Digital transformation priorities of India’s discrete manufacturing SMEs – a conceptual study in perspective of Industry 4.0

Author(s):  
Gautam Dutta ◽  
Ravinder Kumar ◽  
Rahul Sindhwani ◽  
Rajesh Kumar Singh

Purpose Manufacturing excellence is critical to our nation’s economy. Indian Government’s National Manufacturing Policy, drafted in 2011, is being revamped to include the aspects of Industry 4.0. Initiatives, both led and assisted by government and industries, are being launched to catalyze and transform India’s manufacturing competencies. This paper aims to study the functional areas which can potentially leverage Industry 4.0 technologies and help India’s manufacturing establishments to transform. It does so in context of the aspirations of India’s small and medium discrete manufacturing establishments (SMME) towards adopting digital technologies for the identified functional areas. The study draws its context from the relevant literature review intended to examine the academic articles published until the end of September 2018, followed by a maturity assessment survey of Indian SMMEs to establish priority areas Design/methodology/approach The literature survey has been complemented with a maturity survey of more than 250 of Indian SMMEs to establish adoption gaps by comparing proficiency and sophistication of their present status and proposed adoption aspirations by 2020. The assessment of the organizational aspirations and gap areas identified is expected to indicate which of the Industry 4.0 elements can be adopted by them. Findings The maturity survey undertaken throws up several insights – Indian SMME community’s self-assessment indicates operational measurements followed by manufacturing and design interventions as the aspired transformation cycle. The survey indicates that manufacturers would like to make changes to their design and manufacturing strategies based on performance metrics; therefore, they need to first capture real-time machine data, analyze and then incorporate the resulting improvements in manufacturing and design decisions in that order. Research limitations/implications The maturity assessment method itself is in evolution stage, and future correlations with benefits will strengthen observations. Industry 4.0 being relatively new initiative for India, availability of country-specific academic literature is limited. The maturity assessment survey undertaken across organizations of North, West and South India therefore carries the risk of not reflecting the views of a wider population. The current maturity, or the lack of it, of proficiency and readiness of India’s SMMEs with respect to digital technologies may also be a barrier to self-examine. Practical implications This research is expected to provide insight into priorities to be adopted for digital-centric transformation by Indian SMMEs. It is expected to facilitate policymakers and influencers from government and industry to help frame policies that facilitate the adoption of digital technologies by Indian SMMEs and facilitate India’s technical education community to adopt skill development programs to support industry. It is expected to provide guidance to India’s academic institutions to rejig their curriculums to help bridge the critical skills gap that exists between newly inducted engineering professionals and industry. Social implications Digitalization is expected to foster lean and therefore support sustainability initiatives. Digitalization is expected to help create new, alternative sources of employment which are more relevant to emerging times and foster unlearning the past and relearning of new skills. This emerging diversity of engineering applications resulting from digitalization is expected to also support the larger and poorer agricultural community of India and help the sector to become more efficient and productive, which in turn will reduce economic alienation of a large section of Indian society. Originality/value Industry 4.0 has been identified as the transformational initiative for India’s manufacturing competitiveness. Indian manufacturing sector needs to urgently implement the digital technologies and improve their performance and remain relevant in this dynamic market. This research will help guide them to frame their respective digital strategies and be successful. This research will help government and industry influencers to plan and execute their interventions.

2019 ◽  
Vol 27 (3/4) ◽  
pp. 180-186
Author(s):  
Elena N. Grishina ◽  
Elena A. Lysova ◽  
Irina P. Lapteva ◽  
Eleonora V. Nagovitsyna

Purpose The purpose of this paper is to substantiate the importance of an educational platform for digital modernization of modern Russia’s regions in Industry 4.0 and to determine the functions and conceptual foundations of organization of regional market of educational services for execution of functions for stimulation of digital modernization of Russia’s regional economy. Design/methodology/approach The authors use the method of regression analysis for studying the influence of the indicators of adaptation of the market of educational services to the conditions of Industry 4.0 on efficiency of digital modernization of economy of the regions of the Volga Federal District of the Russian Federation as of late 2018-early 2019. The information and empirical basis of the paper is materials of the index “Digital Russia” of the Moscow School of Management “Skolkovo.” Findings It is determined that the market of educational services plays an important role in the process of transition of regions of modern Russia to Industry 4.0, performing two functions: training of personnel who are capable of working with digital technologies and training of personnel who are capable of creating new digital technologies at a region’s companies. As a result, the educational platform of digital modernization of the regional economy is formed. The developed conceptual foundations of an organization of the regional market of educational services for execution of its functions on stimulating the digital modernization of Russia’s regional economy allow for three variants of the process of training of personnel: within execution of the order of partner companies in a regional technological park, within participation of the region’s companies in a tender for training of personnel and within an independent initiation of the process of training of personnel by universities based on the results of digital marketing. Originality/value The offered authors’ recommendations ensure the following advantages during the creation and development of the educational platform of a region’s digital modernization in Industry 4.0: high marketing activity of universities, direct sequence of training of personnel and improved treatment of the effectiveness of regional universities as the ratio of efficiency in personnel training to expenditures, which stimulates competition between universities and maximization of effectiveness of educational platform of a region’s digital modernization in Industry 4.0.


2019 ◽  
Vol 25 (2) ◽  
pp. 323-346 ◽  
Author(s):  
Lorenzo Ardito ◽  
Antonio Messeni Petruzzelli ◽  
Umberto Panniello ◽  
Achille Claudio Garavelli

PurposeThe purpose of this paper is to present a comprehensive picture of the innovative efforts undertaken over time to develop the digital technologies for managing the interface between supply chain management and marketing processes and the role they play in sustaining supply chain management-marketing (SCM-M) integration from an information processing point of view.Design/methodology/approachPatent analysis and actual examples are used to carry out this study. In detail, first, the authors identify the subset of enabling technologies pertaining to the fourth industrial revolution (Industry 4.0) that can be considered the most relevant for effective SCM-M integration (i.e. Industrial Internet of Things, Cloud computing, Big Data analytics and customer profiling, Cyber security). Second, the authors carry out a patent analysis aimed at providing a comprehensive overview of the patenting activity trends characterizing the set of digital technologies under investigation, hence highlighting their innovation dynamics and applications.FindingsThis research provides insightful information about which digital technologies may enable the SCM-M integration. Specifically, the authors highlight the role those solutions play in terms of information acquisition, storage and elaboration for SCM-M integration by relying on illustrative actual examples. Moreover, the authors present the organisations more involved in the development of digital technologies for SCM-M integration over time and offer an examination of their technological impact in terms of influence on subsequent technological developments.Originality/valueSo far, much has been said about why marketing and supply chain management functions should be integrated. However, a clear picture of the digital technologies that might be adopted to achieve this objective has yet to be revealed. Thus, the paper contributes to the literature on SCM-M integration and Industry 4.0 by highlighting the enabling technologies for the Industry 4.0 that may particularly serve for managing the SCM-M interface from an information processing perspective.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shailendra Kumar ◽  
Mohd. Suhaib ◽  
Mohammad Asjad

PurposeThe study aims to analyze the barriers in the adoption of Industry 4.0 (I4.0) practices in terms of prioritization, cluster formation and clustering of empirical responses, and then narrowing them with identification of the most influential barriers for further managerial implications in the adoption of I4.0 practices by developing an enhanced understanding of I4.0.Design/methodology/approachFor the survey-based empirical research, barriers to I.40 are synthesized from the review of relevant literature and further discussions with academician and industry persons. Three widely acclaimed statistical techniques, viz. principal component analysis (PCA), fuzzy analytical hierarchical process (fuzzy AHP) and K-means clustering are applied.FindingsThe novel integrated approach shows that lack of transparent cost-benefit analysis with clear comprehension about benefits is the major barrier for the adoption of I4.0, followed by “IT infrastructure,” “Missing standards,” “Lack of properly skilled manpower,” “Fitness of present machines/equipment in the new regime” and “Concern to data security” which are other prominent barriers in adoption of I4.0 practices. The availability of funds, transparent cost-benefit analysis and clear comprehension about benefits will motivate the business owners to adopt it, overcoming the other barriers.Research limitations/implicationsThe present study brings out the new fundamental insights from the barriers to I4.0. The new insights developed here will be helpful for managers and policymakers to understand the concept and barriers hindering its smooth implementation. The factors identified are the major thrust areas for a manager to focus on for the smooth implementation of I4.0 practices. The removal of these barriers will act as a booster in the way of implementing I4.0. Real-world testing of findings is not available yet, and this will be the new direction for further research.Practical implicationsThe new production paradigm is highly complex and evolving. The study will act as a handy tool for the implementing manager for what to push first and what to push later while implementing the I4.0 practices. It will also empower a manager to assess the implementation capabilities of the industry in advance.Originality/valuePCA, fuzzy AHP and K means are deployed for identifying the significant barriers to I4.0 first time. The paper is the result of the original conceptual work of integrating the three techniques in the domain of prioritizing and narrowing the barriers from 16 to 6.


2019 ◽  
Vol 121 (8) ◽  
pp. 1730-1743 ◽  
Author(s):  
Leonello Trivelli ◽  
Andrea Apicella ◽  
Filippo Chiarello ◽  
Roberto Rana ◽  
Gualtiero Fantoni ◽  
...  

Purpose Circumstances that are have a significant impact on it. In particular, environmental sustainability related to the increase of worldwide population, and market demand for agricultural products (with consumers more and more aware about cultivation and breeding techniques and interested in healthy and high-quality products) represent two of the key challenges that the agricultural sector is going to face in next years. In such a landscape, technological innovations that can support organizations and entrepreneurs to face these problems become increasingly important, and Industry 4.0 is the most striking example. Indeed, the Industry 4.0 paradigm aims to integrate digital technologies into business processes to raise productivity levels and to develop new business models. Accordingly, digital technologies play a similar role in the precision agriculture domain, and the purpose of this paper is to understand if the technologies at the basis of these two paradigms are the same or not. Design/methodology/approach The present work investigates how the two domains of Industry 4.0 and precision agriculture are connected to one another by analyzing the most used technologies in both the fields in order to highlight common patterns and technological overlaps. To reach such goal, an approach combining manual and automated analysis was developed. Findings The research work generated three main results: a dictionary of precision agriculture technologies including 324 terms; a graph, describing the connections between the technologies composing the dictionary; and a representation of the main technological clusters identified. Originality/value These show how the two domains under analysis are directly connected and describe the most important technologies to leverage when approaching digital transformation processes in the agricultural sector.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Guilherme Tortorella ◽  
Flavio S. Fogliatto ◽  
Shang Gao ◽  
Toong-Khuan Chan

PurposeThis study aims at identifying the contribution of Industry 4.0 (I4.0) integration into supply chains (SCs) to the enhancement of SC resilience.Design/methodology/approachA scoping review was conducted so that the relevant literature on SC resilience, and I4.0 integrated into SC management was examined.FindingsThe authors summarize the main findings from existing research and propose three research directions: (1) empirical validation of the contribution of I4.0 ICTs to SC resilience; (2) explore the role of processing-actuation technologies in enhancing restorative capacity; and (3) integration between I4.0 ICTs and omni-channel strategy as a means to resilience development at consumer and retail levels. The literature on the design of resilient smart SCs is far outnumbered by works reporting applications of I4.0 ICTs at different SC tier levels. However, the authors’ scoping review organizes the information available on these themes, setting the ground for the development of new theoretical propositions.Originality/valueThe integration of digital technologies from I4.0 can fundamentally change the SC management, acting as enablers of a more effective response to disruptions. However, the digital transformation of SCs is still incipient, and literature is particularly sparse when considering the contribution of I4.0 to the resilience of SCs.


2017 ◽  
Vol 25 (3) ◽  
pp. 174-184 ◽  
Author(s):  
Roger Strange ◽  
Antonella Zucchella

Purpose This paper aims to provide an assessment of how the widespread adoption of new digital technologies (i.e. the Internet of things, big data and analytics, robotic systems and additive manufacturing) might affect the location and organisation of activities within global value chains (GVCs). Design/methodology/approach The approach in this paper is to review various sources about the potential adoption and impact of the new digital technologies (commonly known collectively as Industry 4.0), to contrast these technologies with existing technologies, and to consider how the new technologies might lead to new configurations involving suppliers, firms and customers. Findings The authors report that the new digital technologies have considerable potential to disrupt how and where activities are located and organised within GVCs), and who captures the value-added within those chains. They also report that Industry 4.0 is still in its infancy, but that its effects are already having an impact upon the nature of competition and corporate strategies in many industries. Social/implications In particular, the authors draw attention to the potential cyber-risks and implications for the privacy of individuals, and hence, the need for regulation. Originality/value This is the first published paper to consider the likely separate and joint impacts of the new digital technologies on the practice and theory of international business.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dheeraj Nimawat ◽  
B.D. Gidwani

PurposeThe purpose of the paper is to visualize the priorities of important factors towards the status of Industry 4.0 implementation in Indian manufacturing industries by utilizing the analytic hierarchy process (AHP) and analytic network process (ANP) techniques.Design/methodology/approachBased on a review of relevant literature, the authors recognized four criteria and 16 critical factors that have been validated by academic and industry experts. AHP and ANP models are then developed to evaluate the requirements and essential elements of the Industry 4.0 implementation. The outcomes were validated with the aid of sensitivity analysis.FindingsThe above models offer the industry a clear and straightforward way to understand the critical factors in the status of Industry 4.0 implementation. The two techniques have emerged to be influential in deciding the status of Industry 4.0 implementation. The two methods yielded almost identical outcomes. Both methods take into account the industry's specific needs based on their available capacity.Practical implicationsDecision-makers and specialists will use the strategies discussed in this paper to effectively include the implementation status of Industry 4.0 in their industries, based on their ability to make arrangements for proper implementation of Industry 4.0 and to concentrate on top priority factors when implementing Industry 4.0 at their workplace.Originality/valueThe contribution of this research is that it is the first to be carried out with a view to both AHP and ANP to analyze important factors regarding the implementation status of Industry 4.0 and authentication through sensitivity analysis methods; this is a recent initiative in Industry 4.0.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ibrahim Oluwole Raji ◽  
Eduard Shevtshenko ◽  
Tommaso Rossi ◽  
Fernanda Strozzi

PurposeLean and agile are essential supply chain management (SCM) strategies that enhance companies' performance. Previous studies have reported the capabilities of different SCM strategies to enhance performance; however, the emergence of Industry 4.0 technologies has bred focus on the possibility of attaining more levels of operational performance. Despite being demonstrated helpful at enabling supply chain (SC) strategies, the literature linking Industry 4.0 with SCM strategies is still in its infancy. Thus, this work investigates the degree to which “Industry 4.0 technologies” enable the implementation of lean and agile practices and subsequently assesses the potential performance implications of integrating Industry 4.0 technologies with the SC operations.Design/methodology/approachThe work employs an exploratory case study approach using empirical data from selected organisations drawn from an Estonian manufacturing cluster and digital solution providing companies. The data collected via interviews were used to assign numerical scores and subsequently aggregated across the five cases for the research variables of interest. The work is crowned with a model grounded on the cross-case analysis to depict which technologies impact each of the lean and agile practices.FindingsThe analysis enabled comprehension of the potential impact and level of importance of the main Industry 4.0 technologies on lean and agile practices and ultimately the potential implication on performance. The findings revealed that the technologies have a high impact on the practices. Although the impacts are of varying degrees, the analysis provides means to identify the technologies with the most significant impact on lean and agile SCM and the sets of practices with the greatest likelihood of being enabled by various digital technologies.Practical implicationsThe work presents various lean and agile practices that practitioners can deploy to operations, alongside the technologies that could support the implementation of the practices towards achieving the various performance measures. Also, it provides some guides for the digital solution providing companies towards understanding the SCM practices that can be improved upon by various digital technologies. This enables them to have more saleable proposals for intending companies who might be sceptical about transiting into the digital operation phase.Originality/valueThis is the first attempt to empirically address the connection between Industry 4.0 technologies and the integrated lean and agile strategies despite literature backing of the complementary nature of the two SCM strategies.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marco Bettiol ◽  
Mauro Capestro ◽  
Eleonora Di Maria ◽  
Stefano Micelli

PurposeIndustry 4.0 technologies are promising to increase manufacturing companies' performance through the new knowledge that such digital technologies allow to create and manage within the firm boundaries and through customer interactions. Despite the great attention on the Industry 4.0 adoption paths, little is known about the relationships with previous waves of digital technologies, namely, information and communication technologies (ICTs), and how different groups of both types of technologies link to knowledge and its related performances.Design/methodology/approachThe study employed a quantitative research design using a survey method. Submitting the questionnaire to entrepreneurs, chief operation officers or managers in charge of the operational and technological processes of Italian manufacturing firms, 206 respondents stated that their firm has adopted at least one of the seven Industry 4.0 technologies investigated.FindingsThe findings of the study highlight the positive relationship between ICT and Industry 4.0 technologies in terms of both intensity and groups of technologies (Web-based, Management and Manufacturing ICT; Operation, Customization and Data-processing 4.0), and how technologies affect knowledge-related performances in terms of products and processes, job-learning, product-related services and customer involvement.Originality/valueThis study is one of the first attempts to link groups of ICT to groups of Industry 4.0 technologies and to explore the effects in terms of knowledge-related performances as a measure of technology use. The study shows strong path dependency among ICT, Industry 4.0 and knowledge performance, enriching the literature on technological innovation and knowledge management.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lorenzo Ardito ◽  
Roberto Cerchione ◽  
Erica Mazzola ◽  
Elisabetta Raguseo

Purpose The effect of the transition toward digital technologies on today’s businesses (i.e. Industry 4.0 transition) is becoming increasingly relevant, and the number of studies that have examined this phenomenon has grown rapidly. However, systematizing the existing findings is still a challenge, from both a theoretical and a managerial point of view. In such a setting, the knowledge management (KM) discipline can provide guidance to address such a gap. Indeed, the implementation of fundamental digital technologies is reshaping how firms manage knowledge. Thus, this study aims to critically review the existing literature on Industry 4.0 from a KM perspective. Design/methodology/approach First, the authors defined a structuring framework to highlight the role of Industry 4.0 transition along with absorptive capacity (ACAP) processes (acquisition, assimilation, transformation and exploitation), while specifying what is being managed, that is data, information and/or (actual) knowledge, according to the data-information-knowledge (DIK) hierarchy. The authors then followed the systematic literature review methodology, which involves the use of explicit criteria to select publications to review and outline the stages a process has to follow to provide a transparent and replicable review and to analyze the existing literature according to the theoretical framework. This procedure yielded a final list of 150 papers. Findings By providing a clear picture of what scholars have studied so far on Industry 4.0 transition, in terms of KM, this literature review highlights that among all the studied digital technologies, the big data analytics technology is the one that has been explored the most in each phase of the ACAP process. A constructive body of research has also emerged in recent years around the role played by the internet of things, especially to explain the acquisition of data. On the other hand, some digital technologies, such as cyber security and smart manufacturing, have largely remained unaddressed. An explanation of the role of these technologies has been provided, from a KM perspective, together with the business implications. Originality/value This study is one of the first attempts to revise the literature on Industry 4.0 transition from a KM perspective, and it proposes a novel framework to read existing studies and on which to base new ones. Furthermore, the synthesis makes two main contributions. First, it provides a clear picture of the different digital technologies that support the four ACAP phases in relation to the DIK hierarchy. Accordingly, these results can emphasize what the literature has looked at so far, as well as which digital technologies have gained the most attention and their impacts in terms of KM. Second, the synthesis provides prescriptive considerations on the development of future research avenues, according to the proposed research framework.


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