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See discussions, stats, and author profiles for this publication at: Incorporating Industry 4.0 in Firm Strategy Conference Paper · April 2018 CITATIONS 0 READS 2,926 1 author: Some of the authors of this publication are also working on these related projects: Social Entrepreneurship View project Health Kiosk Private Limited View project Anirudh Agrawal Copenhagen Business School 27 PUBLICATIONS 81 CITATIONS SEE PROFILE All content following this page was uploaded by Anirudh Agrawal on 26 October 2018. The user has requested enhancement of the downloaded file.
161 Copyright © 2018, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited. Chapter 9 DOI: 10.4018/978-1-5225-3468-6.ch009 ABSTRACT Knowledge tells us that increase in productivity decreases margins in a competitive market and increases margins in a growing market. Not much is known about Industry 4.0 and its position within the corpo- rate strategy and its possible impact on corporate performance. This chapter discusses the position of Industry 4.0 within the corporate strategy and how it may impact corporate performance. The main points include that corporates have to reflect on their core resources, leadership, and knowledge portfolio to take advantage of the Industry 4.0 platform. The corporates engaging in cost and volume strategies and those engaging in fast new product development strategies may benefit greatly with Industry 4.0. The services of Industry 4.0 may be outsourced but with added risks. Finally, the increased productivity with Industry 4.0 under constraint market growth may lead to the potential risk of market failure and large-scale layoffs. INTRODUCTION The primary mission of any corporation is to maximize profitability on behalf of its shareholders (Friedman, 2009) and to provide the best value to its stakeholders (Freeman, 1984). The development of technologies such as the big data and data analysis, IoT, artificial intelligence (AI), flexible robot- ics, 3D printing, augmented reality, 3D holographic scanning smarter sensors, greater miniaturization, cloud computing, customer feedback and Customer management software (CMS), location detection technologies such as radio-frequency identification (RFID), natural language programming, and chang- Incorporating Industry 4.0 in Corporate Strategy Anirudh Agrawal Copenhagen Business School, Denmark Sebastian Schaefer TechQuartier, Germany Thomas Funke TechQuartier, Germany
162 Incorporating Industry 4.0 in Corporate Strategy ing global social-political environments are all driving human productivity toward a new industrial revolution (Herter & Ovtcharova, 2016; Reinhard, Jesper, & Stefan, 2016). These new technologies are consequently increasing the productivity of the corporations and changing the market equilibrium. The more these technologies evolve and are accepted by the industry, consequently, the industrial productivity shall proportionately increase. However, as the productivity of the corporation increases, it may or may not proportionately increase the performance and profitability.

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