Opportunities and Challenges of Implementing Industry 4.0 Technologies in Business Operations

Abstract

This research addresses implementation of Industry 4.0 (I4.0) technologies in business operations. Using Finnish businesses as the context of research, the study presents the answer to vital questions including how industries are adopting I4.0 in Finland and what are some of the opportunities and challenges in the implementation of I4.0 technologies. We bank on Porter’s five forces model as theoretical framework. The study is explorative in nature and uses qualitative research methodology. The empirical data is collected through semi-structures interviews with personnel from several industries located in Finland. The results show that implementation of I4.0 has created integrated value-creation networks and ecosystems across various market segments. These ecosystems are reshaping market dynamics and competitive landscapes for companies involved. This new environment offers opportunities for growth, value capture. This approach has prompted organizations re-evaluate roles within an ecosystem. Manufacturers, partners, suppliers, and customers are collaborating to build ecosystems for mutually beneficial objectives. The I4.0 is a crucial area for future business development in the Finnish industries. It’s a growth area that is focused on I4.0. Besides, results also highlight some challenges industries have faced during the implementation of I4.0 technologies in business operations including immediate requirement of improved cyber security solutions, lack of industry-specific standardization, prevailing resistance to change, and dire need for trained human resources capable of working with I4.0 technologies.