Digital Regions programme to prepare business for modernisation

One of the side effects of Covid-19 will be to speed up the process of modernising for many businesses, particularly in terms of their online presence and use of technology.

That's according to Ernact, the Letterkenny based EU communications technology network. It as published research saying that many local companies do not believe they have enough information about what what's referred to Industry 4.0, the next phase of industrial development which builds on computerisation advances with robotics, 3D printing and other high end technology.

Ernact is now rolling ou its "Digital Regions" project in the North West with LYIT, Donegal LEO and Enterprise Ireland.

Ernact's Programme Manager is Margaret Quinn..........



More details -

DIGITAL REGIONS study aims to improve regional policies

in Manufacturing

Analysis shows need for policy change for Manufacturing to grasp the potential of
Industry 4.0 in European Regions, including Border, Midland and Western region

Letterkenny, 20 August 2020

DIGITAL REGIONS, or ‘Regional policies adopting Industry 4.0 for their Digital Transformation’, is an
international project part-funded by the Interreg Europe programme in which 8 European regions,
including Border, Midland and Western region represented by the ERNACT network, are working together
to address a common challenge: how to support the manufacturing sector by adapting innovation policies
for Industry 4.0 (I4.0), the 4th industrial revolution.

I4.0 is already well underway and offers manufacturing dramatically increased agility, flexibility,
productivity and capability to produce new products. Typically, it involves advanced and disruptive
technologies, deep / wide-spread process changes and needs for upskilling and re-training in the work-
force. This level of change typically challenges smaller companies the most. It matters because adoption of
I4.0 is crucial to maintain competitiveness and to future survival in the manufacturing sector.

Findings that affect the North West of Ireland
With the invaluable support and collaboration of regional stakeholders, (Enterprise Ireland, LYIT / Wisar,
Sligo IT / PEM, LEO Sligo, NWRA, W8 Centre, Louth & Meath ETB), the project has identified significant
gaps and opportunities in the readiness of SMEs for Industry 4.0 across the Border, Midland and Western
region. As all partner regions have used a common methodology, the partnership has been able to
objectively compare the local situation with other European regions and reach some conclusions to achieve
a policy change.

The analysis made has covered aspects to facilitate I4.0 adoption in SMEs such as: availability of I4.0
related facilities, initiatives and ecosystems, supporting programmes and the required future I4.0
workforce and skills. The analysis has been carried out following a 3-step approach: a Macro-analysis of

national and regional indicators with relevance to the implementation of Industry 4.0 technology; a Micro-
analysis with a regional focus to analyse results; Benchmark: a consolidated assessment and comparison of
all partner regions to identify commonalities and complementarities regarding existing challenges and

The analysis made by DIGITAL REGIONS in project’s 8 partner regions reveals a similar pattern across the 8
regions: knowledge of I4.0 is low, awareness of I4.0 related supports and funding is low and many
businesses face resource challenges to take advantage of I4.0. This is despite the fact that the participant
regions range from Strong, Moderate to Modest Innovators (ref the European Regional Innovation Score
ranking RIS 2019).

The statistics for the Border Midland and Western region indicate the following:

} 21% of occupations in manufacturing in Ireland are at high risk from automation. Occupations
associated with processing and operations, especially manual work e.g. packing, machine
operatives, are most at risk.
} Midlands (65%) and Border (64%) have the highest proportion of their workforce with a high or
medium risk from automation due to more low-technology manufacturing. This is above the
national average risk level; Dublin has the lowest proportion at risk (53%).
} These regions most at risk also suffered high job losses during the recession and are among the
most exposed to Brexit.

Detailed local analysis was carried out via an online survey. Most of the responses came from micro and
small businesses, and from across a wide range of sectors. The results, from 40 companies, revealed the
following for the Border Midland and Western region:

} Lack of knowledge on I4.0 concepts: Most respondents (62%) are not so familiar / somewhat
} Lack of information to understand I4.0 challenges / opportunities: Most respondents have little or
no information (54%).
} Awareness of supports: 69% do not know about state supports.
} Highest impact technology: Is seen to be Robotics / Cobotics (48%) followed by AI.

} Most critical for competitive advantage: Automation of Manufacturing process is seen as most
critical by 62%. Then, data analytics by 27% to reduce costs.
} Most critical market challenges: Product / process innovation (39%) and to enter other national
markets (28%).
} Envisages I4.0 strategic goals: 30% Addition of new products / services, 21% increase gross margins,
18% increase efficiency.
} Job creation: Majority of respondents believe that implementing successful Industry 4.0 would lead
to additional employment.
} COVID-19 impact: Expected to impact 85% of these respondents.

Led by ERNACT, the main objective of the DIGITAL REGIONS partnership is to achieve a 15% increase by
2022 in the number of SMEs from the manufacturing sector to implement I4.0 solutions as a result of
improved innovation policies. The pathway is via cooperation with stakeholders in the participant regions
and between regions to identify measures to facilitate improved I4.0 policy cooperation, increased SMEs
participation and increased availability of I4.0 skills. The regions involved are Varna (Bulgaria), Upper
Franconia (Germany), Border Midland and Western region of Ireland, Centro Region (Portugal), West
Region (Romania), Ljubljana (Slovenia), Cantabria (Spain) and Canton of Bern (Switzerland).

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