SIRI, the Smart Industry Readiness Index, is an international framework for assessing how ready factories are to adopt Fourth Industrial Revolution technologies. The Singapore Economic Development Board (EDB) developed the framework in collaboration with global experts in industry and manufacturing, and it has become a practical basis for understanding factory readiness in Saudi Arabia.
The index includes 16 dimensions spread across 3 main building blocks, making it possible to measure the maturity and digital readiness of manufacturers of all sizes, from small and medium-sized enterprises to global companies. The assessment is not limited to technology; it also reviews processes, systems, leadership and organization as the basis for building a solid foundation for transformation.
A SIRI assessment helps a factory connect its current state to the requirements of Industry 4.0, and turn data and assessment results into transformation decisions and actionable solutions. It also supports an understanding of the relationship between the level of maturity and the ability to develop processes and systems and improve the operational experience.
Key Points
- The SIRI index measures factories’ readiness to adopt Fourth Industrial Revolution technologies.
- It includes 16 dimensions spread across 3 main building blocks.
- It targets small, medium-sized and global companies in Saudi Arabia.
- It links a factory’s current state to Industry 4.0 requirements and transformation decisions.
Why Did Saudi Arabia Launch the Factories of the Future Program?
Saudi Arabia launched the Factories of the Future program to strengthen the ability of 4,000 factories to adapt to the requirements of the Fourth Industrial Revolution. The program is a strategic step to support manufacturing operations and improve efficiency, as part of a broad, nationwide digital transformation journey in industry and manufacturing.
The program helps factories move from a general assessment to measurable, actionable solutions. Through a SIRI assessment, factory owners and government bodies can identify strengths, gaps and the level of maturity, and then set priorities. For example, improving production scheduling may reduce downtime, while accurate inventory data helps reduce waste.
The program is linked to developing more connected systems to improve productivity and supply chains. This foundation helps direct investment in technology toward clear needs, instead of buying separate tools whose impact is hard to measure and whose implementation is hard to support.
SIRI serves the industrial sector at every scale: small and medium-sized enterprises (SMEs) need solutions that fit their resources, while multinational companies (MNCs) require broader coordination across sites and systems. That is why transformation is not limited to automation; it also covers operations, leadership, the workforce and the operational experience.
| Goal | Description | Target Group |
|---|---|---|
| Improve operations | Raise factory efficiency and reduce downtime | 4,000 factories |
| Provide solutions | Turn the assessment into measurable implementation strategies | Factory owners and government agencies |
| Develop systems | Boost productivity and supply chains | SMEs and global companies |
The program is part of the National Industrial Strategy and Saudi Vision 2030, which aims to increase manufacturing’s contribution to GDP. Major industrial areas, such as Jubail Industrial City, Yanbu Industrial City and the economic cities, are among the most likely beneficiaries given their high density of factories and diversity of sectors.
The Three Building Blocks of SIRI: Process, Technology and Organization
The SIRI framework includes three main building blocks: process, technology and organization. Each block contributes to measuring a factory’s readiness and identifying strengths and gaps, building a more accurate picture of the facility’s maturity and its ability to carry out sustainable transformation in Saudi Arabia.
The Process Block
The operations block examines production flow, the supply chain and the product lifecycle. In a Saudi factory, reviewing these elements may reveal delays in planning or supply, helping the factory choose solutions that raise efficiency and improve the operational experience.
The Technology Block
The technology block shows how automation, connectivity and intelligence affect the ability of systems to collect data and turn it into effective operational decisions. Technology is measured not just by whether tools exist, but by how well they are used to support operations and deliver measurable results.
The Organization Block
The organization block looks at the role of the workforce, leadership, strategy and collaboration in turning technology into everyday practice. This helps link decisions to clear responsibilities within the factory.
The three blocks work together to measure readiness and maturity in a balanced way. A SIRI assessment allows practices and results to be compared through a standardized assessment and used as an indicative benchmark among Industry 4.0 facilities, not as an official ranking of factories.
| Building Block | Sub-Areas | Goal |
|---|---|---|
| Process | Production flow, supply chain, product lifecycle | Improve operational efficiency |
| Technology | Automation, connectivity, intelligence | Strengthen decision-making capability |
| Organization | Workforce, leadership, strategy, collaboration | Achieve sustainable transformation |
The Six Maturity Levels: Where Does Your Factory Stand?
SIRI’s maturity levels range from the absence of digital practices to sustainable innovation. The framework consists of six levels, starting at Level 0, where there are no organized digital practices, and reaching Level 5, where improvement and innovation capabilities are part of the organizational culture. A readiness level is not a final verdict on the quality of a factory; it shows the starting point of its improvement journey in Saudi Arabia.
The average maturity of factories in the Kingdom currently stands at 1.3 out of 5, according to SIDF reports. This figure is a baseline for identifying maturity gaps, not a final result. To reach 2.0 and above, factories need to improve operations, technology and systems through gradual transformation, taking resources and time into account.
Factories use data and assessment results to determine where they stand and build a realistic roadmap that takes into account their budget, human resources and existing systems. The results can be used as an indicative benchmark, followed by choosing the right solutions for each stage. A Level 1 factory needs a different foundation from a Level 4 factory, and the needs of each stage of the improvement journey differ.
| Level | Description | Goal |
|---|---|---|
| Level 0 | No digital practices | Establish the digital foundation |
| Level 1 | Basic digital practices | Improve core operations |
| Level 2 | Limited digital applications | Expand digital use |
| Level 3 | Partially integrated systems | Achieve better integration |
| Level 4 | Fully integrated systems | Strengthen sustainable innovation |
| Level 5 | A culture of continuous innovation | Achieve organizational excellence |
What Happens After a SIRI Assessment?
After a SIRI assessment, the factory begins its digital transformation journey with clear priorities. The assessment includes successive stages aimed at improving operations and technology and measuring the impact of change on performance and the operational experience.
The assessment usually starts with a pre-assessment questionnaire that prepares the factory team to collect operational data and identify the systems and processes that need review. The site visit takes one to two days, during which a certified assessor reviews the technology, operations and actual practices inside the manufacturing facility; it is worth verifying the assessor’s certification and the assessment method used.
After the visit, a debrief session is held to explain the strengths, gaps and maturity level. The results are turned into prioritized, measurable solutions, such as reducing downtime or improving inventory accuracy. The report also sets out a transformation roadmap, ordered by value and feasibility.
A grant of up to SAR 300,000 can support the transformation plan, though its conditions must be checked and spending must be linked to the assessment outputs and the defined implementation phases. These steps mark the start of a practical journey, as the assessment can be repeated over time to track improvement and update priorities.
Among the most important solutions that support implementation of the digital roadmap are integrated ERP systems, which achieve integration between financial, operational and inventory data on a single platform. Riv-ERP, built on Oracle Cloud and headquartered in Jeddah, is an example of a cloud ERP solution designed for the Saudi market, with full compliance with ZATCA requirements and a direct link to the digital readiness findings revealed by a SIRI assessment, although it is not an official part of the index framework.
| Step | Description | Duration |
|---|---|---|
| Pre-assessment questionnaire | Collect operational data and set priorities | One day |
| Site visit | Review systems, processes and technology | One to two days |
| Debrief session | Present strengths, gaps and maturity level | One day |
How Do SIRI Results Become an Implementation Plan?
A SIRI assessment is a decisive step in a factory’s digital transformation journey. This transformation starts by reviewing operational data and measuring the current level of maturity. Based on the assessment results, the operations with the greatest impact are identified before making decisions about new technology or solutions.
The framework helps order the implementation steps by priority and feasibility. The roadmap should define clear responsibilities and performance indicators, such as reducing downtime or improving inventory accuracy, with follow-up dates tied to real needs within the industrial sector.
The experience accumulated from periodic assessments allows processes to be improved gradually, and field experience helps the factory learn from previous results. Results can be compared over time, not because the assessment is mandatory, but to adjust solutions and guide decisions based on actual performance.
| Step | Description | Expected Impact |
|---|---|---|
| Review the data | Analyze operational data | Identify strengths and weaknesses |
| Measure maturity | Assess digital readiness | Set transformation priorities |
| Identify operations | Select the highest-impact operations | Achieve effective improvements |
SIRI in Saudi Arabia: An Integrated Assessment with Clear Benefits
SIRI provides Saudi Arabia with a unified framework for measuring and comparing maturity across factories, reducing reliance on personal impressions. A data-driven assessment turns the results into an indicative benchmark, enabling management to rank technology and solutions by expected impact and feasibility while supporting transformation decisions.
Factories benefiting from the Factories of the Future program span diverse sectors: food, pharmaceuticals, petrochemicals, building materials, and packaging. The needs of each sector vary according to its maturity, the nature of its operations and the size of the facility. A food factory may prioritize quality tracking and product safety, while a petrochemical plant may focus on equipment monitoring and production continuity. That is why SIRI combines a unified measurement standard with a tailored action plan for each factory within the industry, drawing on real experience rather than imposing one solution on everyone.
Saudi Factories: Facts, Figures and Challenges
The Factories of the Future program targets 4,000 factories in Saudi Arabia. This number shows the scale of the industrial journey, as transformation needs differ between factories and production lines depending on the nature of the industry and the size of the facility.
According to SIDF reports, the average maturity of factories is 1.3 out of 5; the report’s date should be checked before using the figure as a current indicator. This baseline reveals challenges in technology, systems and data, and highlights the need for a standardized assessment to measure readiness and support gradual transformation.
The grant that helps fund priority solutions can reach SAR 300,000, subject to eligibility and approved conditions, and it is not guaranteed funding for every factory. Any support should therefore be tied to measurable operations indicators, such as reducing downtime or improving productivity.
Factory challenges call for a variety of solutions: integration may involve connecting ERP, MES and IIoT, or unifying systems and data. Gaps in the workforce and in integration also vary by facility size and the nature of manufacturing, so the experience of each sector should be used rather than applying a single operating standard to everyone.
| Challenge | Description | Proposed Solution |
|---|---|---|
| Maturity level | Average of 1.3 out of 5 | A standardized assessment to improve performance |
| Funding | A grant of up to SAR 300,000, subject to conditions | Link solutions to measurable indicators |
| Technology | A variety of systems in use | Implement integrated solutions |
Conclusion
SIRI offers a practical tool for the assessment of how ready manufacturing plants in Saudi Arabia are to meet the challenges of modern industry. The framework condenses readiness into an organized system that measures operations, technology and organization across 16 dimensions and 6 levels, from Level 0 to Level 5.
The average of 1.3 out of 5 reported by SIDF shows that factories need practical, gradual solutions to reach the national target of 2.0 and above. The assessment turns field experience and operational data into technology decisions and investments in systems more closely tied to real impact, while taking each factory’s maturity level into account.
The next step begins with an assessment, followed by determining the maturity level and ranking solutions by priority and feasibility. Focusing on operations helps avoid buying disconnected digital solutions and supports building a measurable transformation plan with gradual implementation and a clear roadmap. SIRI should be treated as an ongoing tool for improving readiness and reviewing results, not a one-off project.
Read our detailed guide to digital transformation for Saudi factories, and discover the systems that support your factory’s journey from Level 1 to Level 3 and beyond. Start your transformation journey now.
Want to know where your factory stands on the SIRI scale?
Contact the Riv-ERP team to discuss how an integrated ERP system can support your transformation roadmap.
Frequently Asked Questions
What is the SIRI index?
The SIRI index is a framework for measuring the readiness of manufacturing plants in Saudi Arabia, and it helps improve performance and efficiency in industrial operations through a structured assessment.
Why did Saudi Arabia launch the Factories of the Future program?
The Factories of the Future program was launched to support transformation and raise the readiness of the industrial sector, improve operations and promote innovation, contributing to Saudi Vision 2030.
What are the three building blocks of SIRI?
The three building blocks are process, technology and organization, and each focuses on a different aspect of the factory’s performance and maturity.
How are maturity levels assessed?
Maturity is assessed by analyzing the factory’s current processes, the technology in use, and its systems and organization, then determining its readiness and building an improvement roadmap.
What happens after a SIRI assessment?
After the assessment, gaps and priorities are identified, and then solutions and an action plan are developed, including a roadmap, performance indicators and implementation phases to improve operations.
What are the benefits of using the SIRI index?
The SIRI index helps improve efficiency, turn operational data into practical decisions, rank solutions and technology by expected impact, and support competitiveness in the industry.
How can I start using SIRI for my factory?
You can start by contacting the relevant authorities for guidance and conducting an initial assessment to determine your readiness level, gaps and transformation priorities.
What challenges do Saudi factories face?
Factories face challenges such as skills shortages, technology upgrades, multiple disconnected systems, and the need for better integration between data and operations, in addition to growing market competition.
What types of systems support the transformation plan after a SIRI assessment?
ERP systems can support the management of finance, operations and inventory, while MES helps execute and manage production, and IIoT connects devices and collects production-line data. The choice of these systems depends on the needs of each sector and the SIRI results, and this does not mean the framework recommends a specific product. Riv-ERP is an example of a cloud ERP solution designed specifically for the Saudi market, with full ZATCA compliance and a well-considered fit with transformation and implementation requirements.
