Companies must adopt Industry 4.0
Mar 7th 2018, 9:52 am
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Companies must adopt Industry 4.0
Industry 4.0, also termed the fourth industrial revolution, has four dominant themes cutting across the value chain. (IE)
Even as the government aims to increase the manufacturing sector’s contribution to 25% of GDP by 2025 from the existing 17%, the progress in the last two years has belied expectations. The manufacturing sector’s contribution has remained in the 16% range in recent years, near its lowest in the last decade. This is despite the government’s focus on Make in India, Digital India and other policy initiatives. An analysis by McKinsey India shows that India ranks lowest in wage to productivity comparison among its Asian peers. With lowest average daily wage of $5.90 against $34 for China and $37 for Malaysia, the average daily wage to output is around 4.1 compared with 9.0 for Philippines, 7.1 for China and 6.1 for Malaysia.
Industry 4.0, also termed the fourth industrial revolution, has four dominant themes cutting across the value chain. First, it looks at increasing productivity through advanced analytics that enables a shift from detection to prediction and then prevention of faults. Second, it focuses on increasing connectivity for both machine-to-machine and machine-to-products through IoT. Third, it focuses on increasing capacity within organisations through robotics and automation, like virtual & augmented reality and industrial automation. Fourth, it focuses on increasing capability and customer/employee experience by digitising the various business processes.
Even as the government aims to increase the manufacturing sector’s contribution to 25% of GDP by 2025 from the existing 17%, the progress in the last two years has belied expectations. The manufacturing sector’s contribution has remained in the 16% range in recent years, near its lowest in the last decade. This is despite the government’s focus on Make in India, Digital India and other policy initiatives. An analysis by McKinsey India shows that India ranks lowest in wage to productivity comparison among its Asian peers. With lowest average daily wage of $5.90 against $34 for China and $37 for Malaysia, the average daily wage to output is around 4.1 compared with 9.0 for Philippines, 7.1 for China and 6.1 for Malaysia.
Industry 4.0, also termed the fourth industrial revolution, has four dominant themes cutting across the value chain. First, it looks at increasing productivity through advanced analytics that enables a shift from detection to prediction and then prevention of faults. Second, it focuses on increasing connectivity for both machine-to-machine and machine-to-products through IoT. Third, it focuses on increasing capacity within organisations through robotics and automation, like virtual & augmented reality and industrial automation. Fourth, it focuses on increasing capability and customer/employee experience by digitising the various business processes.
