Incorporating Industry 4.0 in Corporate Strategy

Incorporating Industry 4.0 in Corporate Strategy

Anirudh Agrawal (Copenhagen Business School, Denmark), Sebastian Schaefer (TechQuartier, Germany) and Thomas Funke (TechQuartier, Germany)
DOI: 10.4018/978-1-5225-3468-6.ch009

Abstract

Knowledge tells us that increase in productivity decreases margins in a competitive market and increases margins in a growing market. Not much is known about Industry 4.0 and its position within the corporate strategy and its possible impact on corporate performance. This chapter discusses the position of Industry 4.0 within the corporate strategy and how it may impact corporate performance. The main points include that corporates have to reflect on their core resources, leadership, and knowledge portfolio to take advantage of the Industry 4.0 platform. The corporates engaging in cost and volume strategies and those engaging in fast new product development strategies may benefit greatly with Industry 4.0. The services of Industry 4.0 may be outsourced but with added risks. Finally, the increased productivity with Industry 4.0 under constraint market growth may lead to the potential risk of market failure and large-scale layoffs.
Chapter Preview
Top

A Brief Overview Of Industry 4.0

Industrial revolutions have always been accompanied with a disruptive increase in productivity. The increase in productivity has also increased wages and, subsequently, the quality of life of the citizens. The evolution of Industry 4.0 is incremental, yet its effect will have a disruptive impact on corporate performance, productivity and overall markets and industries. One can understand it better when studying all the different stages of industrial revolutions (Figure 1).

Complete Chapter List

Search this Book:
Reset