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Industry 4.0 in
A review of Industry 4.0 in supply supply chain
chain management studies management
studies
Chetna Chauhan and Amol Singh
Indian Institute of Management Rohtak, Rohtak, India
1. Introduction
Industry 4.0 has recently become a prominent topic not only in the management domain but
across the global community. In light of the changing business trends, organizations are
required to embrace this upcoming change in their operations as well as in the wider supply
chain networks (Geerts and O’Leary, 2014; Ivanov et al., 2016; Lin et al., 2017). Industry 4.0
involves a combination of smart manufacturing, smart products and the Internet of Things
(IoT) and aims to provide real-time information on production, machines and flow of
components. This information is integrated to assist managers in making decisions,
monitoring performance and real-time tracking of materials (Lasi et al., 2014; Stock and
Seliger, 2016). Despite the advantages as outlined above, Industry 4.0 is in its nascent stage
regarding application in SCM.
According to Rivera and van der Meulen (2014), a 30-fold increase in the number of smart
devices by the year 2020 will drastically change the way supply chains operate. It is
important for the businesses to have visibility of products in every stage of the supply
chain, such as the identity, location and other tracking information (Ganesan et al., 2016).
As a result, Industry 4.0 implementation has emerged as an important potential lens to
consider how SCM can be altered to achieve business goals. Although the topic of Industry
4.0 emerged in 2011 in Germany when the development of a new strategy for the German
economic policy was proposed (Mosconi, 2015), SCM scholars have only recently started to
show an interest in addressing Industry 4.0.
Literature reviews in the related field previously had a narrower scope. For example,
Ben-Daya et al. (2019) examine the role of the IoT and its impact on supply chain
management (SCM). These authors recognize the importance of Industry 4.0 in SCM but Journal of Manufacturing
Technology Management
they focus mainly on the process-centric view of SCM that is being affected by IoT © Emerald Publishing Limited
1741-038X
applications. Büyüközkan and Göçer (2018) present an overview of the digital supply chains DOI 10.1108/JMTM-04-2018-0105
JMTM along with definitions, features and challenges but they emphasize how different aspects of
Industry 4.0 are evolving in SCM. Ghobakhloo (2018), in their review of literature, identify,
cluster and describe design principles and technology trends associated with Industry 4.0.
However, in the current study, we intend to take account of the interest of SCM researchers
in Industry 4.0 to examine how the principles of Industry 4.0 have been considered in
the study of SCM. We use the term “digitalization” in the context of Industry 4.0
implementation. This following research questions guide our literature review:
RQ1. How is the concept of Industry 4.0 defined and operationalized in the literature?
RQ2. What are the main topics, trends and theories in the debate on Industry 4.0 in SCM?
RQ3. What are the potential avenues for future research and practice in this area?
The paper is organized into six sections. Section 2 presents the methodology adopted for
carrying out a systematic literature review. Analysis of the literature is presented in Section
3. Section 4 presents the discussion and avenues for future research. The academic and
managerial implications are presented in Section 5. Finally, in Section 6 we discuss
limitations and future research directions.
2. Methodology
We reviewed and synthesized the literature on Industry 4.0 in SCM to answer our research
questions using a systematic literature review. Systematic reviews differ from narrative
reviews as the process involved is replicable, scientific and transparent. Systematic reviews
allow researchers to examine the strength of the published evidence while remaining as
unbiased as possible (Tranfield et al., 2003). This way, the systematic literature reviews
contribute to the development of existing knowledge bases (Denyer and Tranfield, 2009;
Tranfield et al., 2003).
Removal of
Figure 1. Keyword Analysis of
duplication Analysis of full
Systematic literature search in title, abstract
and irrelevant text
review process databases and keywords
articles
other academic databases that include Scopus, EBSCOhost, ProQuest and Emerald Industry 4.0 in
databases. These databases are widely used sources of literature for review studies. supply chain
Upon searching the databases, 3,890 results appeared from an initial search that
contained at least one instance of our search strings. Results from the books, book chapters,
management
surveys, working papers and reports were removed from the search results. We analyzed studies
the search results and deleted the duplicate ones. The literature search was done in October
2018, and articles appeared in these databases along with google scholar till October 2018
were considered for the study. A total of 895 articles were gathered in the first step. The time
duration for the studies was taken from all time to till date.
In the second step, articles were analyzed to decide whether the selected papers address
the topic under study. We carefully scrutinized the titles, keywords and abstracts of the 895
articles. The entire text was analyzed if the title, keywords and abstract did not provide a
clear focus of a study. The articles with a title and abstract that did not fit our inclusion
criteria were removed, with 568 articles remaining. The inclusion criteria that guided for
filtering the articles are as follows: articles published in peer-reviewed academic journals,
conference articles and articles in press available up to and including October 2018 were
considered for the review. The articles that have a clear focus on Industry 4.0 technologies
and one or more aspects of SCM were selected for the review. After full texts were checked,
finally 334 articles were selected for the systematic review. Papers were excluded if the
focus was not on Industry 4.0 from an SCM standpoint. Specifically, articles focusing on the
technical perspective of Industry 4.0 that include data mining, system architecture and
related fields were considered outside the scope of this review. Recognizing the
multidisciplinary nature of Industry 4.0 research, we included all journals and conferences
that addressed the topic of Industry 4.0 within the context of the supply chain.
In the third stage of the systematic literature review, we assess the quality of the articles.
Our review only included articles that underwent a peer-review. We included only the
peer-reviewed journals and conference articles as the review process acts as quality control
(McCartney et al., 1986). In the fourth step, an analysis of the literature and in the fifth step
emerging categories were identified from the literature during the synthesis. A full analysis
of the paper was carried out in line with the recommendations of Denyer and Tranfield
(2009). Figure 2 shows the criteria for analysis of papers. After that frequency analysis was
carried out to analyze the allocation of papers across journals and conferences, year of
publication and the research methods. In line with our research questions, a qualitative
analysis of the papers was carried out while keeping a focus on the following areas:
• definitions of Industry 4.0;
• main topics/themes; and
• major findings.
By analyzing the topics and themes addressed in the papers, we created codes for the
identification of key themes covered in the reviewed studies. The codes covered all the themes
evident in the literature related to Industry 4.0 in SCM. After coding individually, the codes
and categories were discussed and matched by the authors. The differences in coding were
reconciled by re-reading and re-coding the papers. In case of overlap in the themes, the paper
was reviewed under both the themes. The following categories and subcategories of themes
emerged after coding the studies:
• conceptualization of Industry 4.0 in SCM;
• principles for implementing Industry 4.0;
• managing digitized supply chains;
• digitalization outcomes;
JMTM
Industry 4.0 in SCM
Study
Year Journal Methodology Keywords Definition Topics/Themes
type
Figure 2. Type of
Unit of analysis
method
Research methodology
Type of Article
2%
4%
36%
58%
Figure 3.
Type of study
Journal Article Conference Paper Review Article in Press
of 334 papers. In total, 36 percent of the publications are conference articles that account for Industry 4.0 in
120 out of 334 papers. Out of 238 papers assessed in our study, 13 are review papers. supply chain
Remaining seven studies that account for 2 percent articles are articles in the press. management
3.1.2 Year wise Publications. In Figure 4, the allocation of the reviewed papers across the
years is depicted. Figure 4 illustrates the presence of a growing trend in the number of studies
articles since 2013, with a sudden steep increase in the number of articles from 2015
onwards. In the year 2013, there are seven articles that were published. This figure doubled
in 2014 and increased by more than three times in 2015. In 2016, the number of articles
showed a threefold surge and 71 articles were published; this number rose to 112 articles in
2017 and in the year 2018, till October, the number of articles published is 97. This
distribution shows an immense surge in the literature across the years. An area of research
receives acknowledgment in relation to the development of the number of publications if the
number of publication in the scientific community doubles in 10–20 years (Beske-Janssen
et al., 2015). The literature in this area has already crossed this mark, and this stresses upon
the emerging academic interest. This finding also confirms that the topic is widely
acknowledged in the field of SCM.
3.1.3 Journal-wise publications. A large number of journals have published papers on
Industry 4.0 and SCM. Figure 5 shows the distribution of articles across the top 10 journals.
120
100
80
60
40
20
0 Figure 4.
2011 2012 2013 2014 2015 2016 2017 2018
Number of documents
published across
Number of Documents Published years
25
20
15
10
0
International Technological Journal of International Journal of Journal of Production Enterprise Total Quality Decision Support Figure 5.
Journal of Forecasting and Manufacturing Journal of Cleaner Industrial Planning and Information Management Systems
Production Social Change Technology Production Production Engineering and Control Systems and Business Number of articles
Research Management Economics Management Excellence
published in top
No. of articles 10 journals
JMTM The top 6 journals contribute to about 18 percent of the publications with 59 of the 334 papers.
The next 10 journals produced 35 out of 334 papers that contribute to 10.4 percent of the
publications. The remaining journals with the least number of papers (less than three papers
each) contribute to about 41 percent of the papers. The remaining articles are conference
papers. Industry 4.0 has received extensive attention in the field of manufacturing and
production, as evident from the list of journals shown in Figure 5. The topic is also widely
covered under the journals which focus on sustainable operations management such as
Sustainability Switzerland and Journal of Cleaner Production.
3.1.4 Country-wise analysis. The analysis by country gives a wide range of
understandings. Figure 6 reports on the 12 most productive countries chosen by the
selected articles for the Industry 4.0 and SCM research. The majority of publications concern
Germany (54 articles) and the USA (50 articles), followed by Italy (33 articles), UK (26
articles) and China (25 articles). About 90 percent of the research comes from the 12
countries as shown in Figure 6. In the advent of the fourth industrial revolution, several
European countries have announced their Industry 4.0 strategy in the past few years,
leading to the development of technology roadmaps and research agendas (Santos, Mehrsai,
Barros, Araújo and Ares, 2017). It is clear from Figure 6 that the majority of studies on
Industry 4.0 in SCM come from the European countries.
3.1.5 Keyword analysis. Author consider keywords as a means to highlight the core content
and theme of an article. Research trends can be revealed by keywords frequency analysis.
Keywords frequency analysis can be used to uncover the research trends and transformations
( Ji et al., 2018). We built a co-occurrence network to analyze the authors’ keywords (Strozzi et al.,
2017). In Figure 7 co-occurrence networks nodes are the authors’ keywords taken from 334
papers. To perform the co-occurrence analysis, first, the authors’ keywords of the 334 papers
were selected. Keywords that appeared together for at least five times were considered for
creating a co-word network. In this study, the co-occurrence keyword network is analyzed using
VOSviewer software applying visualization of similarity clustering technique. VOSviewer
determines the locations of items in a map by minimizing a function depending on a similarity
measure (ASij) between items (van Eck and Waltman, 2011). ASij is defined as:
cij
ASij ¼ ;
ci cj
where cij is a measure of the co-occurrence of keywords i and j in the same document; ci is the
expected number of co-occurrences of i under the assumption that the co-occurrences of i and j
are statistically independent; and cj the expected number of co-occurrences of j under the
assumption that the co-occurrences of i and j are statistically independent.
Figure 7.
Keyword analysis
Figure 7 gives an analysis of the author’s keywords from the 238 papers.
Co-occurrence analysis is based on the assumption that in a paper, authors’ keywords
reflect an adequate description of the content (Strozzi et al., 2017). Research themes or
patterns are revealed by co-occurrences around the same words. The data obtained by the
analysis of keywords may be important to have an understanding regarding the themes
related to the field for future works. For example, in Table I it can be seen that in the first
cluster (Cluster 1) energy efficiency and energy utilization was a group of issues associated,
among others, with the manufacturing companies. The most frequent and the most
Nature No. of
of study Sample articles studies
Theory/ Geerts and O’Leary (2014), Arnold (2018), Rauch et al. (2017), Trentesaux et al. 277
Conceptual (2016), Jensen and Remmen (2017), Barreto et al. (2017), Bechtsis et al. (2018),
paper Strandhagen, Vallandingham, Fragapane, Strandhagen, Stangeland and
Sharma (2017), Trstenjak and Cosic (2017), Tjahjono et al. (2017), Bogataj et al.
(2017), Hwang et al. (2017), Zhong et al. (2017), Anderseck and Hille (2013),
Dawid et al. (2017), Shamim et al. (2017)
Literature review Costabile et al. (2017), Büyüközkan and Göçer (2018), Lu (2017), Xu et al. (2014), 13
Thibaud et al. (2018), Ben-Daya et al. (2019), Filho et al. (2017), Oesterreich and
Teuteberg (2016), Wu et al. (2016), Tachizawa et al. (2015), Bowles and Lu (2014),
Randhawa and Ahuja (2017), Ghobakhloo (2018)
Empirical/case Rymaszewska et al. (2017), Zhang et al. (2013), Wakenshaw et al. (2017), Zaheer 25
study and Trkman (2017), Ooi et al. (2018), Lim et al. (2018), Rymaszewska et al. (2017),
Strandhagen, Alfnes, Strandhagen and Vallandingham (2017), Qrunfleh and
Tarafdar (2015), Yang et al. (2013), Schumacher et al. (2016), Martinez et al.
(2010), Rachinger et al. (2019)
Delphi method Tonelli et al. (2016), Kiel et al. (2017), Kiel et al. (2017) 3
Analytical Diedrichs et al. (2016), Dunke et al. (2018), Qi and Bi (2014) 3
modeling
Optimization Lee (2017), Fiasche et al. (2016), Nagadi et al. (2018), Luthra et al. (2018), Veza 9
et al. (2015), Hauder et al. (2017), Hsu and Yang (2017), Ivanov et al. (2016)
Mix method Dossou and Nachidi (2017), Majeed and Rupasinghe (2017) 2
Table II. approach
Nature of study Experiment Chan et al. (2017) 1
No. of
Industry 4.0 in
Unit of analysis Sample papers papers supply chain
management
Indicated as supply Tonelli et al. (2016), Zhang et al. (2013), Lin et al. (2017), Geerts and O’Leary 151
chain (2014), Bao et al. (2013), Grieco et al. (2017), Man and Strandhagen (2017), studies
Büyüközkan and Göçer (2018), Qi and Bi (2014), Ben-Daya et al. (2019),
Kumar et al. (2016), Majeed and Rupasinghe (2017), Strange and Zucchella
(2017), Bogataj et al. (2017), Ganesan et al. (2016)
Focal firm/Plant level Arnold (2018), Costabile et al. (2017), Dunke et al. (2018), Hwang et al. (2017), 124
Longo et al. (2017), Rauch et al. (2017), Rymaszewska et al. (2017),
Kiel et al. (2017)
Indicated as industry Mrugalska and Wyrwicka (2017), Oesterreich and Teuteberg (2016), 30
Štofová et al. (2017), Trentesaux et al. (2016)
Logistics Barreto et al. (2017), Bechtsis et al. (2018), Diedrichs et al. (2016), Ivanov 25
et al. (2016), Lu et al. (2017), Strandhagen, Alfnes, Strandhagen, and
Vallandingham (2017), Strandhagen, Vallandingham, Fragapane,
Strandhagen, Stangeland and Sharma (2017), Anderseck and Hille (2013),
Hofmann and Rüsch (2017)
Multi-tier supply None 0
chain
Suppliers and/or Müller et al. (2018), Khemiri et al. (2017), Marques et al. (2017) 4 Table III.
manufacturers Unit of analysis
Hofmann and Rüsch “Products and services, flexibly connected via internet or other network applications”
(2017, p. 25)
Sanders et al. (2016, “Industry 4.0 is the fourth industrial revolution applying the principles of
p. 816) cyber-physical systems (CPS), internet and future-oriented technologies and smart
systems with enhanced human-machine interaction paradigms”
Pereira and Romero “This emerging Industry 4.0 concept is an umbrella term for a new industrial
(2017, p. 1207) paradigm that embraces a set of future industrial developments regarding
Cyber-Physical Systems (CPS), Internet of Things (IoT), Internet of Services (IoS),
Robotics, Big Data, Cloud Manufacturing and Augmented Reality”
Peruzzini et al. (2017, “Industry 4.0 paradigm is based on systems communication and cooperation with
p. 806) each other and with humans in real time to improve process performances in terms of
productivity, security, energy efficiency, and cost”
Trstenjak and Cosic “Industry 4.0 has been presented as an overall change by digitalization and
(2017, p. 1745) automatization of every part of the company, as well as the manufacturing process”
Schlechtendahl et al. “An Industry 4.0 paradigm is an environment in which all participants are
(2014, p. 145) interconnected and sharing information with each other”
Madsen and “Industry 4.0 refers to automation through the internet of Things is brought to an
Mikkelsen (2018, p. 91) even higher level and expected to be self-configured for resilience, self-adjusted for
variation and self-optimized for a disturbance”
Tjahjono et al. (2017, “The vision of industry 4.0 emphasizes the global network of machines in a smart
p. 1175) factory setting capable of autonomously exchanging information and controlling
each other”
Table IV. Longo et al. (2017, “Industry 4.0 goes with intelligent networks of Cyberphysical Systems and Human
Defining Industry 4.0 p. 144) Resources communicating over the internet of Things and the Internet of Services”
in supply Randhawa and Ahuja “Industry 4.0 heavily relies on data acquisition and sharing throughout the supply
chain studies (2017, p. 173) chain through interconnected business services, processes, and information systems”
conceptualize smart supply chain as an umbrella term for developing systems for better
communication, intelligent decision making and automation capabilities by supply chain
players. Stefansson and Lumsden (2009) suggest the three major components of smart
transportation management, namely, smart products, smart vehicles and smart
infrastructure. The authors argue that the components of smart transportation have
effects on supply chain performance. Ivanov et al. (2016) theorize a smart manufacturing
networking concept as a scenario where machines and products interact with each other in
the absence of human intervention.
Several studies underline the Industry 4.0 principles in SCM (Mrugalska and Wyrwicka,
2017; Müller et al., 2018; Nunes et al., 2017; Qi and Bi, 2014; Toh et al., 2009; Tu et al., 2018). The
authors argue how the key technologies will help the implementation of Industry 4.0 standards
in SCM. These technologies include CPS, IoT, Robotics, Big Data, Cloud Manufacturing,
Augmented Reality, RFIDs and information and communication technology, to name a few
(Ben-Daya et al., 2019). Ghobakhloo (2018) through their review of literature have enlisted the
design principles specific to Industry 4.0. These principles include interoperability,
virtualization, decentralization, real-time capability, service orientation and modularity.
A growing number of studies focus on managing the change from traditional supply
chains to digitized supply chains. These studies address issues like managing information
systems for data security and confidentiality laws (Kodym and Unucka, 2016); defining
responsibilities for effective and efficient handling of smart supply chains (Chen, 2015) and
implementation guidelines for managing new technologies (Li, 2018; Santos, Mehrsai,
Barros, Araújo and Ares, 2017).
Researchers foresee Industry 4.0 as means to bring economic and social change in the
world. For example, Li (2018) argue that Industry 4.0 implementation in industrial networks
will improve industrial capability through innovation-driven manufacturing. Scholars have Industry 4.0 in
also analyzed the effect of Industry 4.0 technologies on environmental sustainability supply chain
(Garcia-Muiña et al., 2018; Lopes de Sousa Jabbour et al., 2018; Nascimento et al., 2019). management
Industry 4.0 will lead to a reduction in costs through improved productivity and efficient
resource utilization, recycling and reuse. The extant literature underlines and emphasizes studies
quality over quantity, green development, optimization of the industry structure and
nurturing human talent as some of the outcomes of digitalization. Oesterreich and
Teuteberg (2016) and Reischauer (2018) assess the extent to which Industry 4.0 shapes
manufacturing industries as well as the economic and social life of the individuals. The
authors contend that the intended outcomes of Industry 4.0 are innovation systems that
comprise of academia, business, society and politics. However, factors such as unskilled
labor, obsolescence of older equipment and high consumer demand may have a negative
impact on environmental performance (Bonilla et al., 2018; Tsai and Lu, 2018).
Industry 4.0 systems enable quick and cost-efficient response by enhancing flexibility
and lead to improved overall operational performance (Dubey et al., 2017; Fatorachian and
Kazemi, 2018). Tonelli et al. (2016) underline the key internal resources and drivers of
operational performance in Industry 4.0. The authors identify improvement areas, and
define process initiatives, key performance indicators and interventions to improve business
alignment. Ooi et al. (2018) explore the relationship between the absorptive capacity of cloud
computing technology and firm performance. Several studies (refer Table V ) argue that
Industry 4.0 implementation will lead to better performance in terms of productivity, costs,
quality, sustainability, responsiveness and leanness.
Several authors underline the drivers and barriers of Industry 4.0 application in SCM
(Table V ). For example, according to Oesterreich and Teuteberg (2016) employees have to
handle with growing job requirements and might encounter a higher level of mental stress
due to the fear about job losses. This will emerge as a barrier in the form of employee
resistance. Bienhaus and Haddud (2018) enlist the factors related to the digitalization of
organizations and ways to overcome them. The authors segregate these factors as enabling
technologies and key barriers. Several other scholars have also identified the barriers and
enablers of Industry 4.0. On similar lines, Lin et al. (2018) enumerate the factors which lead
to positive or negative response toward Industry 4.0 initiatives. The authors contend that
the company size does not affect its response toward these technologies. From the
operational point of view, there can be several problems to be encountered like the lack of
standards for many technologies, higher requirements for computing equipment, increasing
the need for enhanced communication networks. Issues like regulatory compliance, legal
and contractual ambiguity might also pose a challenge for digitalization. On the other hand,
rising global competition, data availability, enabling technologies and customers’ eccentric
firms will drive the change toward digitalization (Neugebauer et al., 2016).
Ben-Daya et al. (2019) give a detailed account of the impact of Industry 4.0 technologies on
various functions of the supply chain. The authors identify the role of IoT on SCM through the
analysis of the literature based on the impact on supply chain processes. A major segment of
literature studies shed light on “make” and “deliver” processes of supply chain management.
Ben-Daya et al. (2019) present a detailed account of how the enabling technologies affect
different functions of supply chain processes. Apart from manufacturing, a large number of
articles provide a conceptual framework to create value for the servitization processes by using
the data from Industry 4.0-based technologies such as IoT, big data and cloud computing
(Opresnik and Taisch, 2015). Vandermerwe and Rada (1988) argued that many firms might
improve competitiveness by increasing the services offered in their portfolio by Servitization.
Scholars contend that the concept of servitization can be developed toward better value
propositions and increased profitability, with the help of IoT (Bressanelli et al., 2018;
JMTM Themes Key topics Key papers
Conceptualization of Smart manufacturing, smart logistics, Anderseck and Hille (2013), Diedrichs
Industry 4.0 smart products, smart supply chains et al. (2016), Ivanov et al. (2016),
components in SCM Strandhagen, Vallandingham,
Fragapane, Strandhagen, Stangeland
and Sharma (2017), Longo et al. (2017),
Lu et al. (2017)
Principles for Key technologies (Cyber-physical systems, Ghobakhloo (2018), Mrugalska and
implementing Internet of Things, Internet of Services, Wyrwicka (2017), Müller et al. (2018),
Industry 4.0 in SCM robotics, big data, cloud manufacturing Nunes et al. (2017), Qi and Bi (2014), Shah
and augmented reality, RFID, 3D et al. (2018), Toh et al. (2009), Tu et al.
manufacturing), design principles (2018)
(decentralization, interoperability,
flexibility, information security and
confidentiality, virtualization, real-time
capability, service orientation, modularity,
smart product, smart factory, vertical
integration, horizontal integration, Product
personalization)
digitalization competition, economic and social change Li (2018), Lin et al. (2017), Maslarić et al.
outcomes (2016), Oesterreich and Teuteberg (2016),
Reischauer (2018), Tseng et al. (2018)
Performance of Productivity, costs, quality, sustainability, Mrugalska and Wyrwicka (2017), Ooi
digitized supply responsiveness, lean manufacturing et al. (2018), Qrunfleh and Tarafdar
chains (2015), Sanders et al. (2016), Tonelli et al.
(2016), Trstenjak and Cosic (2017), Tseng
et al. (2018)
Managing digitized Data security and confidentiality laws, Veza et al. (2015), Santos et al. (2017),
supply chains defining responsibilities, implementation Kiel et al. (2017), Rymaszewska et al.
guidelines, flexibility (2017), Trstenjak and Cosic (2017)
Drivers and barriers Drivers: global competition, data, enabling Tonelli et al. (2016), Lu (2017), Thibaud
of Industry 4.0 in technologies, customers et al. (2018), Maslarić et al. (2016),
SCM Barriers: high cost, lack of skills, lack of Ben-Daya et al. (2019), Dallasega et al.
infrastructure, data confidentiality issues (2017), Kache and Seuring (2017)
Digitized supply Plan, source, make, deliver and reverse Ben-Daya et al. (2019), Filho et al. (2017),
chain practices logistics, smart product development, Strange and Zucchella (2017), Trstenjak
monitoring capabilities, servitization and Cosic (2017), Coreynen et al. (2017),
through Industry 4.0 Bressanelli et al. (2018), Rymaszewska
et al. (2017)
Table V. Collaborative Gap between mass customization and Santos et al. (2017), Wang et al. (2017)
Emerging themes engineering and mass personalization; price and level
in literature customization of service
Rymaszewska et al., 2017). IoS promote manufacturing servitization by a strategic shift from
selling products to selling an integrated product and service offering, i.e., a product-service
system (PSS) (Martinez et al., 2010).
The integration of PSS with CPS will lead to product-service bundles creating
cyber-physical product-service systems. These technologies can be used to predict product
performance, and manage the product life cycle and optimize product service needs
(Lee et al., 2014). Scholars contend that the concept of servitization can be developed to
achieve better value propositions and increased profitability, with the help of IoT
(Bressanelli et al., 2018; Rymaszewska et al., 2017). Coreynen et al. (2017) empirically
examine the relationship between digitalization and servitization. The authors contend that
digitalization is positively linked with industrial, commercial and value servitization.
Digitalization of assets and data exchange between industrial buyers and suppliers facilitate Industry 4.0 in
smart servitization. In smart servitization, the focus shifts toward considering the product supply chain
as a means of delivering continual value to the customer, rather than the end itself. The management
manufacturer remains connected to customers via the product (Porter and Heppelmann,
2015). Through the analysis of data obtained from products, providers of product-service studies
systems can gain an improved understanding of the use of their offering by their clients.
Thus, the use of technology assists the suppliers in providing new functionalities, capturing
and analyzing the insightful data and thus helping the suppliers to develop stronger bonds
with customers. Therefore, customer relationships tend to become more intensive due to
data-driven servitization (Kamp and Parry, 2017; Kiel et al., 2017; Penttinen and Palmer,
2007). It is evident from the above analysis that Industry 4.0 applications have been widely
studied in the literature, in the context of manufacturing and digitalization.
Collaboration networks describe the direction of horizontal integration, allowing
manufacturers to focus on their competencies by offering customized products in any
market. The ability to produce smaller lot sizes of personalized products requires highly
efficient and effective smart factories (EFFRA, 2012). These manufacturing systems represent
a future form of industrial networks having dynamic structures that evolve over time (Ivanov
et al., 2016). The smart factory involves the integration of physical and digital technologies
with the phases of the product (Kolberg et al., 2017). The integration between these areas
provides more customization to the production and to the product, reducing the product
development time. A vast stream of literature has addressed the topic of mass customization
in the context of recent Industry 4.0 developments. By connecting computers, machinery and
business processes, Industry 4.0 has enabled the production of high-quality and highly
customized products (Fatorachian and Kazemi, 2018; Strozzi et al., 2017; Zhong et al., 2017).
Industry 4.0 technologies are expected to fill the gap between mass customization and mass
personalization (Santos, Loures, Piechnicki and Canciglieri, 2017; Wang et al., 2017). Mass
personalization production strategy by firms can be enhanced with the introduction of a new
production system based on the implementation of Industry 4.0 technologies. Mass
personalization entails a strategy of producing goods and services to satisfy individual
customer’s needs such that the values outperform costs for both customers and manufacturer
(Zhou et al., 2013). Customers will cooperate with manufacturers to gain value through the
creation of personalized products adapted to the individual customer’s requirements and
needs. For example, direct customer input to design will enable companies to increasingly
produce personalized products with shorter times and reduced costs (Wang et al., 2017). Based
on the technological concepts of radio frequency identification, CPS, the IoT, IoS and big data,
Industry 4.0 will enable this novel form of personalization (Torn and Vaneker, 2019).
Corresponding author
Chetna Chauhan can be contacted at: chetnayashi@gmail.com
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