Manufacturers to become leaders in digital transformation, Auto News, ET Auto
By Naresh Purohit
The manufacturing sector in India has been the engine of economic growth, contributing up to 17% to the GDP. India’s manufacturing industry has the potential to exceed $ 1 trillion in revenue by 2025 and is expected to create 100 million new jobs. But the sector is at an inflection point, especially after the onslaught of the pandemic. The sector is transforming thanks to innovative and advanced technologies.
It was the industrial revolution of the 19th century that led to further rapid advances in production and stimulated wealth creation. India’s manufacturing sector finds itself in a similar situation with the challenges of the pandemic requiring faster adoption of information technology (IT) to survive and thrive. Information technology plays a leading role in the modernization of the manufacturing sector.
Unlike other industries, the trend of IT modernization in manufacturing is not fueled by the need for the workforce to adapt to remote or hybrid work environments. Cutting costs is not a major motivator either. On the contrary, the manufacturing industry is re-examining its computer models and the computer-induced modernization is stemming from the pandemic and its cascading effects on the world as a whole.
In the wake of COVID-19, industry executives have been tasked with reconsidering standard business procedures, especially how they align with protecting employees through social distancing practices while maintaining schedules of production.
CIOs are looking for dynamic new technologies to move production forward and eliminate inefficiencies in existing processes. Helped by Industry 4.0 tools, they are revolutionizing production and redefining companies. Advances in technology help them increase efficiency and improve connectivity between manufacturers, suppliers and customers.
This digital transformation in the manufacturing sector is supported by direct government initiatives. The Union government’s Production Incentive Program (PLI) is a positive step in making India an even more attractive manufacturing destination. It covers electronic and technological items as well as industries such as battery manufacturing, cars and automotive components, as well as telecommunications and network devices.
Likewise, Samarth Udyog Bharat 4.0 (Smart Advanced Manufacturing and Rapid Transformation Hubs), an initiative of the Department of Heavy Industries (Ministry of Heavy Industries and Public Enterprises), is India’s push for a manufacturing strategy. modern technology to disseminate technological solutions to Indian manufacturing units by 2025 through awareness raising, training and demonstration centers methods.
About 87% of manufacturing IT professionals believe hybrid and multi-cloud infrastructure is the best IT operating model for the business~
Push for hybrid and multi-cloud acceleration
The recent Nutanix Enterprise Cloud Index (ECI), a study of the state of enterprise cloud deployments and adoption plans around the world, finds that about 87% of manufacturing IT professionals believe hybrid and multi-infrastructure cloud is the best IT operating model for the business. He also found that with around 18% penetration, more manufacturers are using hybrid clouds than in any other industry today.
Manufacturers have also signaled plans to more than double their hybrid usage within three years and increase their deployments to around 52% penetration within five years. This leap to modernization will reshape traditional manufacturing practices and accelerate digital transformation across the industry, but the path to getting there will require a concentrated effort from IT leaders in the industry.
Manufacturers believe hybrid and multi-cloud will help this transition as companies seek to adopt the most suitable model to better meet business needs, better control the use of IT resources, and increase speed. to meet the needs of the business.
Toyota Motor used a cloud platform to implement a virtual office infrastructure (VDI) that can support the remote use of 3D CAD design software~
Hybrid cloud offerings in the automotive sector
Industry 4.0, the fourth industrial revolution, is underway, and the transition to adopting hybrid cloud offerings will automate current backend operations, freeing up resources to invest in other modern smart technologies. This is particularly relevant for the automotive sector.
A great example of driving digital transformation in manufacturing can be found at MotorCorp Hero.
The company was using a three-tiered infrastructure that did not meet its business needs, causing bottlenecks on front-end applications that wasted employees’ time while trying to do their jobs efficiently. The infrastructure was taking a long time to manage, not giving the business the agility it wanted.
By moving to a cloud platform, the application performance increase was 30%, which allowed key management tasks to be handled more efficiently. From the outset, the queues for delivery trucks blocked due to a poorly performing management application disappeared. Employee productivity increased by 20% and IT systems administration productivity increased by 70%.
Toyota Motor used a cloud platform to implement a Virtual Desktop Infrastructure (VDI) that can support the remote use of 3D CAD design software. Employees in the engineering design group said the move allowed them to work in a new way, and it became even more important when they were forced to work from home due to the spread of COVID-19. They could continue to do design work without interruption.
Long journey ahead
Despite strong pressure to transition to hybrid cloud architectures, the manufacturing industry still has a long way to go before this becomes a reality. More than 15% of global manufacturers are still traditional data centers and not cloud-ready.
The digital transformation of manufacturing will not be complete until the industry adjusts its current production methods, including the way products are designed, assembled and delivered to consumers. Hybrid cloud offers features that can impact all operations, from planning to supply chain. The ability to introduce automated processes and other technologies such as robotics can reduce unnecessary costs and increase production efficiency, allowing workers to focus on efficiency and quality rather than production.
The digital architecture behind smart manufacturing is not yet here, as most organizations only use digital production tools. To make this transition a reality, manufacturers plan to phase out legacy data center installations as they scale their hybrid and multicloud developments by more than 30% over the next five years.
As manufacturing continues to strive to realize the full potential of Industry 4.0, IT modernization will free up time, resources and energy to upgrade physical tools. Hybrid and multi-cloud are the digital engines of this progress.
(Disclaimer: Naresh Purohit is Director – Systems Engineering, Nutanix India & SAARC. Opinions expressed are personal)