# Defining SMEs' 4.0 Readiness Indicators
## 1 Introduction  
In the 20 th century, Germany declared a new industrial revolution called \"Industry 4.0,\" which meant \"High-state Strategies\" [1]. It includes smart machines, smart devices, intelligent products, cyber-physical systems (CPS), cloud computing, Internet of Things (IoT), Internet of Service, and big data analysis [2]. These integrate production processes and operations through intelligent work systems, such as automation, robotic devices, and sensors. A smart factory systematically incorporates production technology, marketing, logistics, and operation management. It can replace labor, paper, and documentation, and it supports decision-making. An organization should be flexible [1] and integrate with supply chains [3]. Smart manufacturing is communication between machines to machines and humans [4], a machine or equipment kit that operates a business with the high potential to have products through a self-control operation. It can improve and report the results of the production and the period of self-repair. The machine and device have to have a sensor installed and are programmed by advanced technology, such as robotics and automation machines, and include the transfer part, conveyor, and auto vehicle machine [5]. Then, the product can autonomously track and monitor production information, such as raw material, data storage, source, and integrate all of the value chains at the samesystem. Moreover, the final product can provide information about their lifecycle [6] and presents the process and information about the step of production and how-to carry out maintenance [6,7]. The technology will replace the workplace and reduce costs in the aspects of energy and jobs. Therefore, the organization will increase production efficiency and business revenue. In this high-state revolution, small and medium-size enterprises (SMEs), namely, \"SMEs 4.0.\"  
In addition, the importance of implementing technology to increase efficiency and value creation in small organizations (SMEs) is the main problem. First, there is a lack of knowledge and understanding of the development and improvement of technology in the business [8]. They do not have an awareness of applied technology in production [9]. SMEs cannot evaluate their business to find a gap in technology adaption and are unconcerned about the global and sociality effect [10]. Therefore, the research gap of literature is a limitation in the decision-making in the Industry 4.0 implementation. According to the systematic literature review, many existing scientific researches are focusing on the implementation of Industry 4.0 and theoretical. They provide answers based on their research interests, which is the domain-specific area [11]. Then, the literature review examines Industry 4.0 readiness factors and indicators for SMEs. These are used to evaluate organizational readiness and Industry 4.0 implementation. Exemplary popularity research is that of Impulse Foundation of Verband Deutscher Maschinen-und Anlagenbau (IMPULS) [12], the University of Warwick [13], [PERSON] et al. [14], and [PERSON] et al. [15], which have developed Industry 4.0 readiness assessment. Therefore, the content of Industry 4.0 management is focused only on sizeable industry with high potential and does not support SMEs' capability scale. [10]. Hence, [PERSON] and [PERSON] [9] developed the Smart SMEs 4.0 Readiness model [9] which can support the SMEs' operation in Thailand. The limitation of this model is unclear about the definition and has a similar factor. Based on this existing research, the literature review presented the dimension or pillar for readiness assessment. Most models or tools use the implement-status qualitative measurement, such as Likert-scales and qualitative self-assessment scores [16]. Therefore, the research motivation would like to define Industry 4.0 readiness indicators for SMEs. The final indicators will assess the organization's preparation and help the decision-maker select the essential dimensions to implement Industry 4.0 in organization and value creation.