Exploring digital technology in manufacturing SMEs in South Africa

Abstract

Industry 4.0 describes a new paradigm for operations management based on the convergence of physical equipment and digital communication technologies. Manufacturing companies struggle to implement Industry 4.0 technologies as it is a multi-faceted challenge. This has led to the development of various maturity models, frameworks and strategic roadmaps used to implement Industry 4.0 technologies This study's main objective is to identify a strategic framework to guide manufacturing SMEs in South Africa to implement Industry 4.0 technologies and principles to improve business success. The study is structured along four secondary objectives to achieve the main objective. This study follows a qualitative research approach collecting qualitative data through a scholarly literature review and semi-structured interviews. The literature review (Chapter 2) provides background and insight into the definition of Industry 4.0. The study further looks into the strategic requirements manufacturing SMEs in South Africa need to implement Industry 4.0 technologies successfully. A Technology Roadmap is identified as a possible strategic framework to guide SMEs in implementing Industry 4.0 technologies. Interviews were held with five manufacturing companies (manufacturing SMEs) in the Western Cape, North West and Gauteng provinces. The interview data is analysed using the KJ Method and presented within the three perspectives of a Technology Roadmap. The data analysis identified thirteen challenges South African SMEs face and eighteen requirements SMEs should consider for successful technology implementation. The study concludes with recommendations that can help South African manufacturing SMEs to implement Industry 4.0 technologies successfully. The key recommendation is for an SME to use a Technology Roadmap to align technology resources with its strategy and value offering. Some remaining areas of research are also identified.