5 misconceptions and facts about IoT in manufacturing

Digital transformation is happening in every part of businesses, especially manufacturing. Factories are no longer aloof from the other business processes and workers are no longer complaining about the siloed data. Information about each step of manufacturing is available to use and share securely from anywhere and any device. And in this manufacturing transformation, IoT (Internet of Things) plays a significant role. According to a study, of all the business who chose to implement IoT, 94% have already seen a return on their IoT investments.
However, there are many misconceptions regarding IoT that makes manufacturers apprehensive about implementing IoT in their manufacturing operations. Here are the top 5 misconceptions about IoT and the facts.

1. IoT is not for SMEs

Fact: IoT is suitable for organizations of any size.
Many organizations think that IoT is only for large enterprises that can afford the time and efforts needed to implement it. In reality, organizations of any size can implement IoT as recent developments in IoT have made it easy to implement and cost-effective. Open-source software like Azure IoT makes it easier for SMEs to leverage IoT in their manufacturing without building comprehensive IoT infrastructure or dedicated IT and engineering teams. Thus, the potential benefits manufacturers can get by leveraging IoT outweighs any concerns about cost or time.

2. IoT is not secure

Fact: IoT is safe and secure
One of the major concerns for manufacturers about IoT is that it is not secure. The fact that the connected devices communicate over the cloud poses security challenges to the manufacturers.  However, due to increasing awareness and research about the security strategies, IoT and cloud are any day more secure than the on-premise IT infrastructures. Although there will always be some potential risk when connecting devices to the internet, an active security strategy helps reduce threats and increase the long-term value of your IoT infrastructure.

3. IoT is not necessary

Fact: IoT helps gain business insights that increase business productivity and ensure operational efficiency.
Though the benefits of IoT in manufacturing outweigh the myths associated with it, manufacturers still think IoT is not necessary. Many of them think that they won’t be ever able to use the amount of information produced by IoT systems. According to McKinsey, around 60% of the IoT industry’s projected $11.1 trillion value in 2025 will depend on data integration and analysis. So it is possible that as your business grows, any unutilized data may suddenly become valuable. Also, IoT doesn’t only generate information but also enables you to gain insights across the supply chain, create new revenue source, and optimize equipment life cycle.

4. IoT is only about connecting devices with sensors

Fact: IoT is all about gaining in-depth business insights to make better decisions
IoT does include connecting the devices and machines with sensors but there is much more to IoT than that. Other than physical devices, IoT also involves networks, cloud, gateways, APIs, etc. Thus, connecting is just the foundation of IoT. But the main motive of IoT is to generate real-time data insights to enable actions and thus, decision making. When the devices are connected to produce business insights, manufacturers can predict outcomes, prevent operation failures, and better augment the system uptime.

5. IoT is expensive

Fact: IoT implementation costs are decreasing and it also helps in building new revenue streams in the long run.
That IoT is costly is one of the biggest myths too. Obviously, investing in IoT requires finance but what organizations look at is only the cost part and not the benefits they get from IoT. Once IoT is implemented, the actionable insights that are generated reduce costs of production, thereby increasing efficiency and productivity. The result is fewer expenses and more growth, which boosts profits.

Understanding the importance of IoT in manufacturing

connected factory

With increase in the competition, it is important to reduce the shop floor costs while also serving the customers right. The current trend is of automation and business intelligence which uses real-time data insights and monitors the data continuously to prevent any loopholes in production. All in all, the potential of the factory connected with IoT increases multi-fold. So, ensure that your organization is not lagging behind in the digital transformation journey because of some misconceptions.
Schedule a meeting with our IoT expert to talk about our end-to-end solutions and to learn about how your business can start benefiting from IoT.

Why should you consider integrating barcode scanner with an ERP system?

Managing a warehouse is a daunting task. There’s so much data to manage, process, and analyze that it becomes difficult to do it manually. Warehouse management takes a lot of time, effort, and energy. However, choosing an ERP system with a warehouse management module is not enough. Your system might still expose inefficiencies in your warehouse. Are you facing any of these problems currently?

  • Increased inventory overstock issues
  • Poor customer service
  • Imbalanced incoming and outgoing records
  • Increased office expenses
  • Manual errors in inventory stocking and dispatching


If you said yes to any of these, consider integrating barcode scanning system to your ERP. Barcode technology is the proven solution for many of your manufacturing, inventory, and distribution woes. It is currently the most used and accessible method to track the “stuff” in your warehouse.
A barcode can transform your business from being inefficient and slow to productive and streamlined when integrated with an ERP system like Dynamics ERP.

How does this integration of barcode and ERP work?

Barcode scanning gives you a real-time or a near-real-time view of all your goods – assets, WIP products, inventory, etc. This helps your ERP system to give you up-to-date and clear business insights about the availability, location, and status of your goods. Implementing an ERP software for these functions without integrating it with a barcode scanning technology gives you just a fraction of potential benefits.
Here are some reasons why integrating barcode scanner to your ERP is beneficial to your company.

1)    Improved inventory tracking

This goes without saying that inventory tracking becomes easy with barcode scanning. Accurate inventory scanning during receiving, storing, using, and dispatching gives you a better and real-time information about your inventory. But when integrated with an ERP like Dynamics AX or NAV, you can optimize the use and placement of the tracked inventory. This data can then be used for production planning, demand forecasting, and much more.

2)    Enhanced accuracy

Human errors are prone to happen during data collection. Plus, manual tracking is too much of a hassle. Barcode scanner and ERP together can improve efficiency and accuracy of data collection by removing those potential errors. With barcode scanning, the workers can do a better, faster job due to reduced data entry and lower misprints.

3)    Reduced Costs

Barcode scanning is an investment that you will cherish for long. With less manual work and thus, efficient workers, you can save a substantial amount of efforts and time. As the tracking and data gathering becomes automated, much of the labor is saved. You get a better view of your inventory, so you can better manage your inventory. That reduces both inventory and holding costs and can eliminate the need for safety stock.

4)    Improved Customer Satisfaction

A barcode system connected to the ERP solution improves customer satisfaction and response times by warranting timely, accurate shipments. Barcodes make the workers efficient by easing their jobs, so they can focus on more important tasks like customer service.

5)    Well Informed Employees

With the integration of barcode scanner and ERP, your employees have all the information they need on their mobile phones. This allows them to share the information on-the-go and view the needed information related to the product, shipment, inventory, etc. in real-time. When they are provided with all the information wherever and whenever they need, their productivity will increase too.


Barcode scanner and ERP integration allows businesses to improve accuracy, productivity, and efficiency while extending even better service to customers and suppliers. Intech provides barcode scanner well-suited for Microsoft Dynamics ERP, so you can further streamline your operations.

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