Telenor Connexion keeps Hitachi Construction Machinery connected and rolling

The challenge

Telenor Connexion, the specialized IoT company within Sweden’s Telenor Group, manages more than 10 million connected things for such recognizable names as Hitachi Construction Machinery Co. (HCM), a subsidiary of the Hitachi Group. The primary business of HCM is the manufacturing, sales and service of machinery for construction and they were one of the first to connect heavy machinery. Getting there, however, was no easy task.

In construction, it’s vital to keep machines running as much as possible and IoT offered a potential path for more cost-efficient management and greater profitability of machinery. Still, fragmented ecosystems of standards, devices and services can delay and even derail enterprise deployments. They can focus on single use cases and cling to a single standard. That leads to redundant infrastructure, security vulnerabilities, extensive integration work, all requiring a lot of time, effort and money.

HCM needed a connectivity partner with IoT asset management experience and proven reliability, one committed to answering the unique demands heavy machinery and related services pose. Further, simplicity was a priority; they wanted a single provider who could cut through the complexity and make global connectivity easy.

The solution

To meet HCM’s requirements, Telenor Connexion knew they’d need a strong partner. Since 2011, Telenor has been leveraging Ericsson’s IoT Accelerator to support global connectivity, device management and security through strong IoT asset management.

With Telenor Connexion, HCM’s connected machinery were able to gather data on location and operation. This allowed them to diagnose issues and perform valuable services, like preventative maintenance that significantly reduced costs and kept trucks up-and-running. 

The Telenor Connexion solution used a 2G/3G (GSM) SIM embedded in an M2M module. With extensive roaming partnerships, it would provide the end-to-end connectivity needed for HCM across more than 150 countries. Telenor Connexion was also able to deliver cost-saving technology support, and with new service level agreement (SLAs) capabilities, HCM could guarantee its customers a high level of performance, accompanied by increased security and equipment support.

Seth Ryding
“The primary challenges with HCM were overcoming global standardization issues and providing a simple solution that would be cost-efficient, secure and reliable. We didn’t want to make trade-offs and Ericsson helped us make it all possible. We have a long relationship and work closely with each other in developing new functionality. The IoT market moves very fast, and there’s lots of players, but our work ensures both organizations remain highly competitive.”

Seth Ryding, Vice President of Asia Pacific, Telenor Connexion

The results

Telenor Connexion has enabled HCM to differentiate its connected machinery products and stand out in a competitive marketplace They have also empowered HCM to develop new revenue streams and introduce value-added services to customers such as SLAs, just-in-time delivery and customized billing.

Connected machinery helps contractors improve processes from maintenance to operational support to actual security. Real-time data keeps trucks running, reduces the potential for costly and dangerous equipment failures, and improves the safety of workers through alarms and real-time alerts.

The Telenor Connexion solution accomplished it all and has since continued to evolve. Today, Telenor Connexion and HCM conduct bi-yearly technology workshops in Sweden and Japan, during which the companies develop a technology roadmap for customer service.

HMC remains a leading IoT innovator in heavy machinery, with 150,000 connected excavators alone operating all around the world.

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