How IoT Can Fast Track the ‘Make in In­dia’ Ini­tia­tive

The ‘Make in In­dia’ ini­tia­tive has the ca­pa­bil­ity to take the In­dian econ­omy to new heights and gen­er­ate sig­nif­i­cant em­ploy­ment. Com­pa­nies and in­vestors will in­deed look for ben­e­fits that could be ac­crued from this ef­fort

Voice&Data - - COVER STORY - Nandagopal Prasad

Aimed at trans­form­ing In­dia into a global hub, the ‘Make in In­dia’ ini­tia­tive by the Gov­ern­ment of In­dia has at­tracted eye­balls from across the world. The gov­ern­ment poli­cies and the in­vest­ment en­vi­ron­ment are ex­pected to play a key role for the suc­cess of this ini­tia­tive.

Like China, In­dia too has an op­por­tu­nity to emerge as a global man­u­fac­tur­ing hub. China in the late 70s with the re­sump­tion of US-China trade ties had a fo­cus to emerge as a large vol­ume pro­ducer of prod­ucts at low cost, In­dia too should have a clear vi­sion and be­gin at­tract­ing in­vest­ments with the sole in­tent of emerg­ing as a man­u­fac­turer of high qual­ity prod­ucts at low prices for global cus­tomers.

IoT: TRANS­FORM­ING THE IN­DIAN MAN­U­FAC­TUR­ING SEC­TOR

With many global com­pa­nies now tran­sit­ing to the In­ter­net of Things (IoT), a big op­por­tu­nity awaits the In­dian man­u­fac­tur­ing sec­tor. Much has been writ­ten about IoT and there have been sev­eral de­bates on whether it is over­hyped or ca­pa­ble enough to re­de­fine man­u­fac­tur­ing. While the de­bate still con­tin­ues, al­beit in low vol­ume, there are clear signs and ex­am­ples to in­di­cate that IoT in­deed has the abil­ity to cre­ate what the ‘fourth in­dus­trial revo­lu­tion’ or more pop­u­larly re­ferred to as ‘In­dus­try 4.0’.

One such study by For­rester Con­sult­ing on be­half of SAP men­tions that com- pa­nies which have im­ple­mented IoT have ex­pe­ri­enced pos­i­tive pro­cesses, re­la­tion­ships, and fi­nan­cial im­pacts. The re­port men­tions 22% of the in­ter­viewed IoT lead­ers at global en­ter­prises ex­pe­ri­enced ‘ex­tremely high pos­i­tive im­pact’ in their process ef­fi­cien­cies, cus­tomer re­la­tion­ships, prof­itabil­ity, abil­ity to lever­age data for strate­gic de­ci­sion mak­ing, cus­tomer ex­pe­ri­ence, and 27% on their topline rev­enue.

Against the back­drop of a huge push for busi­ness re­forms through the gov­ern­ment’s ‘Make in In­dia’ project, it is im­por­tant to un­der­stand the fac­tors that fa­vor In­dia to make it a global hub of prod­uct man­u­fac­tur­ing. First, sev­eral re­search re­ports sug­gest that in com­par­i­son to the third in­dus­trial revo­lu­tion, the fourth revo­lu­tion will have a rel­a­tively higher im­pact at com­par­a­tively lesser re­place­ment of equip­ment. Se­condly, IT and soft­ware will have a key role in cre­at­ing the in­fra­struc­ture for In­dus­try 4.0 and IoT and fi­nally, thanks to the abun­dant avail­abil­ity of tal­ent in this area, In­dia will only ben­e­fit fur­ther.

Look­ing back at how man­u­fac­tur­ing be­came a low-cost ac­tiv­ity over 30 years ago, his­tory has once again re­peated it­self. In­dus­try 4.0 and IoT have al­ready been proven to in­crease the abil­ity of man­u­fac­tur­ing plants to pro­duce high­qual­ity goods at low costs by op­ti­miz­ing the whole sup­ply chain. The cost of IoT sen­sors and con­nec­tiv­ity has also re­duced dras­ti­cally and it is set to re­duce even fur­ther and this makes the dig­i­tal trans­for­ma­tion of man­u­fac­tur­ing in In­dia a re­al­is­tic and non-cost in­ten­sive op­tion. While the ap­pli­ca­tion of In­dus­try 4.0 can rev­o­lu­tion­ize the man­u­fac­tur­ing sec­tor in In­dia, IoT of­fers un­lim­ited op­por­tu­ni­ties to im­prove the pe­riph­eral needs of a suc­cess­ful man­u­fac­tur­ing hubs. Just to quote a few ex­am­ples in this re­gard: Smart cities, smart lo­gis­tics, and smart util­i­ties could also pro­vide the cut­ting edge in­fra­struc­ture nec­es­sary to ac­cel­er­ate the in­dus­trial revo­lu­tion in In­dia. The ‘Make in In­dia’ ini­tia­tive pro­vides a tremen­dous op­por­tu­nity for lead­ing IT com­pa­nies, cus­tomers, and part­ners to play a defin­ing role in this jour­ney. (The au­thor is Vice Pres­i­dent, Global Head of SAP Part­ner In­no­va­tion Life­cy­cle Ser­vices) vndedit@cy­ber­me­dia.co.in

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