IS3101 MANAGEMENT OF
INFORMATION SYSTEMS
Case Study On Machine-to-Machine
Technology
Prepared By Team 15
ALEXANDRA MAGALY MARCELLE MIOQUE（A0118182J）
FU YAO (A0083580A)
MARCIN KRZYSZTOF SZYDLOWSKI (A0118300Y)
MARTIN WIDJAJA (A0075003W)
NYGEL JARON WALLACE (A0118696N)
QI MANLI (A0084692U)
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Table of Contents
1. Introduction ............................................................................................................ 3
2. Possible solution, strategies.................................................................................... 3
3. Focus on M2M......................................................................................................... 4
3.1 What is it about? ......................................................................................................... 4
3.2 How does it work? ....................................................................................................... 4
3.3 Machine to Machine applications ................................................................................ 6
Healthcare......................................................................................................................... 6
Automotive ........................................................................................................................ 7
Home Appliances .............................................................................................................. 7
Energy and Utilities ......................................................................................................... 7
Logistics & Transportation ............................................................................................... 8
Security and public safety ................................................................................................ 8
Retails ............................................................................................................................... 8
3.4 S.W.O.T. analysis ........................................................................................................ 9
3.5 Examples .................................................................................................................... 9
3.5.1 Diebold Incorporated ............................................................................................... 9
3.5.2 Leica Microsystems .................................................................................................10
3.5.3 General Electric ......................................................................................................11
4. Conclusion ............................................................................................................ 12
4.1 How can companies benefit ....................................................................................... 12
4.2 Possible Challenges ................................................................................................... 12
Reference: ................................................................................................................. 13
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1. Introduction
‘Money makes the world go round.’ Such is the mantra for businesses around the world
who aim to maximize their profits by increasing their competitive advantage in various
ways such as lowering prices or increasing product quality. Optimization of business
processes through the use of information systems is one such method, allowing
businesses to reduce operation costs and increase speed of information relay. The
question is, is it possible to apply the same principle of employee work optimization to
the machines that run production? The answer is in M2M information systems.
Abstract:
The purpose of this project is to briefly introduce M2M systems from business and
technical points of view, describe their applications in various industries and
demonstrate current applications by industry leaders.
2. Possible solution, strategies
A firm’s aim is to provide the best services at the lowest possible price to attain
maximum sales and profit. There strategies that will allow firms to lower their prices and
others that will increase the quality of services and goods, but they are often mutually
exclusive.
One such example for cost reduction is the six sigma supply chain management system.
Early adoption of the six sigma process improvement system can help a firm rapidly
improve and evolve their production processes to achieve lower costs. The best
example of problem that may happen in every company is the bullwhip effect, a
distortion of information about the demand of a product as it goes up the supply chain.
This causes inefficiencies to occur as managers make decisions with inaccurate
information.
Information systems used for supply chain management can help to improve the quality
of services. However, it will not help a lot if the company wants to reduce its costs. M2M
is a solution that tackles both cost reduction as well as quality improvement, while being
significantly simpler than six sigma to implement.
First, M2M allows a real-time reactivity and a better risk prevention. M2M can also
reduce costs through optimal inventory management. Customer satisfaction is also
improved due to the real-time nature of M2M systems as well as failure prevention. Last
but not least, M2M considerably reduces unnecessary travel through the possibility of
remote intervention. Remote intervention is also environmentally-friendly. With the
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increasing importance of being pro-environment, a firm adopting M2M systems with
remote intervention would set themselves apart from the competition. In the subsequent
paragraphs, further details of the technology as well as its applications will be explored.
3. Focus on M2M
3.1 What is it about?
M2M is a broad term used to describe a group of technologies that allow communication
between machines. M2M is a part of a bigger concept called “Internet of Things” which
assumes that in the future there will be a parallel Internet used only by machines. This
system was proposed by Kevin Ashton in 1999. The whole idea may be described by
quoting its inventor.
"If we had computers that knew everything there was to know about things - using data
they gathered without any help from us - we would be able to track and count everything,
and greatly reduce waste, loss and cost. We would know when things needed replacing,
repairing or recalling, and whether they were fresh or past their best"
Decades later, people are starting to see the possibility of Kevin Ashton’s vision. More
and more devices are connected to the Internet, average bandwidth is increasing
exponentially and there are no signs of slowing down. Machine to machine systems are
broadly used by many companies. GE has even came up with their own conception
called Industrial Internet.
There are a lot of names and variations of this technology, but the core idea is the same
– connecting devices to the Internet. The next paragraph will briefly describe how is it
done.
3.2 How does it work?
M2M is strongly related to cloud computing, as it often utilizes the cloud for data storage
and processing. Supervisory control and data acquisition (SCADA) systems are
predecessors of M2M systems that are known nowadays. These systems are based on
PLC (programmable logical controllers) which are connected directly to the sensors and
executive devices (pumps, valves etc.). After executing specific tasks PLCs send data
to the information systems where it is processed to more user friendly form. That were
the origins of the M2M systems that are used now and will be used in the future.
With the fast expansion of the computer networks, technicians decided that it is possible
to connect every single machine to the Internet and process the information in the cloud.
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However, new technologies had to be developed to make it possible without large
energy consumption. People started to think about new wireless personal area networks
(WPAN) standards which would allow to do the measurements and transfer data without
large expenses.
Key issues of the new standards had to be:
● Battery powered nodes with low power consumption
● Optimized wireless communication to lower power consumption
● Autonomic computing – immunity to single node failure
● Low delay
● Minimization of human intervention in management of sensor networks
Keeping in mind the requirements, IEEE created the 802.15 working group which
specifies WPAN standards.
The best known WPAN technologies are:
● Zigbee
● Popular in smart metering
● Mesh topology (better breakdown resistance)
● Simpler than other technologies
● Bluetooth Smart Ready
● Low power Bluetooth
● Health & Sports applications
Many companies (like Zensys) created their own technologies (ZWave) tailored
specifically for their products. What is common amongst WPAN technologies is that
they are designed to exchange information amongst various devices with low energy
consumption.
Devices which are used in M2M systems are described below:
● Communication modules – installed in the devices by producers to provide
communication with the gateways
● Gateways/Routers – receive data from various communication modules and
send it by Ethernet or cellular network to the Cloud for processing
● Information system – analyzes and processes received data (e.g. Axeda)
● Applications – communicates with the user, control devices, etc.
Not all of the devices have to be a part of WPAN to be a part of M2M system (e.g.they
might be connected to the Internet directly via cellular network). Raw data collected
from different devices is sent to the gateway which routes it to the cloud, where it is
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processed and analyzed by cloud platforms like Axeda. Axeda allows their customers to
write their own applications using web services. After this stage, information systems
may display various graphs or charts formatted for user friendliness or send information
to another machine via Internet to perform any action. Example presented below will
better explain typical applications of M2M systems. Detailed explanations on the
applications in various areas will be covered in section 3.3.
1. Motion sensors detect movement in different sectors of company warehouse
2. CCTV cameras are turned on
3. Information system located in the cloud performs image analysis and identifies
human through facial recognition
4. IS turns on the alarm, locks doors, calls security company, starts recording in
higher definition, sends text messages to warehouse staff
5. Warehouse staff watches on their mobile phones how thief is caught by the
police.
Cisco predicts that in 2020 there will be 50 billion devices connected to the Internet
(currently 8,7 billion). They are going to generate significant amount of Internet traffic.
Network operators will need to adjust their networks to be ready for more uplink traffic,
as opposed to current Internet usage which is download-heavy. The increase in load of
data coupled with the change in proportion of uplink/downlink traffic might be
overwhelming for unprepared cellular networks. The increasing popularity of M2M
systems will be a challenge for network operators and telecoms, though the bigger
telecommunication companies are likely to be adequately prepared, seeing as some of
them already offer M2M services. (AT&T and SingTel)
3.3 Machine to Machine applications
M2M solutions possess the potential to significantly change and improve the way
various industrial sectors perform. Let’s examine some of these applications in various
sectors.
Healthcare
The potential of M2M communication technology is increasingly being explored and
adopted by healthcare sector. The real time communication between patients and
medical devices alleviates the problem of the scarcity and cost of medical human
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resources, shortens waiting time and improves efficiency. Remote sensors could be
equipped onto treatment devices to gather vital statistics such as blood pressure,
heartbeats rate and sugar level. Once this data is obtained, it is transferred and routed
to a controlling server for examinations (Aasha B., 2012). When these health conditions
experience irregular change, medical staff will be alerted and respond appropriately. By
adopting M2M system, patients’ health condition can be monitored 24/7 without the
need for a large pool of medical staff, while improving the response time for medical
response.
Automotive
Automotive sector are continuously looking for M2M solutions to improve safety, control,
capacities and functionalities in automobiles. With M2M technologies being integrated
into existing automotive systems, applications such as body electronics, power train,
vehicle security and controls, and telematics could be applied (M2M MAGAZINE, 2013).
By attaching sensors such as sensors for temperature, speed and fuel levels into the
built-in systems, communication between automobiles and road infrastructure could be
established. The sensors could send data about current road conditions, possible
problems, dangers and viable solutions to devices and the devices could alert drivers
timely. In addition, traffic could be controlled. The sensors could send data about traffic
volume and speed to other applications or relevant departments for controlling purposes,
facilitating traffic flow through two-way communication between the car and the relevant
traffic authorities.
Home Appliances
M2M technology could offer innovative solutions to improve quality of life and enhance
end-user experience. With increased wireless connectivity, various smart home
appliances based on M2M can be invented. For instance, a M2M based food
management system being integrated with refrigerator could allow users to use their
smart phones to check food conditions and locations stored inside the refrigerator. In
this case, there is a communication between refrigerator and smart phone via the
Internet. M2M solutions for home appliances have the capabilities to improve the
efficiency of home management.
Energy and Utilities
By implementing M2M technology into utility meters, the process for transforming
energy products and billing customers will be efficient. For example, with remote
sensors being attached into oil drill machine, data about equipment pressure, flow rate
and temperatures could be sent to a centralized computer for controlling. By doing so,
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efficiency and energy savings could be maximized. Utility meters based on M2M can
automatically measure and send data about energy usage to utilities companies for
billing and controlling purposes. In addition, intelligent grid management can enhance
the reliability of energy distribution. M2M technology in the field of metering and utilities
helps prevent energy loss and improve overall performance.
Logistics & Transportation
M2M could be applied to control transport operations and facilitate logistics tracking.
Fleet management system is an M2M based system that incorporates satellite
positioning and data communication to increase visibility and control over transport
operations. By applying M2M technology, vehicles and cargo containers could be
tracked easily and data could be sent to centralized computer for better resource
management. For instance, data transmitted may include fuel level, delivery status,
temperature and humidity, current location and road conditions. The instant availability
of these tracking data is crucial for ensuring a timely and efficient logistics and
transportation.
Security and public safety
By integrating M2M to existing security systems, alarms could be triggered
automatically when potential dangers emerge and corresponding actions taken
automatically to ensure safety. Security and surveillance systems, motion detectors,
personal tracking and alarm response system are just some examples of M2M
applications in the field of security and public safety. Surveillance system, for instance,
can be used to monitor open spaces, keep track of incidents and alert authorities. In the
case of emergency, corresponding authorities could take actions such as controlling
exits by opening or closing gates remotely to contain the situation.
Retails
Retail industry increasingly uses M2M to monitor and control their operations, optimize
inventory and handle transactions. Vending machines, for example, often utilize M2M
systems to manage its operations. Real-time inventory data and operational status of
individual vending machines are sent to a server. Operators working with suppliers will
thus be able to manage the supply chain and provide adequate inventory for each
vending machine without suffering from the bullwhip effect. Point-of-sale (POS) M2M
application is another important application that enables the retail sector to gain
competitive advantages. It enables cashless payment by means of credit card payment
(Margaret R., 2011). Customers, on the other hands, enjoy enhanced shopping
experience with less need for cash payment.
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3.4 S.W.O.T. analysis
Strengths
● M2M is a fast-growing market.
● M2M helps manufactures gain
efficiency, reduce waste, enhance
machine productivity, identify
maintenance issues before they
occur, and cut cost in a tough
economy (General Electric, 2013)
Weaknesses
● The M2M market is immature
● Many firms have limited
awareness of M2M technology or
have doubts about the true
business benefits
● IT challenge of ensuring that the
M2M data flows can be integrated
into existing enterprise IT systems.
Opportunities
● Government regulations to help
simplify technology standards and
foster innovation
● The expectation of cheaper
technology, smaller devices, and
the increase of connected devices
will further drive the need for M2M
● Long-term growth and innovation
from experimentation within
individual sectors
Threats
● The M2M market may not develop
as rapidly as expected
● Customer concerns about privacy
and security
● The high potential for security
threats on M2M systems
3.5 Examples
M2M has the potential to bring immense benefits to people and organizations. Many of
them truly believe that M2M is going to be the next big thing that revolutionizes the
industry. Some companies across different industries have utilized M2M technology to
great effect for their organizations.
3.5.1 Diebold Incorporated
Diebold Incorporated is company that provides integrated self-service delivery as well
as security systems and services. As the technological trend is moving towards a more
software-driven self-service terminal, Diebold sought to service its ATMs remotely over
the Internet.
Instead of sending a technician on site, remote service software enables them to
service machines within minutes. When there is a need to dispatch a technician,
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diagnosis can be done remotely while the technician is en route to the ATM, and this
significantly reduces unnecessary downtime wasted while travelling. (Lee, The
Connected Effect-part 1,2013)
Embracing the concept of M2M, ATMs are equipped with remote services and datacapture technology. It stores relevant information regarding the performance of devices.
It is also can be accessed quickly via remote software. Diebold’s remote support
operators are also directly alerted when an ATM fails, and can immediately start
resolving the problem by viewing a mirror image of the module. Thus the information is
more detailed for analysis and resolution. Technician could be well informed of the
problem with good knowledge of the specific machine that is down before they arrive.
This increased their fix-it-the-first-time measurements. (Lee,The Connected Effect-part
1, 2013)
Implementation of M2M systems was highly fruitful for Diebold. The company resolved
approximately 17 percent of total issues remotely and cut overall downtime by 15
percent. Turnaround time for problem resolution decreased from an average of one to
three hours to fewer than 30 minutes when remote corrective action is successful.(Lee,
The Connected Effect-part 1,2013)
In addition, Diebold could now even expand the level of its service and support offerings
to include predictive maintenance, software version control and remote monitoring &
notification, all because of M2M.
3.5.2 Leica Microsystems
Another example is Leica Microsystems, a manufacturer of microscopic imaging
applications, measurement, and analysis.
The company aims to move from a reactive to proactive service that focuses on
downtime avoidance, predicting potential problems and providing preventive repair all
over the world. Customers would thus benefit from negligible product downtime, faster
service, and higher productivity through this change.
Leica Microsystems outsourced a site from Axeda called Leica RemoteCare that
allowed registered users to log into the site and view the devices in the regions that are
under their maintenance. Using Axeda ServiceLinkTM applications, users could
compare current parameters with the products’ specifications. These include hardware
and calibration changes, software and PC system status, laser errors, galvanometer
settings and critical temperatures. With such information available for monitoring, critical
events are now becoming more predictable and thus less prone to downtime.(Lee, The
Connected Effect-part2, 2013)
For example, they could monitor the performance of tissue processors with Leica
RemoteCare. When the temperature goes out of allowable range, an alarm is raised
and an email will be sent to users and customers, who could then make necessary
adjustment before losing a specimen. The company also monitors cleaning sequences,
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so that if the system is required to clean, the user is alerted so that they don’t waste
specimens. RemoteCare could also be used when power is diminishing. The system will
prompt users to adjust the microscope prior to any issue, ensuring uninterrupted
research.
Leica could also remotely inform its users about a failing program which is under their
remote monitoring. For example, Leica received an error message about a program
failing with a tissue processor at a university. The service representative called the
customer, who was unaware of any issue, and advised him to inspect his machine
immediately. The customer removed debris, and the tissue processor worked just as
fine as before. As a result of this proactive service, the university avoided possible
system downtime with no loss of specimen.(Lee, The Connected Effect-part2, 2013)
Leica Microsystems has realized substantial benefits from this program, it reduced 40%
unscheduled downtime and 33% field service visits. They also reduced 50 onsite visits
in the first half of 2009 and 400 visits at the end of 2009. That translates into a saving of
more than 500,000 U.S. dollars.(Lee, The Connected Effect-part2, 2013)
3.5.3 General Electric
General Electric (GE), one of the most influential multinational conglomerate corporation
with business scope spanning across energy, IT, consumer and industrial electronics
also sees the great potential of M2M technology and they truly believe it will change the
way business operates. They have recently held a conference, “Minds and Machines” to
announce the use of “Industry Internet”(based on M2M technology concept) in
industries such as aviation, transportation, manufacturing and hospitals(General Electric,
2013).
During the conference, they have announced nine M2M technologies that could be used
in industries to significantly increase efficiency decrease downtime and reduce cost. For
example, by connecting machines to the Internet, railway industries could now move
freight around more intelligently with remote monitoring and diagnostic. Another
technology is to increase efficiency in hospital operation management. It is used to
integrate the assignment of beds, workflow between departments, inflow and outflow of
patients as well as equipment management data to reduce waiting time and increase
service quality.
GE aims at achieving real material outcome for customers. It estimates an overall 1%
increase in efficiency in all industries with the use of smart machines, analytics and
mobility.1% is a significant improvement for large, multibillion-dollar industries where
competitive advantages are increasingly difficult to attain. For example, a 1% savings in
fuel consumption translates to $33 billion for the aviation industry, and 1% operational
savings translates to $63 billion for the healthcare industry. (Nusca, 2012)
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4. Conclusion
4.1 How can companies benefit
In conclusion, M2M technology has transformed the way business gets done. By
connecting machines, devices, systems and people together, businesses and
organizations are able to use the new forms of data to transform existing operations,
explore new market opportunities and gain powerful insights. With the adoption of M2M,
various operational processes such as monitoring, controlling, inspection, production
and transportation processes becomes more efficient, reliable, automated and
productive. The enhanced level of control optimizes operational processes, streamlines
supply chain, thus saving costs and reducing operation delay. When data can be
gathered from remote machines in real-time, decision making is faster, more accurate
and informed. On-going communication with customers could also help companies
understand customer’s needs and bring out new products to market effectively. In
addition, intelligent transport, intelligent grid management and waste management
systems empowered by M2M can dramatically reduce energy loss. It is beneficial to
sustainable development in the long run. In sum, M2M can help companies to achieve
their business objectives and enable them to gain competitive advantages.
4.2 Possible Challenges
Although there are many benefits related to using M2M technology, they do not come
without challenges. Security is the main risk of implementing a M2M solution. The digital
nature of M2M systems lends itself to digital threats, such as worms, viruses, and trojan
horses. There are several known M2M threats than can adversely impact a business,
including interception and interruption attacks on the system. These attacks can lead to
the disclosure of information to unauthorized parties, fraud, and critical infrastructure
exposure. In order to reduce security threats communication networks, connected
devices, and communication components must be secured to combat potential attacks.
This can be accomplished through several security measures including protecting
physical devices from tamper-resistant enclosure to protect physical devices,
authentication via certificates, SSL/TLS encryption, two-factor authentication with SMS,
and data encryption. In addition, it is very important that M2M customers educate
themselves abouts risks related to the technology. Firms should utilize their existing
expertise and seek proper consulting if needed. (Ennesser, 2013)
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Reference:
Aasha B., 2012. Engineering and Technology Magazine. M2M in healthcare.
Retrieved from http://eandt.theiet.org/magazine/2012/04/wellness-connected.cfm on 10
Oct 2013
Ennesser F., 2013. Security in Machine-to-Machine Communication: The role of the
Telecommunication Operator. Retrieved from http://docbox.etsi.org/ on 11 Oct 2013
Margaret R., Mar 2011. point-of-sale terminal (POS terminal). Retrieved from
http://whatis.techtarget.com/definition/point-of-sale-terminal-POS-terminal on 11 Oct
2013
M2M MAGAZINE, 2013. M2M Report: Automotive Sensors Market Forecast. Retrieved
from http://www.machinetomachinemagazine.com/2013/09/22/m2m-report-automotivesensors-market-forecast-2022/ on 10 Oct 2013
General Electric. (2013). Minds and Machines. Retrieved 10 19, 2013, from General
Electric: http://www.ge.com/mindsandmachines
Nusca, A. (2012, 11 29). GE unwraps 'Industrial Internet': M2M for planes, trains,
manufacturing. Retrieved 10 19, 2013, from Zdnet: http://www.zdnet.com/ge-unwrapsindustrial-internet-m2m-for-planes-trains-manufacturing-7000008097/
Lee, I. (2013, 6 20). The Connected Effect-part2. Retrieved from Axeda Blog:
http://blog.axeda.com/archived-axeda-blog-/tabid/90718/bid/99355/M2M-in-the-WildReal-World-Examples-Part-2-Healthcare-costs-and-security.aspx
Lee, I. (2013, 6 10). The Connected Effect-part 1. Retrieved 10 19, 2013, from Axeda
blog: http://blog.axeda.com/archived-axeda-blog-/tabid/90718/bid/99009/M2M-in-theWild-Real-World-Examples-Part-1.aspx
Connectivity to Machine (M2M) and electronic banking for businesses. Retrieved 2013
10 19 from SFR (french operator):
http://pme.sfrbusinessteam.fr/internet-et-reseau/M2M/
Machine-to-machine application, retrieve from Singtel:
http://info.singtel.com/large-enterprise/m2m/machine-to-machine-application
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