Digitize to Compete: Why Indian SMEs Must Embrace IoT to Compete Globally
- Chinmay
- April 2, 2025
- India, Industrial IoT, Internet of Things
- AIInManufacturing, DataDriven, DataDrivenDecisions, DigitalTransformation, DigitizeIndia, GlobalCompetitiveness, IndianSMEs, Industry40, IoTAdda, IoTInIndustry, IoTInManufacturing, IoTSolutions, MadeSmarter, ManufacturingDigitization, ManufacturingIndia, ManufacturingInnovation, NexusPlatform, SmartFactory, SmartManufacturing, SMEIndia
- 0 Comments
Stephen Graham is no stranger to manufacturing transformation. With over 25 years in the technology industry, Stephen played a pivotal role in reshaping Hexagon’s Manufacturing Intelligence Division. From leading the Metrology and Production Software Business Unit to co-founding Nexus, Hexagon’s groundbreaking cloud platform for digital engineering and manufacturing, Stephen has seen firsthand how digital innovation can unlock untapped potential across the factory floor. In this article, he dives into the persistent gap in manufacturing digitization—and how businesses can finally cross it, one strategic step at a time.
The Digital Disconnect in Manufacturing
In an era dominated by AI-driven insights, real-time simulations, and intelligent automation, many manufacturers—particularly small and mid-sized ones—remain stuck in outdated, paper-based workflows.
As of 2024, nearly 70% of manufacturers still rely on manual data collection, limiting their agility and competitiveness in a data-first economy.
So why the lag?
- Cultural inertia
- Financial constraints
- Complex operational realities
These barriers have kept manufacturing rooted in legacy systems that struggle to scale, collaborate, or attract today’s digital-native workforce.
The Cost of Staying Manual
Paper-based systems don’t just slow things down—they cost money, talent, and opportunities. Here’s why:
- Fragmented Workflows: Quality checks, maintenance logs, shift reports—all exist in silos. Without integration, these critical processes operate in isolation, creating redundancies and delays.
- No Unified Source of Truth: Disparate tools and disconnected teams often mean duplicated efforts, conflicting data, and confusion. Decision-making becomes reactive instead of proactive.
- Missed Market Opportunities: Modern customers demand speed, customization, and flawless quality. Legacy operations can’t keep up, creating a competitive disadvantage in fast-paced markets.
- Workforce Woes: Digital-native workers are frustrated by analog systems. With 75% of manufacturing executives citing talent retention as their biggest challenge, outdated workflows only widen the skills gap.
- Lower Product Quality and Customer Satisfaction: Manual processes increase the risk of errors, rework, and inconsistencies. This not only hits bottom lines but erodes customer trust and brand reputation.
The Hidden Cost Trap
Hesitating to digitize often feels like the safer financial move—but it’s a false economy. Manual inefficiencies bleed resources, slow down product launches, and complicate cross-functional collaboration. And as senior workers retire, manufacturers risk losing not just knowledge but also the ability to train and retain modern talent.
A Practical Roadmap: Smart Steps Toward Digitization
Contrary to popular belief, digital transformation doesn’t require ripping out existing infrastructure. Here’s how manufacturers can start small and scale smart:
Go Paperless with Real-Time Collaboration
Replacing paper logs with digital forms improves both efficiency and environmental sustainability. Cloud-based tools ensure everyone is working from the same real-time data—whether on the shop floor or in the boardroom.
Break Down Data Silos
Tools like Nexus help unify workflows by integrating legacy systems into a centralized platform. This enables seamless communication across departments without expensive infrastructure overhauls.
Digitize Existing Machines
SMBs don’t need brand-new equipment. Retrofitting with IoT sensors enables data collection, predictive maintenance, and process monitoring—making legacy machines smart.
Standardize with Automated Workflows
Apps like Metrology Mentor help automate quality checks and ensure repeatable processes. This increases precision while reducing the dependency on highly specialized labor.
Empower the Workforce
Digital tools can simplify complex operations. New employees can quickly get up to speed, reducing training time and improving engagement.
The Future: Incremental, Sustainable Innovation
Digitization is not a one-time project—it’s a journey. The most successful manufacturers take phased, cost-effective steps by:
- Leveraging existing infrastructure
- Eliminating data silos
- Embracing cloud collaboration
- Applying AI to derive value from existing data
With the right mindset and tools, even the most traditional manufacturers can unlock smarter, faster, and more resilient operations.
Final Thought: Data is the New Factory Floor
When connected and analyzed effectively, manufacturing data becomes a strategic asset. Platforms like Nexus aren’t just software—they’re enablers of digital culture, competitive advantage, and long-term resilience.
The future belongs to manufacturers who are bold enough to digitize—not by replacing what they have, but by upgrading what already works.
