Medium-Sized Enterprises Have a Lot to Catch up with in Industry 4.0
In early April, the company BDO that deals with realization of in-depth surveys and analyses presented an interesting study dealing with the area of Industry 4.0 technologies implementation in medium-sized enterprises. We are bringing you clear conclusions of this study focused on the area of corporate targets in terms of technology implementation, main threats and an outline of HR solutions.
Soon, Industry 4.0 will completely change the way enterprises reach their profit. And we must say that the offer of business opportunities is rapidly narrowing. “Even in 2019, the enterprises that choose a waiting tactic, risk a significant decline in terms of their competitors and the market itself. And medium-sized enterprises are no exception here”, says Eskander Yavar, the national leader of Management & Technology Advisory Services, in his study.
What do the real numbers look like? While 99 % of medium sized enterprises’ management is familiar with the principles of Industry 4.0, only 5 % truly implement these strategies in their processes. A bit over 50 % of companies are in the phase of development and 25 % of them are planning to implement these strategies, although, they haven’t started yet.
What Other Findings Did the Study Bring?
The #1 Objective Is Diversification of Business Models
Of course, companies realize that the Industry 4.0 technologies have the potential to significantly change their business. If they think about the future, most of them (71 %) prefer diversification of business models over every other goal. Thus, they are able to meet their customers’ requirements that can no longer be satisfied with traditional means. Another goal (with 67 % preference) is increasing the processes effectivity and the market share growth.
The Biggest Obstacle to Implementing New Technologies Is Lack of Communication
Successful implementation of innovative technologies requires collaboration of all functional areas of the enterprise. Two out of three respondents see lack of communication as the greatest obstacle of further development. Then there are problems with integration of new technologies into the current systems, lack of skills and insufficient level of employees’ education, inefficient management and generally low level of investments in the enterprise.
The Greatest Threats are Represented by Enterprises outside the Mainstream
Even without any roots or history, technologically equipped newbies in the field are able to completely shatter the established field rules, either thanks to above-average adaptability or highly economical operation of their enterprise. Traditional enterprises are therefore often worried of not being able to invest in new Industry 4.0 technologies suitably and being pushed out of the market by new competitors.
Industry 4.0 Creates New Jobs
How do enterprises see the problematics of employment in terms of new technologies implementation? Here, three different approaches are applied significantly. Most enterprises (63 %) consider using third party services and a whole array of activities for supporting outsourcing new technology implementation. Some other enterprises are planning to hire new professionals and increase the qualification of their current employees.
As the research shows, if companies don’t go for transformation of their business and implementation of Industry 4.0 principles, they might suddenly lose their current position and be pushed away by technologically stronger competitors. It’s is not only about increasing the effectivity of processes and overall rationalization, but rather about staying in the field whatsoever.
When considering suitable procedures and technologies during the implementation of Industry 4.0 principles, it’s always needed to start with a thorough analysis of the current state and based on the findings, suggest and test available solutions. The result will be finding an optimal risk-free solution.
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