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ICT Adoption in Manufacturing Sector - India
August 2011
2ICT Adoption in Manufacturing Sector - INDIA 2011.PPT
SAMPLE
Executive Summary
Drivers:
�Operational Improvement
�Significant Cost Reduction
�Global Competence
Market
Drivers &
Challenges
Trends
Competition
� India is ranked x in terms of manufacturing competence by US council for the year 200--
� aa out of abc manufacturing segments in the industry are estimated to grow at xx%
�Manufacturing sector contributes around aa% of India’s GDP and ab% to the country’s exports
� Industrial output registered a growth of xy% year-on-year during April-December 20--
�Top priorities for manufacturing sector in terms of business & technique are X and y respectively
�The culture of using global packaged software applications is now prevalent even among the bottom of the manufacturing pyramid
�Solution 1, Solution 2, Solution 3 are the early adopted solutions in manufacturing whereas Solution 4, Solution 5, Solution 6, Solution 7 solutions are relatively newer in adoption trends
�SMBs which have lower value but higher opportunities as compared to large enterprises, are also adopting ICT solutions for operation
Challenges:
� Identifying Right IT Solution & Lack of Priority Recognition
�Convincing about Financial Investment in IT
� Lack of Awareness About Benefits of IT Implementation
• Company a
• Company b
• Company c
• Company 1
• Company 2
• Company 3
Major Foreign PlayersMajor Domestic Players
3ICT Adoption in Manufacturing Sector - INDIA 2011.PPT
• Manufacturing Sector - Overview� Drivers & Challenges
• ICT Adoption in Manufacturing� Key Technical Enablers & Barriers
� Scope of ICT in Manufacturing
� ICT Need Assessment and Selection Criteria
� ICT Solutions
� Impact of ICT in SMB & SME Clusters
• Role of Cloud in Manufacturing
• Government Initiatives
• Major ICT Vendors� Profiles of ISV
• Major Manufacturing Player Insights
• Case Studies
• Future Trends
• Strategic Recommendation
4ICT Adoption in Manufacturing Sector - INDIA 2011.PPT
SAMPLE
… of becoming high quality global manufacturing hub
Market Overview – Manufacturing (2/2)
• All the segments under manufacturing are performing well, be it product1, product2, product3, product4, et al
• Industrial output registered a growth of f% year-on-year during month1-month2 20-- - --. Among the g major constituents of the index of industrial production (IIP), industry1 and industry2 recorded higher growth rates of h% and j% respectively during this period
• India is set to become a global manufacturing hub for speciality1 over the next k years as manufacturing of speciality1 items predicted to become a INR r trillion industry during this period
Sector13Company31, compnay32, company33,
company34, company35
Core Manufacturing Sectors & Key Players
Sector11Company11, compnay12, company13,
company14, company15
Sector12Company21, compnay22, company23,
company24, company25
Sector23Company61, compnay62, company63,
company64, company65
Sector21Company41, compnay42, company43,
company 44
Sector22Company51, compnay52, company53, company54, company55
5ICT Adoption in Manufacturing Sector - INDIA 2011.PPT
Drivers & Challenges – Summary
Identifying Right IT Solution & Lack of
Priority Recognition
Challenges
Convincing about Financial Investment
in IT
Modification & Optimization of
Resources & Prevalent IT Infrastructure
Lack of Awareness About Benefits of IT
Implementation
Better Customer & Channel
Relationship
Government Initiatives
Global Competence
Significant Cost Reduction
Operational Improvement
Drivers
Operational improvement is a key driver for all
businesses whereas Cost Reduction is the
essential driver for Small & Medium Businesses
(SMB, SME)
For Enterprises, identifying the right solution is
the biggest challenge whereas for SMB/SME,
cost of IT Implementation remains a critical
barrier
6ICT in Manufacturing - INDIA 2011.PPT
SAMPLE
Indian industries are embracing ICT to enhance their
growth & credibility
• ICT industry in India plays a major role in stimulating the country’s GDP, thereby contributing to the growth of the overall Indian economy by a large extent
• Currently, the industry in India is valued at more than USD x8 bn � ICT industry accounts for x9% of the country’s GDP and
provides employment to more than x10 mn people directly and x11 mn indirectly
� Per capita contribution of the industry in the country accounts for USD x12 mn
• The boom in the industry has also led to the enhancement of various other sectors thereby adding fuel to the growth of the country� The industry is all about connectivity and requires a lot of
product_a support thereby increasing the demand of sector20 tremendously
� It requires extensive man power and space for its operations which in turn raises the demand for demand1 and demand2 significantly
� The industry mainly the youth for employment thereby providing ample opportunity to about x14% of the entire population in the country which in turn enhances the employment status of India
� PC shipment in the year 20-- was valued x15 mn
Market Overview – ICT Market Size and Growth
Components of ICT
• product40
• product41
• product42
• product43
• product44
• product45
• Product46
• Product47
• product48
S/W – Software H/W - Hardware
c1%
c3%
c2% Other
Industry31
Industry30
Total IT Market: INR 852.63bn
v1
v2
v3
7ICT in Manufacturing - INDIA 2011.PPT
SAMPLE ICT adoption occurs in multiple phases starting from basic
solutions to intermediate, high-level & finally advanced solutions
Intermediate Adoption
BBBB
High Level Adoption
CCCCC
Advanced Adoption
DDDD
Basic Adoption
AAAAAA
ICT adoption trend in manufacturing companies
• ICT adoption for any manufacturing company takes place in series of levels in a sequence
• Usually adoption is started from basic level & over the time through multiple phases it goes up to high level or
advanced level depending upon operation size, requirements & affordability
8ICT in Manufacturing - INDIA 2011.PPT
SAMPLE
Focus shifting in India towards SMB segment as despite of
having lower industry value it has high growth opportunity
Value-Opportunity trade-off in manufacturing companies of varied size
• X
Small Office & Home Office Small & Medium Business Large Enterprise
• A
• Y
• B
• Z
• C
Value
Opportunity
LOW HIGH
HIGH LOW
9ICT in Manufacturing - INDIA 2011.PPT
SAMPLE
SMB (Small and Medium Business)
• Small and Medium Business (SMB) are privately owned and operated companies whose
employee headcount or turnover is below certain limit (e.g. d1-d2 for business51 & d3-d4 for
business52)
• In India, SMB accounts for nearly d5% of the total sector54 output & shows higher growth rate
in comparison to large enterprises in the sector
• The major advantage of the sector is its employment potential at low capital cost
• As per available statistics, the sector employs an estimated d6 million persons spread over d7
million enterprises and the labour intensity in the MSE sector is estimated to be almost d8 times
higher than the business55
About SMB
SMBs are small
operations having
less manpower &
capital
• SMBs are restricted by capital & hence cannot opt for individual applications for all business
functions (function1, function2, function2, function3) unlike bigger companies
� FAfunction
� Mafunction
� aHfunction
� aPfunction
� Mafunction
ICT implementation in SMB
SMBs opt for
solution based on
business function
priorities
10ICT in Manufacturing - INDIA 2011.PPT
SAMPLE
Cloud Computing is catching up with the on-premises …
sol1
sol3sol2
Cloud
Computing
Key Cloud Based Trends (1/2)
•Cloud Computing market growth is expected at a CAGR of
e1% from $e2 billion in 20-- to $e3 billion in 20-- globally
•In 20--, the largest segment of the cloud computing market,
sol4, accounts for e4% of the total market’s revenue
•Aspect1, Aspect2, and Aspect3 accounts for approximately
e5% of total sol5 market revenue
•The sol6 and sol7 markets currently hold a small share of the
cloud computing services market. However, it is expected to
grow moderately due to their flexibility and cost effectiveness
• sol9 means element1, instead of purchasing element2, outsource these element3 from element4
• sol10 involved delivering element5 and technology for computing, power, system as off premises on demand
services rather than dedicated as onsite resources
sol8
11ICT in Manufacturing - INDIA 2011.PPT
SAMPLE
Government Initiatives
India’s first ‘f1 Policy’, will soon be unveiled, which aims to increase the contribution of
manufacturing sector in India’s GDP to f2 percent by 20--11-XXXX-20--
Indian Government has implemented new Consolidated Foreign Direct Investment (FDI) policy
document which attracts investments & will lead to improvement of infrastructure10-XXX-20--
Establishment of National sector61 and Zone62 (ABBR63):
•A draft manufacturing policy, which aims to create f64 million jobs and increase the share of manufacturing received an in-principle approval
•The policy will encourage foreign investment and technologies, while reducing the compliance burden on industry.
•The government plans to earmark Rs f65 bn every year for the next f66 years to set up the first of
the f67 industrial cities along the city1-city2 zone69
10-XXX-20--
From the Union Budget 20-- - -- proposals, industry experts believe there is stability in the indirect
taxes which will lead to capacity building in the manufacturing sector in the coming years20--
Date Initiatives
12ICT in Manufacturing - INDIA 2011.PPT
SAMPLE
Manufacturing players in the domestic market (1/18)
Business Highlights
Company Snapshot: Player 1
Business HighlightsCorporate Information
• ddddHead Quarters a, India
Industry
Classificationb
Revenue (20--) c
No. of.
Employeesx
Key Contacts
Mr. X
aaa
Ms. Y
bbb
Mr. Z
ccc
Professional History
ABC
Professional History
DEF
Professional History
GHI
Other
xxx
Other
ddd
Other
hhh
13ICT in Manufacturing - INDIA 2011.PPT
SAMPLE
Case Study x
Case: aaaaaaaaa
SolutionRequirements Benefit
• a• c• b
Technology Used
XXXXXXX
ICT Vendor
aaaa bbb
Manufacturing Company
14ICT in Manufacturing - INDIA 2011.PPT
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Our other offerings in the IT Series:
•ICT Adoption in Education Sector in India 2011
•ICT in Retail in India 2011
•Netbook Market in India 2011
•E-Governance Market in India 2011
•Cloud Computing Market in India 2010
•VoIP Market in India 2009
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