Digital readiness assessment of Italian SMEs: a case-study research

Abstract

Purpose Given the challenges that Industry 4.0 poses, the purpose of this paper is to propose a comprehensive assessment model suitable for evaluating small- and medium-size enterprises’ (SMEs) digital readiness levels, discuss the results of an assessment of 20 manufacturing SMEs using the proposed model and highlight priorities needed to undertake a successful journey towards Industry 4.0. Design/methodology/approach The research adopts an empirical approach using multiple case studies. Starting with a literature review about maturity and readiness-assessment models for Industry 4.0, the study’s model has been built and validated through two pilot case studies, with the final model used in an extensive case studies research with 20 enterprises. Findings The SMEs used in this research present an intermediate readiness level with respect to Industry 4.0. They are aware of the phenomenon, but management is still taking the first steps towards identifying the most appropriate strategy to approach this Fourth Industrial Revolution. Companies need to exploit all opportunities that data availability provides in terms of knowledge creation and decision-making support, in all forms, through investments in people skills and expertise and through an infrastructure that can support data gathering, analysis and sharing. Originality/value The Italian industrial landscape comprises mainly SMEs, mostly needing support to understand their path towards Industry 4.0. Therefore, the proposed model specifically focuses on SMEs, given its modularity, ease of understanding and fit to SMEs’ organisational structure. Furthermore, insights from 20 Italian SMEs are examined, and a list of priorities is highlighted.

Implementing Industry 4.0: assessing the current state

“…The authors also show how companies depending on their size and their degree of "informatization" differ in terms of knowledge and implementation. The notion that applicability of separate technologies depends on the type of company and its context was also noticed in the ninth article (Pirola et al, 2020), which presented an adaptable or modular readiness model. In the next article, such contextual differences are further explored.…”

“…The next two articles (Santos and Martinho, 2020;Pirola et al, 2020) describe a maturity model and a readiness assessment model for Industry 4.0. Maturity models and readiness assessment models for Industry 4.0 enable an objective and impartial evaluation of a company's position, by deciding what needs to be measured and how to assign a specific degree of maturity to a company regarding Industry 4.0 (Pirola et al, 2020).…”

“…The objective and impartial evaluation of a company's position regarding the implementation of Industry 4.0 can be used in different ways. In short, the two articles (Santos and Martinho, 2020;Pirola et al, 2020) provide four purposes:…”

“…The third cluster, which we will refer to as the maturity and readiness cluster, comprises of two articles. In these articles, models and tools are created and applied with which the degree of implementation of Industry 4.0 in companies can be assessed (Santos and Martinho, 2020;Pirola et al, 2020). These articles start with a normative idea how Industry 4.0 can be fully implemented.…”

Digital organisational readiness: experiences from manufacturing companies

“…The author stated that not all companies have adequate IT readiness or are large enough to handle horizontal integration without losing competitiveness, so different types of partnerships or even acquisitions and mergers need to be planned. Complementing, assessment of available skills, strategic recruitments and training programs need to be in place, as well as conditions for cross-functional integration (Pirola et al, 2019). Lokuge et al (2019, p. 446) define digital organisational readiness "as an organisation's assessment of its state of being prepared for effective production or adoption, assimilation and exploitation of digital technologies for innovation."…”