The usage of Internet of Things (IoT) is growing as number of connected devices grows. The connected devices include the machines, sensors and cameras that make up the Internet of Things (IoT). By 2025 there will be 41.6 billion connected IoT devices, or “things,” generating 79.4 zettabytes (ZB) of data in 2025 says IDC research.
The number of connected IoT devices grows, the amount of data generated by these devices will also grow. Many such data is generated by video surveillance cameras using computer across showrooms by analysing crowds of people. IDC projects that the amount of data created by these connected IoT devices will see a compound annual growth rate (CAGR) of 28.7% over the 2018-2025 forecast period.
In the manufacturing sector, incorporating IoT reduces inefficiencies giving a layer thereby increasing data availability and accuracy. This keeps processes in track enhancing ERP in areas including customer service, forecasting, inventory and asset management, and business intelligence. The data accumulated by IoT sensors is directly fed to the ERP software.
IoT has already made a substantial impact in the manufacturing sector by bridging systems which would otherwise have to be bridged by a complex system of APIs (Application Programming Interfaces), and at an affordable price point, making IoT the “great equalizer”.
For instance, the sensors attached to manufacturing floor equipment enable a greater level of maintenance automation and ensure that vital data is accessible to everyone who relies on it, from shop floor technicians to C-suite decision makers.
IoT’s impact on ERP systems
IoT opens new opportunities for organizations to collect data. With sensors and cameras embedded in products, companies get detailed information on product status, right from production, through transportation, and all the way until the product reaches the customer’s hands.
Throughout this end-to-end process, data is the link, connecting IoT and ERP. Organizations get vital business related insights and enterprise can do real time analysis. This is turn helps them with actionable insights to make quick, tactical decisions that can increase revenue generation significantly.
The more relevant data the organization gathers, the better they actionable insights for business development and expansion.
Integration of IoT and ERP, companies can improve data availability, substantially contributing to their efforts to achieve operational excellence. Changes in process can be reported real time.
For example in Auto manufacturing any change in design process, not going through in any of the cars in assembly line is reported and fixed instantly.
Then we see sensors integrated into machines in a construction site can send real-time information on the working condition of the equipment.
If IoT data is linked to the ERP system, the occurrence of any problems pertaining to equipment health will be directly reflected in the application. Concerned workers will receive alerts nearly instantly via the ERP platform, helping them take immediate action as required.
Thus we see that IoT has proven successful increasing the functions of business and its applications and give a clear understanding how companies do business.
How IoT in Tandem With ERP is Aiding Manufacturing Functions.
Incorporating IoT is improving business communications, at the same time automating daily processes offering manufacturers the ability to fulfill customer needs. Resources are getting managed by accessing real-time data. This real-time data also optimizes project and cost management as well as production planning.
Supply Chain is one such sector where IoT play an important role. Modern supply chain solutions also offer dashboards and business intelligence and helps in inventory management.
Asset performance is one such area where we can view how the assets are performing while placing a one or multiple sensors on a machine. Metrics can be gathered to track performance of machine either at the moment or over time. The views generated can indicate potential failure or perhaps the end of life of the machine. This is helpful in long term in regards to managing assets, controlling capital costs and simply keeping manufacturing process operating optimally.
Order processing form a crucial area where automating the process of reordering by using IoT sensors to track inventory and materials is another application. Giving advance information regarding when certain materials going low. When right process in place, orders are automatically placed. If AI is adopted in manufacturing and production systems, an output of AI will alert even before an IoT sensor alerts .
So we can say enterprises deploying IoT more expansively across their organizations. The data that is fed to their ERP systems are driving more accurate information and generate reports with equal precisions and accuracy. IoT becomes the first engine to deliver quantum improvements in manufacturing.
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