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Industrial automation is undergoing a tremendous change due to the proliferation of the concepts, the Internet of Things (IoT), Cyber-Physical Systems (CPS) and tactile internet, which enables the interconnections of factory floor devices and enterprise network on a wider and fine-grained scale. Vision Sensor deployments are getting great momentum in factories, as it improves the quality and productivity of the systems being inspected. Smart Vision Sensors[1] removes the need of the additional infrastructures for running the image processing algorithms and vision applications, by directly running the vision logic on the device and control/monitor the various parameters on the field based on the image processing outputs. Industrial vision sensor (IVIS) is an industrial smart camera, which has a CMOS image sensor[2] and a powerful on-board processing system capable of supporting machine vision applications, for improving the product and process qualities and thereby improve the yield and profit. IVIS is capable of extracting application-specific information from the captured images and make decisions based on the image processing algorithms implemented on the system, to realize stand-alone intelligent and decision-making automation system. In this paper we present the design and development of IVIS, its application domains and preliminary test results.