Global ERD Accelerating Innovation With Indian Engineering

Global ER&D: Accelerating Innovation with Indian Engineering

Key Topics

• Part A:

a. A look at the past 5 years

b. A view on the next decade

c. India as a Design and Innovation Hub

d. Achieving the Next Frontier - Growth Imperatives for

Indian Supply Base

• Part B:

a. Vertical-wise Capability Analysis and Case Studies

Increasing use of electronics

Fuel efficiency/ Alternate Fuels

Electronics / Communication technologies increasing across verticals (e.g., Automotive, Construction, Energy)Enables real time monitoring, greater operational efficiencies and higher comfort

Higher fuel efficiency and sustainability becoming a priority

1

2

Products for local markets

Required customized products for the emerging markets Leverage local talent (India and China) to develop products for the emerging markets

Convergence of Technologies

4

3Devices and products with multiple functionalities (e.g., Consumer Electronics, Mobile handsets, Medical Devices)

Four major trends are driving investment in ER&D

Source: NASSCOM – Booz report on Global ER&D: Accelerating Innovation with Indian Engineering

Customer perception of the Global ER&D supply base has evolved and matured across multiple dimensions

• Using offshoring for supporting complete products instead of processes• Customers offshoring complete product responsibility to their offshore

design centers

• From supporting and sustaining existing products to supply base as a source of innovation

• New ideas targeted towards local/global markets driven by the supply base

• Gradual shift in services offshored – more IP sensitive, higher complexity, extensive interaction between teams

Product versus Process Engineering

Innovation vs Sustenance

Diversification of offshore services portfolio

Preference for Flexible Business Model

• Option to choose across business models (captive vs ESPs)• Availability / accessibility of large pool of skilled technical labor eith

experience across multiple verticals


Indian ER&D services market has witnessed rapid growth over the last 5 years

20092004

Indian ER&D Services Market2004–2009, USD billion

•Short product life cycles, decreasing time to market, flexible capacity driving ER&D sourcing

•More than 60 per cent of current revenues from the traditional verticals - Telecom, Semiconductors and Automotive

•North America continues to be the dominant market with ~ 60 per cent market share

•Within services, embedded services in hardware and software contribute ~ 45 per cent of the revenues

•Number of offshore development centers (ODCs) in 2009 is 3x-4x of ODCs in 2006

•On an average, 3.5 per cent of revenues invested in innovation and IP development

48%


• Indian supply base evenly split between

captives and service providers

• 300+ captives in India today

• 60 per cent serving the Hi-tech verticals

(Semiconductors, Telecom, Consumer

Electronics & Computing Systems)

• All industry verticals have at least 20 different

ESPs serving them

• Top ten ESP’s serving operating across

every vertical

• Total installed base of engineers about 1 million

• Number of engineers employed by the industry

grown at a CAGR of 40 per cent since 2006

Flexible Business models; Number of engineers serving captives and ESPs more than tripled in the past 5 years

20092004

# of Engineers -Captives and Service Providers2004 vs. 2009

~ 150,000

~ 9,000

# of Captives# of Service Providers


Number of Captives & Service Providers-India2009, # of companies

~ 300+

~ 80

Customers leveraging India to design products from first principles

Product Development Efficiency4Capital Efficiency 3

Value Chain Optimization2Low Cost Design and Target-contenting

I. New Baseline Platform

II. Optimize customer interface features and eliminate non-value add features

III. Efficient design with low cost base

I. Utilize lowest labor cost in the region

II. Co-locate suppliers

III. Co-development of parts with suppliers

IV. Utilize non-traditional supply base

I. Manufacturing simplicity

II. Reduced capital through incentives

III. Optimal balancing of capital and labor costs

I. Lower factor costs

II. Organizational efficiency

III. Process efficiency

IV. Sharing Testing Costs

1Frugal engineering design principles

Tandberg’s small & portable USB

Webcam


Global and Indian companies leveraging India for breakthrough innovative products

GE MAC 400 Nokia 1100Locosto Chip for Ultra Low-

Cost (ULC) Handsets

Global Company Examples Products Designed for Local Markets

The “Chotukool” refrigerator for rural India

Tata NANO Pureit

Domestic Company Examples


Breadth of services: Level of coverage of the Indian supply base expanded across many more verticals

2006 2009AutomotiveAerospaceSemiconductorEnergy Construction / Heavy MachineryIndustrial AutomationComputing Systems Medical DevicesConsumer Electronics

InfrastructureTelecom

> 80% of the service providers operate in this vertical

< 25% of the service providers operate in this vertical

Vertical Coverage across Service Providers2006 vs. 2009

• Indian supply base expanding capabilities in adjacent verticals due to easy transferability of skills

• Developing skills in high growth areas – infrastructure engineering, renewable energy, green energy initiatives

• India most attractive destination for most of the key verticals• Aerospace, Automotive, Telecom,

Semiconductors, Medical Devices, Industrial Automation, Construction/heavy machinery

• Second most attractive, after China, in case of Energy and Infrastructure


Depth of services: India is fast climbing the services ladder with greater domain capabilities

Industry Systems Analysis

Requirements

Gathering

Algorithm

Development

Software Design & Coding

Chip / Board Design

PrototypingV&V

testing

Integration

Testing

Auto

Aerospace

Semiconductor

Construction / Heavy Machinery

Industrial Automation

Computer Systems

Medical Devices

Consumer Electronics

Telecom

Nascent capacity (2006) Arrow indicate move from Nascent to Full capacity over 2006-2009

Electronic Engineering Services2006 vs. 2009

CAE/CFD

Analysis

Full Product Development1

Prototype Build & Testing

Mfg Support Documentation VA/VE

Mechanical Engineering Services2006 vs. 2009

Full capacity (2006)


Indian ER&D services market expected to exceed initial market projections

20092006 2020

Indian ER&D Services Market Forecast

NASSCOM-Booz Study 2006 Estimate

New EstimateNASSCOM Market Size Estimates

USD 30-40 billion

USD 40-45 billionRevised projections


31

2020 Share by Vertical

2020 Share by Geography

Incremental growth in ER&D Services OpportunityUSD billion

77%

23%

Aero, Consumer electronics

Europe

NorthAmerica

ER&D opportunity (2020)

40-45

Growth in ER&D opportunity (2009-2020)

32-37

ER&D opportunity (2009)

() Figures in brackets indicate s share for 2009(1) Others includes Computing systems, Construction/Heavy machinery, Infrastructure, Energy, Medical devices and Industrial automationSource: NASSCOM – Booz report on Global ER&D: Accelerating Innovation with Indian Engineering

Japan & RoW

In 2020, incremental growth to be driven by new verticals and new markets

Auto, Telecom, Semiconductors

Significant opportunity exists for supply base to develop product-based solutions that encompass other service offerings


Addressable Offshoreable Opportunity by Service Offering(2020, USD billion)

AddressedOpportunity

AvailableOpportunity

Size of bubble represent ER&D market size in 2020

Fundamental Research

Manf. Engg./ Support

Core Product Development & Design

Technical Publish, MRO & other support activities

Embedded/ Electronic - HW & chip design

Design Support Eng Anal / Modeling

Prototype Bldg., Testing, V&V

Embedded/ Electronic - SW

Domestic Indian ER&D market is expected to add to future growth

ER&D Services Market(2020)

Exports

Domestic Market10% - 15%

Exports85% - 90%

85% - 90%

Total = USD 40-45 billion

• Indian companies have typically retained ER&D in-house

• Public sector leading the ER&D spend; corporate ER&D witnessing strong growth

• Currently, only ~ 10 per cent of the Indian companies estimated to leverage outsourcing

• Access to next generation technologies, leveraging best practices and decreasing time-to-market are the key drivers to outsource

• Planned investments in infrastructure, energy and utilities expected to boost engineering spend

• End to end Engineering, Procurement and Construction (EPC) services to grow to almost 40 per cent of the domestic market

• Offset policies in Aerospace expected to add to industry revenues


Within the domestic market, Infrastructure, Aerospace & Energy expected to contribute ~80% of revenue


Construction / Heavy MachineryAutomotive

2009

Total = USD 400 - 450 million

Indian Domestic ER&D Outsourcing Market2020

Total = USD 4 – 6 billion


Infrastructure

Aerospace

Energy

Telecom

Indian supply base executing cutting edge projects for global majors

AerospaceAvionics

Automotive

Energy

• Flight Controls• Infotainment

• AUTOSAR• Safety & Powertrain

Electronics• Body Electronics• Alternate powertrain

(CNG)

• Alternate energy sources– Solar– Biofuels

Medical Devices

Telecom

Computing Systems

• Handsets for domestic market• Mobile Device Applications

• Netbooks• Portable devices for rugged

terrains• Webcams

• Imaging• Diagnostics

– Portable ECG machines– Portable ultrasound machines

• Device applications

Indicative


17

However, there are challenges facing the Indian supply base

• Sustaining cost competitiveness

• Lack of domain capabilities

• Absence of linkages to manufacturing capabilities

• Lack of a formal innovation policy

• Lack of supporting ecosystem

• Emerging competition

Getting to USD 40-45 billion ER&D services industry will require a four pronged strategy from the supply base

Expanding Engineering

Services Revenue Base

New Markets

New Verticals

1

2

3

4

New Service Offerings

StrengtheningExisting Business

However collaborative action is required to ensure future growth


Priority Action 1: Build complete product development ecosystem

•Defense labs to collaborate with private players

oOpening up for internships to students and industry employees,

Free of cost design tools to colleges

•Build product engineering support infrastructure (e.g. high end

computational facilities etc.) – PPP or joint investment models to reduce

TCO

•Development of innovation clusters/technology parkso Encourage cooperation between different constituents of a clustero SEZs for Aerospace, Automotive Semiconductors

Priority Action 2: Positioning India as a global Engineering and R&D hub

•Enhanced customer outreach and strategic messaging with the key

decision makers

•Showcasing India’s leadership in ER&D

•Creating differentiation for Indian services - global delivery model,

Scalability, Certifications, Innovation Capabilities

Priority Action 3: Increased returns on Offset Policies

•Specifying minimum offset percentages for Engineering Services in

defense and aerospace sector. Expected to have a strong influence on

technology development, employment creation and GDP

Priority Action 4: Accelerate talent capacity and capability

• Curriculum changes with Engineering Services specific electives

• Focus on mechanical and electronic streams within Aerospace,

Automotive and Telecom

• Higher cooperation between research institutes, industry and

academia for well-rounded skill development

oSpecialized programs within vertical domains; special scholarship

programs; internship programs ;on-campus facilities to provide

training facilities

•Faculty Development Program

Priority Action 5: Develop capabilities in emerging technologies in industries of strategic interest to India

•Develop SMEs for frugal engineering

•PPP for setting up labs with collaboration with academia

•Incentivizing R&D through sponsored research programs

•Setup courses that focus on new and emerging technologies

To Summarize: ER&D services positioned to be the next growth engine for the Indian IT-BPO industry

• ITO, BPO and ER&D services are key pillars – leadership in others helped consolidate in ER&D services

• Impressive growth - a reflection of significant expansion of capabilities and domain expertise

• We are in an exciting and creative profession - expanding the portfolio from “Art to Part”

• India playing pivotal role in accelerating innovation – emerging as a design and innovation hub

• Significant future opportunity exists – capability to emerge as a leader in key verticals

• Potential to create a knowledge based economy ; boost India’s GDP growth

• Existing ER&D culture in the country needs to integrate seamlessly to ensure future growth

Key Topics

• Part A:

a. A look at the past 5 years

b. A view on the next decade

c. India as a Design and Innovation Hub

d. Achieving the Next Frontier - Growth Imperatives for

Indian Supply Base

• Part B:

a. Vertical-wise Capability Analysis and Case Studies

Aerospace

Past Present Future

Offshored ER&D Activities

Composite DesignTolerance analysisDynamic Analysis – NVHDigital Prototype AssemblyReverse EngineeringApplication development (IFE)Model based developmentCAD, CAE, CAMCFD Analysis & DesignECMFinite Element AnalysisSoftware Regression & V&VFluid Structure InteractionTechnical Documentation & TranslationsHomologationModule DesignDrafting / DetailingPlastic Mold DesignDesign ConsultancyStress & Thermal AnalysisJigs & FixturesAvionics/System Integration Linear & Non Linear Static AnalysisMold Flow AnalysisTool DesignSystem Testing and Software development

CAD, CAE, CAMCFD Analysis & DesignECMFinite Element AnalysisSoftware Regression & V&VFluid Structure InteractionTechnical Documentation & TranslationsHomologationModule DesignDrafting / DetailingPlastic Mold DesignDesign ConsultancyStress & Thermal AnalysisJigs & FixturesAvionics/System Integration Linear & Non Linear Static AnalysisMold Flow AnalysisTool DesignSystem Testing and Software development

Note: The activities listed provide a comprehensive view of the supply base, specific companies in India may already be involved in activities listed in the “Future” sectionSource: Booz Demand Side Interviews, Booz & Company IC and analysis

Software Regression & V&VFluid Structure InteractionTechnical Documentation & TranslationsHomologationModule DesignDrafting / DetailingPlastic Mold DesignDesign ConsultancyStress & Thermal AnalysisJigs & FixturesAvionics/System Integration Linear & Non Linear Static AnalysisMold Flow AnalysisTool DesignSystem Testing and Software developmentCFD Analysis & DesignECMFinite Element AnalysisIFE Application DevelopmentModel Based Development

Core/Advanced R&D (e.g., Materials, etc.)Bio-fuel based engine DevelopmentEnd-to-End Product DevelopmentIntegrated System DesignElectromagnetic Compatibility (EMC)Acoustics - Noise & Sonic Boom AnalysisSurfacingDesign AutomationCrash SimulationAlgorithm Development in ElectronicsComposite DesignTolerance analysisDynamic Analysis – NVHDigital Prototype AssemblyReverse EngineeringCAD, CAE, CAM

Blue, bolded text represents new

activities in each period

As Aerospace OEMs focus on being large scale SIs, increasingly complex activities are being offshoredto India

Aerospace

Opportunities lie in fuel efficiency and electronics/computer-related innovation

Green Technology Higher Electronic Content AvionicsDescription Relevance for India Description Relevance for India Description Relevance for India

Aerospace companies will continue to push for ways to increase fuel efficiency– Development of

composites and alloy materials with superior properties (temperature, drag, etc.)

– Improvements in aerodynamic design

– WingletsOpen-rotor motors is an area of renewed interest given the fuel efficiency gains, but noise pollution, which is an area of increased focus itself, is a problemBio-fuels are gaining more interest as companies are spending more R&D dollars on testing and building engines that utilize them

Possible Activities– Thermal and

structural analysis of composite structures, CFD-based analysis

The electronic content of aircraft will continue to increaseFly by wireless will allow for less wiringMore Electric Architecture (MEA) will improve overall aircraft performance and energy useDevelopment of Commercial Off-The-Shelf (COTS) software and hardware, use of generic processors and maximizing software based functionality

Possible Activities– Low-cost

alternatives for COTS products, embedded software development, test scripts for testing power and fuel management systems

Aircraft are moving towards integration of avionics and some flight control & airplane systemsPreference for more generic processors and maximizing software based functionalityNext-gen data protocols will allow for greater connectivityImproved safety through situational awareness, weather, etc.

Possible Activities– Software

applications development

– Embedded Control & Diagnostic Systems Development

Technology Trends and Potential ESP Involvement

Source: Booz Demand Side Interviews, Booz & Company IC and analysis

Medium-term opportunity / investments required by Supply base to address these needs

Immediate opportunity / Minimal investments required by Supply base to address these needs

Automotive


Finite element analysis (FEA)DetailingMiddleware and Application developmentPCB LayoutModel based developmentSoftware test and validationVirtual TestingSurfacingSub-Assembly DesignComponent DesignValue AnalysisTolerance Analysis and SynthesisManufacturing Feasibility StudyDigital ManufacturingStress/stiffness predictionGeometric Design & ToleranceComputational fluid dynamics (CFD )Technical & Plant Simulation

Past Present Future

Knowledge based engineering (KBE)Factory simulationDatabase ManagementConversions (CATIA 4 to 5)CADProcess SheetsCompetitive Benchmarking (Non-Teardown)Technical Documentation & TranslationsECMHomologation & Regulatory AffairsE-BOM ManagementBIW DesignModule DesignEngineering Development Testing, Simulation & AnalysisDevelop Design FMEADevelop Gage, Fixture, Test Equipment

Tear Down & BenchmarkingDesign AutomationSupplier Interface & ManagementOverall Program RiskConduct DV, PV, & CC TestingIntegrated System DesignCore/Advanced R&D (e.g., Materials, etc.)End-to-End Product DevelopmentAlgorithm DevelopmentBase Code DevelopmentHardware and Chip DesignKBEFactory simulationFEADetailingFirmwareVirtual TestingSurfacingSub-Assembly DesignComponent DesignValue AnalysisTolerance Analysis and SynthesisManufacturing Feasibility Study

Digital ManufacturingStress/stiffness predictionGeometric Design & ToleranceCFD, CAE, CADTechnical & Plant SimulationDatabase ManagementConversions (CATIA 4 to 5)Process SheetsCompetitive Benchmarking (Non-Teardown)Technical Documentation & TranslationsECMHomologation & Regulatory AffairsE-BOM ManagementBIW DesignModule DesignEngineering Development Testing, Simulation & AnalysisDevelop Design FMEADevelop Gage, Fixture, Test EquipmentMiddleware and Application developmentPCB LayoutModel based development

Database ManagementConversions (CATIA 4 to 5)CADProcess SheetsCompetitive Benchmarking (Non-Teardown)Technical Documentation & TranslationsEngineering Change Management (ECM)Homologation & Regulatory Affairs

E-BOM ManagementBIW DesignModule DesignEngineering Development, Testing, Simulation & AnalysisDevelop Design FMEADevelop Gage, Fixture, Test Equipment, & Mistake Proofing Plan




Indian supply base continues to support increasingly high complexity activities

Technology opportunities lie in the areas of Safety & security and In-car entertainment

Green Technology Safety & Security In-car Information and Entertainment

Technology Description / Potential Work

Potential ES Provider Involvement

Technology Description /

Potential Work



Potential Work


Automotive industry is shifting towards green technology and fuel efficiency– Plug-in hybrids– Plug-in fully electric– Gasoline-electric hybrids– Hydrogen fuel cells– Advanced diesel

technologies– Flex-fuel engines

Possible Activities– System level

validation of Powertrain ECU

– HIL testing– Development of

Powertrainembedded control systems

– Software support for Hybrid Engines

Advanced electronics will allow for greater driver and occupant safety– Fast-response

sensors (e.g. airbag deployment, crash detection, etc.)

– Active safety (ESC, crash avoidance systems, etc.)

– X-by-wire applications

– Camera based safety systems

Possible Activities– Software

development for safety modules

– Functional and system testing

Tomorrow’s cockpits will allow for higher levels of connectivity, information, and entertainment– Advances in HMI

(e.g. cell phones, MP3 Players, etc.)

– Consumer applications connectivity (laptops, iPods, etc.)

– Advanced GPS systems (alerts for fuel stations, p.o.i, etc.)

– Advanced navigation systems linked with Telematics

– Safety electronics and warning systems

Possible Activities– Embedded

software applications development

– Functional and system testing

– Development of interface for external device connectivity

– S/W development for HMIenvironment

– Developing vehicular communication platforms

– Developing software platforms (Ex Sync)





Automotive

Telecom

Telecom supply base capabilities areevolving to system level and end-to-end capabilities

Database ManagementConversions (CATIA 4 to 5)CADBug Fixtures and unit testingTesting and MaintenanceASIC design Protocol Software designTechnical assistanceTechnical documentationAnalog designER&D of embedded system software products

End-to-end development of embedded systemSoftware programming designingNetworking software developmentBug Fixtures and unit testingPre-integration testVLSI designDatabase ManagementConversions (CATIA 4 to 5)CADTesting and MaintenanceASIC design Protocol Software designTechnical assistanceTechnical documentationAnalog designER&D of embedded system software products

Past Present Future

Customized control softwareEmbedded software developmentDevelopment of layer2, network management modules, security and infrastructureend-to-end development of embedded system Software programming designingNetworking software developmentBug Fixtures and unit testingPre-integration testDatabase ManagementCAD ConversionsCADTesting and MaintenanceASIC design VLSI designProtocol Software designTechnical assistanceTechnical documentationAnalog designER&D of embedded system software products

Offshored ER&D ActivitiesBlue, bolded text represents new



Several next generation telecom technologies have potential for ESP involvement

New Wireless Standards Competition for Home Telecom Network ConvergenceDescription Relevance for India Description Relevance for India Description Relevance for India

New wireless standards with greater speeds and reliability will continue to be developed– Recently, R&D focus has

shifted from 3G (EV-DO, HSPA, etc.) to 4G, namely LTE

– LTE is an all-IP platform that can better handle the transport of multimedia-intensive applications

– Devices are being developed for commercial launch in 2010 and expected to reach mass adaptation in 2012

Possible Activities– Localization of 4G

wireless equipment

– RF Testing– Embedded

software for programming routers

Competition will be fierce for the home between traditional telecom and cable companies, with one key being Passive Optical Networks (PONs)– PONs eliminate

the "last mile" gap between homes and businesses and high-speed optical networks

– PONs are enabling wirelineoperators to upgrade their networks with FTTx (Fiber to the X, which can be node or home) allowing telecom companies to compete with cable companies

Possible Activities– Hardware

development– Mechanical

engineering– Embedded

software– Testing

Integration and convergence will be a major trend as voice and data services merge– Traditionally, each

telecom service was built on its own network -PSTN for wireline, GSM and CDMA for wireless, internet

– The logical endpoint is the coming together of existing networks into a unitary network architecture, termed Next Generation Networks (NGNs)

– The IP Multimedia Subsystem (IMS) is an important stepping stone to NGN

Possible Activities– Hardware

development– Mechanical

engineering– Embedded

software– Testing





Telecom

Two divergent trends present in handset manufacturing - smartphones and low cost handsets

Device Convergence / Smartphones Emerging Markets HandsetsDescription Relevance for India Description Relevance for India

Technology has finally reached a tipping point as far as being able to successfully merge numerous formerly discrete devices into one, converged device– Potential data revenues and demand for

device convergence is driving significant growth in the smartphonesegment

– Mobile phone operating systems continue to evolve, with different development needs for each OS

– Increased ARPU (Average Revenue Per User) associated with data applications is driving operator’s push for data-centric smartphones

Possible Activities– Application development

across various OS

Handsets for emerging markets must be low-cost, while still providing a fair amount of basic features– The focus of market growth

has turned to the emerging markets in areas such as China, India, Asia- Pacific, the Middle East, and Africa, where low penetration rates and pent up demand for network connectivity bode well for new subscriber acquisitions

– Emerging markets are characterized by price sensitivity that creates demand largely for entry-level phones

– Low cost handsets are typically very minimal in terms of features, but do include features that are customized for the emerging markets (i.e., multiple phonebooks, flashlight integration, etc.)

Possible Activities– Low cost/value engineering– HW and SW development– End-to-end product

development





Telecom

Semiconductors

Past Present Future

Requirement definition and analysis Pre silicon validation

– Pre-layout Verification– Test Synthesis – RTL Design– RTL/Verilog design and Validation– Logic Synthesis

Post silicon validationDigital/Analog IPStacksSystem IntegrationEmbedded solutionsApplication softwareVLSI Design/VerificationWriting Device DriversPlatform PortingTesting SoftwareSimulation and debuggingEmbedded OSPCB DesignASIC/SoC/SiPFirmware & Diagnostics

Post silicon validationDigital/Analog IPStacksSystem IntegrationEmbedded solutionsApplication softwareVLSI Design/VerificationWriting Device DriversPlatform PortingTesting SoftwareSimulation and debuggingEmbedded OSPCB DesignASIC/SoC/SiP Firmware & Diagnostics


System IntegrationEmbedded solutionsApplication software

VLSI Design/VerificationWriting Device DriversPlatform PortingTesting SoftwareSimulation and debuggingEmbedded OSPCB DesignASIC/SoC/SiP Firmware & Diagnostics

Commercial Requirements CaptureFunctional Requirements Capture Architecture system level designPhysical implementation

– FabricationDevelopment of Board Support Packages (BSPs) Requirement definition and analysis Pre silicon validation

– Pre-layout Verification

– Test Synthesis – RTL Design

– RTL/Verilogdesign and Validation

– Logic Synthesis

Blue bolded text represents new



Indian supply base continues to evolve and support increasingly complex activities

Semiconductor technology is aiming for better power management and integrated chipsets

Power Management Next-Gen Wireless Chipsets Higher Performance / Integrated Chipsets


Potential ES Provider

Involvement


Potential Work


Involvement


Potential Work


Involvement

Power management in semiconductor devices is crucial for portable applications as it determines battery life– Integrated chipsets offer

better power consumption than discrete solutions

– Intel uses a 2:1 guideline for design elements, for every 1% increase in power consumption, performance must increase by 2%

Low power semiconductor design, and validation services

Next-gen baseband chips will need to be developed, and current chips will need to be made cheaper to manufacture– 4G chipsets will

represent the next wave

– The market is moving to more single chip mobile solutions that integrate the baseband and microprocessor in single package

Software development for safety modulesFunctional and system testing

Moore’s law implies that computing power doubles ever two years, which is a principle that guides ER&D planning for many semiconductor companies– Push to include

multiple cores or integrate various functions into a single chip

– Adjustments to existing software are required to maximize utilization of the computing resources provided by multi-core processors

Parallel programming S/W engineeringVerification services for multi-core productsSystem-on-chip design and verification





Semiconductors

In Semiconductor equipment, changes in manufacturing process and expansion into related markets is driving technology

Manufacturing Changes Adjacent MarketsTechnology Description / Potential

WorkPotential ES Provider

InvolvementTechnology Description /

Potential WorkPotential ES Provider

Involvement

Semiconductor manufacturing is still an evolving process, and new equipment/facilities will be needed to incorporate changes– Wafer size changes from 200mm to

300mm and then to 450mm wafers in the future

– Reduced line widths, which involves increased complexity due to more dies per wafer

– Alternative materials outside of silicon are being researched

Mechanical design, software design, and automation for new equipmentSustenance engineering for older equipment

Semiconductor equipment technology and knowledge can be leveraged for other markets– Flat panel displays– Solar photovoltaic cells– Flexible electronics – Energy efficient glass

Equipment design and validationMechanical, embedded software, and automation





Semiconductors

Computing Systems

Computing systems supply base supports a wide range of activities


Past Present Future

Verification and validationPorting and Migration ServicesProduct Reengineering (ROHS compliance, application/platform porting)Testing ServicesTech Support (L1, L2 and L3)

ArchitectureHardware/Mechanical Design and DevelopmentSystem Software Design & DevelopmentSystem Integration and TestingProduct DocumentationMechanical Design and DevelopmentSystem Software Enhancements & MaintenanceDevelopment/Maintenance Release Testing inc System Test, Performance Tests etcHardware, Mechanical fixesProduct & System Software SustenanceFirmware DevelopmentHardware Design & DevelopmentVerificationPorting and Migration ServicesProduct Reengineering (ROHS compliance, application/platform porting)Testing ServicesTech Support (L1, L2 and L3)

Complete Product OwnershipProduct ConceptualizationArchitectureHardware/Mechanical Design and DevelopmentSystem Software Design & DevelopmentSystem Integration and TestingProduct DocumentationProduct SupportDerivative product HWMechanical Design and DevelopmentSystem Software Enhancements & MaintenanceDevelopment/Maintenance Release Testing inc System Test, Performance Tests etcHardware, Mechanical fixesProduct & System Software SustenanceSoftware Product DevelopmentFirmware DevelopmentHardware Design & DevelopmentVerificationPorting and Migration ServicesProduct Reengineering (ROHS compliance, application/platform porting)Testing ServicesTech Support (L1, L2 and L3)




Technology trends moving towards technologies that will make ownership cheaper

Portability Lower Power Consumption Advanced Network Architecture Scalability / Virtualization


Potential Work


Involvement


Potential Work


Involvement


Potential Work


Involvement


Potential Work


InvolvementPortability and miniaturization of components will continue to be a trend– Consumer demand

is shifting to portable PCs, namely laptops and netbooks

– Features such as portability and wireless connectivity are important

– Ultraportables, which are smaller and less expensive, but have fewer features, are gaining in popularity

Mechanical / HW engineering and designSoftware developmentTestingDocumentation

Power consumption is becoming a greater concern as hardware becomes more powerful and complex– Design and

development of storage and server systems taking into consideration energy and power consumption.

– Developing technologies to reduce the ongoing energy costs of reliably maintaining data

Energy efficient designCAD (Modeling/ Detailing)Analysis (Structural, Thermal, Reliability, CFD, Rotor Dynamics)

Network architecture will continue to be refined, with new protocols and standards– Internet small

computer systems interface (iSCSI) storage area networks (SANs) interconnects are low-cost & less complicated

– Ethernet-Based interconnect protocols offer better performance at lower cost

Design, development, testing, and sustenance engineeringProduct SupportPrototyping

Technology that allow for greater scalability, such as through virtualization and cloud computing, will be sought after to minimize fixed costs– Cloud

computing involves real-time scalable resources provided as a service over the Internet

– Allows for extremely flexible computing resources

– Used by Amazon, Google, Yahoo, etc

Design and development of blade servers used in upcoming cloud computing environmentsDeployment and product support





Computing Systems


Indian supply base has significant coverage of the entire Consumer Electronics value chain


Past Present Future

CAE, CFD, FEA AnalysisData migration servicesDetailing servicesPLM ServicesEmbedded ServicesSoftware developmentUI design & testingIP Development

Structural engineeringPlastic engineering Product designDesign evaluation servicesPrototype developmentBatch quantity development and supply servicesMock-up development servicesReverse engineering servicesTool design and development of tools for plastic parts and sheet metal partsSemiconductor design and developmentApplications/middleware debuggingLSI/VLSI designEmbedded software developmentEngineering ChangeCAE, CFD, FEA AnalysisData migration servicesDetailing servicesEmbedded ServicesSoftware developmentUI design & testingIP Development

Product conceptualizationComplete development of embedded componentsend-to-end developmentRequirements and Algorithm DevelopmentChip DesignStructural engineeringPlastic engineering Product designDesign evaluation servicesPrototype developmentBatch quantity development and supply servicesMock-up development servicesReverse engineering servicesTool design and development of tools for plastic parts and sheet metal partsSemiconductor design and developmentApplications/middleware debuggingLSI/VLSI designEmbedded software developmentEngineering ChangeCAE, CFD, FEA AnalysisData migration servicesDetailing servicesEmbedded ServicesSoftware developmentUI design & testingIP Development




The trend is towards devices that blendmultiple functions and open up new segments

Device Convergence Connectivity Digitalization




Potential Work



Potential Work


While especially true for mobile handsets, device convergence is occurring across consumer electronics– Functionality of a camera,

camcorder, music player, game console, and PDA are all discrete devices that can now be found in a phone

– Game consoles can now stream movies, function as a DVR, and play DVD and Blu-Ray discs


Connectivity in consumer devices creates opportunities to provide services seamlessly across mobile and fixed devices– Trend is towards

including internet connectivity through technologies such as Wi-Fi or Bluetooth, even in devices not traditionally associated with computer use (such as home theatre equipment)


Highly popular contents such as books and maps are increasingly available in digital format due to customer demand– eBook readers

such as Amazon’s Kindle have been successful

– Music and movies are increasingly purchased in digital formats (Apple is now the biggest music seller in the US, ahead of Walmart)

– Paper maps have been replaced by personal navigation units, which can now provide real-time traffic updates as well as turn-by-turn directions







Medical Devices

Past Present Future


Medical devices involvement is still maturing, but will cover a greater portion of the value chain in the future

Specifications DevelopmentRegulatory Compliance Strategy FormulationDesign and Development System and software architecture design Analysis & simulationElectronics Engineering Computer system design Analog & digital circuit design Embedded software development

Risk Analysis Design & code reviewsTest Engineering Design for testability Development of test fixtures Development of software for production testingRisk ManagementReliability EngineeringHazard AnalysisProduct Manual Development and PublicationIndustrial Design Concept exploration Product styling Human factors engineering Mechanical DesignMolded part design Mechanism design Industrial Design Concept exploration Product styling Human factors engineering Mechanical Design

Industrial Design Concept exploration Product styling Human factors engineering Mechanical DesignMolded part design Pre-Market Approval/ Notification Designs complying with FDA, IEC, & UL requirements Compliance with FDA design controls Electromagnetic compliant designsRegulatory Compliance & CertificationVerification & ValidationSpecifications DevelopmentRegulatory Compliance Strategy FormulationDesign and Development System and software architecture design Specification development Analysis & simulationElectronics Engineering Computer system design Analog & digital circuit design Embedded software development

Molded part design Pre-Market Approval/ Notification Designs complying with FDA, IEC, & UL requirements Compliance with FDA design controls Electromagnetic compliant designsRegulatory Compliance & CertificationVerification & ValidationSpecifications DevelopmentRegulatory Compliance Strategy FormulationDesign and Development System and software architecture design Specification development Analysis & simulationElectronics Engineering Computer system design Analog & digital circuit design Embedded software development




Energy

Activities supported by ER&D supply base continue to increase in the Energy industry

Past Present Future

FEA & CFDDesign AutomationManufacturing Engineering– CNC and CMM Programming– Tooling Design– Others (service provider Management)Technical Publications– Illustrative parts catalogue – Assembly, Maintenance & Operations Manual– Digitalization of paper manualsField ServicesPlant Safety & ReliabilityPlant Revamp & DecommissioningContent ManagementEngineering DrawingsConversions (CATIA 4 to 5)2-D production drawings3D Modeling (Plant 3D Visualization)Laserscan & Plant Walkdown CaptureCADPlant Operation ManagementDemand Response

Feasibility and Conceptual StudiesFEED StudiesGeospatial application development & implementationGIS Mapping ServiceSCADA/RTURoHS ComplianceFEA & CFDDesign AutomationManufacturing EngineeringTechnical PublicationsField ServicesPlant Safety & ReliabilityPlant Revamp & DecommissioningContent ManagementEngineering DrawingsCAD Conversions2-D production drawings3D Modeling (Plant 3D Visualization)Laserscan & Plant Walkdown CaptureCADPlant Operation ManagementDemand Response

Offshored ER&D Activities-Energy

Conversions– Piping & Instrumentation Diagrams (P&ID)– General Arrangement Drawings' (GADs)– Isometrics (Piping isometric drawing)– As-Built Design2-D production drawings3D Modeling (Plant 3D Visualization)Digitalization of paper manualsLaserscan & Plant Walkdown CaptureCADPLM/PDMPlant Operation ManagementDemand Response




Technology moving towards increased energy efficiency and alternative methods of energy production

Smart utility grids Real-time metering control In - home device control




Potential Work



Potential Work


Investment in grid infrastructure that enables real - time monitoring of energy consumption by end usersInvolves deploying infrastructure that allows two-way communication between the distribution center and the meters which in turn would enable utility companies to predict and prepare for future demand and supply patterns

Hardware developmentMechanical engineeringEmbedded softwareTesting

Smart meter programs where the smart meters are installed at each unit being served by the electricity companyTechnology allows two-way communication to monitor energy consumption on an hourly basisNext generation technology could allow utility companies to adjust demand and supply of electricity based on time of day or customer


Devices are linked in to all home equipment that use energyAllows owners to monitor the energy consumption by each appliance in real-timeCould be programmed to shut down appliances at specific times of the day based on how the owner/ user programs the device






Energy

Infrastructure

Past Present Future

Feasibility studiesGeographical Information System (GIS)Remote SensingAutoCAD drawingsConstruction & Cost Estimation ServicesChange ManagementAnalysis for static load, seismic and wind loadingStructural Engineering & Steel Design Piping & Equipment modelingReliability Assessment of StructuresCAD Design and DraftingExterior & Interior 3D Rendering 3D Aerial ViewTransportation Design AnalysisConstruction DrawingsStructural 2D drafting Architectural Layouts of Plumbing FixtureSite Utility PlanMechanical specifications, drawings & calculations

Architectural Conceptualization ServicesGlazing and façade drawings Welding Engineering ServicesMaterials Engineering ServicesFeasibility studiesGeographical Information System (GIS)Remote SensingAutoCAD drawingsConstruction & Cost Estimation ServicesChange ManagementAnalysis for static load, seismic and wind loadingStructural Engineering & Steel Design Piping & Equipment modelingReliability Assessment of StructuresCAD Design and DraftingExterior & Interior 3D Rendering 3D Aerial ViewTransportation Design AnalysisConstruction DrawingsStructural 2D drafting Architectural Layouts of Plumbing FixtureSite Utility PlanMechanical specifications, drawings & calculations


Indian ER&D supply base steadily moving up the value chain

CAD Design and DraftingExterior & Interior 3D Rendering 3D Aerial ViewTransportation Design AnalysisConstruction DrawingsStructural 2D draftingArchitectural Layouts of Plumbing FixtureSite Utility PlanMechanical specifications, drawings & calculations




Past Present Future

New product developmentER&D (model building, algorithm evaluate/implement)Simulator Software Dev for Optimization/TrainingSystem Engineering incl. Architectural designDevice Drivers, FDT-DTM Dev.Obsolescence ProtectionInteroperability IssuesSystem-on-Chip/ ASIC DevelopmentElectronic Hardware DevelopmentReal-Time Software DevelopmentProduct Innovation for SuccessionProcess development & Reliability check Mechanical DesignPLC ProgrammingSCADAPanel engineeringEmbedded product developmentSystem Integration and Network Fit Field TrialsPorting to New Hardware Client Application & Host Application Software Dev.Product Quality CheckSafety Critical Systems Testing Internationalization and Localization HMI/ GUI Software Dev.Test AutomationProduct documentationProduct maintenanceEnd customer services for Automation Implementation

Process development & Reliability check Mechanical DesignPLC ProgrammingSCADAPanel engineeringEmbedded product developmentSystem Integration and Network Fit Field TrialsPorting to New Hardware Client Application & Host Application Software Dev.Product Quality CheckSafety Critical Systems Testing Internationalization and Localization HMI/ GUI Software Dev.Test AutomationProduct documentationProduct maintenanceEnd customer services for Automation Implementation

– Client-Specific Customization– Domain-Specific Customization– System Integration on-site– Commissioning, Acceptance tests

Obsolescence ProtectionInteroperability IssuesSystem-on-Chip/ ASIC DevelopmentElectronic Hardware DevelopmentReal-Time Software DevelopmentProduct Innovation for SuccessionProcess development & Reliability check Mechanical DesignPLC ProgrammingSCADAPanel engineeringEmbedded product developmentSystem Integration and Network Fit Field TrialsPorting to New Hardware Client Application & Host Application Software Dev.Product Quality CheckSafety Critical Systems Testing Internationalization and Localization HMI/ GUI Software Dev.Test AutomationProduct documentationProduct maintenanceEnd customer services for Automation Implementation


Investments are being made to increase complexity of service offerings to Industrial Automation clients





The future opportunities lie in embedded intelligence, wireless…..

Wireless Communication Embedded Intelligence Real - time monitoring




Potential Work



Potential Work


Development of low cost wireless products allowing for more monitoring points at lower installation costs, higher reliability and securityWireless transmitters are being installed in remote, hard-to-reach areas allowing for continuous monitoring of critical parameters not possible before

Embedded software developmentTesting Verification & Validation

Development of “smart” sensors and actuators that enable them to respond to signals without the involvement of the centralized control systemsSensors carry out specific quality processes to reduce human error

Embedded software developmentMechanical deign servicesTesting & verification

Real time monitoring software applications is fast gaining ground to allow users monitor, analyze, optimize, and adjust business processes in real timeEnables organizations to improve customer service, reduce inventory & risk and lower processing costs

Embedded software developmentTesting Verification & Validation






…..and robotics involving higher levels of automation

Robotics Fieldbus





With the rapidly increasing processing power and advanced intelligence, robots are dramatically increasing their potential as flexible automation toolsRobotic technology is converging with wide variety of complementary technologies —machine vision, force sensing (touch), speech recognition and advanced mechanics

Embedded software developmentMechanical deign servicesTesting and verification

Digital 2-way multi-drop communication link among intelligent measurement and control devicesFieldbus is expected to reduce the life cycle cost of production line and of the total plantAllows integration of devices from multiple suppliers without custom software

Application engineering of fieldbus devicesPlant level integration supplier to end customers






Past Present Future

Database ManagementConversion from major CAD platformsCADTest Fixture Design & PlanningCompetitive Benchmarking (Non-Teardown)Embedded Software Code/ TestingTechnical Documentation & TranslationsEngineering Change ManagementHomologation & Regulatory AffairsE-BOM ManagementBIW DesignModule Design

Develop Design FMEACAE Analysis/Simulation and MeshingHydraulic DesignFEA AnalysisDevelop Test Strategy & PlanDevelop Process Design Updating vehicle designs for meeting emission normsDevelop Workstation Designs & Operation DescriptionsDevelop Vehicle Build PlansConduct Design Verification, Production ValidationDevelop Vehicle Packaging and DesignDatabase ManagementConversion from major CAD platformsCADTest Fixture Design & PlanningCompetitive Benchmarking (Non-Teardown)Embedded Software Code/ TestingTechnical Documentation & TranslationsEngineering Change ManagementHomologation & Regulatory AffairsE-BOM ManagementBIW DesignModule Design

Concept development for future products Vehicle Stability/ Tolerance StackingAssess Overall Program RiskAssure Comprehensive FeasibilityMock UpsSustenance engineering supportservice provider ManagementDevelop Design FMEACAE Analysis/Simulation and MeshingHydraulic DesignFEA AnalysisDevelop Test Strategy & PlanDevelop Process Design Updating vehicle designs for meeting emission normsDevelop Workstation Designs & Operation DescriptionsDevelop Vehicle Build PlansConduct Design Verification, Production ValidationDevelop Vehicle Packaging and DesignDatabase ManagementConversion from major CAD platformsCADTest Fixture Design & PlanningCompetitive Benchmarking (Non-Teardown)Embedded Software Code/ TestingTechnical Documentation & TranslationsEngineering Change ManagementHomologation & Regulatory AffairsE-BOM ManagementBIW DesignModule Design


Complexity of work offshored to serviceproviders has seen a steady progression over time




Construction/Heavy Machinery

The future opportunities lie in technologies and innovation in the electronics area

Environmental Compliance Remote controlled equipment Auto-Manual Transmissions (AMTs)




Potential Work



Potential Work


Customization of product per local requirementsHybrid powertrains to comply with city / state regulationsER&D into alternate fuels like biodiesel to meet upcoming ASTM standards

Mechanical design changesHIL testingSystem level validation of Powertrain ECUDevelopment of Powertrainembedded control systemsFeasibility studiesVirtual simulationTesting and verification

Integrating advanced motion and sensing technologies for safer operating of mining equipmentGlobal positioning systems and software to track and manage construction equipment including tracking vehicles, monitoring fuel usage, operator usage, maintenance, etc

Embedded software developmentMechanical deign servicesTesting and verificationRFID application developmentEmbedded software applications development

Shift to auto-manual transmissions for ease-of-use, fuel efficiency and purchase costs

Feasibility studiesVirtual simulationTesting and verification





Construction/Heavy Machinery

Date post:	07-Apr-2015
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Global ERD Accelerating Innovation With Indian Engineering

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