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Combining Experiential Knowledge and Artificial Intelligence. The Digital Transformation of a Traditional Machine-Building Company

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  • Krzywdzinski, Martin
  • Butollo, Florian

Abstract

The development of Industry 4.0 technologies creates leeway for the digital transformation of manufacturing companies, whose business models increasingly rely on software and data-based services. While several studies emphasise that manufacturing has no choice but to follow this transformation, there is little knowledge about how companies are actually managing it. This article uses the case study of a leading mechanical engineering company to analyse how the company organised the development of new digital technologies and how it changed its organisational structures and practices. It is based on 22 interviews and an analysis of company documents. The analysis draws on ambidexterity theory, which is extended toward a dynamic process analysis. It shows that digital transformation presupposes the development of structures and practices supporting cross-functional cooperation and the creation of new skill formation approaches. It develops a model of organisational change related to the digital transformation of manufacturing companies which includes the proof-of-concept phase, the partial exploitation phase, and the organisational transformation phase.

Suggested Citation

  • Krzywdzinski, Martin & Butollo, Florian, 2022. "Combining Experiential Knowledge and Artificial Intelligence. The Digital Transformation of a Traditional Machine-Building Company," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 33(2), pages 161-184.
    • Handle: RePEc:zbw:espost:266361
    DOI: 10.5771/0935-9915-2022-2-161
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    References listed on IDEAS

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    More about this item

    Keywords

    industry 4.0; manufacturing; innovation; ambidexterity; skill formation;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L64 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Machinery; Business Equipment; Armaments
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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