IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i16p8834-d610101.html
   My bibliography  Save this article

The Digital Chasm between an Idea and Its Implementation in Industry 4.0—The Case Study of a Polish Service Company

Author

Listed:
  • Katarzyna Jasińska

    (Department of Organization and Management Theory, Faculty of Management, Wroclaw University of Economics and Business, Komandorska 118/120, 53-345 Wrocław, Poland)

Abstract

Digitization in Industry 4.0 is a key trend in a modern company’s development. However, business practice shows that digitization can be associated not only with the prospect of development but with numerous limitations that a company may struggle with. The goal of this manuscript is to verify the existence and identify of the management gaps that lead to formation of digitization problems in companies under the conditions of Industry 4.0. Management gap is understood here as a set of discontinuities, identified within management functions, which result in specific problems in the implementation of digitization projects. In general, this aspect is omitted in the literature on the subject, which focuses on benefits of implementing Industry 4.0 technology. The chosen goal of the manuscript is part of the research trend related to the identification of general digitization problems and to a company’s development, taking into account the use of technological solutions, as well as to the scope of research on the problems of implementing ICT projects. The development of an enterprise is understood as the ability to improve an organization both in the face of internal challenges and the environmental with maintaining innovation potential. The research structure is based on the construction of a conceptual model of management gaps and its empirical verification. In the theoretical part, the chosen research method is analysis of literature from the last 20 years and in the practical part analysis of a business case supplemented with an in-depth interview conducted among the management of the analyzed company. In the theoretical part, the article defines basic concepts related to Industry 4.0 and digitization of companies. It presents the place and role of digitization and its impact on the blurring of boundaries of traditional management layers. Based on these considerations, a conceptual model is developed defining management gaps within which problems of digitization of enterprises are indicated. The practical part of the article presents an empirical verification of the existence of the formulated management gaps on the basis of a business case analysis. The case study describes a mass, geographically dispersed implementation of the application for 34,000 users, which is the result of the implementation of the digitization strategy. Conclusions were formulated in the last part of the manuscript. On the theoretical ground, the analysis confirms that the process of digitization in an enterprise under the conditions of Industry 4.0 is related to blurring the boundaries of operational, tactical and strategic management. The premises of the said blur are identifiable and appear in each of the above-mentioned layers. On the practical ground, the existence of reasons for blurring the boundaries of management is related to the need to adapt the organization to the new operating conditions related to Industry 4.0. The strategic activities should be targeted at determining the directions of company improvement, which should precede the efforts to implement advanced solutions in the field of Industry 4.0. This approach allows providing a sustainable company development with the possibility of creating short-term effects and maintaining a long-term growth perspective.

Suggested Citation

  • Katarzyna Jasińska, 2021. "The Digital Chasm between an Idea and Its Implementation in Industry 4.0—The Case Study of a Polish Service Company," Sustainability, MDPI, vol. 13(16), pages 1-31, August.
  • Handle: RePEc:gam:jsusta:v:13:y:2021:i:16:p:8834-:d:610101
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/16/8834/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/13/16/8834/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Satish Nambisan, 2017. "Digital Entrepreneurship: Toward a Digital Technology Perspective of Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 41(6), pages 1029-1055, November.
    2. Wil M. P. Aalst & Martin Bichler & Armin Heinzl, 2018. "Robotic Process Automation," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 60(4), pages 269-272, August.
    3. Dalenogare, Lucas Santos & Benitez, Guilherme Brittes & Ayala, Néstor Fabián & Frank, Alejandro Germán, 2018. "The expected contribution of Industry 4.0 technologies for industrial performance," International Journal of Production Economics, Elsevier, vol. 204(C), pages 383-394.
    4. repec:ulb:ulbeco:2013/249805 is not listed on IDEAS
    5. Heimerl, Veronika & Raza, Werner, 2018. "Digitalization and development cooperation: An assessment of the debate and its implications for policy," Briefing Papers 19, Austrian Foundation for Development Research (ÖFSE).
    6. Manuela Ingaldi & Robert Ulewicz, 2019. "Problems with the Implementation of Industry 4.0 in Enterprises from the SME Sector," Sustainability, MDPI, vol. 12(1), pages 1-18, December.
    7. Henning Kagermann, 2015. "Change Through Digitization—Value Creation in the Age of Industry 4.0," Springer Books, in: Horst Albach & Heribert Meffert & Andreas Pinkwart & Ralf Reichwald (ed.), Management of Permanent Change, edition 127, chapter 2, pages 23-45, Springer.
    8. Michael Gibbert & Winfried Ruigrok & Barbara Wicki, 2008. "What passes as a rigorous case study?," Strategic Management Journal, Wiley Blackwell, vol. 29(13), pages 1465-1474, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ismael Cristofer Baierle & Francisco Tardelli da Silva & Ricardo Gonçalves de Faria Correa & Jones Luís Schaefer & Matheus Becker Da Costa & Guilherme Brittes Benitez & Elpidio Oscar Benitez Nara, 2022. "Competitiveness of Food Industry in the Era of Digital Transformation towards Agriculture 4.0," Sustainability, MDPI, vol. 14(18), pages 1-22, September.
    2. Kumar, Mukesh & Tsolakis, Naoum & Agarwal, Anshul & Srai, Jagjit Singh, 2020. "Developing distributed manufacturing strategies from the perspective of a product-process matrix," International Journal of Production Economics, Elsevier, vol. 219(C), pages 1-17.
    3. Renato Passaro & Ivana Quinto & Pierluigi Rippa & Antonio Thomas, 2020. "Evolution of Collaborative Networks Supporting Startup Sustainability: Evidences from Digital Firms," Sustainability, MDPI, vol. 12(22), pages 1-20, November.
    4. Marzena Podgórska, 2022. "Challenges and Perspectives in Innovative Projects Focused on Sustainable Industry 4.0—A Case Study on Polish Project Teams," Sustainability, MDPI, vol. 14(9), pages 1-20, April.
    5. Cuesta-Valiño, Pedro & Gutiérrez-Rodríguez, Pablo & Núnez-Barriopedro, Estela & García-Henche, Blanca, 2023. "Strategic orientation towards digitization to improve supermarket loyalty in an omnichannel context," Journal of Business Research, Elsevier, vol. 156(C).
    6. Rong, Ke & Kang, Zhengyao & Williamson, Peter J., 2022. "Liability of ecosystem integration and internationalisation of digital firms," Journal of International Management, Elsevier, vol. 28(4).
    7. Elisa Martina Martinelli & Maria Cristina Farioli & Annalisa Tunisini, 2021. "New companies’ DNA: the heritage of the past industrial revolutions in digital transformation," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 25(4), pages 1079-1106, December.
    8. Cavallo, Angelo & Burgers, Henri & Ghezzi, Antonio & van de Vrande, Vareska, 2022. "The evolving nature of open innovation governance: A study of a digital platform development in collaboration with a big science centre," Technovation, Elsevier, vol. 116(C).
    9. Calabrese, Armando & Costa, Roberta & Tiburzi, Luigi & Brem, Alexander, 2023. "Merging two revolutions: A human-artificial intelligence method to study how sustainability and Industry 4.0 are intertwined," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    10. Culot, Giovanna & Orzes, Guido & Sartor, Marco & Nassimbeni, Guido, 2020. "The future of manufacturing: A Delphi-based scenario analysis on Industry 4.0," Technological Forecasting and Social Change, Elsevier, vol. 157(C).
    11. Kamble, Sachin & Rana, Nripendra P. & Gupta, Shivam & Belhadi, Amine & Sharma, Rohit & Kulkarni, Praveen, 2023. "An effectuation and causation perspective on the role of design thinking practices and digital capabilities in platform-based ventures," Technological Forecasting and Social Change, Elsevier, vol. 193(C).
    12. Cugno, Monica & Castagnoli, Rebecca & Büchi, Giacomo & Pini, Marco, 2022. "Industry 4.0 and production recovery in the covid era," Technovation, Elsevier, vol. 114(C).
    13. Gupta, Gaurav & Bose, Indranil, 2019. "Strategic learning for digital market pioneering: Examining the transformation of Wishberry's crowdfunding model," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 865-876.
    14. Naiara Uriarte-Gallastegi & Beñat Landeta-Manzano & German Arana-Landín & Iker Laskurain-Iturbe, 2022. "How Do Technologies Based on Cyber–Physical Systems Affect the Environmental Performance of Products? A Comparative Study of Manufacturers’ and Customers’ Perspectives," Sustainability, MDPI, vol. 14(20), pages 1-26, October.
    15. Mariani, Marcello M. & Nambisan, Satish, 2021. "Innovation Analytics and Digital Innovation Experimentation: The Rise of Research-driven Online Review Platforms," Technological Forecasting and Social Change, Elsevier, vol. 172(C).
    16. Zavodny Pospisil Jan & Zavodna Lucie Sara, 2022. "An Insight to the World of Female Entrepreneurship: Systematic Literature Review of the Phenomenon using the Mckinsey 7S Model," Foundations of Management, Sciendo, vol. 14(1), pages 51-66, January.
    17. Mariani, Marcello & Borghi, Matteo, 2019. "Industry 4.0: A bibliometric review of its managerial intellectual structure and potential evolution in the service industries," Technological Forecasting and Social Change, Elsevier, vol. 149(C).
    18. Tortorella, Guilherme Luz & Fogliatto, Flavio S. & Cauchick-Miguel, Paulo A. & Kurnia, Sherah & Jurburg, Daniel, 2021. "Integration of Industry 4.0 technologies into Total Productive Maintenance practices," International Journal of Production Economics, Elsevier, vol. 240(C).
    19. Lee, Changhun & Lim, Chiehyeon, 2021. "From technological development to social advance: A review of Industry 4.0 through machine learning," Technological Forecasting and Social Change, Elsevier, vol. 167(C).
    20. Sascha Fuerst & Odille Sanchez-Dominguez & Miguel Angel Rodriguez-Montes, 2023. "The Role of Digital Technology within the Business Model of Sustainable Entrepreneurship," Sustainability, MDPI, vol. 15(14), pages 1-17, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:16:p:8834-:d:610101. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.