Abstract
The Fourth Industrial Revolution (4IR) is the result of progress made in the development of
digital technologies from the Third Industrial Revolution. Digital devices can now connect,
communicate and operate autonomously on the Internet using well designed software. In
manufacturing, the introduction of digital technologies affects all business processes. In this
study, production processes are particularly examined to understand the requirements of digital
manufacturing. 4IR is disruptive, expensive, and any company undertaking a digital
transformation initiative must expect transformation within the entirety of the organisation.
In South Africa, factories are semi-automated or fully automated. Some factories have “smart
cells” with advanced digital capabilities, but none have a complete Cyber-Physical Systems
(CPS). With Asia becoming the world’s manufacturer, African manufacturing industries like
South Africa’s need to rethink their strategies to remain competitive with digital manufacturing
becoming the new standard.
This study investigates the drivers and barriers of 4IR by observing real-life use of digital
technologies in production environments from manufacturing companies in South Africa. To
achieve this, a multiple case study using a mixed method approach is chosen to assess and
characterise the main achievements and challenges faced in adopting digital technologies on a
production floor. The case companies were selected through purposive and convenience
sampling to represent South Africa’s manufacturing sector in an unbiased manner.
The study revealed that although at its infancy, already 53% of manufacturers in South Africa
are actively engaged in a digital transformation strategy. Manufacturers face three main barriers
to digital transformation: in first place it is the cost of technology, common amongst 47% of
manufacturer; in second place it is the shortage of skill and the lack of training, common
amongst 33% of manufacturers; in third place it is the resistance to change caused by concerns
over job security, common amongst 22% of manufacturers. It is also revealed that the analogue
to digital conversion of data (from paper to virtual) is a process yet to be automated because of
shortcomings in data processing in the production, machine-to-machine communication, and
man-machine interfaces. Manufacturers in South Africa prioritise using 4IR technology for
quality inspection, process monitoring, and communication.
The study identified two recurring themes to successfully implement digital technology in
manufacturing production processes:
iv Abstract
1. Automate most / all production processes and connect them to a network for monitoring
and analysis. That is what the Cyber-Physical System (CPS) solves.
2. Digitalise most / data from production processes. That is what the Digital Information
Systems (DIS) solves.
The first theme refers to the CPS, has two main limitations when it comes to automating
production processes: first, the barriers to entry are high; second, all manual tasks are yet to be
automated. The investment can be justified primarily by how well a factory, or a company is
performing on the market. But CPSs can help deliver products at higher volume with higher
variety.
The framework suggested by this study aims to help manufacturers in South Africa increase
the intelligence of their production processes. The framework addresses the realities of digital
transformation in a general production setting, and in the context of South Africa.
Key words: data motion, digital transformation, digitalisation, framework, manufacturing.