Recommendations to improve the level of readiness for industry 4.0 in Mongolia

Abstract

The Fourth Industrial Revolution, also called Industry 4.0, is characterized by the presence of cyber-physical systems that allow the hybridization of the physical world with the digital one. This process is deeply permeating all sectors of society, government organizations, the business sector and citizens. However, harnessing the advanced digital production technologies of the Fourth Industrial Revolution remains extremely concentrated in a few economies. In the case of Mongolia, the percentage of products manufactured by high-tech companies is very low, and the rate of adoption of this new paradigm is quite slow. For this reason, it is necessary to evaluate at the macro level the preparation conditions that the Mongolian nation has to adopt Industry 4.0. In this article, studies that include dimensions of Mongolia's readiness for Industry 4.0 are analyzed, in particular the assessment provided by the GRAMI4.0 model, complemented with some additional specific indicators. Comparisons are made with other countries in the Asian region to establish the position of the country under study with respect to its neighbors. The results of the evaluation made it possible to outline a SWOT matrix and propose general recommendations with the intention of increasing the awareness of government institutions that are leading the electronic transition and industrialization processes, to favorably contribute to the adoption of Industry 4.0 in a more growth in the Mongolian economy.