How is IoT helping in shaping the future of ERP
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Blog posted by : Admin / 22 Oct, 2019
What is the Internet of Things (IoT)?
The Internet of Things (IoT) is simply put, a network of interconnected devices that relay data constantly without human intervention.
IoT has evolved over the years and keeps evolving due to rapid advancements in technology. With the introduction of real-time analytics, highly advanced sensors, machine learning, and embedded systems have empowered IoT to achieve incredible results.
The purpose of IoT is to essentially merge the physical and the digital world to promote ease of life and leverage the power of technology to the maximum for a better world.
IoT works on a combination of 5 things: devices, data, connectivity, data processing, and User Interface (UI). In order for the organism of IoT to function, all five aspects are essential.
Devices: The devices are the source of the data. This could be a device such as a camera, or a sensor such as a proximity sensor attached to another device such as a car. This device serves as a source of data.
Data: Data could be called the lifeblood of the organism that is IoT because, without data, the organism would cease to function. Data drives IoT and all of its functions. Without data, there would be no purpose for this system of interconnected devices.
Connectivity: Once the data is acquired from the devices, it has to become part of a bigger data set. Data from different sources has to be brought together and used to add value.
Data Processing: Once the data from different sources is brought together, it needs to be processed to create valuable insights.
User Interface (UI): All the information and insights derived from the data then needs to be put into action. The UI makes this possible by presenting the data, information, and insights in an actionable manner.
Due to the drastic advancement of technology, any device can be turned into part of IoT with easily available sensors. Some estimates quote that over 100 billion units by 2020 will likely be connected to the Internet.
IoT undoubtedly has incredible potential to benefit the business world. The business world has not been late to the party and has already started leveraging this technology to the fullest.
Since ERP is located at the heart of an organisation where all data needs to be centralised, it has a tremendous deal to gain from IoT.
Advantages of Integrating IoT in ERP
IoT has blown up in the business world with numerous formal demonstrations of elegant applications. These numerous programs have established the viability of the technology in the field of ERP software.
ERP serves as the cornerstone in any organisation as it serves as the central system with complete visibility of data and hence holds the perfect position to implement business intelligence. While ERP applications in areas such as inventory management, sales functions, human resource tracking and monitoring, workforce utilization can optimize these functions; areas such as customer support, business intelligence, and lead management can aggressively boost productivity.
Stakeholder communication has been enhanced immensely with the incorporation of IoT in ERP. Apart from the obvious surge in efficiency, a very calculable change brought about by this enhancement in communication is the cutback of errors and mix-ups.
IoT has made it possible for business organizations to be able to track and investigate the flow of information and track computer tasks in real-time. Analytics powered by IoT has facilitated prompt accessibility of specific enterprise knowledge enabling the management to make well informed, swift decision and choices.
The usage of IoT gadgets, detectors, and Kanbans has minimized human interaction in communication with ERP. The utilization of machine learning algorithms has enabled the generation of suggestions for the decision-makers regarding sales, client, supply chain, customer management, and more.
It is glaringly evident that IoT is an invaluable and imperative asset to ERP in today’s business world. IoT has not only brought about a revolution in the world of ERP but has established itself to be indispensable to ERP.
