Reindustrialization Using Industry 4.0 Maturity Models in Msmes and Tenets of Digital Transformation Phases

Abstract

In today's competitive world, sustainability is a key element for any organization. Integrating digital technologies to accelerate process and sustainability aligned to key elements of any organization like - people, process, strategy, technologies, revenues and extension of the organization to accelerate process is called Digital Transformation. Digital Transformation (DX) and its disruptive technologies has its own attached benefits that provides multiple opportunities and possibilities to MSMEs to promote their growth. Industry has moved from mechanized system to virtual world leveraging industry 4.0 practices like AI, machine learning, strong network connection and ensuring effective digital transformation from physical world to virtual world. Digital connectivity defines the pillar for adoption of advance technologies required for industrial revolution. Small and medium sized organization/manufacturing unit has great impact on country's economic growth and indirect impact on large scale companies. Micro, small and medium industries can be moved to digitization by leveraging industry 4.0 practices and maturity model. This paper suggest that fourth industry is growing exponentially in recent past, and it drives a need to derive the structural model technique to model relationship between organization and its sustainability functions. There is little study done on how small-scale companies can scale the digital transformation from conventional model to interconnected and virtual model. Studies are conducted on readiness level of the MSMEs in adopting Industry 4.0 standard. This paper discuss questions like how far the MSMEs are ready for digital transformation. Authors classified the MSMEs into various groups depending on level of Maturity parameter I4.0 measures, using the index aligned to industry 4.0 practices. This study finds out different dimensions suggested for development of industry 4.0 maturity and readiness model which need attention when moving forward for Industry 4.0 and its adoption and corresponding future framework. They are Strategy, Organization, Supply Chain, Manufacturing, Operations, Customers, Product, Services, Business Model, IT, People, Culture to assess an organization's I4.0 maturity and readiness levels.