BUSINESS

“Industry 4.0” in Moravian-Silesian

Region in the View of Ivo Vondrák

“Industry 4.0” is a very modern expression,

yet many people believe it is a new name

for a phenomenon which has been long

been in the works. So what is it, actually?

Industry 4.0 must be considered in a

wide context. We live in the age of expert

knowledge combined with available IT

capacities and a quality of software that

allows for great leaps forward which

can affect all walks of life. The changes

can be seen in households, businesses,

government and administrations, health

care, education -- basically, in every

sphere of human activities.

Industry 4.0 is a key part of new economics,

closely connected to production plants.

Its aim is to speed up, cheapen, and

streamline the primary operations that

fulfil increasing and ever-changing

customer demand. Digitalization and the

automation of such processes, vertical

and horizontal interconnections in

supplier-purchaser chains and production

systems, as well as the use of various smart

technologies and AI are mere tools to

achieve such goals. They are the first steps

to redesign a wide spectrum of present

company processes. In this light, they are

not slight rearrangements of something

that has already existed but quite radical

transformations.

Are companies ready for such a change?

According to firms involved in preparing

companies to implement Industry 4.0,

only approximately 5 % of small and

mediumsized companies are ready to

implement full digitalization and over 50 %

are deeply mistaken in believing they will

be in no way be affecteded by Industry 4.0.

As for the Czech Republic, they are mostly

daughter companies of international

businesses who invest in this sphere

while Czech entrepreneurs seldom do so

even if they have enough money for such

investment.

Besides an insufficient understanding

of how important such investments are

Why should Czech businesses get

involved in Industry 4.0?

A great number of Czech companies

draw their competitive advantage from

technical know-how combined with

high flexibility and a relatively cheap

labour force. Yet some West European

businesses deliver the same product

faster, in better quality and cheaper than

Czech producers thanks to automation in

the preproduction phase and automated

production. Their new investments can

therefore easily eliminate the current

advantage of Czech businesses.

Numerous Czech companies often serve

as subsuppliers to foreign businesses who

assemble final products and are the true

leaders in implementing the principles

of Industry 4.0. It is most probable that

these businesses will soon demand the

full digitalization of the supplier-purchaser

chain, and those subsuppliers who do not

comply with their requirements may be

replaced in the chain.

POSITIV ǀ 3/2018 21