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Whitepaper
Real-time data from
remote machines
Global Machine-to-Machine (M2M)
communications
m2m.vodafone.com
Global machine to machine (M2M) communications
What this paper
is about
Thanks to machine to machine (M2M)
communications, it’s now possible to link
almost any type of remote machine or
device to central information systems,
enabling the gathering of real-time eld
intelligence that can be used to improve
efciency, reduce costs, introduce new
services, and gain competitive advantage.
The potential of M2M communications
is almost unlimited: applications include
eet and asset tracking; smart metering;
industrial, building and home automation;
improved security, and more.
This paper explores the key business drivers
behind M2M wireless communications,
the different hardware, software and
communications elements involved,
and describes how to introduce M2M
technology effectively on a global scale.
With the needs of the global business in
mind, we explain the benets of M2M and
why it’s crucial to take an enterprise-wide
view when implementing solutions. This
paper is of particular relevance to CEOs,
senior management, CIOs, and IT managers,
as well as regional decision-makers.
Contents
Executive summary 03
Key M2M drivers and enablers 04
Smart solutions in every industry 06
Key M2M challenges and inhibitors 12
Developing a global M2M strategy 14
About Vodafone 18
3
Executive summary
Anytime, anywhere access to real-time intelligence from remote
machines or devices is changing the way that multinationals
operate. Businesses are beginning to realise the potential that
M2M represents for increased efciency, revenue generation and
improved customer satisfaction.
Contents
Executive summary 03
Key M2M drivers and enablers 04
Smart solutions in every industry 06
Key M2M challenges and inhibitors 12
Developing a global M2M strategy 14
About Vodafone 18
What is M2M?
M2M is the networking of
intelligent, communications-
enabled, remote assets. M2M
devices gather and exchange
information automatically
without human interaction and
connect the physical world to
back-end IT infrastructure.
M2M-connected assets can be
xed or mobile and include cars
and truck eets, utility meters,
copiers and printers, kiosks and
wireless displays, ventilation and
air-conditioning sensors, home
medical devices, tness monitors,
and CCTV cameras.
What can you do with
M2M information?
M2M-connected devices can
report on a huge range of
conditions including temperature,
location, consumption, heart rate,
stress levels, light, acceleration,
altitude, and speed.
Using all this data, you can gain
immediate feedback on how a
particular remote asset is being
used, which product features
are most popular with your
customers, and what problems
(such as errors or breakdowns)
typically arise. This information
is useful for improving business
processes, which helps provide a
competitive edge.
How does M2M work?
An M2M solution includes
intelligent sensors and
microprocessors that are
embedded in the remote asset,
and a communications module
that receives and transmits data
to central management systems
where it can be analysed and
acted on.
Often an M2M-connected
endpoint will send and receive
its data over wireless networks,
using GSM, GPRS, EDGE, 3G, LTE,
or Wi-Fi and WiMAX. But for some
static implementations, a xed-
line connection using copper, bre
or Ethernet will be appropriate.
Global machine to machine (M2M) communications
Key M2M drivers and enablers
Thanks to expanding global cellular coverage, the potential of
M2M is almost unlimited: across any device, in any business sector,
located anywhere in the world. The drivers for M2M vary depending
on the specic business and its needs.
New business models
While cost saving is still very important and valuable to businesses,
this represents only one aspect of the potential of M2M. The
most powerful driver for M2M is that it can enable new business
models. Increasingly, M2M solutions are being used to enhance
business operations, improve functionality and environmental
stewardship, and to connect the business with its end users. At this
point the M2M solution moves from simply being part of business
processes, to a key part of the overall business operation and
customer experience.
Take, for example, a manufacturer of commercial air-conditioning
systems. It sells its products through distributors and building
integrators, and may receive equipment fault information only
second hand. It would be unable to track usage and performance
data, with no view of who is using its equipment or where it’s
installed.
By integrating an intelligent monitoring and control M2M
system into their air-conditioning assets, the manufacturer gains
direct, ongoing access to eld intelligence about its units. This
information can be used to ensure that manufacturing faults are
promptly corrected and to gain valuable product usage statistics.
If this M2M solution were extended to provide a front end
accessible to end users, such as a website, the manufacturer could
then gain direct access to the customer and have the opportunity
to enhance its product offering.
Stronger service offerings
M2M can be used to strengthen and differentiate service offerings
and add greater value to the end customer. Sensors built into a
vehicle for example can be used to add new functionality such as
‘infotainment’ and navigation services and to enable the vehicle to
self-diagnose and warn the driver of potential difculties before a
long journey is undertaken.
When built into an end-to-end logistics system, more advanced
M2M solutions can be extended to provide additional benets
such as producing information for customs ofcers, or providing
conrmation that a shipment has satised environmental
constraints and has not been tampered with en route.
M2M solutions offer the ability to continuously monitor and
assure compliance of remote assets regardless of location. The
automation of quality monitoring can reduce administrative costs,
improve visibility and deliver benets beyond simple reductions in
the cost of monitoring compliance.
By automatically collecting business mileage information, for
example, a company can produce employee mileage claims and
tax deduction conrmation without waiting for the employee to
submit an expense form.
For those businesses involved in transport and logistics this easily
extends to conrming compliance with drive time regulations,
CO
2
emissions, working hours and corporate responsibility for
occupational training.
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