Insights from Panel Discussion at Entrepreneurship Development Cell, IIT Delhi, February 25, 2018
We are entering the era of Industry 4.0, of cyber-physical systems, where machines, humans and self-learning systems are getting connected. Industry 4.0 is powered by emerging technologies such as Artificial Intelligence, Robotics, IoT, Blockchain and AR/VR that provide many opportunities for Indian companies to leapfrog.
At a panel discussion at IIT Delhi, we discussed three sets of opportunities for Indian companies arising from Industry 4.0:
- Solve uniquely Indian problemsThere are many unique Indian problems that new technologies can solve. Some examples that were discussed:
- Solve for affordability and access for the bottom of the pyramid e.g., in education and healthcare
- Improve quality and productivity of Indian manufacturing through IoT and Robotics
- Improve efficiency and reduce corruption across government functions e.g., use of Blockchain for land records
- Solve for fuel efficiency using IoT
Key enabler for technology adoption at scale in India is infrastructure. In particular low cost smart devices and low-cost, hi-quality bandwidth.
- Create Global ProductsIndustry 4.0 technologies are disrupting many markets and industries. Nobody has all the answers to tackle the disruption and enterprises are looking for fresh ideas and solutions. In addition, there is a clear move towards Products and Platforms. This presents opportunities for Indian entrepreneurs to create IP and products leveraging these new technologies that will be globally relevant. However, it is easier said than done. Indian companies have struggled to replicate their global success on the services side to products. There are 5 mantras that entrepreneurs should follow to create globally successful products:
- Find real pain points to address. Greatest product ideas are born out of an intimate understanding of a pain point. Identify a pain point that you understand deeply and then obsess about it
- Focus on a niche. Resist temptation to go broad and focus on niche solutions. As an entrepreneur your best chance of being globally relevant in a crowded market is to solve a niche problem deeply
- Proximity to customers. Solutions have to be at the intersection of client needs and technology. A great product cannot be about technology alone. Be close to your customers so you can understand their needs deeply and architect solutions accordingly. In fact, best products are often co-created with customers
- Partnerships. Seek partnerships that can help in your Go To Market and/or complement your product
- Team. Ensure you have complimentary set of skills in your core team. The most important and difficult to find skill is often that of a Product Manager, an integrator who can connect customer needs and technology
- Strive for Technology LeadershipIn India over the past decades we have focused on Technology adoption not creation. New Technologies present an opportunity for Indian industry to turn the tide and strive for Technology leadership where new technologies are created here. Clearly the value creation opportunity is an order of magnitude higher through Technology leadership than adoption alone. However, this is easier said than done. There are at least three challenges that will need to be addressed:
- Shift from Software mindset. Focus in India has been on the Software (relatively easier to do!!). However, for Technology leadership we will need to get to the hardware and focus on core engineering (harder to do!!)
- National Vision and investment into Infrastructure. Technology leadership requires an investment into infrastructure that is not possible for any one company to make. It requires a national commitment and focus. China is doing that with massive investments into Artificial Intelligence with a very clear goal of being the world leader in that space. We need a similar debate and prioritisation in India
- Greater commitment to R&D by the large companies. Technology giants like Google, Apple, Facebook and Amazon (GAFA!!) are a big driver of technology creation in the US and are thus dominating globally. We have not seen similar technology leadership by any of the large Indian companies despite many of them dominating IT services globally for the past two decades. There is an urgent need for change in mindset of the large Indian companies and for them to invest significantly into R&D. Having them as anchors is very necessary for the Technology R&D ecosystem to flourish in India.
In summary, Industry 4.0 is a significant disruption that will create both opportunities and challenges. So far, Indian companies seem to be struggling to keep pace as seen by the declining growth rate of the Indian IT Services industry. However, the battle is not lost. We are still in early stages of Industry 4.0 and there are tremendous set of opportunities for Indian companies and entrepreneurs to leapfrog and create significant impact both to solve deeply Indian problems and for global leadership.
All the best!!
