THE IMPACT OF THE INTERNET OF THINGS ON THE MANUFACTURING INDUSTRY USING THE TOPSIS METHOD

Abstract

Research background: The Internet of Things (IoT) is transforming the manufacturing industry by connecting machines, devices, and people to enable intelligent decision-making. However, there is a lack of consensus on the impact of IoT on the manufacturing industry, particularly in terms of its effect on productivity, efficiency, and profitability. Purpose of the article: This study aims to evaluate the impact of IoT on the manufacturing industry by using the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) method. The TOPSIS method is a multi-criteria decision-making technique that ranks alternatives based on their proximity to the ideal solution. Methods: In this study, we collected data from 50 manufacturing companies that have adopted IoT in their operations. We identified four criteria for evaluating the impact of IoT on the manufacturing industry: productivity, efficiency, profitability, and customer satisfaction. We used the TOPSIS method to rank the companies based on their performance on these criteria. Findings & Value added: The results of our analysis showed that the adoption of IoT has a positive impact on productivity, efficiency, and profitability in the manufacturing industry. In addition, the companies that ranked higher on the TOPSIS method were found to have higher levels of customer satisfaction, indicating that IoT can improve customer experience and loyalty.