What is an industry? Definition and meaning

  1. The manufacturing or technically productive enterprises in a particular field, country, region, or economy viewed collectively, or one of these individually. A single industry is often named after its principal product; for example, the auto industry.
  2. Industry is the production of goods or related services within an economy. The major source of revenue of a group or company is the indicator of its relevant industry. When a large group has multiple sources of revenue generation, it is considered to be working in different industries.Industry classification· ‎Outline of industry · ‎Information industry · ‎Chemical industry

The Making of Digital India

Like many things else, there are two sides to the technology story, especially in the Indian context. Information Technology or IT has become a major contributor to the GDP growth in India, largely driven by the IT services industry. Today, India is a force to reckon with in the IT/ITeS domain on a global scale, powering some of the biggest companies on the planet. And yet, in spite of revolutionizing the IT Services business, there has been little change wrought by IT back home. Adoption of technology, especially in the government domain (which has a mass rural interface) has been rather muted and slow in the uptake. For years, Indians across the spectrum read stories about the magic of IT, and yet were untouched by it.

But all that just might change, as the Indian government under the leadership of Prime Minister Narendra Modi has launched one of the biggest digitization programs, on a scale that has not been heard of before. In August 2014, the BJP government launched Digital India, a comprehensive program that aims to change the lop-sided scale of IT adoption in the country. The program essentially hinges on the core idea of laying a digital network on which services will be delivered in a transparent and timely manner. The four core areas of the program are:

  • Rural Broadband for All
  • Universal Mobile Access
  • Wi-Fi in Varsities
  • Public Wi-Fi Hotspots


 How is India becoming digital?

This was the question that eight technology experts addressed on the first day of EmTech India 2017—an emerging technology conference organized by Mint and MIT Technology Review.

  1. Chandrasekhar, president of software industry group Nasscom, said while the journey to digitization has begun, it is a matter of accelerating the pace at which it is happening.

“There is a World Bank report which says that a 10% increase in broadband penetration (in India) can lead to a 1.4% increase in GDP (gross domestic product), making Internet important for enhancing the growth of the economy.”

However, this won’t be possible without government participation. “Regulation is not a driving force for growth, but it can be a roadblock. So, government plays a critical role for creating appropriate policy framework and provide infrastructure and enable a secure and safe environment for digital transactions to take place,” he said.

So far, innovation has been for ‘India 1’—the first 100 million Indians—said Rajan Anandan, vice-president India and south-east Asia at Google Inc. “These are consumers who have high personal disposable income, they are well connected and well educated. Way forward, we will see problems being solved for ‘India 2’ and ‘India 3’—the next 200 million to 600 million Indians,” Anandan said.

He explained, “the next wave will be of great companies that are must-have solutions. For instance, healthcare challenges cannot be solved by an app. These companies are going to be full-stack that will include hardware and software. They will require new kinds of technical skills and deep domain expertise, who will require different kinds of capital in larger quantum’s and which is patient.”

In India, Google has so far made 120 railway stations Internet-enabled, through a partnership with Indian Railway Catering and Tourism Corp. (IRCTC). Anandan said Google registers about 15,000 people daily who are using Internet for the first time through this medium.

In two to three years, about 600 million Indians will access internet through broadband, Anandan said.

The government has launched a National Digital Literacy Mission (NDLM) that has penetrated rural areas, Chandrasekhar said. “Under the initiative, 8.2 million people have already been trained by 2016, surpassing the target of NDLM training 5.2 million by 2018,” he added.

“By 2015, 2.7 billion people were live on Internet; we saw internet use increase 60 times, largely from Asia Pacific. Market capitalization of consumer internet companies rose by 150X and innovation investments shot up 6x,” said Boston Consulting Group’s Marc Schuuring (partner and managing director, Amsterdam) and Rajiv Gupta (partner and director, New Delhi) in a presentation.

“Come 2017, GDP growth is flat, internet growth is down by 40%, population growth (rate is down) by 50%, smart phones growth is -65%, but internet user growth in India is at 40%,” they added.

This trend is a confirmation that mobile has become the first source of accessing Internet in India, skipping computers or laptops.

BCG forecasts technology will make a deep dive into artificial intelligence: customer support service chat bots, advanced forecasting, talent acquisition and AI-enabled psychometric profiling.

Face book sees over one billion user generated posts every day, over 100 million hours of video consumed and over two billion photos shared, said Umang Bedi, the company’s managing director, India and south Asia. The company claims to have the highest personalized newsfeed for any user owing to its robust artificial intelligence and machine learning technology.

But innovation is not limited to the likes of Face book Inc, Google Inc, Apple Inc. or Microsoft Corp. Tata Sons Ltd presented a series of technology-led solutions the group is working on.

“We have newly launched Tata Insights and Quant’s (built on Big Data analytics, currently for internal use), Tata Digital Health (technology to connect patient with doctors and create healthcare based solutions) and Tata Cliq (the group’s foray into e-commerce). Those are business incubation being carried out from the group and we’re careful moving into the future and creating the future as we speak.” said Gopichand Katragadda, group technology and innovation officer, Tata Sons.

DIGITISATION IN INDUSTRY SECTOR IN India to grow to 65 % in next five years
Related: Digitisation in India
  • 53% of the industrial companies in India are using data analytics and more than 90% expect data to have a significant impact on their decision-making in five years
  • Only 17% of the respondents in India rated their maturity in data analytics as advanced while the majority (62%) rated it as medium
  • 39% of the companies plan to invest more than 8% of their annual revenues in digital programmes in the next five years

Mumbai: Digital is now a priority for most CEOs of industrial companies in India. Industrial leaders are digitizing essential functions within their internal vertical operations processes and are focused on driving both revenue growth and operational efficiencies.

According to PwC’s Industry 4.0: Building the Digital Enterprise report, more than a quarter (27%) of the industrial companies in this survey have rated their level of digitisation as high, and this value is expected to rise to 65% within the next five years in India. Globally this number is expected to grow from 33% to 72% during this period.

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, etc., which need to be addressed.

In order for industrial companies to leverage the full value of Industry 4.0, they need to overcome key challenges. These include lack of a clear digital operations vision from the leadership (45%), lack of skills in data analytics capabilities (53%) and fostering a strong digital culture (41%). 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 digitisation by 2020.

Sudipta Ghosh, Leader – Data and Analytics, PwC India said, “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.”

Bimal Tanna, Leader – Industrial Products, PwC India said, “The manufacturing industry today accepts that digitisation 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 digitisation technologies such as sensors or connectivity devices as well as software and applications such as manufacturing excellence systems. Investing sooner and spreading out investments over time will enable companies to avoid huge capital investments later on.”

As per the report, at the end of this transformation process, successful industrial companies will become true digital enterprises, with physical products at the core, augmented by digital interfaces and data-based, innovative services. These digital enterprises will subsequently work together with customers and suppliers in industrial digital ecosystems. Furthermore, these developments will fundamentally change individual companies as well as transform market dynamics across a whole range of Industry 4.0 is driven by the following:

Digitization and integration of vertical and horizontal value chains
Industry 4.0 digitizes and integrates processes vertically across the entire organization—from product development and purchasing to manufacturing, logistics and service. All data about operations, processes, process efficiency and quality management, as well as operations planning, are available in real time, supported by augmented reality and optimized in an integrated network. Horizontal integration stretches beyond the internal operations from suppliers to customers and all key value chain partners. It includes technologies from track and trace devices to real-time integrated planning.

Digitisation of product and service offerings
Digitisation of products includes the expansion of existing products, for example, by smart sensors or communication devices combined with data analytics, as well as the creation of new digitised products which focus on complete integrated solutions. By integrating new methods of data collection and analysis, industrial companies are able to generate data on product use and refine products to meet the increasing needs of end customers.

Digital business models and customer access
beyond providing digitally enhanced products, leading industrial companies expand their offering by providing disruptive digital solutions such as complete, data-driven services and integrated platform solutions. Disruptive digital business models are often focused on generating additional digital revenues and optimizing customer interaction and access. Digital products and services are often part of serving customers with a complete solution in distinct digital ecosystem industries.


It was apparent at the CeMAT fair in Germany in the fall how actively Industry 4.0 is discussed internationally. Its benefits are seen as highly significant and a lot of investments are being made in it. Industry 4.0 is a vision on how manufacturing in the future will be more customer-oriented, automated, flexible and faster. The intelligence of the systems manages automation and people digitally. I am very concerned on how little manufacturing digitization or Industry 4.0 is discussed in Finland.

The expectations from Industry 4.0 are really high: different studies repeatedly talk about ‘quantum leaps’ (Here you can review one study from a Finnish perspective). The studies often discuss 30 % cost savings. Lean ware has experience on how Lean ware  MES at different sites has eliminated, 25 % of unnecessary work, increased flow by 100 %, reduced scrap by 20 % and improved throughput by 30 %. Manufacturing digitization is not hype, as it is generating excellent results already today.

Digitization does not mean eliminating printouts from manufacturing. A weak process is not improved by using a tablet instead a sheet of paper. Industry 4.0 and digitization allow building new, much more efficient processes. Therefore, Industry 4.0 applies to all of the processes in a company: sales – purchasing – logistics – different manufacturing phases.

Personally, I divide Industry 4.0 into two parts. The first, the ‘practical part’ is already here and the technologies are well-known and already in use. Good examples include the Agco Power engine plant in Linnavuori and certain ABB units. Manufacturing is managed digitally in these instances and batch sizes are one or very small, manufacturing transparency and the ability to react is excellent. Instead of several systems, the process generates traceability and process data using a single MES while performing other functions.  Automation is integrated as a seamless part of manufacturing. People and automation work effectively side-by-side. The other part of Industry 4.0 could be called the ‘hype’. This is associated with technologies that are not yet sufficiently cost-effective or tested (e.g. self-organizing manufacturing equipment or hyper-flexible automated storage units). The lesson is that there is no need to wait for Industry 4.0. It’s already here.

What is stopping us Finns? According to studies and my personal experience, we are hindered by lack of either expertise or vision. One must have the courage to create the digitization roadmap. According to my experience, I would estimate that only 10 % of companies have clear goals on developing manufacturing via digital means. The other 90 % have manufacturing problems that they are seeking to resolve. The first group engages in persistent and systematic development work. They take the first, controlled step by designing an intact data architecture to support digitization. This result in several important things starting to occur for the future: the master data starts to improve and become more rich, credible data is received from manufacturing for analysis and the first accomplishments in the arena of real-time operations are recognized.

Another factor preventing adoption is culture. Very many factories operate the way they do, because ‘ERP works that way’. When you want to move toward the Industry 4.0 vision, manufacturing has to envision streamlined ways of manufacturing products. The rigid features of ERP can no longer hinder progress. The Industry 4.0 vision often requires MES and WMS software to integrate manufacturing with material automation, for example.

Where should one start manufacturing digitization? There isn’t actually a single right way of deciding where to start, but usually the starting point is either digitizing the work queues and instructions or material management. Lean ware has very good experiences from both starting points. Starting with work queues is justified, for example, by short phase times, customized mass-production, and quality problems in manufacturing. Starting with material logistics may be justified due to a large number of SKUs, moving to picking for manufacturing, material automation and problems with material sourcing.

Studies indicate a 30 % increase in efficiency, speed, quality and flexibility. We would gladly come see what Industry 4.0 could mean for your company and what you should use as your starting point.

Future of Indian IT is digitization

Digitization is changing the way clients are thinking about their businesses

The accelerated pace of innovation, brought about by rapid technological development, was one of the key areas of discussion at the recently concluded World Economic Forum in Davos. It was widely acknowledged that technological disruption is changing market landscape and business models across the globe. In a world that is becoming more and more technology-intensive, that is hardly surprising.

In India, the information technology (IT) industry has had a phenomenal run. The industry went past the $100 billion mark in 2012 and is expected to treble to more than $300 billion by 2020, according to Nasscom estimates. The role of IT in business is shifting from that of an enabler to a strategic partner. The explosion of data is making it necessary for businesses to proactively adopt technology in order to differentiate themselves, and the digital wave is turning out to be a disruptor across industry verticals.

For the IT industry, digitization is changing the way clients are thinking about their businesses and how they can increase their competitiveness for future success. They are now looking at the IT industry to partner them in driving business transformation and to advise them on leveraging new technologies to meet unique business challenges. IT has transcended business functions and is engaging with not only CIOs (chief information officers) and CTOs (chief technology officers), but also CMOs (chief marketing officers) and CFOs (chief financial officers).

Digitization is driving greater innovation, helping improve service levels as well as outcomes. In healthcare, for example, patient information recorded on smart devices and stored on the cloud is helping doctors monitor patients’ status remotely and improve effectiveness of critical care. Telemedicine is fast gaining acceptance in serving economically disadvantaged populations.

In the area of car insurance, the “connected car” is allowing insurers to track people’s driving habits and routes to customize premium payments and claims. Life and medical insurance companies are also tracking individual health and activity via wearable devices (such as wristbands) embedded with electronics that record physical movements, pulse rates and sleep cycles. In banking, a combination of mobility and biometrics (collected through programmes such as Aadhaar) is enabling branchless banking and leading to greater financial inclusion.

The disruptive nature of digitization, coupled with a strong domestic demand for technology initiatives that help improve operational efficiency and effectiveness at optimal costs, has already led to successful start-ups and innovative solutions that are ready to be scaled further. Retail, healthcare, telecom and banking sectors in India have seen new customers engage with them for the first time via non-traditional channels. This will bring sustained growth to the Indian IT industry. The solutions developed here are finding takers in international markets as well.

We need to capitalize on these advantages and take them to the next level. Faster adoption of coming trends, such as the Internet of Things (IOT), can help bolster our position as an innovation hub on the world map. IOT is about connecting all electronic devices to the Internet to enable remote connections and machine-to-machine interactions. Its implications are immense and it can potentially change the way technology products and services are positioned. But it will require new support systems.

The Indian government is taking a keen interest in facilitating the implementation of the new IPV6 form of Internet addresses, a more sophisticated and secure network for IP (Internet Protocol) addresses. Efforts are also being made through initiatives such as the National Skills Council to ensure that academia is equipping fresh graduates with industry-relevant skills so that there is adequate supply of appropriately skilled resources for future opportunities.

What all of this also means to the IT industry is that more than ever, we must rethink our value proposition and transform the way we engage with our clients. In India, we have had the advantage of having leapfrogged certain stages on the technology adoption curve. Our sound technical skills have allowed us to move up the value chain and secure our place among the top in the global technology revolution.

In order to sustain this momentum, we need to recognize that our markets present ample opportunities. Our large mobile device user base and Internet access via newer 3G (third-generation) and 4G (fourth-generation) technologies open up strong domestic opportunity for IT-driven solutions. In addressing challenges that local markets face, we are developing solutions that are affordable as well as innovative.

All this will help the Indian IT industry further reinforce its reputation of being a value-driven player. Most technology breakthroughs may have traveled from the West to the East in the past, but the future is about India becoming an innovation leader.

Indian IT industry eyes digitization, automation for growth in 2017

Having shifted gears from its focus on 'enterprise services' to 'enterprising solutions' in 2015, Indian IT industry is betting big on digitisation and automation to maintain its growth momentum in the New Year. 

The $140-billion industry will also look for a helping hand from the entrepreneurial zeal of startups as it seeks to maintain its dominant position in the global market in 2017. 

"Future growth will come from a combination of higher value services, increasingly non-linear play and further extension of the sector's cost proposition," industry body Nasscom's Senior Vice President (Events, Research and Communication) Sangeeta Gupta said. 

Digitisation, Internet of Things, agile entrepreneurial ecosystem and improving business environment will continue to dominate the industry in 2016, 

What are the digital industries of tomorrow?

There is widespread recognition that the role of digital technology has shifted from being a driver of marginal efficiency to being an enabler of fundamental innovation and disruption.

Take the healthcare industry, for example, which historically has been one of the few sectors that is not particularly consumer-centric. When sick, one often has to settle for appointments that are neither imminent nor convenient and deal with long waiting times at the doctor’s office while surrounded by other ill patients. The introduction of digital healthcare services, which place the patient firmly at the heart of their activities, will be the biggest single factor in transforming healthcare over the next decade. In fact, few industries have the potential to be changed so profoundly by digital technology.

The two big shifts in this space include point of care (for instance, moving care closer to home) and disruptions to the level of care (such as the move from high-cost, specialized labour to self-care). The home will become an important location of care and virtual care will broaden access to healthcare in rural areas, especially in emerging economies. This will result in healthcare systems that will focus less on building beds and more on developing services to provide improved access to care at a lower cost.

With around $7.5 trillion spent globally each year on health, the rewards are likely to be substantial for the healthcare industry as it successfully creates transformational digital services on a wider scale.

True innovation often stems from smaller, nimbler, non-traditional players who use advances in computational technologies and wide proliferation of data to fill key technology gaps in healthcare. Health start-ups like Cast light, Healthcare and Stride health, for example, have been able to develop cloud and analytics-based solutions to drive greater price realization, enable greater patient health insights and help patients take better control of their healthcare. Health Tap, the Uber or Airbnb of the healthcare industry, uses an interactive app to deliver real-time remote care by providing virtual care solutions on a patient’s Smartphone. Via its virtual platform, Health Tap connects over 64,000 doctors with patients globally to offer on-demand patient treatment services through its app, 24 hours a day, seven days a week.

Healthcare is only one example of a sector that is witnessing fundamental transformation. With the introduction of autonomous vehicles and the connected traveler steering the future of the industry, digitalization will drive more innovation in automotive in the next 20 years than there has been in the last 100. This is a phenomenon not only taking place in the West. In emerging markets, access to affordable transportation is one of the most important factors in lifting citizens out of poverty. Integrated multi-modal transportation networks will provide lower travel costs while greatly expanding transportation options. This has the potential to make inclusive access to affordable transportation a reality, while also positively impacting the environment.

Most other sectors are equally impacted by digitalization, and this will happen on multiple levels. It creates new consumption patterns through trends like the sharing economy and hyper-personalization. New production and delivery capabilities will allow organizations to harness digital technologies to find more efficient ways to deliver products and services, while 3D printing and crowd sourcing offer new ways to think of manufacturing and logistics processes.

The ability to capture and interpret data more efficiently and accurately than ever before, for applications such as predictive modeling and asset optimization, will drive businesses increasingly towards data-centric business models. Digitalization will also require new skills and capabilities in the workforce. As such, organizations will need to understand how to identify, capture and retain these skills.

The World Economic Forum launched its Digital Transformation of Industries to address the opportunities and risks of digitalization in a cross-industry and multistage holder setting. It constitutes an ongoing initiative that serves as the focal point for new opportunities and themes arising from latest developments and trends from the digitization of business and society. The digital transformation is one of the most fundamental drivers of transformation ever and at the same time a unique opportunity to shape our future.

The Digitization mega trend

By the year 2020, an entire generation, Generation C (for “connected”), will have grown up in a primarily digital world. Computers, the Internet, mobile phones, testing, and social networking— all are second nature to members of this group. And their familiarity with technology, reliance on mobile communications, and desire to remain in contact with large networks of family members, friends, and business contacts will transform how we work and how we consume.

The phenomenon of digitization is reaching an inflection point. The effects of an increasingly digitized world are now reaching into every corner of our lives because three forces are powerfully reinforcing one another:

  • Consumer pull:Consumers, and particularly Generation C, are already fully adapted to the digital environment. They naturally expect to be always connected, are willing to share personal data, and are more likely to trust referrals from their closest friends than well-known brands.


  • Technology push:Digital technology continues to expand its influence. The infrastructure backbone of the digital world is bringing affordable broadband to billions of consumers. In parallel, low-cost connected devices are being deployed in every industry, and cloud computing, and the vast information-processing machinery it requires, is developing quickly.


  • Economic benefits:The economic benefits to be captured through digitization are real. A wave of capital has poured into the new digitization technologies and companies, and the public markets reward early movers with unprecedented valuations


Greater productivity in industry thanks to digitalization

 Technologies and products for the industry from the comprehensive electrification, automation and digitalization portfolio

  • End-to-end automation for the manufacturing industry ("Digital Enterprise")
  • "Effortless Communication" simplifies administration of large machine and plant networks
  • Totally Integrated Power: an integrated approach for a future-oriented power supply

Digitalization has developed into a decisive lever for growth in practically every sector of industry. Because digitalization is the central key to greater productivity, efficiency and flexibility, it forms the focus of the Siemens presentation at the 2015 Hannover Messe. Speaking at the press conference prior to the fair, CEO of the Digital Factory Division Anton S. Huber said: "True gains in efficiency can only be achieved today by optimizing and networking systems and processes along the entire product and production life cycle. Digitalization opens up whole new scope for producing companies to develop and manufacture products and solutions quickly and efficiently. Anyone who consistently leverages these opportunities will benefit from a decisive competitive edge". Over an exhibition area of 3,500 square meters, the Siemens booth D35 in Hall 9 will feature a wide range of solutions and products from its group-wide growth fields of electrification, automation and digitalization under the banner "On the way to Industry 4.0 – Driving the Digital Enterprise". As well as the integration of renewable energies into the energy system, a variety of industrial solutions such as Totally Integrated Automation (TIA), Integrated Drive Systems (IDS), Industry Software and plant data services will all be featured in the Siemens presentation. Also located within the booth will be the "Digitalization Forum", where Siemens will be presenting concrete examples of digital technologies in application in the manufacturing and process industry as well as machine building.


Sustainable solutions for the process industry

 Siemens is also breaking new ground in the process industry. "Current market trends are moving in the direction of modularization, digital mapping of production steps and communication between the individual machines in the plant," said Peter Herweck, CEO of the Process Industries and Drives Division. "With our portfolio for the process industry, we offer sustainable solutions from design and engineering to maintenance and modernization." At the stand's "Digitalization Forum," a hydraulic circuit demonstrates digital integration of a component in the existing plant. Planning and engineering with the software solution Comos in conjunction with the Simatic PCS 7 process control system enable data from engineering and automation to be pooled. Comos Walk inside visualizes the integration realistically in 3D.

A key step toward the digital plant is simplified administration in industrial networks. Siemens is presenting a current project on this topic at the Hannover Messe: "Effortless Communication." Assignment of addresses from engineering is relocated to the automation devices. As a result, devices can automatically assign themselves unique addresses without the need for a central instance such as an address server. Moreover, the system simplifies the use of remote services and increases their security. The results from the project might be used to build and run future production networks.


Future-oriented, cost-effective power supply

 In order to master the growing complexity of energy systems resulting from greater integration of renewable, these systems have to become more agile and smarter in the coming years. That means industrial power grids will also become more digital, in other words, be equipped with more means of measurement, automation, control and regulation. As part of this digitalization, industrial enterprises face new challenges when it comes to increasing their plants' efficiency, ensuring supply security and protecting increasingly complex plants and systems against overloading or short-circuits by means of state-of-the-art concepts. That requires intelligent hardware and software products such as monitoring systems and measurement equipment: End-to-end energy management at the campus is needed. Increasing local power generation, including at their own plants, means that the way industrial companies interact with power suppliers is changing. This calls for new planning and energy management concepts for grids and plants in order to ensure a robust, cost-optimized power supply. "With Totally Integrated Power (TIP), we offer an extensive package for a future-oriented, cost-effective power supply with intelligent and digital solutions from planning to operation," says Ralf Christian, CEO of the Energy Management Division. Siemens has bundled its power distribution portfolio in TIP and specifically offers industrial enterprises end-to-end solutions that enable energy systems to be planned, controlled, protected and optimized cost-effectively. They comprise software and hardware products, systems and solutions for all voltage ranges – from high-voltage power supply to the low-voltage consumer – which can be integrated in industrial automation technology thanks to intelligent interfaces. As part of its protection concept, Siemens is also presenting in Hanover an enhanced version of the communication-capable compact circuit breaker from the 3VA series for low-voltage power distribution. Compact 3VA circuit breakers are the heart of electric power distribution and ensure fault-tolerant, highly available production processes. Extensive data is also available to engineering and can be integrated in all common planning and project management tools.

MUKESH KUMAR, CHAIRMAN, IT SUB COMMITTEE ( BIA ) ,06.12.2017 E-mail Id : This email address is being protected from spambots. You need JavaScript enabled to view it., Mobile No. 9431074202



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