LIVE FROM COMMUNICASIA 2013: Entrenched organisational views and structures are the biggest hurdle for M2M adoption outside of specific niche markets, said Niklas Ekarv, M2M Regional Business Director APAC for Vodafone Global Enterprise.

“I’m often asked, what are the barriers to adoption, what is holding us back. Is it maybe the cost of hardware? No, I don’t think it’s the cost of hardware. Is it the cost of connectivity? No, coming from Vodafone I wouldn’t say it’s the cost of connectivity. Is it the complexity? Maybe it’s a little bit to do with the complexity,” he said at CommunicAsia yesterday.

“But actually, when we speak to customers, we’re finding that the main obstacle for adoption is not the technology, is not putting the pieces together, but in order for some of the benefits to really pass through requires a change to propositions, to organisations. This is basically the biggest challenge for adoption when it comes to the mainstream view of M2M,” he continued.

In this regard, it may be newer and smaller companies which are faster to appreciate the potentially transformational properties. “Smaller companies that don’t have legacy processes, don’t have legacy views on how they conduct business, are sometimes at an advantage, because they can think out of the box, and see how their propositions can make use of this technology from the start,” Ekarv said.

While some of the benefits are well known, such as the ability to improve efficiency in sectors such as energy and automotive, M2M could also provide a way for companies in other sectors to diversify their revenue streams.

“Many companies today producing products are being pressured on the margins of those products. The product is facing strong competition, and M2M technology can help them in that regard. Using connectivity to devices, they can build service businesses and service propositions that relieve the pressure on the profit margins,” the executive noted.

And as with any new technology being extended into different markets, education plays an important role in the process.

“The challenge we have is opening up the eyes to what M2M can be used for in mainstream, larger types of customers. And that’s where we’re focusing our efforts right now,” he concluded.