Industry 4.0 and the related new technologies, such as the “Internet of Things”, “cyber-physical systems” and “additive manufacturing”, will drive radical performance improvements in terms of cost and customer excitement. CxOs in all industries are currently defining their ways to explore and exploit the benefits. The bad news is that the variety of technologies and limited number of industrialized examples make it hard to understand the complexity of the topic.
The good message is that this is far more than buzzwords. The new technologies have actual game-changing potential. Savings of between 15 and 50 percent per cost line can be achieved on the operations side. Leaders need to act now. The challenge is to define a powerful operations concept that is forward looking and ensures measurable short-term benefits.