Market Research Report : ICT Adoption in Manufacturing Sector India 2011


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Need for maintenance of global standards is stimulating ICT adoption in manufacturing sector, finds Netscribes

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Market Research Report : ICT Adoption in Manufacturing Sector India 2011

  1. 1. ICT Adoption in Manufacturing Sector - IndiaAugust 2011
  2. 2. Executive Summary 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% Market 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-- LE Drivers: Challenges: Drivers & Operational Improvement Identifying Right IT Solution & Lack of PriorityChallenges MP Significant Cost Reduction Global Competence Recognition Convincing about Financial Investment in IT Lack of Awareness About Benefits of IT SA Implementation 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 Trends 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 Major Domestic Players Major Foreign PlayersCompetition • Company 1 • Company a • Company 2 • Company b • Company 3 • Company c ICT Adoption in Manufacturing Sector - INDIA 2011.PPT 2
  3. 3. • 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 ICT Adoption in Manufacturing Sector - INDIA 2011.PPT 3
  4. 4. … of becoming high quality global manufacturing hubMarket 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 LE constituents of the index of industrial production (IIP), industry1 and industry2 recorded higher growth rates of h% and j% respectively during this period P• 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 SACore Manufacturing Sectors & Key PlayersM Company11, compnay12, company13, Company41, compnay42, company43, Sector11 Sector21 company14, company15 company 44 Company21, compnay22, company23, Company51, compnay52, company53, Sector12 Sector22 company24, company25 company54, company55 Company31, compnay32, company33, Company61, compnay62, company63, Sector13 Sector23 company34, company35 company64, company65 ICT Adoption in Manufacturing Sector - INDIA 2011.PPT 4
  5. 5. Drivers & Challenges – Summary Drivers Operational Improvement Significant Cost Reduction Operational improvement is a key driver for all Global Competence businesses whereas Cost Reduction is the essential driver for Small & Medium Businesses Government Initiatives (SMB, SME) Better Customer & Channel Relationship Challenges Identifying Right IT Solution & Lack of Priority Recognition For Enterprises, identifying the right solution is Convincing about Financial Investment the biggest challenge whereas for SMB/SME, in IT cost of IT Implementation remains a critical barrier Modification & Optimization of Resources & Prevalent IT Infrastructure Lack of Awareness About Benefits of IT Implementation ICT Adoption in Manufacturing Sector - INDIA 2011.PPT 5
  6. 6. Indian industries are embracing ICT to enhance theirgrowth & credibilityMarket Overview – ICT Market Size and Growth• ICT industry in India plays a major role in stimulating the country’s GDP, thereby contributing to the growth of Industry30 the overall Indian economy by a large extent Industry31 LE• Currently, the industry in India is valued at more than c1% USD x8 bn c2% Other P ICT industry accounts for x9% of the country’s GDP and provides employment to more than x10 mn people directly M and x11 mn indirectly Total IT Market: INR 852.63bn Per capita contribution of the industry in the country accounts A for USD x12 mn c3% S• 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 Components of ICT • product40 • product41 It requires extensive man power and space for its operations v1 • product42 which in turn raises the demand for demand1 and demand2 significantly • product43 The industry mainly the youth for employment thereby • product44 providing ample opportunity to about x14% of the entire v2 population in the country which in turn enhances the • product45 employment status of India PC shipment in the year 20-- was valued x15 mn • Product46 v3 • Product47 • product48 S/W – Software H/W - Hardware ICT in Manufacturing - INDIA 2011.PPT 6
  7. 7. ICT adoption occurs in multiple phases starting from basicsolutions to intermediate, high-level & finally advanced solutionsICT adoption trend in manufacturing companies SAMPLE Basic Adoption AAAAAA Intermediate Adoption BBBB High Level Adoption CCCCC Advanced Adoption DDDD • 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 ICT in Manufacturing - INDIA 2011.PPT 7
  8. 8. Focus shifting in India towards SMB segment as despite ofhaving lower industry value it has high growth opportunityValue-Opportunity trade-off in manufacturing companies of varied size LOW Value HIGH SAMPLE •X •Y •Z Small Office & Home Office Small & Medium Business Large Enterprise •A •B •C HIGH Opportunity LOW ICT in Manufacturing - INDIA 2011.PPT 8
  9. 9. SMB (Small and Medium Business)About SMB• Small and Medium Business (SMB) are privately owned and operated companies whose SMBs are small employee headcount or turnover is below certain limit (e.g. d1-d2 for business51 & d3-d4 for operations having business52) LE less manpower &• In India, SMB accounts for nearly d5% of the total sector54 output & shows higher growth rate capital P in comparison to large enterprises in the sector• The major advantage of the sector is its employment potential at low capital cost M• As per available statistics, the sector employs an estimated d6 million persons spread over d7 A million enterprises and the labour intensity in the MSE sector is estimated to be almost d8 times higher than the business55 SICT implementation in SMB• SMBs are restricted by capital & hence cannot opt for individual applications for all business SMBs opt for functions (function1, function2, function2, function3) unlike bigger companies solution based on business function FAfunction priorities Mafunction aHfunction aPfunction Mafunction ICT in Manufacturing - INDIA 2011.PPT 9
  10. 10. Cloud Computing is catching up with the on-premises …Key Cloud Based Trends (1/2)•Cloud Computing market growth is expected at a CAGR of sol1e1% from $e2 billion in 20-- to $e3 billion in 20-- globally LE•In 20--, the largest segment of the cloud computing market, Psol4, accounts for e4% of the total market’s revenue Cloud M•Aspect1, Aspect2, and Aspect3 accounts for approximately Computing Ae5% of total sol5 market revenue S•The sol6 and sol7 markets currently hold a small share of thecloud computing services market. However, it is expected togrow moderately due to their flexibility and cost effectiveness sol2 sol3 • sol9 means element1, instead of purchasing element2, outsource these element3 from element4 sol8 • sol10 involved delivering element5 and technology for computing, power, system as off premises on demand services rather than dedicated as onsite resources ICT in Manufacturing - INDIA 2011.PPT 10
  11. 11. Government Initiatives Date Initiatives India’s first ‘f1 Policy’, will soon be unveiled, which aims to increase the contribution of 11-XXXX-20-- manufacturing sector in India’s GDP to f2 percent by 20-- LE From the Union Budget 20-- - -- proposals, industry experts believe there is stability in the indirect 20-- P taxes which will lead to capacity building in the manufacturing sector in the coming years 10-XXX-20-- SAM 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 Indian Government has implemented new Consolidated Foreign Direct Investment (FDI) policy 10-XXX-20-- document which attracts investments & will lead to improvement of infrastructure ICT in Manufacturing - INDIA 2011.PPT 11
  12. 12. Manufacturing players in the domestic market (1/18)Company Snapshot: Player 1Corporate Information Business Highlights LE P • ddddHead Quarters a, IndiaIndustry M bClassification ARevenue (20--) cNo. of.EmployeesMr. X x Ms. Y Key Contacts S Mr. Zaaa bbb cccProfessional History Professional History Professional HistoryABC DEF GHIOther Other Otherxxx ddd hhh ICT in Manufacturing - INDIA 2011.PPT 12
  13. 13. Case Study x Manufacturing Company ICT Vendor aaaa bbb Case: aaaaaaaaa Requirements LE Solution Benefit P •a AM S •b •c Technology Used XXXXXXX ICT in Manufacturing - INDIA 2011.PPT 13
  14. 14. Thank you for the attentionThe ICT Adoption in Manufacturing Sector – India report is a part of Research on India’sInformation Technology Series. For more detailed information or customized researchrequirements please contact:Kalyan Banga Our other offerings in the IT Series:Phone: +91 033 4064 6215 •ICT Adoption in Education Sector in India 2011E-Mail: •ICT in Retail in India 2011 •Netbook Market in India 2011Gagan Uppal •E-Governance Market in India 2011Phone: +91 022 4098 7530 •Cloud Computing Market in India 2010E-Mail: •VoIP Market in India 2009Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quickinsights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries onAbout NetscribesNetscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business &corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base.Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives.Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd.or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and priorpermission is required for guidelines on reproduction. ICT in Manufacturing - INDIA 2011.PPT 14