Towards Industry 4.0: A Guide to Digital Transformation for Food Sector SMEs in Brazil

Abstract

Industry 4.0 emphasizes connectivity and digitalization, transforming business operations worldwide. In Brazil, however, the adoption of these technologies remains relatively limited, with only a small proportion of small and medium-sized enterprises (SMEs) fully engaging in digital transformation initiatives. Such engagement is critical to the national economy, yet SMEs face substantial barriers, including high implementation costs and limited technical expertise. This study focuses on SMEs in the food sector in S\~{a}o Paulo, aiming to provide strategic guidance for adopting Industry 4.0 practices and Information and Communication Technologies (ICTs) to support their technological transformation and improve digital maturity and competitiveness. To establish the theoretical foundation, a comprehensive literature review was conducted. This was followed by interviews with 10 food sector SMEs, using an online questionnaire of 21 questions organized into five categories: Technological Infrastructure, Automation, Management, Strategy, and Market. The results revealed that, while SMEs are interested in technologies such as QR codes, pagers, and social media, they face obstacles related to training, knowledge, and implementation costs. Nonetheless, they acknowledge the importance of digital transformation in their operations. Based on the data collected, a set of tailored recommendations was developed to support SMEs in planning and implementing effective digital transformation strategies.