The German government introduced the concept of "Industry 4.0" in 2011 as part of its high-tech policy, aiming to address emerging challenges and sustain the competitiveness of the German manufacturing industry. This paper explores the assessment of a firm's preparedness for Industry 4.0 through readiness modeling. Recognizing the complexity of Industry 4.0 technology adoption, the study proposes a two-phase research approach involving identifying impediments and evaluating readiness based on each company's maturity level. Leadership emerges as a critical factor in determining a company's strategy for implementing Industry 4.0, emphasizing the need for industrial managers to prioritize assessing preparedness levels and overcoming obstacles to change. The study underscores the importance of institutional policies and stakeholder support, calling for further investigation to articulate Industry 4.0 hurdles and identify strategies for mitigation. Success in the next stage of digitization hinges on adopting effective technology and business strategies. Germany and other developed nations enjoy a significant advantage through using smart devices as platforms for innovative services and business concepts. To stay competitive globally, businesses and nations must leverage this advantage.