SAP Leonardo IoT and Industry Revolution 4.0

Revolution is inevitable, transformation occurs in nearly each sector, for instance, mechanical industries, finance, know-how, medical science, rocket science, and lots of extra. Nevertheless it creates a huge effect on how the world or the system features. A few of them are straightforward to undertake and lots of of them take their very own time to implement. This text goals to deal with the commercial revolution and the way SAP IIoT (Industrial Web of Issues) performs an necessary function. Along with that this text describes how SAP is adopting the change and supporting organizations emigrate to the brand new trade regular. This text additionally explains the use instances in IIoT.


INDUSTRY is the digital transformation of discrete manufacturing and course of industries. In different phrases, It’s an automation of producing course of, optimization, and streamlining of the enterprise course of utilizing clever digital know-how.

The economic web of issues (IIoT) refers to interconnected sensors, devices, and different units networked along with computer systems’ industrial functions, together with manufacturing and power administration. This connectivity permits for knowledge assortment, alternate, and evaluation, probably facilitating enhancements in productiveness and effectivity in addition to different financial advantages [1].

The IIoT is an evolution of a distributed management system (DCS) that enables for the next diploma of automation by utilizing cloud computing to refine and optimize the method controls.

SAP Leonardo IoT permits the Clever Enterprise by creating dwell insights from linked issues and enterprise processes to ship enterprise outcomes. It helps the trade to remodel from their conventional guide ERP answer to firms combining IoT with rapidly-advancing Synthetic Intelligence (AI) applied sciences to make well-informed selections with little or no human intervention.

What’s Industrial revolution

This part will cowl all of the 4 industrial revolutions:

First: Industrial Revolution

Remodeled from hand manufacturing to mechanical manufacturing amenities with the assistance of water and steam energy.

Second: Industrial Revolution

Remodeled from stream-operated machines to electrical mass manufacturing.

Determine 1.1 Business Revolution

Third Industrial Revolution

This is called the digital revolution that concerned digital and laptop software program functions to additional automate the manufacturing course of.

Fourth Industrial Revolution

The period of machine to machine communication with the assistance of the Web of Issues and ML/AI.


Let’s begin with the definition from Wikipedia. “The Web of Issues (IoT) is a system of interrelated computing units, mechanical and digital machines, objects, animals, or folks which are supplied with distinctive identifiers (UIDs) and the flexibility to switch knowledge over a community with out requiring human-to-human or human-to-computer interplay” [2].

IoT is structured with three necessary parts. Let’s deep dive into every of the parts earlier than we get into real-life examples.

  1. Sensors
  2. Edge providers
  3. Cloud Computing

Determine 2.1 Fundamentals of IoT


A sensor is a small gadget that detects the state of bodily units and transmits the knowledge as digital alerts to an edge or cloud answer that ingests and analyzes the information.

Bodily units can’t sense their standing with out sensors. IoT permits machines or units to speak with one another with the assistance of sensors.

Actual-life examples:

  • Thermostats that measure humidity, temperature
  • Apple watch which detects movement and noise
  • Well being health units that detect motion, and place
  • Chemical sensors which measure contamination ranges
  • Imaginative and prescient sensors recognizing mild, colours, and even advanced patterns like defects in supplies.


In IoT edge, computing stays nearer to the IoT knowledge supply (at a bodily location) to course of, retailer, and analyze sensor knowledge. Thus, edge computing helps in quicker decision-making.

The necessity for edge computing was felt as a result of exponential development of IoT units. Edge computing receives the knowledge from IoT units and transfers the information to the cloud.

Billions of units are producing knowledge day-after-day and knowledge is rising exponentially. Edge community reduces the load on the cloud by managing knowledge regionally and avoids transmitting all of the uncooked knowledge from native sources to the cloud. For this reason edge processing and pre-processing of sensor knowledge play such an necessary function in IoT as we speak.

At instances, there’s a want for storing the information regionally and quickly for knowledge processing to keep away from intermittent community points. A number of the finest examples for edge computing are:

  • In transmitting large knowledge from vessels on the excessive seas, the problem is commonly about bandwidth. Identical with offshore oil rigs, retail shops.
  • In manufacturing, we’ve got store flooring geared up with many alternative sensors monitoring and controlling the manufacturing course of.


Cloud computing is on-demand computing providers akin to storage, distant servers, networking, knowledge analytics, prepared to make use of ML/AI algorithms over the Web. It reduces the price of proudly owning personal software program and hardware and upkeep price akin to electrical energy, cooling units and so on. With the cloud, it’s straightforward to scale up or scale down the storage primarily based on the group’s wants.


Historically, IoT is seen as a community of bodily units and the main target is ready very a lot on how they join and alternate knowledge. However at SAP, we see way more in it.

We see IoT as a key enabler of the Clever Enterprise the place knowledge permits intelligence and feeds course of automation and innovation. Most enterprises have methods that seize operational knowledge about buyer transactions, procurement, vendor contracts, manufacturing and spending, and human useful resource administration.

Studies and dashboards present insights and assist to foretell what’s going to occur subsequent.

However in an effort to affect what occurs subsequent, firms want extra insights into interactions that individuals have with their merchandise, their staff, their enterprise, and their model.

Determine three.1 SAP IoT and Clever ERP Suite

With a view to join the dots and perceive the interdependencies, a enterprise wants an skilled platform that captures it multi function place. SAP Clever Enterprises gather insights from prospects, staff, merchandise, and types at each touchpoint.

Qualtrics is SAP’s answer to optimize buyer, worker, product, and model expertise.

The SAP clever suite gives a set of functions to run day-to-day enterprise operations like manufacturing, provide chain, finance, logistics and so on.

The SAP clever applied sciences’ platform consists of data-driven insights, clever robotic course of automation (RPA), synthetic intelligence, and IoT cloud and edge.


The SAP Leonardo Web of Issues (IoT) providers characterize a community of bodily objects often known as the issues which are used to gather and alternate knowledge [3]. It helps to arrange a factor mannequin, for firms, and repair personnel in an organization and their relationships. It additionally gives a group of REST-based in addition to OData-based providers to retailer and retrieve knowledge effectively for a factor, firm, and repair personnel.

SAP Leonardo IoT permits the Clever Enterprise by creating dwell insights from linked issues and enterprise processes to ship enterprise outcomes.

Determine four.1 SAP Leonardo IoT: System Structure [3]

  1. Gadgets might be linked on to SAP may platform IoT Providers or it may be linked by way of different cloud service suppliers akin to Azure IoT Hub, AWS IoT Core and so on.
  2. Gadgets might be linked to SAP Edge Providers. It sends the information that’s actually necessary to SAP Leonardo IoT Cloud.
  3. SAP Leonardo IoT enterprise providers, that are wanted to construct an IoT software. These predominant enterprise providers embody factor core providers, knowledge ingestion providers, large knowledge storage, and knowledge processing providers like guidelines, occasions, and actions.
  4. SAP platform additionally gives the analytics functionality.
  5. SAP Leonardo IoT presents instruments such because the Factor Modeler to create a factor mannequin that’s the digital illustration of the gadget and its sensors. With the SAP Internet IDE instrument, templates particular to SAP Leonardo IoT allow you to create new SAP Fiori apps from scratch primarily based on IoT.
  6. SAP Cloud Platform Integration iFlows set up the connection between SAP Leonardo IoT and backend methods.
  7. Lastly, SAP, buyer, or companion functions use SAP Leonardo IoT’s APIs to construct new functions.



Fruits Inc. is likely one of the main producers of fruit preparations for dairy, bakery, and confectionary merchandise (business-to-business [B2B]). Fruits Inc.’s suppliers present uncooked supplies, akin to sugar to Fruits Inc.’s manufacturing vegetation the place they’re saved in silos with IoT-enabled sensors. The corporate has the next ache factors:

  1. Inaccurate fill stage measurements
  2. No real-time visibility into consumption
  3. Guide order for replenishment
  4. Product high quality/spoilage

Let’s check out the instance how SAP might be built-in with IoT sensors and ship the auto-replenishment in Silo.

Determine 5.1 Computerized Replenishment enterprise circulate [4]

  1. Sensors connected to receptacles that measure real-time fill-level, materials consumption price, temperature.
  2. Fill-level sensors in silos often measure the gap from the sensor to the floor of the fabric contained in the silo to find out the reorder stage.
  3. Sensors ship the fill stage, temperature, and in addition the humidity data to SAP Leonardo IoT.
  4. In SAP Leonardo IoT, the sensor knowledge is then enriched with enterprise context from the ERP system, akin to the fabric sort, the respective plant, and the storage location.
  5. An automatic integration from SAP Leonardo IoT to the ERP system triggers the automated buy requisition to the related provider primarily based on the enterprise guidelines outlined in SAP ERP software.
  6. Enterprise guidelines in Leonardo IoT ship alerts and notifications if any essential state of affairs happens. So, for instance, a low fill stage, a excessive temperature, or the humidity being too excessive, which may spoil the fabric.

Determine 5.2 SAP S/four HANA with IoT integration system circulate

The method steps concerned in extending the replenishment course of in SAP S/4HANA by integrating with IoT are as follows [5]:

  1. Silos are geared up with related sensors.
  2. To gather knowledge from the sensors in SAP Leonardo IoT, step one is to create a factor mannequin and onboard the silos. Onboarding creates a factor occasion—often known as a digital twin—for every silo. The factor mannequin consists of a number of PSTs, every one containing a set of properties. These properties might be fundamental knowledge, akin to serial quantity and the sort and capability of the silo, or measured knowledge properties, akin to fill stage, temperature, and latitude and longitude.
  3. Streaming guidelines can verify throughout knowledge ingestion to find out whether or not incoming sensor values violate predefined thresholds – Streaming rule to verify the fill stage (rule situation: fill stage < 30)
  4. Occasions triggered by guidelines can set off the next various kinds of IoT actions:
    1. Within the first instance, the streaming rule checking for low fill ranges triggers an IoT motion, which makes use of an API to name SAP Cloud Platform Integration to create a purchase order requisition in SAP S/4HANA to replenish the fabric working quick within the SAP Leonardo IoT is shipped with payload templates and iFlows to simplify this configuration for firms.
    2. Within the second instance, the identical rule triggers a second IoT motion, which creates an in-app notification alert of a low fill stage in one of many onboarded silos. Its textual content incorporates as variables the identify of the affected silo and the present fill stage in tons.
  5. SAP Leonardo IoT consists of SAP Internet IDE with IoT software templates. A wizard- primarily based method permits for code-free IoT software improvement. Because the supply code is obtainable, it may be personalized past the shipped templates through customized coding.

Desk 5.1 Use instances for IoT monitoring and Provide Chain


What’s cycle counting?

Cycle counting is a technique of auditing bodily stock saved in a plant or warehouse location. Inventories are counted a number of instances in a fiscal 12 months primarily based on the product class, price of the merchandise, and its nature. Quick-moving objects are counted extra continuously in comparison with slow-moving objects.

Cycle counting helps to keep up the suitable stock ranges and keep away from the stability sheet errors on the finish of the quarter-end or year-end actions. Cycle counting may be very tedious and consumes lot of time to rely the objects one after the other. There are instances the place firms cease manufacturing to keep away from materials consumption on the store flooring whereas counting in progress. It impacts the manufacturing throughput.

Corporations can introduce the sensors on the warehouse on storage bins which is able to present the real-time stock state of affairs. That is achieved even in advanced enterprise environments. For instance, Imaginative and prescient sensors recognizing mild, colours, and even advanced patterns like defects in supplies.

Actual-life instance – Samsung fridge with media Hub comes with a sensor which provides to the grocery buying listing as quickly because the merchandise is consumed.


Logistics performs an necessary function in retail, pharma industries, discrete manufacturing in an effort to receive highest service stage to satisfy the client demand.

Introducing IoT helps in on time provide, and avoids product wastage (for instance, perishables in retail sector). It additionally holds the significance of sustaining the product situation in pharma trade.

Determine 5.three Outbound Cargo Truck with Telematics System

  • Cargo supply adherence by cargo by transporter, by sort of vehicles, by materials, by route
  • Transportation price by buyer, by cargo, by route, by materials
  • Product situation points by transporter, by route, by materials
  • Predict supply time to provide supplier/buyer close to correct time of cargo arrival
  • Correlate late arrival with transporter, truck, route, climate knowledge, and route terrain knowledge to provoke proactive corrective measures
  • Change supply doc standing
  • Change transportation order standing
  • Prepare new truck in case of breakdown
  • Optimize route and cargo launch time for in-time supply
  • Truck idle time alert
  • Storage situation deviation alerts
  • Actual-time estimated time of arrival
  • Truck breakdown alerts
  • Route deviation alert

A number of the challenges that firms face in enterprise IoT are as follows:

  • Getting the enterprise prepared for Business
  • Enhancing the Line of Enterprise processes with operational knowledge from IoT
  • Making sense out of IoT knowledge
  • Semantically integrating sensors and units from totally different distributors
  • Integrating current IoT knowledge into their enterprise processes
  • Utilizing IoT knowledge to develop their very own IoT-enabled enterprise functions
  • Driving enterprise selections primarily based on real-time operational knowledge from sensors
  • Translating sensor values to insights and enabling enterprise outcomes

[1] Boyes, Hugh; Hallaq, Bil; Cunningham, Joe; Watson, Tim (October 2018). “The economic web of issues (IIoT): An evaluation framework”. Computer systems in Business. 101: 1–12. doi:10.1016/j.compind.2018.04.015. ISSN 0166-3615.
[4] Determine 5.1
[5] Use Case 5 – Authors: Sijesh Manohar, PVN Pavan Kumar, Shyam Ravindranathan, use instances: SAP Leonardo Web of Issues in “Web of Issues with SAP Implementation and Growth”,1st version pp 415 Rheinwerk Publishing · Boston, MAAbout Creator:

Muralikrishnan Panneerselvam acquired Grasp of Pc Purposes in 2006 from Anna College, India, Chennai. He’s presently pursuing job as Senior Supervisor in Provide Chain Administration. His analysis curiosity in IoT, ML/AI in provide Chain Administration, Digital Transformation

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