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India Lagging Far Behind China in IIoT Adoption

However, it is not just the manufacturing sector that IIoT could change

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The Chinese flag is seen near the Google sign at the Google china headquarters in Beijing, China. VOA

By Gokul Bhagabati

Internet of Things (IIoT) could be a game changer for India, but the country is lagging far behind China in its adoption, a top Accenture official has said.

According to the consultancy giant, IIoT refers to a universe of intelligent products, processes and services that communicate with each other and with people over the Internet and promises to be the most transformative industrial revolution yet for manufacturers.

While countries like Germany, France and China have made significant progress in terms of IIoT adoption, India has not yet moved much ahead in its IIoT journey, according to Saurabh Bhatnagar, Managing Director – Manufacturing, Accenture Strategy.

“In terms of IIoT adoption, in a scale of 10, if China would score 7, India’s would be about 3.5,” Bhatnagar told IANS, adding that according to an estimate, IIoT could be adding $14.2 trillion to the global economy by 2030.

“Indian manufacturers have been struggling to achieve globally competitive scale and productivity. While the industrial sector in India grew at a rate of six per cent annually since 2011 to more than $700 billion in 2016, the value addition per employee continued to be one of the lowest in the world, at only $6,000,” he added.

Having the right infrastructure which includes high-speed Internet connectivity and skilled workers to capture data and capability to analyse that data with Machine Learning is key to IIoT adoption, the benefits of which are many.

For example, IIoT can help predict machine breakdown and help businesses take informed decisions, while also increasing operational efficiency through automation and enhanced worker productivity.

“A connected factory can yield a 5-12.5 per cent cost reduction in operations optimisation, 10-40 per cent cost savings in predictive maintenance and 20- 50 per cent cost reduction in inventory optimisation,” Bhatnagar said.

US clothing brand Gap has apologised for selling T-shirts which it said showed an "incorrect map" of China.
Accurate Map of China. Pixabay

At the same time, increased efficiency and productivity threaten reductions in the rate of job creation. However, Bhatnagar believes that widespread deployment of IIoT might make some jobs redundant, while the overall economic growth brought about by its adoption would also create new jobs.

“IIoT is a combination of various intelligent technologies, and its adoption will help improve employee productivity and outcomes. In some cases, machine will automate tasks that humans have been doing, but in most instances, they will augment human capabilities,” he said.

“With machines taking over low value, repetitive tasks, some jobs will become redundant, but new jobs will also be created that leverage human skills. The overall economic growth will also create new jobs. It is crucial that people are skilled to realise these new opportunities,” Bhatnagar said, adding that there needs to be a significant shift in the way engineering education is imparted in the country.

While China also has a “conflict of interest” in terms of IIoT adoption because of its large population, the country is focusing on driving economic growth to create more jobs, he said.

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However, it is not just the manufacturing sector that IIoT could change.

“IoT could improve productivity and competitiveness of Indian businesses across sectors including manufacturing, finance, banking and media,” Bhatnagar said.

“There needs to be more awareness around IIoT. More emphasis needs to be on infrastructure. The speed at which organisations are embracing, embarking, absorbing and internalizing can be much faster. There is also the mindset hindrance for many organisations,” he added. (IANS)

Next Story

India PC Market Shrinks 8% in Q1, HP Sells Most

Dell Inc retained the second position with a 25.9 per cent market share with a YoY growth of 2.2 per cent

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HP unveils 65-inch gaming display with soundbar at CES 2019. Flickr

With a market share of 28.1 per cent in the first quarter of 2019, HP Inc maintained its leadership position in the Indian personal computing (PC) market, which shrunk for the third straight quarter, the International Data Corporation (IDC) said on Thursday.

The market witnessed a year-on-year (YoY) drop of 8.3 per cent with shipments reaching 2.15 million units in the first quarter of 2019, said the report.

Despite maintaining its leadership position in the market, HP Inc saw a 9.7 per cent YoY decline, mainly due to consumer segment that shrunk 21.3 per cent over the first quarter of last year.

Dell Inc retained the second position with a 25.9 per cent market share with a YoY growth of 2.2 per cent and a quarter-on-quarter (QoQ) growth of 26.7 per cent.

HP
HP. (IANS)

Lenovo remained at third position with a market share of 25.2 per cent in Q1 of 2019 in India traditional PC market, observing a 6.2 per cent YoY growth and a 29.2 per cent sequential growth.

The India PC market remained weak outside big commercial deals due to weak consumer demand, high inventory from previous quarters and supply issues for Intel chips, IDC said.

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The notebook category contributing 61.4 per cent of the India PC market shipments witnessed a 9.8 per cent YoY decline. Within notebooks, ultra-slim category, with a 25.3 per cent share of the market, grew 86.5 per cent.

“Spending towards ultra-slim notebooks is increasing due to factors like improved mobility due to thinness of the product and enhanced aesthetics,” Bharath Shenoy, Market Analyst, PCs, IDC India, said in a statement. (IANS)