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Emerging Countries and Manufacturing IT Solutions Shape the Automotive Industry Landscape Ninth ARC India Forum, Pune August, 2011. Rajabahadur V Arcot Kishore M Karandikar Vice President & GM ARC Advisory Group raja@arcweb.com. Agenda.
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Emerging Countries and Manufacturing IT Solutions Shape the Automotive Industry LandscapeNinth ARC India Forum, Pune August, 2011 Rajabahadur V Arcot Kishore M Karandikar Vice President & GM ARC Advisory Group raja@arcweb.com
Agenda • Automotive Industry Status in Emerging Countries including India • Global Automotive Industry Landscape • Global Automobile Sales Outlook India & Automotive • India & Automotive Industry - Trends • Manufacturing Industry Continues to Evolve • Invention Based & Basic-needs driven Manufacturing (Europe & NA) • Convergence of Information and Communication Technologies (Japan & Asian Tigers) • IT Enabled Manufacturing – IT Everywhere • Manufacturing Evolution • Emerging Countries and Automotive Industry • LEAP Manufacturing
Automotive Industry Status in Emerging Countries including India
GLOBAL AUTOMOTIVE INDUSTRY Landscape Source: Global Auto Report, Published by Scotia Bank Group
Global Automobile Sales Outlook Based on Global Auto Report, Scotia Bank Group
India & Automotive Industry – Present Landscape Globally Fifth Largest Bus and Truck Market by Volume Globally Second-largest Two-Wheeler Market Asia’s third-largest Private Vehicle market Emerging as Center of Excellence for Compact Cars Globally Fourth Largest Commercial Vehicle Market
India & Automotive Industry - Trend • Expected to contribute 10 percent of India’s GDP in the next 5-6 years • Emerging as an exporter of automobiles and auto components
Automobile Production Trend CAGR 13.3%
Automobile Export Trend CAGR 24.5%
Manufacturing Industry Continues to Evolve • Invention Based & Basic-needs driven Manufacturing (Europe & NA) • Higher-order wants driven Manufacturing and Manufacturing Deconstruction (Japan, Asian Tigers) • Factory of the Future / Smart Manufacturing - IT Enabled (Emerging Economies can leapfrog Manufacturing)
Invention Based & Basic-needs driven Manufacturing (Europe & NA) Focus: Produce, Meet Basic needs First PublicRailway Electric Bulb TranscontinentalRailway Steam Engine Airplane 1809 1904 1885-86 1870 1862 1825 1869 1879 1903 1769 Telephone Automobile ElectricTelegraph Four StokeEngine Triode • Invention based manufacturing • Basic-needs driven invention – mobility, communication • Started in Europe and NA
Convergence of Information and Communication Technologies (Japan & Asian Tigers) Invention NA & EuropeProduction Asia Radio Broadcasting Corporation of America Computer Television 1919 1946 1927 • Higher-order wants driven application inventions – entertainment, computing, analysis • Expanding applications – Convergence of Information & Telecommunication Technologies • Manufacturing deconstruction • Emergence of Asian Tigers Integrated Chips Vacuum Tubes / Triodes Transistors 1947 1961 1904
IT Enabled Manufacturing – IT Everywhere IT in Maintenance IT in Operations MES PLM IT in Design ARC’s CMM Model FA
Benefits of Information and Intelligence Enabled Smart Manufacturing • Become more agile and responsive • Reduce design-engineer-make cycle time • Reduce capital expenditure • Reduce operational expenses • Achieve internal and external collaboration • Achieve excellence in design, operations, and maintenance • Gain time-to-market advantages • Emerge as a center of automotive excellence and innovation • Examples: Instrumentation; Automotive
Emerging Countries and Automotive Industry • Right Chemistry Exists • Emerging Countries are Experiencing Economic Growth • Demand for Automobiles is Increasing • Automobile & Auto Component Industries are Expanding • Industry Ecosystems are Emerging and Companies are Becoming Global Sized • Technology is Available • Emerging Countries are well positioned to Leapfrog
Emerging Perspective Shifting Economic Power + Changing Demographics + Powerful New IT Capabilities + Business Compulsions = Emerging Countries and Manufacturing IT Solutions will Shape the Automotive Industry Landscape
LEAP Manufacturing Technology and Business Practices for World-Class Manufacturing Leading-edge • Innovative • Technology-forward • Mobile, Social, Cloud, Model-based, Virtual, PLM, MES, etc. • Collaborative, Integrated • Performance driven Efficient • Profitable • High Quality • Compliant • Safe & Effective • Local/Regional LEAPMfg Agile • Responsive • Collaborative, Networked, Pull-based, Interactive • Flexible, adaptive, changeable Progressive • Sustainable • Energy, Carbon, Social, Water, Waste, Closed Loop • Responsible Companies In Emerging Markets Can Jump To A Market Leadership Role
Recommendations • Leapfrog and take the path of LEAP Manufacturing • Invest in Technology Solutions
Thank You. For more information, contact the author at raja@arcweb.com or visit our web pages at www.arcweb.com