Intelligent CIO Africa Issue 05 | Page 70

INDUSTRY WATCH Perhaps understandably, in conditions of muted economic growth and uncertainty, CFOs and CEOs who may not yet fully comprehend the advantages of Industry 4.0 are reluctant to make the necessary investments. industrialisation that is evident in more advanced economies such as Germany, where the notion of Industry 4.0 was born.” The Deloitte study identified connectivity and accessibility as key prohibitive factors for a slow adoption of Industry 4.0 in Africa. Deloitte’s Africa Manufacturing & Automotive Leader, Karthi Pillay also assigned this to a “general reluctance to invest in new knowledge and technologies within government and industry, as the current economic environment forces South African manufacturers to save costs first and spend less on innovation.” Carpenter listed education and skills as major factors attributing to the slow uptake in Africa, because “Industry 4.0 is a STEM- heavy environment”. He also believes that “CIOs are most concerned about cost – whereas there should be a stronger focus on value.” 70 INTELLIGENTCIO Preparing for a ‘smart’ future Commenting on Deloitte’s 2016 report, Pillay said: “The majority of our interviewees believe that Industry 4.0 will have a strong impact in the coming years on Africa and the South African manufacturing industry in particular. “At the moment, however, manufacturing in South Africa is going backwards in its percentage contribution to GDP. The question we have to ask ourselves at this moment in time is, do we continue on this path of deindustrialisation without complementing it with Industry 4.0, or do we try to reverse the decline? If it is to be the latter, then it will require a getting together of the right minds to define where manufacturing is going in South Africa.” Mark McCallum, CTO & Head of Solutions, sub-Saharan Africa, Orange Business Services believes that Industry 4.0 in Africa is coming fast and will continue picking up speed: “As technology and solution providers lower the cost of entry and improve services reach and availability then the adoption path becomes easier and timed shorter.” In the meantime, he offers the following steps for organisations looking to prepare themselves for a ‘smart’ future: • • • • Implementing the bimodal approach whereby new technologies and digital are brought in in parallel for a scaled and phased approach to the adoption of these technologies Structuring a well-defined strategy to implementation and show benefits to business Capitalise on new and lower cost connectivity technologies Limiting continued use of proprietary solutions and services, which lock organisations into their current path www.intelligentcio.com www.intelligentcio.com INTELLIGENTCIO 71