4.

0 Challenges enterprises face in the

adoption of 4.0 technologies and the
circular economy
4.1.Data and cybersecurity- There is lack of transparency and privacy, data
management and security therefore individuals must protect themselves from system data
and critical manufacturing design or information for data sharing are therefore essential
(Rajput & Singh, 2021).Industry 4.0 also maintains networks throughout the value chain,
therefore the system becomes more vulnerable to attacks (Rajput & Singh, 2021).
Cybersecurity is an essential prerequisite for the future viability of Industry 4.0 system:
therefore, cybersecurity strategies must be incorporated into the information enterprise
technology system (Ghadge et al., 2020). Industries also experience the inability to extract
knowledge from data, unstructured format of collected data, massive amount of data to
manage, store and process, collected data at manufacturing companies often irrelevant,
redundant, noisy and unreliable and also inadequate data processing capacity (Bajic et al.,
2021). Existing network security technologies are still insufficient to ensure complete privacy
and absolute security in IoT and industrial systems, making the development of new
protection technologies a key challenge in Industry 4.0 (Bonamigo & Frech, 2020).

4.2. Lack of industry 4.0 skilled workers-Industry 4.0 companies need

employees with interdisciplinary skills in computer science, mathematics, management,
data analysis, and engineering (Bajic et al., 2021).

4.3. Lack of technological development-The existing technology is not

mature enough to meet the requirements of the highly complex implementations of real
Industry 4.0 (Bajic et al., 2021). There is lack of suitable technology to support CE such as “to
separate the biological or technical mixes” (Cantú et al., 2021)

4.4. Unproductive management and poor administration-Lack

of linear thinking and system thinking of management

4.5. High capital investment cost-Standardization of infrastructure and

development of smart devices and sensor technology are necessary (Rajput & Singh, 2021).
Industries also have the need for large-scale investment in new technologies which refers to
the need to invest significant financial resources henceforth they get discouraged to
consider implementing new technologies due to lack of capital (Bajic et al., 2021). There are
also high costs associated with collection, transportation and sorting of waste and high
investment costs related to surveillance, machinery, transaction costs, investments, etc.
(Cantú et al., 2021).