The Benefits and Challenges of Digital Transformation in Industry 4.0

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Heron Jader Trierveiler
Heron Jader Trierveiler
σ
Denilson Sell
Denilson Sell
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Neri dos Santos
Neri dos Santos
α Universidade Federal de Santa Catarina Universidade Federal de Santa Catarina

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The Benefits and Challenges of Digital Transformation in Industry 4.0

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Abstract

The development of digital technologies has been promoting a real transformation in the lives of people and businesses in recent years. This movement has been called Digital Transformation. It intensified in the mid-2000s when many companies began a move to adapt their business infrastructure to the new digital age, benefited from the average price reduction of technology components, increased computing performance and global connectivity. In the manufacturing industry, a similar move, albeit a little late, has been carried out by the development of Industry 4.0 or, as some prefer to call it, smart factories. This article presents a vision of the digital transformation in industry, emphasizing the benefits and key challenges, from the analysis of 9 relevant publications published between 2005 and 2014. Its content will be especially important for those who are beginning their research on this topic. but whose practical implications can already be felt in our daily lives. Throughout the text, we discuss the breadth and importance of the Internet of Things and cloud computing for Industry 4.0, the applications and the importance of identification and tracking technologies, wired and wireless sensors, big data, communication protocols and distributed intelligence, the new role of IT strategy in manufacturing organizations, the impacts of new modes of production on organizational structures and the foundations of work, and the possibilities for generating, extracting and analyzing large volumes of data from connected machines in a collaborative community.

References

10 Cites in Article
  1. Luigi Atzori,Antonio Iera,Giacomo Morabito (2010). The Internet of Things: A survey.
  2. Anandhi Bharadwaj,Omar El Sawy,Paul Pavlou,N Venkatraman (2013). Digital Business Strategy: Toward a Next Generation of Insights.
  3. Malte Brettel,Niklas Friederichsen Unknown Title.
  4. Michael Keller (2014). Manufacturing information model for design for manufacturing.
  5. Kagermann,; Henning,Wolfgang Wahlster,Johannes Helbig (2013). Recommendations for implementing the strategic initiative INDUSTRIE 4.
  6. R Klopper,S Lubbe,H Rugbeer (2007). The matrix method of literature review.
  7. Heiner Lasi,Peter Fettke,Hans-Georg Kemper,Thomas Feld,Michael Hoffmann (2014). Industry 4.0.
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  10. Michael Porter,James Heppelmann (2014). How Smart, Connected Products Are Transforming Competition.

Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Heron Jader Trierveiler. 2019. \u201cThe Benefits and Challenges of Digital Transformation in Industry 4.0\u201d. Global Journal of Management and Business Research - A: Administration & Management GJMBR-A Volume 19 (GJMBR Volume 19 Issue A12): .

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Issue Cover
GJMBR Volume 19 Issue A12
Pg. 27- 39
Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-A Classification: JEL Code: L00
Version of record

v1.2

Issue date

November 7, 2019

Language
en
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The development of digital technologies has been promoting a real transformation in the lives of people and businesses in recent years. This movement has been called Digital Transformation. It intensified in the mid-2000s when many companies began a move to adapt their business infrastructure to the new digital age, benefited from the average price reduction of technology components, increased computing performance and global connectivity. In the manufacturing industry, a similar move, albeit a little late, has been carried out by the development of Industry 4.0 or, as some prefer to call it, smart factories. This article presents a vision of the digital transformation in industry, emphasizing the benefits and key challenges, from the analysis of 9 relevant publications published between 2005 and 2014. Its content will be especially important for those who are beginning their research on this topic. but whose practical implications can already be felt in our daily lives. Throughout the text, we discuss the breadth and importance of the Internet of Things and cloud computing for Industry 4.0, the applications and the importance of identification and tracking technologies, wired and wireless sensors, big data, communication protocols and distributed intelligence, the new role of IT strategy in manufacturing organizations, the impacts of new modes of production on organizational structures and the foundations of work, and the possibilities for generating, extracting and analyzing large volumes of data from connected machines in a collaborative community.

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The Benefits and Challenges of Digital Transformation in Industry 4.0

Heron Jader Trierveiler
Heron Jader Trierveiler Universidade Federal de Santa Catarina
Denilson Sell
Denilson Sell
Neri dos Santos
Neri dos Santos

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