“Industry 4.0,” a term originally coined in Germany, became a buzzword in 2011 thanks to that country’s government. It refers to the Fourth Industrial Revolution triggered by the dissemination of digital technologies. Industry 4.0 represents a turning point for European manufacturing production, which explains the support from the EU within the framework of a broader strategy to promote a digital single market by funding research and infrastructure development.
It is truly a revolution destined to affect millions of companies through specific initiatives.
To encourage the adoption of an Industry 4.0 approach, in late 2016 Italy’s Ministry of the Economy launched the “National Industry 4.0 Plan,” a roadmap financed by the government to provide incentives to companies to invest in and upgrade existing technologies. According to data from the Italian Ministry of Economic Development, at year’s end 2017, 8.4% of Italian companies had implemented Industry 4.0 technologies, and an additional 4.7% had planned to develop these tools in the next three years. In 2017, thanks to the government’s plan, investments scaled up by 11% over the previous year, a figure that rose to 13% in the machinery and equipment sectors.
Companies get the biggest value out of Industry 4.0 when it serves to reinforce and renew their business model. Indeed, to achieve long-lasting improvement by riding the new wave of innovation, companies not only need to identify strategic objectives, but also pinpoint the most appropriate manufacturing strategy to pursue.
The strategic trends emerging in the field of operations management, which seem to be closely linked to the adoption of Industry 4.0 technologies, can be categorized as follows: production assistance, outsourcing and supply chain management, digitalization of operations, and adopting common lean methodologies.