IMC Grupo

How to Overcome the Practical Challenges of Industry 4.0 implementation?

Authored by: Dr. CSS Bharathy

Industry 4.0 or the Fourth Industrial Revolution helps with the digital transformation of current factories into smart factories of the future. The implementation of Industry 4.0 technologies faces similar challenges as any new initiative or project. There are neither unique nor different from those challenges involved in the implementation of strategic projects in any company. Having said that it will help o list those few challenges and share some thoughts and advice on surmounting those challenges that has been shared by major Industry 4.0 technology solution providers in India.

Let’s begin with the challenge associated with technology selection. Industry 4.0 is comprised of Immersive Technologies such as AR, VR & MR, Industrial IoT (IIoT), Big Data & Analytics, Cloud, Artificial Intelligence or AI, Autonomous Robots, Drones, Simulation/Digital Twins, Cybersecurity Technology and Additive manufacturing. Selecting the right suite of technologies that generate the best RoI for meeting smart manufacturing objectives is critical. Companies need to get a comprehensive understanding of these technologies, its use cases before analyzing how they align with their long-term corporate and strategic objectives. To help with those experienced consultants and solutions provider need to be engaged to perform an evaluation with the stakeholders in the organization, perform gap analyses in each function or department and recommend the most appropriate technology paths and use cases they need to pursue. This ground work is essential and its helps avoid getting carried away by media hype.

While most leaders and CEOs are focused on business success, investing in Industry 4.0 initiatives requires long term vision and budgetary allocations in the capital budget to support these   It is an absolute necessity for the board and senior management to throw their weight behind such digitalization initiatives and realize the corporate strategic objectives.

Companies also need to carefully assign motivated and skilled project leader who can advise senior management and co-ordinate with consultants and contractor to guide the project management team and lay the roadmap for sustained success. The first several months are crucial to identify teething problems, glitches and unexpected challenges. Companies need to carefully evaluate post project performance with KPIs   and obtain user feedback to address the issues being identified on a priority basis.

It’s also necessary for companies to engage the right technology partners who have domain experience and SMEs to support.  This is important since industry specific experience is critical to tailor and implement solutions. During project scoping it’s necessary to start with smaller initiatives and then scale up.  Projects that are wider in scope could get stuck without adequate support. Companies need to see small successes and use the lessons learned to implement in bigger projects. Rushing to implement and without allowing sufficient time for familiarization with all stakeholders could lead to less than desirable results.


Finally, good leadership and top-class project management is indispensable for success in Industry 4.0 projects. Providing direction, enabling site wide communication, coordination and providing resources and support is expected from the leadership team and that is the secret recipe that makes all challenges appear easy to overcome.