ABSTRACT
In this chapter we trace the progress of digital transformation in the production of goods, describing the emergence of Industry 4.0, aka smart or intelligent manufacturing. We start with a concise description of the key digital technologies that are revolutionising production: the Industrial Internet of Things (a network of connected data-generating devices), a new generation of mobile, flexible and AI-operated robots, and advanced tools for integrating physical and virtual reality such as digital twins. Asserting that Industry 4.0 is based on the efficient use of data and intelligent algorithms throughout the production process, we show how datafication translates into how companies organise and operate themselves, adding to the vertical and horizontal integration of processes. Datafication of the product life-cycle contributes to the emergence of new business models based on personalisation and servitisation. Turning then to platformisation, we address the budding role of industrial platforms in coordinating relations within supply chains/networks and the rapidly growing imminence of e-commerce platforms in distribution. We conclude by indicating the fundamental similarities between the processes and outcomes of digital transformation in manufacturing and in service sectors, using the example of the digital transformation of banking.
