The Stages of Digital Transformation in Manufacturing Industries according to Industry 4.0
The Stages of Digital Transformation in Manufacturing Industries according to Industry 4.0

Author(s): Ioan Petrișor, Diana Claudia Cozmiuc
Subject(s): Management and complex organizations
Published by: Trivent Publishing
Keywords: digital technology; digital transformation; digital disruption; Industry 4.0; digital maturity; operational processes; business models
Summary/Abstract: In the years 2010 – 2020, the Industrial Economy has been transforming into the Knowledge Economy at a much faster pace and greater scale than ever in history. Digital technology, generally understood as IDC’s third platform, impacts and changes businesses, industries, society in a process called digital transformation. All industries are impacted and disrupted in a digital vortex. In manufacturing industries, digital transformation comprises Industry 4.0, which may be understood as the fourth generation of manufacturing technology, digitalization, that follows automation, electrification and mechanization; an emerging market for a group of technologies; a vision for the future of manufacturing industries; a national competitiveness strategy for Germany and Europe. Industry 4.0 will bring new manufacturing technology: big data, autonomous robots, simulation, horizontal and vertical system integration, internet of things, cloud computing, additive manufacturing, augmented reality and cyber security - that will replace existing manufacturing technology in a boom. The first step to Industry 4.0 will generate big data to the cloud and the internet of things. It will pave the way to the digital twin of physical reality in virtual reality via simulation, horizontal and vertical system integration. Once the full digital twin of physical reality is created, the full step to Industry 4.0 will be achieved by cyber-physical systems, which will transform manufacturing capabilities via new processes, new business models, new forms of value and performance. Organizations will be digitally transformed into digital enterprises; value chains will be transformed into value networks; digital strategy and execution will be reinvented. This chapter is a case study about digital transformation at Siemens’ customers, the leading market share of manufacturers.

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