Industry 4.0: Opportunities and Challenges of the Industrial Internet

The implementation of the industrial internet represents a multi-year transformation process for the majority of companies, resulting in significant changes to their value chains.

Due to the extent of the expected company-wide changes and the investments required in the next three to five years, it is first necessary for top management to recognise the importance of the topic, place it on the agenda and drive it to a high priority level within companies.

In light of the importance of the industrial internet, the statement made by 18% of the companies surveyed about the “lack of prioritization/support by top management” being one of the most significant challenges, should alarm many management boards and CXOs.

At the same time, it is advisable for each company to review the existing competences for Industry 4.0 and define its digitization objectives, particularly with regard to the changes in customer demand.

Our maturity model for the industrial internet or Industry 4.0 can help companies to systematically record existing competences and various measures in the field of digitization, and to join them all into ongoing and planned activities in one integrated Industry 4.0 strategy.

The areas of processes/value chains, product/service portfolios and customer/market entry should be fully taken into account as part of this process.

The starting point is to have each company assess its own current maturity level and to take stock of its own competences and digital initiatives at the company itself.

The Industry 4.0 target maturity is then defined on this basis and possible loopholes can be identified.

This study is intended to create awareness of the necessary path to digitization within the industry.