Industry 4.0: business and technological aspects of change
DOI:
https://doi.org/10.37886/ruo.2021.043Keywords:
industry 4.0, digital transformation, business aspect of change, technological aspect of changeAbstract
Research Question (RQ): What are the key business and technological aspects of the changes brought about by the Industry 4.0 concept?
Purpose: The aim of the research is to develop a model of an effective approach to managing the necessary changes and various aspects of digital transformation in industry.
Method: In product development, companies use the approach of informatization and automation of business processes in managing changes, which is mainly focused on achieving technological changes. Such an approach is no longer appropriate and has become insufficient. We propose an approach that, in addition to the technological ones, also takes into account the business aspects of the necessary changes. Such an approach enables significantly better interaction between all stakeholders involved in change processes. As it arises from business motives, it also leads to significantly better results in industrial practice.
Results: We developed a model of strategic and comprehensive approach to the necessary changes in the digital transformation of the company. We suggest considering aspects of strategy, business processes, technology, employees and organizational culture. The model takes into account various aspects of the necessary changes.
Organization: Proposed model identifies the business and technological aspects of the necessary changes with the introduction of the Industry 4.0 concept in the company. It increases the likelihood of a successful digital transformation and directs change providers to address key content challenges.
Society: The research increases the efficiency and effectiveness of the implementation of the company's digital transformation process. It ensures the identification and consideration of all essential elements of business renewal, which reduces project costs and improves the results of implemented changes. It emphasizes the role and importance of employees, which improves and develops the organizational culture of the company.
Originality: Developed model builds on the existing approach to business renovation and computerization. It takes into account theoretical findings and experiences from projects that bring new insights and new challenges of digital transformation and development of the company into industrial practice.
Limitations / further research: Proposed model has been tested and implemented in industrial practice. In the future, it would be sensible to upgrade its content in all five dimensions that it brings to the business and technological segment of dealing with the necessary changes.
References
Albukhitan, S. (2020). Developing Digital Transformation Strategy for Manufacturing. The 3rd International Conference on Emerging Data and Industry 4.0 (EDI40), April 6-9 2020, Warsaw, Poland, Procedia Computer Science, 170, 664-671.
Beverungen, D., Muller, O., Matzner, M. et al. (2019). Conceptualizing smart service systems, Electron Markets, 29, 7-18.
Daud, S. R., Mukapit, M., Hussin, N. et al. (2021). Digital Employee Experience (DEX): A Preliminary Study. Insight Journal, 8(3), 105-116.
Erjavec, J., Manfreda, A., Jaklič, J. et al. (2018). Stanje in trendi digitalne preobrazbe v Sloveniji. Economic and business review, 20, 109-128.
Goodarz, M. (2013). Industry 4.0 and the upcoming management challenges. Najdeno na: https://www.slideshare.net/axxessio/industry-40-and-the-future-management-challenges
Hyoung, S. K., Ju, Y. L., SangSu, C. et al. (2016). Smart Manufacturing: Past Research, Present Findings, and Future Directions. International journal of precision engineering and manufacturing-green technology, 3(1), 111-128.
Imron, A., Munawaroh, Iswadi, U. et al. (2021). Effect of Organizational Culture on Innovation Capability Employees in the Knowledge Sharing Perspective: Evidence from Digital Industries. Annals of R.S.C.B., 25(2), 4189-4203.
Jurgielewicz, K. (2019). Digital transformation: theoretical backgrounds of digital change. Management Sciences, 24(4), 32-37.
Lee, C. K. M., Zhang, S. Z., & Ng, K. K. H. (2017). Development of an industrial Internet of things suite for smart factory towards re-industrialization. Advances in Manufacturing, 5, 335–343.
Li, B., Hou, B., Yu, W. et al. (2017). Applications of artificial intelligence in intelligent manufacturing: a review. Frontiers of Information Technology & Electronic Engineering, 18(1), 86-96.
Liukkonen, M., & Tsai, T. (2016). Toward decentralized intelligence in manufacturing: recent trends in automatic identification of things. International Journal of Advanced Manufacturing Technology, 87, 2509–2531.
Mueller, E., Chen, X., & Riedel, R. (2017). Challenges and Requirements for the Application of Industry 4.0: A Special Insight with the Usage of Cyber-Physical System. Chinese Journal of Mechanical Engineering, 30, 1050–1057.
Naranjo-Valencia, J. C., Jimenez-Jimenez, D., & Sanz-Valle, R. (2019). Organizational culture effect on innovative orientation. Management decision, 49(1), 55–72.
Nosova, S., Norkina, A., Makar, S. et al. (2020). Digital transformation as a new paradigm of economic policy. 2020 Annual International Conference on Brain-Inspired Cognitive Architectures for Artificial Intelligence: Eleventh Annual Meeting of the BICA Society, Procedia Computer Science 190 (2021) 657–665.
Rassool, M. R., & Dissanayake, D. (2019). Digital Transformation For Small & Medium Enterprises (SMEs): With Special Focus On Sri Lankan Context As An Emerging Economy. International Journal of Business and Management Review, 7(4), 59-76.
Rodseth, H., Schjolberg, P., & Marhaug, A. (2017). Deep digital maintenance. Advances in Manufacturing, 5, 299–310.
Savastano, M., Amendola, C., Bellini, F. et al. (2019). Contextual Impacts on Industrial Processes Brought by the Digital Transformation of Manufacturing: A Systematic Review. Sustainability, 11(3), 891–928.
Singh, Y., & Atwal, H. (2019). Applications Digital Culture –A Hurdle or A Catalyst in Employee Engagement. International Journal of Management Studies, 6(1), 54-60.
Solberg, E., Traavik, L. E. M., & Wong, S. I. (2020). Digital Mindsets: Recognizing and Leveraging Individual Beliefs for Digital Transformation. California Management Review, 62(4), 105–124.
Udovita, P. V. M. V. D. (2020). Conceptual Review on Dimensions of Digital Transformation in Modern Era. International Journal of Scientific and Research Publications, 10(2), 520-529.
Unruh, G., & Kiron, D. (2017). Digital transformation on Purpose. MIT Sloan Management Review.
Vogelsang, K., Liere-Netheler, K., Packmohr, S. et al. (2019). Barriers to Digital Transformation in Manufacturing: Development of a Research Agenda. Proceedings of the 52nd Hawaii International Conference on System Sciences, Grand Wailea, 4937-4946, Hawaii.
ZoBell, S. (2018). Why Digital Transformations Fail: Closing The $900 Billion Hole In Enterprise Strategy. Forbes Technology Council, Council Post. Pridobljeno na http://www.forbes.com
Wang, Y., Ma, H., Yang, J. et al. (2017). Industry 4.0: a way from mass customization to mass personalization production. Advances in Manufacturing, 5, 311–320.
Wimelius, H., Mathiassen, L., Holmstrom, J. et al. (2021). A paradoxical perspective on technology renewal in digital transformation. Information System Journal, 31(1), 198–225.
Xun, X. (2017). Machine Tool 4.0 for the new era of manufacturing. International Journal of Advanced Manufactury Technology, 92, 1893-1900.
