How Industry 4.0 can benefit Malaysian SMEs
Industry 4.0 is making headway in many business regards. SMEs, quite simply, are the most important composition of the SME ecosystem. To avoid falling behind the curve, the advancement of technology can help SMEs manage their resources effectively and transparently with Industry 4.0.
Managing an SME with industry 4.0 integration is far different from the conventional management method. Managing SME nowadays can be done effectively and efficiently. Before we go further, let’s go back a little bit. In July 2013, a new SME definition was endorsed at the 14th NSDC Meeting. The definition, since, now covers all sectors, namely services, manufacturing, agriculture, construction and mining & quarrying.
Here’s what you need to know; sales turnover and number of fulltime employees are the two criteria used in determining the definition with the “OR” basis as follows:
- For the manufacturing sector, SMEs are defined as firms with sales turnover not exceeding RM50 million OR number of full-time employees not exceeding 200.
- For the services and other sectors, SMEs are defined as firms with sales turnover not exceeding RM20 million OR number of full-time employees not exceeding 75.
In retrospect of the last few years, it must be noted that SMEs that are leading the way in adopting technology especially widespread platforms such as mobile grew twice as fast as their peers.
According to BCG’s David Michael in an article in Korea Times, the Korean SMEs observed were adding jobs up to eight times faster, said BCG’s about how important it is for policy makers to push for innovation and R&D investment in emerging platforms such as mobile technologies.
All too often, SMEs can no longer rely on organisational frameworks that have become outmoded and ineffective in today’s business environment. The business world of the early 21st century is radically different from that of the early 20th century.
Significantly, here are a few key considerations for SMEs to note:
- SMEs need to design a new approach to business organisation
- The nature of work has changed and managing your resources will require a new method.
- Reorganisation efforts for SMEs need to focus on how to get them ahead in emerging future marketplaces.
Last but not least, to learn more about the topic, you can read the original article here.
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