Industry 4.0 Readiness Assessment: Comparison of Tools and Introduction of New Tool for SME

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INTRODUCTION
In last past years, several assessment tools have been created by researchers from university, consultant company, and government institution.The tools can help companies to measure, how ready they are in facing industry 4.0.Each assessment tool has different dimensions of measurement, it depends on the focus and object of research.In this paper, three existing assessment tools (IMPULS, Uni-Warwick, and PwC tools) will be reviewed, and used as basis for establishing new assessment tool which more focus on Small Medium Enterprise (SME).The selection of SMEs, is encouraged by the fact that SMEs as engine growth of global economic, have lack understanding about industry 4.0.With the new assessment tool, SME can assess their current position and determine next step or future target in industry 4.0.

LITERATURE REVIEW 2.1 Small Medium Enterprises
Many studies have explained that SMEs play an important role in national economy, they have employed many people and become the engine growth of economic [1], [2], [3].The definition of SMEs is diverse for each country, the European Commission defines small medium enterprises (SMEs) as company which employ less than 250 employees and have turnover up to 50 million/year [2].While in Germany, SMEs are defined as companies that have less than 500 employees [4].
The SME is characterized by limited resources (skilled workers, infrastructure and budget), however the flexibility of decision making is relative easier and faster compared to large companies, because the bureaucratic path is short and relies on few people.

Industry 4.0 and Its Benefit
The fourth industrial revolution or I4.0 was first initiated by a group of business people, academics and German government in 2011.By definition, Industry 4.0 is the collective strategy of company which equip their business process, especially production process with digitalization, internet of thinking, cyber physical systems (CPS), and smart factory to present real time synchronization of business and production flows [5].However, this definition is not the only one, there are still multiple of definitions and none of them are used as common references [6].
The application of Industry 4.0 has three main goals: shortening time to market, increasing flexibility, and boost efficiency [7], [8].With achievement those goals, the benefits of I4.0 can be felt by company as well as national economy.In Germany, the adoption of I4.0 has increased 25% of company's efficiency and contribute around 1% / year to Gross Domestic Product (GDP) over 10 years as well as create 390,000 new jobs [9].

RESEARCH METHODOLOGY
This research leads to two objectives: comparing the existing tool and establishing a new tool which focus on SMEs.Before comparing existing tools, the author will determine the most relevant categories / dimensions for SMEs.The tool that assess those categories will be scored as (1).While, the tools that do not assess them, will be scored as (0).After all the tools have been scored, the sum of score (each tool) will be divided by the number of relevant categories/dimensions (see Eq. ( 1)).The tool which has highest assessment index AI (Tool 3) is the most suitable tool for measuring SMEs readiness in industry 4.0 (see Tab. 1 as illustration).

Score of Tool
In order to provide a complete picture of the existing tools, the author conducts a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis for each tool.With SWOT analysis, the "internal" strength and weakness and the "external" market driven opportunities and threats of each tool will be made transparent.This is important as a basis for establishing new assessment tool.

RELEVANT CATEGORIES FOR SME
In establishing a new assessment tool that focuses on SMEs, it is necessary to determine relevant categories that can measure the I4.0 readiness appropriately.The determination of categories must be objective and supported by sufficient arguments.Those can be obtained by literature study, expert opinion, and field observations.Similar to the house construction, the implementation of industry 4.0 must be supported by at least three readiness pillars, namely: Data, Hardware, and Software.Therefore, the categories of I4.0 readiness will be clustered by those three.

Data
The company data can be likened as blood in the human body.It must be protected and able to flow smoothly.Therefore, all blockages and constriction that interrupt the data flow must be removed immediately.Otherwise, it will disturb the entire business process and gradually destroy company's reputation.The "Data" cluster can be divided into 4 categories: Data sharing, Data Quality; Data Processing and Data Storing.
The use of data as basis for company decision-making process, becomes more intense in the digitalization era (I4.0).The data has become a valuable commodity [10], where many companies hang their fate on data availability.A data must have good quality.The quality of data can be measured by 15 dimensions: accessibility, ease of maintenance, reputation, accuracy, objectivity, credibility, comprehensiveness, constituent interpretability, consistent representation, clarity, relevance, reasonable scope, completeness, value added and timeliness [6], [11].
The intensity of sharing, processing and storing data does not depend on the size of company, but it depends on number of stakeholders which involved to company.Sometimes small and mid-sized companies are more active than larger companies.In the context of security, data sharing activity always brings risk, it becomes hacker`s way to attack the system, therefore data sharing management is absolute necessary for securing system [12].

Software & Process
Digitalization is the key word in industry 4.0, without digitalization in business processes (product development, production, logistic and others), the company will never turn on industrial 4.0.The digitalization in SMEs will bring some beneficial functions, such as; overcoming fluctuated customer`s demand, smoothing internal and external information flow, accelerating decision making processes and others [13].Therefore, digital transformation on SMEs is necessary and it must be supported by software that appropriate to requirements and budget of company.In the product development, SMEs are encouraged to use software that is not focused on Product Data Management (PDM) only, but also on Product Lifecycle management (PLM), where the life cycle of a product, from its birth until it is recycled or destroyed, must be well managed.
The second pillar (Software & Process) consists of categories: product design & development, smart material supply, smart production, smart maintenance, and smart logistics.These categories reflect the processes in SMEs that require software support.The software will increase the added value and competitiveness of products through process efficiency.

Hardware
The biggest obstacle to apply Industry 4.0 in SMEs is unpreparedness hardware (computer, machines, robot, server, and material handling) and IT security, because every replacement and modification of hardware and IT security system require high investment cost.Therefore, those are important parameters for measuring SMEs readiness in Industry 4.0.
Hardware readiness, not only measured by their compatibility, but also the interface and communication infrastructure between them.For example, hardware can be ready individually, but when it is paired to the other or integrated into company system, the hardware will have problems.Therefore, the third pillar will consist of categories: hardware readiness, communication between hardware and how to secure information and data placed in hardware from unauthorized person, hacker and external infiltration (IT Security and Data protection).Data protection and IT security especially for electronic transactions must be a serious concern for SMEs.The use of hardware and software that supports digital signatures, biometric data, ledgers (hardware wallet), smart contracts and block chain technology, must be balanced with the needs and financial capabilities of SMEs [14,15].

OVERVIEWS OF THE EXISTING TOOLS 5.1 IMPULS (VDMA)
In 2015, VDMA sponsored a study to build assessment tool for measuring German company's readiness toward industry 4.0, the assessment tool is designed with simple, user-friendly and effective principles that allow companies to conduct by their self.
The IMPULS's tool measures six dimensions, namely: strategy and organization, smart factory, smart operations, smart-products, data-driven services, and employees.Each dimension has several sub-dimensions, which explain detail measuring.The company's readiness will be explained by six levels, it is started from level 0 to 5. The level 0 is called outsider, where company does not apply digitalization at all.The level one is beginner level, where the company start to digitalize their business process and adopt industry 4.0 principles.The next levels are: level 2 intermediate, level 3 experienced, level 4 expert, and level 5 top performer, where industry 4.0 is already unified with company's culture [16].

Uni-Warwick
This assessment tool was developed by Warwick University in collaboration with Crimson & Co and Pinsent Masons.The main objective of this tool development is to provide a simple and intuitive way for companies to measure their readiness as well as their future ambitions in digitalization era.are six dimensions of measurement which include; products and services, manufacturing and operations, strategy and organization, supply chain, business model and legal considerations.What's interesting about this tool is, there are special dimensions which never encountered in other assessment tools.Those dimensions are supply chain and legal consideration.In the supply chain there are 4 subdimensions, namely; inventory control using real-time data management, supply chain integration, supply chain visibility, supply chain flexibility and lead times.While, in the legal consideration dimension, there are 4 sub dimensions, namely; contracting models, risk, intellectual property and data protection.Unlike the IMPULS's tool, each dimension of Warwick's tool is measured by 4 levels of readiness, namely level 1 beginner, level 2 intermediate, level 3 experience and level 4 expert [17].

PricewaterhouseCoopers PwC
PwC views the assessment tool that they built is not only as a tool to assess the readiness of company but also as the future planning anchor, toward industry 4.0.The tool consists of 7 dimensions: Digital business models and customer access; Digitisation of product and service offerings; Digitisation and integration of vertical and horizontal value chains; Data and analytics as core capability; Agile IT architecture; Compliance, security, legal and tax; and Organisation employees and digital culture.Each dimension consists of four levels readiness, start from digital novice, vertical integrator, horizontal collaborator, and digital champion.
The unique point of PwC tool is, there is dimension of compliance, security, legal and tax.This dimension measures company compliance in facing the challenges of digitalization, such as security, legal, and taxation.The readiest company in industry 4.0, is the company that most comply to various regulations of I4.0 such as data protection, taxation and other legal aspects [18].

THE COMPARISON OF EXISTING TOOLS
Before comparing the existing tools, it should be emphasized that, this section is not intended to find the best tool, but to provide references for new assessment tool creation, which focused on SMEs.
The SWOT analysis (Tab. 3) shows that IMPULS tool is superior in the number of dimensions and categories that relevant to SMEs, while PwC can present the more attractive graphic or design of online self-assessment.Uni-Warwick tool can capture many readiness aspects of the company, which reflected in many measurement dimensions / categories.However, the consequences of it, makes Uni-Warwick tool, look complicated.In addition, Uni-Warwick tool is not available in open access online, so companies must judge and calculate the result manually, based on the description of each level in each dimension.All the facts above can make Uni-Warwick tool less attractive then other assessment tool.
From the comparison above it can be seen that the measurement dimensions in the IMPULS tool are most appropriate for measuring the readiness of SMEs in Industry 4.0, this is indicated by the high value of assessment index.This fact is reasonable, considering the economic and industrial structures of Germany which dominated by SMEs, may also influences the perspective of IMPULS tool creator in determining dimensions and categories Based on the comparison and SWOT analysis, the new assessment tool must meet the requirements: • The tool must be able to measure SME readiness in industry 4.0, through the relevant categories.• The tool must be accompanied by a practical guideline which contains different readiness levels • The categories and their levels must be defined properly, so that companies are able to know their current status and future step in I4.0.• The description of each category and each level must be clear and understandable.• The assessment tool must available online to facilitate companies in conducting • The presentation of online assessment must be clear and eye-catching.• The questions in online assessment must be clear, simple and understandable By considering those requirements, the new assessment tool is created with categories and readiness level as level as seen on Tab. 4.

CONCLUSIONS
The present three assessment tools (IMPULS, PwC and Uni-Warwick) can be used to measure a company's readiness towards industry 4.0, but none of them focuses on SMEs.If the three are compared, the IMPULs tool is the nearest appropriate assessment tool for SMEs, because it contains many dimensions or categories that are relevant and needed by SMEs such as; data sharing, data storage, data quality, data processing, product design and development, smart material planning, smart production, smart maintenance, IT security, hardware readiness and hardware interface.
Establishing an assessment tools for SMEs, must meet requirements such as; the tool must contain relevant categories and accompanied by a practical guideline, the categories and levels must be defined and described clear and understandable, the tool must be available online with eye catching presentation and simple questions.

Notice
The paper will be presented at MOTSP 2020 -International Conference Management of Technology -Step to Sustainable Production, which will take place from 30 th September -2 nd October 2020 in Bol, island Brač (Croatia).The paper will not be published anywhere else.

Table 1
The illustration of comparison method

Table 3
ThreatsThe company's reluctance to use this tool, due to difficulty of self-assessment (not available online)

Table 4
Comparison tools with relevant categories for mid-size company

Table 5
New assessment tool

Table 5
New assessment tool (continuation)