Skip to main content
SpringerLink
Log in

Digitalization of Business Functions under Industry 4.0

  • Chapter
  • First Online:
Digital Business Strategies in Blockchain Ecosystems

Part of the book series: Contributions to Management Science ((MANAGEMENT SC.))

Abstract

Despite the literature’s support that the main function to be affected by the Industry 4.0 movement will be the operations function, the rapid incorporation of new technologies under firms promises to affect each departments of the business dramatically. This chapter aims to highlight the role of each function within Industry 4.0. Moreover, the chapter will determine the actualized benefit of transitioning towards Industry 4.0, separate from the recognized benefits under the literature. In order to achieve this a content analysis was conducted on the 2017 annual activity reports of manufacturing firms listed on the Istanbul Stock Exchange (BIST). Out of the 178 listed manufacturing firms under BIST, only 20 were identified as transitioning towards Industry 4.0. Out of these 20 firms, 16 firms’ annual activity reports mentioned transitioning towards Industry 4.0 and addressed the outcome (benefits) of the applications. Items were subjected to a content analysis based on business functions (Theme 1), sub-categories of business functions (Theme 2) and the common actual benefit (Theme 3) by three different researchers. The unit of analysis, the identified benefits, were 232 items in total and spread across the operations (41%), strategic management (Cost and Competitive Advantage) (22%), technology and process development (15%), procurement and distribution (12%), human resources (8%) and marketing (2%) business functions.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 149.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 199.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 199.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Abbott, D. (2014). Applied predictive analytics: Principles and techniques for the professional data analyst. Hoboken, NJ: John Wiley & Sons.

    Google Scholar 

  • Allen, R. C. (2006). The British industrial revolution in global perspective: How commerce created the industrial revolution and modern economic growth (Unpublished). Oxford: Nuffield College.

    Google Scholar 

  • Atkeson, A., & Kehoe, P. J. (2001). The transition to a new economy after the second industrial revolution (No. w8676). National Bureau of Economic Research.

    Google Scholar 

  • Baheti, R., & Gill, H. (2011). Cyber-physical systems. The Impact of Control Technology, 12(1), 161–166.

    Google Scholar 

  • Blanchet, M., Rinn, T., Von Thaden, G., & De Thieulloy, G. (2014). Industry 4.0: The new industrial revolution-How Europe will succeed. Hg. v. Roland Berger Strategy Consultants GmbH. München. Abgerufen am 11.05. 2014, unter http://www.rolandberger.com/media/pdf/Roland_Berger_TAB_Industry_4_0_20140403.pdf.

  • Blinder, A. S. (2006). Offshoring: The next industrial revolution? Foreign Affairs, 113–128.

    Google Scholar 

  • Boyd, D., & Crawford, K. (2012). Critical questions for big data: Provocations for a cultural, technological, and scholarly phenomenon. Information, Communication & Society, 15(5), 662–679.

    Article  Google Scholar 

  • Brettel, M., Friederichsen, N., Keller, M., & Rosenberg, M. (2014). How virtualization, decentralization and network building change the manufacturing landscape: An Industry 4.0 perspective. International Journal of Mechanical, Industrial Science and Engineering, 8(1), 37–44.

    Google Scholar 

  • Brown, S. P. (2008). Business processes and business functions: A new way of looking at employment. Monthly Labor Review, 131, 1–24.

    Google Scholar 

  • Brynjolfsson, E., Hofmann, P., & Jordan, J. (2010). Cloud computing and electricity: Beyond the utility model. Communications of the ACM, 53(5), 32–34.

    Article  Google Scholar 

  • Byres, E., & Lowe, J. (2004, October). The myths and facts behind cyber security risks for industrial control systems. Proceedings of the VDE Kongress, 116, 213–218.

    Google Scholar 

  • Chen, M., Mao, S., & Liu, Y. (2014). Big data: A survey. Mobile Networks and Applications, 19(2), 171–209.

    Article  Google Scholar 

  • Deane, P. M. (1979). The first industrial revolution. Cambridge University Press.

    Google Scholar 

  • Drath, R., & Horch, A. (2014). Industrie 4.0: Hit or hype? [industry forum]. IEEE Industrial Electronics Magazine, 8(2), 56–58.

    Article  Google Scholar 

  • Engelman, R. (2015). The second industrial revolution, 1870–1914. Retrieved December 24, 2018, from http://ushistoryscene.com/article/second-industrial-revolution/.

  • EU Commission. (2017a). Key lessons from national Industry 4.0 policy initiatives in Europe digital transformation monitor. Retrieved November 10, 2018 from https://ec.europa.eu/growth/tools-databases/dem/monitor/sites/default/files/DTM_Policy%20initiative%20comparison%20v1.pdf.

  • EU Commission. (2017b). Implementation of an Industry 4.0 strategy—The German Plattform Industrie 4.0. Retrieved November 10, 2018 from https://ec.europa.eu/digital-single-market/en/blog/implementation-industry-40-strategy-german-plattform-industrie-40

  • Fiorentino, M., de Amicis, R., Monno, G., & Stork, A. (2002, September). Spacedesign: A mixed reality workspace for aesthetic industrial design. In Proceedings of the 1st International Symposium on Mixed and Augmented Reality (p. 86). IEEE Computer Society.

    Google Scholar 

  • Ganzarain, J., & Errasti, N. (2016). Three stage maturity model in SME’s toward Industry 4.0. Journal of Industrial Engineering and Management, 9(5), 1119–1128.

    Article  Google Scholar 

  • Gazetesi, S. (2018). 19 Firmaya Devlet Kuşu. Retrieved November 10, 2018, from http://www.sanayigazetesi.com.tr/tesvik/19-firmaya-devlet-kusu-h16786.html

  • Gibson, I., Rosen, D., & Stucker, B. (2015). Introduction and basic principles. In Additive manufacturing technologies (pp. 1–18). New York, NY: Springer.

    Chapter  Google Scholar 

  • Industrial Internet Consortium, Fact Sheet. (2013). Retrieved February 13, 2018, from http://www.iiconsortium.org/docs/IIC_FACT_SHEET

  • Jänicke, M., & Jacob, K. (2009). A third industrial revolution? Solutions to the crisis of resource-intensive growth.

    Google Scholar 

  • Jazdi, N. (2014, May). Cyber physical systems in the context of Industry 4.0. In 2014 IEEE International Conference on Automation, Quality and Testing, Robotics (pp. 1–4). IEEE.

    Google Scholar 

  • Jensen, M. C. (1993). The modern industrial revolution, exit, and the failure of internal control systems. The Journal of Finance, 48(3), 831–880.

    Article  Google Scholar 

  • Kagermann, H. (2015). Change through digitization—Value creation in the age of Industry 4.0. In Management of permanent change (pp. 23–45). Wiesbaden: Springer Gabler.

    Google Scholar 

  • Kagermann, H., Helbig, J., Hellinger, A., & Wahlster, W. (2013). Recommendations for implementing the strategic initiative INDUSTRIE 4.0: Securing the future of German manufacturing industry (Final report of the Industrie 4.0 working group. Forschungsunion).

    Google Scholar 

  • Kagermann, H., Lukas, W. D., & Wahlster, W. (2011). Industrie 4.0: Mit dem Internet der Dinge auf dem Weg zur 4. Industriellen revolution. VDI nachrichten, 13(11).

    Google Scholar 

  • Kaldor, N. (1957). A model of economic growth. The Economic Journal, 67(268), 591–624.

    Article  Google Scholar 

  • Küçükkalay, A. (1997). Endüstri devrimi ve ekonomik sonuçlarının analizi. Süleyman Demirel Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 2(2).

    Google Scholar 

  • Labor, C. (1990). Industrial revolution. Bloomington: Indiana.

    Google Scholar 

  • Lasi, H., Fettke, P., Kemper, H. G., Feld, T., & Hoffmann, M. (2014). Industry 4.0. Business & Information Systems Engineering, 6(4), 239–242.

    Article  Google Scholar 

  • Lee, E. A. (2008). Cyber physical systems: Design challenges. In 11th IEEE Symposium on Object Oriented Real-Time Distributed Computing (ISORC) (pp. 363–369). IEEE.

    Google Scholar 

  • Liu, S. X. (2016). Innovation design: Made in China 2025. Design Management Review, 27(1), 52–58.

    Google Scholar 

  • Manyika, J., Chui, M., Brown, B., Bughin, J., Dobbs, R., Roxburgh, C., et al. (2011). Big data: The next frontier for innovation, competition, and productivity. McKinsey Global Institute.

    Google Scholar 

  • McAfee, A., Brynjolfsson, E., Davenport, T. H., Patil, D. J., & Barton, D. (2012). Big data: The management revolution. Harvard Business Review, 90(10), 60–68.

    Google Scholar 

  • Mokyr, J. (1998). The second industrial revolution, 1870–1914. In V. Castronovo (Ed.), Storia dell’economia Mondiale (pp. 219–245). Rome: Laterza Publishing.

    Google Scholar 

  • Paelke, V. (2014, September). Augmented reality in the smart factory: Supporting workers in an industry 4.0 environment. In Emerging Technology and Factory Automation (ETFA), 2014 IEEE (pp. 1–4). IEEE.

    Google Scholar 

  • Paul, H., & Jonathan, Z. (1991). Flexible specialization versus post-Fordism: Theory, evidence and policy implications. Economy and Society, 20(1), 5–9.

    Article  Google Scholar 

  • Raffournier, B. (1995). The determinants of voluntary financial disclosure by Swiss listed companies. European Accounting Review, 4(2), 261–280.

    Article  Google Scholar 

  • Rajkumar, R., Lee, I., Sha, L., & Stankovic, J. (2010, June). Cyber-physical systems: The next computing revolution. In Design Automation Conference (DAC), 2010 47th ACM/IEEE (pp. 731–736). IEEE.

    Google Scholar 

  • Rifkin, J. (2013, July). Energizing the third industrial revolution. Interviewer: J. Gerdes.

    Google Scholar 

  • Rosenberg, N. (1998). The role of electricity in industrial development. The Energy Journal, 7–24.

    Google Scholar 

  • Rüßmann, M., Lorenz, M., Gerbert, P., Waldner, M., Justus, J., Engel, P., et al. (2015). Industry 4.0: The future of productivity and growth in manufacturing industries. Boston Consulting Group, 9.

    Google Scholar 

  • Schmidt, R., Möhring, M., Härting, R. C., Reichstein, C., Neumaier, P., & Jozinović, P. (2015, June). Industry 4.0-potentials for creating smart products: Empirical research results. In International Conference on Business Information Systems (pp. 16–27). Cham: Springer.

    Chapter  Google Scholar 

  • Schuh, G., Potente, T., Wesch-Potente, C., Weber, A. R., & Prote, J. P. (2014). Collaboration mechanisms to increase productivity in the context of Industrie 4.0. Procedia CIRP, 19, 51–56.

    Article  Google Scholar 

  • Shrouf, F., Ordieres, J., & Miragliotta, G. (2014, December). Smart factories in Industry 4.0: A review of the concept and of energy management approached in production based on the Internet of Things paradigm. In 2014 IEEE International Conference on Industrial Engineering and Engineering Management (IEEM) (pp. 697–701). IEEE.

    Google Scholar 

  • Siemens. (2016). Retrieved February 18, 2018, from http://cdn.endustri40.com/file/ab05aaa7695b45-c5a6477b6fc06f3645/End%C3%BCstri_4.0_Yolunda.pdf

  • Stanton, P., & Stanton, J. (2002). Corporate annual reports: Research perspectives used. Accounting, Auditing & Accountability Journal, 15(4), 478–500.

    Article  Google Scholar 

  • Stock, T., & Seliger, G. (2016). Opportunities of sustainable manufacturing in Industry 4.0. Procedia Cirp, 40, 536–541.

    Article  Google Scholar 

  • Strandhagen, J. W., Alfnes, E., Strandhagen, J. O., & Vallandingham, L. R. (2017). The fit of Industry 4.0 applications in manufacturing logistics: A multiple case study. Advances in Manufacturing, 5(4), 344–358.

    Article  Google Scholar 

  • Strauss, A., & Corbin, J. M. (1990). Basics of qualitative research: Grounded theory procedures and techniques. Thousand Oaks, CA: Sage.

    Google Scholar 

  • Tezge, O. (2010). Çağdaş Fabrika Sisteminin Doğuşu Ve Günümüze Kadar Geçirdiği Evreler. Ankara: Doktora Tezi, Siyasal Bilgiler Fakültesi, Ankara Üniversitesi.

    Google Scholar 

  • Tranfield, D., Denyer, D., & Smart, P. (2003). Towards a methodology for developing evidence-informed management knowledge by means of systematic review. British Journal of Management, 14(3), 207–222.

    Article  Google Scholar 

  • Turkish Commercial Law: item 397. (2011). 6102 sayılı Türk Ticaret Kanunu. Retrieved November 10, 2018, from http://www.ticaretkanunu.net/ttk-madde-397/

  • Tüsiad, B. C. (2016, 03). Türkiye’nin Küresel Rekabetçiliği İçin Bir Gereklilik Olarak Sanayi 4.0 – Gelişmekte Olan Ekonomi. Retrieved from December 28, 2018, http://tusiad.org/tr/tum/item/8671-turkiyenin-sanayi-40-donusumu

  • Varghese, A., & Tandur, D. (2014, November). Wireless requirements and challenges in Industry 4.0. In 2014 International Conference on Contemporary Computing and Informatics (IC3I) (pp. 634–638). IEEE.

    Google Scholar 

  • Voigtländer, N., & Voth, H. J. (2006). Why England? Demographic factors, structural change and physical capital accumulation during the industrial revolution. Journal of Economic Growth, 11(4), 319–361.

    Article  Google Scholar 

  • Wang, X., Li, L., Yuan, Y., Ye, P., & Wang, F. Y. (2016). ACP-based social computing and parallel intelligence: Societies 5.0 and beyond. CAAI Transactions on Intelligence Technology, 1(4), 377–393.

    Article  Google Scholar 

  • Wu, X., Zhu, X., Wu, G. Q., & Ding, W. (2014). Data mining with big data. IEEE Transactions on Knowledge and Data Engineering, 26(1), 97–107.

    Article  Google Scholar 

  • Zhong, R. Y., Xu, X., Klotz, E., & Newman, S. T. (2017). Intelligent manufacturing in the context of Industry 4.0: A review. Engineering, 3(5), 616–630.

    Article  Google Scholar 

  • Zhou, K., Liu, T., & Zhou, L. (2015, August). Industry 4.0: Towards future industrial opportunities and challenges. In 2015 12th International Conference on Fuzzy Systems and Knowledge Discovery (FSKD) (pp. 2147–2152). IEEE.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Business, Faculty of Business Administration, Dokuz Eylül University, Buca, İzmir, Turkey

    Melissa N. Cagle & Kevser Yılmaz

  2. Department of Tourism Management, Faculty of Business Administration, Dokuz Eylül University, Buca, İzmir, Turkey

    Hümeyra Doğru

Authors
  1. Melissa N. Cagle
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Kevser Yılmaz
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Hümeyra Doğru
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Melissa N. Cagle .

Editor information

Editors and Affiliations

  1. School of Business, Ibn Haldun University, Basaksehir, Istanbul, Turkey

    Umit Hacioglu

Rights and permissions

Reprints and permissions

Copyright information

© 2020 Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Cagle, M.N., Yılmaz, K., Doğru, H. (2020). Digitalization of Business Functions under Industry 4.0. In: Hacioglu, U. (eds) Digital Business Strategies in Blockchain Ecosystems. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-030-29739-8_6

Download citation

Publish with us

Policies and ethics

Search

Navigation