market research report : ict adoption in manufacturing sector india 2011

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


• 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


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








company 44

Sector22Company51, compnay52, company53, company54, company55


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


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


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


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


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


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


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


DEF


GHI

Other

xxx

Other

ddd

Other

hhh


SAMPLE

Case Study x

Case: aaaaaaaaa

SolutionRequirements Benefit

• a• c• b

Technology Used

XXXXXXX

ICT Vendor

aaaa bbb

Manufacturing Company


Thank you for the attention

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Our other offerings in the IT Series:

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