top of page
  • Dhruman Gohil

Indian Industry 4.0 Challenges that affect the adoption.

Industry 4.0 is the digitalization of traditional processes and operations to improve efficiency, transparency, and new business models. As it is still in progress, there are many challenges and barriers that arise during the implementation. Some of the major challenges that industry experts face are as follows:

1. Poor Research and Development on Adoption

As Industry 4.0 and Smart factory are relatively new terms there are no defined models, rules, and guidelines for adoption. Many researchers and practitioners worldwide are working towards this revolution and making it possible for large and small organizations. Every organization has a different structure and operations so there is no ideal general solution/product/model.

2. Legal Issues

Industry 4.0 is a cyber-physical network where sensors, machines, web apps, cloud, facilities, and humans are interlinked and a huge amount is transferred among each other. Before adopting digitalization proper legal compliances and issues should be considered to avoid problems later. Proper privacy and security measures should be considered before adopting data-driven business models. Proper legal research has to be conducted by project managers.

3. Company’s Poor vision and strategy toward digitalization

As Industry 4.0 is a new, innovative, and complex approach to business operations companies need to have a very clear vision and strategy for implementation before adoption. There might be many uncertainties on regular basis but the company, management, and employees should be ready to face it and have backup and strategy to manage things. Proper staff training workshops should be conducted and make them learn about the entire adoption and their new way of working.

4. Unclear economic benefits

Industry 4.0 opens the possibilities of coming up with new business models due to the huge amount of data and digitalization in the supply chain. But before its adoption, many companies are not aware of the different models that can be used to increase profitability and revenue. It's very important to research different revenue streams as it's important to calculate the ROI and payback period.

5. Huge capital and investment required

Industry 4.0 is the complete transformation of traditional operations, processes, and systems to a digital model so it requires huge investment in Machines, Cloud infrastructure, experienced professionals, sensors, legal costs, software and hardware costs, RFID Tags, Operations, employee training program, backups, etc. Each and every cost has to be considered with pros and cons while creating a financial model of the entire system.

Read our 1st Blog - What is Industry 4.0?

Read our 2nd Blog - What is Supply Chain Management and its importance?

Read our 3rd Blog - What is Intelligent and Smart Manufacturing?

Read our 4th Blog - Industry 4.0 Technologies and their Applications - IoT, AI

Subscribe to our LinkedIn newsletter - Industry 4.0 Insights

Written by - Dhruman Gohil

bottom of page