Impacts of Industry 4.0 on SMEs: Results of a Questionnaire Survey

Project "The impact of Industry 4.0 on the SME sector„ Results of questionnairesurvey on the digitization of micro, small and medium enterprises Norbert Pruszanowski - PolishCraftAssociation Budapest, 17thNovember 2017 The projectisfinanced by theInternational Visegrad Fund

Project "The impact of Industry 4.0 on the SME sector„ The project is financed by theInternational Visegrad Fund Statistic data The survey was distributed to 27 craft chambers (25 regional and two sectoral), 16 selected craft guilds with high potential and over 200 enterprises.

Project "The impact of Industry 4.0 on the SME sector„ The project is financed by theInternational Visegrad Fund We have received responses from 37 companies from the following 10 sectors: • Construction sector • Metal sector • Pharmaceutical sector • Hairdressing and cosmetic sector • Optical sector • Wood sector • Leather sector • Food sector • Automotive sector • Electrical sector

Project "The impact of Industry 4.0 on the SME sector„ The project is financed by theInternational Visegrad Fund Results of individualquestions

Project "The impact of Industry 4.0 on the SME sector„ The project is financed by theInternational Visegrad Fund • How does your own business interpret digitization and what do you think digitization can be used for in your company?

Project "The impact of Industry 4.0 on the SME sector„ The project is financed by theInternational Visegrad Fund The broadest answers in this field from the construction and metal sectors. According tocompanies, digitization means: - it solves paper problem- exchange of information recorded analogously, perceived by humans as real to digital representation. Digitization allows you to manage your knowledge in the enterprise, especially useful for the flow of information inside the enterprise.- conversion of analog data to digital data,

Project "The impact of Industry 4.0 on the SME sector„ The project is financed by theInternational Visegrad Fund - the existence of the Internet, the development of new technologies- change from paper to electronic system- a technological process that streamlines communication, advertising, training, and many other activities - introduction to production and marketing of available on the market IT and technical achievements- use of measuring tools with digital reading

Project "The impact of Industry 4.0 on the SME sector„ The project is financed by theInternational Visegrad Fund • What examples can you list, when digitization helped improve the competitiveness and business productivity of a company?

Project "The impact of Industry 4.0 on the SME sector„ The project is financed by theInternational Visegrad Fund A dozen companies have provided specific, interesting examples. Selected examples: • fast messaging and the connection of new technology that changes fromone day to the next; • the ability of mobile communication to support the implementation of new tasks. • creating a data analysis structure for business decision making • it reduced costs, improved efficiency, speed and scale of production, and improved quality of production and services • introduction of a product packaging scanning system

Project "The impact of Industry 4.0 on the SME sector„ The project is financed by theInternational Visegrad Fund • e-CTD document management, which allows you to quickly send product data to the Office of Registration, reduce the cost of archiving, reduce fixed costs, such as paper, office supplies. • purchase of modern CAD / CAM programs that enable cooperation with modern 3D lumps, which create modern variants of surface treatment. • Computer technology helped us to promote and contribute to more effective sales.

Project "The impact of Industry 4.0 on the SME sector„ The project is financed by theInternational Visegrad Fund 3. Regarding the size of the business, is there any difference in the possibilities for application of digitization? What do you think a micro enterprise could do, and what actions could be done by a larger business?

Project "The impact of Industry 4.0 on the SME sector„ The project is financed by theInternational Visegrad Fund The largest companies in the construction sector have responded in this respect. Most of the responses highlighted the greater potential of small and medium sized enterprises to benefit from digitization solutions, primarily due to increased funding for the purchase of systems and programs, and the redevelopment of human resources. In addition, the following differences: Micro-enterprises have limited ability to upgrade due to access to financial resources, costly system solutions. In addition, there is a lack of knowledge in this area and a reluctance due to one-man management.

Project "The impact of Industry 4.0 on the SME sector„ The project is financed by theInternational Visegrad Fund - Micro-enterprise opportunities need to be rationalized if digitization bringstangible benefits, if there is external support, and that is certainly the case. • Many micro services are direct-to-customer services that they can accept, so they can not be replaced by a digital solution, digitizing can help such companies improve communication with people. • difference in the use of different information systems, which do not always have consistent functionality, eg. in the export and import of documents transmitted in digital form. Larger companies generally have more advanced systems than micro-enterprises.One of the companies also drew attention to the important issue of adjusting the digitization program to the size of the enterprise. These programs should be relatively similar except that microenterprises may work on individual programs in individual departments, but in large companies each department is heavily expanded and the list of operators may be longer.

Project "The impact of Industry 4.0 on the SME sector„ The project is financed by theInternational Visegrad Fund 4.Is there a national strategy on Industry 4.0 and does it deal with the role of the family, the micro and small companies and their possibilities for the future?

Project "The impact of Industry 4.0 on the SME sector„ The project is financed by theInternational Visegrad Fund Only seven surveyed enterprises have heard of this concept in Poland. In its view, this concept is only being implemented and so far there are no concrete results for family businesses. Attention has been paid to the barrier of bureaucracy associated with this concept, which is unmanageable for family micro and small businesses.

Project "The impact of Industry 4.0 on the SME sector„ The project is financed by theInternational Visegrad Fund 5. Doesan service or systemcurrently exist inorder todeliver the essence of this strategy to family, micro, and small businesses?

Project "The impact of Industry 4.0 on the SME sector„ The project is financed by theInternational Visegrad Fund Most companies don’t know about the existence of such a system.Several companies have provided the following aspects: - Testing of enterprise platforms without division on SMEs to create joint financing, open communication, mutual trust and partnership. - The creation of the Polish Platform of Industry 4.0, which will be responsible for supporting the transformation of the domestic industry to the level defined as Industry 4.0. - Information on the website of the Ministry of Development, Ministry of Digitization, conferences for the industry in this field organized at the Ministry of Development. - The Center of Competent Centers for Small and Medium Enterprises

Project "The impact of Industry 4.0 on the SME sector„ The project is financed by theInternational Visegrad Fund 6. Is there any conscioussupportsystem which helps thedigitization process of family, micro andsmall businesses?

Project "The impact of Industry 4.0 on the SME sector„ The project is financed by theInternational Visegrad Fund In this case, most companies have not heard of such asystem. Only a few gave the following examples: - the operation of companies that help to input data into computer systems. • Regional Operational Programs in a given voivodeship, supporting existing and newly established companies. • "OneDrive" by Microsoft SA and "Google Drive" byGOOGLE

Project "The impact of Industry 4.0 on the SME sector„ The project is financed by theInternational Visegrad Fund The strategy of the Polish government for the “Industry 4.0” The part of the “Strategy for Responsible Development” Development of infrastructure and competences for the Industry 4.0 Prepared by the Polish Ministryfor Development Norbert Pruszanowski – PolishCraftAssociation Budapest, 17thNovember 2017 The projectisfinanced by theInternational Visegrad Fund

Project "The impact of Industry 4.0 on the SME sector„ The projectisfinanced by theInternational Visegrad Fund Development of infrastructure and competences for the Industry 4.0 The intervention is aimed at creating conditions enabling enterprises from all sectors/industries to participate in the digitization of the industry. An important element of the process will entail the reconstruction and integration of infrastructure on the basis of the forecasted development of the market of the Internet of Things, renewable energy sources, fossil fuels, energy warehouses, and electric cars after 2020.

Project "The impact of Industry 4.0 on the SME sector„ The projectisfinanced by theInternational Visegrad Fund This will increase the development pace of innovations, decrease marginal production costs and lead to the creation of platforms bringing together various forms of actions in a large number of sectors and, ultimately, to the increased profits.

Project "The impact of Industry 4.0 on the SME sector„ The projectisfinanced by theInternational Visegrad Fund The public administration and entities from the industrial, business and scientific sectors should take up a common initiative to stimulate the industrial transformation, including, following experiences of other European countries, the establishment of a specialist platform to inspire and support entrepreneurs with their resources of knowledge, competences and experiences in the preparation and implementation of new business models on the basis of the Industry 4.0 concept.

Project "The impact of Industry 4.0 on the SME sector„ The projectisfinanced by theInternational Visegrad Fund Actions: • Creating an integrated digital network infrastructure - this will enable the digitization of the economy and the development of broadband Internet access (both fixed-line and mobile), the Internet of Things, the physical Internet, renewable energy sources, warehouses of energy and electric cars after 2020, as a result ofthe implementation of national technical standards in non-harmonized areas on the EU levelin order to integrate technical infrastructure,

Project "The impact of Industry 4.0 on the SME sector„ The projectisfinanced by theInternational Visegrad Fund Actions: • the elaboration of new norms and legal institutions, adjusted to specific problems created by the • digitalization of the industry for the economic life, • the integration of IT functional systems in companies - the integration of hardware and network data • the provision of network security

Project "The impact of Industry 4.0 on the SME sector„ The projectisfinanced by theInternational Visegrad Fund Actions: • the provision of the compatibility of the infrastructure with the infrastructure on the single market • supporting the migration of telecommunication and information equipment to use the IPv6 Internetaddressing • the efficient management of network systems

Project "The impact of Industry 4.0 on the SME sector„ The projectisfinanced by theInternational Visegrad Fund Actions: • Developing telecommunication and information technologies and the large-scale implementationof the production of sensors and steering systems based on information gained fromthem (under the above mentioned Internet of Things) - under the performance of the sub-project, • the national development potential of telecommunication and information enterpriseswill be used.

Project "The impact of Industry 4.0 on the SME sector„ The projectisfinanced by theInternational Visegrad Fund Actions: • Digitizing technological processes and their supporting systems - fully automated production processes will have a favourable impact on the repeatability of technological processes, and consequently on the increased productivity of enterprises. • Implementing digital models of management - including the management of production, stock, transport, fuel and energy and other media consumption, for the optimization of the functioning of enterprises.

Project "The impact of Industry 4.0 on the SME sector„ The projectisfinanced by theInternational Visegrad Fund Actions: • Disseminating decision-aiding statistical systems - based on the analytics of big data and cloud management and processing - the aim is to disseminate analytical tools in order to make a smart use of data, capture correlations existing between then, and to formulate and apply conclusions. The fundamental element of the initiative is to ensure a fast connection with the network, access to the data and their professional processing • Initiating, integrating and promoting initiatives oriented towards the transformation of the national industry up to the Industry 4.0 level, in particular the creation of a national base of competences for the performance of the transformation.

Project "The impact of Industry 4.0 on the SME sector„ The projectisfinanced by theInternational Visegrad Fund Strategic project: The Polish Platform for Industry 4.0 appointing a national integrator liable for the execution of the transformation of the national industry to the so-called Industry 4.0 level Norbert Pruszanowski – PolishCraftAssociation Budapest, 17thNovember 2017 The projectisfinanced by theInternational Visegrad Fund

Impacts of Industry 4.0 on SMEs: Results of a Questionnaire Survey