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Procedia CIRP 00 (2017)


Procedia 000–000
CIRP 96 (2021) 201–206
www.elsevier.com/locate/procedia
CIRPe 2020 – 8th CIRP Global Web Conference – Flexible Mass Customisation
CIRPe 2020 – 8th CIRP Global Web Conference – Flexible Mass Customisation
Key Readiness Indicators To Assess The Digital Level of Manufacturing SMEs
Key Readiness Indicators To Assess
28th CIRP Design TheMay
Conference, Digital LevelFrance
2018, Nantes, of Manufacturing SMEs
Riccardo Brozzi *, Michael Riedl ,Dominik Matt
a a a,b

A new methodology to analyze


Riccardo
Fraunhofer Brozzi a
*,the
Italia Research
a Michael functional
s.c.a.r.l., Riedl13/A,
A.-Volta-Str.
a
andBolzano,
,Dominik
39100 physical
Matt a,b
Italy architecture of
existing products for anE-mail
assembly oriented product family identification
b
Industrial Engineering and Automation (IEA), Faculty of Science and Technology, Free University of Bozen Bolzano, Universitätsplatz 5, 39100 Bolzano, Italy
Fraunhofer
a
Italia Research s.c.a.r.l., A.-Volta-Str. 13/A, 39100 Bolzano, Italy
* Industrial
b
Corresponding author. Tel.:
Engineering +39-0471-196-6900;
and Automation (IEA), Faculty of address: riccardo.brozzi@fraunhofer.it
Science and Technology, Free University of Bozen Bolzano, Universitätsplatz 5, 39100 Bolzano, Italy

Paul Stief *, Jean-Yves Dantan, Alain Etienne, Ali Siadat


* Corresponding author. Tel.: +39-0471-196-6900; E-mail address: riccardo.brozzi@fraunhofer.it

Abstract École Nationale Supérieure d’Arts et Métiers, Arts et Métiers ParisTech, LCFC EA 4495, 4 Rue Augustin Fresnel, Metz 57078, France
Abstract
*The assessmentauthor.
Corresponding of theTel.:
digital
+33level is considered
3 87 37 54 30; E-mailpivotal,
address:for manufacturing companies including Small- and Medium-Sized Enterprises (SME),
paul.stief@ensam.eu
at the outset of implementing Industry 4.0 solutions in their digital strategies. Several self-assessment tools exist measuring the digital readiness
The assessment of the digital level is considered pivotal, for manufacturing companies including Small- and Medium-Sized Enterprises (SME),
and maturity, returning the overall digital level of the companies. On the one hand, the application of such tools proved to be effective, as it
at the outset of implementing Industry 4.0 solutions in their digital strategies. Several self-assessment tools exist measuring the digital readiness
enables companies to systematically reflect about their digital level, strengths and weaknesses as well as opportunities and challenges to consider
and maturity, returning the overall digital level of the companies. On the one hand, the application of such tools proved to be effective, as it
prior to the implementation of Industry 4.0. On the other hand, particularly for SME facing higher challenges compared to large companies in the
Abstract
enables companies to systematically reflect about their digital level, strengths and weaknesses as well as opportunities and challenges to consider
management of digital transformation, relying exclusively on the knowledge of their overall digital level may offer limited elements to
prior to the implementation of Industry 4.0. On the other hand, particularly for SME facing higher challenges compared to large companies in the
Instrategically
management
orient environment,
today’s business decision-making
of digital transformation, the process in this more
trendrelying
towards field. product
exclusively
The present study
variety
on the andpresents
knowledge
the methodology
customization is unbroken.
of their overall
used to develop,
digital Due
leveltomay
within the framework
this offer
development, the need of
limited elements to
a self-assessment
agile and tailoredproduction
reconfigurable to the requirements
systems of SME, to
emerged a set of Key
cope with Readiness
various Indicators
products and(KRI),
productdeepening
families. the
To interpretation
design and of the overall
optimize digital
production
strategically orient decision-making process in this field. The present study presents the methodology used to develop, within the framework of
level of as
systems thewell
companies
astailoredin specific
to choose areas ofproduct
therequirements
optimal interventions.
matches, Theproduct
KRI focus on themethods
analysis digital readiness of companies in terms
of theofknown
strategy, technological
a self-assessment to the of SME, a set of Key Readiness Indicatorsare needed.
(KRI), Indeed,the
deepening most
interpretation methods
of the overall aim to
digital
requirements,
analyze a productawareness
or one about family
product digital ontrends,
the and competences
physical level. of employees,
Different product to offerhowever,
families, complementary
may information
differ largely in to easeofthe
terms the definition
number andof
level of the companies in specific areas of interventions. The KRI focus on the digital readiness of companies in terms of strategy, technological
strategies
nature of for technological
components. This implementation
fact impedes an inefficient
SME. Besides the methodological
comparison and choice of approach employed,
appropriate product the study
family shows the distribution
combinations for the of KRI
production
requirements, awareness about digital trends, and competences of employees, to offer complementary information to ease the definition of
within aAsample
system. of manufacturing companies located in theproducts
Marche inregion
view (Italy) taking part to thephysical
proposed self-assessment. The emerging
strategies new methodology
for technological is proposed
implementation to analyze
in SME. existing
Besides the methodologicalof their functional
approach and
employed, architecture.
the study shows theThe aim is to
distribution cluster
of KRI
dynamics
these of the
products in distribution
new assembly of KRI according
oriented product tofamilies
varying forcompany
the characteristics
optimization of such asassembly
existing size, turnover
lines and
and overall
the digital
creation oflevel will
future be presented
reconfigurable
within a sample of manufacturing companies located in the Marche region (Italy) taking part to the proposed self-assessment. The emerging
and discussed,
assembly together
Basedwith the main implications therelated to the use of of
KRI
thefor strategicis planning ofFunctional
Industry 4.0 in manufacturing companies.
dynamicssystems.
of the distributionon Datum
of KRI Flow Chain,
according physical
to varying structure
company products
characteristics such as analyzed.
size, turnover subassemblies
and overall digital levelare identified,
will and
be presented
aand
functional analysis is performed. Moreover, a hybrid functional and physical architecture graph (HyFPAG) is
discussed, together with the main implications related to the use of KRI for strategic planning of Industry 4.0 in manufacturing companies. the output which depicts the
© 2020 The
similarity Authors,
between Published
product by Elsevier
families B.V. design support to both, production system planners and product designers. An illustrative
by providing
© 2021
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methodology. An industrial case study on two product families of steering columns of
© 2020
This The
is an Authors,
open access Published
article by
under Elsevier
the CCout B.V.
BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0)
Peer review
thyssenkrupp under
Presta the responsibility
France is then of the
carried scientific
to give committee
a first of the evaluation
industrial CIRPe 2020 of Global Web Conference
the proposed approach.
This is an open
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under article under
responsibility of the CC BY-NC-ND
scientific committeelicense (http://creativecommons.org/licenses/by-nc-nd/4.0/)
of the 8th CIRP Global Web Conference – Flexible Mass Customisation
©Peer
2017 The Authors. Published by Elsevier B.V.
review under the responsibility of the scientific committee of the CIRPe 2020 Global Web Conference
Keywords: Industry
Peer-review 4.0; Assessment;
under responsibility ofDigital Level; SME;
the scientific Key Readiness
committee Indicators;
of the 28th CIRPField
DesignStudy;
Conference 2018.
Keywords: Industry 4.0; Assessment; Digital Level; SME; Key Readiness Indicators; Field Study;
Keywords: Assembly; Design method; Family identification

1. Introduction highly customized production model (Mass Customization).


1. Introduction The achievement
highly customizedof production
this ambitious goal(Mass
model also requires SMEs to
Customization).
1. Introduction
Manufacturing companies in general, and SMEs in specific, of the
adopt product
Key range
Enabling and characteristics
Technologies for
The achievement of this ambitious goal also requires SMEsmanufactured
Industry 4.0, and/or
while
to
faceManufacturing
the challenge companies
of adaptingin existing strategies, towards
general, and SMEs in specific, more assembled
rethinking in this
theirsystem. In
business this context,
models,
adopt Key Enabling Technologies for Industry 4.0, while the main challenge
production, in
and
Due
flexible
face to the of
production
the challenge fast development
processes,
adapting following
existing in the
theintroduction
strategies, domainmore
towards of
of modelling
organizational
rethinking andtheir
analysis
processes, is now
business to not onlytheir
ensure
models, to production,
cope with single
integration in
and
communication
Cyber-Physical and
Systems an ongoing
(CPS). trend
Encompassing of
flexible production processes, following the introduction of digitization
a wide rangeand
of products,
increasinglya limited product
digitalized andrange or
global existing
supply
organizational processes, to ensure their integration in product
chains. families,
In recent
digitalization,
hardware
Cyber-Physical andmanufacturing
software(CPS).
Systems enterprises
systems, CPSarecontribute
Encompassing facing
a wide important
to the
range of but alsoanto increasing
years,
increasingly be able to analyze
digitalizedamountandandof to compare
scientific
global supply products
research to define
chains.in In
this field
recent
challenges
intelligent in today’s
digitalization market
of environments:
processes
hardware and software systems, CPS contribute to the and a
production continuing
systems, new product
agrees about families.
the It
potentialcanof be observed
Industry 4.0 that
for classical
SMEs
years, an increasing amount of scientific research in this field [2] existing
and the
tendency
allowing towards
a reduction
continuous of product
exchange of development
information
intelligent digitalization of processes and production systems, times
from and
the product
higher families
number ofare regrouped
challenges in
to function
overcome, of clients
compared
agrees about the potential of Industry 4.0 for SMEs [2] and the or features.
to larger
shortened
allowing product
physical world tolifecycles.
a continuous In addition,
the digital
exchange world thereThis
[1]. is anwill
of information increasing
from the However,
enable companies,
higher assembly
number in of oriented
thechallenges product
implementation families
of relating
to overcome, are hardly totolarger
concepts
compared find.
and
demand
companies of customization,
to progressively being at the
increase same
physical world to the digital world [1]. This will enable time
product in a global
complexity, On the
technologies product
[3]. family
Besides level,
financialproducts
and differ
knowledge
companies, in the implementation of relating concepts and mainly in two
constraints
competition
companies with
without compromising competitors
to progressively all
system over theproduct
world.enabling
efficiency,
increase This trend,
complexity,the main characteristics:
[4], the
technologieslack[3]. (i) thefinancial
of Besides
a company number of components
specific
and and
digital transformation
knowledge (ii) the
constraints
transition
which is from
inducing the mass
the production
development
without compromising system efficiency, enabling the model
from to
macroa flexible
to and
micro type of components (e.g. mechanical, electrical,
[4], the lack of a company specific digital transformation electronical).
markets,
transitionresults
from the in diminished
mass production lot sizes
model duetotoa augmenting
flexible and Classical methodologies considering mainly single products
product varieties (high-volume to low-volume production) [1]. or solitary, already existing product families analyze the
2212-8271 © 2020 The Authors, Published by Elsevier B.V.
To cope with this augmenting variety as well as to be able to product structure on a physical level (components level) which
This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
identify
2212-8271 possible
© 2020 The optimization
Authors, Published potentials
by Elsevier in
B.V. the existing
Peer review under the responsibility of the scientific committee of the CIRPe 2020 causesGlobal Web difficulties
Conference regarding an efficient definition and
This is an open
production access article
system, under the CCtoBY-NC-ND
it is important license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
have a precise knowledge comparison of different product families. Addressing this
Peer review under the responsibility of the scientific committee of the CIRPe 2020 Global Web Conference
2212-8271 © 2021 The Authors. Published by Elsevier B.V.
This is an©open
2212-8271 2017access article Published
The Authors. under theby CC BY-NC-ND
Elsevier B.V. license (https://creativecommons.org/licenses/by-nc-nd/4.0)
Peer-review
Peer-review under
under responsibility
responsibility of scientific
of the the scientific committee
committee of the of theCIRP
28th 8th CIRP
DesignGlobal Web2018.
Conference Conference – Flexible Mass Customisation
10.1016/j.procir.2021.01.075
202 Riccardo Brozzi et al. / Procedia CIRP 96 (2021) 201–206
2 Author name / Procedia CIRP 00 (2019) 000–000

strategy are the main challenges [5], limiting the transition of companies evaluating their digital readiness level across the
Industry 4.0 in SMEs to a mere theoretical level. following dimensions, namely (D1) Strategy, (D2) processes,
To support SMEs in the technological and organizational (D3) Industry 4.0, (D4) employees, (D5) Information
planning of Industry 4.0, the assessment of the digital level of Technology (IT) and data security. The resulting readiness level
the company is found to be the starting point for an effective was calculated taking the overall-average of selected five-
strategic development [6]. Consulting companies, universities points Likert scale questions, ranging from 1 (low
and applied research centers have developed various readiness implementation level) to 5 (high implementation level), in each
and maturity models, aiming at positioning the companies in considered dimension. The outcome of the assessment results
the context of Industry 4.0 and enabling the definition of action in a three-level readiness model, classifying companies as (i)
plans tailored to their specific requirements. Notably, “Digital Newcomers” (low digital level), (ii) “Companies in
[7,8,9,10,11,12], offered systematic recent reviews of the main Transition” (Medium digital level) and (iii) “Top Performers”
exiting tools readiness and maturity models, usually proposed (high digital level). Furthermore, based on the concept of Key
as self-assessment surveys. These models, although not all Performance Indicators (KPI) [15] a set of Key Readiness
exclusively targeting SMEs, share the similar main structures, Indicators (KRI) were derived considering additional metrics
namely dimensions of analysis to be assessed, such as among from the survey, measuring the preparation of companies
others, “Strategy”, “Processes”, “Products”, “Cyber Security”, toward industry 4.0 with a focus on strategy, technological
rating systems, metrics for the assessment of the questions and requirements, awareness about digital trends, and competences
the resulting maturity level. The latter represents the most of employees. The KRI convey additional information useful to
critical information for SMEs, as it conveys the digital starting deepen the interpretation of the overall digital readiness level
situation of the company to consider toward the adoption of of individual companies. They have been chosen among these
Industry 4.0 solutions. Against this background, [8] argue that specific fields, to obtain further parameters for the evaluation in
incomplete definition of maturity level might confuse SMEs in relation to the main challenges that SMEs face toward digital
the proper interpretation of results. transformation, such as lack of strategy [5] (“KRI-Strategy),
To offer additional information, easing the interpretation of limited awareness of relevant technological trends and the
results, relating to the digital readiness, the present paper implementation of Industry 4.0 concepts [16] (“KRI
developed metrics defining ready-to-use Key Readiness Awareness” and “KRI Technological Requirements”), limited
Indicators (KRI). This concept was formulated, considering the knowledge and skills of employees [4] (“KRI Competences”).
diffuse and effective utilisation of Key Performance Indicators Such indicators are generated automatically according to
(KPI) in several management issues, enabling the timely specific combinations of responses provided by the company
identification of action plans improving the performance of the during the compilation of the Digital Check, also referring to
companies [13]. In this regard, attempts made to transfer such pair of questions relating to different dimensions, as outlined in
tools in the field of strategic planning for Industry 4.0 are Table 1.
summarised in the present work. The set-up of KRI should
convey information enabling, particularly SMEs with less Table 1. Combination of questions for Key Readiness Indicators (KRI).
dedicated resources available to manage innovation processes, KRI Target questions Dimension
to promptly recognize specific areas of intervention, prior to the Strategy Q-1 Degree of definition of a strategy D1
implementation of Industry 4.0 solutions. The KRI face the towards Industry 4.0?
challenging objective of briefly deepening the reflection about Q-2 Have you planned intervention of
D1
specific aspects related to the overall digital readiness level. Industry 4.0 over the next two years?
Companies self-assessing their digital level following such an
approach, besides displaying the results in a relatively Technological Q-5 Expected adoption of Key Enabling D2
innovative format, encounter with higher likelihood room for requirements Technologies for Industry 4.0 in the next
improvements, regardless of their overall digital level achieved. two years.
D3
To this respect, the results show that both the highest and lowest Q-10 Knowledge about Industry 4.0.
overall digital level achieved, is rarely combined with the
attainment of the highest and lowest level of KRI, respectively.
Awareness Q-10 Knowledge about Industry 4.0. D3
This paper is structured as follows. After this introduction,
Q-11 Need to increase knowledge about D3
the methodology used to derive the KRI will be described.
Industry 4.0 over the next two years.
Then, the distribution of KRI, resulting from a sample of
manufacturing companies will be outlined. Finally, conclusions
about the main implications of the findings, limitations and Competences Q-18 Adequacy of digital skills of D4
collaborators.
outlook for future research will be drawn.
Q-19 Need to increase digital D4
competences of collaborators over the
2. Methods
next two years.

The methodological framework employed to derive the KRI


is based on a self-assessment tool named “Digital Check”, The pairs of questions were combined considering their
developed, among others, by the authors of the present work relevance to the content of the KRI, regardless of their
[14]. The survey comprising 26 questions (Q-n), enables dimensions, in terms of scope of detecting potential
misalignment SMEs should consider for implementing Industry
Riccardo Brozzi et al. / Procedia CIRP 96 (2021) 201–206 203
Author name / Procedia CIRP 00 (2019) 000–000 3

4.0, additionally to the notion of their overall digital level. • adequacy of knowledge related to industry 4.0 in relation
Following this approach, it resulted that the majority of KRI to the technologies to be adopted in the short and
consists of pair of questions deriving from the same dimension, immediate term (“KRI-Technological requirements”)
in which misalignments may emerge from inconsistent • to what extent the company is aware of the relevance of
evaluations of the digital level, within the current (today) and industry 4.0 in relation to the level of knowledge perceived
expected (within two years) time perspective. The “KRI- by respondents (“KRI-Awareness”)
Technological requirements” involves instead pairs of • Alignment of digital skills of employees to the scale of
questions from different dimensions, in which additional planned investments in Industry 4.0 (“KRI-Competences”).
information are conveyed, assessing the alignment of what the
respondents consider as Key Enabling Technology and their The next section presents the results of the case-study, in which
perceived knowledge about Industry 4.0. The KRI is expressed a sample of manufacturing companies compiled “Digital
in three-levels (L1) low, (L2) medium, (L3) high, according to Check” self-assessment, returning both the digital readiness
the specific combination of responses referring to the target level and the four described KRI as complementary
questions. To this respect, the classification into levels information. For the sake of this paper, the analysis of digital
considers the Likert-Points rating assigned by the respondents performances relating to the Key Readiness Indicators will
to the pair of target questions constituting the specific KRI. focus on the “KRI-Strategy”, “KRI-Awareness”, “KRI-
Following this indication, a relatively high rating to both Competences”. The selection of the statistical tests performed
questions (e.g. 4-5; 5-5) will imply a high KRI. Conversely, in the next sections, was operated considering the analysis of
joint average or low rating will result in medium or low KRI, categorical variables, following to the work of [17]
respectively. The systematic evaluation of the joint rating can
either be in line with the overall digital level of the company or 3. Case-study in the manufacturing sector
detect potential misalignment across the responses. Table 2
provides an example of the combination of rating used, for the The results presented in this section refer to a sample of
derivation of the “KRI-Strategy”, measuring the presence of a manufacturing companies located in Central Italy Marche. A
coherent strategy. This relates to the areas of intervention the total of 65 companies from the manufacturing sector, mainly
company intends to address, as stated during the self- covering the machine construction (65%), chemical (13%) and
assessment survey. In such a case, the lack of an adequate footwear industry (7%), took part to the “Digital Check” self-
strategy in relation to the degree of complexity of specific assessment survey. Most companies account as SMEs, namely
intervention that the company is willing to undertake may employing less than 250 collaborators and having less than 50
signal the presence of inconsistences, resulting in a low KRI. million Euro of yearly turnover, as defined by the European
For this reason, while the willingness to intervene in several Commission [18]. Approximately one-fifth of companies
areas of the company may contribute increasing the overall achieved the highest digital readiness level of top-performer.
digital readiness level, a relatively lower KRI provides Overall, the results indicate that most companies exhibit an
warnings with respect to the consideration of the corporate average digital readiness level (companies in transition), while
strategy toward Industry 4.0. a limited number of companies assessed a low digital readiness
level (4.6%). The latter group of companies are solely
Table 2. Exemplary derivation of “KRI-Strategy”. composed by SMEs. Nevertheless, the Pearson Chi-squared
Level Rating (Q1-Q2) Description test, indicated the existence of no significant association
L1 1-1; 1-2; 2-1; Not adequate preparation. Defining a strategy between the two categorical variables employed, namely
2-2; (…) planning interventions and areas of company size and digital readiness level (N=65, Chi=6.890,
application of Industry 4.0 technologies and p<0.142). Table 3 summarizes these results in the percentage
concepts is essential for the future
of responses with respect to the entire sample (%-ALL), as well
development of the company.
as in absolute figures for the entire sample (N-ALL) and
considering the participating SME (N-SME), respectively.
L2 3-3; 4-3; (…) Moderate preparation as the company is in the
process of initiating - or has already defined - Table 3. Digital readiness level.
an action plan for the digital transformation.
Readiness level N-ALL N-SME %-ALL
The strategy seems limited to certain business
areas. Digital Newcomers (low) 3 3 4.6%
Companies in transition (medium) 49 35 75.3%
L3 5-4; 5-5; (…) Adequate preparation as there is a strategy in Top Performer (high) 13 8 20.1%
progress and it seems to be aligned with the
scale of interventions the company intends to
implement in the medium and long run. The distribution of the KRI (Fig. 1) indicate that a large
proportion of companies, regardless of their overall digital
readiness level, achieved relatively high levels of the
The derivation of the other KRI previously mentioned refers to
indicators. Notably, 49 companies, accounting for
similar considerations defining the three resulting levels of
approximately the 75% of the sample, achieved the highest
attainment, while measuring different aspects as follows:
value of the “KRI-Awareness”. Relatively, high values were
achieved by companies in the remaining KRI, such as “KRI-
Strategy” (56.9%) and “KRI-Competences” (66.2%).
204 Riccardo Brozzi et al. / Procedia CIRP 96 (2021) 201–206
4 Author name / Procedia CIRP 00 (2019) 000–000

Table 5. Size of the company (rows) against levels of Key Readiness


Indicators (columns).
KRI-Strategy
% (N) Low Medium High
Small (23) 43.5 (10) 26.1 (6) 18.9 (7)
Medium (23) 4.3 (1) 21.7 (5) 73.9 (17)

Size
Large (19) 10.5 (2) 21.1 (4) 68.4(13)

KRI-Awareness
Small (23) 34.8 (8) 0.0 (0) 65.2 (15)
Medium (23) 21.7 (5) 0.0 (0) 78.3 (18)

Size
Large (23) 15.8 (3) 0.0 (0) 84.2 (16)
Fig. 1. Key Readiness Indicators in the considered sample of companies

KRI-Competences
Stratified by size in terms of number of employees, turnover
Small (23) 39.1 (9) 17.4 (4) 43.5 (10)
and digital level the characteristics of the sample are outlined
in Table 4. The total amount of companies, considering the Medium (19) 0.0 (0) 30.4 (7) 69.9 (16)

Size
turnover are lower (60) compared to the other categories, since Large (19) 5.3 (1) 5.3 (1) 89.5 (17)
five participating companies did not give their consent to
provide their range of yearly turnover compiling the “Digital
Check” survey. In the following paragraphs, such varying
3.2. Turnover as variable for different association in the
characteristics will be used to test potential association to the
performances of the KRI
KRI. The statistical software SPSS v.19 was employed for the
data analysis.
Tailoring such an approach, differences in the KRI were
Table 4. Digital readiness level. tested considering varying turnover of companies (Table 6). As
reference to classify companies according to their size (small,
Characteristics Small/Low Medium Large/High Total
medium, and large), considering yearly turnover (EUR) the
Size 23 23 19 65
definition of the EC applies [18]. The Chi-Squared statistics
Turnover 14 13 12 60 indicate the existence of a significant association between the
Digital readiness level 3 49 13 65 variable returning the yearly turnover of the company and the
“KRI-Competences” (Chi = 17.979, p < 0.001). No or very
3.1. Company size as variable for different association in the limited association exists regardless of the level of yearly
performances of the KRI turnover and the “KRI-Strategy” (Chi = 11.539; p < 0.021) and
“KRI-Awareness” (Chi = 2.533, p < 0.282), respectively.
The percentage of small companies characterized by a high Table 6. Turnover of the company (rows) against levels of Key Readiness
level of the “KRI-Strategy” is marginal (18.9%) if compared to Indicators (columns).
68. 4% of large enterprises. A strong association (Chi=15.594,
KRI-Strategy
p-value<0.006) is detected between the size of the company
% (N) Low Medium High
and the indicator capturing the strategy readiness toward
Industry 4.0. Overall large companies tend to consider Small (22) 40.9 (9) 13.6 (3) 45.5 (10)
themselves having successfully embedded a strategic vision
Turnover

Medium (19) 10.5 (2) 31.6 (6) 57.9 (11)


toward digital transformation. A similar result is obtained Large (19) 5.3 (1) 15.8 (3) 78.9 (15)
considering the association of the size of the company with the
“KRI-Competences”. The Chi-Squared statistics (Chi= 20.216,
KRI-Awareness
p < 0.000) also signals the existence of a significant association
between such variables. Larger companies perceive a higher Small (22) 36.4 (8) 0.0 (0) 63.6 (14)
adequacy of collaborators in terms of digital skills (89.5%)
Turnover

Medium (19) 15.8 (3) 0.0 (0) 84.2 (16)


compared to 43.5% observed in companies with less than 50 Large (19) 21.1 (4) 0.0 (0) 78.9 (15)
employees. Conversely, the Chi-Squared statistics indicate the
existence of no significant association (Chi= 2.181, p < 0.336)
KRI-Competences
between the size and the “KRI-Awareness”. Table 5
summarizes the distribution of the KRI varying the size of the Small (22) 36.4 (8) 13.6 (3) 50.0 (11)
Turnover

company expressed in terms of number of employees. Medium (19) 5.3 (1) 31.6 (6) 63.2 (12)
Large (19) 0.0 (0) 5.3 (1) 94.7 (18)
Riccardo Brozzi et al. / Procedia CIRP 96 (2021) 201–206 205
Author name / Procedia CIRP 00 (2019) 000–000 5

3.3. Digital readiness level as variable for different support the latter evidence, indicating larger companies,
association in the performances of the KRI counting more than 250 employees, strategically better
prepared and disposing the required digital competencies of
A final set of potential associations was tested considering as collaborators to support the transition toward the Industry 4.0
variables the digital readiness level of companies and the paradigm. This finding confirms the validity of the main
resulting Key Readiness Indicators (Table 7). For the challenges toward Industry 4.0 identified in the literature,
statistically significant variables, the association between the depicting SMEs facing more challenges due to the lack of a
digital level and the “KRI-Awareness” has the lowest p-value strategic vision [5] and limited knowledge and skills [4] [19] to
(Chi = 13.529, p < 0.001), suggesting a strong association drive digital transformation. The analysis of KRI also shows
between the digital level of companies and the awareness about that companies with a higher yearly turnover perceive the
technologies and concepts of Industry 4.0. To this respect, the know-how of their collaborator as adequate. Finally, one of the
entire samples (100%) of small and large companies face main finding relates a higher awareness about technological
opposite scenarios, showing the latter group a higher and conceptual developments of Industry 4.0 to those company
awareness, compared to companies with less than 50 self-assessing a higher digital level. Such additional
employees. The association between the digital level and the information, complementing the interpretation of the results
remining considered KRI remains low, for both the “KRI- about the digital readiness, provide companies and supporting
Strategy” (Chi = 12.376, p < 0.015) and the “KRI- institutions, such as among others Digital Innovation Hubs,
Competences” (Chi = 11.824, p < 0.019). with relevant information, to steer their digital innovation
projects and strategies, to specific requirements and
Table 7. Digital level of the company (rows) against levels of Key Readiness characteristics. To this respect, KRI proved particularly
Indicators (columns).
effective in providing counterintuitive evidence at times,
KRI-Strategy signaling specific areas of intervention, which might have been
% (N) Low Medium High overseen by companies. This is witnessed by the evidence,
Low (3) 67.7 (2) 0.00 (0) 33.3 (1) emerging from the analysis of the sample, indicating the levels
of the three considered KRI being aligned to the overall digital
Readiness

Medium (49) 22.4 (11) 28.6 (14) 49.0 (24)


level, approximately only in the 20% of the cases. A more
level

High (13) 0.0 (0) 7.7 (1) 92.3 (12)


accurate interpretation of the overall digital level, employing
the notion of KRI, may hence implicate for companies, a better
KRI-Awareness interpretation of results of self-assessment, potentially leading
Low (3) 100 (3) 0.0 (0) 0.0 (0) to an improved decision making and monitoring of
interventions toward Industry 4.0, complementary to the
Readiness

Medium (49) 26.5 (13) 0.0 (0) 73.5 (36)


level

High (13) 0.0 (0) 0.0 (0) 100 (13)


information deriving from the overall digital readiness level.

5. Conclusion
KRI-Competences
Low (3) 66.7 (2) 33.3 (1) 0.0 (0) This research presented the approach to enrich the
effectiveness of self-assessment survey measuring the digital
Readiness

Medium (49) 16.3 (8) 20.4 (10) 63.3 (31)


level

High (13) 0.0 (0) 7.7 (1) 92.3 (12) readiness of companies, which can be considered a
fundamental step prior to any implementation of Industry 4.0
technology or concept. We showed the attempts made to
develop a set of Key Readiness Indicators (KRI), providing
4. Discussion complementary information to the overall digital readiness
level of companies, as main outcome resulting from most
The present research work described the approach used to existing self-assessment tools. The evidence collected, in the
derive Key Readiness Indicators (KRI), providing additional framework of a broader study involving a sample of 65
information for companies self-assessing their digital readiness manufacturing companies, depicts such tools as effective, as
level toward Industry 4.0. The paper focused on the KRI they can provide counterintuitive elements, diverging from the
referring to the areas of strategy, awareness of technological level of the overall digital readiness. Against this background,
trends, and digital competences of collaborators. Besides the the KRI may convey implications for decision making for
methodological note, the present article showed the distribution companies regardless of their achieved digital level, enabling
of the KRI in a real case-study, involving a sample of the prompt identification of specific fields of intervention. The
manufacturing companies operating in the Marche Region use of KRI may be particularly relevant in the context of SMEs,
(Italy), comprising small, medium, and large enterprises. in which the dynamics of each individual KRI show a higher
Considering the overall digital readiness level achieved, the variation in relation to the overall digital level achieved.
results do not outline significant differences, with the size of Furthermore, the immediate information conveyed by the KRI,
the company in terms of employees varying. Conversely, suites the limited resources in terms of staff for R&D and time
several authors acknowledge SMEs having a relatively lower to devote to a careful interpretation of results. The familiarity
digital starting level and facing higher challenges toward across manufacturing companies to the concept of Key
digital transformation [19]. Against this background, the KRI
206 Riccardo Brozzi et al. / Procedia CIRP 96 (2021) 201–206
6 Author name / Procedia CIRP 00 (2019) 000–000

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