iot solutions with sap

How to Integrate IoT Solutions with SAP for Predictive Maintenance and Reduced Operational Costs

Integrating IoT and SAP can streamline the management of your supply chain and equipment.

As more companies implement Internet of Things (IoT) devices integrated with their SAP solutions, manufacturing efficiency increases. Operational technology and information technology (IT) reinvent how industrial companies compete with rising consumer demands. With a uniform database as the central point of information, operators don’t need to waste valuable time searching through portals for the information they need since the manufacturer can create a digital twin of necessary data.

IoT and SAP are highly effective ways to streamline production and supply chain management. Together, they create an environment that includes end-to-end transparency and the increased ability to innovate. Both manufacturers and operators can fully comprehend a machine’s history, and Industrial Internet of Things (IIoT)-based system management with SAP makes it easy to identify patterns.

The advantages of predictive maintenance through IoT integrated SAP systems are revolutionizing the industry and paving the way for even more efficiency by eliminating redundancy and improving data capabilities. Seamless networking with SAP systems can automate tasks like placing orders, and the information collected can allow companies to improve their products and develop new business models.

Advantages of Predictive Maintenance

As computation and storage at the edge increase, the companies are finding value in the industrial applications that are possible with SAP and IoT integrations. The Worldwide Edge Infrastructure Forecast states that edge infrastructure can become one of the main engines for growth in the server and storage market.

The need for mobile integrations is noticeable in every industry, and there is much that can be achieved when SAP is applied to manufacturing and the Industrial IoT. Predictive maintenance has been an essential aspect of the industrial sector for a long time. Monitoring equipment conditions and performance in real-time is crucial for reducing equipment failures. This is possible using sensors that supply continuous data to predict when maintenance will be necessary.

Several positive results come to light when these devices are connected to the company’s IoT network and run through SAP Intelligent Asset Management. Since most industrial companies already rely on SAP solutions, it makes sense to combine these powerful tools.

In addition to increased transparency and visibility, here are a few more advantages that are achieved when IoT and SAP solutions work in unison:

1. Cost efficiency

Predictive maintenance integrated with SAP helps determine the right time to replace parts and perform routine maintenance. Production costs can also be lowered in the same way. Machines that are well-cared for will produce more reliable results and optimize production.

2. Improved logistics

Predictive maintenance can also be used to optimize supply chain logistics. Timing transportation with production and maintenance is vital to prevent downtime and unexpected delays.

3. Maintenance efficiency

Anyone who has access to the predictive maintenance database will be able to plan accordingly with the transparent nature of IoT and SAP integration. Additionally, both planned and machine-implemented maintenance can be used simultaneously to increase productivity.

For example, equipment readings that are recorded in plant maintenance and customer service databases can be leveraged in case of a disruptive event. A service notification can be automatically triggered with little to no human interaction. Also, if a sensor detects an anomaly, a maintenance order can be created according to the maintenance plan that the company sets up. A document will then be created in SAP for the assembly and then trigger a maintenance order.

How to integrate IoT and SAP

Integrating your IoT program with the SAP system involves the IoT deployment in AWS or other IoT management systems. Define your cloud infrastructure as code in the appropriate programming language. After deployment, it’s essential to run tests to ensure that your integration was implemented correctly.

Security Considerations for the Industrial IoT

One significant advantage of networked production environments is that many different data points can provide transparency of ongoing processes. Cloud-based technologies intertwined with data collected on the shop floor can be transferred to a database and analyzed through SAP systems.

In industrial settings, the key is creating actionable information that can be visualized, cloned, and fed back into the integrated system for continuous improvement. For an ideal IIoT environment to be successful, the data must circulate continuously.

As the number of devices that hold data at the edge increases, the cybersecurity risk increases dramatically. For example, a hack is initiated every 39 seconds, and most companies don’t even realize they have been hacked until it’s too late.

The IoT Cybersecurity Improvement Act of 2020 helps to ensure compliance in IoT security so that companies can establish a uniform and secure way of deploying additional devices.

While the IoT does widen the attack surface, precautions like using containers, data lakes, and managed security services that integrate with IIoT and SAP systems and secure network vulnerabilities create a safe environment for information to flow continuously. All devices should be tested and cleared by IT before deploying, and continuous monitoring is critical for industrial applications.


The industrial IoT predictive maintenance integrations with SAP systems create an ideal supply chain and equipment management efficiency environment. When SAP is integrated with IoT solutions, you improve logistics, production, communication, and every aspect of the production cycle. Through transparency and the continuous feedback of data, SAP allows companies to develop streamlined business processes.

Many solutions make it easy to get started quickly with IIoT. When it comes to integrating your IoT solution with SAP, choose a trusted provider that can assist you every step of the way to ensure that your system is secure before, during, and after deployment.

IIoT and SAP integrations are not new, but as digital transformation changes how we think about business and communication, edge computing combined with centralized data management is proving to be the ideal path for industrial companies. Predictive maintenance and reduced costs are only a couple of the benefits that an integrated IoT and SAP system can bring to the table.

To learn more about the Internet of Things and SAP, visit our Beyond ERP insights page and SAP insights page, where you can access our Internet of Things and SAP whitepapers, webinars, data sheets, and much more.