Abstract
This study investigates the objectives, approval process, decision criteria, metrics, and performance of the Internet of Things (IoT) system investment in four Japanese manufacturing firms through exploratory case analysis. This study conducted semi-structured interviews and several workshops with practitioners to collect, confirm, supplement, and verify the interviews data and the researcher’s interpretations. The study clarifies the actual status of investment activities in IoT systems and the essential common issues. In addition, this study shows that IoT investments in Japanese companies improve production activities’ efficiency. However, collaboration among divisions and departments other than production is not sufficient. This paper also contributes to constructing an analytical framework for comprehensively clarifying IT system investment decision-making and investment effects. These findings will be one of the reference points of the IoT system investment project and will contribute to the recent digital transformation movement in many manufacturing firms.
Highlights
Academic Editor: JurgitaNatural disasters and infectious diseases can cause production activities and supply chain disruptions [1–5]
This study conducted an exploratory case analysis of Japanese manufacturing companies to identify the actual status of investment activities in Internet of Things (IoT) systems and the essential common issues
This paper contributes to constructing an analytical framework for comprehensively clarifying IoT system investment decision-making and investment effects
Summary
Natural disasters and infectious diseases can cause production activities and supply chain disruptions [1–5]. In some countries and regions, including Japan, as the birthrate is declining and the population is aging, the long-term trend is for the number of workers supporting factories and supply chains to decline. In this situation, it will not be easy to continue production activities and supply chain operations that rely heavily on manual labor while increasing productivity. Dynamic environmental factors such as natural disasters, the spread of infectious diseases, and the decline in the working population significantly impact the sustainability of manufacturing and global supply chains. The successful implementation of IoT, digitalization of operations, and smart factories are essential for improving the sustainability of manufacturing and global supply chains
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