ERP With IoT-Most contemporary business applications keep getting better with every byte of data they digest—that’s the good thing.
The bad thing: how much they digest—the “volume” in other words—is only one variable of the equation. The rest are “Velocity,” “Variety,” and “Veracity.”
Together, these variables make up the “four Vs” of big data.
Liken these four Vs to the balanced diet essential to living a happy, healthy life. How much you eat is as important as how often you eat, the quality of your food, and the types of nutrients you get. The difference in the case of software tools is that the more you have of each variable, the better the outcome.
This brings us to ERP software tools, perhaps the most wide-scoped type of software used in business organizations. Whatever function—i.e., accounting, procurement, project management, risk management, or supply chain operations—or department—i.e., finance, HR, or customer service—you can think of, chances are, ERP has a role in it.
The software consolidates various business functions and streamlines processes and information across an organization.
For this business-critical software to be able to produce actionable insights on a regular and incremental basis, it needs to feed on humongous amounts of data. In addition, this data needs to arrive fast, from as many different points of the business as possible, and be as clean and accurate as it can be.
Luckily, the current internet of things (IoT) technology has matured to the point where it can sustain the four Vs to maximize ERP systems.
What is IoT?
IoT is defined as the network of physical objects that contain embedded technology to communicate and sense or interact with their internal states or the external environment.
Too technical? Look at it this way: IoT is a mesh of devices and equipment fitted with technology that allows them to talk to each other, exchange data in other words, over the internet.
In its simplest form, it can be the home burglar alarm that notifies you on your smartphone about any unwanted presence or the lights and thermostats at home you can control from miles away.