Abstract
This chapter is going through the Industry 4.0 concept. On the first hand, it relies on advanced technologies which have a high potential to save costs and deliver groundbreaking products and services. On the other hand, Industry 4.0 brings so many innovations and opportunities that it requires an essential change in thinking and organization. Presented insights are based on conducted comparative analysis and its results. This analysis compared significant maturity models for the assessment of Industry 4.0 readiness in organizations and defined universal dimensions. These identified dimensions uncovered existing gaps in the analyzed maturity models. Solving these missing areas required additional research that provided additional insights not only in Industry 4.0. The results of this analysis provided an overview of critical factors related to Industry 4.0 and possible solutions to missing parts. The technical challenges related to technologies, standards, and architectures used in Industry 4.0 are introduced. Organizational specifics of this concept are outlined.
TopIntroduction
A current digitalization trend and related Industry 4.0 concept are important drivers in today’s profit and non-profit organizations. Everything is getting smarter, faster, more intelligent, and more automated. Sometimes, it is possible to see ideas of products and devices which were known in sci-fi only a few years ago. Recent advancements in science enable new ways and possibilities in the life of people.
The digitalization trend represents and includes a lot of things. There are already elaborated plans of smart cities which use massive automation solutions for the improvement of everyday tasks like for instance traffic control or energy distribution. Known are also intelligent eGovernment solutions that decrease time spent in queues and make bureaucratic acts easier for common citizens. In the private sector, smart households are popular because everybody wants to show turning lights on and off to their friends at a bus stop. All these concepts and many others can be classified as a part of the digitalization trend. They are often hidden behind names like Government 4.0, Health 4.0, Farming 4.0, Business 4.0, or Industry 4.0. Industry 4.0 was one of the first defined concepts related to the digitalization trend and this concept is the main topic in this chapter.
Industry 4.0 brings new opportunities to organizations that operate in various industries - from drilling and mining to mass-production and high-tech. However, this concept primarily aims at manufacturing companies that look for a new way on how to optimize their production, processes, and daily tasks. It is also the reason why these companies are investing in research in this area. Industry 4.0 is not only used technology but at least in manufacturing, it represents the most advanced synergy between the business strategy and technical capabilities of available technologies. The main general vision of Industry 4.0 involves two main elements: smart factories and smart products. Smart factories are capable of drastic saving of costs via high flexibility and optimization of production. Smart products should ensure high sales thanks to their high attractivity and accompanying services attached to them which generates additional revenues.
But the building of a smart factory and designing of a smart product are not simple tasks. In fact, it is quite difficult. And it is also the reason why such attention is paid to Industry 4.0, research is so interesting, and this chapter was written. This chapter summarizes the concepts and ideas related to Industry 4.0 in manufacturing. How does it influence the organization and what is it required from this organization, its IT department, and its management team? What are the opportunities, challenges, specifics, and issues of Industry 4.0? What is Industry 4.0 in manufacturing? Just these questions, this chapter is trying to answer.
Key Terms in this Chapter
Business-IT Alignment: An optimal harmonization of activities and goals between business informatics and the rest of the organization.
Effective Leadership: A set of skills, methods, and intuition which lead to the continuous growth of trust and engagement within an organization.
SOA: An architectural concept which is characterized by high flexibility and modularity with defined boundaries by standards and principles.
Business model: An economical and organizational representation of the process which delivers an added value.
Learning Organization: An organization with developed effective processes and culture that support collection and handling innovations, development, engagement and motivation of employees, and proactive use feedback.
Industry 4.0: A concept when technologies, organizational structure, and innovative culture are combined for the achievement of groundbreaking competitive advantages.
Strategizing Process: An activity which leads to the creation of long-term goals and plans on how to achieve them within known circumstances and limitations.