Digital Transformation in SMEs—Lean Management + Industry 4.0

Abstract

Digital transformation will considerably change the technical production environment and the way of working in the industry. This change will take place primarily in the larger conglomerates, but will soon affect small and medium-sized enterprises (SMEs). In Germany, particularly SMEs are of high importance, as they constitute a substantial part of the overall firm population. The initiative Industry 4.0, based on the high-tech strategy of the German federal government, is also a research platform focused on driving the digital transformation process in the German industry. As digital transformation is not only a technical but also a managerial and cultural challenge, many companies have already formulated some strategic digital transformation ideas. In practice, however, only selected and very innovative (often larger companies) have implemented first solutions. These solutions often concentrate on production improvement as cost reduction, flexibility, and quality. The creation of new products and particularly new business models is still a distant prospect. Due to the specific cultural and managerial framework, most SMEs are especially challenged. The digital transformation process in these companies requires substantial changes in leadership and management behavior as well as conduct. Hence, a structured holistic change project, using established methods of the Lean Management Approach, is a prerequisite for a successful digital transformation process. Lean management and Industry 4.0 form a compulsory symbiosis.