M2M – Paving the Way for OEM Success
Within the next few years, it will become inevitable that more machines will be connected via the internet than humans. This evolution will present great significant value to businesses and consumers. The OEM market has always been highly saturated with competition, while profit margins remains at a scarce premium. However, that is all about to change with the emergence of M2M technology. By ushering in this new wave of technology, OEM’s now have a competitive grip on the market.
Today, most forms of communication can still be classified as human oriented – information which allows people and businesses to connect and interact with one another. With the exponential increase in connected M2M devices, and approximately 6 billion in human population, it will only be a matter of time before this type of internet connection is surpassed by the M2M revolution.
The next big development in internet usage is machine-to-machine (M2M) communications, which is projected to exceed human communications in both value, and sheer numbers. Many experts have already predicted that over the next few years, more machines will be connected through the internet than humans (a terrifying notion indeed!). The numbers estimated range in the tens of billions of connected machines will be able to communicate with each other; as well will also be linked to devices such as data mining and processing systems that are able to aggregate data, ultimately yielding a greater value for both businesses and consumers.
Connected Devices Presents a Competitive Advantage for OEM
It’s no surprise that today; most computers are connected to the Internet, which allows operating errors to be automatically reported to PC manufacturers or software suppliers. Software and operating system upgrades are easily accessible through automatic downloads.
In the same vein, M2M communications on OEM equipment can produce similar benefits to both the supplier as well as the end-user. This in turn can result in lower operating costs and can spur greater customer service initiatives.
Ever heard of the term “embedded intelligence”? If you have not, get acclimated, it’s become a prominent component of M2M devices. Sometimes the information coming from a device can be deemed more valuable than the actual device itself: for example, information pertaining to aspects of a device such as part number, physical and purchase location, diagnostics, replacement alternatives, repair instructions etc. All of these intangible device characteristics make the information about assets, costs and liabilities more quantifiable to managers in their decision making process.
There has been a shift in OEM business strategy over the last few years. In this information-driven age, instant knowledge is imperative. It is important for OEM’s to take advantage of equipment operating information that is inaccessible by end-users. This creates an informational channel that puts the OEMs knowledge of the equipment into the direct service of the end-user, collecting operating statistics that both can utilize.
M2M will surely have a profound impact on how OEM equipment is deployed. In most cases, the characteristics and components to a device’s operating information are availably accessible to be collected and used. Through the use of M2M, end-users and OEMs can eliminate the barriers of distance, time, and location. When manufactured objects are continually sending field intelligence back, OEMs will be able to minimize operating costs, explore new revenue opportunities, and solve customer problems as never before.
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