Sleeping SIM enables digital services at the touch of a button

Developed, produced, sold, and then – out of sight, out of mind? Not at all: anyone who connects their product to the Internet of Things (IoT) can, for example, collect usage data beyond the sale and use this as a basis for developing new features, staying in touch with customers and offering them new services. Or even build a new digital business model based on a pay-per-use model. The novelty: thanks to integrated SIM technology, mobile connectivity can be easily activated as needed.

With Dormant Connectivity (dormant connectivity), Telekom's new offering, companies are positioning themselves for the future: If the end customer is not interested in smart services, the nuSIM simply remains dormant without incurring any costs or consuming any power. If mobile connectivity is desired, it can be easily activated in the system. And the end user does not have to worry about connecting their device to a gateway or network. No more pairing stress: it couldn't be easier.

But which products are suitable for being networked via the IoT? This opens up opportunities for companies in almost all industries. There are virtually no limits to imagination and pioneering spirit. Would you like some examples? GE Aviation, a subsidiary of General Electric, no longer sells its engines to airlines, but provides them as Product-as-a-Service, or PaaS for short (see info box). Customers only pay fees for the actual use of the engines. Manufacturers such as GE Aviation offer various service packages, with services ranging from maintenance and repair to performance optimisation and operational support. Ultimately, both sides benefit greatly from such a product-as-a-service model: airlines save costs and manufacturers benefit from long-term customer relationships and continuous revenue.

Another example can be found in the field of cleaning technology. Here, Kärcher is revolutionizing the market with autonomous scrubber-dryers connected via Deutsche Telekom's global IoT network. The basis for this: a radio module integrated into the devices with Deutsche Telekom's robust Industry SIM. As a leading provider, Kärcher rents, leases, or sells its equipment to building service providers or corporate facility managers. During cleaning operations – for example, at airports, warehouses, or shopping centers – the sensors of the autonomous robots generate a wealth of information. Kärcher collects the data via the Internet of Things and makes it available to its customers, allowing them to view the machine status or access digital cleaning records at any time.

At RUD, the market leader for high-performance chains and industrial conveyor technology, those responsible are also relying on IoT connectivity to offer customers additional added value. The reason: The supplier's specialized products are exposed to enormous stress in inhospitable environments, such as coal-fired power plants. Despite the targeted energy transition, there are still more than 2,400 of these worldwide. In such power plants, tons of sedimentary rock flow from storage piles to coal storage facilities via RUD conveyor belts and burn at temperatures of around 1,300 degrees Celsius after heavy machinery has ground the rock to dust. This creates steam, which drives turbines and generators. While the hot coal ash is disposed of below the boilers, the generated electricity is fed into the grid.

The challenge: When it came to determining the right time to replace chains, customers previously had to rely on their instincts. Together with Deutsche Telekom, RUD equipped its plants with IoT sensors. Based on the collected usage data, the company now offers proactive services. This allows chains to be replaced in a timely manner and maintenance work to be initiated early, allowing customers to benefit from reduced downtime. RUD can also better plan its maintenance personnel and replacement materials.

These use cases exemplify the advantages of Product as a Service: digital value-added services enable manufacturers to stand out from their competitors. They generate regular revenue through the pay-as-you-use model while also increasing customer satisfaction. Analysing usage data also provides a better understanding of customer needs and enables potential product improvements to be identified more quickly.

Nevertheless, there are several reasons why companies are currently reluctant to connect their products to the Internet of Things. Many manufacturers are unclear about the advantages. Or they fear that their customers will not use newly developed smart services. In addition, the effort and costs involved in equipping their own products with connectivity are often quite high. And it is not always easy for those responsible in the company to make the right decision: Which module or sensor is best suited? Which SIM should be integrated to ensure connectivity? What are the advantages of an integrated SIM developed specifically for IoT devices, such as Telekom's nuSIM? What do the new production processes look like? Or how can the procurement of new components best be integrated into the company's own supply chain?

Products such as engines, cleaning machines or conveyor belts can be networked either retrospectively, i.e. retrofitted, or during the manufacturing process, i.e. embedded. With minimal effort, the functions of a SIM carde into the product during development. With easy access to its global IoT network via nuSIM's integrated SIM technology, Telekom offers a complete service and implementation from a single source.