Manufacturing companies, independent of operation sector and size, must be able to produce lot size one products, just-in-time at a competitive cost. Coping with this high adaptability and short reaction times proves to be very challenging. New approaches must be taken into consideration for designing modular, intelligent and cooperative production systems which are easy to integrate with the entire factory. The coined term for this network of intelligent interacting artefacts system is cyber-physical systems (CPS). CPS is often used in the context of Industry 4.0-or what many consider the forth industrial revolution. The paper presents an overview of key technological and social requirements to map the Smart Factory vision into reality. Finally, global and Romanian specific challenges hindering the vision of a true Smart Factory to become reality are presented.