The fourth industrial revolution is well underway. Due to the rapid development in today’s technology such as Cloud Computing, Internet of Things (IoT), Big Data, among others, businesses are embracing the digital age by automizing their production lines and moving their internal processes online. However, while we do know when it will happen, we do not know where it will begin, which changes will come into effect first, and who will come out on top of this.
To better understand the impacts, challenges, and opportunities of Industry 4.0, specifically in Malaysia, we seek to answer the question from an industry specific, companies’ point of view by conducting a survey with more than ~200 companies across selected industries in Malaysia on the expected impacts of Industry 4.0, focusing on three key sectors: Manufacturing, Logistics and Healthcare.
The cross sector study focuses on understanding four main themes:
- The expected impacts on the respective industries as well as the companies’ themselves. At least 45% of respondents believe Industry 4.0 will impact the industry they operate in, while 40% vote it will impact their own business in the next five years
- The view on most relevant technologies for each sector. Out of all the technologies surveyed, only three stand out the most: Cloud Computing, Big Data Analytics, and the Internet of Things received the highest scores.
- The implications on business challenges and opportunities. Around 70% of respondents vote that the opportunity to operate better learn more (which are high impact areas) come from the Healthcare and Logistics industries.
- Key corporate functions of each firm’s perceived readiness now and five years ahead. The current readiness amongst companies assessed was rather low to moderate and expect this to change only moderately in the next five years.
The Solidiance Readiness Survey results are as follow:
- Manufacturing: seems to expect a moderately high impact of the fourth industrial revolution and to see the internet of things as the most impacting technology and focuses on the opportunity to operate better, the requirement to serve faster and the challenge of having to change their operation. The industry shows the highest average scores for perceived current readiness and likelihood - ‘Production & Manufacturing’ is scored as the strongest area, the biggest challenge to readiness will be apparently funding and change management.
- Logistics: shows the highest scores to the expected impact of Industry 4.0 and clearly focuses on cloud computing as the most impactful technology expecting significant requirements coming from this in terms of having to serve faster and cheaper yet also seeing an opportunity in being able to operate better. The logistics industry gives itself the lowest scoring in terms of current and future readiness among our three focus sectors. Its biggest challenges for industry 4.0 readiness it sees in funding, talent and security.
- Healthcare: sees the lowest, yet still very significant, impact score for the industry, emphasizes in terms of impacting technologies mostly Big Data Analytics and sees mostly opportunities ahead in terms of operating better, being able to learn more and being able to offer new products. Healthcare, just like logistics, sees itself neither very ready today nor very much five years from now, hence with little change expected. The greatest challenges appear to be funding and change management.