Internet of Things (IoT) has revolutionized ERP, and has opened up new opportunities for operational excellence and workflow automation. ERP Systems can now gather real-time, accurate data from any external devices and machines that are connected to the internet using IoT solutions. IoT (Internet of Things), propagates the idea of devices (Devices), communicating with each other (Devices). This is done through a network of sensors and requires very little human interaction. This is a great way to connect with the interconnected world.

Many industries are already leveraging the IoT’s powerful capabilities in conjunction with ERP.

For example, the manufacturing industry has begun to harness the power of data. Manufacturers can now use Industrial Internet of Things or IIoT to better assess the health of their assets and machines to prevent downtime and to plan for future failures. This improves their productivity and boosts their revenue.

IoT allows healthcare providers to better coordinate their digital assets and physical operations, greatly improving data flow and the patient experience. IoT-driven ERP software is also being used by other industries, including finance, construction, and retail.

How does IoT work?

IoT ecosystems consist of web-enabled smart devices that collect data from the environment and process, send and act on that data. Embedded systems, such as processors, sensors and communication hardware, are used to collect, transmit, and act on data from the environment. Sensor data collected by IoT devices is shared with an IoT gateway or another edge device so it can either be sent to the cloud for analysis or analyzed locally. In some cases, these devices communicate with each other and act on the information they receive. In most cases, the devices don’t require human intervention, though they can be set up and instructed by people.
 

Why is Internet of Things (IoT) so important?

IoT has emerged as one of the most significant technologies of this century. With the proliferation of embedded devices, everyday objects may now be connected to the internet. For example, kitchen appliances, cars, thermostats, and baby monitors can now communicate with one another seamlessly. Mobile technologies, cloud computing, big data, analytics, and low-cost computing have enabled physical objects to share and collect data without much human involvement. By using IoT, companies can automate processes and cut labor costs. Additionally, it reduces waste and improves service delivery, making it easier to manufacture and deliver goods, and it also improves transparency into customer transactions.
 

What is industrial IoT?

Industrial IoT (IIoT) is a term used to describe the application of IoT technology to industrial settings, particularly in relation to instrumentation and control of sensors and devices utilizing cloud-based technologies. In the context of pure machine-to-machine and Industry 4.0, the advantage of existing frameworks and systems referred to as IIoT is that they can operate semi-independently with very little human involvement.

Through feedback loops constructed within the framework, systems will be able to intelligently respond and even change its course of action as they receive feedback. IIoT is often referred to as the fourth wave of the industrial revolution, or Industry 4.0. Some of the most common applications of IIoT are:

• Smart manufacturing
• Predictive maintenance
• Connected logistics
• Smart supply chains
• Plant safety improvement

There are many factors working together in IIoT solutions, including:

• Industrial ‘things’ – Internet enabled devices like human machine Interfaces (HMI), PLCs, etc.
• Connectivity —The ability to connect ‘things’ or processes, a software system, or a network with each other.
• Data – Collecting, storing, and processing data is at the very core of the IIoT.
• Cloud platform – A significant key to IIoT is the secure and centralised cloud platform to host the data and enable remote services.
• Analytics dashboard – For analysis of data and monitoring machines.
• Intelligence and action – Data is analysed by both smart device functions as well as humans to send alarms/notifications to any other system.

The benefits of integrating Internet of Things and ERP System:

Higher Data Quality

Businesses can increase data quality and quantity by integrating ERP systems with IoT. This automatically leads to increased growth. The sensors’ connectivity and secure encryption of data allow for the transmission of information to the ERP without affecting its quality.

The ERP software will receive encrypted data directly from the IoT sensors. Any information that is changed in this way will be automatically updated in the ERP software. If your IoT system can be linked to your ERP software, it will instantly notify your team of any damage or other information that could affect your production.

Analytics in Real-Time

Businesses can use the error-free data streaming through IoT devices and sensors to gain real-time analysis, business trends and actionable trends on their ERP system. This improves business understanding and helps with marketing strategies. Integrating IoT and ERP software allows you to use AI & ML for the best suggestions for your business operations.

Greater Operational Efficiency

Software and technology are designed to enhance the efficiency of your business and increase operational efficiency through intelligence and automation. IoT-integrated ERP systems make it easier to manage manufacturing records, inventory updates and missed deliveries, reordering, and automated data entry become way easier and faster with embedded devices in machines and parts.

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