Increasing Resource Efficiency Through Digitalization – Chances and Challenges for Manufacturing Industries

Abstract

Companies are increasingly focusing on the sustainability of their products and processes. Especially the manufacturing companies attempt to increase material and energy efficiency, as those costs already account for a major part of their total costs. The digitization of the production process, as a first step in the implementation of Industry 4.0, can be a great opportunity for realizing resource efficiency potentials thereby reduce costs in companies. However, the manufacturing companies are faced with the challenge, on one hand, to implement a successful design of digital transformation in the development and production of goods and services. On the other hand, it is about maintaining the competitiveness of companies, which requires a decoupling of economic growth from the consumption of resources - and thus a more efficient use of resources. Although company examples show a positive connection between digitalization and resource efficiency, it is often unaware of companies or not investigated and quantified. Firstly, companies have a problem identifying whether they are ready to implement digitization in their processes. Secondly, they are facing challenges on how to find adequate measures in order to increase resource savings achieved through digitization. This article explores the interactions of these challenges and highlights ways to improve the resource efficiency offered by Industry 4.0 approaches. Furthermore, it proposes a framework for increasing resource efficiency through digitalization in a company.