A Strategy Guidance Model to realize Industrial Digitalization in Production Companies

Abstract

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 reworked 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.