The focus of this research study is in the field of future manufacturing, which is characterized by machine-to-machine communications and virtualized processes along the supply and value chain, in what is also termed digital manufacturing. This form of future manufacturing is called Industry 4.0, or the Industrial Internet of Things, and it presents both enormous business opportunities and challenges. Businesses have to radically change their current processes, procedures, products, and services in order to benefit from this development. The aim of this study is to investigate this current development by considering related technologies, business requirements, and strategic approaches that need to be applied by manufacturing companies to perform this transformation successfully. The research study includes a review of relevant literature, and reports on extensive practical research (based on an inductive qualitative research approach), whereby 40 reports from leading consulting companies were analysed, and semi-structured interviews with 11 industry experts were conducted. According to the research findings, this development is widely seen as an industrial revolution with two groups of identified technology driver: the main driver includes Cyber-Physical Systems, Big Data & Analytics, Cloud Computing, and IT-Security Systems, all of which offer tremendous opportunities for manufacturing businesses; and, the second group comprises technologies including Autonomous Robots, Additive Manufacturing, Augmented Reality, and Simulation (all of which are related to this development in a wider sense). From the findings, 10 generalized business requirements have been identified, the most important of which are a ‘Digital Organisational Mind-Set’, ‘Digital Infrastructure’, ‘Future Workforce’, and ‘Collaboration in the Ecosystem’. The other requirements included ‘Data and Cyber Security’, ‘Smart Innovation Processes’, ‘Digital Value and Supply Chain’, ‘Digital Product and Service Portfolio’, Capitalizing on the Value of Data’, and ‘New Types of Business Models’; these are more specific, and depend on individual company circumstances. Based on this study’s findings, a Digital Transformation Model has been proposed, which builds upon the theoretical framework (which comprises all research findings), and which can be applied by the manufacturing industry in their business practices. The main conclusions drawn from this study are that Industry 4.0 (I40) resp. Industrial Internet of Things (IIoT) present significant opportunities and challenges, not only for individual manufacturing businesses, but also for the entire manufacturing industry as well as the global economy. The means of preparing and transforming businesses to meet the demands of I40 resp. IIoT will inevitably take the form of joint projects, and will not be a ‘one-player game’; collaboration and cooperation amongst businesses and other partners will be fundamental. Manufacturing businesses are recommended to start this transformation immediately, regardless of their size and objectives. Companies should follow a systematic and strategic approach that allows them to exploit the short-term and especially long-term potential benefits of I40 resp. IIoT, whilst still being flexible enough to react quickly and embark on new developments.
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