Industry4 : current readiness
Current number of respondents: 335
Overall Industry 4 readiness levels
Companies are generally at an intermediate level (level 2) of Industry 4 readiness, with strategy and organisation being the least ready, and supply chain the most ready
There are three types of companies covered by the Industry 4 readiness. These are B2B (business to business), B2C (business to consumer) and Governments.
Products and services
| Readiness level | Level 1 Beginner |
Level 2 Intermediate |
Level 3 Experienced |
Level 4 Expert |
Don't know | Not relevant |
|---|---|---|---|---|---|---|
| Product customisation | Product allows for no individualisation, standardised mass production | Majority of products are made in large batch sizes with limited late differentiation | Products can be largely customised but still have standardised base | Late differentiation available for most make-to-order products (batch size 1) | Don't know | Not relevant |
| Digital features of products | Products show only physical value | Products show value only from intellectual property licensing | Products exhibit some digital features and value from intellectual property licensing | Products exhibit high digital features and value from intellectual property licensing | Don't know | Not relevant |
| Data-driven services | Data-driven services are offered without customer integration | Data-driven services are offered with little customer integration | Data-driven services are offered with customer integration | Data-driven services are fully integrated with the customer | Don't know | Not relevant |
| Level of product data usage | Data is not used | 0-20% of collected data is used | 20-50% of collected data is used | More than 50% of collected data is used | Don't know | Not relevant |
| Share of revenue | Data-driven services account for an initial share of revenue (<2.5%) | Data-driven services account for a moderate share of revenue (2.5-7.5%) | Data-driven services account for a significant share of revenue (7.5-10%) | Data-driven services play an important role in revenue (>10%) | Don't know | Not relevant |
Manufacturing and operation
| Readiness level | Level 1 Beginner |
Level 2 Intermediate |
Level 3 Experienced |
Level 4 Expert |
Don't know | Not relevant |
|---|---|---|---|---|---|---|
| Automation | Few machines can be controlled through automation | Some machines and system infrastructures can be controlled through automation | Most machines and system infrastructures can be controlled through automation | Machines and systems can be controlled completely through automation | Don't know | Not relevant |
| Machine and operation system integration (M2M) | Machines and systems have no M2M capability | Machines and systems are to some extent interoperable | Machines and systems are partially integrated | Machines and systems are fully integrated | Don't know | Not relevant |
| Equipment readiness for Industry 4 | Significant overhaul required to meet Industry 4 model | Some machines and systems can be upgraded | Machines already meet some of the requirements and can be upgraded where required | Machines and systems already meet all future requirements | Don't know | Not relevant |
| Autonomously guided workpieces | Autonomously guided workpieces are not in use | Autonomously guided workpieces are not in use, but there are pilots underway | Autonomously guided workpieces used in select-ed areas | Autonomously guided workpieces are widely adopted | Don't know | Not relevant |
| Self-optimising processes | Self-optimisation processes are not in use | Self-optimising processes are not in use, but there are pilots in more advanced areas of the business | Self-optimising processes are used in selected areas | Self-optimising processes are widely used | Don't know | Not relevant |
| Digital modelling | No digital modelling | Some processes use digital modelling | Most processes use digital modelling | Complete digital modelling used for all relevant processes | Don't know | Not relevant |
| Operations data collection | Data is collected manually when required, e.g. sampling for quality control | Required data is collected digitally in certain areas | Comprehensive digital data collection in multiple areas | Comprehensive automated digital data collection across the entire process | Don't know | Not relevant |
| Operations data usage | Data is only used for quality and regulatory purposes | Some data is used to control processes | Some data is used to control and optimise processes, e.g. predictive maintenance | All data is used not only to optimise processes, but also for decision making | Don't know | Not relevant |
| Cloud solution usage | Cloud solutions not in use | Initial solutions planned for cloud-based software, data storage and data analysis | Pilot solutions implemented in some areas of the business | Multiple solutions implemented across the business | Don't know | Not relevant |
| IT and data security | IT security solutions are planned | IT security solutions have been partially implemented | Comprehensive IT security solutions have been implemented with plans developed to close any gaps | IT security solutions have been implemented for all relevant areas and are reviewed frequently to ensure compliance | Don't know | Not relevant |
Strategy and organisation
| Readiness level | Level 1 Beginner |
Level 2 Intermediate |
Level 3 Experienced |
Level 4 Expert |
Don't know | Not relevant |
|---|---|---|---|---|---|---|
| Degree of strategy implementation | Industry 4 is recognised at departmental level but is not integrated into the strategy | Industry 4 is included in the business strategy | Industry 4 strategy has been communicated to the business and is widely understood | Industry 4 strategy has been implemented across the business | Don't know | Not relevant |
| Measurement | KPIs are not focused around Industry 4 | Structured set of business metrics exist, with some measurement of Industry 4 drivers | Industry 4 metrics are widely understood in the business and used in monthly reporting | Business metrics and personal development plans are focused around Industry 4 objectives | Don't know | Not relevant |
| Investments | Initial Industry 4 investments in one business area | Industry 4 investments in more advanced business areas | Industry 4 investments in multiple business areas | Industry 4 investments across the entire business | Don't know | Not relevant |
| People capabilities | Employees have little or no experience with digital technologies | Technology focused areas of the business have employees with some digital skills | Developed digital and data analysis skills across most areas of the business, e.g. production | Leading edge digital and analytics skills across the business | Don't know | Not relevant |
| Collaboration | The business operates in functional silos | There is limited interaction between departments, e.g. S&OP process | Departments are open to cross functional collaboration | Departments are open to cross company collaboration to drive improvements | Don't know | Not relevant |
| Leadership | Leadership team do not recognise the value of Industry 4 investments | Leadership team are investigating potential Industry 4 benefits | Leadership team recognise the financial benefits to be obtained through Industry 4 and are developing plans to invest | Widespread support for Industry 4 within both the leadership team and across the wider business | Don't know | Not relevant |
| Finance | No sizeable Industry 4 investment | No ongoing review of cost/benefit analysis for Industry 4 investment | Annual cost/benefit analysis of Industry 4 investment | Quarterly cost/benefit analysis of Industry 4 investment | Don't know | Not relevant |
Supply chain
| Readiness level | Level 1 Beginner |
Level 2 Intermediate |
Level 3 Experienced |
Level 4 Expert |
Don't know | Not relevant |
|---|---|---|---|---|---|---|
| Inventory control using real-time data management | Inventory levels are understood | Computer database is used which is manually updated with inventory levels | Computer database used with smart devices updating inventory levels | Real-time database which is updated by smart devices | Don't know | Not relevant |
| Supply chain integration | Ad hoc reactive communication with suppliers and customers | Basic communication and data sharing where required with suppliers and customers | Data transfer between key strategic suppliers/customers (e.g. customer inventory levels) | Fully integrated systems with suppliers/customers for appropriate processes (e.g. real-time integrated planning | Don't know | Not relevant |
| Supply chain visibility | No integration with suppliers or customers | Site location, capacity, inventory and operations are visible between first tier suppliers and customers | Site location, capacity, inventory and operations are visible throughout supply chain | Site location, capacity, inventory and operations are visible in real-time throughout supply chain and used for monitoring and optimisation | Don't know | Not relevant |
| Supply chain flexibility | Slow response to market changes | Moderate response to market changes and general customer requirements shifts | Moderate response to changes in market environment and individual customer requirements | Immediate response to changes in market environment and individual customer requirements | Don't know | Not relevant |
| Lead times | Long materials lead time resulting in high inventory levels | Improvements have been identified to reduce lead times for some materials | Some improvements have been implemented to reduce lead times on key materials | Differentiated stocking policies and lead times to meet make-to-order efficiently | Don't know | Not relevant |
Business model
| Readiness level | Level 1 Beginner |
Level 2 Intermediate |
Level 3 Experienced |
Level 4 Expert |
Don't know | Not relevant |
|---|---|---|---|---|---|---|
| As a service business model | No awareness | Aware of concept with some initial plans for development | High awareness and implementation plans are in development | As a service has been implemented and is being offered to the customer | Don't know | Not relevant |
| Data driven decisions | Data is not widely analysed | Some data is analysed and features in key business reports to review performance | Most data is analysed and the result is considered when making business decisions | All relevant data is analysed and informs business decisions | Don't know | Not relevant |
| Real-time tracking | Limited product tracking | Product can be tracked as it moves between manufacturing and internal distribution sites | Product can be tracked through manufacturing and distribution until it reaches the customers distribution centre | Product can be tracked along the complete lifecycle | Don't know | Not relevant |
| Real-time and automated scheduling | Equipment is manually maintained in line with the maintenance schedule | Some machines alert operators of a performance issue which enables them to manually schedule a maintenance task | Some machines are self-diagnosing, automatically passing information to the maintenance scheduling system | Machines are generally self-diagnosing and the maintenance schedule adjusts itself based on real time data inputs from the machine | Don't know | Not relevant |
| Integrated marketing channels | Online presence is separated from offline channels | Integration within the online and offline channels but not between them | Integrated channels and individualised customer approach | Integrated customer experience management across all channels | Don't know | Not relevant |
| IT supported business | Main business process supported by IT systems | Some areas of the business are supported by IT systems and integrated | Complete IT support of processes but not fully integrated | IT systems support all company processes and are integrated | Don't know | Not relevant |