The Impact of Industry 4.0 on the Steel Sector: Paving the Way for a Disruptive Digital and Ecological Transformation

Abstract

Since the creation of a common term to indicate a set of incremental and disruptive digital technologies, Industry 4.0 has challenged European manufacturers to find a way to concretely exploit these innovations in their own business strategy. During this journey, Industry 4.0 has recently highlighted some evidence about its efficacy in enabling strategic goals on the three dimensions (economical, environmental, social) of sustainable development, which is a key element for the European Union’s goal to make manufacturers become carbon neutral until 2030. Industry 4.0 and sustainability are together affecting manufacturers’ business models, forcing managers to take chances and face challenges within their organization and in their supply-chain. As an energy-intensive sector, steel industries will be intensively affected by sustainability paradigms. With 19 qualitative interviews in the organization and supply chain of an internationalized steel producer, Feralpi Group, we provide evidence that, beyond the use of main strategic technologies (Internet of Things and Big Data analysis), the implementation of a sustainability strategy is also possible through the creation of new partnerships beyond the own supply chain. The combination of Industry 4.0 technologies and sustainability strategies, especially concerning the environment through Circular Economy practices, pushes steel industries to revise their business models, paving the way for unexpected collaborations, where suppliers, customers, and even more diverse stakeholders such as competitors could bring benefits to the company sustainable economic growth and durability.