Citation :

Sanket Parab, Ashish Deshmukh, "IoT Readiness in an Auto-Component SME: Barrier-Cost-KPI Prioritization using an Indian SME Readiness Index," International Journal of Engineering Trends and Technology (IJETT), vol. 74, no. 9, pp. 383-398, 2026. Crossref, https://doi.org/10.14445/22315381/IJETT-V74I9P126

Abstract

Indian Small and Medium Enterprises (SMEs) face significant structural challenges in adopting the Internet of Things (IoT), despite its transformative potential for enhancing manufacturing quality and operational efficiency. Existing readiness models often overlook the integrated impact of barrier severity, firm-specific cost structures, and quality-centric Key Performance Indicators (KPIs) unique to emerging economies. This research develops the Indian SME Readiness Index (ISRI) to provide a comprehensive prioritization framework for IoT adoption. Employing a quantitative single-case study methodology, the ISRI was applied to an auto-component SME in Aurangabad serving global OEMs. The framework utilizes barrier scoring across 15 validated indicators, cost factorization across 20 balance-sheet categories, and strategic KPI mapping. Key findings: “future viability and profitability”, “lack of IoT standards/architecture”, and “knowledge management deficits” as the most critical barriers threatening Parts Per Million (PPM) rates and delivery reliability. These results imply that IoT interventions must be prioritized based on their direct impact on quality-related financial risks. The study’s primary contribution is the ISRI framework, which fills a critical gap in context-specific readiness assessments for Indian SMEs. Practically, it offers an Excel-based diagnostic toolkit for managers to align digital transformation with quality objectives. While limited by its single-case focus, the research provides a robust foundation for future multi-sector validation, enabling evidence-based policymaking for cluster-level industrial growth.

Keywords

Internet of Things, Industry 4.0, SMEs, Readiness Assessment, Key Performance Indicators.

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