UNIT 2

M2M TO IoT
• The M2M value chain in IoT encompasses a diverse range of
components, stakeholders, and processes, all working together
to enable efficient communication and data exchange.
• From devices equipped with sensors and actuators to cloud
platforms that provide storage and analytics capabilities, each
element in the value chain plays a vital role in shaping the IoT
landscape.
• By delving into the intricacies of the M2M value chain,
organizations can streamline operations, drive automation,
enhance decision-making, and create new opportunities for
innovation across various industries.
• From smart cities and industrial automation to healthcare and
energy management, IoT M2M value chain applications are
vast and impactful.
• The M2M value chain typically includes the following elements:
• Devices and Sensors: These are physical objects or machines
equipped with sensors, actuators, and communication modules to
collect and transmit data. Examples include sensors in industrial
machinery, smart home devices, or wearable health trackers.
• Connectivity: This layer involves the network infrastructure and
communication protocols that allow devices to connect and
communicate with each other and with cloud platforms or other
systems. It includes technologies such as cellular networks, Wi-Fi,
Bluetooth, or Low Power Wide Area Networks (LPWANs) like
LoRaWAN or NB-IoT.
• Data Transmission: This component encompasses the
mechanisms and protocols used to transmit data between devices
and backend systems. It includes protocols like MQTT (Message
Queuing Telemetry Transport), CoAP (Constrained Application
Protocol), or HTTP (Hypertext Transfer Protocol).
• Cloud Platforms and Gateways: Cloud-based platforms and
gateways act as intermediaries between devices and applications
or services that consume data. They provide storage, processing,
and analytics capabilities, allowing data aggregation, analysis,
and visualization. Cloud platforms like AWS IoT, Microsoft Azure
IoT, or Google Cloud IoT are commonly used.
• Data Management and Analytics: This layer involves processing
and analyzing collected data to extract meaningful insights. It
may include real-time analytics, machine learning algorithms, or
predictive analytics techniques to uncover patterns, anomalies,
or trends.
• Applications and Services: This component encompasses end-
user applications or services that utilize M2M communication
insights. These can range from consumer applications like smart
home systems or vehicle tracking to industrial applications like
predictive maintenance or supply chain optimization.
• Security and Privacy: As data is transmitted and
processed across multiple layers of the M2M value
chain, security, and privacy considerations become
crucial. This involves implementing robust security
measures such as encryption, authentication, and
access control to protect the data and ensure the
integrity of the system.
• Device Management: Device management plays a
vital role in the M2M value chain. It involves tasks
such as device provisioning, configuration, monitoring,
and firmware updates. Device management platforms
allow organizations to remotely manage and maintain
large fleets of connected devices efficiently.
• Standards and Interoperability: Standardization is crucial for interoperability
and seamless communication within the M2M value chain. Industry
consortia and organizations work on developing and promoting standards
such as MQTT, CoAP, OMA-DM (Open Mobile Alliance - Device
Management), and oneM2M to ensure compatibility and ease of integration
across different devices, networks, and platforms.
• Network Providers and Connectivity: Network providers, such as cellular
network operators, offer connectivity services to facilitate M2M
communication. They provide the infrastructure and coverage required for
devices to transmit data over the network. Network providers may also offer
specialized connectivity solutions like eSIMs (embedded SIMs) or dedicated
IoT network services.
• Edge Computing: Edge computing brings computation and data processing
closer to devices or sensors, reducing latency and enabling real-time
decision-making. In the M2M value chain, edge computing can help process
data at the edge of the network. This reduces the need for extensive data
transmission to cloud platforms. It enables faster response times and can be
particularly useful in applications where real-time analysis is critical, such as
industrial automation or autonomous vehicles.
• Vertical Integration: The M2M value chain often involves various stakeholders
vertically integrating their operations to deliver end-to-end solutions. For example, a
company may manufacture devices, develop connectivity solutions, provide cloud
platforms, and offer application services. Vertical integration streamlines the value
chain, improves interoperability, and enhances the overall user experience.
• Data Monetization: Data generated through M2M communication holds immense
value. Organizations can leverage this data to gain insights, develop enhanced
services, or monetize it through partnerships or data marketplaces. Data monetization
models may involve selling aggregated and anonymized data to third parties, offering
value-added services based on data insights, or utilizing it for targeted advertising.
• Evolving Ecosystem: The M2M value chain in IoT is constantly evolving, driven by
advancements in technology and emerging use cases. Various connectivity options,
such as 5G networks or satellite-based communication, expand M2M communication
possibilities. Edge computing capabilities continue to improve, enabling more
sophisticated data processing at the network edge. Additionally, AI and machine
learning further enhance intelligence and automation within the M2M ecosystem.
• As the M2M value chain in IoT continues to mature, it will open up new
opportunities for innovation, efficiency, and improved decision-making across
various industries, including manufacturing, healthcare, transportation, and smart
cities.
 Benefits and applications of the M2M value chain in IoT:

Benefits:
• 1. Automation and Efficiency: M2M communication enables the automation of various processes,
reducing manual intervention. This improves operational efficiency, minimizes human errors, and
optimizes resource utilization.
• 2. Real-time Monitoring and Control: With M2M communication, devices can transmit data in
real-time, allowing organizations to monitor and control their assets remotely. This is particularly
beneficial in applications such as remote equipment monitoring, smart grid management, or
predictive maintenance, where real-time insights enable proactive decision-making.
• 3. Cost Reduction: M2M communication helps organizations reduce costs through improved asset
utilization, predictive maintenance, and optimized resource allocation. By monitoring and
analyzing data from connected devices, organizations can identify cost savings, streamline
operations, and reduce downtime.
• 4. Enhanced Safety and Security: M2M communication enables robust safety and security
measures. For instance, in industrial environments, connected sensors can detect potential
hazards or abnormal conditions, triggering immediate alerts or automated actions to prevent
accidents. Additionally, M2M communication allows for secure data transmission, ensuring
information privacy and integrity.
• 5. Improved Customer Experience: IoT applications powered by the M2M value chain can
enhance customer experience. For example, smart home systems enable users to control and
monitor their devices remotely. In addition, connected cars provide services like real-time
navigation, vehicle diagnostics, and personalized entertainment options.
Applications:
• 1. Smart Cities: M2M communication enables smart city initiatives, such as
intelligent transportation systems, smart parking, waste management, and
energy-efficient infrastructure. By connecting various city components and
collecting data, cities can optimize resource utilization, reduce traffic
congestion, enhance public safety, and improve the overall quality of life for
residents.
• 2. Industrial Automation: M2M communication plays a vital role in industrial
automation and Industry 4.0 initiatives. Connected sensors, machines, and
control systems enable real-time monitoring, predictive maintenance, and
process optimization. This leads to increased productivity, reduced downtime,
and improved operational efficiency in manufacturing, logistics, and supply
chain management.
• 3. Healthcare: M2M communication enables remote patient monitoring,
wearable health trackers, and telemedicine applications. Connected medical
devices can transmit vital signs, medication adherence data, or emergency
alerts. This allows healthcare providers to monitor patients remotely, provide
timely interventions, and improve healthcare outcomes.
• 4. Agriculture: IoT applications in agriculture leverage M2M
communication to enable precision farming, soil monitoring,
irrigation control, and livestock management. Connected sensors
and actuators optimize resource usage, automate tasks, and
improve crop yields while minimizing environmental impact.
• 5. Energy Management: M2M communication enables smart grid
systems, energy monitoring, and demand response solutions. By
collecting real-time energy consumption data and analyzing it,
utilities can optimize energy distribution, implement demand-side
management programs, and encourage energy conservation.
• 6. Fleet Management and Logistics: M2M communication is
widely used in fleet management and logistics applications. It
allows organizations to track vehicles, monitor fuel consumption,
optimize routes, and improve delivery efficiency. Real-time data
from connected devices enable better logistics planning, reduced
fuel costs, and enhanced customer service
• The M2M value chain in IoT is a dynamic and interconnected ecosystem that
empowers organizations to leverage connectivity and data exchange
between machines. By understanding and optimizing each component of
the value chain, businesses can unlock a multitude of benefits and drive
innovation across diverse industries.
• Through device management, connectivity solutions, data transmission
protocols, cloud platforms, analytics, and robust security measures, the
M2M value chain enables automation, real-time monitoring, cost reduction,
enhanced safety, and improved customer experiences. Organizations can
streamline operations, make data-driven decisions, and optimize resource
utilization, leading to increased efficiency, productivity, and
competitiveness.
• The M2M value chain in IoT spans various sectors, ranging from smart cities
and industrial automation to healthcare, agriculture, energy management,
and logistics. These applications revolutionize processes, enable predictive
maintenance, enhance patient care, optimize agricultural practices, and
transform energy consumption patterns. The M2M value chain is a catalyst
for sustainable development, creating more connected and intelligent
systems that drive positive impacts on society and the environment.
• As the M2M value chain continues to evolve, the integration of
emerging technologies like edge computing, artificial intelligence,
and 5G networks will further amplify its capabilities. This will open
up new possibilities. Collaboration and standardization efforts will
ensure interoperability and seamless integration across devices,
networks, and platforms, fostering a thriving ecosystem of
connected devices and services.
• In conclusion, the M2M value chain in IoT represents the
foundation of a connected world. By harnessing its power,
organizations can drive operational excellence, unlock valuable
insights, and create innovative solutions. This will improve lives,
enhance efficiency, and shape a smarter future. The journey of IoT
and the M2M value chain is ongoing. As technology advances, the
potential for transformative applications and benefits will
continue to expand. Embracing this interconnected ecosystem is
key to staying at the forefront of the digital revolution and
leveraging its immense potential.
An Emerging Industrial Structure for IOT
The International-Driven Global Value Chain and Global Information Monopolies

 Currently, within the industrial structure of the converged

communications industry, there is a large regional disparity between
those companies that produce the infrastructure for the I-GVC and
those that make a significant profit from it.
 Through positioning themselves within the correct part of the GVC,
these companies are able to take the lion's share of the profit.
 Through the breakdown of regional boundaries for collection of
data by the development and implementation of a global converged
communication infrastructure, these companies are able to enlist
every person using a mobile device worldwide as a contributor to
the development of their information products – in effect, every
person worldwide is working for these corporations so that they are
able to sell aggregated data for a huge profit.
Despite this data being collected from people in every corner
of the globe, from the UK, Thailand, Australia, China, and
Africa to even the remotest parts of Kashmir, the surplus
value of the mobile broadband platform is currently being
overwhelmingly captured, developed, and molded into
information products, mostly by U.S. companies.
Through being able to collect and analyze data without being
restricted by the same level of privacy regulation as in
Europe, for example, they are able to create a much better
information product.
Companies in Europe, Asia, and other parts of the globe are
therefore dependent on these companies in order to gain the
most appropriate knowledge for their companies' needs.
profits from it.
• In the same way that the use of IT became a critical success
factor for enterprises in the late 1980s and 1990s, the use of
information products developed within the I-GVC is becoming
critical to securing a competitive advantage in a global
market. Companies are therefore compelled to use the most
effective information product for their needs.
• In effect, the I-GVC, rather than breaking down the digital
divide, as many have predicted, is in fact leading to a new
form of digital discrimination and a new sort of dependency
relationship between large multinationals and those
participants, or “workers”, within the I-GVC.
• While there may appear to be huge differences between the
industrial revolution and the birth of the digital planet in the
nature of how workers are treated, in particular with so much
being advertised as “free” for end-users, there are in fact
many similar parallels in the aggregation of human endeavor
in the processes of the accumulation of capital.
• A multitude of workers contribute to the information products
developed, but only a few large corporations capture the
surplus value. This has in fact led to a few interesting
discussions within industry about who actually owns this data –
is it the company that provides the service, the service provider
that delivers the connectivity, or the end-users themselves?
• An end-user might potentially be able to receive money from
the use of his or her data, a nominal contribution for each time
that data is used for creation of an information product. Profit
sharing arrangements might even be possible between
companies that develop the platform and those that collate the
data into product form. The fact remains, however, that it is
only those companies with the R&D budgets, the scale, and the
global reach necessary to exploit the aggregation of this data
that will be able to make significant
 Basic elements of IoT architecture
• IoT architecture comprises of several IoT
system building blocks connected to ensure
that sensor-generated device data is collected,
stored, and processed in the big data
warehouse and that devices’ actuators
perform commands sent via a user
application.
• The following diagram reflects our approach
to IoT architecture.
• Things. A “thing” is an object equipped with sensors that gather data that will be
transferred over a network and actuators that allow things to act (for example, to
switch on or off the light, to open or close a door, to increase or decrease engine
rotation speed and more). This concept includes fridges, street lamps, buildings,
vehicles, production machinery, rehabilitation equipment and everything else
imaginable. Sensors are not in all cases physically attached to the things: sensors
may need to monitor, for example, what happens in the closest environment to a
thing.

• Gateways. Data goes from things to the cloud and vice versa through the
gateways. A gateway provides connectivity between things and the cloud part of
the IoT solution, enables data preprocessing and filtering before moving it to the
cloud (to reduce the volume of data for detailed processing and storing) and
transmits control commands going from the cloud to things. Things then execute
commands using their actuators.

• Cloud gateway facilitates data compression and secure data transmission

between field gateways and cloud IoT servers. It also ensures compatibility with
various protocols and communicates with field gateways using different protocols
depending on what protocol is supported by gateways.
• Streaming data processor ensures effective transition of input data
to a data lake and control applications. No data can be occasionally
lost or corrupted.

• Data lake. A data lake is used for storing the data generated by
connected devices in its natural format. Big data comes in "batches"
or in “streams”. When the data is needed for meaningful insights it’s
extracted from a data lake and loaded to a big data warehouse.

• Big data warehouse. Filtered and preprocessed data needed for

meaningful insights is extracted from a data lake to a big data
warehouse. A big data warehouse contains only cleaned, structured,
and matched data (compared to a data lake which contains all sorts
of data generated by sensors). Also, data warehouse stores context
information about things and sensors (for example, where sensors
are installed) and the commands control applications send to things.
• Data analytics. Data analysts can use data from the big data
warehouse to find trends and gain actionable insights. When
analyzed (and in many cases – visualized in schemes, diagrams,
infographics) big data show, for example, the performance of
devices, help identify inefficiencies and work out the ways to
improve an IoT system (make it more reliable, more customer-
oriented). Also, the correlations and patterns found manually can
further contribute to creating algorithms for control applications.
• Machine learning and the models ML generates. With machine
learning, there is an opportunity to create more precise and
more efficient models for control applications. Models are
regularly updated (for example, once a week or once a month)
based on the historical data accumulated in a big data
warehouse. When the applicability and efficiency of new models
are tested and approved by data analysts, new models are used
by control applications.
• Control applications send automatic commands and alerts to
actuators, for example:
• Windows of a smart home can receive an automatic command
to open or close depending on the forecasts taken from the
weather service.
• When sensors show that the soil is dry, watering systems get an
automatic command to water plants.
• Sensors help monitor the state of industrial equipment, and in
case of a pre-failure situation, an IoT system generates and
sends automatic notifications to field engineers.
• The commands sent by control apps to actuators can be also
additionally stored in a big data warehouse. This may help
investigate problematic cases (for example, a control app sends
commands, but they are not performed by actuators – then
connectivity, gateways and actuators need to be checked).
• On the other side, storing commands from control apps may
contribute to security, as an IoT system can identify that some
commands are too strange or come in too big amounts which may
evidence security breaches (as well as other problems which need
investigation and corrective measures).
• Control applications can be either rule-based or machine-learning
based. In the first case, control apps work according to the rules
stated by specialists. In the second case, control apps are using
models which are regularly updated (once in a week, once in a
month depending on the specifics of an IoT system) with the
historical data stored in a big data warehouse.
• Although control apps ensure better automation of an IoT system,
there should be always an option for users to influence the behavior
of such applications (for example, in cases of emergency or when it
turns out that an IoT system is badly tuned to perform certain
actions).
• Device management
• To ensure sufficient functioning of IoT devices, it’s far not enough to
install them and let things go their way. There are some procedures
required to manage the performance of connected devices (facilitate the
interaction between devices, ensure secure data transmission, and more):
• Device identification to establish the identity of the device to be sure
that it’s a genuine device with trusted software transmitting reliable data.
• Configuration and control to tune devices according to the purposes of
an IoT system. Some parameters need to be written once a device is
installed (for example, unique device ID). Other settings might need
updates (for example, the time between sending messages with data).
• Monitoring and diagnostics to ensure smooth and secure performance of
every device in a network and reduce the risk of breakdowns.
• Software updates and maintenance to add functionality, fix bugs,
address security vulnerabilities.
• User management
• Alongside the device management, it’s important to
provide control over the users having access to an
IoT system.
• User management involves identifying users, their
roles, access levels, and ownership in a system.
• It includes such options as adding and removing
users, managing user settings, controlling access of
various users to certain information, as well as the
permission to perform certain operations within a
system, controlling and recording user activities,
and more.
 Security monitoring

• Security is one of the top concerns in the internet of things. Connected

things produce huge volumes of data, which need to be securely
transmitted and protected from cyber-criminals. Another side is that the
things connected to the Internet can be entry points for villains. What is
more, cyber-criminals can access the “brain” of the whole IoT system and
take control of it.
• To prevent such problems, it makes sense to log and analyze the
commands sent by control applications to things, monitor the actions of
users and store all these data in the cloud. With such an approach, it’s
possible to address security breaches at the earliest stages and take
measures to reduce their influence on an IoT system (for example, block
certain commands coming from control applications).
• Also, it’s possible to identify the patterns of suspicious behavior, store
these samples and compare them with the logs generated by IoT systems
to prevent potential penetrations and minimize their impact on an IoT
system.
• IoT architecture example – Intelligent lighting
• Let’s see how our IoT architecture elements
work together by the example of smart yard
lighting as a part of a smart home – a bright
illustration of how an IoT solution
simultaneously contributes to user
convenience and energy efficiency.
• There are various ways a smart lighting system
can function, and we’ll cover basic options.
Basic components
• Sensors take data from the environment (for example, daylight, sounds, people’s
movements). Lamps are equipped with actuators to switch the light on and off. A
data lake stores raw data coming from sensors. A big data warehouse contains the
extracted info smart home dwellers’ behavior on various days of the week, energy
costs, and more.
• Manual monitoring and manual control
• Users control smart lighting system with a mobile app featuring the map of the
yard. With the app, users can see which lights are on and off and send commands
to the control applications that further transmit them to lamp actuators. Such an
app can also show which lamps are about to be out of order.
Data analytics
• Analyzing the way users apply smart lighting, their schedules (either provided by
users or identified by the smart system), and other info gathered with sensors,
data analysts can make and update the algorithms for control applications.

• Data analytics also helps in assessing the effectiveness of the IoT system and
revealing problems in the way the system works. For example, if a user switches off
the light right after a system automatically switches it on and vice versa, there
might be gaps in the algorithms, and it’s necessary to address them as soon as
possible.
Automatic control’s options and pitfalls
• The sensors monitoring natural light send the data about the
light to the cloud. When the daylight is not enough (according
to the previously stated threshold), the control apps send
automatic commands to the actuators to switch on the lamps.
The rest of the time the lamps are switched off.

• However, a lighting system can be “baffled” by street

illumination, lamps from neighboring yards and any other
sources. Extraneous light captured by sensors can make the
smart system conclude that it’s enough light, and lighting
should be switched off. Thus, it makes sense to give the smart
system a better understanding of the factors that influence
lighting and accumulate these data in the cloud.
• When sensors monitor motions and sounds, it’s not
enough just to switch on the light when movements or
sounds are identified in the yard or switch all the lamps
off in the silence.
• Movements and sounds can be produced, for example,
by pets, and cloud applications should distinguish
between human voices and movements and those of
pets.
• The same is about the noises coming from the street
and neighboring houses and other sounds.
• To address this issue, it’s possible to store the examples
of various sounds in the cloud and compare them with
the sounds coming from the sensors.
• Machine learning
• Intelligent lighting can apply models generated by machine
learning, for example, to recognize the patterns of smart home
owners’ behavior (leaving home at 8 am, coming back at 7 pm)
and accordingly adjust the time when lights are switched on and
off (for example, switch the lamps on 5 minutes before they will
be needed).
• Analyzing users’ behavior in a long-time perspective, a smart
system can develop advanced behavior.
• For example, when sensors don’t identify typical movements
and voices of home inhabitants, a smart system can “suppose”
that smart home dwellers are on a holiday and adjust the
behavior: for example, occasionally switch on the lights to give
the impression that the house is not empty (for security
reasons), but do not keep the lights on all the time to reduce
energy consumption.
 User management options
• To ensure efficient user management, the smart lighting system can be
designed for several users with role distribution: for example, owner,
inhabitants, guests.
• In this case, the user with the title “owner” will have full control over the
system (including changing the patterns of smart light behavior and
monitoring the status of the yard lamps) and priorities in giving commands
(when several users give contradicting commands, an owner’s command will
be the one control apps execute), while other users will have access to a
limited number of the system’s functions. “Inhabitants” will be enabled to
switch on and off the lamps with no opportunity to change settings. “Guests”
will be able to switch on and off the light in some parts of the house and
have no access to controlling the lights, for example, near the garage.

• Apart from role distribution, it’s essential to consider ownership (as soon as
one system can control over 100 thousand households, and it’s important
that a dweller of a smart home manages the lighting in his yard, and not the
one of a neighbor).
• In simple terms, our IoT architecture contains the
following components:
• Things equipped with sensors to gather data and
actuators to perform commands received from the cloud.
• Gateways for data filtering, preprocessing, and moving it
to the cloud and vice versa, – receiving commands from
the cloud.
• Cloud gateways to ensure data transition between field
gateways and central IoT servers.
• Streaming data processors to distribute the data coming
from sensors among relevant IoT solution’s components.
• Data lake for storing all the data of defined and
undefined value.
• Big data warehouse for collecting valuable data.
• Control applications to send commands to actuators.
• Machine learning to generate the models which are then used by
control applications.
• User applications to enable users to monitor control their connected
things.
• Data analytics for manual data processing.
• Our IoT architecture also contains device and user management
components to provide stable and secure functioning of things and
control user access issues.

• Developing an IoT architecture of a particular solution, it’s also

important to focus on consistency (giving enough attention to every
element of IoT architecture and making them work together), flexibility
(opportunity to add new functions and new logic), and integration with
enterprise systems (teaming up new IoT solutions with previously
implemented corporate IT solutions such as ERP, MES, WMS, delivery
management systems and more).