Current Mind Blocks, Status & Thought Process -India
In this section, we shall understand the current level of Digital Transformation and issues in adoption of Industry 4.0 in the Manufacturing Sector in India.
Problems encountered by Indian Manufacturing Industry while it transitions to Industry 4.0
Although there are multiple obstacles in transitioning to Industry 4.0, but according to 52.38% of the industry leaders, cyber security remains the most pressing concern after lack of skilled workforce.
The term “digital transformation” has gone from a boardroom buzzword to a vital strategic imperative, although the movement is still in its early stages. According to IDC, worldwide digital transformation investment will expand at a compound annual rate of 17.1%, reaching $2.3 trillion (53 percent of all ICT spending) by 2023. The United States will spend the most in the digital transformation arena, followed by Europe, China, and India. The technological revolution of today contains tremendous potential, but it also poses new obstacles.
As we begin a new decade, it is evident that we are still a long way from realizing the full potential of technology to solve our most pressing problems. Technology innovations have accelerated and grown exponentially in only the last few years. 90% percent of the world’s data has been created in the previous two years; artificial intelligence can now detect more than 50 eye diseases better than a doctor; the world’s first fully-electric aircraft completed a successful Virgin voyage, and 5G is no longer a distant future, but a reality in many countries. In the age of digital globalization, India is remaking itself. India is one of the largest and fastest growing digital consumer marketplaces globally, with over 500 million internet users, but corporate adoption is unequal. Technology is set to transform practically every area of India’s economy as digital capabilities develop and connection becomes more pervasive.
Since there is a lack of a realistic risk profile, the organisations remain either indifferent to cybersecurity or remain in the state of fear from cyber breach. Many organisations’ digital operations currently exist in silos, with a lack of a unified tactical approach to risk management, which steers performance, regulatory and organisational compliance management. Although the concerns about data security are legitimate, but they must be viewed in context.
The global digital economy, valued at $11.5 trillion in 2016, might now be worth $15 trillion. It is now time for India to seize this enormous global market potential, mainly because the world views India more favourably than China. Though the government is putting in additional effort, as indicated by the rise in mobile manufacture and other electronic devices, the expansion of internet network in every village, and robust software growth, looking ahead to the local and worldwide market in the subsequent years, the government at the federal and state levels, as well as industries, should synchronize their energies to capture the local and global market. Start-ups, unicorns, and R&D-focused businesses should be prioritized. type of top-line development that digitisation offers to businesses. Because businesses have control over data, digitalization in manufacturing is significantly safer. They can have their own cloud server, platform, and database, which can be leveraged for additional analytics and strategy improvement. As a result, organisations must adopt a forwardthinking strategy, moving from a state of overcautiousness to a state of awareness, and take proactive risk mitigation steps by adhering to global standards and using technology safeguards. Organisations should define and assign value to their digital assets, assign responsibilities, and conduct detailed risk assessments to bridge the cyber risk communication gap. Digital is increasingly changing the workplace and enabling previously
imagined levels of performance. Shortly, fully networked factories are expected to impact across industries. Widespread implementation of Digital Manufacturing, on the other hand, would present lots of new issues.
Data is a valuable asset, and its internal and external protection is of utmost importance for organisations. In our research, the Automotive, Cement, Energy, and FMCG sectors have put a serious concern on data security that hinders them from adopting Industry 4.0.
There is a trend primarily observed in the Cement, Energy, and Textile sectors where the leaders believe that Government seriously lacks in supporting the industry in transitioning towards Industry 4.0.
66.67%
Leaders believe the biggest obstacle is the lack of a skilled workforce.
Will digital transformation play a key role in achieving Net Zero Carbon Emission targets?
Industry believes that the digital transformation will most likely play a key role (specifically in FMCG, Chemical, Automotive and Cement sectors) in achieving the Net Zero Carbon Emission targets the leaders set. Leaders in cement sector recognise the need for advancements in IT infrastructure and innovative technology to facilitate compliance with stringent emission standards & achieving carbon neutrality. More than 90% is positive on the trend.
How will rapid digitalization affect creating new jobs in the Indian job market?
Industry firmly believes that rapid digitalization will increase the creation of new jobs in the Indian job market. Although, in our research, only 12% leaders believe that new jobs will decrease in their sector. We observed the issue was awareness and unavailability of core DX strategy along with leadership communication.
Industries collaborate with tech partners across supply chains and ecosystems to decarbonise and innovate without increasing carbon emissions. Businesses shall utilise technology to understand the carbon footprint of their products and services throughout their whole value chain. Organisations may map, track, and visualise energy data to monitor and minimise consumption. They can utilise these insights to make the best design choices for zero-carbon in-built systems. Modern analytics shall also predict and link the production, raw material and supply chain variables to reduce the footprint.
Net Zero Carbon Emission targets
The carbon footprint of main manufacturing verticals accounts for 31% of overall emissions. Agriculture, logistics, and environmental control account for 19%, 16%, and 7%, respectively, of energy generation and distribution. According to industry-led research, using existing digital technologies across industries aggressively might help achieve roughly one-third of the reductions needed by 2030 to achieve a world average temperature well below 2°C.
Over 90% of leaders feel that DX will significantly impact the goal of achieving netzero carbon emissions. Most organisations have begun to report data using digital technology, which is a positive starting step. However, companies still have a long way to go, and realtime effect can only be achieved if they go beyond electricity use to consider the carbon footprint of the products they use, and the processes they adopt across their supply chains. This will necessitate a considerable investment in data analytics solutions to pull together the information the company will need to meet everincreasing reporting standards. Use cases must be developed that enable the creation of feedback loops for monitoring, analysing, and minimising GHG emissions. To optimise activities and reduce emissions, it is necessary to collect data on an unprecedented scale from all industries. To help businesses manage critical infrastructure assets more efficiently, increased investment in new connectivity and intelligent automation solutions is required
Indian job market & Impact
Studies suggest that Digital Transformation in the Indian manufacturing sector may generate $1 trillion in economic value by 2025. Consumers, corporates, microenterprises, workers, the government, and other stakeholders could all benefit from the economic value India’s Digital Transformation will create as it unfolds. DX attempts to optimise production and labour at the same time, resulting in increased revenue from the same human resource. While some jobs will be displaced and others created due to digitalization, most employment will alter as machines assist humans in the workplace. This will necessitate a renewed focus on retraining. If the necessary training is
provided, higher productivity and increased demand generated by DX may create newer job opportunities and employ more individuals. The immediate impact of productivity-boosting digital technologies is anticipated to generate 60- 65 million jobs. At each stage of value development, new job possibilities will emerge. Its impact will not be restricted to the IT industry alone; it will be felt across all three layers of digital solutions: problem identification, problem-solving, and solution implementation, which will necessitate workers from many sectors such as core engineering, research, marketing, fintech along with IT
Is the Indian Manufacturing Industry more suited for fully autonomous production organisations or a bionic approach?
Entirely autonomous production organisations are fully automated and do not require human intervention onsite. These factories are thought to be able to operate “with the lights off.” Although many industries are capable of producing in the dark, just a handful do so exclusively.
The leaders believe that current technology is still not developed enough where factories can operate without human intervention, and some crucial decisions are better left to the wisdom of humans who have a better understanding of dynamic problems. The age of the Bionic organisation has arrivedthanks to technological advancements. The human-machine collaboration will result in better customer experiences and connections, more effective operations, and considerably higher rates of innovation for businesses.
90.7% PREFER BIONIC (HUMAN+TECHNOLOGY) APPROACH
The role of smart devices and wearables in the manufacturing digitalization domain
The adoption of wearable technology is not limited to the consumer market. Its impact is becoming increasingly apparent in the industry too. The human worker still plays a critical role in delivering outcomes in the industry. With the proliferation of smart, connected devices, there are now more ways to equip workers to perform their jobs, enabling faster, safer, evidence-based decision-making and contributing toward greater business agility and collaboration.
Our research concludes that over 90% of leaders believe that smart devices and wearables in manufacturing play a significant role, while 4.7% believe that it is insignificant. (majorly from chemical & FMCG sector)
The role of smart devices and wearables in the manufacturing digitalization domain
75.9% of organisations from our research said that funding for digital/tech initiatives increased post COVID-19, while only 6% reported no change.
How capable is the current industry in responding to similar catastrophes like COVID-19?
According to 76% of leaders, we reached out to, believe the current industry is developing to respond to similar catastrophes, while 10.8% believe that our industry is not prepared.
The COVID-19 epidemic has changed the way we live and work dramatically. We are at a critical juncture in history. Businesses were obliged to swiftly adapt and handle new issues to stay relevant as countries worldwide imposed city lockdowns and harsher border restrictions. Customers’ touchpoints had to move from offline to online, and companies had to create a remote work environment and modify their supply networks.