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Moving past the ‘pilot trap’ to unleash Industry 4.0 in Indonesia

McKinsey 11 Feb 2019 12:00

Governments and businesses must find ways to create confidence in new manufacturing technologies and help early adopters get past initial implementation.

Implementing new manufacturing technologies—collectively known as Industry 4.0—in Indonesia can deliver a substantial boost to the nation’s economy. To succeed, however, government and businesses must find ways to encourage greater confidence, create robust ecosystems, and help early adopters move past the “pilot trap.”

Conversations around the pilot trap and other hurdles manufacturers face in adopting the newest technologies are crucial if Indonesia and other countries are to be equal partners amid a changing global economy. Public and private leaders recently met in Davos, Switzerland, for the World Economic Forum’s annual meeting. Central to this year’s theme is using the Fourth Industrial Revolution, or Industry 4.0, to ensure that globalization becomes more inclusive.

Manufacturing is vital to Indonesia’s economy

In addition, pilots are often badly conceived. For example, pilots are designed around the interests of the most vocal internal advocates of Industry 4.0 rather than focused on solutions that meet an organization’s broader needs. Pilots can also fall short because managers underestimate the extent of organizational and cultural change needed for a broader roll-out, and as a result the pilots remain isolated, stand-alone programs.

About the author(s)

Vishal Agarwal is a partner in McKinsey’s Singapore office, where Alpesh Patel is an associate partner. Karel Eloot is a senior partner in the Shanghai office.

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IndonesiaMcKinseyAsosiasi Pengusaha IndonesiaSingaporeDavos
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