Cost–benefit models comparing M2M connection platforms

The problem

Ericsson wanted a model to compare the financial benefits of three options for M2M connection platforms:

• a basic solution developed in-house
• an advanced platform developed in-house
• an outsourced M2M platform, such as Ericsson’s DCP.

The solution

We conducted interviews with Ericsson staff, 10 operators and 20 enterprises to inform our modelling assumptions. We built two models:

• for operators, a tool to compare the supply options for an M2M platform (that is, in-house versus outsourced solutions)
• for enterprises, a tool to compare operators that have advanced platforms with those that have basic platforms.

The models were designed to be easy to use and clearly show the benefits of each scenario.We presented the main findings from interviews conducted with operators and enterprises, explaining how those can play a role in strengthening Ericsson’s proposition.

The result

The project allowed Ericsson to quantify the benefits of different platform options. It also gave Ericsson a business case tool to engage with its clients in deeper discussions about M2M platforms.

The team

The project was conducted by consultants from Analysys Mason's Custom Research team.