SMEs Maturity Model Assessment of IR4.0 Digital Transformation

This paper reports on the revolution of industry that leads to the current industry 4.0 through digital transformation. Industry 4.0 promotes innovation in organising and controlling for the entire value chain life cycle. The advancement of technology become future insights of digital transformation is aimed to have a high-flexibility, high-productivity, and become resource friendly that may provide a new level of human-machine relationship. The research is aimed in understanding the readiness of the Small Medium Enterprise (SME) in Malaysia towards digital transformation of Industry 4.0. Hence, a comparative study of the maturity assessment model towards industry 4.0 had been conducted. The IMPULS maturity assessment model is applied and six dimensions were chosen as our research model. Each dimension is explained, calculated and discussed in this paper. Each dimension is then weighted to refer to the level of readiness. The research uses questionnaires in attaining the data pertaining to the readiness of Malaysian SMEs towards industry 4.0. Next, findings of this research will be able to explain and provide a better understanding of where Malaysian SMEs stand in comparison to the maturity level that is set to test out the readiness of SMEs towards industry 4.0. This is to create and increase SMEs’ market sustainability hence creating or increasing profitability.