Assessing the maturity and benefits of digital extended enterprise

Abstract

Enhancing productivity is a challenge for a whole supply network rather than for a set of separate manufacturing companies. Hence, the concept of Digital Extended Enterprise (DEXTER), a highly competitive manufacturing network, was synthesized. For defining the constituent domains of digitalization, lean manufacturing and extended enterprise, a set of DEXTER models were derived from the literature and the interviews of manufacturing companies. Furthermore, for characterizing the development levels of the particular areas of performance the presented research resulted a DEXTER maturity model. The maturity model comprises of five levels of maturity defined by 69 statements in the key performance areas (KPA): strategy, business model, processes, performance indicators, interfaces and information flow. Finally, the development of four industrial cases over the period of two years were assessed with the DEXTER maturity model and with the key performance indicators (KPI), such as reliability of deliveries and quality. By comparing the findings of the maturity and the KPIs of the case companies, we found that the qualitative and quantitative methods both indicate a leap in productivity. This observation was further reassured by studying the profitability and productivity of the case companies within the period of observation.