Organization of Production on the Basis of the Internet of Things: Barriers, Advantages and Risk

Abstract

Purpose: The purpose of the study is to systematically review the advantages and risks of production organization on the basis of the Internet of things, as well as related barriers, and determine the feasibility of transition to this form of organization of production taking into account the interests of all stakeholders. Design/methodology/approach: The authors operate with the fundamental principles of the systemic approach (theoretical base of research) and take into account the positions of all interested parties. The game approach serves as the methodological basis of the research. The authors use the methodology of game theory to compare the advantages, risks and risks (probability of application) of the three available options for organizing production on the basis of the Internet of things. Findings: It was found that the advantages of production organization based on the Internet of things for the enterprise of Industry 4.0 are associated with productivity growth, achieving “economies of scale”, reducing the share of faults and risks—with disruptions to machinery (production stoppage) due to insufficient provision of cyber security. Employees benefit from an increase in the intellectual component of work (routine processes are performed by machines), while the risk is associated with unemployment—the need for retraining or professional development. Advantages for consumers are associated with increased environmental efficiency of production by increasing the availability and quality of products, and the risk is associated with the energy crisis due to multiple increases in energy consumption by businesses. A comparative analysis of three available options for organizing production on the basis of the Internet of things has been carried out: partial automation of production, full automation of individual production processes and full automation of production on the example of modern Russia. Originality/value: A systematic view of production on the basis of the Internet of things has shown that in the current organization it is characterized by low efficiency, and therefore, it is inexpedient in all available options. This problem can be solved by the author’s recommendations to improve the organization of production based on the Internet of things for all available scenarios. The proposed recommendations reduce risks and increase the likelihood of benefiting from them, thus increasing efficiency.