The next generation of intelligent vending machines offers tremendous opportunities for business transformation through the Internet of Things (IoT) and cloud-based tech-nologies. Vending machine owners and operators can look forward to more effective ways to engage customers, increase sales, and save money through remote manage-ment and predictive maintenance. Advanced data analytics will help them better match machines and stock to each location, as well as obtain valuable insights on the effective-

ness of promotions, pricing, location, weather, season, and other factors.

While this is great news for purchasers of the latest vending machine designs, many operators have large vending machine fleets with years of life left in them. These operators need ways to update these machines now to profit from IoT advantages (Figure 1).

This article examines the challenges of retrofitting IoT technology into legacy vending machines. We consider a distributed intelligent vending retrofit solution engineered by Bsquare in collaboration with AAEON. We look at how this solution uses Bsquare DataV* – a complete IoT

software stack – to address device enablement, business logic pro-cessing, and data analytics. We discuss how this solution enables operators to extract data from field equipment and integrate the data into business processes and workflows to achieve new operational efficiencies and business insights. We then explore the solution’s innovative, cost-effective hardware platform that combines an UP board based on the Intel® Atom™ x5-Z8350 processor with a vending machine expansion board based on the Intel® Reference Design for Intelligent Vending.

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The Winds of Change in VendingBusinesses of all types are recognizing the importance of devel-oping and implementing an IoT strategy. For some, this imple-mentation takes root in product development as they create new IoT-connected offerings. Others are faced with finding a way to extend the benefits of the IoT to legacy assets developed in an unconnected world.

Good examples of the latter group are vending machine operators. Vending machines continue to be a growing segment in retail as people in today’s busy world seek fast, tasty snacks, meals, and bever-ages. Vending machines are also increasingly used to peddle non-food items. Businesses seeking new ways to expand sales with minimum distribution and labor costs are turning to vending machines to sell everything from disposable diapers and medicines to headphones and other electronics.

To drive down operating costs and improve sales and profits, vending machine operators are seeking a better understanding of their oper-ations. To gather, analyze, and interpret the necessary data for such business insight, they are looking into IoT solutions.

Where the IoT Can HelpWith traditional vending machines, information is collected when machines are restocked and serviced. This creates a serious delay in inventory monitoring. It also impacts sales reporting compliance in jurisdictions requiring vending machine operators to report taxes on sales on a timely basis. Infrequent visits also make it hard to know when a machine is malfunctioning and losing sales.

Traditional vending machines require service visits to update prices or begin a promotion, such as two-for-one deals. Since many vending machine owners rely on third parties to stock machines, there is no safeguard to prevent the vending of unauthorized products.

Obviously a solution is needed that can monitor machines in real-time for accurate data on inventory, sales, and machine health. The solution must then deliver that information to operators. That solution is the IoT.

IoT Challenges for VendingVending machines frequently operate in areas where bandwidth is inconsistent or expensive, such as public transit platforms, stadiums, freeway rest stops, or corridors in shopping malls. These types of loca-tions pose problems for IoT solutions solely dependent on the cloud for data processing.

Adding intelligence to a machine also increases complexity. While the cost of sensors continues to drop, it is not trivial to outfit an entire cabinet with sensors on every shelf, slot, or spiral. In addition, software versions and configurations require periodic updates. These consider-ations raise the stakes for retailers seeking to retrofit existing vending machines for today’s connected world.

A Vending Machine MakeoverWorking with AAEON, Bsquare developed an innovative retrofit kit for a global vending machine owner. Bsquare also served as the system integrator for the solution targeted for an initial deployment that could potentially number in the tens of thousands across Europe.

The retrofit kit uses Bsquare DataV*, an end-to-end IoT solution that handles distributed processing and analysis of data both on the machine and in the cloud. In addition, DataV enables remote device management.

DataV collects raw device data at the network edge, applies rules and logic to make the data meaningful and actionable, and then delivers it to the cloud, applications, and everywhere else it needs to go. Taking a modular software approach, DataV includes five product components to bridge the gap between data-generating sensors and the business. Each component is named for the task it does: connect, monitor,

automate, predict, or optimize (Figure 2, page 46).

Analytics at WorkTo eliminate the time and expense of equipping each machine with multiple shelf, slot, or spiral sensors, Bsquare came up with a unique alter-native – using a camera and software to count and iden-tify vended products. DataV’s data analytics determines the unique characteristics of each item and stores it as a pattern. As products are vended, a pic-ture is taken and compared against a library of product patterns. This product recog-nition enables accurate inven-tory reporting and identifies unauthorized and incorrectly stocked products.

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VENDINGMACHINE I/O

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CLOUD-BASEDVENDING SERVICES ANDBUSINESS MANAGEMENT

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Vending machine operators are looking for ways to connect legacy machines to the IoT to profit from its many advantages.

Figure 1.

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Given the bandwidth constraints of vending machines, DataV per-forms image recognition directly on the machine itself, sending only information about the image to the cloud. By minimizing data uploads, the retrofit kit avoids the transmission and storage costs of large image files (Figure 3). As new products are introduced and pat-terns developed, DataV handles the provisioning and management of these as well.

Advantages for Vending Machine Operators and OwnersProviding real-time data, the Bsquare solution enables vending machine operators to understand current and historical product sales, as well as determine the effec-tiveness of their planogram. DataV’s analytics can predict how changes in the layout of machine inventory will affect overall sales activity and pro-vide prescriptive insights on how to maximize performance. The solution can also factor in data from existing enter-prise systems and external sources tracking weather, day of week, time of day, and other parameters. Interpreted data is available to operators

on practically any connected device, such as a smartphone, tablet computer, or desktop PC.

Through DataV’s capabilities, the retrofit kit can also enable vending machines to report on inventory levels and maintenance issues to help optimize stocking trips and maintenance schedules. These capabilities can reduce unnecessary service dispatches and ensure product availability for customer satisfaction. DataV is also able to remotely manage firmware and configuration updates, as

Data analytics andpredictive reasoning

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By performing photo analysis locally, Bsquare DataV eliminates the cost of transmission and storage of large image files in the cloud.Figure 3.

Data analytics and predictive reasoningHolistic, multi-domain data analytics, predictivereasoning, device, process and rule set optimization

Real-time data, event and rule set processingMonitor data streams, create events, apply real-timerule sets and orchestrate required actions

Device IoT enablement

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DEvice level IoT functionality (network connectivity,data filtering, local monitoring and rule processing)

Taking a modular approach to software, DataV delivers five key functions for bridging edge sensors and the business.

Figure 2.

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well as use algorithms to predict the imminent failure of mechan-ical components.

The retrofit kit also enables remote imple-mentation of promotions and price changes without a truck roll. Through a web inter-face, operators can change prices and apply or remove promotions on a machine-by-machine basis, or all at once on groups of machines.

A Board with an Eye for InventoryTo operate the camera and enable the ana-lytics and IoT gateway functions, the retrofit kit uses an UP board. This credit-card-sized board originates from a collaboration between AAEON and Intel. It is now supported by the UP maker community. The AAEON UP board design used in the retrofit kit runs Linux* and includes additional I/O capabilities.

UP bridges the gap between the world of prototypes and the world of high-grade mass-produced embedded system solu-tions. The UP board features up to 2 GB RAM, up to 32 GB eMMC, four USB 2.0, USB

3.0 On-the-Go (OTG), Ethernet, HDMI, and a Display Serial Interface (DSI) – see Figure 4. A camera interface supports the kit’s camera through the MIPI-CSI specification.

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This diagram of AAEON’s UP board shows its rich I/O options and diminutive size.Figure 4.

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The board uses an Intel Atom x5-Z8350 processor. Launched at the start of 2016, this 1.44 GHz 64-bit system-on-chip (SoC) with a 1.92 GHz burst frequency features Intel’s latest 14 nm process tech-nology. The processor’s support for 64-bit applications helps deliver higher performance and greater functionality across a wide range of IoT use cases.

A power envelope of just 2 W makes it ideal for constrained environments like vending machines. Four CPU cores and 2 MB of last-level cache (LLC) enable fast computing and efficient multi-tasking. Intel® Burst Technology dynamically optimizes compute and graphics performance to handle peak loads and deliver lower overall power consumption.

A standard PC operating temperature range of 0 °C to 60 °C makes the UP board a reliable and flexible solu-tion for all but the most extreme vending machine locations. The board also includes a real-time clock (RTC) and support for Preboot eXecu-tion Environment (PXe) and Wake-on-LAN for remote management.

Communications Within and WithoutToday’s vending machines employ a wide range of bus protocols (CAN, ccTalk, Protocol A, MDB, and USB, to name a few) to communicate with the vending machine controller (VMC). To replace the legacy design’s VMC with the UP board and enable communications with machine peripherals, the retrofit kit uses a vending machine I/O (VMI) board manufactured by AAEON based on the Intel Reference Design for Intelligent Vending (Figure 5).

The VMI board is a low-cost design that handles protocol conversion and provides a high-level of I/O flexibility. It connects analog and digital signals from product drops, coin and bill collection, and thermometers not otherwise monitored or controlled by the VMC.

Potential to Do MoreThe combined solution (UP board and VMI) creates the potential for new user interface (UI) options ranging from keypads and two-line displays to touchscreens. With a little additional engineering and software, the retrofit kit could modernize legacy machines with dis-plays enabling advertising revenue through digital advertising. The display could connect to the IoT and cloud through the UP board’s HDMI and DSI interfaces. DataV could then capture and analyze data on the customer interactions and provide important proof-of-play data for advertisers.

A True IoT Makeover for Legacy Vending MachinesThe vending machine retrofit kit designed by Bsquare and AAEON provides an excellent way to help vending machine owners and

operators take advantage of IoT advances on existing machines. The kit offers a ready solution for employing distributed analytics for real-time monitoring of compliance, sales, inventory management, and predictive part failure in environments where IoT connections are inconsistent or expensive.

For more information on Bsquare DataV, see intel.com/SD-bsquare-datav.

For more on the UP Board, see intel.com/ SD-bsquare-up-cht01.

To learn more about bringing intelligence and manage-ability to retail, see intel.com/embedded-retail

Contact Bsquare Bsquare (intel.com/MR-bsquare) is an Affiliate member of the Intel® Internet of

Things Solutions Alliance. For more than two decades, Bsquare has helped customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes. Bsquare DataV software solutions enable a wide variety of enterprises to deploy business-focused IoT systems that more effectively monitor device data, automate processes, predict events, and produce better business outcomes. Coupling its purpose-built DataV software with comprehensive analytics and engineering services, Bsquare can help organizations of all types make the IoT a business reality.

AAEON (intel.com/MR-aaeon) is an Associate member of the Alliance.

The retro kit uses an AAEON vending machine I/O board (VMI) based on the Intel® Reference Design for Intelligent Vending.

Figure 5.

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