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How IoT integration with ERP system can bring business benefits

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Imagine you’re running a small to medium-sized business (SMB), managing multiple assets, equipment, and resources. As the business grows, so do the complexities and challenges required to smoothly operate it. An integrated tool is required that will provide a better line of sight of business operations for ergonomic planning and resource allocation.

Without an integrated tool, companies tend to operate in a siloed approach, with each department operating its own disconnected system. So what is an ERP?

ERP, or enterprise resource planning, is a method used by companies to manage, integrate, and analyze the various aspects of their business. ERP software applications help businesses implement resource planning by integrating all the processes they need to run their businesses with a single system. ERP software can also help you coordinate purchasing, inventory, sales, marketing, financial, human resource, and more tasks.

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When it comes to ERP software, it has become quite a typical trend for all next-generation enterprises to advance with technology. Internet of things is another step forward to open up new doors of performance in operations, automation, workflow, and, most crucially, customer services.

IoT’s role in manufacturing is predicted to increase in the next few years. By the year 2024, it will reach up to $150 billion as per the Global Market Insights. However, only 22% of companies have integrated IoT with ERP software. The potential for making significant growth in revenues by the IoT integration with ERP is huge and unmissable.

Recognizing the untapped potential, HyperNym steps up and offers secure connectivity with leading ERP systems. This flexible approach ensures that businesses need not worry about abandoning their current ERP software. HyperNym lets you readily combine the existing ERP with our IoT solutions.

IoT has now become essential for every leading company and the collaboration between IoT and ERPs has borne some amazing benefits not only for the organization but also for the users.

Here are the major benefits of integrating the Internet of Things with ERP.

Data Quality Improvements

Integrating ERP systems with HyperNet IoT platform, businesses can improve data quality and quantity, which automatically leads to growth. This is due to the sensors’ connection and safe data encryption, which allows the information to be sent to the ERP system without degrading its quality.
The data encrypted by the IoT sensors will be delivered straight to the ERP software. If any information changes along the road, it will be automatically updated in the software. For example, if one of your equipment is broken during installation, and the IoT system is linked to your business ERP software, the information would reach your team in real-time, requiring prompt action to ensure ongoing production.

Analytics in Real-time

Integrating ERP with IoT data allows businesses to acquire critical business insights quickly. Businesses may use the constant stream of data from IoT sensors and devices to undertake real-time analysis, allowing them to get actionable insights and enhance decision-making. These actionable IoT data insights have the ability to shift your operations from reactive to proactive mode. Consider combining ERP systems with AI and machine learning, as well as IoT, so that staff receives the correct ideas at the right moment, assisting them in making the best decisions possible.

More Efficient Operations

By combining ERP with IoT technologies, many manual processes may be automated, increasing operational efficiency. For example, scanning a barcode and manually entering data into the ERP system will no longer be necessary. All actions such as reordering, restocking, inventory changes, and missing deliveries may be recorded and automatically updated in your ERP system in real-time using sensors embedded in machines and parts, thanks to the Internet of Things.

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Business Intelligence

For any business, decision-making and planning determine the growth and revenue for the years to come. ERP systems, when connected with IoT, can contribute to decision-making with complex business insights, real-time information fetching, and much more. By eliminating paperwork and manual human efforts, IoT makes things easier and strengthens the value of your ERP system with new-age technology.

Better & Smarter Forecasting

When it comes to making business, most companies struggle with predictions about the demand and usage of a product. This is when ERP and IoT collaboration makes it easier to determine the link between resources, production, and consumption from the collected data. By analyzing the real-time data from the inventory and transactions collected from the IoT devices, the business ERP system helps with analytics and demographics of your consumers along with the frequency of use, and so on. This way, companies can forecast how to manage the production for better customer reach.

Better Communication

By integrating your ERP system, the communication between the production, dealers, vendors, and customers can get way better than it used to be. When a product is manufactured, the ERP management software enables the easy recording of each product sold from the inventory. The manufacturer directly communicates to its customers, and things can go smoothly until the middlemen come into the picture. Dealers, vendors, distributors, and logistic people need clarity on the sales and profit. IoT here is a savior as it updates the necessary information in the ERP system, helping everyone get aligned with the process from start to finish.

Wrapping Up

Modernizing your ERP to drive innovation and deliver business value is a journey that should be custom-tailored to your unique business needs. The benefits delivered by IoT and ERP integrations are going beyond just the management and operational efficiency. Whether it’s the production industry, healthcare services, or smart home facilities, the real-time data connectivity and cloud system have improved the overall scenario for every industry.

Now that you know the advantages of integrating IoT with your ERP wait no further!
Book a quick demo session with HyperNym.

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