Industrie 4.0 by Siemens: Steps Made Today

Industrie 4.0 by Siemens: Steps Made Today

Diana Cozmiuc (West University of Timisoara, Timisoara, Romania) and Ioan Petrisor (West University of Timisoara, Timisoara, Romania)
Copyright: © 2018 |Pages: 19
DOI: 10.4018/JCIT.2018040103

Abstract

The digital disruption is to transform all industries, leading to new business models based on the new technologies. In manufacturing, one model for digital disruption is Industrie 4.0. Proposals for Industrie 4.0 involve the virtualization and vertical and horizontal integration of the value chain, digital services, the digital transformation of products, the digital transformation of production equipment, the digital transformation of factories and the digital transformation of supply chains. The former two are already in place today. This article and its follow-up builds an overview of the pillars of Industrie 4.0 as addressed by the proponents of the model, by consultancy companies, by journal research, and by the customer proposition of Siemens. CapGemeni rate General Electric as a key player in the Industrial Internet in the Digital Revolution, and Siemens is its contestant. This article builds a detailed analysis of Siemens' strategy which covers the steps already made and the steps to be made in the future as a follow-up. The digital twin strategy leads the way to the next stage.
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Introduction

Information technology, in the form of IDC’s third platform, is on its way to disrupt all industries with new business models. These technologies are cloud, big data analytics, social business and mobility and technology accelerators. Mobility and technology accelerators consist of robotics, natural interfaces, 3D printing, Internet of Things, cognitive systems, next generation security. The Internet of Things and the Internet of Services are about to disrupt manufacturing industries. Industrie 4.0 is a proposal to address this issue. Industrie 4.0 is a business model in a vertically integrated and end-to-end engineered lifecycle and horizontally integrated supply chain. Cyber-physical products and cyber-physical systems negotiate production scheduling across the Internet of Things and form smart factories. The Internet of services is used to offer participants to the value chain internal and cross-organizational. Industrie 4.0 was made as a proposal in 2013, referring to possible future technology and business models designed to make manufacturing in high-cost countries competitive and profitable. A similar project in USA is the Industrial Internet.

Capgemeni (2014, p. 74) finds that General Electric is one of the major players in the Industrial Internet, whereas Siemens is recognized by Wall Street Journal (2017), The Economist (2016) as General Electric’s challenger. This article is a case study for Siemens’strategy for Industrie 4.0. The ground for this research is that Siemens, as a leading solution provider to manufacturing industries and an Industrie 4.0 adept, will create their technologies and thereby capabilities and will support their business models. The goal of this research is to expound Siemens’ customer value proposition and the product, service and solution offerings that underpin it and compare it to mainstream literature about the Industrie 4.0 technologies, capabilities and business models. It involves the literature review about Industrie 4.0 according to the main consultantancy bodies that provide the vision and to technology journals that provide the details of the current technology progress to the vision and research and development needs.

This article will provide the highlights of the vision and research in technology journals, not an exhaustive view. Data about Siemens is gathered via Siemens’ communications in annual reports, the Siemens Website, Siemens The Magazine, Siemens Pictures of the Future, Siemens press releases, searches via key word about Siemens. This body of data is explored, and patterns are induced; the findings are expounded, analyzed and critiqued in a strategic management approach.

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