Value Chain Awards
The Value Chain Awards honor the most successful corporate adopters of M2M technology and the team of solution providers that made their success possible. The awards highlight the process of combining multiple technologies such as device-connectivity hardware, radio modules, network service and provision, as well as application software and infrastructure, and show how all of the elements of the M2M value chain created a winning solution for the end customer.
Codensa reduced the average interruption period during power failures by 16% as a result of its M2M implementation. Codensa’s project is focused on remote control of circuit breakers and reclosures, which protect the energy distribution network and reestablish connection following a power failure.
Traditionally, distribution companies have no control over remote circuit breakers and cannot be aware of the equipment status. When a failure occurs, the distribution breaks down, causing a blackout. By remotely monitoring circuit breakers and reclosures, however, Codensa can take prompt action and even guarantee continuous service through automatic network reconfiguration.
Renewable Energy Systems Inc. is one of the largest wind-energy companies in the world and is involved in most aspects of wind-energy projects including research, development, engineering, construction, operation and maintenance, electricity generation, and sales. With help from a team of M2M technology providers, RES implemented a wireless data solution to remotely manage wind-monitoring equipment for data collection and analysis.
The M2M solution resulted in significant benefits for RES and its clients. For example, RES now enjoys better planning capability because it can more effectively analyze wind-farm sites. RES estimates the cost of the modems was recovered in a mere six months.
Petrobras Distribuidora SA more commonly known as BR, operates the South American nation’s largest fuel-distribution network. With M2M technology, the company solved two issues that are absolutely central to its business model.
Each week, BR bills all of its service stations based on dispenser displays. It also has the responsibility of tank-level monitoring and replenishment. By networking pump displays, gas dispensers, and tank-level meters, BR’s machine-to-machine system registers the total fuel sold every five minutes and reports the data every hour, allowing online monitoring of sales as well as changes in tank levels.
Ecast Inc. operates a touchscreen media network with more than 8,000 digital-broadband jukeboxes. In order for customers to access Ecast’s enormous online music database, the jukeboxes must have continuous Internet access. Traditionally, this connectivity was provided by local broadband providers, which led to additional service agreements and customer service issues.
Using M2M technology, however, Ecast leveraged cellular wireless as a single-source solution that reduced installation and maintenance costs, improved profitability, and also boosted customer satisfaction. In fact, the adopter says the solution has greatly simplified the deployment and management of remote jukeboxes and provides flexibility and scalability that previously wasn’t possible.
Ecast started by equipping 25 of its jukeboxes and later expanded the deployment to an additional 500 sites within six months. Based on the success of these sites, Ecast says it is now expanding the project even further with plans to roll out more than 3,000 new wireless-enabled jukeboxes in the next year.
Camelot Group PLC operates the U.K. National Lottery and runs the network that sells tickets to players in partnership with more than 26,000 retailers. In October 2006, Camelot rolled out 2,500 “jackpot communicators” across its network of lottery retailers.
The jackpot communicator is a wireless digital sign that displays jackpot levels for Lotto and EuroMillions in realtime. The M2M system improves the speed and accuracy of the updates and also allows retailers to spend less time on point-of-sale administration, which substantially improves operational efficiency.
Camelot began the project with a 90-store trial run across a range of National Lottery retailer formats, from convenience stores to supermarkets. Camelot credits the technology with increasing the level of awareness for potential lottery players, leading to boosted ticket sales in participating stores. That uplift in sales delivered a rapid return on Camelot’s investment in machine-to-machine technology.
The Detroit Edison Co a subsidiary of DTE Energy Co., generates and distributes electricity to 2.2 million customers in southeastern Michigan. The company uses coal, nuclear fuel, natural gas, and hydroelectric pumped storage to generate its electrical output.
Using M2M to monitor physical assets, Detroit Edison developed a solution across its 19-unit fossil fleet. The company created a fleetwide performance Center in Ann Arbor, Mich., and analysts at the center work with the power plants to identify developing problems and also to make accurate capacity and cost assessment of power units offered to Detroit Edison’s Midwest ISO (independent service operator).
Kelpetro Inc. an independent producer of oil and natural gas, uses M2M technology to solve a whole host of business issues. The company needs to know when its assets aren’t functioning properly; it needs to know when and how much oil is removed from tanks; it needs to verify the accuracy of data collected by field personnel; and it needs to prevent vandalism of its tanks.
All of these issues were resolved with a machine-to-machine system that enables Kelpetro to remotely monitor its operations via a Web portal. For instance, if a machine senses motion, it sends an alarm so they can remotely operate a camera and even print pictures of culprits.
Bepensa SA a bottler for The Coca-Cola Co., www.coke.com, Atlanta, Ga., in Mexico’s Yucatan Peninsula, is using an M2M wireless vending solution to streamline operations. As part of a trial deployment, the system is installed on approximately 75 of Bepensa’s vending machines.
Early results from the trial were impressive: overall sales increased 7% compared to zero growth in the rest of Bepensa’s machines. What’s more, the driver on the test route is able to service 43% more machines per route compared to the standard routes, yielding a reduction in service cost of 23%.
Wawa Inc is a multibillion-dollar grocery chain and is one of the industry’s most aggressive adopters of machine-to-machine technology. By sharing data between operational equipment and systems with business applications, Wawa reduced expenses and improved performance.
Wawa’s M2M system networks more than a dozen different types of physical assets ranging from grease traps to water meters. The technology is also used for energy management, enabling Wawa to understand individual store energy consumption, reduce overall cost, and benchmark energy performance at each store location. Following a successful trial, Wawa is deploying the system in more than 550 stores.
|
Retail/Hospitality
Bronze
VeriFone Holdings Inc.
San Jose, Calif.
www.verifone.com
|
|
VeriFone Holdings Inc. manufactures electronic payment equipment, such as point-of-sale terminals and electronic-funds transfer systems used to authorize credit card and debit card transactions. VeriFone was one of the first companies to introduce Internet-connected payment systems.
So far, VeriFone has installed several hundreds of thousands of M2M-enabled terminals. In 2006, the company introduced its smallest all-in-one wireless payment system for payment processing at restaurant tables using debit cards. VeriFone’s product line features Wi-Fi, DSL, CDMA, and GPRS capabilities, using machine-to-machine technology to deliver speed, security, and mobility for its customers.
Chilectra SA is the nation’s largest energy-distribution company with more than one million customers. The company is controlled by Endesa SA, www.endesa.es, Madrid, Spain, the world’s fourth-largest energy conglomerate.
Chilectra took on the ambitious task of migrating its largest commercial and industrial customers to an automated meter-data management process. The energy firm already had a dialup AMR (automated meter reading) system, but it wasn’t scalable enough to meet its new goals. As a result, Chilectra implemented a cellular-based system that gave it access to meter information every 15 minutes along with tampering alarms.
The main goal of the new system is better communication availability. In fact, with inspiration from sister company and fellow M2M Value Chain Award winner Ampla Energía e Servicos, www.ampla.com, Rio de Janeiro, Brazil, Chilectra says it is aiming for 97% availability compared to 91% from the dialup system.
|
Automated Meter Reading
Bronze
National Power Corp.
Quezon City, The Philippines
www.napocor.gov.ph
|
|
National Power Corp. is a state-owned utility that sells excess power capacity to corporations with self-generation capability. The program delivers considerable benefits to both National Power and its customers, but it’s also a resource-intense process of bidding and payments.
As a result, the company implemented an M2M solution in which data from power meters and generators at customer locations is captured and sent to National Power. By using this method, customers still get to take advantage of lower prices for power through the innovative program, and National Power can also verify customers are complying with its requirements.
The system is an impressive exercise in customer service, enabling clients to bid on an hourly basis and reduce total energy costs. Meanwhile, it also helps National Power overcome major business challenges, such as timely payment processing and compliance monitoring.
|
Fleet Management
Gold
BP PLC
London, U.K.
www.bp.com
|
|
BP PLC is one of the world’s largest energy companies, and BP’s National Transportation Dept., Warrenville, Ill., operates a fleet of service vehicles for pipeline repair and other maintenance issues. To monitor driver performance, the department installed onboard telemetry units that provide onboard diagnostics such as driver speed, seatbelt engagement, acceleration and deceleration rates, drive time, and idle time.
The system also uses GPS (global positioning system) data to monitor and optimize routes. BP completed a trial deployment in mid-2006 and now monitors 800 of its fleet vehicles. The company says driver-safety violations are diminishing and the number of accidents is down as well.
Kirby-Smith Machinery Inc. is a rental and service firm that provides construction, utility, and mining equipment. The company has a fleet of service trucks used by technicians in the field to repair any mechanical problems with equipment at customer sites.
To improve the productivity of their technicians, Kirby-Smith implemented an M2M solution that remotely tracks vehicle location. By arming the company with this information, the technology enables Kirby-Smith to immediately dispatch service trucks for jobs that would otherwise have to wait until the next day. As a result, the service firm upgraded its customer service and improved its efficiency.
Pendum Inc. a provider of automated-teller machine maintenance and armored service, operates more than 500 armored vehicles. The company leverages M2M technology for AVSL (automatic vehicle security and location), providing second-by-second reporting of vehicle location and helping ensure driver safety.
The application also provides theft and security features to prevent illegal use of vehicles delivers voice-enabled trouble alerts, and uses telematics interfaces such as sensors, keypads, card readers, and barcode readers. With more than 800 maintenance technicians and 70,000 ATMs served, Pendum reaps considerable value from this M2M security application.
|
Location-Based Services
Gold
Southwest Dealer Services Inc.
Irvine, Calif.
www.swds.net
|
|
Southwest Dealer Services Inc. provides car-protection products, service contracts, and other services to more than 500 vehicle dealerships in the U.S. The company set out to create a device that dealerships could sell directly to consumers for vehicle tracking. The end result, though, is even more ambitious.
KARR Track is a comprehensive tracking system that dealers preload on their vehicles to protect them on the lot prior to sale. The solution is then offered to car buyers as a theft-protection service. The system is so effective that Southwest Dealer Services says if it were implemented into every dealership car theft would be virtually eliminated and dealership liability would be reduced by more than 15%.
KARR Track’s first customers report zero car thefts from their lots. Also, by preloading the system in vehicles, installation time is down 30% and sell-through to consumers is expected to increase significantly.
Jaguar Cars USA a luxury-vehicle manufacturer that is part of Ford Motor Co., recently rolled out JaguarWatch, an M2M vehicle-tracking solution featured in all model-year 2007 Jaguar cars sold in the U.S.
The service combines satellite, cellular, and Internet technologies to enable drivers to monitor the location of their own vehicles via the Web. Deployment of the project began in December 2006 following a successful trial. The package includes a cellular airtime subscription for the first year with the option for owners to renew thereafter.
In researching the project, Jaguar discovered strong consumer demand for asset-protection systems and recognized additional customer value through insurance discounts. Jaguar and its dealerships also benefit from increased revenue created through the sale and installation of the monitoring unit.
Agfa Graphics is the largest business unit of Agfa-Gevaert Group, www.agfa.com, Mortsel, Belgium, providing the printing and publishing industries with a wide range of prepress solutions. The company offers a remote-diagnostic system named :IntellSyst for its print-production imaging systems.
:IntellSyst is one of the most widely used M2M solutions with more than 3,000 customer sites and 10,000 devices in deployment. Agfa estimates that the :IntellSyst program helps it remotely solve more than 95% of software problems and more than 40% of equipment problems. In fact, most :IntellSyst customers receive a response from Agfa within five minutes.
Viasys Healthcare Inc. is a research-based medical technology company focused on respiratory, neurology, and orthopedic products. Using M2M technology, the company launched VCare Connect, a remote-service solution that has reduced field-service visits by 15%.
Using VCare Connect, customers initiate remote-service requests and provide diagnostic information to Viasys’ support team. The manufacturer reports that as a result of having this direct and immediate connection to its products, service-agreement renewals have increased by 10%. In fact, VCare Connect is so successful, Viasys has rolled it out across three divisions and 15 product lines.
ABB Robotics a division of ABB Ltd., www.abb.com, Zurich, Switzerland, is using machine-to-machine technology to deliver differentiated proactive services on its products. In 2006, the company launched a service named ABB Remote Monitoring (www.abbmonitoring.com), which allows its robots to connect to enterprise systems using cellular-wireless technology.
ABB service personnel use information from the robots to diagnose and quickly resolve problems. The service center says it receives around 1,000 calls per month, making the ability to resolve equipment problems extremely valuable for the manufacturer and adding considerable value to assets operating in the field.
VAL-CO is a manufacturer of watering systems and other products for the agriculture industry. The company’s product lines monitor livestock and site conditions. VAL-CO is using M2M technology to meet one of agriculture’s most pressing needs: to monitor livestock and barn conditions and also to correct them when necessary.
In April 2006, the company introduced GrowTrac, a wireless monitoring system that connects multiple facilities and sites into a single Web application. It reports information about barn temperatures, equipment failure, energy use, and other factors that are critical to a grower’s operation.
GrowTrac provides a number of important business benefits to customers that help deliver rapid return-on-investment. One of the most important features is intelligent alarming that delivers notification of equipment failures and environmental-threshold violations. Another is predictive diagnostics, which measures disease risk, low feed, and underweight animals.
|
M2M in Action
Bronze
Metropolitan Transportation Commission
Oakland, Calif.
www.mtc.ca.gov
|
|
Metropolitan Transportation Commission handles transportation planning and financing for the San Francisco Bay Area. The Commission and other California transportation authorities are using M2M technology in emergency highway call boxes so that stranded or endangered travelers have a way to contact the nearest police department or state patrol for assistance.
The call boxes are entirely self-sustaining, using cellular wireless technology and integrating solar panels to supply power. Dating back to January 2006, 2,600 units were installed and deployed, and another 1,500 units are expected to follow this year. The new boxes eliminate the costly and time-consuming trenching required by conventional landline call boxes, and they are also designed to be scalable for upgrades by the cellular carriers.
The MTC says it also plans to add features such as traffic monitoring and remote reporting to the call boxes, making them even more valuable for the area’s transportation systems.