Key Pointers:
Many companies are excited to embrace and start this new digital frontier, especially with the recent emphasis on Industry 4.0. However, most companies are hampered by a lack of knowledge on how and where to start their digital journey.
As it is, there is no one-size-fits-all strategy towards Industry 4.0. The dynamism and stage of evolution varies for different companies and industries. In order to spark this transformation, the government has worked together with SingEx and Deutsche Messe to host the annual Industrial Transformation Asia Pacific. SME owners can attend such events to learn from the best in class and also understand how other industries are leveraging on technology in their own ways.
On the same note, you can tap on government-initiated programmes such as the SkillsFuture programme, where you can send your employees to hone the skills needed for digitalizing your business. The courses offered have different levels of difficulty to cater to different learning capabilities. At the same time, participants are given opportunities to apply what they have learnt to real-life case scenarios and simulations.
Moving towards the new 4.0 era requires mutual effort from both the SMEs and different sectors. As it is, poor implementation is worse than a lack of implementation. SMEs should ruminate on the following factors instead of rushing in:
Incorporating the right type of digitalization into your business is crucial to increase your customers’ satisfaction levels and convenience. For this reason, it is important to understand which stage of digitalization your company is at before setting a clear objective and road map for implementation.
1. Start by referring to the Smart Readiness Index and the Assessment Matrix (SIRI) developed by the Economic Development Board that serves as a simple plan and diagnostic tool to kickstart your digital journey.
The SIRI identifies 3 fundamental building blocks of Industry 4.0: Technology, Process, and Organization.
Underpinning the 3 building blocks are 8 key functions that are crucial determinants of the digital transformation stage of the company. It is further broken down to 16 dimensions that serve as guiding points in assessing a company’s distribution channels, competency and facilities. By diagnosing these factors, you can evaluate your company’s digital maturity, benchmark it against known scores of other companies and identify potential gaps in the transformation process.
2. Secondly, you should put careful thought into the type of digitalization that you can incorporate in your business. A good example would be how supermarkets such as Cold Storage and NTUC FairPrice use e.labels and an Electronic Shelf System to update shoppers on prices and promotions, as well as track their own inventories.
3. Thirdly, you can approach business advisors from the SME Centre for a one-to-one diagnosis and its advisory service to keep them accountable on your digitalization journey.
4. Fourthly, doing up a tentative timeline would be helpful in guiding you through the entire project so that you know where you stand and are heading towards.
Not every new undertaking is smooth-sailing, and you should be prepared by listing down some challenges that you may encounter. In this way, you can come up with measures to prevent any expected roadblocks.
Start by brainstorming any possible challenges and create a list that is categorized based on the type of challenge. With reference to the SIRI model, you could classify challenges based on the 8 key functions, namely operations, supply chain, product life cycle, automation, connectivity, intelligence, talent readiness, and structure and management.
For instance, a talent readiness challenge occurred when NTUC FairPrice found it hard to educate its staff on using new technology efficiently. As such, the management hosts follow-up sessions to ensure that its staff are able to grasp new systems.
At the same time, it is helpful for you to keep a record of the difficulties that you encounter and steps on how you have overcome them. If a similar problem occurs in the future, your company will be able to tackle it with ease.
One of the most difficult parts of digital transformation would be the execution phase. Many a time, plans that are laid out on paper do not turn out the same way as expected when they are carried out. It is then important to identify the things that could go wrong and plan ahead.
To keep you grounded and on track with your digitalization process, you can approach business advisors from the SME centres that provide business diagnostic and advisory services. Another option would be approaching business consultants who offer a wide range of services from advisory to branding at their own prices.
As the world heralds a new era of digitalization, SMEs are highly encouraged to get their game on and put themselves on the forefront. Whether you are at the center or the periphery, it is okay to take one step at a time.
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Jennifer loves helping SMEs in their business growth journey. She is also an epicurean and has perpetual wanderlust. During the weekend, she weaves poems out of thin air and buries herself in books.
