Press release

5 Mar 2020 New Delhi, IN

Big data, predictive analytics ranked as the top investment priority in technology by manufacturing firms in India - EY survey

New Delhi, March 5: As significant disruptions across Industrial Internet of Things (IIoT), big data and predictive analytics continue to capture the attention of manufacturers, an EY study titled “Will the next transformation in manufacturing be led by digital?” found that 66% of manufacturing firms in India ranked big data and predictive analytics as the top investment priority in technology in the next 1-2 years.

Press contact

EY India

Multidisciplinary professional services organization

  • 66% of manufacturing companies voted for big data, predictive analytics as their top investment priority in the next 1-2 years, followed by the Industrial Internet of Things and sensors, cloud/integrated platforms and robotic process automation
  • 62% of respondents see maximum benefit of digital manufacturing in monitoring and visualization of key performance indicators (KPIs)
  • While 60% respondents have a broad understanding of digital manufacturing, only 23% of manufacturing companies have a clear digital strategy

New Delhi, March 5:  As significant disruptions across Industrial Internet of Things (IIoT), big data and predictive analytics continue to capture the attention of manufacturers, an EY study titled “Will the next transformation in manufacturing be led by digital?found that 66% of manufacturing firms in India ranked big data and predictive analytics as the top investment priority in technology in the next 1-2 years.  While 63% of the organizations ranked sensors and Industrial Internet of Things (IIoT) as the second key priority, as many as 33% ranked cloud/integrated platforms along with robotic process automation as the third key priority for investment for transforming their current manufacturing process. The report incorporates first-hand perspectives of major manufacturing firms in India on the recent technological advancements and their adoption, as part of a survey conducted by EY.

Ashish Nanda, EY India Supply Chain Leader said, “Concepts such as Industry 4.0 and Smart Factory, which interconnect the shop-floor ecosystem through emerging technologies, are now a reality. Digitization continues to transform manufacturing processes around the world leveraging technologies such as IIoT, artificial intelligence, advanced robotics, etc. However, the adoption of digital technologies in India is still in its infancy, considering that manufacturers have started using these technological advancements recently and with limited scope. Going by the success stories though, it is perhaps essential for manufacturing organisations in India to first understand and then embark on this digital transformational journey to remain competitive and attain world-class status.”

The findings of the report highlight the level of adoption of digital manufacturing and India’s preparedness level, the key driving factors, expectations on the benefits and existing challenges that manufacturers face in India.

Adoption of digital manufacturing in India:

While 60% respondents have a broad understanding of digital manufacturing, only 23% of manufacturing companies have a clear digital strategy.

Level of preparedness:

While 63% organizations are somewhat prepared in terms of their hardware infrastructure with basic software only 9% are ready to a large extent with intelligent infrastructure that connects different processes. 20% organizations are prepared to a good extent with appropriate hardware and software for data monitoring.

Factors driving digital manufacturing in India:

The key factors driving digital manufacturing in India include predictive maintenance, connected supply chain, reduced energy consumption, production optimization, lower price of sensors and high computing needs and connected customers.

Key findings

49%

of the respondents stated that they are in the process to enhance their digital infrastructure (hardware and software) to adapt and manage any change for a big technology intervention.

49%

manufacturers have either low or limited maturity around the integration of IT hardware, software and data architecture.

57%

of the respondents believe that break-even on investments in digital manufacturing would take about 2 to 3 years.

Areas where the manufacturers think that their company will benefit the most while adopting digital manufacturing:

Graph 5

The key challenges and risks associated in adopting digital manufacturing:

Graph 4

“Survey findings denote that 17% of organizations are yet to consider or evaluate the potential of digital manufacturing. While many companies have on-going proofs of concept, a full-fledged Smart Factory requires a clear-cut strategy and a well-defined roadmap to be successful in the marketplace,” adds Ashish Nanda.

-End-

Note to Editors

Survey methodology

The report, ‘Will the next transformation in manufacturing be led by digital? -  Status of digitization and smart factory in India,’ incorporates first-hand perspective of the leaders of major manufacturing firms in India as part of a primary survey conducted by EY India. The findings are combined with extensive secondary research and analysis for a comprehensive perspective.

During the primary research, EY interacted with approximately 50 leaders of large manufacturing organizations, including the COOs, CTOs/CIOs, and chiefs of manufacturing, quality and operational excellence, in the pharmaceutical and healthcare, automotive, consumer goods, industrial manufacturing and chemical sectors.

About EY

EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

This news release has been issued by EY Services Limited, a member of the global EY organization that also does not provide any services to clients.