Productivity and Quality in Smart Manufacturing Systems

Critical Success Factors for Internet of Things (IoT) Implementation in Automotive Companies, Indonesia

Inaki Maulida Hakim, Moses Laksono Singgih and I Ketut Gunarta

Extended Abstract

In 2018, the Indonesian government launched the Making Indonesia 4.0 Roadmap under The Industrial Revolution 4.0 era. This road map aims to increase industrial competitiveness and make the nation one of the world’s top 10 economies by 2030. The role of the Internet of Things (IoT) in The Industrial Revolution 4.0 is important to improve work efficiency and reduce companies’ costs. Although several manufacturing companies in Indonesia have successfully implemented this technology, so it is important to identify the critical success factors in its application for other companies. Therefore, this study discusses the essential factors of success for implementing IoT in automotive companies in Indonesia, which have differing specific application characteristics from the conditions in other countries. The Delphi method obtained data from 8 dimensions and 32 subdimensions. These included the finance, regulatory, people and management, operation, technology, innovation, ideas, and resource dimensions. Other automotive companies can use the results as a reference in implementing IoT and evaluating and improving their business performance, as well as formulating the right strategy to achieve excellence in the long term.

Keywords: critical success factors; IoT; automotive companies; Delphi method


The government has realized that the rapid development of internet technology to facilitate production activities needs to be controlled and managed efficiently. Currently, various devices, including the Internet of Things (IoT), can connect and communicate with each other and exchange data through an internet connection. IoT technology is one of the innovations predicted to change the order of human life and the manufacturing industry. The launch of the Industry 4.0 Roadmap formulated by the Indonesian government has shown that technology can change the business processes of the manufacturing industry from traditional to modern.


The Delphi method is a reliable way of obtaining information and making decisions, as well as determining indicators and parameters by exploring ideas from experts in their fields using questionnaires. Its attributes include time, number of rounds, the expert, and the expected input and output. This method generally starts with literature research, followed by discussion and feedback sessions, results formulation, and a conclusion. Figure 1 is shown steps to prepare the questionnaire by the Delphi method.


In the previous people and management dimension based on the Delphi method, there were three sub-dimensions deleted. They are the assessment of employees’ skill levels in operating IoT, effective communication between employees, and companies’ image and network, based on experts’ opinion that the three sub-dimensions are not priorities in automotive companies. IoT interacts with internal activities or the external environment of the company. Companies can monitor their production progress in real-time, as well as be able to analyze historical data obtained in connection with the company’s production processes. Therefore, by using IoT technology, companies focus on how IoT technology can drive strategy and generate real ROI (return on investment) for companies.


There are eight dimensions of critical success factors obtained in this study on IoT in automotive companies. They are finance, innovation and ideas, marketing, operations, people and management, regulation, resources, and technology. Preliminary research obtained 36 sub-dimensions from each dimension, which were validated by conducting interviews Sustainability 2023, 15, 2909 15 of 18 with expert panels from different backgrounds to produce objective results.

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