The invention of IoT was like sawing a seed. What started in 1999, became popular in the summer of 2010. What about now? Well, according to Gartner, by the end of 2020, there will be more than 26 billion IoT devices connected to the internet. Whereas, ERP (Enterprise Resource Planning) tools and systems came into existence in the early 1990s. Since then, ERP is an integral part of any large organization. ERP consists of almost everything essential in an industry, such as finance, operation, manufacturing, supply chain, human resources management, and a lot more.
We can understand the benefits of IoT in ERP better if we understand the nature of ERP first. Hence, it revolves around collecting information, analytics, data, and present them in a well-constructed manner and offer intelligent business insights. Now take a broader look at it. We will see that for lucrative results ERP relies on data and information gathered from various sources. It can be done either with manual effort or automatically.
Alright, now consider what IoT has to offer into our world. Better connectivity, immaculate sensor-driven architecture, hence real-time and accurate data collection, remote control, better work collaboration, operation automation, and many more.
If you have been paying attention enough, you will be able to figure out that both of these connect just like two Lego bricks. It won’t take you long to decode that the consolidation of IoT and ERP has multitudinous benefits. Now that your mind has started rolling, let me channelize your imagination in the right direction.
Benefits of Integrating IoT with ERP:
Whether it is a large or small industry, communication plays a vital role in its growth. When IoT is integrated with ERP the very first thing that changes, is process automation. Backed with smart and connected devices and sensors, every operation can be executed automatically. The relevant information is shared between devices and data managed without any flaw. All this made possible by improved communication that is introduced in the system by IoT.
Well, communication between systems is not the only thing that is improved by IoT. Manufacturing, supply chain management, inventory management, warehouse management, production line management, and many more can be controlled and managed remotely with higher precision. Therefore, the entire ERP works as an integrated platform and it’s over productivity is also improved.
But that’s not it, customer data management and order updates, order confirmation, automatic consignment updates, and a lot more benefits are the results of IoT integration. Hence overall system communication and customer communication are also improved by IoT. Therefore, it must be considered as a necessary addition to the infrastructure.
Improved Data Management
One of the most important purposes of ERP is to manage various data retrieved from various resources. Every bit-sized information collectively contributes to the greater data that is used to evaluate business operation efficiency and productivity. ERP also takes care of management or this data.
IoT integration expedites the whole process and provides even vivid information for a clearer business spectacle. IoT incorporates dedicated sensors and devices that monitor collect reliable data that also in real-time. And it is no brainer that reliable and accurate data leads to effective business decision making. Considering divisions involved in an enterprise regardless of its niche, IoT development provides a sustainable infrastructure that manages itself. Lesser manual tasks mean a thinner margin for errors. In addition, IoT devices can be custom made and implemented in any given system architecture. Therefore, there are countless possibilities for customizations.
Real-Time Data Analytics and Monitoring
Real-time data analytics and monitoring are some of the core tasks of any ERP system. The whole enterprise depends on it. Current operations, future business planning, decision making, and many more data depend on it. Therefore, the core demand for this segment is data accuracy and real-time availability. Here, IoT devices and their network play a vital role in providing data that an organization can trust.
As far as monitoring is concerned, sophisticated sensors, high-end cameras, scanners, and other monitoring devices can stay connected to perform and manage various operations in any line of manufacturing, development, and distribution. These high-tech sensors are super-fast, accurate, and reliable.
Since all these devices are connected, they provide their collective data in a systematically organized visual representation for a comprehensive approach. Therefore, from monitoring to data representation and accurate analytics, IoT offers a real-time visual of on-going operation in an all-inclusive manner. On account of productivity and reliability, it can be said that IoT is a well-deserving augmentation to any ERP system.
Reliable Business Intelligence
So far, all the services were related to either on-going operations in an organization or all the operation took place in the past. All these hold their special place in the smooth sailing of an enterprise. However, it is a business intelligence (BI) that paves the path to the future of that establishment. Therefore, all important data accumulated by ERP is analyzed to offer business insights that can help the organization to make growth-oriented decisions while minimizing potential operational losses. Here, IoT not only helps but this technology becomes essential.
Anyone who knows about IoT knows that it is an extremely flexible and experimental technology. And it is a wired or wireless network of smart devices backed by powerful software infrastructure. Hence, any IoT device or network can be provided with the prowess of modern software capabilities.
Such as cloud computing, machine learning, artificial intelligence (AI), and other technologies that make IoT a forever evolving network. As a result, this network of powerful software and smart devices is capable enough to fetch, manage, represent, and evaluate data on its own. And the futuristic AI technology can offer business insights and valuable projections that can help a lot in future endeavours. So, when possibilities are unlimited with IoT then it can offer unlimited opportunities for growth.
Increased Operational Efficiency
For any enterprise or small business, managing the operational losses is the hardest nut to crack. And operational loss is the sinkhole devours a huge chunk of revenue. Therefore, these organizations spend a large amount of their financial and intellectual resources in minimizing these losses. ERP does a good job of providing somewhat transparent data and analytics of operations. However, still there lies various issues and problems under many layers where these analytics cannot penetrate.
Here, IoT devices come to the rescue and offer the next level of data analytics and insights that uncover the problems and errors in on-going operations. Starting from automation, then monitoring, transparent and multi-layered data analytics, then AI-backed system, everything in different ways penetrates the business operations in depth. As a result, businesses find better ways to overcome these operational losses. And for those losses that are still not identified, remember, IoT can be customized and modified. And it evolves as well.
Aright, these are some of the many benefits of integrating IoT with ERP.