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Speech by SMS Koh Poh Koon at the Launch of the Smart Industry Readiness Index Prioritisation Matrix

Speech by SMS Koh Poh Koon at the Launch of the Smart Industry Readiness Index Prioritisation Matrix

Mr. Joe Kaeser, CEO, Siemens,

Mr. Klaus Helmrich, Member of the Managing Board, Siemens, 

Distinguished Partners from McKinsey & Company, SAP and TUV SUD,

Guests, 

Ladies and Gentlemen, 

Introduction

1. Good Afternoon. It gives me great pleasure to welcome everyone here for the launch of the Smart Industry Readiness Index Prioritisation Matrix. This is my first time visiting Hannover Messe, and the scale, stature, and vibrancy of the world’s largest industrial fair, have truly been impressive. I would also like to take this opportunity to thank Siemens for graciously hosting this launch event at their booth.

The Smart Industry Readiness Index: Well-received since its launch in 2017

2. While the term ‘Industry 4.0’ was first introduced at this very event in 2011, we realized that on the ground, few companies had a good understanding of what it entailed and the value that it could bring to the manufacturing sector. This is why in 2017, the Singapore Government launched the Smart Industry Readiness Index, or SIRI in short, to provide a common framework for all companies to learn the key concepts of Industry 4.0. 

3. SIRI also has an accompanying Assessment Matrix for companies to evaluate their Industry 4.0 readiness levels across 16 dimensions. The aim was to help companies kick-start their Industry 4.0 transformation efforts. Since its launch, SIRI has received a lot of interest from the international community. We have partnered organisations like the Asian Productivity Organisation and the World Economic Forum to apply SIRI in Singapore and around the world. Most recently, we are working with MxD, the Digital Manufacturing Institute based in Chicago, to begin utilising SIRI in the United States. For the past 2 years, more than 3,000 individuals across 750 different organisations have attended workshops and seminars on SIRI.

The conversation around Industry 4.0 has evolved from learning to implementation

4. Today, the conversation in the global manufacturing community has evolved from just learning about the key concepts and benefits of Industry 4.0, to exploring how best to implement transformation roadmaps. Companies are actively finding ways to translate their newfound knowledge into actionable projects that can help them realise the benefits of Industry 4.0.

5. However, planning and executing an Industry 4.0 transformation plan is not a simple task. It requires companies to invest significant amounts of time and resources to identify the key focus areas, select the relevant technologies, engage the right vendors and oversee the entire implementation of the transformation. It is therefore not surprising that few companies have taken the plunge, unless they have a high level of clarity and confidence that the implemented projects can help to achieve their desired outcomes. With this new set of challenges, we realised that we needed to respond and do more to help companies better design and execute their transformation roadmaps.

The Prioritisation Matrix: A tool to accelerate implementation

6. That is why we have developed the Prioritisation Matrix, a management planning tool to assist companies in quantitatively identifying the high-priority Industry 4.0 areas, where improvements made will bring about the most benefit. The tool is designed to be data-driven and globally relevant, applicable to all companies regardless of size and industries. When manufacturers have a more systematic, comprehensive and robust way to prioritise Industry 4.0 areas, they can then take more measured steps forward in their Industry 4.0 transformation.    

7. We have piloted the Prioritisation Matrix with both Multinational Corporations (MNCs) and Small and Medium Enterprises (SMEs) to enhance its relevance and usability. One such company that has benefited from the Prioritisation Matrix is Shine Precision, a medium-sized enterprise in Singapore that provides specialised computer numerical control (CNC) machining of complex components. Specifically, Shine Precision had used the Prioritisation Matrix to identify its top three high-impacts focus areas, namely (i) Enterprise Automation, (ii) Shop Floor Connectivity and (iii) Enterprise Intelligence. The company shared that using the SIRI Assessment Matrix and its Prioritisation Matrix, has helped it identify and drive these recommendations in a significantly shorter time frame, which otherwise would have taken weeks. This saved the company precious resources and helped to expedite the development and implementation of their transformation roadmap. 

8. For companies that have already started on their Smart Factory transformation roadmaps, the recommendations from the Prioritisation Matrix can serve as cross-references to either validate existing plans, or prompt a review of specific areas. For example, Infineon, a German semiconductor manufacturer, had used the Prioritisation Matrix to review whether their ongoing efforts were in the right direction, and this helped to strengthen the integrity of their long-term transformation plan.

9. To ensure the technical robustness of the Prioritisation Matrix, we consulted Industry 4.0 thought leaders in developing the tool. Here, I would like to extend our sincerest appreciation to our knowledge partners – McKinsey & Company, Siemens, TUV SUD and SAP – for providing your expertise and counsel to enhance the integrity of the Prioritisation Matrix. 

Closing: “Integration” is key to harnessing the power of Industry 4.0

10. Before I end my address, I would like to echo a key point that many people have made in the past – that “Integration” is the key to harnessing the power of Industry 4.0. The next big frontier for the manufacturing sector is to achieve not only the integration of equipment, systems and networks within the manufacturing plant, but also with its customers, suppliers, and the broader community. 

11. In addition, it is of paramount importance that we continue to reskill and upskill our workforce so that workers can also contribute to the transformation and benefit from the new opportunities. It is only when technology, process and organisation come together that we are able to unlock the real value of Industry 4.0. Hence, I find the theme for Hannover Messe this year: “Integrated Industry – Industrial Intelligence” is extremely relevant and appropriate.

12. The development of the Prioritisation Matrix is also an example of the spirit of Integration, where the Government, technology leaders, and manufacturers come together to co-create new concepts and solutions to jointly expand the limits of our collective capabilities. 

13. It is with this backdrop that I encourage friends and companies in Singapore, ASEAN, and around the world, to look beyond traditional boundaries, to challenge existing work processes and business models, and to learn and collaborate with one another – across nations, industries, and the public and private sectors. 

14. I wish all of you a fruitful convention and every success in the future. Thank you. 

 
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