Topics In Demand
Notification
New

No notification found.

Digital Engineering – An opportunity unparalleled
Digital Engineering – An opportunity unparalleled

381

2

Digital Engineering has rapidly become a prime priority for enterprises across industries around the globe and is disrupting the world at a pace never seen before. This is especially true for ER&D enterprises, which are increasingly spending more and more to make their companies more digital, smart, and connected. This has become even more relevant in the wake of the Covid pandemic, when work has shifted remotely, and many processes have moved to the online mode. With competition changing rapidly, companies becoming increasingly customer-centric, innovation changing rapidly, time to market shortening, etc., companies in the ER&D industry are using digital methods to optimize their manufacturing and supply chain processes, develop newer business models to combat volatility in this VUCA (volatile, uncertain, complex, and ambiguous) world and stay competitive.

As per NASSCOM and Everest Group's research, the global digital ER&D spend was USD 205 bn (estimated figures) in 2019 and it is expected to reach USD 385 bn (estimated figures) in 2025, indicating a 12% CAGR. This demonstrates the increasing focus that ER&D companies are putting on building digital infrastructure and digital engineering.

There are various digital enablers that are driving up significant efficiencies in the overall engineering processes. There are various key technology enablers that have benefitted ER&D companies across the board. They include –

  • Blockchain
  • IoT/IIoT
  • Automation
  • Cloud computing
  • AI / ML technologies
  • 5G
  • AR / VR tech

In addition, these digital enablers are driving up significant efficiencies in the overall engineering processes.

 

Digital engg

 

  1. In the Product Design aspect, engineering companies have moved away from a CAD/CAM and manual setups to a simulation driven, AI enabled generative design. Companies are looking to maximise their capabilities and resources and have moved to digital product design process to grow their businesses.
  1. Product Development has shifted from physical prototypes to additive manufacturing and computer integrated manufacturing. 3D printing and AI have completely transformed product development. Using AI, companies can now easily develop product prototypes at a faster time with low costs and minimal errors. In addition, AI and additive manufacturing provide the flexibility to customise the products as well.
  1. Product testing has moved from a manual process to an automated and AR/VR enabled testing process. In the wake of the Covid pandemic, many testing processes have been made remote. Automation in product testing and use of AR and VR processes has enabled companies to test their products with greater agility with minimal errors at a faster rate.
  1. There have been significant changes in product maintenance front as it is rapidly moving away from manual inspections and corrective measures post-facto. Using IoT and big data to detect anomalies and defects in advance to fix before any breakdowns using real time data and monitoring, predictive maintenance saves money and minimizes time taken to maintain and repair the product.
  1. Knowledge management has completely gone digital. From manual, cumbersome documentation to in-component storage and cloud-enabled solutions, use of digital technologies for knowledge management has become increasingly relevant for organisations on their quest to become digitally agile. Digital knowledge management helps in understanding, sharing, and connecting with people for the information we seek. It reduces escalations and redundancies, lowers average handling time, reduces training time, and enables multiple people to have access.

The ER&D companies not only benefit on the engineering side but also on the business side when they actively choose to go digital.

On the engineering side, the companies benefit from higher operational efficiency, have a robust product pipeline, and are able to mitigate risks by manufacturing design secure and compliant products.

On the business side, these companies are able to ensure that time to market of their is minimal, enter new markets with specialised products and achieve “mass customization” with localised products and improve customer experience, thereby drive competitive advantage within their organisations.

Digital engineering is a domain which is no longer the weapon of a select few. It has rather become a mainstay among the ER&D enterprises. It has opened a world of opportunities and valuable solutions and advantages to the ER&D organisations, customers and the ecosystem at large and it is here to stay.


That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.


images
Vandhna Babu
Principal Analyst - Research

© Copyright nasscom. All Rights Reserved.