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Manufacturing Industry Data Center and Cloud Battle Card

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Manufacturing Industry Data Center and Cloud Battle Card Manufacturing Industry Data Center and Cloud Battle Card For Internal use onlyAll USD numbers converted to INR with conversion rate of $1 = INR 71 Sources: Public reports & whitepapers, company websites, primary interviews Manufacturing – DC and Cloud Battle Card Industry The manufacturing industry in India has the second-highest cloud adoption rate of 17%, after the IT industry. Overview The Indian manufacturing market is expected to register a CAGR of 19.4% from 2015 to 2020 CAGR of In 2016, over 22% of Indian The global discrete manufacturing 19.4% from manufacturers used a cloud delivery model industry’s spend on public cloud services 2015 to to distribute software; this is expected to touched INR 19.7 Tr in 2018 2020 exceed 45% in the next decade Hybrid industrial cloud adoption by Indian manufacturing companies spend manufacturers is forecast to double over 0.28–0.36%* of their revenue on cloud the next five years (2018–2023) and Data Center (DC) services in 2018 * Ballpark estimation based on primary inputs Cloud-hosted services will account for Currently, 30% of Indian almost 50% of all organization-level manufacturing companies leverage software usage among manufacturers cloud technology (Jun 2017) by 2023 (2017) Source: IBEF,PWC;IDC Industry India’s manufacturing industry is driven by technological innovations, economic growth, Industry 4.0, and Drivers favorable government policies Advent of Industry 4.0: Significant Operational Improvement in • The application and use of latest technologies, such as Big Manufacturing Data, AI / ML and robotics, have increased According to a survey by EMC: ꟷ India’s first smart factory is being set up in Bengaluru • Over 88% respondents view cloud services as ꟷ The Andhra Pradesh government aims to turn the state critical to realize digital transformation into an IoT hub by 2020 • Over 82% are able to make real-time business decisions leveraging cloud services Government Policy Support • The National Manufacturing Policy aims to increase the share of manufacturing in GDP from 15% to 25% by 2022 • The ‘Make in India’ initiative is also boosting the growth of the manufacturing sector Focus on Technology Integration, Innovation • PwC’s 2019 survey suggests 58% of companies in India are focusing on increased technology integration to enhance their competitiveness Favorable Economy and Business Conditions • In 2018, India was ranked 77th compared to 100 in 2017 for ease of doing business as per a World Bank survey • In FY2018, FDI inflows into India stood at INR 4.4 Tr Key Technology Trends in Manufacturing Industry Key Pain Points Hybrid Cloud Hybrid cloud adoption in the manufacturing industry Companies face agility challenges while 78% will double in 2018–2023 at a CAGR of 21.1% adopting new technologies The global industrial robot market is expected to RPA and ML reach INR 5.21 Bn by 2023, from INR 2.36 Bn in Firms feel there is a skill gap in 2016 78% maintaining current technologies Cyber Indian companies, including manufacturing firms, Security have tripled their cyber security budgets (2018) Firms are not yet on board with the business value of new technology 23% solutions, and are behind on adoption Globally, manufacturers’ spend on blockchain will Blockchain readiness. reach INR 2.1 Bn by 2020 and INR 40 Bn by 2025 Companies face higher cost of 71% Artificial Experts say that the deployment of AI to its full investment for IT technologies potential in the manufacturing industry can add INR Intelligence 87 Tr to India’s economy by 2035 Companies generally believe in the business 51% value of new technology solutions, but are Additive The additive manufacturing industry in the APAC behind on adoption readiness Manufacturing region is projected to reach INR 394.7 Bn by 2025 Sources: Deloitte Industry 4.0 Report For Internal use onlyAll USD numbers converted to INR with conversion rate of $1 = INR 71 Sources: Public reports & whitepapers, company websites, primary interviews Manufacturing – DC and Cloud Battle Card Journey The global manufacturing industry has undergone extensive digitization and is entering the Industry 4.0 towards phase, with large Indian and APAC manufacturers not far behind Industry 4.0 Mechanization Mass Production Automation and Robotics Digitization / Smart Factory 1st Revolution 2nd Revolution 3rd Revolution 4th Revolution Replacement of Equipment Percentage of Installed Base 100% ~10–20% ~80–90% ~40–50% Replacement of complete Little replacement required, as High level of replacement Existing machines are hand loom necessary tooling equipment could be as tooling equipment was connected; only partial kept; only conveyor belt needed replaced by machines replacement of equipment required Increased Cloud adoption in the manufacturing sector has reached significant levels, as ~60% of manufacturers prefer Cloud the cloud model over on-premises deployment Adoption 49% 24% 63% Have implemented cloud or Manufacturing Customers procure SaaS- Manufacturing Cloud Customers quote are considering it for quality based manufacturing applications, quality and reliability as the most control and tolerance analysis whereas 32% prefer on-premises important selection criteria for adopting applications cloud-based business applications Impact on According to a study by The Economist, 60% of respondents believe cloud is ‘very important’ in supporting Manufacturing production processes, while 54% believe it is needed for a better supply chain. Over 52% believe it is ‘very Value Chain important’ for enabling design & prototyping, and 48% said it is ‘important’ for inventory, orders & distribution Design and Production Marketing and After-sales Customer Supplier engineering and assembly sales services I M B I IoT / Connected Inventory Monitoring to Next-gen Intelligent Multiple Digital 3D Printing / Additive Digital Experience / Products for Predictive Better Negotiate / Power Tools / Touchpoints Manufacturing Personalization Maintenance Optimize Procurement Automation M C B I Market Simulation to Integrating I IoT-enabled Big Data, AI and System Integration Develop Segment Hardware Design Discrete Advance Learning for Capability Targeting Strategy SME Capabilities Manufacturing Centers On-demand and Integrated Auto B A Fulfilment C Data Analytics for M Simulation Using Collaborative Targeted Offerings / Virtual Reality Agent-based WebRTC Workforce Personalization Modeling Key Key Use Technologies Cases and C C C M I Cloud-based Cloud-based Cloud-based supply Real-time Monitoring / B Social Media Remote Asset CRM Software CAD Software chain management Predictive Maintenance and Analytics Monitoring Big Data and *Many technologies / use cases are Key Influencing Technology B M ML / AII IoTA AR / VRC Cloud Analytics applicable for multiple instances For Internal use onlyAll USD numbers converted to INR with conversion rate of $1 = INR 71 Sources: Public reports & whitepapers, company websites, primary interviews Manufacturing – DC and Cloud Battle Card Cloud Use Cloud technologies play an important role in multiple manufacturing areas, making a business case for its Cases increased adoption and usage Operations Supply Chain Design New Prod.System Consumption To support data analytics to To gain agility and speed in To offer data capacity and To enable real-time, M2M To enable remote update improve operations and resolving problems through virtualized computing to and M2P communication and maintenance of products reduce cost effective collaboration enable digital designs / services • J&J analyzes Big Data • Pfizer leverages cloud • Aston Martin uses • GE’s operating system • Ford uses cloud to in cloud to drive insights to re-engineer its cloud-based CAD to for industrial internet remotely update supply chain reduce design time uses cloud as a base vehicles’ infotainment • Jabil is integrating systems predictive analytics with • Sandvik Coromant • TetraPak has • JCB uses Live Link, a real-time manufacturing uses a cloud solution transformed its cloud-based IoT • Volvo and Toyota are to reduce the cost of to aggregate IoT data production lines with program, to allow its building SOTA scrap and re-work and reduce cloud-connected customers to be in (Software-over-the-air) by 17% emergency shutdown predictive analytics and constant touch with its capability into their new time decisions from 2 mixed reality to prevent machines by sending vehicle architectures to second to 100 breakdowns and fix out real-time data and upgrade vehicles millisecond equipment with remote keeping them informed remotely experts at all times Conversation Manufacturers are leveraging scalable cloud solutions to enable digital transformation of their operations Triggers as well as to gain from Industry 4.0 applications Impact on Demand High Medium Low Infrastructure Enablers Technology / Managed Conversation Triggers Data Centre Colocation Cloud DR / Recovery Trend Services • More than 43% of Indian enterprises will adopt Hybrid cloud by 2020 • Hybrid cloud workloads in India to more than triple to 43% by 2020, from 13% in 2018 Hybrid • Microsoft launched its Hybrid Cloud offering ‘Azure Stack’ in Cloud India; manufacturing is among the top three customers, along with financial services and IT (2017) • India’s public cloud services market reached INR 177 Bn in 2018 Public • Among all verticals, discrete manufacturing spent the maximum (INR 1.4 Tr) on public cloud services in 2018 (Global) Cloud • Cloud-enabled IoT platforms provide real-time visibility into operational data that was previously unavailable
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