People-centric variables in the fourth industrial revolution: an application of SWARA methodology

Abstract

Purpose

The accelerating business transformation through Industry 4.0 (I4.0) is expected to create significant value in the manufacturing industry by delivering considerably high productivity, superior quality, better efficiency and effectiveness. However, its evolutionary processes have far-reaching challenging for humanity. This has triggered a need to analyze the impact of I4.0 on various people-centric variables (PCVs).

Design/methodology/approach

This paper attempts to analyze the interrelationship dynamics between the PCVs in the current digital-industry ecosystem using a focus-group approach and causal loop diagrams. Application of the SWARA (stepwise weight assessment ratio analysis) methodology has provided its prioritized ranking in terms of importance.

Findings

The study has highlighted that I4.0 has a significant influence on five of the 13 PCVs – human quality of life, digital dexterity, high-skilled talent, low-skilled employment and creativity which contribute to 80% of the total impact.

Originality/value

The prioritized weights of the human factors from the SWARA approach have facilitated the assessment of the Human Resource Development Index (HRDI). The study is also contributing in enriching the literature on the human impact of the growing I4.0 and triggered the researchers to study further its adverse impact on critical human factors.

Key points

1. The paper pertains to debates on a very critical issue of impact of integration of the current intelligent digital technologies in manufacturing and services to transform businesses to be more flexible and agile.

2. This paper features I4.0 as a technology that allows integration of new products in the existing production lines, one-off manufacturing runs and high mix manufacturing.

3. The paper also highlights major adjustments in operational activities, processes, supply chain, and organizational redesign due to I4.0 adoption.

4. The current research study has significantly enriched the literature on the I4.0 impact on people-centric variables (PCVs) using the SWARA method. The use of the Causal Loop Diagram has very aptly brought out the type of causality (polarity) between the different PCVs in the growth of I4.0.