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New Delhi, 20 June 2023: The onset of industry 4.0 is leading the Indian manufacturing industry to a major transformation in terms of doing business operations. Shifting customer preferences, new distribution models, geopolitical uncertainties, supply chain disruption, and ESG regulations have given rise to new opportunities in terms of redesigning and innovating the existing business models. Various government initiatives like the production-linked incentive scheme (PLI) and ‘Make in India’ have contributed to the development of a favourable environment in the domestic market attracting global partnerships and foreign direct investments (FDI).
Given this context, PwC India conducted a survey to understand the current digital landscape in the Indian manufacturing industry and assess the prospect of laying down the future roadmap. CXOs of organisations in the domestic market, including multinational companies (MNCs), were interviewed to gain insights into the digital transformation trends of the manufacturing sector. Sharing insights from the survey titled Reimagining Digital Factories of Tomorrow, Sudipta Ghosh, Partner, Industrial Products Sector and Data and Analytics Practice Leader, PwC India, said
"This is a very interesting time for organisations, especially in India, who have embarked upon the digitisation journey. Organisations are focusing on improving the efficiency of processes, such as reducing the down time of assets, minimising the maintenance cost of expensive equipment, cutting down the cost of poor quality by understanding the parameters needed for the golden batch using digital twins, automation of processes like connected workstations using IoT for better visibility at the shop floor and workflow-based automated solution for efficient scheduling".
The survey indicates that collaborating with the right team who can devise a custom digital transformation strategy which is suitable for the organisation, and working with the right enablers to implement the strategy is important to increase the return on investment (ROI).
“Organisations will also need to determine aspects of tangible returns apart from the financial outcomes to ensure that implementing digital technology has a holistic, long-term and sustainable impact on the business. Analytics continues to play a significant role in improving the decision-making process, both at the shop floor as well as across the entire supply chain. The return on investments will be governed to a large extent by how organisations are using the data to generate insights and take timely decisions.” Sudipta added
Though there is no single model for success, companies should frame a transformation blueprint having answers to key questions before committing to a digital transformation path. While learning from success stories within their industry may provide the insights on where to begin, it is important to take into consideration a wide variety of contingencies and probable pitfalls from failure case studies.Reiterating on the same, Ankur Basu, Partner and Digital Operations Leader, PwC India, said
“Though many companies have implemented fit-for-future technologies in some capacity to solve operational challenges, only few are able to implement it successfully across the value-chain. Adopting digital technologies effectively at scale requires the commitment of the leadership team besides a clear roadmap for implementation and skilled people.”
This survey has recommended key strategies for successful digital transformation of factories and outlined a strategic route focusing on people, process and technology.
PwC India conducted a survey early this year to understand the current digital landscape in the Indian manufacturing industry and assess the prospect of laying down the future roadmap. The survey covered Indian manufacturing organisations in key sectors such as industrial manufacturing, hi-tech and electronics, chemicals and process industries, pharma and medtech, retail and consumer goods, automotive and transportation. CXOs of these organisations in the domestic market, including multinational companies (MNCs), were interviewed to gain insights into the digital transformation trends of the manufacturing sector.
Chief Communication Officer, PwC India
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