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Industry is at risk of missing out on growth opportunities in the current recovery, according to the research from Cranfield University and management consultancy Vendigital, with most Industry 4.0 projects ‘fragmented’ and only at initial stages.
More than half (56%) of senior decision makers at the 38 surveyed companies said they had achieved digital transformation in certain business functions, but further analysis found that ‘very few’ had taken the next step by integrating the technologies across all business functions.
“UK manufacturers are aware of the benefits that Industry 4.0 technologies can bring, in terms of driving productivity and streamlining business processes,” said Alec McCullie, partner and digital technology specialist at Vendigital.
“However, the distinct nature of the technologies and the perceived complexities associated with their application can make it difficult to get a clear view of the benefits they bring.”
It is not unusual for businesses to have several overlapping trials underway at once, he added, making it difficult to see the overall benefits.
While the research showed that senior-level decision makers have a sound knowledge of the full range of Industry 4.0 technologies – everything from the Internet of Things (IoT) and big data, to cybersecurity and augmented reality – a lack of analytical skills is holding back progress. The research found that 30% of companies have not made a formal assessment of the application of the IoT in their manufacturing processes, and a further 30% are at testing stage. Only 7% of respondents had completed an assessment of its potential benefits.
“We can see from the research data that tech trials are happening, but many of the businesses we spoke to lack access to the dynamic data and capabilities needed to support a business case for further investment,” said McCullie.
The survey found that the main barriers to investment are linked to funding and a lack of digital skills. Resistance to change was seen as equally important as a lack of digital skills.
“From a cultural perspective, some businesses are struggling to make digital transformation an empowering experience for employees,” said McCullie. “Some may feel that their jobs are being undermined by the digital technologies under trial, rather than viewing their introduction as an opportunity for skills development and an acceleration of strategic objectives. Digital transformation programmes should be viewed as an opportunity to create businesses that are more dynamic, innovative and inclusive.”
Businesses should introduce bespoke digital transformation plans to realise the full potential of Industry 4.0, Vendigital said.
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