Resilience, Sustainability, and Innovation: Paving the Way for India’s Success
Date:February 29, 2024
Date:February 29, 2024
India has recently surpassed the UK and has secured its position as the fifth-largest economy in the world. And there’s no stopping India’s growth, as the country has been clocking an impressive GDP growth of 6% in 2022.
It’s not just a coincidence that Indian enterprises have played a crucial role in driving this growth. It’s time for us to set our sights high and aim to become a $5 trillion economy soon and eventually the third-largest economy by 2027. While this may sound ambitious, it’s achievable with some innovative shifts in how businesses operate, innovate and collaborate.
But here’s the thing, we can’t just focus on growth alone. We also need to prioritise protecting our environment and work towards sustainability. It’s not an either/or scenario, folks. As Henry Paulson, Former United States Secretary of the Treasury, once said, “Economic growth and environmental protection are not at odds. They’re opposite sides of the same coin if you’re looking at longer-term prosperity.” And that’s why, today, we’re privileged to have with us Ramesh Ramaswamy, Head of Sales, South East Asia, Bosch Software and Digital Solutions.
Together, let’s explore the key drivers, challenges, and opportunities that can enable Indian enterprises to unlock the next phase of resilient and sustainable growth.
Question: Thanks for joining us today! We are curious to learn more about what resilient and sustainable businesses mean in India. Can you break it down for us in simple terms?
Answer: Thank you for having me! Let me answer your question from two perspectives: resilience and sustainability.
Let’s discuss resilience first. For enterprises, resilience is being able to withstand and recover from unexpected challenges or disruptions in their business operations. This is achieved by focusing on key aspects like operational efficiency, capacity, and yield, as well as ensuring on-time delivery of products or services.
Now let’s dig into the second part of the question – sustainability. It’s safe to say that growth without sustainability will just not cut it in India. With a growing population and rapid urbanization, we’re exerting unprecedented pressure on our already scarce resources. Enterprises cannot afford to ignore sustainability in the long run, as it becomes crucial for their continued success.
Question: How can enterprises build resilience? Are there specific strategies or technologies that can be employed to achieve this goal?
Answer: Building resilience in enterprises requires embracing various strategies and technologies. One effective approach is the adoption of enterprise systems for different enterprise functions: Sales, Manufacturing, Supply Chain, Procurement, Operations.
By leveraging Industry 4.0 technologies like Industrial and Machine Connectivity, Data and Analytics, AI, Automation, and Cloud-based solutions, businesses can undergo transformative manufacturing processes. These tools enable increased efficiency, waste reduction, resource optimization, and significant cost savings.
For instance, Bosch’s solutions have successfully enhanced supply chain efficiencies across numerous warehouses and manufacturing plants globally. Through the implementation of these technologies, manual forecasting efforts have been reduced by 72%, production efficiencies have improved by 20%, and savings of nearly 25 million Euros have been achieved. By leveraging these cutting-edge technologies, enterprises can enhance their operational capabilities and resilience in the face of challenges.
Question: You spoke about manufacturing transformation earlier. How do new age technologies that you mentioned: IIoT, AI, machine learning, cloud – boost India’s efforts to establish itself as a manufacturing hub? And what are some specific examples of Bosch customers in India?
Answer: It’s exciting to see the manufacturing industry in India embracing automation and digitization at a rapid pace! By implementing process-oriented manufacturing and interconnected IT systems, Indian manufacturers are poised to significantly improve their efficiency and productivity.
One notable example is Bosch’s Remaining Useful Life (RUL) solution, which predicts maintenance needs for machinery and equipment. In sectors like automotive and aerospace, the RUL approach, enabled by Industry 4.0 technologies, accurately monitors equipment health. This prevents breakdowns, reduces downtime and improves safety. By leveraging data-driven analytics and predictive maintenance, companies can save 20-25% in operating costs and 40-60% in capital expenditures.
For instance, a major offshore oil and gas operator refined its predictive maintenance approach by analyzing 30 years of platform operations data. This data-driven approach resulted in an average 20% reduction in downtime.
Another Bosch partner that faced challenges with high grinding tool consumption costs. By implementing the solution to extend the RUL (Remaining Useful Life) of the asset, the partner transitioned to condition-based dressing, leading to a 20% reduction in yearly grinding tool costs and a 10% boost in productivity through reduced dressing cycles.
These examples highlight how advanced technologies are revolutionising manufacturing processes in India.
Question: You spoke in detail about the private sector. In the public sector too, has there been a focus on transformation initiatives to make them more customer or citizen-friendly? Could you share any examples of how Bosch has contributed to this in India?
Answer: Absolutely. Bosch considers the public sector a significant priority. We have undertaken various transformation initiatives in the utility sector, including smart metering projects with A Govt. of India owned Energy Service Company in Andaman and Rajasthan. We have also worked with organizations like A state owned power transmission corporation, enabling ERP transformation through SAP implementation. Additionally, we are collaborating with a city government body in a leading southern state of India to transform public elevators, making them more sustainable and implementing monitoring systems.
Question: Could you sum up the whole idea of resilient enterprises, future-proofing, and Industry 4.0 innovations with an example? Can you provide insights into what Bosch is doing in this space?
Answer: Bosch envisions creating agile, resilient, and sustainable manufacturing operations, known as “factories of the future.” Through pilot projects, we have achieved remarkable results. For example, by increasing process efficiency by 10% and reducing stock by 30%, Bosch has maximized production capacity and generated annual savings of up to 5 million Euros in certain production setups. We have also established Intelligent Plant Networks, connecting multiple plants and thousands of machines, resulting in an annual production output of over 26 million units. These initiatives showcase our commitment to implementing Industry 4.0 best practices and preparing enterprises for the future.
Question: As you spoke in the beginning, environmental sustainability goes hand in hand with growth. What are some key strategies and initiatives that businesses in India are undertaking to promote sustainability and address environmental challenges in their operations?
Answer: Businesses in India are actively adopting key strategies and initiatives to promote sustainability and tackle environmental challenges in their operations. One such example is the implementation of Bosch DEEPSights, a comprehensive digital suite designed for energy conservation and sustainability. DEEPSights enables businesses to optimize energy and utilities consumption, accelerating their carbon neutrality goals.
The suite offers over 60 pre-built key performance indicators (KPIs) specifically tailored for energy-intensive production and utility assets. It also provides preconfigured asset models and templates for deeper insights into energy usage. DEEPSights monitors and analyzes various aspects such as utilities, process machines, power sources, power distribution, and complex assets.
An Indian conglomerate in the coffee business has adopted DEEPSights and focused on optimizing high-energy assets and processes using a three-module approach. The results have been impressive, with savings of more than $500K per year and an improvement of 12%-15% over the baseline.
Furthermore, Bosch has successfully reduced carbon footprint across 14 of its plants in India through the implementation of DEEPSights. These efforts have resulted in saving over 8000 tons of CO2 per year and more than 9500 MWh of energy annually.
These examples demonstrate how businesses in India are proactively embracing sustainable practices and leveraging digital solutions to reduce their environmental impact while driving operational efficiency and cost savings.
Final thoughts
Indian enterprises are on the cusp of embarking on a journey toward resilient and green growth. Digital transformation is set to make industries future ready. With just the right push, organizations can be propelled into a higher growth trajectory and ultimately towards a more promising future.
