Page 16 - IMDR Journal 2025

Research Article
ADOPTION OF IOT IN SMART MANUFACTURING
RISKS AND REWARDS

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Abdul Sami , Om Mahajan , Om Vaidya 1

ABSTRACT
Companies like Tata Motors, Hindalco, and Vedanta have fully embraced Industry 4.0 technologies such as the Internet of
Things (IoT), artificial intelligence (AI), automation, and data analytics. Their industrial operations underwent a substantial
shift. These companies achieved significant cost savings, better operational efficiency, enhanced finances, and improved
overall productivity through AI-assisted decision tools, predictive maintenance, and smart production techniques.
Unlike those in the industrial sector, Bosch and Wipro, which focus on IT and services, have not experienced an increase in
revenue. Although these companies have adopted Industry 4.0, their results have not been immediate leaps in revenue.
However, their processes have become smoother and workflows have improved. The shift shows that the area of industry
greatly influences the outcome of digital transformation, with manufacturing typically experiencing faster and more
noticeable benefits. An important insight from this research is that the benefits of Industry 4.0 are often not immediately
evident. Companies tend to make operational changes, integrate an entire system, and only then start to see ROI 12 to 18
months post-implementation. Initial drops or volatility in profit should not be dismissed as failure. Evaluation should always
consider the long-term view. This evaluation also stresses the ongoing need for investment in AI tools, secure systems, and
employee upskilling. Relying on financial documents and industry insights, this study shows that Industry 4.0 represents a
fundamental transformation in business practices rather than just new technology. Firms that build sector-specific digital
strategies will likely experience improved competitiveness, higher output, and sustained success in today’s digital-first
market.
KEYWORDS: Industry 4.0, IoT, AI, automation, data analytics, smart manufacturing, predictive maintenance, digital
transformation, manufacturing sector, IT services, efficiency, financial growth.

INTRODUCTION opportunities alongside notable problems in productivity,
precision, flexibility and other assets along with concerns
The Development of the Manufacturing Sector
regarding supplemental and security concerns. This report
The manufacturing industry has always been important in dives into the major pros and cons of integrating IoT into
terms of industrialization and economic advancement. manufacturing operations.
Starting from the days of human labour and transitioning to What Does Industry 4.0 Mean in the Context of IoT?
fully automated systems, this industry has always been
willing to shift in order to fulfil the requirements for The term Industry 4.0 originated from a German
precision and productivity. The pace of change began government initiative launched in 2011, aimed at digitizing
accelerating during each industrial age, beginning with the and modernizing the manufacturing industry. At the centre
first revolution in the 1700s when mechanization was of this concept is the vision of creating intelligent, self-
introduced and later three hundred years on with the rise of optimizing systems where machines, people, and processes
computers in the late 20th century. We are currently amidst are connected in real-time.
what is referred to as the Fourth Industrial Revolution, or In smart manufacturing environments, IoT devices collect,
Industry 4.0. The current revolution focuses on the send, and process vast amounts of data that machines,
integration of systems for IoT infrastructure, meaning any of sensors, and operations create. AI and big data technologies
the advanced digital tools. At the core of the new radical then analyze this data to make wiser decisions autonomous
change is advanced technology in form of the IoT which adjustments to machinery, alerting possible problems, or
plays a crucial role in the industry’s boom. It IoT impacts more efficient production timetables.
almost every avenue of manufacture.The intention now is in Major technology drivers of Industry 4.0 are
stark to on the design smart, merged ecosystems. Unlike
previous eras, the focus is no longer design around ● Cyber-Physical Systems (CPS) Integration of physical
production efficiency. The role of gadgets pivots- machines with digital interfaces enabling real-time
Innovation mandates real-time interaction, data systems, interaction.
and automation processes. IoT is what powers these abilities ● Internet of Things (IoT) Interconnected devices and
behind this.With global and Indian manufacturers shifting to sensors that share data across the factory floor.
smarter systems, the IoT brings forth its immense ● Artificial Intelligence (AI) & Machine Learning (ML)

Corresponding author: mahajanom5@gmail.com
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Institute of Management Development and Research, Pune
Cite this Paper :
Abdul, S., Om, M., Om, V.(2025)
Adoption of IoT in Smart Manufacturing: Risks and Rewards, JMDR
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