Connect, monitor, manage: find out how machine-to-machine (M2M) technologies can automate and streamline business operations.

YOU MIGHT NOT KNOW IT, but a new type of communication has been quietly and invisibly surfacing in everyday devices around you. Machine-to-machine (M2M) communications let businesses remotely track, monitor, maintain, and control their equipment. Considering the high cost of dispatching specialized labor to travel to a piece of equipment or, even worse, the detrimental effect of machine downtime, M2M is much needed by companies with large numbers of machines, or those that manufacture and service devices and machinery across a wide geographic area.

Mobile communications technologies--such as Bluetooth, 802.11 (Wi-Fi), infrared, 802.15.4 (ZigBee), and other radio frequency options are already pre-loaded into more than 40 percent of all information appliances. (See the sidebar in the next column for more information on ZigBee). Microchips and sensors are being installed in vehicles, building systems, industrial machinery, home appliances, and more. The combined impact of greater computing power and communications in devices is enabling a new generation if machine-to machine communications.

The emergence of M2M

The concept of M2M has existed for more than 10 years, supported first by analog then digital connectivity. The technologies necessary to get M2M working include an embedded processor (the brain), connectivity (the voice), and management applications to monitor and control a device (the eyes and hands). A debate is beginning to warm over which wireless communication method will connect all these machines. However, the connection method that wins out isn't as important as the enormous impact access to machines will have for machine manufacturers, businesses, and customers.

The key is communication. Some machines communicate with other machines; for example, industrial machinery can share performance information with other machines on a manufacturing line, prompting neighboring machines to react accordingly to maximize yield. Some machines communicate with people carrying mobile devices; for example, a maintenance person in the field might use the information to diagnose and anticipate issues he'll face when he arrives onsite. This combination of machine to-machine and machine-to-mobile communication makes up M2M.

Here's a summary of the pros and cons of each potential M2M connection method:

Wi-Fi (802.11)

Pros--High-speed; cheap to deploy; always-on. One of the most high-profile wireless technologies around, Wi-Fi is being widely deployed (although, it's far from ubiquitous).

Cons---Needs a local power source. It also currently only serves as a "last-mile" connection, so Wi-Fi is still subject to wide area network (WAN) speed limitations. There are also security issues with Wi-Fi that still must be ironed out.

Bluetooth

Pros--High-speed; low-power; requires little or no set-up by user; doesn't require line-of-site.

Cons--Short range solution (not necessarily bad). Deployment has been slow, and widespread acceptance and adoption is still questionable.

Cellular

Pros--Long-range; always-on.

Cons--Requires massive up-front infrastructure investment; lack of effective service pricing models is slowing the adoption of high-end data services.

ZigBee

Pros---Low-power; low-cost; flexible; reliable; secure.

Cons--Doesn't support high-end data transmission such as video and multimedia; short-range (again, not necessarily bad); still making its way through the IEEE standards board.

Successful M2M implementations

Recognizing M2M's potential value, pioneering companies are already implementing M2M solutions for their businesses. Although there's a variety of applications, the common thread is the inherent value of M2M, regardless of the industry or segment.

NetStar e-Jukebox, Rowe International

Rowe International, in partnership with e-Cast, has developed an e-jukebox called NetStar. This jukebox can receive music and other software updates via the Internet from the company headquarters. NetStar can also report status updates including sales, play lists, and problems such as power outages, hard-drive failures, and cash-slot malfunctions. Jukebox operators can access this information from anywhere via a secure Web site.

Previously unworkable transaction models are now possible because Rowe's machines are networked. Every time a song is played, a royalty is paid to the record label. Rowe can also approach the record label and guarantee that a new song will be played at a certain time on a specific number of jukeboxes. All this functionality is a result of the new generation of M2M.

Jim Collins, an engineer for Rowe, says, "People still have to go collect the money, but if a new disc comes out, an owner can sit in his office and download a CD for US$4 per jukebox and update all jukeboxes with the new CD." The ability to remotely manage NetStar cuts down on the cost of "one-stops" and buying several copies of a CD for US$15 and manually installing them into each jukebox. This is one case where the benefit of networking is clear: considerable time and money savings.

Light bulb monitor, nPhase

Another example of successful M2M deployment is a solution from nPhase, a Chicago-based company, nPhase provides remote monitoring services to cell tower operators. This need emerged as a result of FAA regulations requiring companies operating cell towers greater than 200 feet tall to install proper tower lighting. This regulation is designed to prevent aircraft collisions, but it's a costly requirement for tower owners. In fact, a tower operator is fined US$10,000 per incident if the FAA isn't notified within 30 minutes of a tower light going out.

nPhase created a solution to monitor the tower lights and report back on the status to the tower owner. This not only significantly reduces the time and cost of sending someone out to check the towers every hour, but also keeps our skies safe and helps cell tower operators avoid hefty penalties.

Patient monitoring, Lantronix

Lantronix is extending device networking to the healthcare market by enabling patient-monitoring devices throughout a hospital. Lantronix helped Welch Allyn, a medical device company, release an updated version of its advanced patient-monitoring system called the Acuity Central Monitoring Station (ACMS).

From a single computer workstation, Welch Allyn's monitors provide vital sign and emergency alarm information for up to 60 patients. The system reports on a patient's blood pressure, temperature, heart rate, respiration, and other vital signs. The nurse on duty can initiate or change monitoring functions from the nursing station or from a patient's bedside.

With nursing shortages and growing concerns about tracking and administering quality healthcare, Lantronix's point-of-care solution addresses the real needs of the healthcare market. It improves the quality of service, potentially reduces liability for negligence, increases patient satisfaction, and can help physicians be more efficient.

Smart shipping, controlGen

controlGen, based in King of Prussia, Pennsylvania, is using M2M in the shipping industry. Deployed in trucks used to ship produce from southern Turkey to Amsterdam, controlGen's device-monitoring application tracks device characteristics (on, off), diagnostics (working, broken), and environmental conditions (temperature), helping customers avoid user error and machine downtime that account for the loss of particularly fragile shipments such as tomatoes.

"Our customer was losing, on average, 20 percent of any given shipment, says Bill Bradfield, controlGen co-founder and CEO. When you re shipping 40,000 [euro] (approximately US$46,000) of produce per shipment it's easy to see how much an M2M solution is worth to my company."

Utilizing M2M communications to avoid shipment losses can save this particular client roughly 8,000 [euro] (approximately US$9,200) per shipment. Given the frequency of shipments in the perishable goods market, this translates into savings of much higher magnitude.

M2M impact

These examples demonstrate how forward-thinking companies are turning their devices into true information assets. With the ability to tap into a machine's data stream on an ongoing basis, companies can track and service their assets throughout their entire lifecycle--from the assembly line to the recycling heap. This is redefining customer relationships and business operations.

One important factor that differentiates M2M communications from the current flood of connected devices is the data involved. Roger Dewey, VP Americas, Sony Ericsson M2M Division, states, "The difference between M2M and traditional information device business models is information devices rely on pushing data to people. M2M gives you access to information you already own but, until now, have not been able to get your hands on. This is a very important distinction and will create major new opportunities for OEMs and service providers alike." Access to this information served as the impetus for the growth of ERP and CRM systems in the 1990s.

It isn't just the owners of enabled machines who stand to benefit from M2M. Service companies can begin to anticipate and respond to problems as they arise (even before customers are aware of the problem). They can also reduce costs by remotely upgrading software and device features, sending out repair or re-supply personnel only when necessary, and automating the supply chain. The most innovative companies have discovered new revenue streams by connecting to their devices.

Hurdles for M2M

Unlike the PC era, which resulted in the networking of millions of computers, billions of everyday devices and nodes can be networked for M2M communications (figure 1). The scale of this movement will lead to a much more invisible and integrated role for technology in our lives. Yet, as the trend toward M2M acceptance unfolds for wide scale adoption, there are several hurdles to overcome.

[FIGURE 1 OMITTED]

First, there must be a high degree of integration between data and network communications. The benefit of electronic data gathering is the ease and speed by which companies can accumulate data in the right knowledge centers.

A knowledge center can be either internal or external to a company. In the late 1990s, many companies invested in internal knowledge center applications such as SAP and Peoplesoft. Companies might also choose to outsource the handling of their asset monitoring to a service provider operating a network operating center (NOC). The service provider can collect and analyze asset related information and suggest appropriate actions to take.

Unfortunately, proprietary software and incompatible networking modes conspire to slow down the rate of systems deployment. These systems must also be relatively easy to install and maintain. Companies burned by costly ERP, CRM, and other efforts will turn a skeptical eye toward anything that resembles large-scale data management implementations.

Second, there's a public perception that these technologies present issues of privacy and data security. Although risks of sharing data will always exist, companies must make greater efforts to assure the public and business users that their data and systems are protected. The industry and government must develop improved encryption methods, particularly for wireless communications, and clear legislation (with the interest of the consumer in mind) regulating how personal information can be gathered and used. With the threat of international terrorism and the prevalence of computer hackers, companies must also be careful about what systems they make available through Web sites and passwords. Rigorous testing and upkeep of these systems must become as much a part of a company's daily operation as answering customer calls.

Last, companies must understand more clearly the real costs of their business operations and the true benefits of M2M. Too many companies view M2M technology investments as mere product enhancements, without considering the greater strategic benefits they might achieve. In addition, some companies will pilot device implementations without considering that larger-scale deployments yield exponentially better results. M2M does offer the opportunity to gain a strategic edge, but these implementations will fail without the proper vision and leadership in the business.

Moving forward

Microchips and sensors are replacing the runs and bolts of everyday devices. Prices of these electronic systems are falling at a time when the trend toward miniaturization continues and computing and communications power increases. Wireless networks and high-speed access will make it easier to bring devices online. New, affordable service models will make it easier for users to get the most from their equipment. Instead of paying "reactive rates," companies can take preventative steps to minimize the total costs of operating and owning their devices. Industry alliances will be able to provide end-to-end solutions that satisfy the more complex needs of business customers. All of these trends are converging to drive further acceptance of M2M in many industries.

MOBILE BUSINESS BENEFITS

Whether it's meter reading in the utility industry, environmental or security monitoring for buildings, or equipment performance monitoring in manufacturing, M2M can help devices, machines, and applications wirelessly communicate to make business operations more efficient.

RELATED ARTICLE: Zigbee: a standard of efficiency.

ZigBee is an emerging M2M technology based on the IEEE 802.15.4 RF standard. ZigBee is network and application software designed to provide a low-cost, low-power, flexible, secure, and reliable communication. It's different from other wireless communication technologies because it has the shortest range and lowest data transmission rates, making it a good fit for sending text and simple graphics.

Although its short range and low data transmission rates make ZigBee appear to be less useful than other wireless technologies, its power is in its simplicity. Often times, standards such as Bluetooth, Wi-Fi, and cellular communications are far more robust than necessary for simple wireless personal area networks (WPANs). ZigBee's stripped down communication standard is a good substitute for power hungry communication standards that require devices to be on all the time and transmit data over long distances. Devices relying on such connectivity aren't a good fit for some M2M applications. Having to replace batteries on remote machinery is a hurdle that continues to plague other wireless efforts. In contrast, ZigBee users can expect multi-year battery life.

The ZigBee standard is being advanced and promoted by the ZigBee Alliance, a non-profit industry consortium consisting of more than 35 companies including five promoter companies (Honeywell, Invensys, Mitsubishi, Motorola, and Philips).

The physical, media access, and data link layers for 802.15.4 are expected to be formally approved sometime in 2003. Efforts are also underway to define network, security, and application profile layers; drafts should appear by the summer of 2003.

Based on the members of the ZigBee Alliance, I expect the standard to first surface in industrial-control and home-networking applications. The opportunity for ZigBee includes anything from wireless home security and remote home automation to call buttons for the elderly and wireless computer peripherals.

For more information, go to http://www.ZigBee.org.

Ian Barkin is managing director of The FocalPoint Group, a market intelligence and research firm committed to providing information and support to the suppliers and beneficiaries of M2M technology. FocalPoint's research includes the analysis of adoption trends and market innovations that help to direct investment, product development, marketing, and communications activities for the coming world of connected devices, people, and environments, [e-mail].