it need indoor or outdoor coverage, or both?
where the deployment is highly mobile, small in scale or
has a distributed bandwidth requirement, for example light – Will the devices within your solution be highly
control for a smaller city council, vehicle telematics, etc. mobile or fixed?
A single ‘long distance’ technology such as cellular can be These coverage considerations will affect your
used to connect a large number of sensors and controllers. network requirements and your choice of provider.
Alternatively, a short-range wireless technology such Many customers choose Telstra for their M2M
as Wi-Fi can be used to connect a number of local sensors and IoT solutions primarily for our extensive
to a device that interfaces with a long distance network and superior network.
such as cellular, another wireless technology or
fixed broadband.
18
• Cost: Communications can be a significant component • Latency: In many IoT implementations, information
of the overall cost of an IoT implementation. Over the last provided by sensors is used to control equipment.
few years, the cost per byte of data on both fixed and For example, there are now mines in the Pilbara where
wireless networks has decreased. Hardware costs have iron ore is moved by remotely controlled trucks. In such
also reduced. One MB of data cost $1 in 2008 and is now situations, the delay introduced by the communications
cents. As mentioned in the section on devices, hardware network can be significant. Older cellular networks
costs have also reduced. These lower costs now make it sometimes struggled to maintain low levels of latency
economical to connect a vast array of devices. So while and performance. As network technology has improved,
cost may have discouraged IoT adoption in the past, the evolution of cellular technology from 3G to 4G
it is now more realistic, making ROI more favourable. greatly reduced these delays. With 5G, presently under
development, they will be reduced even further. For some
• Battery life: Many IoT implementations require sensors deployments (such as remote temperature management
to be deployed in locations without mains power and with of non-perishable goods in transit), a 50-millisecond delay
limited access, so they may be required to operate for in a mobile network is not critical. In other scenarios, such
long periods on battery power. Today’s cellular technology as a high-volume, precision manufacturing environment,
is not optimised for such applications, but is evolving 50-milliseconds may result in significant quality or
to support communications with IoT devices that are process problems. Your organisation will need to consider
able to operate for up to 10 years on an AA battery. both the sensitivity of your IOT deployment to network
The industry has already started rolling out Power Save latency and the cellular network performance and
Mode across LTE and will deliver further improvements coverage as part of your planning process.
throughout 2016 and 2017. Companies need to consider
a solution that incorporates the potential to remotely As IoT covers a huge range of markets, the most suitable
monitor and manage devices in the field to ensure access network will vary depending on each application’s
an appropriate charge is available to the device. latency, data rate, price, battery life, longevity, coverage
and quality of service requirements. Different technologies
offer different advantages for different applications.
Direct
narrowband Pet or property tracker
connection
Remote plant/process monitoring
Short-range
Utility meters link to
Wearable
Direct mobile technology
broadband hub
Security
(or fixed) sensors
Parking
broadband meters
connection
Personal communications
3G 4G
Fitness trackers
Video
Automotive security Remote controls
3G 4G
Asset tracker Health monitors
EFTPOS
LAN/PAN
Diagram: Depicts some IoT use case and suitable access types. There is often crossover between access types, even more so than depicted here.
19
4.0 K
ey IoT considerations
(cont.)
Ideal for Need high data throughput, Will always be near to other Don’t need high throughput
services that high reliability or high mobility connected devices or low latency
Key advantages Performance and mobility Performance and battery life Mobility and battery life
Examples 3G, 4G Cat. 1 and Cat. M, WiMax Wi-Fi, ZigBee, Bluetooth 4G NB-IoT, SIGFOX, LoRaWAN
At a high level, access networks for IoT can be considered 4.3.2.1 Direct mobile (or fixed) broadband connection
to fall into three broad categories, where specific IoT
applications may be suited to one or more of these: IoT devices in this category will connect directly to wired or
wireless networks via a high performance, high bandwidth
1. Direct mobile (or fixed) broadband connection link. Current 3G/4G cellular devices are captured in this
segment (e.g. smartphones, EFTPOS terminals, connected
2. Short-range link to broadband hub car systems). This segment is typified by an ability to cope
with battery life measured only in hours or by devices wired
3. Direct narrowband connection – low power directly to a power source (e.g. automotive car battery or
Wide Area Networks (LPWAN) 240V power supply).
Note that there is significant overlap between these three Applications in this category typically have a strong
identified segments. For instance, utility meters may be performance requirement (low delay, high throughput,
well served by a cellular wireless broadband connection high reliability) and are at higher price points. Telstra
if power is available, and if there is a requirement to provide services this market today with its existing fixed network
near real-time pricing information as a premium service. and cellular networks.
However, in the case of more modest requirements,
the meter could instead report summary information Telstra LANES® enterprise allows large enterprise
back on a daily basis. In this case, a LPWAN device that customers access to a dedicated partition of LTE spectrum
can be deployed for 10 years – regardless of local power that can connect to Telstra’s public LTE network. This can
availability and at very low cost – is an alternative. allow organisations access to a dedicated network capacity
in nominated areas. Outside those areas, Telstra LANES®
These three categories continue to evolve as new features enterprise customers can receive preferential data
and capabilities are added. treatment on Telstra’s public LTE network, where LTE
is enabled, above consumers. This can provide organisations
with the network capacity they need to help meet their
business needs.
20
Cellular technology has many advantages:
• In-building coverage can be problematic where sensors/ • Power requirements for terminals are high, making
actuators are located deep within buildings; for example, today’s cellular technologies unsuitable for applications
for water or electricity meters. Telstra WCDMA 850 that require terminals to operate on battery power
and LTE 700 penetrates deeper into buildings and also for long periods. New 3GPP network functionality will
improves rural coverage. Additionally, standards bodies massively increase device battery life (more than
are working on a new technology referred to as 10 years, depending on activity/application type).
Narrowband IoT (NB-IoT) to enhanced coverage for
devices that do not need fast data speeds. As they Satellite
also extend the coverage range, this will also improve
in-building penetration. Telstra expect to deploy this The great advantage of satellite for IoT is that one network
technology in November 2016. can be used to communicate with static or mobile devices
almost anywhere in the world. The disadvantage is that the
• Terminal devices for cellular networks are complex antenna on the remote device must have direct line of sight
and therefore costly. This will change with the introduction communication to the satellite(s). There can also be issues
of new technologies in 2016 and 2017. NB-IoT has been in cities where tall buildings shadow the sensors. Satellite
designed to significantly reduce device complexity solutions also tend to be power intensive and expensive,
and therefore price point. It’s important to note that making them unsuitable for many smaller IoT solutions.
production scale has a greater impact on device price Lastly, satellite solutions can have a high latency, which
point so it’s essential to minimise fragmentation in can be an issue for some IoT applications.
IoT solutions as much as possible.
21
4.0 K
ey IoT considerations
(cont.)
4.3.2.2 Short-range link to broadband hub This enables low-cost deployments but performance
can be impaired by uncoordinated interference from
Another connectivity category is defined by IoT devices other users’ devices and gateways.
that leverage ‘nearby’, broadband-connected gateways
to obtain a mix of reasonable battery life and moderate There are several versions of Wi-Fi with different
performance. Examples of this in the market today are throughput and mobility capabilities. One of the latest
wearable devices that use Bluetooth/Wi-Fi to connect versions of Wi-Fi is 802.11ah (also called Wi-Fi HaLow)
to a cellular smartphone (acting as the gateway) or devices which is designed to better support the Internet of Things.
using Wi-Fi or ZigBee to connect consumer whitegoods It is expected to be standardised in 2016 with common
and appliances to Internet-connected ADSL/Cable/NBN availability of devices by 2018. Wi-Fi HaLow is expected
gateways. This category also includes mesh networks such to double the coverage of existing Wi-Fi solutions and,
as those used in smart metering projects. Devices using in some instances, reach 1 kilometre.
these types of access networks may be able to leverage
moderate data speeds to provide rich user interfaces or IEEE 802.15.4 (technology – ZigBee, WirelessHART,
audio streaming and will be able to provide relatively near 6 LoWPAN)
real-time transactions. Devices may also have a reduced
cost due to lower modem complexity and transmit range; Most mesh-based approaches in the market today are
shorter ranges will typically translate to improved battery based on IEEE 802.15.4, and can generally be classed as
life compared with a direct broadband connection. narrowband links to a broadband hub. While not meeting
many of the LPWAN attributes, this technology is worthy
Wi-Fi of comparison because it is already a widely deployed IoT
technology and represents an alternative to using LPWAN
Wi-Fi is a low latency, broadband, short range (10 to networks, albeit with some limitations.
100 metre) wireless local area network (WLAN) technology.
It follows the global IEEE 802.11 standard with equipment The 802.15.4 standard only defines the physical layer
certified by the Wi-Fi Alliance. Wi-Fi has become one of and media access control layers: for instance, it does
the most pervasive networking technologies in history not enable IP connectivity between end points without
and is used in homes, businesses, factories, smartphones, the implementation of additional layers. Higher layer
tablets, computers, whitegoods and numerous consumer stacks built on 802.15.4 include:
electronic devices. Wi-Fi uses a contention-based
algorithm to access unlicensed spectrum in the 2.4GHz • ZigBee Alliance Platform, typically used in short range
and 5GHz bands. applications or where mesh networking is required;
22
• WirelessHART, typically used in industrial control Advantages of NB-IoT
and process automation applications;
• Good support for low data rate devices;
• IETF 6LoWPAN, which enables direct IPv6 transport
over 802.15.4, providing IP-based routing/meshing • Good in-building coverage;
for applications.
• Support for devices with very long battery life;
This list is not exhaustive, and there is also a range
of proprietary network technology stacks used with • Wide area coverage at low power;
802.15.4, especially for closed ecosystem deployments.
Furthermore, there are a number of variations on the base • Low cost chipsets;
standard (802.15.4a/c/d/e/g, etc.) for various applications.
For instance, Wi-SUN Alliance promotes the use of • Low power base stations can be deployed by customers.
802.15.4g for smart metering applications.
Disadvantages include:
In some ways, this ecosystem fragmentation has slowed
widespread deployment of 802.15.4. Although the base • Some LPWAN technologies are controlled by start-up
standard has existed since 2003, with an update in 2006, ventures whose futures are uncertain;
there has been no clear cut choice of higher layer stacks
to pair it with. • LPWANs that do not use licensed spectrum will always
run the risk of being affected by interference from other
4.3.2.3 Direct Narrowband Connection – Low Power Wide spectrum users;
Area Networks (LPWAN)
• Requires deployment and ongoing management of
Applications and devices using this type of connectivity dedicated radio infrastructure rather than making use
are typically intended to be installed for a long period of existing cellular network coverage. This may include
of time (years to decades) and so are extremely sensitive the capital intensive task of building new towers,
to battery life. However, they are generally not sensitive huts and backhaul equipment over time to provide
to performance and instead require regular but low-speed a coverage footprint;
communication, ranging from hourly intervals to daily or
even longer. In addition to lower throughput performance • Many non-3GPP LPWAN technology ecosystems
requirements, these devices typically do not require are still at an early stage of development and are yet
real-time interaction and may tolerate latency delays to (and may never) reach the large economies of scale
of hours. These devices are expected to be at a borderline provided by the 3GPP compliant technologies;
‘throwaway’ price point, to be cheaply and easily embedded
in any device. Devices in this segment are also likely mobile, • Several proprietary LPWAN technologies have one
or installed in ‘unplanned’ locations, such as basements or or few suppliers, creating a lock-in risk;
deep inside warehouses. Recently, several new companies
have gained a lot of attention as they have pushed their • Sunk investment in technology that will not meet
LPWAN technologies to serve IoT applications. business needs long term;
LPWAN (Low Powered Wide Area Network) is a generic • Cost of migrating or redeploying to new technology
term covering a number of new wireless technologies in future. With IoT there are potentially large numbers
developed specifically to serve IoT scenarios needing wide of devices so moving down a technology dead end could
area coverage. While NB-IoT is a form of LPWAN, a number prove very costly.
of LPWAN offerings are fully proprietary. Some such as
LoRa and SIGFOX have the backing of multiple technology
companies that have formed their own standards groups;
however, it is still early days and many are yet to build
ecosystems. Some require dedicated licensed spectrum.
Others operate in shared bands. It is worth noting
that NB-IoT (standardised by 3GPP – 3Rd Generation
Partnership Project) is backed by the global scale
of the cellular mobility industry and is likely to develop
efficiencies of scale and technology certainty unmatched
by other options.
23
4.0 K
ey IoT considerations
(cont.)
The evolution of cellular technology for LPWAN (4G LTE Cat. M and NB-IoT)
Cellular Technology Roadmap – 4G Device Types
Today Future
Expensive Inexpensive
To better support IoT applications, 3GPP is extending 3GPP are also working to extend the LTE standard to
the LTE standard (4G) by introducing new capabilities support low capacity IoT devices operating on batteries
to optimise it for IoT applications. Work is underway for up to 10 years without recharge.
on 4G LTE variants for IoT, known as Category 1,
Category M and NB-IoT devices. By end June 2017, Telstra’s LTE network will cover 99 per
cent of the population and will support specialised IoT
The naming convention for these devices may also show category devices. This network already supports Category
Category M1 which is interchangeable to Category M, 1 devices and we will introduce Category M and NB-IoT
and Category M2 which is the same as NB-IoT. capability by the end of 2016. Beyond 4G enhancements
and NB-IoT, requirements for IoT will be incorporated into
Features in these devices focus on reducing complexity new 5G cellular standards from the outset.
(thus modem cost) and extending battery life through the
use of a new power savings mode. Category M and NB-IoT Category M devices will support up to four times coverage
devices will also extend battery life and reduce cost, improvement, while NB-IoT will increase coverage by
but they will also improve device coverage by supporting up to a factor of five.
a lower data rate. We expect Category 1 devices to become
commercially available in Australia around the end of 2016.
These will be suitable for many IoT applications such as
utility networks, alarm monitoring, video surveillance, etc.
24
As of the start of 2016, products supporting these
enhancements to LTE are not presently available in
Preparing your business for the 2G/GSM
Australia. A number of cellular network operators around
network shut down
the world are rolling out large-scale, low powered wide
area networks (LPWAN – see below) to meet immediate
• Many major telecommunication companies
requirements for IoT connectivity and counter competition
around the world (including Australia) will
from newcomers operating LPWAN networks. Category 1,
be switching off their 2G networks very soon.
Category M and NB-IoT devices will be coming into the
After over 20 years of continuous operation,
market around the end of 2016 with the device range
Telstra has publicly announced that we will
being broadened in 2017.
be switching off our 2G network on the
1st December 2016.
4.3.3 Application and platform considerations
• As Telstra’s 4G coverage grows, the idea of
While devices and networks are important, your
leapfrogging 3G altogether and going with a pure
IoT solution will not be complete without a properly
4G/LTE only solution or a solution that is 4G/LTE
implemented application and IoT platform infrastructure.
with 3G fall back is recommended as the most
Below we list some key areas we advise customers to
sensible path for a majority of solution providers
review when it comes to implementing IoT applications
upgrading from 2G.
and platforms.
• While 4G LTE modules are currently more
4.3.3.1 Security
expensive than 3G only modules, a move direct
to 4G (Cat. 4 and Cat. 3) LTE provides the
Security is always of paramount concern in any network.
certainty of a longer module lifetime and
IoT has the scope to connect a significant number of
prepares you to leverage the new lower cost
potentially vulnerable devices to your network so it is
Cat. 1 and Cat. M modules when they become
imperative to consider network security, data security
available with many module suppliers using
and the security of your end points.
compatible footprints.
Concern with security is widely seen as the number one
• Telstra supplies a list of Telstra certified devices
issue holding back IoT. This apprehension is often focused
and modules.
on IoT comprising of no-compute and low-compute
devices that do not have the computing power, storage
or memory to be able to run traditional mechanisms to
secure the device (such as firewalls, intrusion prevention
systems and encryption keys). It is for this reason that
security has topped the list of factors most important
to IoT considerations in the Tech Research Asia survey10.
While the concerns are real, the problems are not insoluble.
A report from Security Newsdesk14 (Security Newsdesk,
2015) notes: “The Internet of Things can be secured. The
technology exists to build a robust, secure, effective and
powerful IoT. Digital signatures for software and systems,
encrypted communications and storage, robust
authentication, secure software development practices
– the tools are available for everyone to use.”
25
4.0 K
ey IoT considerations
(cont.)
However, many IoT implementations are insecure. The use of blockchain technologies to provide
With the pressure to achieve a short time to market, cryptographic data integrity means that security can
the devices not having the computing capability to support be applied to low compute devices (IoT) because the
a security stack, a rich set of features, and greatest ease hash is very small (compared to trying to store traditional
of use, security may take a back seat. certificates or security programs); is not susceptible to key
related attacks (e.g. quantum computing attacks against
Security Newsdesk suggests several ways to ensure an key length, rolling back system time attacks, etc.) and is
IoT implementation is secure, starting with “Make security not reliant on the transmission method for security (the
part of your requirements – and part of your purchase blockchain verifies against tampering, not the network).
decision. Do not purchase systems or components unless
they include robust security. If buyers make security Telstra is investigating the use of blockchain technologies
a requirement – a real requirement, not a goal that can against a number of use cases including Connected Home
be over-ridden – IoT suppliers will deliver secure products.” and Connected Car among others.
Openness is a critical factor for organisations to assess. The IoT Application Enablement Platform (AEP) is a layer
The very nature of IoT suggests an ever-growing range of that simplifies implementing and developing IoT solutions.
devices, services and platforms is interconnected to drive The core value proposition of these AEP platforms is to
value for the business. In this environment, being locked-in ease messaging, device management and data collection
to a vendor’s proprietary and closed solution can retard the activities of any IoT solution. Instead of your company
effectiveness and longer-term viability of your company’s having to waste time and effort building many features,
IoT solution. Far better to have freedom of choice with these IoT enablement platforms provide ready-made
your devices, technology and partners so you can extract software tools and services that are able to scale to
maximum value over the lifetime of your IoT initiatives. the needs of millions of devices.
Some connectivity management providers have built their • Can you remotely update device firmware?
own connectivity management platforms while others
have partnered with specialist providers who service • Can you set device thresholds and alerts?
many telecommunication companies across the world
to provide this functionality. Telstra has a successful • Does the platform provide open RESTful APIs
five-year partnership with Jasper, a global platform (representational state application programming
provider in this area to fulfil customers’ requirements interfaces) whereby software components capabilities
for subscription management. and assets inside the enterprise can be easily combined
with assets and capabilities outside the organisation
Key questions you should ask about a connectivity to maximise integration and scalability?
management platform include:
For simplicity, we believe it is easier to have both
• What self-service tools for SIM provisioning the subscription management and service platform
are available? with the same provider. As evidence of commitment
to this approach, Telstra has entered into an exclusive
• What usage controls are available? partnership with Cumulocity and will launch the Telstra
IoT platform for the purposes of application development
• Does it offer the ability to set business rules and alerts? and device management.
• Do you require visibility of the data that the 4.3.3.6 Reliability
SIMs are using?
This is an important consideration for any mission critical
We recommend you choose a credible partner in this space solution such as those deployed by emergency services,
that can offer proven capability and customer testimonials. but is also crucial for others (connected traffic lights,
You’ll also want ease of use, ongoing upgrades and lone worker, etc.) Ask yourself:
different user access layers. This key component
of your solution will help you and/or your customers • Does your solution require high message integrity
to drive efficiency and deploy faster. (quality of service) in terms of delivery?
27
4.0 K
ey IoT considerations
(cont.)
4.3.3.7 Data aggregation capability Pivotal says: “As sensors connect more devices, the
velocity/volume/variety importance of gaining near real-time views of IoT data
may equal the imperative to collect data for longer-term
IoT will invariably result in large amounts of data. It’s analysis, trend detection and predictive modelling.”
important to understand upfront how this data can be
used to help you drive efficiency, improve the service you On a decision-making front, consideration needs to be
offer or reduce costs. Data management, data governance, given to the need for near real-time processing. What
storage and quality are all worthy considerations. There are decisions do you plan to make, based on the data coming
service platforms available for the primary purpose of through? Will the data be used for historical analysis or
Big Data Analytics, so you can improve decision-making, do you need to change a process in real-time as the data
operational efficiency and the customer experience. arrives? Near real-time data capability and the power
Big Data service platforms allow you to bring the of the data is the essence of IoT disruption.
acquired data together, manage the data and analyse it.
Key considerations include: “Nufarm has a major focus on innovation, particularly
in terms of delivery. Historically, that has been around
• Do you outsource this aspect to a third party formulation and packaging innovation but IoT and Big
(and use cloud storage) or opt for self-management? Data is now a natural progression. Big Data in agriculture
is cutting edge. Nufarm wants to remain progressive to
• How secure does your data need to be (in flight our customers and it will allow us to give our customers
and at rest)? a competitive advantage in terms of providing farmers
the yield, efficiency and ability to be more profitable in a
• What volume of data can you expect? competitive global market. If we don’t innovate, we lose our
competitive advantage.” Nufarm Limited, Global Business
• How quickly is the data arriving (velocity)? (This may Manager Ag Tech Solutions & Disruptive Technologies.
be one device sending lots of data, or many devices
sending small amounts) Cisco Systems Inc. says that the greatest value from IoT
will be realised by those who focus on improving their data
• What are the different types of data you will be capabilities (integration, automation and analysis) and
transmitting? Will it be simple numbers or blocks overall process agility – not those who simply connect
of content? Data comes from various different sources the most devices to the network – and that there is
and sensors and needs to be managed appropriately widespread understanding of the importance of data
to drive benefit. in IoT implementations.
4.3.3.8 Data and analytics, and data visualisation Cisco15 reports the results of a survey (Cisco, 2014) of 1,230
executives from around the globe. When asked: “Which
The Internet of Things can provide business benefits areas do you need to improve the most to make effective
through analysis of the data that a network of sensors use of IoT solutions?” making better use of data was ranked
provides, as opposed to responding to specific data. highest, by 40 per cent of respondents. ‘Process’ was
ranked second (27 per cent), ‘people’ third, and ‘things’
Pivotal argues that IoT is introducing new realities in terms last (13 per cent).
of how data is created and used, and how organisations
can harness these opportunities for innovation. The three “Data is at the heart of IoT. The key is
key facts include:
taking the data, often in unprecedented
• IoT data is distributed – the nature of connected devices volumes for a business, and using the
puts data creation on numerous systems;
analytics and insights to think and act
• IoT data sets will grow – as more sensors are deployed differently about an operation. It’s exciting.
and more data is created, IoT data usage will change; It will change the playing field for business
• Use cases for IoT are just beginning to emerge
owners across this country.”
and will evolve.
Dr Hugh Bradlow, Chief Scientist, Telstra
28
4.3.3.9 Developer capability • Are you going to purchase an existing IoT solution?
Another consideration when looking at IoT applications • Are you going to build your own solution or customise
and platforms is the developer skillset required to an existing IoT solution?
both implement and maintain them. An off-the-shelf,
end-to-end IoT solution is likely to require little in developer • Do you have developer capabilities to suitably resource
resources, while developing a solution from scratch or and execute? Alternatively, are you going to outsource
customising a solution from IoT technology components someone else to build your solution?
will require either internal or external developer resources.
Secondly, where developers are required, do they have • Once built, do you have the necessary skillset in your
the necessary knowledge and skillset for the selected IoT organisation to run and maintain the IoT solution?
platforms and technologies being used in the solution?
At a high level, good questions to ask in this space are: Factors affecting these decisions include:
time to implement, cost, resourcing and project
management skills.
29
4.0 K
ey IoT considerations
(cont.)
4.4 4.5
STEP 4: Define the right operating model STEP 5: Selecting the right partner
The most suitable operating model for your business From both a design and implementation perspective,
needs to take five key questions into consideration: IoT solutions can be complex and require considerable
thought and effort from an organisation. We would
1. How will devices and assets be managed in the short recommend that businesses look to third parties and
and longer term? Do you have the resources and capability work with them to identify, define and construct a solution
to take this on? What platforms and partnerships are and determine what development platform is most
available to make this step easy and keep your core suitable. The third party should be able to demonstrate:
business needs at heart? Will the platforms available
be suitable for your business requirements? • A proven capability and cross vertical expertise in all areas
of IoT design, deployment and ongoing management;
2. How will your field services be managed? From time
to time, sensors or connected devices may require repair • A partner ecosystem that aligns with your corporate
or some level of maintenance. It is worth considering goals and strategic direction;
if this aspect of IoT is feasible and realistic under your
current business model. Alternatively, what options • A genuine commitment to your end goal and objectives;
are available to outsource this function as part of
a premium business proposition? • A proven history in the field e.g. a long history of
participation in the field of telematics, M2M and IoT;
3. What analytics and data services are available to help
you manage your IoT solution? The volume of data can • A demonstrable commitment to the ongoing evolution of IoT
be significant and making it relevant to your business infrastructure and development – devices, networks, etc.;
decisions is key. What are your requirements for secure
storage of the data? What support if any, will you require • A vision beyond the cellular aspect of IoT;
around data analytics? Data analytics can range
from basic visualisation to complex frameworks where • An open approach to collaboration and shared goals.
multiple data sources and large volumes of data are
collected. If it’s worth collecting, it’s worthwhile using
it to reach your end goal.
Navigating IoT Transformation
4. What level of data and network security is required for
your IoT solution? Whether it’s your business data or your
customers’ data, data security is key. Any compromise
on data security can ultimately jeopardise your brand SIM, device and
asset management
and customer experience. (See also section 4.3.3.1.)
Platform ROI
scalability, metrics
5. Do the applications available to you meet industry openness,
reliability
best practice? Any applications should be assessed
C-level Data
to make sure they are suitable in the short and endorsement management,
and strategic storage,
long term. Are they capable of being developed alignment Improve your Differentiate analytics and
visualisation
customers’ from the
to accommodate additional business needs? experience competition
(optional)
30
5.0 Conclusion
4. Security is key from both a data and network Now’s the time to start planning, innovating and disrupting.
perspective. It’s important to ensure that the solution Make the first step today and contact your dedicated
is developed with the right operating model in mind, Telstra Account Executive for everything IoT.
and considers ongoing device and asset management,
field support for device repair and maintenance, data For more IoT related white papers, please go to:
storage, analytics and management, and the use of https://www.telstra.com.au/business-enterprise/
leading edge applications. Getting the fundamentals solutions/machine-to-machine
right from the outset is critical as IoT solutions normally
start on a smaller scale and grow as success
is demonstrated.
31
6.0 Appendix
6.1 Why Telstra? • The Telstra Mobile Network is the largest mobile network
in Australia covering more than 2.4M square kilometres
Telstra’s team is passionate about helping organisations (more than 31 per cent of the Australian land area
implement IoT solutions that address specific needs and is covered) and over 99.3 per cent of the Australian
allow businesses to thrive. population, NB-IoT will extend this further, increasing
the range of our base stations by up to five times,
Our end-to-end IoT capability offers: and also allowing deeper access within buildings.
1. Multi-network access across a wide range of • 4G Coverage: Telstra offers the largest 4G coverage area
technology options of any mobile network, reaching 98 per cent of the
Australian population. Telstra has more than 6,000
With Telstra, you benefit from connectivity on Australia’s 4G-enabled sites offering 4G speeds in all the capital
best mobile network. Our unsurpassed mobile network CBDs, many suburban areas and over 600 regional towns
coverage is married with a robust security model that across Australia today. This coverage area is set to
ensures your IoT solution is always connected. increase considerably as we roll out NB-IoT in the later
part of 2016.
• We offer a range of connectivity options including
cellular (3G/4G), Wi-Fi, satellite and fixed line options One key advantage is our ability to be network agnostic –
such as NBN and ADSL. we can provide expert advice on which network or
combination of networks is best for your application.
32
2. Security and peace of mind
Security is of paramount concern in any network. IoT has “Telstra offers a variety of
the potential to connect a significant number of potentially connectivity options so the solution
vulnerable devices to your network, so network and data
security is usually a priority. Telstra offers you peace of
can be tailored to the needs of
mind across the following areas: each business. We have a range of
partners to facilitate the IoT scope,
• Telstra is leading IoT security in evaluating data integrity
and chain of custody using blockchain technology. build and implementation. We have
So far, the testing has shown the ability to sign a every capability in the technology
configuration and prevent tampering. stack necessary to build a solution
• All external entry points into the Telstra Mobile Network that will work for each business
are firewalled and Telstra’s IP Wireless products are to drive the outcomes they want
certified to ISO27001:2005 standards. Surveillance
audits are completed every six months.
to see.”
– Telstra continually monitors and reviews potential 3. Holistic ecosystem delivers a seamless IoT experience
network security threats to ensure the privacy of
our customers is protected at all times. We offer a world leading partner and technology
ecosystem to bring you the best solutions and a seamless
• Telstra is investigating in-home security technologies ‘one Telstra’ experience.
to ensure that the home network connected to a
Telstra service is secured (relevant to business with • We have almost a decade’s experience in providing M2M
the convergence of IoT solutions across home, services to our customers, with over 1 million services.
personal and enterprise).
• A valuable five-year partnership with Jasper for SIM
management of connected services.
33
6.0 Appendix
4. Proven experience in end-to end design, execution 5. In-house depth and breadth of experience to ensure
and implementation your needs are met
For telematics and fleet management applications, we’ve At Telstra we have the expertise to help you design, build
partnered with suppliers to deliver solutions that can track and deploy an IoT solution. Telstra has industry leading,
vehicles and products, estimate arrival times, and provide professional capabilities that can make your IoT journey
wireless time and date stamping, with near real-time a smooth and productive one:
visibility of vehicles via GPS satellites and the Telstra
Mobile Network. • We provide a wide range of connectivity options to
allow you to choose the most appropriate combination
You also gain access to Telstra’s dedicated IoT team who, to connect to your IoT service and the cloud.
in turn, can give you access to equipment manufacturers
and application developers. • We understand the importance of not being locked-in
to a specific vendor or technology capability, which is
Through the Telstra Mobility Partner program, we’ve why we strive to have open, flexible solutions to ensure
teamed with leading suppliers of IoT hardware and systems your IoT capability can always keep you innovative,
integrators to enable us to provide you with an IoT solution even as the market evolves.
that minimises the number of stakeholders you need to deal
with, and reduces complexities and integration challenges. • We have a range of partnerships to meet all your
IoT needs: Jasper for SIM management platform,
Cumulocity for IoT platform capability (current
exclusivity in Australian market) and Pivotal
for big data solutions.
“Telstra has demonstrated a high
• We have proven capability in sourcing key strategic
level of commitment, and passion, partnerships globally and bringing best-of-breed
to the project through the provision partners to solution design and implementation.
of expert advice and access to its
We offer consultancy services that can identify where
consultants to assist in scoping and and how IoT solutions can be used to address your
development. I’ve not worked with business needs and aspirations. Our understanding and
a third party (Telstra) to such a great experience with the critical IoT technologies (including
devices, security, wireless networks, cloud and big data)
degree like this before.” combines perfectly with our consultancy services to assist
you to automate and streamline your business operations,
Director of Governance & Strategy, help drive business efficiencies through near real-time
City of Joondalup connectivity and bring a ‘smarter’ focus to you, your
business and your customers. We start with a discovery
session where we look with the fresh eyes of outsiders
at your operations and make recommendations on how
your business can incorporate the latest IoT technology.
We can then facilitate deployment, from concept to rollout,
hardware provision and application management, solution
partners and experience spanning over 10 years in proven
M2M capability.
34
6. In-depth testing and device certification You can also enjoy the following benefits from a Telstra
certified device:
Telstra performs in-depth testing on all cellular devices
that we sell. You can be confident that our IoT devices • Devices are able to have an effortless software update
will work under various conditions because of our with no need to pull hardware from the field;
comprehensive test scope including lab and real-life
scenarios in the live network. • Better ROI on the devices, with Telstra working hard
to ensure optimal efficiency, performance and battery
We also provide accreditation for qualified devices that life when operated on the Telstra network.
meet Telstra standards. If the device works properly on
Telstra’s network, you can be assured of an exceptional Note: We do not currently offer IoT devices. Testing and
user experience. Your business can operate smoothly certification is work in progress. We anticipate that IoT
with fewer dropouts and more stable device performance. devices will be available for purchase from Telstra in
the later part of 2016 or early 2017.
35
7.0 References
1. http://www.dpdhl.com/content/dam/dpdhl/presse/pdf/2015/DHLTrendReport_Internet_of_things.pdf
A collaborative report by DHL and Cisco on implications and use cases for the logistics industry, 2015 Pg.8
3. http://www.philips.com/a-w/innovationmatters/blog/how-the-internet-of-things-is-revolutionizing-healthcare.html
Homepage: Innovation that matters to you
4. McKinsey & Co. (2015, June). Insights & Publications. Retrieved from Unlocking the potential of the Internet of Things:
http://www.mckinsey.com/insights/business_technology/The_Internet_of_Things_The_value_of_digitizing_the_
physical_world?cid=other-eml-alt-mgi-mck-oth-1506
5. Telsyte. (2015, August 10). Telsyte News. Retrieved from www.telsyte.com.au: http://www.telsyte.com.au/
announcements/2015/8/10/australian-iot-home-market-to-reach-32-billion-by-2019-embedding-smart-technology-
into-everyday-life-1
7. Deloitte. (2015). Technology, Media and Telecommunication Predictions 2015. Retrieved from www.deloitte.com/:
http://www2.deloitte.com/au/en/pages/technology-media-and-telecommunications/articles/tmt-pred-the-iot-is-
things-not-people.html
9. Accenture. (2015). Accenture and Economist Intelligence Unit CEO Briefing. Retrieved from https://www.accenture.
com/t20150527T211103__w__/fr-fr/_acnmedia/Accenture/Conversion-Assets/DotCom/Documents/Local/fr-fr/
PDF_5/Accenture-CEO-Briefing-2015-Productivity-Outcomes-Internet-Things.pdf
10. Tech Research Asia. (2015). IoT and Enterprise Views in Australia. Oct.
11. Machina Research. (2015, July 16). LinkedIn. Retrieved from https://www.linkedin.com/pulse/enterprise-iot-journey-
busy-road-ahead-emil-berthelsen
36
8.0 Abbreviations/Acronyms
IoE: Internet of Everything – a term defined by CISCO for the Internet of Things. It is meant to highlight data
from people and device being intertwined
IoT: Internet of Things – a class of services involving specialised devices connected to the Internet
ITS: Intelligent Transport Systems – includes vehicle to vehicle and vehicle to infrastructure communication
M2M: Machine to Machine – a class of services where machines communicate without directly involving people
SIM (or SIM Card): Subscriber Identity Module – a card-based mechanism for identifying a mobile subscriber
37
©2016 Telstra Corporation Limited. All rights reserved.
No part of this document may be released, distributed, reproduced, copied, stored, or transmitted in any form or by any means, without the prior written
permission of Telstra Corporation Limited.
Telstra, the Telstra logo, spectrum device, ™ and ® are trade marks of Telstra Corporation Limited, ABN 33 051 775 556.
38