In an HCLTech Trends and Insights podcast during the World Economic Forum, Ajay Bahl, Chief Growth Officer, Americas, MEGA Industries, HCLTech, discussed how asset-heavy industries are evolving in response to the demands of sustainability and digital transformation. These industries, characterized by heavy reliance on physical assets like manufacturing plants, infrastructure and energy systems, are undergoing a massive shift.
“Asset-heavy industries are unique because they require significant capital investment, and these investments typically take a long time to realize returns,” he explained. “But now, with the rapid pace of technological transformation, there’s an urgent need for companies to rethink how they plan, execute and manage their capital investments.”
This shift has been spurred by new technologies that allow these industries to increase efficiency, improve product safety and reduce waste. Bahl highlighted that the introduction of automation and artificial intelligence (AI) has been central to these changes.
“Technologies like AI and IoT are enabling real-time data processing, predictive maintenance and autonomous operations,” he noted. “The result is smarter, more sustainable operations, with the potential to drive not just efficiency but innovation in the products and services these industries deliver.”
Flexible manufacturing and smart factories
As industries embrace these new technologies, Manufacturing is being reshaped. Companies are moving away from rigid, traditional assembly lines and are instead investing in flexible manufacturing systems that can adapt to changing needs.
“Manufacturing is becoming more flexible. Companies no longer want assembly lines dedicated to just one product. They want the capability to quickly shift between different products or models,” said Bahl. “We’re seeing more companies adopt 3D printing and on-demand manufacturing, where parts are produced based on customer orders and shipped directly to the end user.”
This shift is supported by the rise of smart factories, where data and AI are used to predict equipment failures and optimize production processes. “Predictive maintenance is a game-changer for these industries. By using AI to predict when machines or parts are likely to fail, we can reduce downtime and improve overall efficiency,” he said.
Additionally, Bahl highlighted the role of AI in quality assurance. “In factories, we now have advanced imaging and AI tools that can perform visual inspections far better than humans. This technology improves product quality and reduces the failure rate of manufactured goods.”
The role of data in transforming Industries
Data and AI are not only enhancing manufacturing; they are also transforming how businesses operate across all sectors. Bahl explained that companies are realizing they have access to far more data than they initially recognized. “For instance, a logistics company may collect data about which packages are sent from which locations. But what they don’t realize is that they have data about the buying patterns of entire neighborhoods.”
This untapped data holds immense potential. “The key question is how to monetize this data in a way that benefits the company and the end customer,” he explained. “AI is essential in turning this data into actionable insights that can drive growth and operational efficiency.”
He also discussed the use of AI in other industries, such as Oil and Gas. “In industries like Oil and Gas, AI can help companies optimize operations like pipeline maintenance or identifying the best locations to send maintenance crews. This leads to safer, more efficient operations and a significant reduction in costs."
Product innovations driving sustainability
Sustainability is a key driver in the transformation of asset-heavy industries. According to Bahl, companies are no longer just focused on cutting costs, they are committed to creating products and processes that are both environmentally friendly and economically viable.
“We’re seeing new types of innovation in product development,” he said. “Think about autonomous cars, which are becoming a reality. But it's not just the cars, everything around us is becoming more connected, from our lawnmowers to our vacuum cleaners. And these advancements aren't just about improving efficiency; they're about making products safer, too.”
Bahl pointed to innovations in safety features, such as chainsaws equipped with sensors that stop the blades upon skin contact. “We have reached a point where products are not just about functionality; they are about safety and improving the human experience,” he explained.
He also discussed how products are evolving to become more self-sufficient. “For example, tires are now designed to self-heal, and some products can even self-fuel when needed. These technologies are changing the way we think about product life cycles and sustainability.”
The energy transition and circular economy
As industries work to reduce their carbon footprints, they are turning to alternative energy sources like hydrogen, solar power and energy storage technologies.
“We’ve made progress, but we still have a long way to go when it comes to reducing carbon emissions and increasing energy efficiency,” admitted Bahl. “The energy transition is a critical part of this transformation. Companies are exploring new ways to generate and store energy, and technologies like efficient batteries and renewable energy grids are key to meeting global sustainability goals.”
He also emphasized the importance of carbon sequestration, which refers to the process of capturing and storing carbon dioxide to reduce its impact on the environment. “We are seeing new technological solutions that can help offset carbon emissions and reduce the environmental footprint of industries,” he said.
Sustainability is not only about energy transition but also about reducing waste and embracing the concept of a circular economy. “The circular economy is all about eliminating waste, reusing products and making sure that products do not end up in landfills. It’s about creating a system where resources are used efficiently, and waste is minimized,” said Bahl.
However, he noted that achieving this goal requires more than just innovation; it also requires stricter regulations and better data on waste management. “Regulation and compliance are crucial for driving innovation in sustainability. We need better data on waste creation and emissions to reduce them effectively.”
Adaptation and innovation: The key to the future of asset-heavy industries
Looking ahead, Bahl emphasized that the key to success for asset-heavy industries lies in their ability to innovate and adapt quickly. “Technology is transforming the way we approach everything from product development to manufacturing,” he said. “The industries that will thrive are those that embrace these changes and use them to create more sustainable, efficient and safer products and services.”
By leveraging AI, embracing flexible manufacturing and driving sustainability initiatives, asset-heavy industries can navigate the challenges of the future while continuing to grow and innovate. “The companies that lead the charge will define the future of these industries,” added Bahl.
