Contact Us

Please leave a message

×

Five considerations for SMEs embarking on Industry 4.0

Five considerations for SMEs embarking on Industry 4.0

The COVID-19 pandemic continues to be a challenge for small and medium-sized enterprises (SMEs). However, even before this, businesses – especially those involved in the manufacturing sectors – faced numerous challenges and had to constantly innovate to remain competitive or to sustain their operations.

This is where Industry 4.0 comes in. It provides an opportunity for these businesses to adopt new technologies into their operations, leveraging the digitization of industrial processes, enabling real-time data interchange and boosting production flexibility while increasing the speed, productivity and quality of their production processes.

Here are five considerations for small and medium-sized companies when adopting Industry 4.0.

There are always plenty of opportunities to optimize business processes. While you do not need to jump straight into high-tech, like the internet of things (IoT) technology, right away, it is important to start somewhere. A first step is to review your existing ecosystem to see what you’re not doing so well and focus on one weak area to improve on. For example, we have seen many companies look at how to:

  • Save energy consumption
  • Improve packing systems
  • Enhance back-office systems
  • Upgrade inventory management systems
  • Adopt virtual meetings to increase efficiency

It is important to keep in mind that the integration needs to be flexible so that you can upgrade easily into future enhancements.

Very often when organizations look at the IoT projects available to them, they find them overly ambitious or become fearful because the technology, software, equipment, platforms, hardware and programming language all are outside of their present skillsets. While the systems and technology form the tools for progress, the most important aspect of technology adoption are the people and the company culture. People need to stop being afraid of technology and start adopting these new ways of working, reskilling themselves and stepping out of their comfort zone to successfully embark on Industry 4.0.

Across Asia, the adoption of Industry 4.0 is still in its infancy for most industries. And one thing in common about the projects is that they have nothing is in common. They are also very diverse in application and functions. For example, a food and beverage manufacturer in Malaysia who was keen to integrate advanced technology took over three years to monitor their entire production line. This included monitoring temperature levels, premise cleanliness, packing production numbers and packing optimization. And they undertook the project using only three in-house personnel.

 

Another example is a manufacturer who wanted to have better monitoring systems for their metal cutting machines. They needed to know when the spindles in these machines would need maintenance as they cannot afford for the machinery to break down. With DKSH’s preventive diagnostics systems using historic data and leading software integration, we provided them with the necessary solutions to preempt and resolve any potential machine downtime. 

 

Across Asia, there are also a growing number of local distribution companies becoming more knowledgeable about their customers by implementing advanced customer relations management systems into their operations.

In such a fast-evolving environment, building a peer network is critical for the success of technology adoption. We need to acknowledge that in the IoT era, one cannot know it all. Having peers with previous experiences and specific domains of knowledge will help you build bridges, save a lot of trial and error, and speed up the implementation process. And the best way to build a peer network is through engaging with relevant associations and groups.

As most businesses may not have the specific skillsets in IT or Industry 4.0, it is helpful to seek out an experienced solutions provider who understands the specific needs of your business, is empathetic and respects your expectations. Make sure that your solutions provider is always transparent with you on implementation planning, such as what are the critical applications to start working on and what you can add on in the future.

For SMEs, a lack of experience and resources to create and implement Industry 4.0 technologies and IoT applications is common. But in constantly evolving manufacturing sectors, having these tools can help boost the competitiveness of a business, improve productivity, increase reliability, save costs and help carve out many new opportunities in the markets they operate in.

You do not have to embark on this journey alone. Reach out to us and find out how DKSH can help your business take your next step into Industry 4.0.

Sources:

Robert Puschmann

About the author

Robert Puschmann joined DKSH in August 2014 and leads the Business Unit Technology in Singapore, Malaysia and Vietnam. He has been refocusing organizations on performance and profitable growth by strategically driving systems and structure implementations in sales and service organizations over the last 10 years across Asia, leading to increased market coverage, market share growth and customer value add within the region. For the last 5 years Robert lives in Singapore with his wife and two kids.