Digital transformation means data metamorphosis. Data that was lost or only temporary before is now recorded by sensors and archived on the internet – creating the Internet of Things (IoT).
The raw data was always there – for example the temperature on a thermometer. The only difference is that now, the thermometer doesn’t just display the temperature, but it also has multiple sensors and is connected to the internet.
Therefore, through digital metamorphosis, analog data is transformed into archived information. That’s what’s revolutionary about the Internet of Things (IoT).
IoT sources and knowledge
What connected refrigerators and self-driving cars mean for society is up for debate. However, what thousands of sensors in manufacturing, retail and logistics mean in an economic and organizational sense is obvious: more information means more revenue.
Of course, digital transformation doesn’t just mean adding a few sensors with internet interfaces and leveraging cloud deployments. Technology is a prerequisite for digitalization, but only in combination with an ERP system does it truly generate value.
IoT therefore is a very important topic for SAP customers. Leonardo is supposed to be SAP’s answer to the increasing demand. SAP customers will have to leverage the Internet of Things someday. However, IoT is not SAP’s core competency, and many of its competitors are lightyears ahead.
Without IoT, there will be no sustainable digital transformation. SAP customers will have to look elsewhere for comprehensive solutions as Leonardo likely won’t be able to deliver.
With Leonardo, SAP is going in the right direction – but to tackle the IoT challenge, customers need more than Leonardo will ever be able to deliver. Consequently, customers should look beyond SAP. It shouldn’t be too hard: almost everyone is currently testing IoT applications or already using them in production.
For example, Siemens has created MindSphere, a highly efficient, cloud-based and open IoT operating system. Together with 18 partners, Siemens furthermore founded the ecosystem MindSphere World.
This ecosystem is supposed to help customers with the implementation and optimization of IoT solutions. Moreover, the partners are funding research and training for MindSphere.