Maximizing Efficiency: Leveraging IoT in SAP’s ERP Landscape

How IoT is changing the world of ERP systems and how does SAP place itself in it? All this is in this detailed article.


The way business operates is changing due to the ever-evolving technology standards that directly affect the operations of an organization of any size. One such technology is the Internet of Things or IoT, a name given to a network of connected objects (devices) that communicates with the cloud and other devices in the same network.

These connected devices, which can include consumer goods and both digital and mechanical machinery, are often incorporated with technology such as sensors and a special breed of software. In layman’s words, this tech acts as our eyes and ears where we can’t be physically present. By doing this, it gathers the data and also comprehends it after it has been properly gathered and examined, then automates any further actions or choices we make.

Just like AI, the Internet of Things has been booming in our industry and is already connected to countless applications to which we are already accustomed. Today, the world is connected with billions of such devices that transfer more than 70 ZB (it is equivalent to 730 GB of data) of global data across 30 billion plus devices!

Working of Internet of Things:

To understand the basic concept of this tech, consider the four stages that make up the entire process of how IoT works in real life:

  1. DataCollection:
    The system uses special sensors placed at desired positions where they can gather required data. The type of data can vary depending on the industry, for example, one might beinterested in environmental data, like simple temperature, or more complicated information like real-time video transmission.

    2. Data Transmission

The system uses an available network connection attached to the sensor devices which can send their data to other devices (device-to-device) or a public or private cloud system (device-to-system-device). It can also store this data on the machine by the edge computing platform’s instructions.

3. Data Processing
After the collection phase is over, the software will carry out certain tasks as specified by the supplied code, including turning on the fan or issuing a warning.

4. Data Centric Responses
Once all of the devices in the Internet of Things network’s data have been analyzed, it will offer valuable insights and information to help with making more sensible decisions as perceived by the organization.

This technology has already proven to be an extremely vital technology for the current industry. The most common example is smart homes which have many smart switches, lamps, temperature sensors, and more.

These devices use a special network called Z-Wave and work exactly according to the above-stated four steps to make better control of the house utilities and devices. In-store experience with retail Internet of Things, Internet cars, Telemedicine, traffic management, and smart cities are the most significant applications of this technology.

SAP ERP and IoT:

Without the Internet of Things being implemented, operations of a business significantly slow down while workers wait to collect data from their equipment and load it into the ERP software. With these connected devices in place, data can be automatically transmitted to those that have been connected with your ERP system, eliminating the need for human input and saving money on operations. SAP being a pioneer in the ERP industry has already implemented this technology with its latest ERP systems.

SAP integrated with the Internet of Things enrooted in all products seamlessly merges business semantics like master and transactional data with real-world usage data from sensors. The result is an enhanced control with actual IIoT context to help make smarter, more proactive decisions in one’s businesses no matter what is the scale.

Another significant use of this technology is in SAP Digital Supply Chain solutions where SAP Predictive Asset Insights powered with the Internet of Things give users integrated capabilities for advanced analytics and machine learning, enabling things like anomaly identification, failure prediction, and predictive maintenance.

Wrapping Up:

The Internet of Things is on the rise and is already making a difference when it comes to faster monitoring and better decisions in organizations. In ERP systems from SAP, IoT is being used by businesses across many industries to boost productivity, provide better customer service, make better decisions, and add value to their enterprise. It allows business data to be transferred across a network without requiring communication between people or between people and computers.

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