The annual Dassault 3DExperience Forum 2021 focussed on the industry bracing digitisation in a post-pandemic era. Sumesh Soman brings out key insights from the discussions that took place.
The Dassault 3D Experience Forum 2021 was held in a hybrid format, in Bengaluru, over September 15-16’ 2021. Deepak NG, India Managing Director, Dassault Systèmes set the tone of the proceedings as he touched upon new industry challenges in the age of experience. Notably, the forum took place in the midst of crucial industrial changes. To start with, the Production Linked Incentive (PLI) scheme was approved for the auto and auto components industry with a Rs. 25,938 crore outlay. It came close on the heels of the scrappage policy framework being ascertained for the industry. Fuel prices persist on the highs and continue to influence the demand dynamics. It is also said to be making a stronger case for the supply side to focus on electrification as the industry goes about its ‘zero-emission goals.
At the heart of innovation
With the backdrop of the business, societal and consumer impacts bringing about a fast change in the global environment, innovation was the focal point at the annual forum. Transportation and mobility, aerospace and defence where Dassault is active found an apt representation. In a roundtable discussion, the experience was deemed crucial for customer relationship management. It was linked to innovation keeping humans at the front and centre. Bernard Charles, Vice Chairman and Chief Executive Officer, Dassault Systèmes, expressed, “With the pandemic, we could clearly see what makes a difference when it comes to sustainable business and innovation: a deep purpose, the platform phenomenon, and the quality of human relationships.” He explained that the 3DExperience platform as a relationship platform was capable of laying the foundation of creating an inclusive, intelligent, measured and continuous relationship with the value chain. Samson Khaou, EVP, Asia Pacific, emphasised on the importance of partnering customers in their journey of digital transformation and their growth agenda in a granular manner. Olivier Ribet, EVP, EMEAR correlated strategy, software engineering, and business development as vital cogs at the core of innovation. Erik Swedberg, EVP, Americas at Dassault Systèmes, linked it all and spoke of the importance of moving to a customer-first business approach to the sectors of interest for Dassault. It was unanimously agreed that businesses were forced to recalibrate in the aftermath of the pandemic with digital transformation across the board.
Trends and role of technology
The session on trends and the role of technology in New Product Development (NPD) highlighted the significant shift being witnessed by customers and manufacturers alike. Attributed to both external and internal factors, the shift in consumer preference influencing supply-side dynamics were highlighted by Dheeraj Hinduja, Chairman, Hinduja Group in his keynote. “People are not just after the frugality of the vehicle, a considerable section of the demography is now preferring cockpit features, ADAS, safety kit, connected tech accessibility over the erstwhile preferences of looks and performance,” cited Hinduja.
Taking Internal Combustion Engines (ICE) and EV as a case study, he spoke of manufacturers being forced to offer enhanced features, once limited to the top-end variants on the base models like hatchbacks today. A means to create a lucrative ladder with product variants in the portfolio, Hinduja gave an insight into manufacturers classifying the customer base. Broadly classified into four categories, it showed an ascendance from pre-millennials, and millennials (18-35) to gen X (36-50) going on to the silent generation (70-85). Of these, he claimed around 75 per cent were known to be influenced by technology and cognitive interfaces. He called upon the Original Equipment Manufacturers (OEMs) to drastically alter their thinking patterns to complete the product experience strategy and make it relevant to this new and changing target demographic.
Outlook by ACMA
The outlook of the auto components industry was linked closely to future participation in the electrification drive. There are sweeping changes across the board with vehicle segments unexpected to lead the drive joining in the bandwagon. The PLI scheme and the FAME II outlay has revived the industry interest in bringing about the change sooner than later. Vinnie Mehta, Director General at Automotive Component Manufacturers Association of India (ACMA) gave a backdrop of the auto components industry playing a major role in the future of mobility given its track record of GDP contribution. The industry contributes 7.1 per cent to the GDP as a whole. This is broken down into 27 per cent to the industrial GDP, and 49 per cent to the manufacturing GDP. It accounts for eight per cent of the overall exports and accounts for 15 per cent of the total GST collection. The employment scorecard reveals a contribution of 37 million jobs (direct and indirect) according to Mehta.
Admitting to lockdowns having had a major bearing on the industry, Mehta expressed confidence in the industry bouncing back given a healthy recovery in the second half of 2021 (H2-2021). Mehta expressed confidence in the PLI and policies focussed on the export compositeness coupled with increasing localisation paving the way for a further reduction in India’s trade deficit. India’s trade deficit reduced to 0.5 bn in FY20201, he said.
On EVs, Mehta made a revelation of the industry missing sales targets for 2019-23. In an effort to meet an overall sales target of 15,55,000 vehicles, for instance, two-wheelers were offset by ~94 per cent; three-wheelers by 97 per cent; e-passenger vehicles by 97 per cent. Mehta expressed hope in the PLI for Advance Chemistry Cell (ACC) Battery allocation of USD 2.5 BN over the next five years and the extended FAME II scheme (by March 31, 2024). He concluded by cautioning the industry on projections being attainable subject to the sustainability of demand and economic recovery.
TAKING A CUE FROM DEFENCE MANUFACTURING
Sanjay Chakraborty, Chief Information Officer, Larsen and Toubro Defence shared cues of leveraging technology for enhancing the efficiency of the Indian manufacturing ecosystem. He called for building a sustainable infrastructure and an application backbone for supporting business excellence. Chakraborty urged the need for putting in place an integrated planning and execution system for a seamless exchange. He cited the importance of an in-progress quality assurance process, a connected supply chain, CAD tool integration all leading into a data-driven decision-making system. By doing so, automotive companies can look forward to enhanced business opportunities and operational excellence as envisioned.
