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The combination of IoT and ERP software will club automation with interconnected devices that will prove beneficial for companies and users alike.
Enterprise Resource Planning (ERP) software automates business processes and activities that increase productivity and boost profits. On the other hand, the Internet of Things (IoT) is a web of interconnected devices that facilitate sharing of critical business information conveniently. When both these technologies combine, magic happens. A business performs fabulously across business parameters like automation, workflow, operations, and customer services.
According to Global Market Insights, the intelligent apps market will grow at a CAGR of 40% from 2021 to 2027 and is expected to reach USD 150 billion by 2027. The demand for intelligent apps is rising because businesses worldwide have understood the importance of integrating their ERP software with IoT and data analytics.
IoT systems send uninterrupted, secure, and high-quality data to ERP software. Sensors connected to the device send data in real-time and encryption algorithms ensure that data remains unhackable. If there is a change in the information en route, it’s updated in the ERP software. For example, you are a bottle manufacturer. Suppose there is a malfunction in the belt of the bottle manufacturing machine. The IoT sensor will send real-time information to the ERP software so that your team can take immediate steps to rectify the problem.
ERP software has considerably increased the efficiency of operations through intelligence and automation. IoT-enabled ERP software takes this a step further by providing real-time information about:
a. Inventory updates
b. Manufacturing records
c. Automated data entry
d. Missed deliveries
e. Reordering of raw materials
f. Monitoring supply chain
IoT sensors provide flawless data streaming that allows businesses to get access to real-time data. It helps brainstorm effective strategies based on:
a. Changing market trends.
b. Customer needs, desires, and ambitions.
c. Competitors analysis.
d. Business trends.
e. Current marketing strategies.
f. Government policies.
IoT-enabled ERP software also utilizes AI & ML techniques to provide rich insights and estimations that help make better strategies.
ERP software has helped businesses considerably decrease their downtime, enhancing the system’s ability to return to working conditions quickly. IoT-enabled ERP software takes this a notch higher by providing access to accurate and secure data. It avoids inefficient maintenance routines that reduce maintenance costs and minimizes downtime. A report by McKinsey suggests IoT-based predictive maintenance helps reduce equipment downtime by 50%. In short, IoT optimizes a company’s working ecosystem, thereby reducing/eliminating downtime.
It’s essential to have excellent forecasting tools to determine which product has a brighter future and which should be shelved. IoT-enabled ERP software makes forecasts based on the following data points:
a. Demand forecasting: IoT-enabled ERP software finds out which time of the year registers maximum sales. It also pays attention to other factors like geography, demography, behavior, and psychography of customers to classify products in different categories like Star, Cash cow, Question Mark, and Dog.
b. Financial forecasting: IoT-enabled ERP software explores how much the company is spending and its earning potential. It checks budgets and expense reports in real-time to estimate product demands or capital requirements. Moreover, managers can monitor the spending habits of customers and make better predictions.
IoT-enabled ERP software is no less than a magical boon for companies who are serious about increasing their productivity, efficiency, interdepartmental collaboration, and significantly improve customer and vendor relations.
At Sage Software Solutions (P) Ltd., we are home to world-class ERP software and CRM software that will solidify your business tech support fundamentals and enable you to build a customer-centric organization. To know more about it, You can also write to us at firstname.lastname@example.org
Disclaimer: All the information, views, and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views, or objectives of Sage Software Solutions (P) Ltd.