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Your truck wants to talk to You.

so too does your metal stamper. Ditto for the

office copy machine. while you’re at it, you

might want to take a look at that message

from the warehouse. It’s from a pallet.

science fiction? Hardly. advances in wire-

less technology and communications have sud-

denly given voice to a once-silent drone: the

business machine. new systems, known collec-

tively as machine-to-machine (M2M) wireless

networks, are transforming everyday devices

into never-blinking sentinels that provide both

information and insight.

M2M wireless networks supply data about

virtually anything—temperature, moisture

levels, pressure, vibration—in fractions of a

second. the technology, which links remote

sensors and computers into wireless communications networks,

enables businesses to track moving and stationary assets and in-

ventory. “sensors embedded inside a truck, for instance, can re-

lay information on the truck’s location, fuel consumption, engine

status and the temperature and humidity of its cargo,” says tobias

ryberg, senior analyst at Berg Insight, a specialist in M2M business

intelligence based in Gothenburg, sweden.

the biggest roadblock facing enterprises planning an M2M sys-

tem is the absence of a universal communications standard. this

means that most current M2M applications are custom projects

that incorporate unique communications protocol. Help is on the

way, however. the M2MXMl Project, an open-source initiative, is

working on an open-standard XMl-based protocol for M2M com-

munications. several device vendors have embraced M2MXMl,

and a Java aPI is already available. and with advances and stan-

dardization in the protocols, as well as tags and radio-frequency

identification (rFID) readers, the scale and prices have reached a

point where use of the technology for asset tracking and location

services is feasible.

combining the power of active rFID technology, location-based

Machines That Speak Using wireless networks, assets and inventory tell you where they are—and what they need.

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Managing growTh in enTerpriSeS: SenSor-baSed neTworking

F O R C U S T O M E R S O F A T & T F R O M T i M E i n C . C O n T E n T S O l U T i O n S

in transit, in warehouses or on retail shelves, wireless identification technology helps companies monitor and manage goods traveling in all directions.

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software and wi-Fi lan networking, M2M services are ideal for

enterprises that are investing in wireless campus lans and need to

improve the utilization and management of critical assets within that

environment. Managers at global businesses are starting to grasp the

unlimited potential of M2M systems. according to research published

by Berg Insight (“wireless M2M and Mobile Broadband Devices,”

February 2007), worldwide shipments of M2M modules reached close

to 21 million units in 2007. By 2011, Berg Insight predicts, M2M ship-

ments will come close to 62 million units.

while manufacturers were early champions of the systems, M2M

networks are now attracting interest from a wide array of business-

es. “the technology has developed a very broad scope,” notes Joe

Barkai, practice director of product life-cycle strategies at Manu-

facturing Insights, an IDc company and business advisory firm

in Framingham, Mass. “there aren’t very many organizations that

won’t benefit from this technology in one form or another.”

Sensors Working Overtime

M2M networks are versatile. as the technology evolves, businesses

are hitting on an increasing number of uses for the net-

works. Many have discovered that the technology can be

deployed across a range of monitoring applications.

when attached to engines and other types of mechan-

ical systems, sensors can detect and help diagnose prob-

lems as they occur. that’s crucial for outfits with large

fleets, such as shipping and transportation companies.

Placed on refrigerated trucks and in storage rooms, sen-

sors can guard against sudden changes in temperature—

pivotal for food, flower and pharmaceutical companies.

In warehouses, wireless M2M-enabled location-

monitoring systems track the flow of items. this not

only speeds the delivery of merchandise but also lets

companies cut down on buffer stock.

these remarkable sensor networks also can be used

to remotely supervise stationary assets, such as water

pumps, power generators and fuel tanks. as ryberg

notes, M2M wireless networks can be installed in

hours in places where it could take months to set up more con-

ventional wired networks.

Indeed, one of the chief attractions of the technology is that it

allows managers to keep tabs on items that can be expensive to mon-

itor in a more traditional way. auction houses, for example, have de-

ployed M2M networks to provide 24/7 surveillance, a much cheaper

and effective alternative to hiring security firms.

Turned Off

while M2M networks automate tasks once handled by humans,

the systems don’t set themselves up—at least not yet. careful

planning is the first and most essential step in designing an M2M

system, Barkai says. He notes that it’s crucial to define a project’s

Managing growTh in enTerpriSeS: SenSor-baSed neTworking

“There aren’t very many organizations that won’t

benefit from this technology.”

Machine ShopM2M is clearly no fad. Worldwide shipments of wireless M2M modules will likely more than triple by 2011.

Source: Berg InSIght, “WIreleSS m�m and moBIle BroadBand devIceS,” feBruary �007

2011

20,970,000

25,600,000

32,970,000

44,990,000

61,940,000

2007

2008

2009

2010

Number of modules shipped

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goals at the outset and to plan accord-

ingly. “You have to know what you want

to achieve,” he cautions, “and whether

you will be automating a manual pro-

cess, enhancing an existing M2M process

or creating something entirely new.”

the Manufacturing Insights survey

found that close to half of the respon-

dents relied on an M2M network to au-

tomate a manual process. Interestingly,

though, about 28% said they used the

technology to put a new process in place,

and 26% indicated M2M systems helped

them enhance an existing process.

one such process: turning off equip-

ment. Experts note that some busi-

nesses rely on the technology as a virtual nervous system that

automatically shuts off electronic controls. “Machines located

almost anywhere can be switched on or off, or moved to a dif-

ferent setting, in order to adapt to changing conditions,” says

raghu Das, cEo of IDtechEx, an rFID market analysis firm in

cambridge, England.

Moisture sensors placed in a farm field, for example, can

alert a remote computer that conditions are dry enough to

begin systematic watering. In the transportation sector, M2M

wireless technology enables companies to send a long-distance

kill-switch command to a sensor located inside the engine of a

stolen truck or vehicle.

such innovative approaches, however, require careful inte-

gration of M2M wireless technology with existing It systems

and applications. “You want to select a technology that will be

compatible with whatever you are currently using,” advises sam

lucero, a senior M2M analyst at aBI research, a technology ad-

visory service headquartered in oyster Bay, n.Y. “compatibility

is an area that should be examined very closely.”

Das suggests that enterprises begin by experimenting with

the technology in limited deployments, particularly in nonbusi-

ness critical areas. “that way,” he says, “you can test various

approaches, learn the ropes and get ready for the larger, more

complex implementations that will surely follow.”

Managing growTh in enTerpriSeS: SenSor-baSed neTworking

A mobile business world can depend on machine-to-machine wireless networks to track all of the moving parts.

Device DriversDeployers of wireless M2M networks said the systems generate all sorts of business improvements. These include:

Source: manufacturIng InSIghtS, an Idc company, “m�m maturIty and InduStry adoptIonmanufacturIng InSIghtS and m�m magazIne InduStry Benchmark Survey,” july �007

Regulatory Compliance

New Source of Revenue

Improved Asset Monitoring

Lower Costs

Improved Customer Service

56%

24%

16%

78%

67%

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