Industry4 : current readiness



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