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To cite this article: Bongsug (Kevin) Chae & David Olson (2021): Technologies and applications
of Industry 4.0: insights from network analytics, International Journal of Production Research, DOI:
10.1080/00207543.2021.1931524
1. Introduction
strategies and adopted digital technologies for produc-
Industry 4.0 (I4.0) represents a significant digital trans- tion and planning, logistics, and customer services. This
formation in firms and industries. When initially coined type of digital transformation has received attention in
and officially adopted as a German strategic initiative the literature (Moeuf et al. 2018; Frank et al. 2019b;
(Xu, Xu, and Li 2018), the concept embraced a digital Zheng et al. 2020). Second, increasing economic activities
strategy for manufacturing. Today I4.0 is not limited to are taking place with digital technologies and infrastruc-
the manufacturing sector, but is also applied to a variety tures. Industry data show a trend of many companies cre-
of other industry sectors (Dalenogare et al. 2018; Culot ating new products and services in such areas as artificial
et al. 2020). In addition, other similar concepts have been intelligence and big data and there have been increasing
developed in different countries and regions of the world investment flows into such economic activities (Green-
to use such digital technologies as artificial intelligence man 2019; Rocha, Mamédio, and Quandt 2019). Over-
(AI), the Internet of Things (IoT), and big data analytics all, individual companies and various industry sectors
for competitive strategic advantage (Ardolino et al. 2018; are experiencing digital transformations, and emerging
Gawankar, Gunasekaran, and Kamble 2020). In response, digital technologies, such as AI, IoT, 3D Printing and
a growing number of studies have offered a review of Blockchain are the keys to enabling or implementing the
the concept and relevant technologies and their implica- I4.0 concept in many industries.
tions. Many of these studies have placed a focus on digital These I4.0 technologies do not exist in a vacuum
technologies as enablers for transforming businesses and (Culot et al. 2020). They are interacting not only with
industries (Lu 2017; Dalenogare et al. 2018; Ghobakhloo each other (e.g. integration of IoT and big data), but
2018; Xu, Xu, and Li 2018; Yin, Stecke, and Li 2018; also with other industry sectors such as manufacturing,
Frank, Dalenogare, and Ayala 2019a; Ivanov, Dolgui, and healthcare, consumer goods and finance. Also, differ-
Sokolov 2019; Hahn 2020; Oztemel and Gursev 2020; ent I4.0 technologies such as IoT, big data analytics and
Zheng et al. 2020). cloud technology are integrated for large-scale applica-
In the era of I4.0, there are two types of digital trans- tions (Zheng et al. 2020). However, there is a lack of
formation found in industry. First, companies in manu- understanding about such interactions in practice. The
facturing and other industry sectors have taken digital goal of this paper is to study the relationships between
implementations of key technologies of I4.0 and various was related closely to the increasing diffusion of emerg-
industry sectors to provide managers with a view of what ing technologies and solutions, such as big data and IoT,
is being done, thus offering opportunities to generate across different industries. Similarly, Moeuf et al. (2018)
applications to gain or maintain competitive advantage. remarked that recent advances in digital technologies and
The research focuses on how I4.0 technologies interact relevant methods are key for implementing the I4.0 con-
with each other and with different industries. Specifically, cept and even small-to-medium sized businesses (SMEs)
the research seeks to answer two questions: are adopting such technologies for cost savings and com-
petitive advantages. Zheng et al. (2020) identified sev-
• What is the landscape of I4.0 technologies? eral digital technologies enabling I4.0 in manufacturing
• How do I4.0 technologies interact with each other and contexts and explained how such technologies interact
with other industry sectors? with different manufacturing business processes includ-
ing new product development, supply chain planning and
The landscape of I4.0 technologies here refers to quality management. In this line, several digital tech-
the relationship between those technologies and various nologies have been discussed as I4.0 technologies in the
industries as reported in the database analyzed. Litera- literature (Table 1).
ture reviews and surveys have been popular for devel- Artificial intelligence (AI). Among those technologies
oping insights about the roles and impacts of I4.0 tech- in Table 1, AI is clearly a leading enabler of the I4.0
nologies (e.g. Ivanov et al. 2020; Zheng et al. 2020). concept. The current wave of AI started in the mid-
This research attempts to complement previous stud- 2000s as some major technical breakthroughs to include
ies by developing insights about I4.0 technologies and deep neural networks (e.g. Hinton, Osindero, and Teh
applications through adoption of the complex network 2006) emerged from AI research and practice (Lee 2018).
perspective (Choi, Dooley, and Rungtusanatham 2001; Many believe that AI likely leads to disruptive inno-
Surana et al. 2005). Two key concepts from this perspec- vation in business with various implications. New gen-
tive are interdependence and emergence. Elements exist erations of machine learning (ML) algorithms trained
in a complex network or system and they are intercon- with big data on scalable hardware infrastructure have
nected to each other. Such interaction between elements led to promising outcomes in industry settings, fueled
leads to the emergence of a network of the elements. This new entrepreneurial efforts in intelligent service offer-
perspective is suitable for understanding the landscape ings (Shams 2018; Garbuio and Lin 2019), and provided
and interactions of the key technologies in the contexts opportunities for smart manufacturing and logistics sys-
of I4.0. tems (Büchi, Cugno, and Castagnoli 2020; Chien et al.
This conceptual perspective is studied using research 2020).
methodologies such as network analytics (Strogatz Internet of things (IoT). IoT’s vision is connecting all
2001; Pathak et al. 2007; Fortunato 2010; Kim et al. digital objects (e.g. sensors). Traditional ways of collect-
2011) in which elements (or I4.0 technologies) and ing and exchanging data have limitations in terms of
their interaction are studied as nodes and edges in completeness, accuracy, and data latency. Sensor-enabled
a complex network or ecosystem. This research uses devices overcome these issues (Olsen and Tomlin 2020).
industry data from CrunchBase (Dalle, Besten, and It becomes possible to capture complete data about an
Menon 2017). The findings offer a glimpse into the environment in real time and such data can be exchanged
ecosystem of I4.0 technologies and their applications for smart services. For this reason, IoT is considered a key
in different industries. Specifically, this research helps component in implementing cyber-physical systems (Xu,
explain the popularity of different I4.0 technologies Xu, and Li 2018).
and their interconnectedness and introduces network Blockchain (BC). A key distinction of digital inno-
analytics as a promising computational method for vation from traditional innovations is that digital tech-
researching I4.0. nologies not only change the way businesses operate, but
also generate and capture big data (Kohli and Grover
2008). Traditionally, industries have adopted centralised
2. I4.0 enabling technologies
database technologies such as enterprise resource plan-
While there are diverse views of the I4.0 concept, many ning (ERP) systems as a solution for data storage and
studies indicate that emerging digital technologies are retrieval. These technologies tend to be expensive to
enabling or implementing the concepts and visions of implement and difficult to customise. Blockchain is a
I4.0. For example, Dalenogare et al. (2018) noted that I4.0 distributed ledger technology platform that can pro-
was pointing initially to the growing digitisation of busi- vide greater flexibility in data storage and retrieval. In
ness operations in manufacturing but, later, the concept addition, this emerging technology offers other benefits,
INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH 3
including smart contracts and lower transaction costs the virtualisation of their business operations and the
(Olsen and Tomlin 2020). servitisation of products (Moeuf et al. 2018).
Big data & analytics (BDA). AI, machine learning Other technologies. Automation is a key idea in I4.0.
(ML), and IoT are interdependent of big data. The power The technology categories mentioned earlier are acceler-
of AI/ML relies on the availability of data, both struc- ating automation in industries one way or another. In this
tured and unstructured. Also, data does not create value line, robotics is not new but advances in other technolo-
until it is processed and analyzed by AI and ML meth- gies such as AI and IoT have enabled the development of
ods and techniques for data-driven decisions. BDA has intelligent systems/advanced robotics not only in man-
been widely adopted in industries (Tan et al. 2017), which ufacturing (e.g. smart manufacturing) (Sriskandarajah
has led to many types of applications, including supply and Shetty 2018), but also in transportation, warehous-
chain analytics (Chae, Olson, and Sheu 2014) and quality ing, and energy management. The drive of automation
analytics (Gupta, Modgil, and Gunasekaran 2020). This also has fueled digital products and services using loca-
is one of the key technology groups enabling the I4.0 tion and tracking technologies such as GPS, sensors, and
concept. other devices. Different types of location-based services
3D Printing/advanced materials 3D Printing, addi- (LBS) and self-tracking tools / paradigms (e.g. Quanti-
tive manufacturing and other names have their origins fied Self) are flourishing in business (Huang et al. 2018).
in rapid prototyping (Gardan 2016). These new tech- Advances in tracking technologies and devices have also
nologies have provided many benefits, including massive increased the opportunity to link the virtual and physical
customisability, for manufacturing and product designs worlds (Lampropoulos, Keramopoulos, and Diamantaras
(Friesike et al. 2019). 3D Printing methods enable manu- 2020). The use of augmented reality (AR) and simi-
facturing of products having complex structures through lar technologies is also increasing in manufacturing and
rapid prototypes. Their applications have been found other industries such as healthcare for efficiency and
in a variety of industries, including consumer goods connectivity.
and mechanical engineering. Advanced materials are
considered important for advancing 3D Printing and
other additive manufacturing techniques (Zhang et al. 3. I4.0 technologies as a complex network
2017).
Cloud computing (CC). Cloud computing is a key for Networks are used widely in supply chain and production
delivering flexible and scalable services over the Inter- literature as conceptual perspectives and methodologi-
net. The applications of AI, ML, and BDA in indus- cal frameworks. The complex network perspective has
trial settings need scalability and service continuity and been used by many (Choi, Dooley, and Rungtusanatham
cloud computing is the key to meet such requirements. 2001; Surana et al. 2005; Perera, Bell, and Bliemer 2017).
Even for SMEs, cloud computing offers ways to realise The core concept in this perspective is that a network or
4 B. CHAE AND D. OLSON
system emerges from the interaction of diverse elements. Onnela, and Mucha 2009). There is a collection of meth-
These elements (or agents) could be technologies, pro- ods and algorithms for detecting topological communi-
duction machines or lines, businesses, or supply chain ties from complex networks (Ding 2011). This topology-
networks, among others, in business contexts (e.g. Tuka- based community detection is popular in studying bio-
muhabwa et al. 2015). Two key concepts are intercon- logical networks, collaboration networks, and physical
nectedness and emergence. The elements are not stan- infrastructure networks (Newman 2012; Bohlin et al.
dalone but interconnected in a process leading to the 2014). The literature offers approaches and algorithms
emergence of a complex network or system. This per- for detecting communities from complex networks (For-
spective is helpful not only in explaining the diversity of tunato 2010). Examples include hierarchical clustering,
elements and their interaction but also the network or optimisation methods, and others (Newman 2012). The
system emerging from the interaction. This conceptual Louvain algorithm (Blondel et al. 2008) is popular and
lens has been used along with different research method- focuses on maximising the measure of modularity, which
ologies (Pathak et al. 2007), including agent-based mod- increases as more connectivity is found in the identified
eling and nonlinear models (Surana et al. 2005). communities than in random networks.
Network analytics is well-suited for the complex net-
work perspective, as the methodology highlights both
elements and the network they comprise using a com- 4. Research methodology
bination of network visualisation and statistical analy-
4.1. Data
sis. As a branch of big data analytics or computational
research, network analytics has aided in the discovery The CrunchBase database (crunchbase.com) was the
of hidden patterns (e.g. interaction, emergence) within source of the data for this research. CrunchBase is a
big data. The key difference between network analyt- popular database for academic research involving eco-
ics and other analytics methods is the way the research nomic activities, especially in the startup world (Dalle,
phenomenon is understood through network structure Besten, and Menon 2017). The database is considered
involving nodes (elements) and edges (relationships ‘the Wikipedia of the high-tech industry’ (Shi, Lee, and
between those elements) (Pržulj and Malod-Dognin Whinston 2016). It offers several advantages over other
2016). commercial databases providing similar information,
Network analytics can be used with both structured such as including free access for academic research, daily
and unstructured data. A variety of data preprocess- information updates by investors and other users, and
ing methods for constructing networks from text data information reviews and cross-checks with the compa-
have been reported in the literature (Emrouznejad and nies (Dalle, Besten, and Menon 2017). The database is
Marra 2017; Silva, Ablanedo-Rosas, and Rossetto 2019). widely used in different academic fields, including sus-
A popular approach codes a document’s keywords as the tainability research (Tiba, van Rijnsoever, and Hekkert
nodes of a network that are connected through network 2021), business success (Gauger, Pfnür, and Strych 2021),
edges. Two types of network projects found in the liter- and urban innovation (Bonaventura et al. 2021).
ature include unipartite and bipartite networks (Strogatz CrunchBase API was used to extract the data of about
2001). For example, industry data, such as CrunchBase, 560,000 ventures. Several filtering criteria were applied to
can be projected in a bipartite network where company select the data relevant to the research questions. The first
profiles themselves and the words in them are treated step was to identify the companies created in the US since
as two distinct kinds of nodes in the network. Further, 1970. This filtering resulted in over 150,000 businesses.
this bipartite network can be projected in a unipartite The goal was to have as comprehensive a list of U.S.
network where all the words in the company profiles businesses as possible. The database offers details about
are treated as nodes, and edges are created for the co- each company, including headquarters, company type,
appearing words in the same company profiles. This latter industry category, and date founded. The companies are
approach has been the tradition in semantic networks organised using over 40 category groups and over 900 cat-
(Steyvers and Tenenbaum 2005; Griffiths, Steyvers, and egories. Category groups are ‘broad subjects that encom-
Tenenbaum 2007). pass multiple categories’, and categories are ‘more spe-
Semantic network visualisation and metrics, such as cific market segments’. For example, a company ‘Waymo’
node centrality, are helpful to discover hidden patterns developing self-driving technology belongs to five indus-
within data. Modularity or community is commonly try categories, including Automotive, Autonomous Vehi-
observed in complex networks (Girvan and Newman cle, Robotics, Sensor, and Transportation.
2002). The nodes that are densely connected to each The second filtering, based on the list of key tech-
other emerge as a cohesive community over time (Porter, nologies of I4.0 (in Section 2), was used to select five
INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH 5
category groups, including Artificial Intelligence, Inter- technologies. Companies in the research belonged to 4.59
net Services, Manufacturing, Data Analytics and Hard- industry categories on average. The minimum and maxi-
ware. This selection resulted in about 40 categories. For mum number of industry categories was 3 and 29, respec-
example, Internet Services as a category group consists tively. Initially, 680 unique industry categories were iden-
of over 30 different categories and, from that group tified from those 16,461 ventures.
six categories (Internet of Things, Cloud Computing, Not all associations of industry categories are mean-
Cloud Data Services, Cloud Infrastructure, Cloud Man- ingful for analysis. The association between two indus-
agement, and Cloud Storage) were selected. This resulted try categories, for example 3D Printing and Account-
in 16,461 businesses for further consideration. Figure 1 ing, is not necessarily statistically significant. Thus, the
shows both data collection and the types of analysis data was transformed into a matrix format (16,461
associated with network analytics used in this study. rows × 680 columns) having industry categories coded
Python programming language was the primary tool as binary (1 or 0). Pairwise correlation analysis was
for data processing and network analytics. Gephi (Bas- conducted to select only those associations that are
tian, Heymann, and Jacomy 2009) was also utilised statistically significant at a 99% confidence level, and
for network visualisation and community detection created a matrix (636 rows × 636 columns) of 636
analysis. industry categories. Based on the literature review
(Section 2), 26 industry categories,1 which are consid-
ered the key technologies enabling I4.0 concept, were
4.2. Data preparation selected. The final data included 26 technology categories
In CrunchBase, each business is represented as a series of (or industry categories) and 517 other industry categories
industry categories. For example, the company ‘Segway- (e.g. manufacturing, transportation, healthcare, finance,
Ninebot’ (segway.com/) belongs to three industry cat- marketing) associated with them at a 99% confidence
egories (Electric Vehicle, Manufacturing, Robotics). In level.
this example, the co-appearance of category names
(Electric Vehicle & Manufacturing, Electric Vehicle &
4.3. Network analytics
Robotics, Manufacturing & Robotics) represents the
connection between those three industry categories, Network analytics is useful to draw the insights about
which form a sub-network in a larger network of I4.0 I4.0 technologies and their association (or interaction)
6 B. CHAE AND D. OLSON
with other industries, as those 16,461 companies’ indus- categories) and 1141 relationships. The modularity score
try categories are projected into a network with a myriad (0.628) shows that the network is easily disintegrated
of nodes (or industry categories) and edges (or relation- into communities and there are 8 communities. This is
ships between the industry categories). Complexity is a a sparse network, as indicated by a low density. The aver-
hallmark of large networks and community detection age distance between nodes is 3.37 and the longest of all
analysis can be useful to identify collections of closely the shortest path lengths is 6.
associated industry categories. Among many approaches Figure 2 shows a network view of the key technologies
and algorithms (Fortunato 2010), the Louvain algorithm and their association with different industries. Among
(Blondel et al. 2008) focuses on maximising the mea- those 543 nodes are 26 key technologies. The node degree
sure of modularity, which increases as more connectivity centrality was used to resize the nodes and their labels so
is found in the identified communities than in random different node sizes represent different degrees in pop-
networks. The analysis discovered eight communities of ularity. Those 26 technologies emerge as hubs in the
digital technologies and associated industry categories. network. Each of these technology nodes relates to many
Those 16,461 companies are divided into two groups: other industry categories. For example, 3D Printing is
those founded before the year 2000 (1947 businesses) and connected to CAD, Product Design, Mechanical Engi-
since 2000 (14,514 businesses). The goal is to explore any neering, Plastic & Rubber Manufacturing, and Industrial
changes in the network of industry categories over time. Design. Through these connections, several subnetworks
Many of the key technologies have been deployed actively (or communities) are formed around those technologies.
since the early 2000s (Yoo, Henfridsson, and Lyytinen
2010). For example, the waves of data analytics and big
data emerged in 2000s and 2010s, respectively (Mullany 5.1. Network community detection and popularity
2016). The current wave of AI also started in 2000s along of I4.0 technologies
with technological breakthroughs such as deep learning Figure 3 reports six of the eight communities discovered
(Lee 2018). The rationale is that ‘young’ companies are by the Louvain algorithm. Due to space limit, two other
more likely to integrate the key I4.0 technologies, such communities, LBS and Quantified Self, are not included
as Blockchain and Augmented Reality, into their prod- in this figure. The largest community consists of digi-
ucts and services than those companies founded before tal technologies (AI, ML, AR) and industry categories
2000. The differences in the two networks (before 2000 associated with them.
vs. since 2000) are analyzed through community similar-
ity. Communities are similar where they share common • The largest community includes 99 industry cate-
nodes (Pan et al. 2010). Thus, similarity metrics such as gories, which represent 18 percent of the network and
the Jaccard index can be used to measure the degree of are associated with such digital technologies as AI,
change in a community (A) between the ‘older’ (founded ML, and AR. This shows that AI, ML, and AR are
before 2000 or t) and the ‘young’ (founded since 2000 or the two closest technologies in proximity, compared
t + 1). to other technologies.
• Cloud computing and related technologies (e.g. Cloud
|At ∩At+1 |
J(At , At+1 ) = Data Services, Cloud Security) represent the second
|At ∪At+1 | largest community including 17.7 percent of the whole
|At ∩At+1 | network. This also indicates that cloud technologies,
=
|At | + |At+1 | − |At ∩At+1 | cyber security and network issues are tightly coupled
in practice.
The similarity coefficient ranges between zero and • Robotics, 3D Printing, 3D Technology, Industrial
one: one means that the node membership of community Automation, Intelligence Systems, and Advanced
A between two groups of companies is the same, suggest- Materials are part of a large community, represent-
ing there is no change in the community. However, the ing 17 percent of the network. This community also
similarity coefficient below one suggests the community- includes industry categories such as manufacturing.
level changes. In contrast, the distance or dissimilarity
coefficient can be calculated by 1 − J(At , At+1 ).
Table 2. Summary statistics of the network.
• LBS is clustered with 76 other nodes, including Indoor the lowest degree of centrality are Advanced Materials (18
Positioning, Mobile Apps, iOS, and Mapping Ser- categories), Intelligence Systems (33 categories), and 3D
vices. This community represents 13 percent of the Technology (35 categories).
network.
• Another large community, 13 percent of the net-
5.2. Interconnectedness of I4.0 technologies
work, is represented by key technologies such as
Analytics, Data Mining, Data Visualisation, and Big The next analysis highlights the interconnectedness of
Data. I4.0 technologies. The analysis was conducted at two
• IoT is shown to be tightly connected with such indus- levels: (1) the interaction among the key enabling tech-
try sectors as smart building, smart cities, telecom, and nologies and, (2) the interaction of the key enabling
mobile devices. This community represents 12 percent technologies with other industry categories.
of the nodes in the whole network. First, Figure 5 reveals how the key technologies inter-
• There is also a community associated with Blockchain. act with each other. Quantified self is not shown in
This community includes several financial sectors the figure since it has no significant association with
such as Financial Services, Fin Tech, and Financial any other I4.0 technologies. Cloud-related technolo-
Exchanges, as well as related technologies (e.g. cryp- gies are grouped and tightly connected with hardware
tocurrency, Ethereum, Bitcoin). and security-related technologies. IoT is associated with
Blockchain, AR, and hardware and security-related tech-
The network representation of I4.0 technologies and nologies. Blockchain is with AI, ML, IoT and AR.
other industry categories as nodes enables analysis of Robotics is tightly coupled with Industrial Automa-
their popularity using degree centrality. Figure 4 shows tion. 3D Printing is associated with Advanced Mate-
that IoT has the greatest number of connections with 91 rials and 3D Technology that, in turn, has a connec-
industry categories, which represents 7.6 percent of all tion with AR. AI and ML are connected with Intelli-
the nodes in the network. What follows IoT includes ML gent Systems. Similar but separated from the AI clus-
(78 categories), AI (73 categories), Blockchain (66 cate- ter, Analytics and relevant technologies (Data Visu-
gories), AR (63 categories), and Cloud Computing (57 alisation, Data Mining, Big Data) develop their own
categories) among others. Among I4.0 technologies with subnetwork.
8 B. CHAE AND D. OLSON
The next analysis highlights the interaction of the network, while 3D Printing has connections with 43
key enabling technologies with other industry categories. industry categories, and this accounts for 3.6 percent.
Due to limited space, only two subnetworks (Blockchain • Not all 66 industry categories are equally connected
and 3D Printing) are presented and the complete find- to Blockchain. Instead, the proximity between nodes
ings are summarised in Table 3. Figure 6 shows the and the hub represents the strength of association
sub-network of Blockchain and 3D Printing. (correlation coefficients).
• Those industry categories highly connected to Block-
• Blockchain has connections with 66 different indus- chain are Ethereum (0.122 at the correlation coeffi-
try categories, representing 5.6 percent of the total cient), Bitcoin (0.120), FinTech (0.119), AI (0.077),
INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH 9
Film Distribution (0.066), Financial Services (0.066) • Robotics is highly associated with STEM education,
and Electronic Health Record (EHR) (0.058). sensors, virtual reality, transportation, toys, warehous-
• 3D Printing is tightly connected with CAD (0.204), ing, water, wind energy, and space travel.
Product Design (0.145), Mechanical Engineering • Quantified Self is popular with wellness, therapeutics,
(0.122), Industrial Engineering (0.116) and different mobile health, sensors, and sports.
manufacturing areas (e.g. machinery, paper).
5.3. The changes in the key technologies’
A post-hoc analysis identified the top 10 industries
association
highly associated with the key technologies. Table 3
shows the complete results and some key findings are as The final analysis examined the association of I4.0 tech-
follows: nologies with other industry categories in terms of the
founded-year-of-business: (1) before 2000 and (2) since
• 3D Technology has the highest correlation with man- 2000. The latter group represents ‘younger’ businesses
ufacturing and is strongly associated with printing, than the former group. The rationale is ‘young’ compa-
eyewear, green consumer goods, shoes and architec- nies are more likely to have integrated I4.0 technologies
ture. into their products and services than those ‘older’ com-
• Advanced Materials are highly associated with textiles, panies founded before 2000. The results are summarised
manufacturing, chemical, machinery manufacturing, in Figures 7 and 8 and Table 4. Figure 7 is based on the
clean energy, consumer goods, and national security. method using the Jaccard index explained in Section 4.3
• Data Mining is popular with direct marketing, prop- and presents the differences in the individual networks
erty development, lead generation, and price compar- of I4.0 technologies between the ‘younger’ and ‘older’
ison. companies.
• IoT is being used for smart building, wearables, light- For example, the difference of Blockchain (5th bar in
ing, and smart cities and security appear to be key Figure 7) applications between the younger and the older
issues in IoT-based services. 96.67 percent, indicates the applications of Blockchain
10 B. CHAE AND D. OLSON
Table 3. Continued.
Robotics
STEM Edu 0.059
Sensor 0.05
Virtual Reality 0.047
Transportation 0.047
Toys 0.045
Warehousing 0.029
Water 0.028
Wind Energy 0.027
Spam Filtering 0.027
Space Travel 0.02
6.1. The landscape of I4.0 technologies messaging, mapping services, photo sharing and social
network. The company ‘factual’, recently acquired by
This study has conceptualised the landscape of I4.0 tech- Foursquare, represents a growing number of companies
nologies as a complex network of nodes (or industry developing intelligent services and applications using
categories) and their relationships. The key insight from location data. For this company, LBS is integrated with
the network approach is that the key technologies are not industry categories such as Analytics, digital marketing,
independent entities in the evolution of I4.0 (e.g. Culot geospatial, Internet, mobile, and mobile advertising. The
et al. 2020; Zheng et al. 2020). Rather, they are integral findings indicate that LBS is transforming many other
parts of a complex network or ecosystem, and interact- industries, including travel and networking (Huang et al.
ing with the broader environment of technologies and 2018) and is also shaping supply chain activities, includ-
businesses. The community analysis reveals this connect- ing delivery, event management, and fleet management.
edness by further dividing the network into eight clus- As expected, cloud-related technologies (e.g. cloud
ters or communities of industry categories where those computing, cloud infrastructure, cloud storage) form a
I4.0 technologies emerge as the hubs in their respective large community. This network also includes categories,
communities. such as network hardware and cyber security, related to
AI and ML form the largest community in the I4.0 reliable, secure computer networks. Digital transforma-
landscape as other key technologies, such as Data Mining, tion relies on scalability and security of digital applica-
Data Visualisation, Big Data, Analytics, and Predictive tions and services. Thus, cloud computing and network
Analytics, are tightly coupled with AI and ML. This is security go hand-in-hand (Subramanian and Jeyaraj
in line with several industry reports indicating a trend of 2018). StackRox (crunchbase.com/organisation/stack-
increasing economic activities and investment in AI/ML rox) represents a growing business, integrating network
technologies (Johnson 2020). Also, the AI/ML commu- security technologies for cloud-based applications and
nity has expanded through tight connection with Aug- services.
mented (Virtual) Reality (Sahu, Young, and Rai 2020). One particular community of technology categories
AR aims to increase the connectivity between the dig- that appears to be closely related to the manufactur-
ital and physical worlds with benefits of heterogeneous ing sector includes Robotics, 3D Printing, Industrial
data and there is an increasing use of advanced ML algo- Automation, Intelligent Systems, and Advanced Mate-
rithms (e.g. deep learning) for the development of AR rials. Among these, robotics is the most popular being
applications and services (Lampropoulos, Keramopou- associated with 53 other industry categories, represent-
los, and Diamantaras 2020). For example, the company ing 4.5 percent of the whole network. This community,
‘Fyusion’ (crunchbase.com/organisation/fyusion) repre- with Robotics and 3D Printing as two major hubs, has
sents an increasing number of companies combining AI grown with industries related to goods design, sourcing
and AR technologies and offering services such as inter- (advanced) materials, production, warehousing, distri-
active 3D images. bution, and transportation. Automation appears to be a
The large presence of LBS and its subnetwork is major theme in this community that includes industry
noticeable since this technology has received less atten- categories such as autonomous vehicles, electric vehicles,
tion in academic literature. LBS utilises location data electric design automation, and intelligent systems.
(Huang et al. 2018) and appears to be growing rapidly The analysis also shows that Analytics and relevant
in popularity. As an individual category, LBS is the sec- 4.0 technologies (e.g. Big Data, Data Visualisation) are
ond most popular node, after IoT, in the network, and connected as a community, representing 13 percent of
is tightly coupled with other categories such as iOS, the network, distinct from AI/ML. Two observations
social media, travel, logistics, mobile apps, navigation, are made regarding this finding. First, while AI/ML is
INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH 13
enabling ‘predictive analytics’, the Analytics community science, video games, e-learning, product management),
is related to ‘descriptive’ analytics with data visualisa- but the Analytics community is enabling one particu-
tion and data integration. Second, AI/ML tends to be lar area, ‘marketing’ (e.g. email marketing, direct mar-
connected to unstructured data (e.g. natural language keting, cause marketing, contact marketing). Companies
processing, virtual reality) and diverse industries (e.g. life invested in building analytics both in past decades and
14 B. CHAE AND D. OLSON
Figure 7. Difference in the subnetworks of key technology categories (Before 2000 & Since 2000).
today are increasingly interested in integrating AI/ML 6.2. The interaction of I4.0 technologies
with their existing analytic capabilities (Davenport 2018;
Zheng et al. 2020). The findings can be categorised into two areas: (1) the
Another large community (12 percent of the network) interaction among I4.0 technologies and (2) the interac-
has IoT as the central node. Two broad themes appear tion of I4.0 technologies with other industries. Related to
from this community. First, IoT is connected to other the former, previous studies grouped the key technolo-
technology sectors such as wireless technology, wear- gies using different criteria such as technology layers. For
ables, mobile devices, and network hardware. Second, example, Culot et al. (2020) categorised the key enabling
IoT is enabling two areas greatly: smart homes/cities technologies into four groups by network connectivity
and energy management. While IoT is discussed with and their technological elements: physical/digital inter-
many other technologies and industries (Chae 2019), face technologies (e.g. IoT), network technologies (e.g.
these findings indicate that IoT-based products and ser- Blockchain), data-processing technologies (e.g. AI/ML),
vices being developed in industry are heavily focused on and physical/digital process technologies (e.g. 3D print-
developing smarter homes and cities, and efficient energy ing).
management is critical for such solutions to be successful The present study reveals several groups of I4.0 tech-
(Ejaz et al. 2017). nologies based on how businesses configure them in
Blockchain forms a community (6 percent) with rel- practice for new products and services. Many identi-
evant technologies (e.g. Cryptocurrency, Ethereum) and fied connections were expected. For example, Robotics
its community shows the applications of the technology and Industrial Automation go hand-in-hand (Leitão,
in many industries, including financial exchanges, fin- Colombo, and Karnouskos 2016). Several cloud-based
tech, film production and distribution, electronic health technologies are tightly coupled, and this cloud cluster is
records (EHR), and smart cities. The findings indicate in close contact with security-related technologies (Zhou
that, while the technology is still young, there are on- et al. 2017). There are also noticeable interactions, which
going experiments of Blockchain technology from sup- deserve further discussion.
ply chain management (Chang, Iakovou, and Shi 2020; The first is the convergence of IoT, Augmented Real-
Yoon et al. 2020) to finance (Tapscott and Tapscott 2017), ity (AR), and Blockchain. The association of IoT and
media and entertainment (Dutra, Tumasjan, and Welpe Blockchain shows the integration of physical/digital
2018). Finally, Quantified Self develops a small com- interface technologies and network technologies in
munity (a 2.5 percent) with relevant industries such as industry. IoT solutions have been cloud-based and there
wellness and mHealth. are challenges such as security, authentication, and data
INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH 15
privacy (Zhou et al. 2017; Fernández-Caramés and (e.g. real estate) into trackable digital assets (Dotson
Fraga-Lamas 2018). The findings show that companies 2018).
view Blockchain as a promising technology for IoT Likewise, AI and ML are integrated with AR, Block-
solutions and Blockchain-based IoT solutions are being chain, and Intelligent Systems. AI and ML are becoming
developed as alternatives to strengthen security for the the engines of intelligent or smart systems in many indus-
IoT ecosystem (Dai, Zheng, and Zhang 2019). The link tries, such as manufacturing, transportation, and finance.
between IoT and AR shows how two technologies are Blockchain and AI/ML are complementary as the for-
complementary to each other (Norouzi et al. 2019) and mer becomes the source of trustworthy big data and the
result in a new generation of applications and services latter offers capability for extracting value out of such
integrating IoT data and devices with AR user adoptions data (Swan 2018). More businesses use AI/ML for spa-
in several industries, such as manufacturing, healthcare tial design and empowering AR services through deep
and retail (Mitra 2018). Blockchain’s ledger technology is learning algorithms (CMO 2019; Sahu, Young, and Rai
also being deployed to turn virtual objects and locations 2020).
16
Table 4. The association of I4.0 enabling technologies over time.
17
18
B. CHAE AND D. OLSON
Table 4. Continued.
Location based services Machine learning Network hardware Network security Predictive analytics
Before 2000 Restaurants 0.206 NLP 0.204 VoIP 0.112 Privacy 0.152 Shipping Broker 0.124
eSports 0.146 Subscription Service 0.157 Wireless 0.086 Power Grid 0.123 Sales 0.1
Rental 0.146 Motion Capture 0.157 Semantic Web 0.093 Wearables 0.085
Tourism 0.146 Photography 0.136 Semantic Search 0.093 Sports 0.061
Soc Media Advertising 0.146 Video Games 0.108 Technical Support 0.071 SEM 0.061
Personalisation 0.146 Reputation 0.108 Security 0.067 Risk Mgt 0.06
RFID 0.142 Risk Mgt 0.082 Private Cloud 0.066
Search Engine 0.126 Renewable Energy 0.064
Mobile 0.104
Navigation 0.104
Since 2000 iOS 0.234 Predictive Analytics 0.159 Wired Telecom 0.15 Penetration Testing 0.147 Psychology 0.058
Soc Media 0.173 Personalisation 0.061 Network Security 0.123 VoIP 0.05 Text Analytics 0.049
Travel 0.131 Text Analytics 0.054 Technical Support 0.041 Shipping 0.04 Supply Chain Mgt 0.043
Mobile Apps 0.12 Retail Tech 0.052 Virtualisation 0.038 Wireless 0.029 Vocational Edu 0.038
Navigation 0.108 Virtual Assistant 0.05 Telecom 0.037 Risk Mgt 0.026 Sales 0.037
Messaging 0.106 Sales Automation 0.048 Semiconductor 0.032 Telecom 0.025 Soc Impact 0.032
Mapping Services 0.088 Virtual Reality 0.041 Wireless 0.029 Technical Support 0.025 TV 0.026
Photo Sharing 0.081 Semantic Search 0.039 Privacy 0.027 Subscription Service 0.025 Skill Assessment 0.026
Search Engine 0.076 SaaS 0.038 Private Cloud 0.024 Privacy 0.024 Product Mgt 0.026
Soc Network 0.073 Supply Chain Mgt 0.038 Smart Building 0.022 Point of Sale 0.022 Primary Edu 0.025
Robotics
Before 2000 Virtual Reality 0.136
Water 0.068
Water Purification 0.063
Waste Mgt 0.063
Shipping 0.063
Since 2000 Software 0.061
Transportation 0.052
Toys 0.05
Sensor 0.05
Virtual Reality 0.036
Warehousing 0.034
Wind Energy 0.03
Spam Filtering 0.03
Water 0.024
INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH 19
The findings of this study also show that I4.0 tech- implication is that it is important to identify what is
nologies are increasingly integrated for applications in being done to take advantage of emerging technologies.
both B2C and industrial environments. Among the This research clearly shows that the ecosystem of I4.0
technologies, IoT appears to be interacting with the technologies is expanding into diverse industry sectors.
largest number of industries. Two of the most popular Future research could identify novel data sources (e.g.
applications of IoT are smart buildings and smart cities. Twitter, Reddit) and apply network analytics. For exam-
This relationship received early attention in academic ple, Twitter data has been available since 2006 and is
research (Zanella et al. 2014). The impact of IoT seems far a popular platform for coversation related to technol-
reaching, including industries like consumer electronics, ogy, supply chain, and innovation. Applying the proposed
automotive, energy, green building, product design, last network approach to this type of digital trace data could
mile transportation, agriculture, and health and lifestyle. provide a clearer view of how I4.0 technologies have co-
LBS, while discussed less often in academic literature, evolved with diverse technologies and industry sectors.
is positioned as the key technology enabler for industries
such as travel, social media, restaurants, logistics, and
Disclosure statement
vehicle management (Huang et al. 2018). Previous LBS
application areas remained in B2C sectors (Hamari et al. No potential conflict of interest was reported by the author(s).
2019). Its popularity is growing for industrial environ-
ments (Falkowski et al. 2018) as the technology is being
Notes on contributors
integrated with other I4.0 technologies such as Auge-
mented Reality and IoT (Wi et al. 2018). Indoor location Bongsug (Kevin) Chae is the Jon Wefald
Distinguished Chair in Business and Data
services can support smart manufacturing processes and
Analytics at Kansas State University. He
facilities (Carrasco et al. 2018). researches data analytics, supply chain
analytics, and social media analytics. He
has made presentations in universities and
7. Conclusions global companies in several countries, pri-
The concept of Industry 4.0 (I4.0) is evolving from manu- marily on the topic of data analytics and
business intelligence, supply chain management, and compu-
facturing automation through digitalisation to strategis- tational social science. His research has been published in
ing digital technologies for smart applications (Xu, Xu, Decision Sciences, Decision Support Systems, IEEE Transactions
and Li 2018; Culot et al. 2020). The literature has placed a on Engineering Management, International Journal of Produc-
number of digital technologies, including artificial intel- tion Research, International Journal of Production Economics,
ligence (AI) and Internet of Things (IoT), at the center of Business Horizon, etc.
I4.0 (Moeuf et al. 2018; Frank et al. 2019b; Zheng et al. David L. Olson is the James & H.K. Stu-
2020). This research has taken a complex network view art Chancellors Distinguished Chair Pro-
of I4.0 technologies and, using network analytics, inves- fessor of Supply Chain Management and
Analytics at the University of Nebraska.
tigated the ecosystem and evolution of the network of
He has published research in over 150
those technologies. To the best of our knowledge, this is refereed journal articles, primarily on
the first study of I4.0 to take a network approach and to the topic of multiple objective decision-
use a large-scale industry database to study I4.0. making, information technology, supply
Managing firms in the I4.0 era requires keeping up chain risk management, and data mining. He has authored
with competitors, and ideally thinking of new ways to over 20 books. He has served as associate editor of Service
Business, Decision Support Systems, and Decision Sciences and
gain or maintain comptetitive advantage. This research coeditor in chief of International Journal of Services Sciences. He
shows that I4.0 technologies are coupled with other has made over 200 presentations at international and national
technologies and many industry sectors. The network conferences on research topics. He is a member of the Deci-
approach enables shedding of light not only on such con- sion Sciences Institute, the Institute for Operations Research
nections, but also on the strength of the connections. and Management Sciences, and the Multiple Criteria Decision
Making Society. He was named Best Enterprise Information
The result is a network view of the I.40 technologies
Systems Educator by IFIP in 2006. He is a fellow of the Decision
ecosystem with edges and nodes. In addition, the con- Sciences Institute.
nections and their strength evolve as digital technologies
are born and grow in popularity over time. Businesses
are taking advantage of this evolutionary process, and Note
new businesses tend to be strategising more digital tech- 1. Advanced Materials, Artificial Intelligence, Augmented
nologies and developing novel applications in a growing Reality, Machine Learning, Internet of Things, 3D Print-
number of new industry sectors. Thus, the management ing, 3D Technology, Blockchain, Industrial Automation,
20 B. CHAE AND D. OLSON
Cloud Infrastructure, Cloud Management, Cloud Com- Choi, T., K. Dooley, and M. Rungtusanatham. 2001. “Sup-
puting, Cloud Data Services, Cloud Storage, Cyber Secu- ply Networks and Complex Adaptive Systems: Control Ver-
rity, Analytics, Big Data, Data Mining, Data Visualiza- sus Emergence.” Journal of Operations Management 19:
tion, Intelligent Systems, Location Based Services, Predic- 351–366.
tive Analytics, Quantified Self, Network Security, Network CMO. 2019. “How AI-Powered Augmented Reality Transforms
Hardware, Robotics. Digital Experience.” https://cmo.adobe.com/articles/2019/8
/how-aipowered-augmented-reality-transforms-digital-expe
riences.html#gs.dajcmr.
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