To assess smart manufacturing readiness by maturity model: a case study on Taiwan enterprises

Abstract

ABSTRACTIn 2013, the German government implemented the strategic initiative Industry 4.0 to establish itself as a leader in advanced manufacturing and the transformation to digitalisation. Numerous manufacturers continue to explore ways to evaluate and enhance their capabilities to tackle market competition. This empirical study adopts a maturity model that is based on the Economic Development Board’s Singapore Smart Industry Readiness Index. The model will allow companies to conduct self-assessments so that they can systematically and comprehensively align themselves with Industry 4.0. This study conducts a clustering analysis to explore the maturity of Industry 4.0 in Taiwan, the clustering’s index factors, and the impact of key factors on companies’ self-assessment. Classifying 80 Taiwan enterprises into four categories, it shows a significantly positive correlation among process, technology, and organisation. Further, a majority of the 80 companies tested under the maturity model still appear to be immature or partially mature, and needing much improvement and the re-evaluation of their transformation strategies related to Industry 4.0. Finally, the Singapore Smart Industry Readiness Index is suitable to conduct self-assessments in Taiwan-based enterprises. These findings could serve as useful maturity and grouping guidelines for practitioners and researchers.