Resolving the productivity paradox of digitalised production

Although Industry 4.0 and other initiatives predict widespread adoption of digitalised technology on the factory floor, few companies use new digitalised production technology holistically in their ecosystems; in practical implementation, companies often decide against digitalisation for financial r...

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Main Authors: Luzian Dold, Christian Speck
Format: Article
Language:English
Published: Universitat Politècnica de València 2021-07-01
Series:International Journal of Production Management and Engineering
Subjects:
Online Access:https://polipapers.upv.es/index.php/IJPME/article/view/15058
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author Luzian Dold
Christian Speck
author_facet Luzian Dold
Christian Speck
author_sort Luzian Dold
collection DOAJ
description Although Industry 4.0 and other initiatives predict widespread adoption of digitalised technology on the factory floor, few companies use new digitalised production technology holistically in their ecosystems; in practical implementation, companies often decide against digitalisation for financial reasons. This is due to a paradox (akin to the so called “productivity paradox”) caused by the complexity of value creation and value delivery within digitalised production. This article analyses and synthesises cross-disciplinary research using a grounded theory model, thus offering valuable insights for businesses considering investing in digitalised production. A qualitative model and an associated toolbox (complete with tools for practical application by business leaders and decision-makers) are presented to address organisational uncertainty and leadership disconnect that often contribute to the paradoxical gap between digital strategy and operational implementation.
format Article
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institution Kabale University
issn 2340-4876
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publishDate 2021-07-01
publisher Universitat Politècnica de València
record_format Article
series International Journal of Production Management and Engineering
spelling doaj-art-fdc31fec2d8e4ca1a6da0cedf7aa2b442025-01-02T08:38:40ZengUniversitat Politècnica de ValènciaInternational Journal of Production Management and Engineering2340-48762021-07-0192658010.4995/ijpme.2021.150588844Resolving the productivity paradox of digitalised productionLuzian Dold0Christian Speck1Middlesex UniversityKalaidos FachhochschuleAlthough Industry 4.0 and other initiatives predict widespread adoption of digitalised technology on the factory floor, few companies use new digitalised production technology holistically in their ecosystems; in practical implementation, companies often decide against digitalisation for financial reasons. This is due to a paradox (akin to the so called “productivity paradox”) caused by the complexity of value creation and value delivery within digitalised production. This article analyses and synthesises cross-disciplinary research using a grounded theory model, thus offering valuable insights for businesses considering investing in digitalised production. A qualitative model and an associated toolbox (complete with tools for practical application by business leaders and decision-makers) are presented to address organisational uncertainty and leadership disconnect that often contribute to the paradoxical gap between digital strategy and operational implementation.https://polipapers.upv.es/index.php/IJPME/article/view/15058digitalised productiondigital transformationindustry 4.0industrie 4.0value creationvalue capturemanufacturing strategy
spellingShingle Luzian Dold
Christian Speck
Resolving the productivity paradox of digitalised production
International Journal of Production Management and Engineering
digitalised production
digital transformation
industry 4.0
industrie 4.0
value creation
value capture
manufacturing strategy
title Resolving the productivity paradox of digitalised production
title_full Resolving the productivity paradox of digitalised production
title_fullStr Resolving the productivity paradox of digitalised production
title_full_unstemmed Resolving the productivity paradox of digitalised production
title_short Resolving the productivity paradox of digitalised production
title_sort resolving the productivity paradox of digitalised production
topic digitalised production
digital transformation
industry 4.0
industrie 4.0
value creation
value capture
manufacturing strategy
url https://polipapers.upv.es/index.php/IJPME/article/view/15058
work_keys_str_mv AT luziandold resolvingtheproductivityparadoxofdigitalisedproduction
AT christianspeck resolvingtheproductivityparadoxofdigitalisedproduction