A holistic model for Global Industry 4.0 readiness assessment

Abstract

PurposeTransformation to Industry 4.0 has become crucial for nations, and a coherent transformation strategy requires a comprehensive picture of current status and future vision. This study presents a comprehensive model for readiness assessment of nations based on rigorous analysis of several global indices and academic Industry 4.0 literature.Design/methodology/approachA holistic approach is taken considering overall socioeconomic development along with industrial innovation and seven readiness dimensions: enabling environment, human resource, infrastructure, ecological sustainability, innovation capability, cybersecurity and consumers. The indicators used for evaluation are standard metrics for which data are collected from reputed sources such as World Bank, United Nations Educational Scientific and Cultural Organization (UNESCO), World Economic Forum (WEF) and International Organization for Standardization (ISO), and hence internationally acceptable.FindingsThe formulated model is used to evaluate Industry 4.0 readiness of 126 economies that account for 98.25% of world’s gross national income. Observations show poor scores of most economies on innovation capability and cybersecurity dimension as compared to other 5 dimensions. In 75% countries, I4.0 readiness score is below 0.5 on a scale of 0–1(completely ready), highest being 0.65 for Denmark.Originality/valueA systematic literature review revealed lack of assessment models discussing a nation's current status or readiness for Industry 4.0. This academic study is first of its kind.