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Will the market adoption of innovative products and services in the fourth industrial revolution require an alternative reality? This question is investigated in a concept paper in which new product adoption patterns, alternative innovation regimes that include intelligent machines as innovation partners with humans, disruption of the producer, the...
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... consumer is now, so to speak, inside the value chain and partly responsible for it. Figure 5 shows this overlap of producer and consumer in production. This phenomenon occurs when, for example, the consumer starts using personal factories based on 3D printing or additive manufacturing. ...
Citations
... These transformative technologies have revolutionised the way organisations operate and create value, particularly within their value chains (Anzolin et al. 2022;Barata 2021;Götz 2019;Hartl, Sorger & Stockinger 2023;Koh, Orzes & Jia 2019;Onu & Mbohwa 2021). It also presents opportunities for organisations to gain a competitive advantage and drive innovation (Botha 2019). This literature review provides a comprehensive overview of the interplay between 4IR and value chains, exploring the implications, challenges and opportunities arising from their integration into organisational value chains. ...
... Fourth Industrial Revolution capabilities are pivotal in optimising value chains by enhancing operational efficiency, enabling data-driven decision-making, improving customer experience, fostering innovation, optimising supply chains and facilitating adaptability. Embracing these capabilities is crucial for organisations to sustain competitiveness and resilience, as highlighted by Alam and Dhamija (2022), Botha (2019), Caruso (2018), Liao et al. (2017), and Teisserenc and Sepasgozar (2021). This classification provides value chain leaders with a strategic platform for informed decisionmaking, efficient resource allocation, system capability development, collaboration and performance measurement, enabling the successful implementation and optimisation of 4IR technologies in value chains. ...
... The literature, as indicated by Castelo-Branco et al. (2022), Nyagadza et al. (2022), and Rhyu and Lee (2022), presents three classifications of 4IR capabilities: technological, organisational and strategic. In the context of the value chain, the essential 4IR technological capabilities include automation, robotics, AI, ML, big data analytics, IoT, augmented and virtual reality and blockchain technology (Bock et al. 2020;Botha 2019;Rhyu & Lee 2022;Simonetto et al. 2022). These capabilities empower organisations to automate processes, make data-driven decisions, enhance operational efficiency, improve customer experiences, optimise supply chain management and foster innovation (Götz & Jankowska 2020;Gupta et al. 2022;Hassoun et al. 2023;Kumar et al. 2023). ...
Background: The Fourth Industrial Revolution (4IR) has transformed value chains across various industries. However, there is still a lack of knowledge on how to effectively utilise 4IR technologies in organisational value chains. Research must explore how organisations can use 4IR technologies to optimise their value chain performance. Objectives: The primary aim of this study is to explore the holistic impact of 4IR technologies on the structural transformation of value chains. Method: Applying the principles of the resource-based view and the VRIO (Valuable, Rare, Inimitable and Organisation) framework, a systematic literature review was conducted to map the intersection of 4IR technologies and value chain performance. It utilised resource-based view theory and the VRIO framework to assess the role of 4IR in transforming value chains. This study focused on the VRIO integration of 4IR resources, such as advanced data analytics, Internet of Things (IoT), proprietary technologies and skilled workforces. Results: The research shows that 4IR resources are valuable and rare assets that require meticulous organisational integration, adaptable organisational structures, innovation-driven cultures and cross-functional collaboration. Conclusion: The strategic integration of 4IR resources within value chains can lead to innovation, efficiency and enduring competitive advantage. Contribution: This study provides a strategic roadmap for integrating emerging 4IR technologies into business value chains, cultivating a deeper understanding and maximising the benefits of these technologies to achieve sustained value creation and competitive advantage.
... It is reshaping business strategies, pedagogical approaches in academia, social interactions and even the very future of work (Schwab, 2017;Xu et al., 2018). The implications of inadequate readiness for this paradigm could be consequential on several fronts (Botha, 2019). For example, societal costs, where higher unemployment rates could occur with expanding levels of automation (Rainnie and Dean, 2020). ...
... Consequently, there has been a surge in investment and interest in establishing mechanisms capable of leveraging these technologies, thus fostering integrated concepts across disciplines and sectors to bolster innovation and its associated outcomes. This has been applicable in both advanced and developing regions such as South Africa (Botha, 2019;Olaitan et al., 2021). ...
... In South Africa, the challenge of stimulating economic activity and creating work opportunities are multi-faceted (Botha, 2019), exacerbated by high unemployment rates that exceeded 29 % (Statistics South Africa, 2021). These challenges are rooted in complex political dynamics, slow-moving legal and policy frameworks, and ethical dilemmas that often stifle the adoption of emerging technologies and long-term innovation development (Sutherland, 2020). ...
The emergence of the Fourth Industrial Revolution (4IR) paradigm, whilst posing challenges, also presents significant opportunities to bolster research capabilities and pioneer breakthrough innovations that can stimulate economic growth across various sectors. However, the realisation of these benefits relies heavily on the ability of countries and their constituents to innovate effectively in this new landscape. The purpose of this study is to explore how innovation mechanisms can be employed to foster stronger innovation capabilities within a university ecosystem, particularly in the African context. To do so a case study methodology is used, where cross-sectional data gathered over six months is assessed using the Diffusion of Innovation (DOI) as a theoretical lens. The findings reveal that such innovation mechanisms, like a makerspace within a university ecosystem, provide critical support for design phase innovation and collaboration. We illustrate this by employing a conceptual framework that explains the process by which innovations evolve from ideas into valuable outcomes.
... Garbage is an item or object thrown away because it is no longer used (Sidiq, 2020). This paradigm makes people think that this garbage is an item that must be removed immediately at all costs (Botha, 2019). Therefore, this paradigm needs to be changed so that people have an awareness to manage their respective waste so that environmental problems due to waste can be manipulated. ...
Researchers, together with the manager of the Asri Garbage Bank, formed a collaboration to socialize the habit of selecting waste. This kitchen waste will be made into compost and sold to the surrounding community. This activity aims to familiarize the people in Green Petunia Housing with managing waste to reduce the amount of garbage. The method used in this service is the PAR (Participatory Action Research) method, with stages through training, account creation practices, and mentoring. The training is carried out in three phases: preparation, implementation, and evaluation. The results obtained from this activity are that people are increasingly aware of the importance of selecting waste and getting used to processing waste to reduce the amount of plastic waste around them.
... A firm's efforts to reduce costs and defects or to make gains in efficiency (process innovation) inevitably and instantly result in a growth in productivity [19]. Process innovation is also said to concern production techniques, the organisation of work, and business model innovations [20]. Lee and Sang-Mok [17] made the following discoveries: ...
The relationship between Fourth Industrial Revolution technologies and innovation makes for an interesting case, as innovation seeks to unlock a level of competitiveness for its users, the extent of which is covered in this research paper. The premise of this study is that subsidiary firms lend themselves to the practice of process innovation. The focus of this study was on a South African automotive subsidiary firm, and a case study methodology was adopted. Data was collected in the form of questionnaire responses from specialists and interview feedback from managers in order to derive insights that would inform the state of firms’ technological capabilities, the dynamics behind them, and the leapfrogging measures that might be taken. This study showed that the current state of technological capabilities in the sample firm ranged from inadequate to satisfactory. Three priority areas were defined: robotics, big data and cloud computing, and advanced manufacturing systems. The workers’ mindsets were found to be a serious barrier to taking full advantage of Fourth Industrial Revolution technologies. This study covered measures that would be necessary to ensure a successful digital transformation, best realised through an incremental innovation strategy. The main metrics of firm competitiveness were outlined as quality, volume, and cost, all of which could be influenced by process innovations. Keywords Fourth Industrial Revolution; Process Innovation; Leapfrogging Pathway; Competitiveness; Automotive
... Las empresas que presentan una trayectoria innovadora tienen una mayor flexibilidad organizativa, lo que es una condición fundamental para adoptar y difundir tecnologías 4.0. En este sentido, una cultura empresarial proclive a la innovación junto con una estrategia de mejora continua de procesos y productos facilitan la adopción de las nuevas tecnologías (Agostini & Filippini, 2019;Horváth & Szabo, 2019;Rojas-Córdova, Heredia-Rojas, B., & Ramírez-Correa, 2020) y permiten generar nuevos modelos de negocios por la vía de la personalización del consumo, la comercialización de nuevos algoritmos que se complementan con la producción, y la mejor operación de una red de valor (Botha, 2019;Müller, Kiel, & Voigt, 2018). ...
... La antigüedad, por la vía de la escala de operación, afecta positivamente a la capacidad difusora de tecnologías 4.0. A largo plazo, deberían nacer nuevos modelos de negocios, basados en tecnologías 4.0 (Botha, 2019), lo que debería cambiar la relación entre antigüedad de la empresa y capacidad difusora aproximándose a nuestra hipótesis original. ...
The factors that can explain the diffusion of 4.0 technologies in the chilean economy are analyzed. We work with companies that can be classified as "specialized suppliers" and "science-based" relevant to the analyzed technological field. The data from the Tenth National Innovation Survey carried out by the National Statistics Institute (INE, 2018) are used. A confirmatory factor analysis of the second order is performed to identify the variables that best explain the diffusion. Lisrel 8.8 software was used, making the estimations with the robust diagonal weighted least squares method (DWLS) because we work with ordinal variables. The main results show the relevance of future innovation projects and the number of workers hired by each company to stimulate technological diffusion.
Keywords:
Technological diffusion processes; government policies; confirmatory factor analysis; industry 4.0; technological innovation
... Therefore, a business culture willing to innovate, together with a continuous improvement strategy of processes and products, facilitates the adoption of new technologies (Agostini & Filippini, 2019;Horváth & Szabo, 2019;Rojas-Córdova, Heredia-Rojas, B., & Ramírez-Correa, 2020). This promotes the generation of new business models through personalizing consumption, commercializing new algorithms that complement the production, and through more effectively operating a value network (Botha, 2019;Müller, Kiel, & Voigt, 2018). ...
... The years of operation of a company, when looking at its scale of operation, positively affects its capacity to disseminate technologies 4.0. In the long term, new business models should be born based on technologies 4.0 (Botha, 2019), changing the relationship between the companies' years of operation and diffusion power, which may confirm the hypothesis. ...
The factors that can explain the diffusion of 4.0 technologies in the chilean economy are analyzed. We work with companies that can be classified as "specialized suppliers" and "science-based" relevant to the analyzed technological field. The data from the Tenth National Innovation Survey carried out by the National Statistics Institute (INE, 2018) are used. A confirmatory factor analysis of the second order is performed to identify the variables that best explain the diffusion. Lisrel 8.8 software was used, making the estimations with the robust diagonal weighted least squares method (DWLS) because we work with ordinal variables. The main results show the relevance of future innovation projects and the number of workers hired by each company to stimulate technological diffusion.
Keywords:
Technological diffusion processes; government policies; confirmatory factor analysis; industry 4.0; technological innovation
... Hence, smartphone entry represents the real accelerator for access to the Internet permanently. Therefore, the crisis of 2008 realized adverse effects on outstanding bank loans accumulated, which urge to face some primary threads, and this has been recovered with the invention of new technology sources in the financial services [4]. In I.T., Application Programming Interface (API) is used for an interface that allows the one system to function while using other applications together and acts as remote control by providing all set of functions to facilitate the applications to interact with each other concerning exchange the services or data on either side. ...
... This finding has been formulated from the beginning of the concept (Kagermann et al. 2013) until some of the most recent publications on it (Culot et al. 2020). The found heterogeneity moreover supports that there are no fixed rules for I4.0 implementation (Botha 2019) and that the revolutions in production require a reflection in the BM (Porter and Heppelmann 2014). Despite this flux, the study at hand supports Müller and Däschle (2018) that underline the value of technical innovations that are associated to I4.0 innovations for strengthening existing BMs or developing new ones. ...
Industry 4.0 (I4.0) transforms current production paradigms and raises an inherent need to integrate this with a firm’s rational of creating, delivering, and capturing value, i.e., the business model. The resource intensive I4.0 technology implementation challenges any organization and especially small- and medium-sized enterprises (SMEs). To provide theoretical and practical support for this, our chapter first conducts a systematic literature review on business models and I4.0 technologies with a qualitative investigation and a quantitative contingency analysis. The chapter then analyses secondary data from 30 SMEs of an innovative Italian manufacturing cluster for which business model elements are modified while implementing specific I4.0 technologies. To guide future practice and research, 13 propositions and 4 research directions are developed on how implementing individual I4.0 technologies can modify specific business model elements for SMEs 4.0.
... For example, virtual reality allows us to transform the environment in which product testing is performed (Grabar et al. 2019;Pryima et al. 2018). As stated by Botha (2019) and Gera & Singh (2019) the Internet of Things connects machines and people to improve work efficiency, and the use of Big Data enables machines to predict possible future errors and perform automated maintenance steps as prevention. If everything in the manufacturing system and its surroundings is connected to sensors, software, Internet of Things technologies, knowledge systems and customers, the quality of the products being produced can thus be improved (Zhou, Han & Gou, 2019;Barata, Cunha & Coyle, 2019). ...
Intelligent devices, machines and technologies, virtual reality, 3D printing and cooperative robotic devices are being implemented into the industry currently. These technologies are also transferred to the manufacturing sector, where industrial facilities connect, collaborate and make decisions by means of artificial intelligence. The aim of the paper is to find out the impact level of Industry 4.0 implementation within Slovak enterprises. The research was provided based on the data set on the Slovak statistical office and the questionnaire survey being carried out during the period of December 2018 till February 2019 by random selection; 350 companies were contacted with a return of 220 responses. From the reactions of the companies, we evaluated the employers' opinion and their readiness on the emergence of smart industry in Slovakia. The result of the study will be an assessment of two key issues concerning the current jobs structure requirements in terms of employees' education structure and, in particular, employers' reactions on the Industry 4.0 implementation reflecting the future job structure in Slovak industry.Based on the results it is proposed the expected positive changes should be transformed into higher productivity, greater flexibility, greater competitiveness, higher profitability, security and ecology. As research limitation there can be mentioned issues such as: some questioners from the survey had to be void, some answers were not relevant.
... This finding has been formulated from the beginning of the concept ) until some of the most recent publications on it (Culot et al. 2020). The found heterogeneity moreover supports that there are no fixed rules for I4.0 implementation (Botha 2019) and that the revolutions in production require a reflection in the BM . Despite this flux, the study at hand supports Müller and Däschle (2018) that underline the value of technical innovations that are associated to I4.0 innovations for strengthening existing BMs or developing new ones. ...
This open access book addresses the practical challenges that Industry 4.0 presents for SMEs. While large companies are already responding to the changes resulting from the fourth industrial revolution , small businesses are in danger of falling behind due to the lack of examples, best practices and established methods and tools.
Following on from the publication of the previous book ‘Industry 4.0 for SMEs: Challenges, Opportunities and Requirements’, the authors offer in this new book innovative results from research on smart manufacturing, smart logistics and managerial models for SMEs. Based on a large scale EU-funded research project involving seven academic institutions from three continents and a network of over fifty small and medium sized enterprises, the book reveals the methods and tools required to support the successful implementation of Industry 4.0 along with practical examples.
Dominik T. Matt holds the Chair for Production Systems and Technologies and heads the research department "Industrial Engineering and Automation (IEA)" at the Faculty of Science and Technology at the Free University of Bozen-Bolzano (Italy). Further he is the Director of Fraunhofer Italia Research in Bolzano. His research focuses on Industry 4.0 and smart factories, the adoption of artificial intelligence in manufacturing as well as the digital transformation of industrial companies. Vladimír Modrák is Full Professor of Manufacturing Technology at Technical University of Kosice, Slovakia. He obtained his PhD at the same University in 1989. His research interests include cellular manufacturing design, mass customized manufacturing and planning/scheduling optimization. He is a Fellow of the European Academy for Industrial Management (AIM) since 2015.
Helmut Zsifkovits is Professor of Industrial Logistics at Montanuniversitaet Leoben, Austria. He graduated from the University of Graz, Austria. His research interests include logistics systems engineering, supply chain strategy and operations management. He has teaching assignments at universities in Austria, Latvia, Colombia, and Germany, and professional experience in automotive industry, logistics consultancy and IT. In 2020, he was elected the president of the European Certification Board for Logistics (ECBL).
