ERP 2.0 and S/4HANA
SAP S/4 Business Suite for HANA opens a new chapter in the ERP world. ERP 2.0 combines OLTP and OLAP processing, and merges the world of structured and unstructured data.
System of Engagement = ( System of Record + machine data + un-structured data)
Traditionally ERP is the System of Record, and by adding the capabilities to integrate IoT (internet of Things) sensor - machine data to the transaction system, and by utilizing the predictive capabilities in SAP HANA, a SAP S/4HANA customer could change the maintenance planning in SAP Asset Management (formerly PM Plant Maintenance) by extending the regular maintenance cycles for example of 1000h of operations to 3000h, and rather provide precautionary maintenance based on results of predictive analysis. This can lead to lower overall cost, because less regular maintenance services are performed, and at the same time un-planned loss of operations for a machinery can be reduced.
For more details on how S/4HANA integrates with IoT from a technical perspective, please see IoT Internet of Things and S/4HANA
In a consumer goods example, a customer using only System of Record information like Sales, open order/backlog and available inventory, might be able to reduce either larger backlog or future overstock by considering sentiment analysis of unstructured data from product reviews from social media and web forums.
Please see these links for more detailed information:
Which steps and resources are required to make the transformation to a ERP 2.0 type of system?
Please see this blog by Joshua Greenbaum, which describes which processes might be helpful to take and how more creative resources are required to drive business opportunities with Tier Two innovations.
What is the Internet of Things?
With the proliferation of the Internet, Enterprise IT saw a shift towards Systems of Engagement, encompassing the edge of the business, leveraging social networks, and processing loosely structured data that is constantly changing. Today, we are witnessing another massive revolution where enterprises will need to build the Systems of Things in parallel to Systems of Engagement to harness the Internet of Things. As the previously dumb devices on the edge become intelligent and get connected, Systems of Things will be needed to source, capture, analyze, predict and act on the data in real time.