IIoT for India's growth

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<AddIIoT contribution to India’s growth, Sep 2016 www.theiet.in/IoTPanel
IIoT contribution to India’s Growth
By Gnaneshwar Kambali

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Executive Summary
During the last decade, there has been a lot of enthusiasm and urgency in adopting, transforming and
leveraging technologies to improve the way we live, perform and communicate our contributions that
have impacts both in personal and professional lives. It is all because of human nature to find smart
ways to excel and be part of the change process.
During the last couple of years, one of the technologies that has got the attention of everyone around
the world is IoT (Internet of Things). Apart from the impact it made on day-to-day life, IoT did give us
the momentum and drive to conduct / offer / provide the services or businesses in cost effective ways.
As the Industry started witnessing and being part of the paradigm shift in doing business by using key
enablers of IoT technology which is majorly focused on consumer market, the manufacturing side also
started showing some traction to adopt IoT technology for bettering the outcomes and to be a part of
Industry 4.0 or ride the SMART Manufacturing wave sweeping across the globe. The abbreviation –
IIoT, which got coined by prefixing the fourth letter “I” to IoT to give focus on the manufacturing -
“Industrial Internet of Things”. It is to emphasize that the technology, best solutions and practices
termed and formulated are meant for improving Manufacturing Industry’s operation efficiency, asset
availability & performance, energy optimisation, customer satisfaction, etc. Also it strongly highlights
the fact that the cost competitive IIoT solutions (on-premises solutions), taking into consideration
available data source, on how the various infrastructure components can be converged to make the
best and effective use of those. Cloud based solutions, giving the option of pay as you use, can
enable manufacturing stakeholders to access and take decisions in real-time ON THE GO wherever
they are and whatever may be the time.
There are many surveys or reports being compiled and shared across the globe on IIoT’s potential
and CAGR as to what are being done in every developing nation to adopt & improve Industry’s
performance, what are the critical success factors, and how Technology or Solution Providers, OEMs
and SI are scaling up to tap huge business opportunities in the Manufacturing sector.
This white paper dwells upon some of the finer and crucial factors on IIoT adoption in India - is India
as a market ready for accepting IIoT, what is the market potential, what are the challenges / road
blocks, how DIGITAL INDIA & MAKE IN INDIA programs are propelling the emanation and adoption
of IIoT technology, along with some of the IIoT use cases to address and improve output, efficiency,
reduction in energy consumption & GHG.

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Target Audience
1. Industrial Manufacturing Companies, OEMs
2. IIoT Solution Providers, SIs, Consultants
3. Industrial Automation Solution & Product Companies
4. IIoT R&D & Start-up Companies
5. Software Application Development Companies, Cloud Service Providers
6. Universities & Academia, VC Firms, Government & Regulation Entities

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Table of Contents
1) Introduction - Change is inevitable, one must adopt sooner or later ..............................................5
2) IIoT – Changing business paradigm ...........................................................................................6
3) India’s readiness to participate in eco – system of IIoT ................................................................8
4) Indian Industry and what is expected..........................................................................................9
4.1) Manufacturing Industry (Consumer of IIoT Technology / Solution)...........................................10
4.2) OEM, Enterprise and System Integrator (Creator of IIoT Solution)...........................................11
5) How IIoT can impact on India’s growth .....................................................................................13
6) Conclusion Remarks...............................................................................................................15
7) References.............................................................................................................................15

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1) Introduction - Change is inevitable, one must adopt
sooner or later
The quote by Charles Darwin on “CHANGE” which all of us are aware, - it is not the strongest of the
species that survive, not the most intelligent, but the one most responsive to change.
Innovative solutions and technologies will continue to disrupt the market and will encourage /
influence business enterprises to transform, change or fine-tune the process of creation and
production of goods. While emphasis is going to be on continuously becoming SMARTER and
EFFICIENT to achieve prime objectives and KPIs, every enterprise and industry shouldn’t forget to
make use of advancement in technology to improve the way we live and contribute back to society /
mother earth. However, to create positive impact on the society, collaborative effort and commitment
are very much required to be put in by every player in the eco-system, be it a solution provider,
industry, government, policy maker, or academia. Best practices which are rendered by Technology
Companies as part of IIoT with Industrial Automation technologies are continually emerging. We
should be aware of the acceptance and understanding of terminologies, familiarity of the language by
the end users in the Manufacturing sector and how those key stakeholders at all the levels should be
convinced to pick up the optimum solution are some of the key factors for the acceptance and
adoption of IIoT technologies. Above all, to penetrate quickly, the IIoT technology or solution provider
should look at approaches to offer cost effective, customised / tailored IIoT solution (not the product or
the platform) along with focus on bringing down TCO to match the affordable budget of each sector
and segment of enterprises in the Manufacturing Sector.

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2) IIoT – Changing business paradigm
Disruption by Big Data Analytics along with Mobility and Cloud based solutions in Social Media,
Retail, Networking, Digital Marketing, Consumer, etc. led to improvements in doing business and
motivated many start-ups to get established and grow.
Riding on the industry growth fuelled by Mobile, Cloud and Big Data, the whole world witnessed
unprecedented and unexplored ways of doing and rendering businesses & services and which every
one of us is familiar with – Internet of Things (IoT). IoT is offering advanced mechanisms to connect
devices, systems, and services that is beyond M2M communications and covers a variety of
protocols, domains, and applications. Hence, it is not wrong and not to be considered as exaggerated
statement that there is no clear definition of what can or cannot be included under the umbrella of IoT.
As a subpart of IoT, focused majorly on the Manufacturing Industry, is the Industrial version of IoT
(IIoT). IIoT incorporates many of the advanced technologies from IoT with efficient ways for
aggregation of the sensor data, machine-to-machine (M2M) communication & automation
technologies and analytics that have existed for more than 4 decades. The key premise of IIoT is that
smart plants comprising of many equipment and machines, are better than humans at accurately,
consistently capturing, communicating, processing and analysing data. IIoT brings in the best
practices of Industrial Automation (OT - Operation Technology) and Information Technology (IT)
together and addresses effectively the gaps and services required by the end user and in a cost
effective manner. There are lots of innovative components from IT that can be cross-leveraged on
Industrial side and IIoT, giving the required platform for IT and OT technology companies to work

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seamlessly and address what they couldn’t address earlier. The real-time data can enable
companies to pinpoint inefficiencies and issues quicker and sooner than ever, saving time and money
by supporting SMART and CONNECTED efforts. In the manufacturing industry, IIoT has great
potential for improving many things and taking decisions in real-time, ON THE GO wherever and
whenever.
Application of IIoT Technology in Manufacturing to be looked at what the enterprise would like to
achieve - whether improvement of efficiency and effectiveness WITHIN THE FACTORY or OUTSIDE
THE FACTORY.
Some of the improvements from 2nd category – “Outside the factory” are highlighted below:
1. Customer interaction and improvement in satisfaction
2. JUST IN TIME Delivery of Raw material, Goods, etc…
3. Compliance and Audit
4. …
Most of the improvements listed above are being addressed by advanced IT and IoT solutions. Below
is the list of improvements which falls under 1st category – “Within the factory”:
1. Operation Excellence
2. Boost in Production and Quality (within the existing constraints)
3. Bring down overall production costs and costs across the value chain
4. Effective control on inventory and manage supply chain intelligently
5. Enhance Availability and Performance of each system, plant and asset
6. Optimized energy consumption
7. …
The focus of this white paper is on the improvements that are related to #1, #2, #5, and #6 mentioned
in “Within the factory” category. The key reason for picking up those are, even though for the last 50
years the industry being matured in terms of technology - DCS, PLC, SCADA, M2M, SMART Sensor,
etc., they continue to operate under constraints of resources, raw material, energy, water, etc. The
IIoT provides an efficient solution framework to leverage huge unprocessed and archived data to:
1. Enhance revenue and profit
2. Decrease cost of production
3. Improve quality and efficiency
Let me quickly summarise what constitutes IIoT solution stack and which blocks can be leveraged to
improve the above factors:
1. Sensors and Sensor network
2. Data Aggregation and Acquisition
3. Data Transmission

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4. Measurement, Monitoring and Controlling
5. Data Analytics
6. Application, Display and Reporting
In Manufacturing Industry, there is already huge unprocessed data (Time Series, at regular interval)
related to processes, production and machinery / equipment. Barring the application and visualisation
layers of IIoT solution stack, implementation of solutions on other layers requires deep domain
knowledge of OT, IT, M2M, convergence of IT & OT, and the gaps created by those technologies.
There are few key challenges which are being addressed in various forums / industry working groups
and the elaboration of those have been kept outside the purview of this whitepaper.
1. Safety – while it is understood that IIoT opens up the cost effective ways to monitor and
control systems / process sub plants / factories, it should be applied by weighing trade-offs
between cost and safety. Cyber security is one of the most important areas that both industry
and developers should keep in mind along with clear policy guidelines.
2. Data Security on-premises or cloud based solution - what kind of data to be shared on to
cloud / internet, should it be processed on edge and then the summary transmitted, whether
the data being shared is just for analysis or remote monitoring and controlling, are some
questions to be answered.
3. Data Convergence – while there are many technologies around for the past few decades, one
should be looking at the plug and play or cost components to address it.
4. Distributed vs. Centralised – this will decide TCO and also solution architecture.
In a nutshell, IIoT has opened up a plethora of opportunities and pushing the limits of improvements
further beyond one’s imagination and which may lead to an unsecured situation of critical applications
if proper care is not taken.
3) India’s readiness to participate in eco – system of IIoT
The combined effect of Internet, IT and Mobile telephony on India’s economy and society has started
to show a positive impact. Proliferation of them has led to affordability of gadgets and access to a
wealth of information pushing every Indian to realise what technology can do for them and help to
chase their dreams to prosper as never imagined before getting into million / billion dollars club.
Inception and deployment of technology at the right time combined with affordability and incremental
modeling of it is going to decide the future of that industry. In the past, many of us witnessed that it
always depends upon the right time, involvement / participation of stakeholders from consumption and

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creation side, and a conductive eco-system. Just to highlight, India wasn’t fully ready about a decade
back to reciprocate advancement in mobile technology and hence it took time for India to match with
other countries.
The second factor is appreciation and acceptance of the advancement in technology by the end user.
It is noteworthy to understand that because of the DIGITAL CONNECT initiative in India, what
happens and being discussed elsewhere across the globe can be read, viewed and applied. Hence,
there are no significant efforts needed to be put in to make consumers of IoT and IIoT technology in
India to understand the benefits that they can bring to the table. Also, this digital connectivity could be
a helping hand in uninterrupted communication requirements which will be one of the drivers for IoT.
The third success factor is the demand & supply, and whether India as consumer of technology can
contribute to advancement in technology to make it more cost competitive. During the last few years,
India has put in great efforts to come out of mere consumer state to become an active player to follow
the technology wave at right time and gotten into the mode of contributing 360 degrees (Contributor ->
Consumer -> Enhancer). There is great inspiration and buzz being created by the Government of
India to promote the starts-up and R&D, mandating them to come up with the need of the hour and
acceptable (not too many features are needed) solutions for the Indian Industry.
Now with more and more penetration of digital connect and very effective programs like - DIGITAL
INDIA and MAKE IN INDIA promoted by the Government of India, the IIoT business eco-system in
India is expanding rapidly and creating lots of business opportunities. Similarly, the above two
programmes of the Government of India will also be termed completely successful by Industry
stakeholders only when it complements the growth of IoT and IIoT. Hence, it is very important for
every stakeholder (mentioned in the target audience) to actively participate and make best utilisation
of the Government programmes and thereby directly or indirectly make those programmes as
stepping-stones for the IIoT business eco-system.
4) Indian Industry and what is expected
This section gives a glimpse of IIoT technology Consumer and Creator/ Provider’s views, expectations
& challenges and how the existing gaps can be reduced to speed-up India’s contribution to adoption /
consumption / promotion of IIoT technology based solutions.

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4.1) Manufacturing Industry (Consumer of IIoT Technology / Solution)
However much the advancement in technology, there will always be a thrust on how much more we
can improve efficiency and increase production (SMART MANUFACTURING). In this whitepaper the
key improvements which Indian Manufacturing companies are willing to look at for investing is
considered for further elaboration and the key ones are highlighted below:
1. Operation Excellence
2. Flexible manufacturing directly linked to customer demand
3. Boost in Production and Quality (within the existing constraints)
4. Enhance Availability and Performance of each system, asset and plant
The approach towards becoming SMART MANUFACTURING (the factors attributable to “Within the
Factory”) is a step by step process of having necessary
1. Industrial automation (Sensors / Transmitters, DAQ, DAC, Smart Field Controllers, PLC,
SCADA, DCS, ROBOTS, OPC Gateway etc.)
2. Integration with LIMS and other necessary quality analysis systems
3. Central dashboard for monitoring / reporting on converged platform (h/w and s/w)
4. Analysis & Prediction solutions
Out of the above, #1 and #2 are being addressed by the existing Industrial Automation and additional
COTS. To decide on how to proceed for #3 and #4, the critical questions to be answered are – how
much time to be spent by the personnel (dedicated or time shared) to analyse; find out what, when
and how to improve; what additional qualification / training is required to analyse; how much time to
be spared from the day to day activities; can they be consistent and effective in performing the
assigned analysis every day; are they capable to visualize the whole section or system which has
many controller loops and individual process parameters interacting with each other; can they
pinpoint what the influencing factors are; how much is the impact of each process parameter on end
production quantity, quality and overall production efficiency. Coupled with answers to the above
questions, manufacturing companies must analyse the current level of maturity / capability and the
time frame for the ROI expected before embarking on the journey of SMART MANUFACTURING by
leveraging IIoT technology (quick and easy to plug layered components for the data aggregation,
analysis and visualisation). In the process of picking up the best feasible IIoT solution for data
analysis one must pick up the cost effective process – Batch/ Offline or Real-time Analysis.
Whatever be the mode of process being selected by the manufacturing company for its data analysis,
the below are a few key points that need to be taken care of for reaping the maximum benefit:
1. Minimise or Avoid manual intervention of data handling, analysing and losing / overwriting it
2. Systematic approach in collecting and analysing data and then finally store the Ready to
Consume / Act insights for publishing to all stake holders

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3. Transition from “What to do / How to do / When to do” state to “ACT NOW”
4. Reduction in OPEX to retain the un-analysed stored data and get rid of ANALYSE LATER
syndrome
5. On The Go accessible Dashboard which abstracts the complexity and burden of analysis
being carried out in the backdrop by smart IIoT solution
While the above points are going to elevate the Manufacturing Companies from the traditional
manufacturing process, it influences them to strategise and act on next possible improvements based
upon customer / consumer feedback by leveraging advancement in IIoT technology. By improving the
factors related to “Within and Outside the Factory”, the whole manufacturing sector will go for a big
change towards customer driven manufacturing.
4.2) OEM, Enterprise and System Integrator (Creator of IIoT Solution)
During the many discussions with key stakeholders of manufacturing industry in India and across the
globe, many of us did come across the question of why the Predictive Maintenance is being
highlighted so prominently as the key enabler or offering of IIoT and IoT technologies. There are a lot
of areas, business cases and improvements, which Indian Manufacturing Companies are interested in
addressing by leveraging IIoT technology / solutions, and below are few important ones:
# Business Use Case Description and Advantages
1 OEE Dashboard On The Go accessible aggregated information to be viewed by
each stakeholders based upon role
(every industry)
2 Asset Tracking &
Monitoring
Geographically distributed asset monitoring with visual indication
reduces communication gap or delay
(steel and metal industry)
3 Energy Monitoring,
Analysis & Optimization
Helps to analyse based upon the trends, categorise idle /
working / non-working / breakdown state, optimise energy
consumption and analysis of wastage
(every industry)

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4 Operation Efficiency &
Root Cause Analysis
No manual intervention, eliminates dependency on manpower to
perform it, Real-time actionable insights
(every industry)
5 Predictive Maintenance
Analysis
No manual intervention, eliminates dependency on manpower to
perform it, Real-time actionable insights
(every industry)
6 Prescriptive and
Knowledge Management
Real-time actionable insights, Knowledge base for the R&D,
Operation and Maintenance team to refer to for further
improvements in process / product
(every industry)
7 Central Analysis Room Brings down investment on silo based analysis and provides a
structured approach to optimize CAPEX & OPEX
(every industry)
The second key point is for many of the IIoT technology companies to take care of communicating in
the language that can be understood and acceptable to personnel in the manufacturing industry.
Many a time an IIoT problem and solution not being articulated very well by operational level (usually
middle) management of the manufacturing company leads to flawed implementation or not being
implemented at all. It is always advised to spend enough time to understand the problems and then
offer well-articulated and feasible solutions. This approach will get wonderful business results.
The third key point is the working personnel in the manufacturing sector are not well equipped or
trained to access the data and transfer as a file to offline or batch analysis. Hence, if IIoT Technology
Company has cost effective Real-time analysis solution (either on-premises or cloud based), the key
stakeholders at the manufacturing side would willing to pay little extra for the hassle-free and easy to
maintain/ access solution.
The fourth point is the development of IIoT solutions with inclusive approach of having operation
personnel. By this approach, one can remove or minimize disconnect between what is required and
what is developed. Finally the success of any of IIoT solution is its ease to use (Usability factor).

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5) How IIoT can impact on India’s growth
Every global company who is doing business in India is well aware that there is intense competition to
deliver cost competitive solutions which should address the needs of Indian society. If the global
companies are able to crack and figure out the way to tap the huge market in India by leveraging
some of the latest ICT, IoT, M2M technologies and at the same time ride on the waves created by
MAKE IN INDIA, then it reflects on two aspects:
1. India, as a country, has emerged both as a Consumer and a Provider of the technology
solution which is in demand across the globe.
2. What is created in India by global companies is not that difficult to replicate or modify for other
developing countries and that can happen from India. In fact, many products (there are many
examples) developed for the cost sensitive market of India has been easily deployed in the
West.
While other sectors are leveraging IoT to expand their business outcomes in cost effective ways,
Manufacturing Industry is also not far behind to adopt and make use of IoT technology based
solutions. But there are few points to ponder & answered by IIoT technology solution providers before
succeeding in convincing Manufacturing Industry’s stakeholders – solution cost, ROI, simple way of
articulation of the technology, speaking to them in their own language and how much they want to
hear. By having those answered or kept in mind during interaction with a Manufacturing Company, the
IIoT Technology Solution provider will surely succeed in getting an entry, crack the business deal, be
the catalyst and help customer to realise the business improvements for which they signed up to use
the IIoT solution.
The below few paragraphs cover the impact level of IIoT on India’s business (both domestic and
export):
 Pharmaceutical Industry – There is huge CAPEX & OPEX that go towards maintaining
clean room facilities and the energy being consumed. The IIoT will bring down both cost
factors, help to improve the bottom-line and bring down impact of GHG. Apart from those,
there is significant amount of time and energy being put-in by entire staff towards audit and
compliance checking. By using the IIoT technology real-time analysis, records and report
can be shared online and thereby sail through the Compliance checking & Audit process
very smoothly and quickly. Adherence to compliance effortlessly means that Pharma
enterprises can use those best practices as a tool for boosting their domestic and export
business
 Petrochemical Industry – In most of the petrochemical plants the challenges are how much
they can improve production, quality, yield, and also bring down generation of undesired

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products. IIoT solution provide real-time analysis at the minutest levels with a dissected view
of the parameters affecting and influencing the outcome of chemical processes. In simple
terms Real-time Data Analytics of IIoT technology will give them a view of what GC or HPLC
can provide in the lab, and helps them to take decisions in real-time before the quality can
vary and impact on the working status of plant. By using the IIoT technology real-time
analysis, records and reports can be shared online with environment or pollution checking or
monitoring agency. It is similar in approach to the income tax returns being filed by any
enterprise for the scrutiny of the tax authorities in India.
 Automotive and Mechanical Industry – In most of the Mechanical industries, the challenges
are analysis and prediction of health of tool / die, which has significant impact on the cost of
production, QC and life of tool. By using IIoT solutions mechanical industries can work
towards solving and improving their revenue and also transform into Design to Production
oriented/flexible manufacturing company.
 Power Generation Industry – In most of the power generation companies, the critical
challenge is to avoid or minimize excess burning of coal and thereby reduce pollution impact
(GHG emission). Real-time data analytics solution of IIoT technology can get the data from
any part of the world and analyse what the causes are and how to improve heat transfer from
flue gasses before releasing into the atmosphere. This is again a classic use case of IIoT
which can be blessed and promoted by Government of India to reduce the impact of GHG
and by use of IIoT technology GOI can ensure compliance of it.
 Industrial Automation and Consumer Industry – There are a lot of OEMs in Industrial
Automation wanting to leverage their business network with process and manufacturing
companies, and provide value to their end customer business. IIoT solution as part of
Industrial Automation is perfect package of assurance to enhance business values.
 FMCG Industry – In most of the FMCG companies, the critical challenge is to avoid or
minimize GIVE AWAYs. The analysis of GIVE AWAYs is very complex task and requires
thorough understanding of the entire process. By using IIoT solution FMCG industry can work
towards to address the GIVE AWAY issue and improve their revenue / margins.

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6) Conclusion Remarks
The effect of change what IIoT technology can bring in to Indian economy and society are many,
some of those are listed below:
1. Spreading of best & proven practices to further reduce OPEX
2. Success of digital connectivity leading to enhancement of intellectual development
3. Conducive eco-system (IIoT technology developer/ enhancer / consumer)
4. Cost effective / disruptive innovative approach to expand & contribute back to society / mother
earth
5. GHG & Energy consumption reduction
6. Natural resources optimization
7. Improvement in effectiveness / efficiency
8. Above all being and living SMART
There are certain changes required in policies and regulations for the fast adoption of IIoT, both from
consumption and provider of technology. A critical role of the academia in terms of motivating budding
engineers to work on most realistic projects which can be looked at by enterprise to commercialise
those.
Adopting and Contributing to the advancement in IIoT and associated M2M technology shall not be a
concern to the eco-system in India. Instead the model of implementation is critical as in India people
are used to a culture of JUGAD approach or else look at COST EFFECTIVENESS. So the success of
India becoming active participant in advancement of IIoT technology will depends on understanding of
change brought in by IIoT for the Manufacturing Industry and culture of picking up / adopting it.
7) References
1. Industry 4.0 figure - https://en.wikipedia.org/wiki/Industry_4.0

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About the author
He has worked in various capacities at some of the fortune 50 global companies which include
Symphony Teleca, Toshiba Software and ABB.
He spearheads the research and development of a very unique real-time Anomaly Detection,
Prediction and Prescription IIoT Solution and is very passionate in guiding and nurturing his team and
budding engineers to come up with disruptive, innovative and cost effective solutions / products.
In his spare time, he likes to go on long drives and listening to classical & fusion music.
Gnaneshwar Kambali works as the General Manager at Information &
Communications Technology Systems Company of Hitachi India.
He is responsible for IIoT Business Strategy & Solutions development and
under his leadership the business group is expanding very rapidly.
He has over 24 years’ experience in hardware and software engineering,
operations and business development across Digital Consumer and IIoT /
M2M domains.

IIoT for India's growth

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