Impact of IoT Integration on Enterprise Resource Planning (ERP) Systems: A Comprehensive Literature Analysis

The integration of Internet of Things (IoT) technology with Enterprise Resource Planning (ERP) systems has gained significant attention in recent years. This research study aims to provide a comprehensive analysis of the impact of IoT integration on ERP systems. The study explores the benefits, challenges, and potential solutions associated with combining IoT and ERP. The findings highlight that IoT integration with ERP offers several advantages, such as real-time data collection, improved supply chain visibility, enhanced asset tracking, and predictive maintenance capabilities. These benefits lead to increased operational efficiency, reduced costs, and better decision-making. The integration of IoT with ERP also presents challenges that need to be addressed. These challenges include data security and privacy concerns, IoT traffic, and data management. The research identifies potential solutions and best practices to overcome these challenges. Furthermore, the study discusses the implications of IoT integration on various functional areas of ERP systems, such as healthcare, manufacturing, logistics, inventory management, and customer relationship management. The research methodology includes an extensive review of existing literature and case studies. This research provides valuable insights into the impact of IoT integration on ERP systems, offering guidance for organizations considering already implemented IoT-enabled ERP solutions or currently implementing ERP solutions.

I. Introduction

IoT also known as the Internet of Things refers to a vast network of interconnected physical devices, objects, or "things" embedded with sensors, software, and other platforms that enable them to collect and exchange data over the Internet or other communication networks to holds the potential to revolutionize numerous industries, enhancing efficiency, convenience, and overall quality of life, but also comes with various challenges related to security, privacy, scalability, and interoperability [1][2] and ERP systems offer significant technological, knowledge-sharing, and leadership benefits, providing organizations with the tools and insights needed to thrive in a shrinking global market. Effective utilization of ERP systems enables businesses to remain competitive, make data-driven decisions, and foster collaboration among stakeholders, leading to enhanced operational efficiency and overall success [3]. Since the year 2000, the adoption of Internet technology in ERP systems has witnessed a notable increase, with the integration of Internet and extranet technology becoming more prevalent [4]. Today, the combination of the IoT and the influx of massive data is significantly impacting the ERP landscape, bringing about new possibilities for operational excellence, Real-time Data Collection and Monitoring, Predictive Analytics and Maintenance, Personalization and Customer Experience, Data Security and Privacy, and Scalability and Data Management. The study would likely involve conducting a comprehensive analysis to examine the benefits, challenges, and implications of incorporating IoT capabilities within the context of ERP systems. The research may investigate how IoT integration can impact data collection, real-time monitoring, and decision-making processes and address concerns related to security, interoperability, and scalability in IoT-enabled ERP environments.