Industry 4.0: Clustering of concepts and characteristics

Abstract

The Fourth Industrial Revolution, also known as Industry 4.0, stems from the rapid advancement of digital technologies such as the Internet of Things and Cyber-Physical Production Systems. It has the potential to weave positive changes to firms and impact organizational structure layers. Therefore, it provides an impetus for the collaboration of factories, suppliers, and customers. Nevertheless, due to the difference of Industry 4.0 vision among companies, there is a lack of unified perception and approach of its implementation roadmap. Therefore, many firms in both developed and developing countries that step in the way of digital transformation encounter not only organizational, technological, and operational challenges but are also compelled to cope with a large deal of confusion. Hence, this paper aims to identify the main concepts, characteristics, and technology enablers related to Industry 4.0 to provide stakeholders with a clear understanding of this paradigm. It then clusters and matches the derived concepts and characteristics associated with Industry 4.0. Further, the paper provides an analysis of how these clusters are supported by technology enablers of Industry 4.0, as well as managerial implications.