Modern ERP systems seamlessly tie all the business applications together into a consolidated platform, improving data visibility, control, and decision making. However, ERP business processes have remained mostly unchanged from the way they were designed decades ago. Today, massive data influxes along with the Internet of Things (IoT) are stirring up the ERP landscape, introducing new possibilities for workflow automation and operational excellence. It allows for data sharing in real-time from all kinds of external machines and devices back into the internal ERP systems. Organizations no longer need to struggle to connect their internal business applications and processes to the external data. Data collection from these IoT devices happens in real time and is highly accurate, increasing the chances of gaining actionable insights.
Ultimately, businesses which are able to automatically collect and analyse key data from across their environments – or from across their products once sold – can harness that data in some truly powerful ways.
Integrating ERP with IoT can extraordinarily boost information accessibility and precision. With the proper integration of these two, businesses need not worry about connecting their applications and internal business processes with external business data. With the ability to analyze data in real-time, organizations can also make effective and more informed business decisions. With ERP and IoT integration, organizations can also screen their machine activities remotely and conduct the real-time investigation of streaming data. For instance, IoT can provide real-time information by tracking and monitoring high-value assets, materials or equipment in the supply chain. Integrating ERP with IoT automatically feeds this information into the ERP system so that all parties involved in the supply chain can stay informed and take action accordingly. IoT solutions can also warn relevant employees by sending notifications when assets need attention (repairs/breakdowns) or when they are vulnerable to theft or damage.
One of the transformation possibility examples is the Industrial Internet of Things (IIoT). It refers to the deployment of connected sensors through the hardware on factory floors and other industrial settings. This data is then used to inform more proactive, predictive approaches to equipment maintenance and more efficient production lines. Integrate this with ERP systems, and it becomes possible to perform far more accurate financial forecasting and procurement planning, because the ERP system has more sophisticated and accurate information pertaining to production levels and equipment condition.
Another transformational possibility of the IoT and ERP software working together lies in company’s products after they have been sold. If these are equipped with connected sensors which track how the product is being used or how it is performing, and if that data is then integrated with the ERP system, there are huge possibilities for organisations to proactively enhance their products, to set up different charging models for their customers such as pay-per-use, and to automatically offer upgrade and replacements to existing customers.
What, then, needs to happen in order for more sectors and more businesses to take up these exciting new possibilities? Modernizing your ERP to drive innovation and deliver business value is a journey that should be custom-tailored to your unique business needs. Ultimately, the ERP system in such a setup needs to be able to collect, manage, analyse and display the data generated by the IoT.
-enterprisetalk & ternplc