Opportunities and Challenges of Embracing Smart Factory in South Africa

Abstract

The fourth industrial revolution combines cyber-physical systems with manufacturing processes, enabling industries to automate and maintain their production in real time. Smart technologies open new global markets and increase global economy, however there are some challenges associated with the implementation such as lack of skilled manpower, social inequality, potential disruption in labor market, cyber-risks, etc. This paper investigates the opportunities and challenges associated with the adoption and implementation of smart factory in South Africa using extensive review of available literatures, which is verified using a single South African case study. It was observed that the current adoption of smart technologies is low. South African manufacturing industry and existing workforce will require upgrades to match skills required for smart factory. Smart factory may displace specific labor force with automation, however it will also create new types of jobs. Some industries are already using flexible production and producing customer-specific goods, which indicates that these industries will easily transform to mass customization. Cyber-risks and privacy issues of digital revolution provides a platform for existing ICT professionals to engage in R&D, as well as create new jobs related to development of security systems and software. Industries and people are showing certain level of acceptance, however they are yet to fully engage in smart factory.