Industry 4.0 - The Current Indian Scenario
A PhD holder from the University of Michigan, Dr. Mukesh Gandhi is the Founder and CEO of Creative Synergies Group, prior to which he held the role of CEO - EDS Division at Wipro. Additionally, he has also incepted a technology consulting firm named Quantech Global Services and even worked as a Professor at Michigan State University for 15 years.
With the onset of Industry 4.0, businesses are deploying latest technologies to improve their services and ROI. But as technology continued to evolve, the very definition of industry 4.0 has changed. Today, some might define it as attaching a couple of sensors to their existing machinery, while some others approach it with the intention of digitizing every aspect of industry functions by leveraging digital manufacturing, logistics, supply chains, inventory management and operations. Either way, Industry 4.0 is a welcome change as it has become fundamentally essential for the day-to-day functions of a manufacturing firm.
The benefits that modern technologies and the subsequent data analysis offer for manufacturers are unlimited. It’s an end-to-end solution, helping manufacturers improve their product quality and increase their customer satisfaction rates. Thus, the rate of adoption and the quality of tech-integration is only set to improve in the coming years. As a higher percentage of businesses make the leap, it will set the stage for better innovations and outcomes.
Latest Technologies Driving Industry 4.0
If we compare the tech that revolutionized the manufacturing industry in 2020 to the tech in use today, there will be a stark difference between the rate of technological evolution. Unsurprisingly, one technology that’s been the talk of the town is AI. Be it for streamlining operations, inventory management or managing customer queries & expectations, AI can add value to all. It is intuitive, easy to work with and blends into the background in such a way that businesses sometimes even forget that they leverage AI-based functions on a daily basis. AI has, in a sense, become a stepping stone towards embracing digital transformation for many manufacturers globally. A firm reason behind its success is that AI complements other emerging technologies such as mixed reality, machine learning, IoT, cloud 2.0, industrial robotics and augmented reality.
In a way, we are in the golden age with industry 4.0 tech, where every new innovation will largely stem from the ones that exist today. However, one must be careful not to get carried away because as easy as it is to implement and adapt, manufacturers need to ensure that they synchronize updates to their IT infrastructure with the relevant use cases. You can’t have AI everywhere and not know what to do with it. In fact, this applies for all industry 4.0 solutions because AI tech works wonders when leveraged with intent.
Interconnectedness of Manufacturing Sector & Industry 4.0
Although Industry 4.0 and the manufacturing sector are evolving in an interconnected fashion, we cannot side-line external aspects such as economic conditions and geopolitical turbulence which have made businesses more cautious about their investments. While being overly cautious can hinder the growth of any organization, Indian manufacturers have today turned the situation around to their advantage by investing in the right resources. Thus, in 2023, over 50 percent of manufacturers are investing in R&D or already using ML and AI compared to 2022.
Government-led initiatives like Make in India, Make AI Work for India, and Startup India also played a huge role in getting manufacturers to embrace technology. Manufacturers today understand the need for third-party support when it comes to technology and don’t shy away from changing processes around, if it heightens efficiency. This tandem growth of technology and the sector has increased the inflow of capex and heightened merger and acquisition activity. There has been a massive surge in the total manufacturing output, and the country’s export rates have also accelerated compared to just a few years ago.
Industry 4.0 in India & Abroad
India currently has a substantial number of manufacturing businesses investing in the 4.0 technology. Thus, not only is India catching-up to China, Japan, Germany and others, but it has also established itself as a viable manufacturing hub for global players. India’s automotive OEMs, for instance, have been creating products that compete on a global level. In 2022, Indian EV manufacturers sold a million units, marking a 206 percent increase compared to 2021. Not only did Indian automotive OEMs manufacture effective EVs amidst a lithium supply shortage in 2022, they also made them suitable for the Indian roads and the market. Hence, the difference between India and other countries is that despite having fewer resources compared to first-world countries, India possesses the capability to break all the barriers.
Future Prospects
The upcoming few years are no doubt very crucial for the manufacturing sector in India. Not only will it set the tone for what counts as efficiency in the manufacturing sector, it will also create a roadmap for how newer manufacturers kick-start their venture. There will be little to no buffer period before businesses realize that they can profit a lot more by investing in technology. Digital innovation solution providers will have a larger role to play in not just getting manufacturers to adopt new technologies, but also helping them integrate it into their activities, making them a ‘digital colleague’.
Manufacturers will also unlock a technologically-charged warehouse in the coming years – one that is better equipped to optimize their supply chain, inventory management and reduce the backlogged orders. There’s room for improving processes, identifying new opportunities for growth and breaking the barriers of innovation. Increased adoption of automated services in the future will also allow employees to contribute to tasks that help them add value to the businesses’ growth while freeing-up space to grow professionally. ISVs, product vendors, system integrators and service companies will all play their parts in this revolution
With the onset of Industry 4.0, businesses are deploying latest technologies to improve their services and ROI. But as technology continued to evolve, the very definition of industry 4.0 has changed. Today, some might define it as attaching a couple of sensors to their existing machinery, while some others approach it with the intention of digitizing every aspect of industry functions by leveraging digital manufacturing, logistics, supply chains, inventory management and operations. Either way, Industry 4.0 is a welcome change as it has become fundamentally essential for the day-to-day functions of a manufacturing firm.
The benefits that modern technologies and the subsequent data analysis offer for manufacturers are unlimited. It’s an end-to-end solution, helping manufacturers improve their product quality and increase their customer satisfaction rates. Thus, the rate of adoption and the quality of tech-integration is only set to improve in the coming years. As a higher percentage of businesses make the leap, it will set the stage for better innovations and outcomes.
Latest Technologies Driving Industry 4.0
If we compare the tech that revolutionized the manufacturing industry in 2020 to the tech in use today, there will be a stark difference between the rate of technological evolution. Unsurprisingly, one technology that’s been the talk of the town is AI. Be it for streamlining operations, inventory management or managing customer queries & expectations, AI can add value to all. It is intuitive, easy to work with and blends into the background in such a way that businesses sometimes even forget that they leverage AI-based functions on a daily basis. AI has, in a sense, become a stepping stone towards embracing digital transformation for many manufacturers globally. A firm reason behind its success is that AI complements other emerging technologies such as mixed reality, machine learning, IoT, cloud 2.0, industrial robotics and augmented reality.
In a way, we are in the golden age with industry 4.0 tech, where every new innovation will largely stem from the ones that exist today. However, one must be careful not to get carried away because as easy as it is to implement and adapt, manufacturers need to ensure that they synchronize updates to their IT infrastructure with the relevant use cases. You can’t have AI everywhere and not know what to do with it. In fact, this applies for all industry 4.0 solutions because AI tech works wonders when leveraged with intent.
Interconnectedness of Manufacturing Sector & Industry 4.0
Although Industry 4.0 and the manufacturing sector are evolving in an interconnected fashion, we cannot side-line external aspects such as economic conditions and geopolitical turbulence which have made businesses more cautious about their investments. While being overly cautious can hinder the growth of any organization, Indian manufacturers have today turned the situation around to their advantage by investing in the right resources. Thus, in 2023, over 50 percent of manufacturers are investing in R&D or already using ML and AI compared to 2022.
Government-led initiatives like Make in India, Make AI Work for India, and Startup India also played a huge role in getting manufacturers to embrace technology. Manufacturers today understand the need for third-party support when it comes to technology and don’t shy away from changing processes around, if it heightens efficiency. This tandem growth of technology and the sector has increased the inflow of capex and heightened merger and acquisition activity. There has been a massive surge in the total manufacturing output, and the country’s export rates have also accelerated compared to just a few years ago.
Industry 4.0 in India & Abroad
India currently has a substantial number of manufacturing businesses investing in the 4.0 technology. Thus, not only is India catching-up to China, Japan, Germany and others, but it has also established itself as a viable manufacturing hub for global players. India’s automotive OEMs, for instance, have been creating products that compete on a global level. In 2022, Indian EV manufacturers sold a million units, marking a 206 percent increase compared to 2021. Not only did Indian automotive OEMs manufacture effective EVs amidst a lithium supply shortage in 2022, they also made them suitable for the Indian roads and the market. Hence, the difference between India and other countries is that despite having fewer resources compared to first-world countries, India possesses the capability to break all the barriers.
Future Prospects
The upcoming few years are no doubt very crucial for the manufacturing sector in India. Not only will it set the tone for what counts as efficiency in the manufacturing sector, it will also create a roadmap for how newer manufacturers kick-start their venture. There will be little to no buffer period before businesses realize that they can profit a lot more by investing in technology. Digital innovation solution providers will have a larger role to play in not just getting manufacturers to adopt new technologies, but also helping them integrate it into their activities, making them a ‘digital colleague’.
Manufacturers will also unlock a technologically-charged warehouse in the coming years – one that is better equipped to optimize their supply chain, inventory management and reduce the backlogged orders. There’s room for improving processes, identifying new opportunities for growth and breaking the barriers of innovation. Increased adoption of automated services in the future will also allow employees to contribute to tasks that help them add value to the businesses’ growth while freeing-up space to grow professionally. ISVs, product vendors, system integrators and service companies will all play their parts in this revolution
