# Construction 4.0: A Systematic Review of Its Application in Developing Countries
## 5 Awareness, Understanding, Application, and Challenges of Construction 4.0
### Application of Construction 4.0 in Developing Countries
Certain entities have achieved a significant level of establishment, while others are relatively recent and characterised by their innovative nature. The advent of Construction 4.0 has brought forth significant prospects, underscoring the imperative for a skilled and adaptable workforce and production capability that are capable of addressing both current and future demands [69]. This is reflective of the requirements for developing countries, and the value of upskilling in these countries cannot be underestimated. Moreover, the assessment of Construction 4.0 readiness among industrial enterprises in developing countries is imperative due to the significant challenges currently confronting the manufacturing sector. The challenges discussed pertain to disruptive concepts such as the Internet of Things (IoT), cyber-physical systems, and cloud-based manufacturing. As a result, the growing intricacy across various levels within firms gives rise to ambiguity regarding their awareness to and understand ing of Industry 4.0, let alone Construction 4.0, although both are intimately connected (Section 4.2). Notwithstanding this, in both developed and developing countries, the corresponding organisational and technological capacities, as well as the appropriate strategies to enhance them, are required. This highlights the need for preparedness. As such, the German Engineering Federation (VDMA), supported by experts and industry representatives, devised a comprehensive six-dimensional model for evaluating the preparedness of enterprises for both Industry 4.0 and Construction 4.0 alike [70], as shown in Table 4. The 2023 Network Readiness Index is also a useful gauge in this respect, as shown in Figure 5. \begin{table}
\begin{tabular}{p{113.8 pt} p{113.8 pt}} \hline \hline
**Operational Excellence** & **Enhanced Services** \\ Enhance efficiency through greater automation. & Higher revenues from digitally refined products. \\ Product customisation at the cost of mass-produced & Access to new markets. \\  & \\ \hline \multicolumn{2}{c}{**Physical Elements**} & **Virtual Elements** \\ \hline
**Smart Factory** & **Strategy and Organisation** \\ Digital modelling. & Strategy. \\ Equipment infrastructure. & Investments. \\ Data usage. & Innovation management. \\ IT systems. & \\ \hline
**Smart Product** & **Smart Operations** \\ ICT add-on functionalities. & Cloud usage. \\ Data analytics in usage phase. & IT security. \\  & Autonomous processes. \\  & Information sharing. \\ \hline
**Employees** & **Data-Driven Services** \\ Skill acquisition. & Services. \\ Employee skill sets. & Shares of revenue. \\ \hline \hline \end{tabular}
\end{table} 
Table 4: Industry 4.0—six-dimensional model of Industry 4.0 [70]. Figure 5: Network Readiness Index (NRI) 2023 model—[[https://networkreadinessindex.org/](https://networkreadinessindex.org/)]([https://networkreadinessindex.org/](https://networkreadinessindex.org/)) (Accessed on 1 January 2024). [PERSON] et al. [71], after a review of the literature, suggested six dimensions that should be used to ascertain Industry 4.0 readiness, including technology, people, strategy, leadership, process, and innovation--not dissimilar to those found in the NRI. In 2023, according to the Network Readiness Index (NRI--[[https://networkreadinessindex.org/](https://networkreadinessindex.org/)]([https://networkreadinessindex.org/](https://networkreadinessindex.org/)) Accessed on 1 January 2024), India attained a position of 60 out of 134, just below the value of 61 achieved in 2013 but above the value of 91 achieved in 2016. Low- and lower-middle-income countries dominate the lower places with developing countries such as Nepal (113), Nigeria (109), Pakistan (110), and Bangladesh (112); those with middle incomes dominate the middle-third places and include Thailand (67), Sri Lanka (63), Vietnam (62), and Malaysia (40). In contrast, those with higher incomes or upper-middle incomes dominate the top 50 places, with the USA taking the top spot, closely followed by Singapore.