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A strategy guidance model to realize industrial digitalization in production companies

: Schumacher, A.; Sihn, W.


Management and Production Engineering Review 11 (2020), No.3, pp.14-25
ISSN: 2080-8208 (Print)
ISSN: 2082-1344 (Online)
Journal Article
Fraunhofer Austria ()

The realization of digitalization in production companies - currently also referred to as Industry 4.0 - aims for reduction of internal value creation costs as well as costs for intercompany collaboration and plays a key role in their current strategy development. However, related strategy research still lacks to provide operationalized digitalization methods and tools to practitioners with scientific rigor as well as real-world relevance. To challenge this status quo, we present a scientifically grounded 14-step procedure model including 11 practically tested tools, developed specifically for real-world application. The model leads practitioners from their first contact with industrial digitalization, through the maturity assessment of 143 digitalization items, until the implementation of a KPI-monitoring system and a continuous improvement process. We applied and re-worked the procedure model during three years of application. Validation and Feedback from practitioner s and scholars indicate, that the model drives strategy development towards objective and data-based decision making and increases stakeholder engagement in organizations considerably.