CUTTING THROUGH THE NOISE Applying Connectivity Data Across the Whole Enterprise Machines today have a lot to say. And if they are plugged into the enterprise in a way that businesses can understand, the possibilities are endless. Machine-to-machine (M2M) technology has made this a reality. M2M technology allows organizations to gather data from the edge of the enterprise and apply it in ways that impact the business. This white paper will provide an overview of how organizations can apply connectivity data across the enterprise to impact the business. It will define the term operational visibility and discuss its impact on an organization. It will also discuss the integration of the demand and supply chains and include application examples that demonstrate the value of integrating equipment data throughout the enterprise. Joel Young has more than 22 years of experience in developing and managing data and voice communications. Joel joined Digi International as Vice President of Engineering in June 2000 and is currently the Vice President of Research and Development and Chief Technical Officer. He is responsible for research and development of all of Digi s core products. Prior to joining Digi, Joel was Vice President of Sales & Marketing at Transcrypt International where he was responsible for product development for all information security products. During his tenure at Transcrypt, he also served as Vice President of Product Development and Vice President of Engineering where he was responsible for engineering, research and product development for wireless communications products, cellular telephony, wireline telephony and data security. Joel Young, Vice President of Research and Development, CTO, Digi International, is a leader in the connected solution market focused on building and deploying M2M and IoT solutions that deliver real business value for its clients.
Are You Ready to Compete in Today s Connected World? A major benefit of M2M technology is operational visibility. Operational visibility allows organizations to integrate their demand and supply chains. For example, a customer service organization can respond to auto-generated and auto scheduled service tickets when a machine goes down or gets close to failure, rather than waiting for a human to recognize an issue and create an alert. This allows an enterprise to improve on-time performance metrics and enhance customer service. Organizations typically manage their businesses using trusted analytical tools like ERP systems, CRM solutions, marketing software, etc. Now companies can manage their equipment in the same way. M2M Technology Enablers Sensor, gateway, battery, cloud and cellular network technology are key enablers of M2M solutions. All have experienced dramatic advancements in recent years. For example, 10 years ago, sensors were the size of a hockey puck and cost as much as $00. Sensors were also connected via landline, if at all, and had limited battery life. Today, sensors are generally the size of a nickel, wireless, offer greater functionality and cost a tenth of their previous price. Today s gateways also optimize battery life because they allow users to transmit data only when necessary not continuously. Similarly, batteries have become smaller and offer longer life in more challenging environmental conditions such as colder, warmer and moisture-rich environments. Cellular technology has also improved has become more economical. Because organizations are optimizing business applications, cellular network cost is decreasing. Companies are transmitting only necessary equipment data, allowing them to connect equipment cost effectively that was previously uneconomical to connect. Finally, cloud computing platforms have enabled greater adoption of M2M technologies. Cloud solutions have become more robust, more scalable and less expensive. Cloud environments like Digi Device Cloud provide the infrastructure required to access, control, configure and upgrade unlimited devices securely over the Internet. PAGE 1
The solutions offer greater data storage and data analysis capabilities, allowing organizations to lessen the complexity and maximize the return on investment (ROI) of their M2M technology deployments. Migrating from Data Production to Data Production, Integration and Application Traditionally, organizations look at M2M as a way to produce data using sensors and gateways attached to equipment to produce data for consumption. However, as described above, the evolution of technology (sensors, devices, clouds and networks in particular) has allowed data to be produced more economically over time. Therefore, the data available to the enterprise has increased dramatically. However, organizations are struggling to leverage the big data in a way that is valuable to the enterprise. Organizations now have a surplus of data to impact more functions within the enterprise. As more data is produced, enterprises obtain greater value by applying the data across the organization. For example, consider a coffee chain that wanted to track coffee quality at its retail locations. To do so, the company attached sensors to its coffee pots to record brew cycles. This allowed the coffee chain to understand when the coffee was being brewed, but not how long it was being held. The coffee chain therefore integrated the point of sale data into the equation. If a coffee shop brews coffee at 10:00am and is still selling coffee at 11:00am with no additional brew cycles, the coffee chain knows that the store is compromising coffee quality. This is a great example of how forward-thinking companies are producing equipment data and integrating it successfully to provide operations visibility. Operational Visibility Operational visibility provides visibility of equipment and assets at remote locations that would not normally be visible without a physical presence. For example, it is important for a manufacturer to understand how many widgets are coming off an assembly line, how much power is being consumed, etc. In a traditional operation, a worker would need to be present to count the widgets coming off the assembly line and document energy consumption. With an M2M solution, this can be done remotely, and therefore more efficiently and profitably. Driving operational visibility of valuable remote equipment can lead to greater machine uptime, improved warranty management, justin-time service and parts management and more. PAGE 2
Integrating Demand and Supply Chains A good M2M strategy will result in tightly integrated demand and supply chains. Demand will directly communicate with supply via M2M communications dramatically enhancing operational efficiency. Consider a remote storage tank that requires chemical for a manufacturing process. When the tank becomes depleted (or nearly depleted), a sensor will acknowledge this and send an order to the order management system. That order is then automatically routed to the appropriate vendors for fulfillment. This would occur in a matter of seconds. Another good example is of an MRI machine that is continuously feeding data into the organization. If helium levels run low, the machine sends a message. The message is then analyzed for severity and compared to handling rules before a case is created. An alert is routed to all relevant parties and lets IT staff and the mobile field services team know about the alert. With this knowledge, the team has all of the information necessary to address the concern and close the case quickly, which leads to improved up-time performance metrics and enhanced customer satisfaction. PAGE
Security Done Right Considering the value of an M2M project, forward-looking organizations are embracing M2M technology to create a competitive advantage. However, even the most modest M2M projects can be complex for most organizations. By improving operational visibility and integrating the demand and supply chains, organizations are achieving unprecedented levels of efficiency. Innovations in sensor, gateway, cloud and cellular network technology are enabling a whole new class of connected device. These connected devices are transforming business and driving profit and ROI by applying machine data throughout the enterprise. In today s highly competitive marketplace where every company is looking for an edge, are you prepared to compete in the new connected world? About Digi International Digi International (NASDAQ:DGII) is the M2M solutions expert, combining products and services as end-to-end solutions to drive business efficiencies. Digi provides the industry s broadest range of wireless products, a cloud platform for device management, and development services to help customers get to market fast with wireless devices and applications. Digi s entire solution set is tailored to allow any device to communicate with any application, anywhere in the world. Digi Is Your Complete M2M Solution Create Embedded Modules and Wireless Design Services to build your own M2M or IoT product from the ground up. Deploy Cellular Routers, Gateways and Modems to communicate with your products and assets wirelessly. Manage Digi Cloud Software and Professional Services to manage your connected machines and applications. Advisory and Consulting Services PAGE 4
Key Takeaways Single-board Seamlessly Computers (SBCs) are an ideal platform for rapid, highly focused product design; the range of possibilities continues to expand. Now is the time to create your M2M strategy and roadmap as cost and complexity of M2M solutions continue to fall. Move beyond just gathering data from your devices; transform your device data into actionable intelligence. Drive operational visibility by harnessing the power of remote asset management in the cloud. integrate your demand and supply chain for enhanced machine management and customer satisfaction. Contact a Digi expert and get started today PH: 877-912-444 www.digi.com Digi International Worldwide HQ 11001 Bren Road East Minnetonka, MN 554 Digi International - France +-1-55-61-98-98 Digi International - Japan +81--5428-0261 Digi International - Singapore +65-621-580 Digi International - China +86-21-5049-2199 /digi.international @DigiDotCom /digi-international Copyright 2015 Digi International Inc. All rights reserved. 9100068 B1 10/15 While every reasonable effort has been made to ensure that this information is accurate, complete and up-to-date, all information is provided AS IS without warranty of any kind. We disclaim liability for any reliance on this information. All registered trademarks or trademarks are property of their respective owners.