MODULE 1 – INTRODUCTION TO IoT

CONTENTS

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 1.4 M2M AND IoT FUNDAMENTALS- DEVICES AND
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How IoT works?

 The Internet of Things (IoT), also sometimes referred to as the Internet

of Everything (IoE), consists of all the web-enabled devices that
collect, send and act on data they acquire from their surrounding
environments using embedded sensors, processors and
communication hardware.
 These devices, often called "connected" or "smart" devices, can
sometimes talk to other related devices, a process called machine-to-
machine (M2M) communication, and act on the information they get
from one another.
 Humans can interact with the gadgets to set them up, give them
instructions or access the data, but the devices do most of the work on
their own without human intervention.
 Their existence has been made possible by all the tiny mobile
components that are available these days, as well as the alwaysonline
nature of our home and business networks.

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 1.4 M2M AND IoT FUNDAMENTALS- DEVICES AND
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How its work

Lecture link

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 1.4 M2M AND IoT FUNDAMENTALS- DEVICES AND
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• M2M
The term Machine to Machine (M2M)
has been in use for more than a
decade, and is well-known in the
Telecoms sector. M2M communication
had initially been a one-to-one
connection, linking one machine to
another.
But today’s explosion of mobile
connectivity means that data can now
be more easily transmitted, via a system
of IP networks, to a much wider range
of devices.

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Machine-to-Machine (M2M)

 Machine-to-Machine (M2M) refers to networking of machines (or

devices) for the purpose of remote monitoring and control and data
exchange.
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Machine-to-Machine (M2M)

 An M2M area network comprises of machines (or M2M nodes) which have
embedded hardware modules for sensing, actuation and communication.
 Various communication protocols can be used for M2M local area networks such
as ZigBee, Bluetooh, ModBus, M-Bus, Wirless M-Bus, Power Line
Communication (PLC), 6LoWPAN, IEEE 802.15.4, etc.
 The communication network provides connectivity to remote M2M area
networks.
 The communication network can use either wired or wireless networks (IP-
based).
 While the M2M area networks use either proprietary or non-IP based
communication protocols, the communication network uses IP-based
networks.
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Difference between IoT and M2M

 Communication Protocols
 M2M and IoT can differ in how the communication between the machines or
devices happens.
 M2M uses either proprietary or non-IP based communication protocols for
communication within the M2M area networks.

 Machines in M2M vs Things in IoT

 The "Things" in IoT refers to physical objects that have unique identifiers
and can sense and communicate with their external environment (and user
applications) or their internal physical states.
 M2M systems, in contrast to IoT, typically have homogeneous machine types
within an M2M area network.
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Difference between IoT and M2M

 Hardware vs Software Emphasis

 While the emphasis of M2M is more on hardware with embedded
modules, the emphasis of IoT is more on software.

 Data Collection & Analysis

 M2M data is collected in point solutions and often in on-
premises storage infrastructure.
 In contrast to M2M, the data in IoT is collected in the cloud (can be public,
private or hybrid cloud).

 Applications
 M2M data is collected in point solutions and can be accessed by on-
premises applications such as diagnosis applications, service management
applications, and on- premisis enterprise applications.
 IoT data is collected in the cloud and can be accessed by cloud
applications such as analytics applications, enterprise applications,
remote diagnosis and management applications, etc.
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Devices
 A device is a hardware unit that can sense aspects of it’s environment and/or
actuate, i.e. perform tasks in its environment.

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Devices
 A device can be characterized as having several properties, including:
 Microcontroller: 8-, 16-, or 32-bit working memory and storage.
 Power Source: Fixed, battery, energy harvesting, or hybrid.
 Sensors and Actuators: Onboard sensors and actuators, or circuitry that
allows them to be connected, sampled, conditioned, and controlled.
 Communication: Cellular, wireless, or wired for LAN and WAN
communication.
 Operating System (OS): Main-loop, event-based, real-time, or fullfeatured
OS.
 Applications: Simple sensor sampling or more advanced applications.
 User Interface: Display, buttons, or other functions for user interaction.
 Device Management (DM): Provisioning, firmware, bootstrapping, and
monitoring.
 Execution Environment (EE): Application lifecycle management and
Application Programming Interface (API).
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Types of Devices

 Basic Devices:
 Devices that only provide the basic services of sensor readings and/or
actuation tasks, and in some cases limited support for user interaction. LAN
communication is supported via wired orwireless technology, thus a gateway
is needed to provide the WAN connection.

 Advanced Devices:
 In this case the devices also host the application logic and a WAN
connection. They may also feature device management and an execution
environment for hosting multiple applications. Gateway devices are most
likely to fall into this category
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Gateways
 A gateway serves as a translator between different protocols.
 Most often a gateway refers to a device that performs translation of the
physical and link layer, but application layer gateways (ALGs) are also common.
 Some examples of ALGs include the ZigBee Gateway Device , which translates
from ZigBee to SOAP and IP, or gateways that translate from Constrained
Application Protocol (CoAP) to HyperText Transfer Protocol/Representational
State Transfer (HTTP/REST)

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 1.4 - Business Process in IoT

Business Process
 A business process refers to a
series of activities, often a
collection of interrelated
processes in a logical sequence,
within an enterprise, leading to a
specific result.
 There are several types of
business processes such as
management, operational, and
supporting, all of which aim at
achieving a specific mission
objective.
 some of the business projects
are shown in the underlying The decreasing cost of information exchange between
video the real-world and enterprise
systems with the advancement of M2M.

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Business Process

 As business processes usually span several systems and may get very
complex, several methods and techniques have been developed for their
modeling, such as the Business Process Model and Notation (BPMN), which
graphically represents business processes in a business process model.
 Managers and business analysis model an enterprise’s processes in an effort to
depict the real way an enterprise operates and subsequently to improve
efficiency and quality.
 The introduction of modern ICT has significantly changed the way enterprises
(and therefore business processes) interact with the real world.
 M2M and IoT empower business processes to acquire very detailed data about
the operations, and be informed about the conditions in the real world in a very
timely manner.
 It enables businesses to operate more efficiently, which translates to a business
competitive advantage.

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IoT Integration with Enterprise

systems
As shown in Figure , cross-layer
interaction and cooperation can be
pursued:
 At the M2M level, where the
machines cooperate with each
other, as well as
 At the machine-to-business (M2B)
layer, where machines cooperate
also with network-based services,
business systems , and
applications.
 We can see several devices in
the lowest layer. These can
communicate with each other
over short-range protocols (e.g. A collaborative infrastructure driven by M2M and M2B.
over ZigBee, Bluetooth), or even
longer distances (e.g. over Wi-Fi,
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Distributed Business Process in

IoT
 Transfer of Data from “point of
action” all the way to the backend
system will not be practical and due
to processing load that will incur at
the enterprise side.
 This first strategic step is to minimize
communication with enterprise
systems to only what is relevant for
the business.
 It makes sense not to host the
intelligence and the computation
required for it only on the enterprise
side, but actually distribute it on the
network, and even on the edge
nodes (i.e. the devices themselves), Distributed Business Processes in M2M era
as depicted on the right side of
Figure .
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 1.4 - Business
2.3. IIoT Business Process
model and in IoT
reference Architecture

THE FOUR TYPES OF IIoT DRIVEN BMS:

(a) IIoT digical,

 In this BM archetype, the existing BM is progressively developed, but there is

no radical change that alters the industry logic (Emmrich et al. 2015).

 Established industrial companies mainly use it (e.g., traditional engineering

companies, automobile manufacturers) that use IIoT technologies to optimize
their existing value creation processes.

 This type of BM develops through an evolutionary process – i.e. companies

make continuous, gradual changes to the existing BM. Mostly, there is still no
complete and consistent digitization of the entire value chain, the focus is
usually only on particular sub-areas.

 Therefore, the extent of change is still limited in this BM type. Companies

gradually seek to cover multiple layers of the value creation layer model by
increasingly adding digital elements and connectivity to physical products.
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(b) IIoT Service-centered

 The blend of the physical world with the digital world is notably reflected.
Classic physical products such as machines are connected with digital
components such as sensors and the internet (cloud).

 This enables new value propositions, which are characterized by an

increasing service-orientation.

 This service-orientation can be categorized in two manifestations:

(1) Creating a product-service-system, where besides the core products sold,
additional services are created and commercialized by the use of the above
described “digical BM” and

(2) Selling the product as a service, where the customer only pays for the
usage. We call the latter service-centered BMs, and note they are expected to
be more common in the future
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(c) IIoT Data-driven

 The basis of this BM is the new method of data collection and usage, which
is, among other things, enabled by the integration of sensors.

 The efficient usage and analysis of data is the main success factor of these
BMs (Porter and Heppelmann 2015).

 To create a data-driven BM, companies have to define what they want to

achieve with big data and how the data can be generated. Furthermore, it is
essential to know how the data will be monetized and which barriers will
arise while setting up the BM.

 Studies show that the largest percentage of the established companies

uses the data for advertisements (McKinsey 2018). They gain the data to
get better insights into the customer needs.

 Based on these data, they can adapt their products or services according to
the customer needs. So far, the established companies mainly use the data
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(d) IIoT Platform.

Platforms can support companies in the implementation of the data BM

because they connect the market players and enable the exchange of best
practices (Evans and Gawer 2016).

Hence, firms often apply platform BMs together with data-driven BMs. An
example is Relayr that enables industrial customers to analyze the data
generated by their machines.

The data is combined and processed to identify new BMs in the cloud. The
elevator manufacturer Schindler, for instance, services its elevators with the
help of Relayr (Handelsblatt 2016).
Relayr’s BM is solely based on the provision and processing of data and the
associated consulting activities. The company is operating in the industrial
sector without producing a physical product (except sensors, which are
necessary to generate the data).
The data itself and the analysis of these are the central value proposition of
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DIGITIZED VALUE STREAMS FOR FIELD SERVICE

Field service involves collaboration: the connected device, the customer who
owns the device, the customer service representative (CSR), the Field Service
Dispatcher, the mobile skilled Field Service Technician, and others such as
billing and warranty operations.

It could also potentially involve suppliers for parts that are needed to resolve
the service case.

This illustrates an end-to-end value stream for field service.

This is a high level depiction of field service case, with special emphasis in
connectivity: Connected devices, connected field service, and connected
provisioning of parts.

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• Report a problem: 
In this scenario, a problem could be reported to the customer service
represented. Increasingly, with connected devices, the device itself could detect
and communicate to the servicing organization- which is typically the
manufacturer.
• Triage service: 
The next stage is the triage-ing to determine if the problem can be
diagnosed and fixed remotely or via a service call. The triage might involve
business rules, predictive analytics, as well as machine learning adaptive
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• Get needed parts:

In some cases the service issue could be resolved remotely. Manufactured
edge devices often have sophisticated software that can be updated remotely
by the manufacturer. Devices can also be viewed, pinged or otherwise
controlled remotely.

• Dispatch field service technician: 

The next phase is the dispatching of the field technician. Here also
business rules in conjunction with analytics and connectivity is leveraged to
dispatch the best field technician.

• Wrap up work order: 

Finally, the wrap up of the work order could involve warranty payments,
customer surveys, and overall resolution of the case.

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