By Ramesh Kumar Jha, Vice President Greater India Services, Schneider Electric
The digital transformation of industries is revolutionising business operations with industrial services playing a pivotal role in driving this transformative process. As per data provided by Deloitte & Touche, the constituent stocks of the S&P 500 Index had an average lifespan of 32 years but this number has decreased to only 24 years in recent times. This decline can be attributed to the intensifying competition which is making it increasingly challenging for companies to thrive in an ever more saturated market. In order to stay afloat and succeed in their respective sectors, companies are recognising the critical importance of digitalisation.
With the emergence of Industry 4.0 technologies, Indian industries are harnessing the power of automation, the Internet of Things (IoT), cloud computing, and artificial intelligence (AI) to streamline processes and facilitate data-driven decision-making. The role of industrial services in the digital transformation of industries is highlighted by the shift from episodic to interactive data. Continuous tracking and analysis of assets and operational parameters through sensors and the IoT offer significant productivity improvements and revolutionize user experiences.
Products now act as conduits for interactive data, enriching functionalities and shaping innovative solutions. To leverage the potential of interactive data, firms are updating networks of data generators and recipients which are facilitated by sensor and IoT-enabled connectivity in digital ecosystems. Embracing this interactivity enables informed decision-making, predictive analysis, and tailored customer experiences which is driving success in the evolving landscape of digital transformation. Organisations must offer expertise, which is combined with innovative digital capabilities across the equipment and systems lifecycle.
The energy sector faces one of its most significant challenges which is about navigating the path of new emissions regulations and sustainability targets and slashing emissions by nearly 50% by 2050.
According to McKinsey’s research and extensive work with oil and gas companies, nearly 30 percent of these organisations have effectively and successfully scaled digital technologies to yield significant improvements. The use of predictive analytics enables them to anticipate maintenance needs, resulting in improved equipment reliability and reduced downtime. However, the road to successful digital scaling demands a strategic and holistic approach. It requires not just adopting digital tools but also integrating them seamlessly into the fabric of the organisation.
India is embracing digital transformation to bolster quality control in manufacturing. According to McKinsey’s report, the evolution of data and analytics, artificial intelligence (AI), and machine learning (ML) alongside the proliferation of technology vendors, has bestowed manufacturers with a vast array of options to revamp their operational processes significantly. Successfully implemented, these transformative solutions yield undeniable returns. it is increasingly commonplace to witness remarkable achievements such as a remarkable 30 to 50 percent reduction in machine downtime across various sectors.
Manufacturers have also noted impressive boosts in labor productivity between 15 to 30 percent and an 85 percent enhancement in forecasting accuracy. For instance, end-to-end service solutions can help deliver reliability along with predictive maintenance, thereby reducing the total cost of ownership.
The infrastructure sector has been confined to age-old methods and tried-and-tested practices. However, with the advent of modern technologies and their proven potential to revolutionise processes, the sector is experiencing a profound change in perspective. Construction companies in the infrastructure sector are employing digital tools for project management. Across the entire infrastructure sector, there is an incredible opportunity to elevate project outcomes significantly through the widespread application of a ‘digital by default’ approach. Improved project visualisation, advanced simulations, and predictive analytics empower stakeholders to foresee potential challenges and optimise designs for maximum efficiency.
Digital transformation in the industry has transcended from being an optional advantage to an absolute necessity for survival in the dynamic context of Industry 4.0. As we stand on the cusp of Industry 5.0, the imperative for companies to embrace digital skills and undergo transformation has become more compelling than ever. Failure to do so leaves businesses ill-equipped to cope with emerging demands and unable to effectively compete in the rapidly evolving landscape of their respective industries.
Looking ahead, as digital technologies continue to evolve, Indian industries will increasingly adopt advanced solutions like digital twins, augmented reality (AR), and blockchain to further enhance operational efficiency and facilitate informed decision-making. Government initiatives, such as ‘Digital India’ and ‘Make in India,’ are driving the widespread adoption of digital technologies across various sectors. Consequently, Indian businesses are experiencing heightened efficiency, cost savings, and improved quality in their operations as they embrace these transformative technologies.
