**5. Best practices in the Czech Republic related to Industry 4.0**

In the Czech Republic, concrete examples of the implementation of Industry 4.0 elements are observed in many industries, but the Industry 4.0 deployment rate is very miscellaneous, reflecting the diverse structure of the industry. Robotics and automation are the fastest in the automotive and electrotechnical, pharmaceutical, or chemical-technological industry or services. Technology development and robotization of human activities are progressively reflected in other sectors. While it was primarily about replacing manual work, robotization is currently taking place in other segments, such as replacing work with accounting software solutions, automated logistics, maintenance, IoT, or customer approaches (chatbots, software solutions in banking, managed CRM approaches, etc.). A number of examples of companies were identified with a different level of industry introduction rate of 4.0 or their business is directly related to Industry 4.0 and we give examples.

(Potential), *Aplikace* (Application), *Partnerství znalostního transfer* (Knowledge transfer partnership), and *Proof of Concept* for commercialization of the research results. *Služby infrastruktury* (Infrastructure Services) and *Spolupráce* (Cooperation) support development of the clusters,

The program *Pro-Commercial Public Procurement* provides funds and subsidies for innovative solutions for the public sector. Business entities can benefit from the program *ICT a sdílené služby* (ICT and shared services) providing financial aid to support data center operation and development of software or *Inovační vouchery* (Innovation vouchers) for obtaining knowhows. The *Operational Program OP VVV* (Ministry of Education, Youth, and Sports) and the *Operational Program OP Z* (Ministry of Social Affairs) are planned to finance the activities

In the light of facts, we have identified the program *Technology* [17] targeting beneficiaries such as start-ups, microenterprises, and SMEs; the program focuses on the acquisition of new machinery and technological equipment. Regarding the territorial dimension, the program focuses on the economically troubled regions and areas with high unemployment rate and urban areas with presumed participation in the integrated territorial investments [17]. The main objective of the program is to provide support to increase the number of new business projects implemented by start-ups and microenterprises. The program falls under the SME support programs for the period of 2015–2020, implemented by MIT of the Czech Republic with a cooperation of *Czechinvest* (Investment and Business Development Agency). The total budget available for the program is 220,795,917 EUR. The subsidy for each project may vary from 3700 EUR (microenterprises) and 37,000 EUR (SMEs) up to 740,000 EUR. The maximum aid intensity is equal to 35% (medium enterprises) or 45% (small and microenterprises) of the eligible costs. *Technology* is a support program within the *OPEIC* (Operational Program Entrepreneurship and Innovations for Competitiveness) [17]. Further programs *Trio* (€140 million), *Gama*, and *Epsilon* administrated by the MIT are considered as other options of the funding for the realization of the P40 activities. These programs aim to improve knowledge transfer between the industry and R&D institutions. At this stage, no model for private financ-

ing is in place. The government is planning to explore different possibilities.

**5. Best practices in the Czech Republic related to Industry 4.0**

nies with a level of penetrating technological development.

The next part introduces selected companies, best practices, and their related issues with Industry 4.0 in the Czech Republic. We have identified many examples of companies that are very active in the area of Industry 4.0 that we have made a categorization of selected compa-

In the Czech Republic, concrete examples of the implementation of Industry 4.0 elements are observed in many industries, but the Industry 4.0 deployment rate is very miscellaneous, reflecting the diverse structure of the industry. Robotics and automation are the fastest in the automotive and electrotechnical, pharmaceutical, or chemical-technological industry or services. Technology development and robotization of human activities are progressively

technology platforms, cooperation networks, innovation centers, and incubators [9].

related to the education and social system.

34 Digital Transformation in Smart Manufacturing

First, we introduce the leaders in digitization, automation, and robotics (the most advanced technologies, in collaboration with technical research centers, they determine trends, they give direction), and companies are characterized by the implementation of Smart Manufacturing systems leading to Smart Factory. As an example in these high-tech issues is *ABB Czech Republic*—a leading supplier of industrial robots, modular manufacturing systems, and services. The company focus is on manufacturers to improve productivity, product quality, and worker safety. ABB has installed more than 250,000 robots worldwide, e.g., in Zetor Kovárna a.s., where hot materials are processed by a robot; at Composite Components a.s., where a fully automated workplace for milling fiberglass parts is installed; and the installation of the YuMi robot at the Low Voltage Plant in Jablonec nad Nisou. YuMi is the world's first robot enabled to work with people. The company is a partner of the Czech Institute of Informatics, Robotics and Cybernetics.

As a leader in automotive is *ŠKODA AUTO, a.s.* which implemented approaches in a big data analysis (visualization of the processes across platforms, lean process management, security principles); strategy, methods, and standards for IIoT in production; sensitive robotics—robot KUKA iiwa; system integration; predictive maintenance, system integration, additive manufacturing, and augmented reality. The company's leading projects implemented are: *Smart Maintenance* upgrade in the PKT/4 Central Maintenance Department: this innovation relates to the maintenance of machinery and equipment; *Mobile solution* with installation of *Smart components* that track their own status and report an error or failure; *Transparent Factory*—an automatic data acquisition system (processing and evaluating large data requirements) from all workplaces; *Digital Factory*—using digital models, simulations, methods, and 3D visualizations to efficiently plan, implement, manage, and continuously improve all processes and resources within the plant; and the TECNOMATIX and Siemens digital solutions portfolio that enables simulation, testing, and studies.

Second, the following companies represent the high progress in software solutions, maintenance, and high technology development areas, for example, *SIMPLECELL NETWORKS a.s*. the first Czech public mobile operator of the SIGFOX technology network for the Internet of things; *SERVODATA a.s.*—focused on business and technology solutions, with the main domain of the portal solutions (e-shops, e-commerce, and portals), project and IT management, business process management, Intranet, Extranet, DMS, (CRM, E-contracts), and business intelligence. The leader in electrical power solutions is *ELCOM a.s.* with drivers, power inverters, industrial power systems, automated test systems, visual inspection, monitoring systems and electrical network analyzers, and activity in software development (instrument drivers and application development.

The *CERTICON a.*s. company is involved in the innovation and development of software and hardware solutions for the areas of healthcare, telecommunications, and the automotive and aeronautical industries. This company very closely cooperates with top technical universities and research laboratories throughout the EU. Focused areas of interest are: SmartCity (analysis of images from security cameras, detection of parking spaces, marketing of shopping centers); automotive (software for vehicle diagnostics—e.g., D-PDU API, RP 1210, ODX, OTX, and automotive SPICE); healthcare (monitoring of patient safety, analysis of biosignals, EPIQA smart scheduler for healthcare, and physiotherapy tools); telecommunication; and industry (predictive maintenance, capacity planning, and crisis plan).

worsened its ranking in other dimensions. The country performs best in integration of digital technologies by businesses, mostly because many SMEs embraced e-commerce. The country's most significant challenge in digitalization is to improve the use of Internet services, in par-

A Research Agenda of Industry 4.0 from the Czech Perspective

http://dx.doi.org/10.5772/intechopen.71798

37

Overall, however, the Czech Republic is at the start of the road to Industry 4.0. As was demonstrated, since 2015, the FIR has become more significant and was also reflected in crucial strategic documents from the Ministry of Industry and Trade and Alliance Society 4.0 for spreading policy practices supporting operational Programs. It can be argued that the debate about Industry 4.0 brought a new stimulus in the spreading and usage of new technologies in society. But there are two levels of view—many companies in the manufacturing, financing, and service sectors see great potential, but there is currently a still significant "hesitation" of

The Fourth Industrial Revolution also brings some problems, such as shortage of skilled workers. Companies call for the reform of the education system. Many Czech companies already use and fulfill some of the elements of the Industry 4.0 concept. In addition to companies in the automotive industry (as top leaders in technological and digitalization in the country), we mention, for example, the electrotechnical, pharmaceutical, or chemical-technological industries. Technology development and robotization of human activities are progressively reflected in other sectors. While it was initially primarily the replacement of gross manual work, robotization is currently taking place in other segments, such as replacing work with accounting software solutions. In summary, a trio of German companies in the Czech Republic is leading the way with the 4.0

In this chapter, we have explored that the Czech Republic comprised in the moderate enabling group and is in a position of catch-up and convergence. The Czech Republic performs well in the dimension of ICT start-ups. The success lies in the country's extensive access to IT skills obtained through formal education or offered by inwork ICT skills training. Czech businesses benefit from active participation in online trade. Moreover, a significant share of enterprises' total turnover derived from e-commerce contribute to a stable position of the Czech Republic

We considered some of the basis of the low performance in the area of entrepreneurial culture derives from a negative image of entrepreneurship in the Czech Republic. Recent data show a preference toward employment rather than self-employment. Also, the majority of the population has a low interest in setting up a business or taking over an existing one. Overall, the country tends to have a negative perception of entrepreneurship. The demand for digital skills also provides an opportunity for further enhancement, particularly regarding the

This chapter was supported by the Ministry of Education, Youth, and the Sports Czech Republic within the Institutional Support for Long-term Development of a Research Organization in

revolution. They are Volkswagen-owned Škoda Auto, Continental, and Siemens.

in the area of e-commerce among the EU member states.

demand for ICT skilled personnel.

**Acknowledgements**

2017.

ticular for e-government and entertainment and social purposes.

companies (e.g., SMEs) with Industry 4.0.

The biggest Czech steelmaking company with domestic capital and produce the largest amount of steel in the Czech Republic are *Třinecké železárny* together with *Moravia Steel,* ranks among the most significant industrial groups in Middle Europe. The company implements production lines and units at a high degree of automation therefore mainly data are automatically available on systems, SCADA (InTouch), Manufacturing Information System (MIS), ERP (SAP); advanced planning system (APS); maintenance planning and management— ERP and MES; data interconnection between production facilities and nonproduction facilities—central data management system, system wireless coverage, machine-readable product marking, automatic nondestructive tests, modern security technology for IT perimeter.

A company with high progress is *Brisk Tábor* using, for example, automatic welding machine for side electrodes, burning of the insulator, 3D measurement, and modular assembly line for final assembly of the spark plugs. The company is preparing for the gradual transition of all company processes to fully electronic digital platform by bidirectionally linking the flow of information from production technologies to the information system to create fully new control systems and robotic workplaces.

Best practices are identified and there are hundreds of successful examples in the Czech Republic, but they share the fact that these companies use modern technology, know-hows, and large capital investment and dispose of the "will" of the CEOs to closely cooperate and implement issues to Industry 4.0. Also we include companies such as: *AVG*; *Avast* (software security); and *Minerva*—leader in ERP in EMEA region; and automotive and electronic leaders (*Continental Automotive Czech Republic s.r.o*., *Siemens*, *Bosh*, and *Toyota Peugeot Citroën Automobile* [TPCA]). According to EY [18], 76% of Czech manufacturing companies continue to see Industry 4.0 as an opportunity to grow business. Czech companies associate the benefit of the new industrial revolution most often with productivity gains (51%), efficiency gains (47%), or the provision of data for production control (40%). One-third wants to allocate more than a tenth of its total investment spending over the next 3 years in Industry 4.0 technologies and tools and 57% of companies considered lack of qualified staff the biggest obstacle to implementing Industry 4.0. (*A total of 102 major Czech manufacturing companies took part in the survey.*)
