Pertinent Issue – Robotics in Manufacturing The rise of newdigital industrial technology, known as Industry 4.0, is a transformation that makes it possible to gather and analyse data across machines, enabling faster, more flexible, and more efficient processes to produce higher-quality goods at reduced costs. This manufacturing revolution will increase productivity, shift economics, foster industrial growth, and modify the profile of the workforce— ultimately changing the competitiveness of companies and regions. Advanced digital technology is already used in manufacturing, but with Industry 4.0, it will transform production. It will lead to greater efficiencies and change traditional production relationships among suppliers, producers, and customers—as well as between human and machine. Nine technology trends form the building blocks of Industry 4.0.
Digital adoption, especially among SMEs, is barely touching 20%, and most manufacturing companies apply less than 50% of automation. The high cost of technological adoption coupled with a gradual return of investment also results in profound unwillingness to jump on the Industry 4.0 bandwagon. Key to taking the next step, Malaysia needs to convince reluctant industry players and boost their appetite to take this route. From the SME Corp survey in 2018, the adoption of digital technologies as being hampered by five main factors, limiting their preparation for the coming Industry 4.0. These factors are, low labour costs, no immediate customer demand to incorporate seamless processes, difficulty finding skilled talents locally, a fragmented supplier ecosystem and unrealistic expectations of delivering returns to the short term. A study by Deloitte and MIT Sloan Management Review found that cultural changes are key to digital transformation rather than technological ones. Further, collaborations among the private and public sectors need to be enhanced. In, China for instance, there is a sizeable role for private sector consultation, most of the time involving the formation of public-private councils. These collaborations could not only spark innovative ideas but also ensure both parties are aligned in terms of understanding and drive for digital change. To achieve this, the government needs to set strategies with measurable targets. Most importantly, it needs to apply rigorous monitoring and evaluation mechanisms to ensure that industry players are on the same page.
Nine Technologies That Transform Industrial Production
Autonomous robots
Big data and analytics
Simulation
Horizontal and vertical system integration
Augmented reality
Industry 4.0
The industrial Internet of Things
Additive manufacturing
The cloud
Cybersecurity
Source: BCG analysis
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Malaysian Technology Strategic Outlook 2019/2020 Intergration of High Technology
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