Menu
Industry 4.0: Assessing the Kiwi opportunity, and risk

Industry 4.0: Assessing the Kiwi opportunity, and risk

Industry 4.0 spans analytics, artificial intelligence, cognitive computing and the Internet of Things

Senior business executives and government agency leaders are aligned to Fourth Industrial Revolution (Industry 4.0) opportunities, but remain challenged by a lack of preparedness across New Zealand.

Characterised by the coming together of physical and digital technologies, Industry 4.0 spans analytics, artificial intelligence, cognitive computing and the Internet of Things (IoT).

Yet according to Deloitte research - which surveyed 1,600 C-level executives across 19 countries including New Zealand - roadblocks exist when extracting long-term value across society, strategy, the workforce and technology investments.

“In an environment of unparalleled global connectivity it is a time of great opportunity, but also risk,” Deloitte New Zealand CEO, Thomas Pippos, said.

“We developed this research to better understand how executives are navigating this pervasive shift, and to uncover areas where they can more effectively influence how it impacts their organisations and society.”

Overall, the research revealed that executives are in the early stages of readying organisations to harness the full potential of Industry 4.0, with both Kiwi and global markets still grounded in the early adoption stage.

“We believe those who take a broad view will be the ones to succeed in this new era,” Pippos added.

“They will see connections between business and social needs; between financial outcomes and innovative strategies; between workforce productivity and people’s sense of stability and well-being; and between integrating existing technologies and creating completely new solutions.”

Delving deeper, the research focused on four major topics: social impact, strategy, talent/workforce and technology.

“The results indicate that while executives conceptually understand the changes Industry 4.0 will bring, they are less certain how they should act to benefit from those changes,” Pippos added.

And in each of the four areas of impact, the survey uncovered some degree of contradiction.

In examining the technological landscape, Pippos said executives understand they need to invest in technology to drive new business models.

“However, they have a hard time making the business case to fully address Industry 4.0 opportunities because of a lack of internal strategic alignment and short-term focus,” Pippos said.

From a social impact perspective, executives see a more stable future with less inequality, but are less confident about the roles they or their organisations can play in influencing society in an Industry 4.0 era.

Specifically, 87 per cent of executives believe Industry 4.0 will lead to more social and economic equality and stability, and two out of three believe business will have much more influence than governments and other entities in shaping this future.

However, less than a quarter believe their own organisations can influence key societal factors such as education, sustainability and social mobility.

Honing in on strategy, executives acknowledge they may not be ready to harness the changes associated with Industry 4.0, but these reservations have not compelled them to alter their strategies.

Just 14 per cent are highly confident that their organisations are ready to fully harness the changes associated with Industry 4.0.

“But many executives are sticking with a focus on traditional domains (i.e., developing products and increasing productivity) instead of shifting their focus toward developing talent and driving competitive disruption that could spur innovation and create value,” Pippos explained.

Meanwhile, executives are not confident they have the right talent to be successful in Industry 4.0.

However, they feel they are doing all they can to build the right workforce, despite talent ranking low on their list of priorities.

Only a quarter are highly confident they have the right workforce composition and the skill sets needed for the future, while 86 per cent are doing everything they can to create a workforce for Industry 4.0.

Yet, responses indicate that HR topics remain a low priority, other than aiming to increase worker efficiency.

“For companies that have placed Industry 4.0 talent implications high on their priority list, they are exploring the potential for new roles,” Pippos added.

“They allow people to play to their strengths while leveraging technology for greater innovation, alternative work environments, and new approaches to learning and development.”


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags digitalDeloitteInternet of ThingsIndustry 4.0

Featured

Slideshows

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA

Reseller News has honoured the leading female front runners of the New Zealand ICT industry at the 2019 Women in ICT Awards (WIICTA) in Auckland. The awards recognised standout individuals across six categories, spanning Entrepreneur, Rising Star, Shining Star, Community, Technical and Achievement. Photos by Gino Demeer.

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA
Reseller News kicks off awards season in 2019 with Judges' Lunch

Reseller News kicks off awards season in 2019 with Judges' Lunch

The 2019 Reseller News Innovation Awards has kicked off with the Judges Lunch in Auckland with 70 judges in the voting panel. The awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors. Photos by Christine Wong.

Reseller News kicks off awards season in 2019 with Judges' Lunch
Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomed 2018 inductees - Chris Simpson, Kendra Ross and Phill Patton - to the third running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing landscape of the technology industry in New Zealand, while outlining ways to attract a new breed of players to the ecosystem. Photos by Gino Demeer.

Reseller News welcomes industry figures for 2019 Hall of Fame lunch
Show Comments