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Machine-to-Machine Communication - Essay Example

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In the essay “Machine-to-Machine Communication” the author analyzes a replacement of an old technology by an innovation that creates new market value for products or services. Adoption of disruptive technology can be either risky or profitable venture…
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Machine-to-Machine Communication

Download file to see previous pages... One example of disruptive technology is the next revolution in machine-to-machine (M2M) communication. It is essentially a technology that helps to establish communication between different sectors of a business without the involvement of additional personnel. One example of an M2M component can be RFID (radio frequency identification). Today, the use of radio frequency identification (RFID) can bring revolution in the supply chain management. RFID tags are “small objects that can be attached to or incorporated into any object, and contain silicon chips and antennas that enable them to receive and respond to radio-frequency queries from an RFID reader” (Santosh & Smith, 2008, p.128).
In order to execute an overall low-cost leadership strategy, the emphasis should be on finding innovative ways for cost reduction or substitutions in every aspect of supply and distribution chain (Orcullo, 227). The principle focus area of RFID is to provide possibilities to improve the supply chain management, and this can be advantageous for retailers. RFID is an electronic substitute of barcodes. In combination with mobile computing and online technologies, RFID can help an organization to efficiently manage and upkeep its stocks. This technology can eliminate manual labour for identification of products and their storage, thus labour cost can be reduced to increase the profit margin. One example can be Wal-Mart stores that have implemented RFID technology for cost reduction and increased customer satisfaction (Al-Odeh, 343).
Al-Odeh, Mahmoud. ...Download file to see next pagesRead More
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