ERP adoption has become a common trend now, and so it’s time for forward-thinking organizations to consider amalgamating IoT and ERP for opening up new doors of possibilities for operational excellence, workflow automation, and customer service.
Combining IoT and ERP for better opportunities
Having known the history of ERP solution, it’s now time to understand the link between IoT and ERP, and also IoT’s impact on the ERP systems. We already know that IoT opens up new opportunities for organizations to collect data. With sensors and cameras embedded in products, companies get detailed information on product status, right from the production, transportation, all the way until it reaches the customer’s hands. Now that’s where the link is – data. Data connects both IoT and ERP. To know how, let’s dive deeper.
Quantity and quality data
While every organization is striving to ensure successful digital transformation, the real winning recipe depends on the quality and quantity of the data collected by them. The more relevant the data they gather, more are chances of them gaining actionable insights for business expansion strategies. By integrating IoT and ERP, companies can improve data availability, which can lead to operational excellence. The data accumulated due to IoT sensors will be directly fed to the ERP software. Any changes in the process are reported in real-time. For example, sensors integrated into machines in a construction site will send real-time information on the working condition of the equipment. If the IoT data is linked to the ERP system, the occurrence of any problems pertaining to equipment health will be directly reflected in the application. This vital information will reach all the concerned workers on the spot via the ERP platform, which will help them take immediate action as required. We have mentioned just one of many examples here. The possibilities of integrating IoT and ERP will change for different departments, depending on the work they perform.
Generally, from the time a product is manufactured until the time it reaches the customers, many people are involved. The manufacturers are expected to keep record of every product that is being sold to customers. On occasions when manufacturers directly contact customers, keeping track of product sale becomes easy. But when dealers and vendors come into the picture, a lot of confusion might occur for getting clarity on the sale and end-user satisfaction details. With IoT coming into the picture, all information will be automatically updated in the ERP system in real-time, helping every stakeholder to stay on the same page. The ERP system will automatically operationalize the continuous influx of IoT data, thereby strengthening the communication between everyone.
ERP, when armed with IoT data, will help organizations to gain vital business-related insights instantaneously. The continuous stream of data enables enterprises to carry out real-time analysis, which will help them gain actionable insights to make tactical and quick decisions that will increase the revenue generation significantly. Besides, with IoT, organizations can consider integrating ERP systems with AI and ML so that employees get smart suggestions to make optimal decisions.
ERP solutions promise to cut down an organization’s pressure to maintain the complex business operations, allow team collaboration, and deliver real-time actionable insights for making the best possible decisions. With every core business function assimilated in one platform, companies can eliminate paperwork and records management, become more efficient and productive at work, and also automate time-consuming tasks. The standard ERP system, already capable of doing so much, is now empowered with new-age technologies like IoT and AI to function smartly and intelligently. While ERP helps companies to add efficiency and accuracy across every department, sophisticated technologies like IoT and AI when combined with ERP allow enterprises to strategize for business growth and success, benchmark against competitors, and also achieve their set goals.