MSMEs(Micro, Small and Medium Enterprises) are the backbone of a developing economy like India.In fact,Industry 4.0 may be viewed as a blessng as this sector may act as feeder to various big companies.

MSMEs in the Indian context are organizations which run with very low capital input. During the initial stages, These organizations require support from the government or NGO in all means to run effectively. Industry 4.0 is the context of automation and data exchange. Apart from few organizations in the cluster I cannot find MSMEs to have been automated. If the MSMEs want switch over to the Industry 4.0 revolution, I cannot say that they will survive the cost of adapting the technology in to their classic and conventional design. Switching to Industry 4.0 at this stage will defensively be a bane to the MSMEs. Sector wise, cluster wise transfer to 4.0 is possible with a well sketched strategical plan.

You can also refer my article: Article Digitalization of MSMEs in India in context to Industry 4.0:...

Dear Jan Kaźmierczak , the short answer might be: It depends on the type of SME. On the one hand, there is high costs, lacking expertise and many SMEs have to make the efforts to make their production Industry 4.0-compatible, but do not benefit themselves from data-driven value offers, but their customers. On the other hand, especially providers of Industry 4.0 technology can benefit. In the end, it is a question that depends on the type of SME, its role as provider or user of Industry 4.0 technology, and its potential to deliver data-based value offers and business models, among others. Please see some of our related works below:

Article Fortune favors the prepared: How SMEs approach business mode...

Conference Paper How SMEs can participate in the potentials of Big Data withi...

Article The Role of Absorptive Capacity and Innovation Strategy in t...

Naturally, this is also a question that differs across national contexts. For instance, Chinese SMEs rather regard it as a chance, German SMEs tend to be more reluctant comparably (additionally to different company characteristics):

Article Sustainable Industrial Value Creation in SMEs: A Comparison ...

The Industry 4.0 are mega system that involving Big Data, Augmented Reality, Simulation, Internet of Things (IoT), Cloud Computing, Cyber Security, Systems Integration, Additive Manufacturing, and Autonomous Systems to help transform the operational potential of manufacturing industries. Should SMEs(Small and Medium Enterprises) required an ample knowledge or they required a consultation from expertise before selecting which base need to be followed. The first industrial revolution was the mechanization of the manufacturing and processing industry, and secondly the revolution incurred in the assembly line and electricity, enabling mass production. Yes, the concept of Industry 4.0 could be a blessing or a curse for SMEs depends on plan and action, knowledgeable despite financial strength of individual or industry players.

Dear Colleagues,

First of all: thank all of you for really inspiring answers to my (a little bit provocative) question. Your answers are different but there is some common factor: it is evident that the answer to my question relates strongly on geography. Circumstances of China or India - because of typical 'family-oriented' structure of MSME's are different than the circumstances in highly developped economies.

But what about the human faactor? Do not you suppose that the challenges created by the fourth industrial revolution can be too difficult to adopt by some employees of the micro, small and medium size enterprises? In this case the deciding element can be concerned not with geografical location, but with an effectiveness of educational system as well as with some elements of social behaviour.

It depends on the country we look.

For instance if we take Germany SMEs have important role in the German economy, because of their number and because of the large share of the workforce involved. Small and medium-sized enterprises (SMEs) constitute a major portion of the German economy, accounting for a large proportion of country’s businesses and total employment. According to the most recent estimates, the SME sector, including services, 99.8% of the total number of enterprises, 76.7% of total employment, 38% of capital investment, 25% of value added, roughly 10% of exports and 5% of bank credit. Therefore, while SMEs dominate the economy in terms of employment, they evidently operate with comparatively little capital equipment, generate relatively low levels of value added, make only a small contribution to German exports. In order to change that situation Industry 4.0 is seen a favorable opportunity by authorities to increase value-added services and share of made German exports. Because Industry 4.0 reduces non-value-added data manipulation, improves OEM/SME based supply chain communications, enhances SME supply chain business performance, addresses interoperability concerns across both technical and business domains of the digital enterprise, opens new manufacturing technological career opportunities and integrates the human in the digital world to enhance decision making.

Dear Jan Kaźmierczak

Answer for your qeston depends also on type of industry. ;)

I found business model suitable for leisure time industry

Chapter Predictive factors of innovation in organizations from leisu...

but... it works only them (not in "real" industry like automotive /Julian M. Müller's articles/, mines, iron works etc.)

This is an interesting question and it remains a puzzle for many SME managers today. Learning from our research, I have formed an opinion that, ultimately, Industry 4.0 is a blessing when viewed from the perspective of individual firms and not necessarily so when viewed from the perspective of entire industries.

Like many on this discussion thread have already mentioned, it depends on several factors. In addition to industry structure and ownership characteristics (to the extent that this factor may affect management vision and risk aversion), product type and the form of conversion/production processes are other factors which can influence how much value an SME can derive from Industry 4.0.

The goal should be finding the right fit and choosing an implementation approach that reduces some of the attendant risks without eroding the benefits of speedy adoption. Decide on a 'smart-' process or product strategy and (especially for SMEs) take an fast, but incremental approach.

Dear Olumide Emmanuel,

Thank you very much for the inspiring answer to my question. I do realize that the problem is complicated and the answer depends on many factors (see my preprint as attached). And a question to you: I do like your comparison of the problem mentioned by me to the puzzle. Having in mind your authorship, may I assume that I have gotten your license for using this comparision in my further publications?

Best regards,

Jan

Dear Jan Kaźmierczak,

If it helps your paper, feel free to use it. Perhaps also, you may find it interesting to look at the discussion of some of these issues in our recently published paper on the subject (check the "Insights" section) : Article Smart Production Planning and Control: Concept, Use-Cases an...

Thanks for sharing your pre-print. I gleaned some interesting insights from it. For instance, I find it interesting that many of the study's respondents indicate that they are not familiar with Industry 4.0 and yet believe that it is (or it will be) affecting their roles now (or in the near future). This makes me curious to see if the pattern of responses shows any significant distribution based on industry type or age of companies.

In any case, I'll be happy to read your discussions when the paper is ready. Best of luck with it.