Systematic analysis on industry 4.0 implementation in SME: key succes factors and challenges

Selamat Walmanto Hia

doi:10.52453/aic.v1iOctober.442

Authors

Selamat Walmanto Hia PT. ABA

DOI:

https://doi.org/10.52453/aic.v1iOctober.442

Keywords:

industry 4.0, smes, success factor, technology

Abstract

The implementation of Industry 4.0 (I4.0) technologies in Small and Medium-sized Enterprises (SMEs) is crucial for their competitiveness and sustainability. However, the adoption of I4.0 is often hindered by various challenges. This research aims to identify the key success factors and barrier associated with the implementation of I4.0 in SMEs. A comprehensive literature review was conducted to analyze the existing research on I4.0 and its applications in SMEs. The study found that financial investment, management support, employee capability, are key success factors for the implementation of I4.0 in SMEs. Additionally, human capital readiness, flexibility to adopt the changes, prior study before embarking I4.0, and understand the benefit of digital technologies are crucial for successful adoption of I4.0 technologies. The study also highlights the challenges faced by SMEs in implementing I4.0, including financial challenges, lack of knowledge, insufficient training, reluctant to change, lack of management support and data security. The findings of this study provide valuable insights for SMEs and policymakers to develop effective strategies for the implementation of I4.0 and to overcome the associated challenges.

Author Biography

Selamat Walmanto Hia, PT. ABA

Operational for Excellence Department

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