Heavy Flavour measurements in Pb$-$Pb collisions with the upgraded ALICE Inner Tracking System

During the second LHC long shutdown (LS2) the Inner Tracking System (ITS) of ALICE (A Large Ion Collider Experiment) will be replaced by seven layers of CMOS Monolithic Active Pixel Sensors (MAPS). The latest innovations in silicon imaging technology allow for the construction of large, ultra-thin silicon wafers which can further improve the capabilities of the ALICE tracker. The research and development studies towards the construction of a novel vertex detector have started. The detector installation has been proposed for the third LHC long shutdown (LS3) during which the three innermost layers shall be replaced by three cylindrical layers of large curved CMOS wafers. This upgrade (ITS3) will further improve the impact parameter resolution and the tracking efficiency of low momentum particles. The innermost layer will be positioned closer to the interaction point and the material budget will be reduced down to 0.05$\%X_0$ per layer. Monte Carlo simulations of a simplified ITS3 geometry within the ITS2 design indicate an improvement in the impact parameter resolution and the tracking efficiency, which are of crucial importance for measurements of heavy-flavour hadrons. This contribution shows the improved performance for the example of the $\Lambda_{\mathrm{b}}$, for which the significance of its measurement is extracted based on these MC simulations. A significant improvement by almost a factor of three in the low momentum region compared to the ITS2 is observed.