Tracing the IoT’s role in ERP
The IoT bandwagon has not only taken the IT industry by storm but played a decisive factor in the productivity of organisations across verticals. Almost every discussion will boil down to focusing on technology and maximising output by embracing IoT. Digitalization is real, and a growing number of Indian companies are already reaping handsome rewards from it. Machine to Machine (M2M) technologies across a vastly expanded internet are the next step in information and data management. To avoid missing the “digital bus,” numerous companies have rushed to adopt digital technologies such as ERP without appropriately aligning it to their broader business goals.
But not many have a clear understanding of what IoT actually is! The Internet of Things (IoT) refers to connected devices and systems that typically gather data via embedded sensors or actuators in machines or other physical objects. The interconnection of these embedded devices is expected to usher in automation in nearly all fields. It is a perfect augmentation of the physical world with its virtual counterpart, making it a perfect connected world.
IoT and ERP share the common objective of serving customers better. The notion of ‘enhancing services’ binds these two dynamic tech offerings to merge into an all-encompassing platform that can be used across verticals.
The future of ERP systems
While data runs were consigned to silos and ran at intervals during the day in the past, new systems will live and die by their ability to process, analyse and show important data in real time. For example, shelves which can detect the amount of inventory and send that data back to the ERP system strengthen the functionality of inventory management. Another example is that IoT enables products to send back the customer’s satisfaction level to the ERP. By creating an interface between Internet-connected devices will provide ERP platforms greater flexibility in developing viable uses of the data gathered by IoT.
The Internet of Things will play a vital role for ERP and it will help in developing it into a far superior offering in terms of multiple user access via laptops, tablets, mobile devices, and even watches, IoT strengthens ERP because of its ability to assist with data gathering.
Enhancing operational efficiency through ERP
As new technologies continue to multiply throughout the enterprise, IT leaders must cope with constant changes as they feel the pressure to deliver new services, improve performance speed and manage complex environments. In this dynamic environment, companies need to protect their investments by deploying flexible IT architectures that allow employees to access information faster for insightful decisions. Companies can achieve more by improving system performance, increasing throughput capacity and turning data into insights faster. The big advantage of having ERP is the fact that people in different departments can all see the same information, and update relevant information. Apart from the low cost of ownership and savings achieved by standardizing one application to manage multiple business functions, usage of ERP promises much more. Among countless other advantages, implementing ERP software can improve productivity, increase efficiencies, decrease costs and streamline processes.
IoT – dynamic game-changer in the IT scheme of things
IoT is a technology in which uniquely addressable, physical objects are connected to the internet to identify themselves to other devices based on certain network protocols. Identifiable, autonomous, adaptive, responsive, and self-configurable entities continuously interact and cooperate with each other to ensure ubiquitous communication with peers and servers on the internet. In this automated communication model, devices become contextaware, organize themselves, transfer information, and respond to changing, dynamic circumstances
Key developments in the light of existing industry context
The Internet of Things (IoT) has the potential to transform both the business and the IT infrastructure of the insurance industry. The data captured and transmitted by multiple sensors and devices – each attached to an associated, insured risk – will redefine existing processes of underwriting and pricing. Traditional removable SIM cards are being replaced by dynamic embedded ones. The Role of the IoT in smart Grid deployment.
Provide details about the benefits and challenges of this development The benefits and challenges of these developments are:
Every new technology faces a million challenges in its initial phases. Internet of Things also poses some grave issues that need to be tackled well in order to utilize its fullest potential. Some possible advantages of IOT can be:
- Inventory management: Managing fleet, inventory management and tracking is a major task. IOT is used to tag radio frequency sensors to track the location of products in real time. It has been instrumental in tracking the level of inventory and to stock it in advance, making alerts for unforeseen stoppages, automatically placing orders, etc.
- Promotions: Many businesses use IOT to send mobile promotions to frequent shoppers. This is done by keeping track of the shopper’s history and shopping interests. It utilizes location-based tracking of the physical shoppers as well as those shopping over the internet.
- Transportation: IOT eases and simplifies the entire process by introducing a monitory sensor that helps to track distance and time locations and other contributing factors.
- Assessing web user intelligence: IOT is used by third party web data aggregators to have a better understanding of their customer by tracking them on social media networks. This is essential to identify the key customers and their preferences.
- Vending technology: IOT has played a big role in enhancing the working of vending machines by enabling them to communicate to monitor inventory levels, determine pricing, etc.
- No universal coding language or Protocol: The IoT industry’s biggest challenge may be compatibility. Not all products can talk to each other, because there is no universal coding language or protocol.
- Sensing a complex environment: Innovative ways to sense and deliver information from the physical world to the cloud connectivity; Variety of wired and wireless connectivity standards are required to enable different application needs
- Power is critical: Many IoT applications need to run for years over batteries and reduce the overall energy consumption
- IoT is complex: IoT application development needs to be easy for all developers, not just to experts.
- Cloud is important: IoT applications require end-to-end solutions including cloud services.
It is vital for organisations to determine the need for digitization because not all organizations are suited for the same. ERP powered IoT should start small and then grow and at each stage the IT leadership should be able to demonstrate the alignment to the organization’s objectives. Enterprises need to embrace the cultural change and as more and more businesses leverage such business platforms.