OUTCOMES OF AN EXPERT SURVEY: ARE SINGAPORE'S MANUFACTURING SMALL AND MEDIUM ENTERPRISES READY TO EMBRACE INDUSTRY 4.0?

Abstract

Industry 4 0 encompasses adopting opportunities from end-to-end digitalisation with connected computers and increasingly autonomous automation systems equipped with intelligent machine learning algorithms that control the robotics without much input from humans Smart manufacturing technologies (a part of the smart industry, an extension of Industry 4 0 initiatives and implementation) involve automating various processes It aims to connect various units in real-time while enhancing profitability by reducing costs, increasing labour productivity, and improving overall efficiency The impetus for our paper is the assumption that the adoption of smart manufacturing technologies such as advanced robotics, cyber-physical systems, or the Internet of Things (IoT) continues to be a challenge for Small and Medium Enterprise (SME) manufacturing firms in Singapore Industry 4 0 adoption issues include significant capital investment, developing technical skills, recruiting new talent, re-skilling of the workforce, training needs, top management support, etc But the traditional manufacturing model is fast evolving Ultimately, adopting the right enabling technologies in a phased manner with proper planning remains a critical factor for the success of Industry 4 0 initiatives This paper contributes to the minimal Asian management literature about Industry 4 0 matters in SMEs by interviewing eight key experts who are very knowledgeable about the subject matter The qualitative study sheds light on the drivers and barriers to better understand current business dynamics, potential issues, focus areas, and initiatives to smoothen this implementation, to help catapult local manufacturers to the next level A structured questionnaire was designed based on the current body of knowledge to conduct qualitative semi-structured interviews with key specialists and decision-makers across Government agencies, Institutes of Higher Learnings (IHL's), suppliers/providers of Industry 4 0 technology, business associations, and the SME sector The analysis of the interviews suggests that factors or drivers such as technology push by the Government with robust funding and training support, skilled labour shortages including imported labour dependence, productivity and efficiency issues, the pressure to innovate business models due to increased competition, and the impact of Covid-19 are propelling SMEs to adopt Industry 4 0 Some of the barriers include high investment costs and return on investment concerns, capability concerns, mindset issues, and lack of ecosystem concerns The extent to which local SMEs are ready for Industry 4 0 will be further examined during the 2nd phase of the research project © Ibero-American WWW / Internet Conference 2020