According to a survey conducted by PwC India, the Indian manufacturing industry is poised for significant transformation with the advent of industry 4.0. The survey reveals that 54 percent of companies in India have already implemented artificial intelligence (AI) and analytics for their business functions.
Interestingly, the survey highlights that Indian manufacturing companies tend to prefer adopting a standardized digital solution across all their plants, unlike global companies that opt for a standardized solution with different functionalities or modules. This indicates a preference for streamlined and consistent digital solutions in the Indian manufacturing sector.
However, the survey also reveals that 38 percent of companies in India have no plans to adopt digital technology for their businesses. This suggests that there is still a significant portion of the manufacturing industry that has yet to embrace digital transformation.
The survey interviewed CXOs of organizations in the domestic market, including multinational companies (MNCs), to gather insights into the digital transformation trends in the manufacturing sector. The report emphasizes that digital champions in various sectors in India recognize the importance of resilience, transparency, and sustainability for future growth. They also acknowledge that greater innovation and faster time to market are vital to staying relevant in the competitive landscape.
Overall, the survey reflects the evolving nature of the manufacturing industry in India, with a substantial number of companies embracing AI and analytics while others still have room for progress in their digital transformation journey.
The survey conducted by PwC India also highlights the financial benefits of technology deployment in the manufacturing industry. It states that the average payback period for technology deployment use cases is less than three years. This shorter payback period serves as an encouraging factor for organizations to invest in technological solutions.
However, the report also points out that a significant challenge lies in the lack of planning to align digital transformation initiatives with the organization’s objectives and effectively implement digital technology. This highlights the importance of strategic planning and integration of digital transformation with the overall business strategy.
The report further reveals that companies in India that invest a minimum of 3 percent of their total sales in digital transformation initiatives tend to achieve higher returns. This suggests that a dedicated investment in digital transformation can yield significant benefits for companies in terms of financial performance.
Additionally, the report highlights a difference in approach between Indian companies and global companies. Indian companies tend to focus more on people, policies, and mindset, while global companies prioritize building the right systems to drive transformation. This indicates the need for a balanced approach that combines organizational culture and mindset with robust technological infrastructure for successful digital transformation.
Overall, the survey emphasizes the importance of aligning digital transformation with organizational objectives, investing in technology deployment, and adopting a holistic approach that combines people, policies, mindset, and systems to drive successful digital transformation in the Indian manufacturing industry.
The survey findings highlight the significance of collaboration and the involvement of the right team and enablers in driving successful digital transformation in the manufacturing industry. Collaborating with experts who can develop a custom digital transformation strategy tailored to the organization’s specific needs is crucial for maximizing return on investment (ROI).
According to Sudipta Ghosh, Partner at PwC India, organizations should also consider aspects beyond financial outcomes to ensure a holistic and sustainable impact of digital technology implementation. This implies that tangible returns, such as improved operational efficiency, enhanced customer experience, or streamlined processes, should be taken into account when evaluating the success of digital transformation initiatives.
Furthermore, the survey underscores the importance of leveraging data to generate insights and make informed decisions. The ability to effectively analyze and utilize data can significantly influence the ROI of digital transformation efforts. By harnessing the power of data and leveraging analytics capabilities, organizations can drive innovation, optimize operations, and stay competitive in the dynamic business landscape.
In summary, the survey emphasizes the need for organizations to collaborate with the right team, develop customized digital transformation strategies, and focus on both financial and non-financial outcomes. By leveraging data and insights, organizations can make timely decisions and drive sustainable business impact through digital technology implementation.
Looking ahead, it is crucial for organizations in the manufacturing industry to not only learn from success stories but also take into account potential challenges and failures when formulating their digital transformation strategies. While some companies have successfully implemented future-ready technologies to address operational issues, the key lies in scaling these initiatives across the entire value chain.
According to Ankur Basu, Partner and Digital Operations Leader at PwC India, the effective adoption of digital technologies at a significant scale necessitates strong commitment from the leadership team, a well-defined implementation roadmap, and a skilled workforce. It is essential for leaders to champion the digital transformation efforts and provide the necessary resources and support to drive successful implementation.
To achieve success, organizations should focus on building a culture of digital innovation and agility, fostering collaboration and knowledge sharing, and investing in continuous learning and development. Additionally, partnerships and collaborations with technology experts and solution providers can play a crucial role in navigating the complexities of digital transformation and ensuring its successful implementation across the value chain.
By embracing digital technologies effectively and holistically, organizations can not only overcome operational challenges but also unlock new opportunities for growth, efficiency, and competitiveness in the manufacturing industry. It requires a strategic and coordinated effort, with a focus on people, processes, and technology, to drive successful digital transformation and position the organization for long-term success in the evolving business landscape.
