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April 15, 2016

Achieve quick wins in IoT with SAP HANAThe Internet of Things (IoT) is more than a buzzword; its a reality. TCS Global Trend Study, Internet of Things: The Complete Reimaginative Force, shares numerous views of IoT growth. Here are a few I find very compelling:

  • By 2020, 25 billion things will be connected.
  • Currently, 79 percent of companies have IoT initiatives in place, and 45 percent use IoT to monitor production and distribution.
  • IoT has increased revenue by 16 percent last year for companies using it.

At TCS, weve been leveraging the SAP HANA platform to develop smart, achievable IoT applications for our clients. On current engagements, were helping them collect data and manage the insights gleaned from that data to enhance efficiency, reduce maintenance costs, improve quality assurance, and manage energy. Im excited to discuss how we use SAP HANA for these applications at SAPPHIRE NOW this year and can pre-schedule time to meet with you there or another time at your convenience.

TCS SAP Practice is seeing explosive IoT growth, and theres every reason to believe companies will be spending more as the use cases become clearer. For example, the consumer packaged goods (CPG) industry may not currently be a big spender on IoT applications, and may be focusing on the supply chain, but by 2018,CPGs average spend on IoT is expected to be $67.6 million. Interestingly enough, CPG companies have been experimenting with RFID technology for years to automate and monitor the flow of goods. Logically, the next step is to connect those sensors and IoT technologies to gain greater sales insights, reduce the cost of sales, improve existing products, and even set more profitable pricing.

In fact, a global CPG client of TCS who is an early adopter of IoT has a strong success story to tell. This CPG company split its industrial IoT initiative into three buckets: prognostic maintenance, energy management, and digital quality assurance.

IoT areas of efficiency

  1. Our clients prognostic maintenance initiative alone is on target to reduce its maintenance costs by 10 percent, simply by predicting and eliminating line stoppages that would have occurred due to machine failures, as well as ensuring preventative maintenance happens before a breakdown is imminent.
  2. Energy management provides real-time visibility into WAGES (water, air, gas, electricity and steam) consumption, and any anomalies are detected and handled right away. For instance, by controlling the temperature and lighting this CPG leader expects an overall reduction in energy consumption by 2-5 percent.
  3. By shifting digital quality assurance from reactive to proactive, the company is reducing consumer complaints that were traced to the production line, reducing the amount of time it takes to resolve problems and contributing to better global public relations.

This is just one strong example of work we are leading with clients to leverage IoT applications to help their bottom line. The opportunities are endless. The SAP HANA platform enables companies to conduct real-time monitoring, track goods, provide operating performance information, and allow for proactive approaches to everything from fixing a piece of equipment in the field before it breaks to recalling a product the moment a problem is reported.

Essentially, everyone from consumers to employees will be able to benefit from a proactive IoT strategy, and its not limited to consumer packaged goods companies. Oil and gas, manufacturing, and retailers, among others, can reap the benefits that automation and constant monitoring provide. I hope that you can join me at SAPPHIRE NOW to discuss how your company can find new growth opportunities and reduce costs with IoT applications on SAP HANA. I look forward to your questions and comments here on this fast moving world of IoT.


Suman is a lead SAP Analytics Solution Architect in TCS’ SAP Practice. He develops solutions for some of the world’s leading companies and is highly skilled in designing, architecting, and implementing end-to-end SAP-based solutions; formulating IT strategies and cutting-edge road maps; developing standards; integrating SAP BI applications within a business and integrating SAP modules with each other.


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