Going digital being the priority for most of the top company officials, more than a quarter of the industrial firms think their exposure to digitization is high and expect it to rise to 65 per cent within the next five years, a recent survey said here on Thursday.
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“More than a quarter (27 per cent) of the industrial companies have rated their level of digitization as high, and this value is expected to rise to 65 per cent within the next five years in India. Globally, this number is expected to grow from 33 per cent to 72 per cent during this period,” the report, Industry 4.0: Building the Digital Enterprise, done by PricewaterhouseCoopers (PwC) said.
Industrial companies in India and Asia-Pacific have the advantage to leapfrog ahead of those in the developed economies given their greenfield starting positions.
As a result, they have fewer legacy issues pertaining to outdated systems, processes, technological capabilities, which need to be addressed, the report stated.
“For an emerging economy like ours with a very strong focus on the growth agenda, it is only natural that industrial products sector will leverage the technological breakthroughs for building its digital ecosystem. This will enable them to add significant value to their customers by knowing how the product is being used and will also drive efficiency improvements across the value chain,” said Sudipta Ghosh, Leader - Data and Analytics, PwC India.
According to the report the key challenges in front of the companies are many. Many of them lack of clear digital operations vision from the leadership (45 per cent), lack of skills in data analytics capabilities (53 per cent) and fostering a strong digital culture (41 per cent).
“Operational disruption from cyber security breaches is another top concern for Indian industrial companies. Overcoming these challenges will enable them to reach their potential and objectives of digitization by 2020,” it added.
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“The manufacturing industry today accepts that digitization is no longer a luxury for organizations, but a necessity to drive revenues, efficiency and profitability in the future. Progressive Indian industrial companies are willing to invest heavily in digitization technologies such as sensors or connectivity devices as well as software and applications such as manufacturing excellence systems,” said Bimal Tanna, Leader - Industrial Products, PwC India.