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Internet

of Things:
An Indian
context
Digital Consulting

August 2016

KPMG.com/in

Table of contents

Page 03
An industry in
transition:
Setting the
context

Page 05
The
Internet of
Things: A
definition

Page 07
IoT and the
business value
of increased
connectedness

Page 09
Business value
of hyperconnectivity

2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

Page 11
Integrated
value across
the entire
network

Page 13
IoT use
cases in
manufacturing

Page 15
Is India ready?

Page 17
Way forward
for Indian
manufacturing
enterprises

2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

03 Internet of Things: An Indian context

An industry
in transition:
Setting the
context

New emerging technologies such as the Internet of Things


(IoT), mobility, social, analytics, cloud, Robotic Process
Automation (RPA), advanced robotics, autonomous or semiautonomous systems, 3D printing, Artificial Intelligence
(AI), advanced materials, etc. have ushered in a new era of
innovation and change for the manufacturing industry. These
technologies have created a new wave of digital revolution
for the manufacturing industry, termed as Manufacturing 4.0.
Business leaders (outside of the IT organisation) have started
to evaluate the effect of these emerging technology trends
on their business and operating models.
Exhibit 1 Manufacturing 4.0 powered by
emerging technology trends

Source: H. Kagermann, W. Wahlster, and J. Helbig, Deutschlands Zukunft als


Produktionsstandort sichern. Umsetzungsempfehlungen fr das Zukunftsprojekt Industrie
4.0. Abschlussbericht des Arbeitskreises Industrie 4.0., acatech - Deutsche Akademie der
Technikwissenschaften, DFKI und Deutsche Post, 2013

2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

03 Internet of Things: An Indian context 04

For a traditional manufacturing enterprise looking at


innovating its business models or transforming its core
operations, the importance of the internet in shaping
its corporate strategy cannot be overlooked. Due to the
emergence of IoT, the terms connected and
smart are increasingly used for products, factories,
supply chains, customers, suppliers and Research and
Development (R&D). In a future which is expected to
be a hyperconnected era of businesses powered by
the increased connectivity between things, people,
processes and is driven by data science, IoT could form
an important pillar in the corporate growth strategy,
especially for manufacturing enterprises looking at
new sources of revenue or operations transformation.
It also requires corporations to ponder over the
following questions What is IoT? What is powering
this connected, smart new world? How will connected,
smart products (for e.g. a car) disrupt existing industry
business models as well as require a completely different
operating model to design, produce and sell the product?
What should a manufacturing enterprise potentially do

to capture new opportunities or address the disruption


caused by IoT?
This paper focusses on the Internet of Things (IoT) and
strives to answer seven key questions surrounding it. The
questions are as under:
1. What is IoT?
2. What is the business value of IoT?
3. What is the relevance of IoT to manufacturing?
4. What are the use cases for IoT in manufacturing?
5. How prepared are Indian enterprises which adopt as
well as sell IoT?
6. How does an enterprise prepare itself for accelerating
transformation through IoT adoption?
7. What is the role of the government and suppliers in
accelerating IoT adoption in India?

2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

05 Internet of Things: An Indian context

Before we define IoT, it is important to understand the


difference between the words internet and web, as these
terms are often used interchangeably.
The internet is a global physical layer or a system of
interconnected networks made up of switches, routers
and other equipment whose primary function is to transfer
information in the form of data, voice and video from
one node to another in a reliable, quick and secure manner.
The World Wide Web (WWW), is an application layer
operating on top of the internet whose primary role is to
provide an interface, making the information flow across
the internet usable and productive.
The WWW is currently in its sixth phase of evolution. The
first phase was a research phase when the web was used
primarily for research purposes and called the Advanced
Research Projects Agency Network (ARPANET). The
second phase was when the web was used as a catalogue
by companies to share information with regards to their
products and services over the internet. The third phase

was when the web moved away from static catalogue


based information to enabling transactions in which
companies could buy and sell products and services
over the internet. This was the dot-com era where
some of the top e-commerce companies emerged. The
fourth phase of the web was one which was social and
immersive, dominated by social networking. This phase
was characterised by a proliferation of video traffic over the
internet. The fifth phase of the web was the re-introduction
of marketplaces, which were an extension of the third
phase and this phase enabled the creation of new business
models for e.g. marketplaces and exchanges like the top
ecommerce organisations.
The sixth phase of the web today is shifting to
smartphones, and leading to a rise of an entirely new class
of applications on mobile devices such as mobile wallets,
cab hailing, etc.

2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

Internet of Things: An Indian context 06

The internet on another hand has been on a steady


development path and IoT is truly amongst the first few
big evolutions of the internet. Three key developments
in the internet are powering the transition of the
manufacturing industry from a set of closed proprietary
silo systems to a new open architecture, where
intelligence is distributed and actions can be taken
across the manufacturing ecosystem (involving a set of
manufacturing plants), based on a standardised secure
network and across interfaces
Ubiquitous computing intelligence in things at the
edge i.e. fog computing
Ubiquitous use of Internet Protocol (IP) convergence
of proprietary protocols

The Internet
of Things: A
definition

Ubiquitous connectivity radio (802.11n/a/g, ISA100.11a, WirelessHART, LoRA, ZigBee, Starfish),


cellular (GSM, CDMA, 4G, WiMAX) and fixed (industrial
ethernet).
IoT is a leap into the future as it creates a potential
for engineering a whole new set of business models
that are sensory and predictive in nature. The internet
is expected to become increasingly sensory due to
IoT (e.g. sensing temperature, pressures, vibrations,
moisture, stress, etc.) and increase its expanse by
connecting previously unconnected devices to the
internet. For example, connecting all the supplier
machines and transportation vehicles via a shared
IoT platform, an automotive Original Equipment
Manufacturer (OEM) can create an entirely new model
for inbound traceability of parts and components,
leading to greater predictability within their inbound
supply chain.

2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

07 Internet of Things: An Indian context

IoT and the


business
value of
increased
connectedness

By connecting more machines (systems beyond enterprise


boundaries), objects (transportation vehicles) and people, a
manufacturing enterprise can unlock new opportunities by
leveraging data science to identify hidden trends or patterns.
Eventually, this could lead to information automisation
creating new possibilities where machines can communicate
with machines and people can collaborate between
themselves in newer ways.
The business value for a manufacturing enterprise is typically
directly proportional to the square number of connected
machines, things and people to the system. Hence, in
the context of manufacturing, the systemic value of the
increased connectedness of things, people and data to the
internet called information automisation increases the
intrinsic business value of the adoption of IoT.
Exhibit 2 KPMG Indias view on the business effect of
information automisation as on July 2016

In order to understand the business value of IoT due to the


increased number of devices and people connected to the
internet, our research applies the concept in the context of a
mining environment. At this stage, we introduce information
automisation from the pit to a central mine command centre
(Case study 1). We then strive to extend the business value
across a series of mines and introduce the concept of pit to
boardroom. (Case study 2).

2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

03 Internet of Things: An Indian context 04


08

2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

09 Internet of Things: An Indian context

Exhibit 3 KPMG in Indias analysis July2016 based on experience gained from conducting multiple client
engagements

2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

Internet of Things: An Indian context 10

Case study 1: Illustration of hyperconnected


operations in an underground mine
Hyperconnectivity i.e. connecting machines/things/
people to the internet could result in corporations
creating and executing distinctive and innovative models
by leveraging new forms of digital engineering. This is
enhanced due to real time connectedness of business
resources across the value chain (people and machines)
and the customers. For example, within an underground
mine, increased connectivity of the mining equipment
(low profile dump trucks, load haul dumper, drilling
machines etc.) and objects on people (e.g. Radiofrequency identification (RFID) on cap lamps) to the
internet and their interactions (machine to machine,
machine to people and people to people) with each other
provides real time insights (e.g. equipments condition
and location along with location of the mining staff) and
enables faster decision-making (for e.g. man-machine
allocation or maintenance). The data from things (for
instance tyre pressure, fuel, equipment operating
modes, etc.) is analysed to establish predictability into
the planning and the decision making process across
mine operations (such as enabling better servicing
and allocation of mining equipment, etc.). Connecting
the data to people and increased people to people
connections leads to building a more efficient and safer
mine workforce and transformation of the underlying
processes (for e.g. asset maintenance, people safety,
etc.). The greater predictability and accuracy in business
processes by connecting real time decisions (e.g.
integrated command and control mine control rooms)
back to devices, objects and people inside the mine at the
right time leads to transformation of business processes
(for e.g. short interval production control, reliability centric
maintenance operations, etc.). The business impact of
IoT in a single mine can lead to more than 85 per cent
predictability around equipment availability, increased
efficiency and productivity of mine equipment (fuel costs,
number of trips, load per trip, etc.). The increased safety
and productivity of mine operators eventually impacts
the ultimate Key Performance Indicators (KPIs) such as
production increase and reduced cash cost per tonne.

Business
value of
hyperconnectivity

2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

11 Internet of Things: An Indian context

Integrated
value across
the entire
network

1. Smart things (e.g. autonomous trucks) within an


underground mine (over 100 machines and 1000
employees with RFID on cap lamps) communicate data
parameters (over 10 per equipment or a thing) leveraging
same network technology as the internet i.e. internet
protocols.
2. Near real time data from things (approximately 11,000
parameters collected per shift, about 33,000 per day)
serves as a catalyst for better understanding of complex
mining processes (e.g. maintenance, machine allocation,
production control, safety, etc.) and allows for faster
adaptation i.e. smart operations.
3. Smart things can be remotely controlled at a site level
through an integrated mine command and control room,
thereby increasing the overall mine efficiency i.e. smart
mine operations e.g. improvement in asset availability and
utilisation, better worker safety, energy efficiency, near
real time production monitoring, etc.
4. Optimisation across a network of mines can lead to
enterprise-wide benefits e.g. the value of equipment
condition data across a network of mines (100 equipments
in a single mine versus 100 x equipments across x mines
can significantly improve the equipment maintenance
costs and maintenance practices through commercial
contracting with OEMs and contractors).
5. By establishing a digital cockpit (like a real time
dashboard showing a visual representations of an
organisations key KPIs) across a network of mines, at
the CEO level-based on information automisation, can
lead to the better mine planning, faster time to market,
sustainability, customer relationship management and
people safety.

2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

03 Internet of Things: An Indian context 12

Exhibit 4: KPMG in Indias research and analysis, value of information automisation across a network of mines

2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

13 Internet of Things: An Indian context

There are six areas and an estimated 40 use cases for IoT
in manufacturing. The relevance of these use cases for a
manufacturing enterprise depends on a number of factors,
which are addressed in a forthcoming section. The six high
impact areas where IoT has high significance and can add
value to a manufacturing enterprise are:
I. Connected products and new business models based on
sensor enabled products

Innovative customer experiences


-- Real time, micro targeted, location and context aware
customer offerings e.g. smart shopping, smart vending
machines, etc.
-- Omni-channel customer experience e.g. virtual
automotive experience, smart ATMs, etc.

III. Smart intelligent assets and operations

-- Adaptive product decisions based on predictive analytics


applied to customer behaviour e.g. provisioning
Maintenance, Repair and Overhaul (MRO) for industrial
equipment

IV. Smart supply chains

Smart intelligent assets and operations

V. Health, safety and environmental compliances

-- Enterprise wide asset management e.g. asset tracking,


real time condition monitoring, predictive asset
maintenance, Overall Equipment Effectiveness (OEE),
spares management.

II. Innovative customer experiences

VI. Integrated command and control operations.


Connected products and new business models based on
sensor-enabled products
-- New business models
-- Utility models based on the usage or life of the product
e.g. tyres, car sharing
-- Shared models as against ownership e.g. heavy
equipment, farm equipment

-- Energy efficiency improvement e.g. energy profiling,


energy cost management
-- Automatic process and operations event monitoring and
alarm notifications e.g. across manufacturing operations
(own and suppliers), quality management, equipment
conditions, etc.

-- Industrial level exchanges e.g. freight exchange, logistics


exchange

-- Remote site asset condition monitoring and operations


e.g. conveyors, cranes, sub-stations, pipelines, towers,
etc.

-- Outcome based e.g. heavy industrial equipment,


healthcare

-- Mobile asset tracking e.g. vehicle movement, intelligent


transportation movement, collision avoidance, etc.

-- Services e.g. healthcare for the elderly, cab hailing, port


community services, etc.

-- Predictive operations based on real time data e.g. system


behaviour modelling and quality defect predictions.

-- Remote healthcare and insurance services based on


smart wearables

-- Flexible assembly lines to produce multiple products and


options in response to customer demand.

-- Improved customer experience based on real time


product data e.g. smart transportation, analytics based
predictive maintenance services, tracking and tracing of
shipments

-- Integrated contractor and service provider platforms for


MRO

-- Refined product developments based on collection of


real time product performance data e.g. sensors (skin
sensors), smart cameras (facial recognition) or remote
video to deepen customer insights and expand reach to
new constituents.

-- Smart capex e.g. sensing based digital twin creation of a


sub-surface terrain in a manufacturing plant.

2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

03 Internet of Things: An Indian context 14

Smart supply chains


-- Automated inventory/spares tracking and traceability
(barcode/RFID) throughout the supply chain
-- Fleet monitoring and analytics to provide real-time
visibility and intelligent allocation of all vehicles
-- Autonomous systems (e.g. vehicles and robots) in
warehouses
-- Wearable technology (e.g. digital eyeglasses, data
gloves, etc.) combined with beacons and sensors in
warehouses
-- Telematics in trucking fleets

IoT use
cases in
manufacturing

Health, safety and environmental compliances


-- Human resource safety (locate staff and contractors)
-- Integrated emergency and event response
communication (converge disparate communications,
visual displays, monitoring and alarm systems)
-- Distributed wireless environmental sensing (Fixed
indoor/outdoor and mobile sensor network)
-- Consolidated monitoring, reporting and alerting
(Automated sensor analytics and visuals)
-- Health, safety, environment predictive analysis
(Trended and forecasted analytics).
Integrated command and control operations
-- Virtual expert and remote diagnostics
-- Real time operations visibility anywhere and anytime
-- Mobile/remote process and operations console.

2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

15 Internet of Things: An Indian context

Is India ready?

In a survey conducted by KPMG in India in October 2015,


both, the Indian manufacturing enterprises who are to adopt
IoT and the suppliers of IoT solutions are in the very early
stages of their IoT journey (Exhibit 5).
Exhibit 5: Both the enterprise and IoT solution providers
are in very early stages of IoT readiness

Source: KPMG in India, IoT Study, 2015

IoT enterprise readiness index


The starting point for a manufacturing enterprise in its
IoT journey is to establish its maturity profile on six key
dimensions.
1. Leadership: Alignment and sponsorship of the senior
leadership team towards IoT and its business impact
2. Governance: Organisational design to provide direction
and decision-making with regards to IoT programmes
3. Competency: The ability of the organisation to execute IoT
projects and other emerging technology initiatives (e.g.
social, mobility, analytics, cloud, robotics, etc.)

2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

03 Internet of Things: An Indian context 16

4. Technology: The ability and adaptability of an


organisation to address three unique architectures i.e.
information technology, operational technology and
digital technology

Exhibit 6: Readiness index of Indian enterprises for IoT


implementation

5. Value realisation: Readiness in terms of identification


of use cases and situations where the increased use of
emerging technologies will drive business impact
6. Financing: Availability of financial capital to fund IoT
implementations.
During our research, it has been observed that despite
increasing interest from businesses and the IT leadership,
the overall readiness of Indian manufacturing enterprises
is low on their ability to define, govern, run, design and
fund IoT implementations. (Exhibit 6)
Source: KPMG in India, IoT Study, 2015

2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

17 Internet of Things: An Indian context

The IoT trend is here to stay and Indian manufacturing


enterprises may have to embrace this at a different pace
and in different ways. The compelling reasons to adopt IoT
initially could be either external (peers or industry forces)
or internal (need for greater efficiency). Over the longer
term however, a compelling reason for IoT adoption is the
need for gaining competitive advantage, compliance with
environmental and regulatory norms and risk management.

The path to reaching IoT maturity is expected to more or less


follow a similar trajectory; only the rate of adoption and the
manner in which Indian manufacturing enterprises embrace
IoT could vary. At this stage, we introduce a directional
journey (Exhibit 7) that an enterprise may undertake to IoT
maturity.

Exhibit 7 KPMG in Indias view on journey to IoT maturity

Source: KPMG in India, IoT Study, 2015

Indian enterprises are more likely to start with the


industrialisation phase where the primary focus could
be on increasing the efficiency of business processes.
For example, asset intensive companies (industries,
ports, mines, etc.) are more likely to adopt improvement
programmes around enterprise assets (e.g. predictive
maintenance), people (e.g. safety) and movement (e.g.
supply chain). Consumer focussed companies (e.g.
healthcare, consumer goods, automotive, etc.) are more
likely to focus on improvement programmes around
customers (e.g. omnichannel experience), plant operations
(e.g. flexibility, predictive maintenance) and movement (e.g.
supply chain).

Two common programmes in the industrialisation phase,


across asset intensive and consumer focussed industries
shall lay the foundations of the beginning of smartisation
phase
1. The role of data science driven improvements.
2. Establishing the right organisational design and enterprise
architectures that embrace convergence of systems i.e.
Operational Technology (OT), Information Technology (IT)
and Digital Technology (DT).
In order to proactively shape the transition of Indian
enterprises, both, the leadership at manufacturing
enterprises and IoT solution providers should take decisive
actions in embracing a programme based and an architecture
centric approach.

2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

Internet of Things: An Indian context 18

Enterprises must set priorities and develop


programmes that are aligned to solving critical
business problems
These programmes require significant expenditure (capex
and opex) and are a complex implementation exercise
involving significant organisational change management
and orchestrating a multivendor environment (OEMs,
domain vendors, master system integrators, system
integrators, technology OEMs, etc.).
Enterprises hence have to set their priorities which could
be focussed on profits, sustainability, cash flows and
workforce, as follows:
1. Take an end-to-end view of the value chain (e.g. source
to customer) and identify key improvement focus areas
such as growth and innovation, customers, assets,
people, operations, sustainability and ecosystem
partners. Thereafter, consider how the availability of
real time data i.e. information automisation, can drive
significant improvements (avoiding getting stuck in
incremental improvements).

Way forward
for Indian
manufacturing
enterprises

2. The how of increased information automisation is


developing compelling use cases in each of the six
focus areas above and analysing the use cases with
three perspectives:
-- In place already
-- Not interested, it is too early (e.g. complex, value not
clear, timing not right)
-- Interested and believe it is worthy of further
evaluation
3. Further prioritise use cases based on the business
value, complexity in implementation, dependencies,
degree of change management effort, etc.
4. Narrow down the list of top impact use cases (e.g.
ideally up to five use cases) for further study
5. For each use case, develop a detailed road map along
with the solution providers. (Exhibit 8).
Enterprises must set priorities and develop programmes
that are aligned to solving critical business problems
These programmes require significant expenditure (capex
and opex) and are a complex implementation exercise
involving significant organisational change management
and orchestrating a multivendor environment (OEMs,
domain vendors, master system integrators, system
integrators, technology OEMs, etc.).

2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

19 Internet of Things: An Indian context

Conclusion
Indian manufacturing enterprises are still in the very
early stages of IoT adoption; perhaps, even in a pre-IoT
phase where automation and IT are still disparate,
data is still controlled within the enterprise boundaries
and even within functions in case of manufacturing
operations.
The recent instances of some automobile
manufacturers using sophisticated algorithms to
mislead emission control tests, create the need for a
wide ranging IOT policy.
Increased smartisation in terms of buildings,
grids, manufacturing industries, agriculture, cities,
healthcare, homes, vehicles etc. requires increased
awareness and regulations to deal with information
automisation. This further leads to the need for
a comprehensive debate and development of
legal frameworks, standards, competition laws,
institutional mechanisms, incubation and caapability
building, innovation and R&D, etc.
IoT presents tremendous potential for Indian
enterprises, solution providers and the country as
a whole. The IoT transformation along with the
subsequent transformations are expected to be faster
and each enterprise may have its own pace and timing
in reaching the IoT maturity state. Organisations today
do not have the choice about whether to adopt IoT
or not, since it has the potential to disrupt business
models, economies of an enterprise and eventually
the survival of enterprises. Shifts are expected to
take place wherein Indian enterprises can adopt
industry IoT to gain competitive advantage, create
sustainability and manage key risks.

Source: KPMG in India, IoT Study, 2015

Enterprises hence have to set their priorities which could be


focussed on profits, sustainability, cash flows and workforce,
as follows:
1. Take an end-to-end view of the value chain (e.g. source
to customer) and identify key improvement focus areas
such as growth and innovation, customers, assets,
people, operations, sustainability and ecosystem partners.
Thereafter, consider how the availability of real time
data i.e. information automisation, can drive significant
improvements (avoiding getting stuck in incremental
improvements).
2. The how of increased information automisation is
developing compelling use cases in each of the six focus
areas above and analysing the use cases with three
perspectives:
-- In place already
-- Not interested, it is too early (e.g. complex, value not clear,
timing not right)
-- Interested and believe it is worthy of further evaluation
3. Further prioritise use cases based on the business value,
complexity in implementation, dependencies, degree of
change management effort, etc.
4. Narrow down the list of top impact use cases (e.g. ideally up
to five use cases) for further study
5. For each use case, develop a detailed road map along with
the solution providers. (Exhibit 8).
Manufacturing enterprises should consider four key aspects in
developing programmes from an implementation stand point:

Establish a central Architecture Management Office (AMO)


which sets the principles of integrating the business
process layer with three converging systems IT, OT and
DT. The AMO sets the architecture priorities, required
activities and work streams with strategic guidance from
experienced practitioners and is managed via blueprints
that have a version control established. The AMO also
strategically involves the ecosystem partners to solve
complex integration problems (e.g. networking, compute
and storage, security, proprietary systems, collaboration,
mobility, etc.).

2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

03 Internet of Things: An Indian context 20

Exhibit 8 KPMG in Indias approach from concept to implementation

Infuse an innovation culture in an enterprise, where the:


--

--

Formal steps include: refining the strategy planning


process to include the explicit consideration of digital
disruption and opportunities, appointing an IoT Leader
who is accountable for driving the IoT agenda (including
the strategy and increasing awareness amongst senior
leaders), establishing a senior level forum for broad
sharing of learnings and successes and progressively
introducing tailored digital training for selected staff.
Informal steps include: selective reverse mentoring,
launching an enterprise ideation/crowdsourcing forum
specifically tasked to investigate IoT trends and create
content through an existing forum/community or
leveraging social media.

--

--

--

In addition, the IoT team shall undertake enterprise


awareness by providing tools, research and ongoing
training on digital to businesses.
Establish the right operating model, where it provides
resource scalability and allows development/
acquisition of skills in new capability areas e.g.
analytics, IoT (platform selection, development and
testing platform management), partner certification,
etc.
Establish a strong operating model governance
framework with clearly defined roles and
responsibilities and a hands off mechanism between
the IoT core team and the business units impacted by
IoT initiatives.

Acronyms
OEM - Original Equipment Manufacturer
IP - Internet Protocol
KPI - Key Performance Indicator
MRO - Maintenance, Repair and Overhaul
OEE - Overall Equipment Effectiveness
POC - Proof of Concept
IoT - Internet of Things
SCADA - Supervisor Control and Data Acquisition
ERP - Enterprise Resource Planning

MES - Manufacturing Execution Systems


RPA - Robotic Process Automation
AI - Artificial Intelligence
WWW - World Wide Web
ARPANET - Advanced Research Projects Agency Network
RFID - Radio-frequency identification
LPDT - Linear Potentiometric Displacement Transducer
LHD - Load, Haul, Dump machine
ICCR - Integrated Command and Control Room
AMO - Architecture Management Office

2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

19 Internet of Things: An Indian context


21

About KPMG in India


KPMG in India, a professional services firm, is the Indian
member firm affiliated with KPMG International and was
established in September 1993. Our professionals leverage
the global network of firms, providing detailed knowledge
of local laws, regulations, markets and competition. KPMG
has offices across India in Chandigarh, Gurgaon, Noida,
Ahmedabad, Vadodara, Mumbai, Pune, Bengaluru, Kochi,
Chennai, Hyderabad and Kolkata. KPMG in India offers
services to national and international clients in India across
sectors. We strive to provide rapid, performance-based,
industry-focussed and technology-enabled services, which
reflect a shared knowledge of global and local industries and
our experience of the Indian business environment.
KPMG International
KPMG International is a global network of professional firms
providing Audit, Tax and Advisory services. KPMG member
firms operate in 155 countries and have more than 174,000
outstanding professionals working in member firms around
the world.

The KPMG Audit practice endeavours to provide robust and


risk-based audit services that address member firms clients
strategic priorities and business processes.
KPMGs Tax services are designed to reflect the unique
needs and objectives of each client, whether firms are
dealing with the tax aspects of a cross-border acquisition
or developing and helping to implement a global transfer
pricing strategy. In practical terms that means, KPMG firms
work with their clients to assist them in achieving effective
tax compliance and managing tax risks, while helping to
control costs.
KPMG Advisory professionals provide advice and assistance
to help enable companies, intermediaries and public sector
bodies to mitigate risk, improve performance, and create
value. KPMG firms provide a wide range of Risk Consulting,
Management Consulting and Deal Advisory services that
can help their
clients respond to immediate needs as well as put in place
the strategies for the longer term.

Source: KPMG in India, IoT Study, 2015

2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

Internet of Things: An Indian context 22

Acknowledgement
We would like to acknowledge the efforts of the following individuals towards the compilation of this
publication.

Research team
Anant Khanna
Gangadhar Krishnamoorthy
Nimish Danani

Design team
Yogita Negi

Compliance team
Sameer Hattangadi
Nisha Fernandes
Aamir Munshi

2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

KPMG in India contacts:


Nitin Atroley
Partner and Head
Sales and Markets
T: +91 124 307 4887
E: [email protected]

Rachna Nath
Partner
Digital Consulting
T: +91 124 307 4146
E: [email protected]

KPMG.com/in

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The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to
provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in
the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (KPMG International), a Swiss entity. All rights reserved.
The KPMG name and logo are registered trademarks or trademarks of KPMG International.
Printed in India. (022_THL0816)

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