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A strategy guidance model to realize industrial digitalization in production companies

Schumacher Andreas, Sihn Wilfried

Management and Production Engineering Review

2020

Vol. 11, No. 3

14--25

The realization of digitalization in production companies – currently also referred to as Industry 4.0 – aims for reduction of internal value creation costs as well as costs for intercompany collaboration and plays a key role in their current strategy development. However, related strategy research still lacks to provide operationalized digitalization methods and tools to practitioners with scientific rigor as well as real-world relevance. To challenge this status quo, we present a scientifically grounded 14-step procedure model including 11 practically tested tools, developed specifically for real-world application. The model leads practitioners from their first contact with industrial digitalization, through the maturity assessment of 143 digitalization items, until the implementation of a KPI-monitoring system and a continuous improvement process. We applied and re-worked the procedure model during three years of application. Validation and Feedback from practitioners and scholars indicate, that the model drives strategy development towards objective and data-based decision making and increases stakeholder engagement in organizations considerably.