The key promise of the “Industry 4.0” concept is as striking as it is fascinating: We are about to witness a new industrial revolution fueled by the advancement of digital technologies. The fusion of the physical and the virtual world into cyber-physical systems will have a disruptive impact on every business domain of manufacturing companies. Three years after the advent of “Industry 4.0” as a concept it has now developed into a true hype in the manufacturing industry. There is hardly any conference, think-tank or exhibition that escapes the gravitational pull caused by the promise of a new industrial revolution.
Understanding the danger of the hypeFirst of all: We strongly believe in the idea of the “Industry 4.0” concept! Digital technologies already do and will have a disruptive impact on the manufacturing industry, leading to the fourth industrial revolution as outlined by previous studies by the MIT and Capgemini Consulting.
However, there is one problem with the current hype: the idea of how “Industry 4.0” should be actually addressed becomes increasingly fuzzy. It emerged in our discussions with clients and partners that there is no common understanding on how the manufacturing business will change and how organizations need to transform. There is the danger that the hype around “Industry 4.0” will bypass corporate reality in many cases. The consequences for late-movers are most likely devastating: as in earlier industrial revolutions, organizations ignoring the need for adaptation and change will be forced out of the market quite rapidly.
Sharpening the picture beyond the hypeFacing the industrial revolution ahead, manufacturing companies need to start developing a comprehensive vision of how they will run their business in the future. They are required to look beyond the hype and identify which specific opportunities and challenges arise from “Industry 4.0”. Building on that, manufacturing companies need to define target picture and transformation roadmap that outlines the journey in respect of the new world ahead. In order to provide guidance along this process, Capgemini Consulting has developed a framework structuring the key “Industry 4.0” building blocks.
In our report we introduce our “Industry 4.0” framework addressing the major challenges for manufacturing companies:
- Enabling the revolution through digital technologies
- Identifying the core value drivers
- Transforming corporate structures to “Industry 4.0” readiness
- Building an “Industry 4.0” business model