Role of Industry 4.0 in Pandemic Covid-19 and Shifting Business Models
Keywords:
Covid-19, Business models, Industry 4.0, Innovation, Supply chain management
Abstract
We have conducted a brief literature review to learn more about the impact of Covid-19 on supply chains and how Industry 4.0 has helped to innovate business models as a result. Industry 4.0 (I4.0) was gaining popularity in every field before the pandemic. It brought a change in almost every area of life. It was becoming mandatory for organizations to change according to industry 4.0 parameters to remain competitive. Covid-19 has hit the world badly, leaving business operations to halt worldwide. It has accelerated the transformation process. It has forced practitioners to think about innovative Business models. Business models are the backbone of any progressive business that links its core technological functions and other activities to fulfil customers' needs. This paper sums up the transformation process under the umbrella of I4.0. It also summarises the effect of Covid-19 disruptions that hit the SC. It explores the stages which can be followed to recondition the business models. We summed up literature for practitioners to see possibilities to transform and survive existing disruptions. We have discussed emerging business models with the latest technologies. In this literature, we incorporate a four-step business model innovation process. Artificial intelligence, smart machinery, the Internet of Things, and Robotics are the main components of I4.0 that can revolutionize the value enhancement phenomena of any BM. Covid-19's effects on supply chain resilience and agility and the coping mechanisms provided by I4.0 were not thoroughly examined in previous studies.
References
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Kotarba, M. (2018). Digital transformation of business models. Foundations of Management, 10(1), 123-142.
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Massaro, M., Dumay, J., & Guthrie, J. (2016). On the shoulders of giants: undertaking a structured literature review in accounting. Accounting, Auditing and Accountability Journal.
Matthyssens, P. (2019). Reconceptualizing value innovation for Industry 4.0 and the Industrial Internet of Things. Journal of Business and Industrial Marketing.
Metallo, C., Agrifoglio, R., Schiavone, F., & Mueller, J. (2018). The understanding business model in the Internet of Things industry. Technological Forecasting and Social Change, 136, 298-306.
Moeuf, A., Pellerin, R., Lamouri, S., Tamayo-Giraldo, S., & Barbaray, R. (2018). The industrial management of SMEs in the era of Industry 4.0. International Journal of Production Research, 56(3), 1118-1136.
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Osterwalder, A., & Pigneur, Y. (2010). Business model generation: a handbook for visionaries, game-changers, and challengers. John Wiley and Sons.
Pacaux-Lemoine, M.-P., Trentesaux, D., Rey, G. Z., & Millot, P. (2017). Designing intelligent manufacturing systems through Human-Machine Cooperation principles: A human-centered approach. Computers and Industrial Engineering, 111, 581-595.
Pantano, E., Pizzi, G., Scarpi, D., & Dennis, C. (2020). Competing during a pandemic? Retailers’ ups and downs during the COVID-19 outbreak. Journal of Business Research, 116, 209-213.
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Sigala, M. (2020). Tourism and COVID-19: Impacts and implications for advancing and resetting industry and research. Journal of Business Research, 117, 312-321.
Sjö din, D., Parida, V., Kohtamä ki, M., & Wincent, J. (2020). An agile co-creation process for digital servitization: A micro-service innovation approach. Journal of Business Research, 112, 478-491.
Sommer, L. (2015). Industrial revolution-industry 4.0: Are German manufacturing SMEs the first victims of this revolution? Journal of Industrial Engineering and Management, 8(5), 1512-1532.
Stock, T., & Seliger, G. (2016). Opportunities of sustainable manufacturing in industry 4.0. Procedia CIRP, 40, 536-541.
Thoben, K.-D., Wiesner, S., & Wuest, T. (2017). “Industrie 4.0” and smart manufacturing-a review of research issues and application examples. International Journal of Automation Technology, 11(1), 4-16.
Tranfield, D., Denyer, D., & Smart, P. (2003). Towards a methodology for developing evidence-informed management knowledge by means of the systematic review. British Journal of Management, 14(3), 207-222.
Visnjic, I., Wiengarten, F., & Neely, A. (2016). Only the brave: Product innovation, service business model innovation, and their impact on performance. Journal of Product Innovation Management, 33(1), 36-52.
Weking, J., Bö ttcher, T., Hermes, S., & Hein, A. (2019). Does the business model matter for startup success? A quantitative analysis. Paper presented at the Twenty-Seventh European Conference on Information Systems (ECIS 2019), Stockholm-Uppsala, Sweden.
Weking, J., Brosig, C., Bö hm, M., & Hein, A. (2018). Business Model Innovation Strategies for Product-Service Systems–An Explorative Study in the Manufacturing Industry.
Weking, J., Stö cker, M., Kowalkiewicz, M., Bö hm, M., & Krcmar, H. (2019). Leveraging industry 4.0–A business model pattern framework. International Journal of Production Economics, 107588.
Winston, A. (2020). Is the COVID-19 outbreak a black swan or the new normal? MIT Sloan Management Review, 16, 154-173.
Wirtz, B. W., Pistoia, A., Ullrich, S., & Gö ttel, V. (2016). Business models: Origin, development, and future research perspectives. Long Range Planning, 49(1), 36-54.
Wittenberg, C. (2016). Human-CPS Interaction-requirements and human-machine interaction methods for Industry 4.0. IFAC-PapersOnLine, 49(19), 420-425.
Arnold, C., Kiel, D., & Voigt, K.-I. (2016). How the industrial internet of things changes business models in different manufacturing industries. International Journal of Innovation Management, 20(08), 1640015.
Arnold, C., Kiel, D., & Voigt, K.-I. (2017). Innovative business models for the industrial internet of things. BHM Berg-und Hüttenmännische Monatshefte, 162(9), 371-381.
Bae, J., Choi, W., & Lim, J. (2020). Corporate social responsibility: An umbrella or a puddle on a rainy day? Evidence surrounding corporate financial misconduct. European Financial Management, 26(1), 77-117.
Bhatti, S. H., Santoro, G., Khan, J., & Rizzato, F. (2021). Antecedents and consequences of business model innovation in the IT industry. Journal of Business Research, 123, 389-400.
Bretas, V. P. G., & Alon, I. (2020). The impact of COVID-19 on franchising in emerging markets: An example from Brazil. Global Business and Organizational Excellence, 39(6), 6-16.
Brown, A., Fishenden, J., & Thompson, M. (2014). Organizational structures and digital transformation Digitizing Government (pp. 165-183): Springer.
Coreynen, W., Matthyssens, P., & Van Bockhaven, W. (2017). Boosting servitization through digitization: Pathways and dynamic resource configurations for manufacturers. Industrial Marketing Management, 60, 42-53.
Corkery, M., & Gelles, D. (2020). Robots are welcome to take over as pandemic accelerates automation. New York Times, 10.
Davis, J., Edgar, T., Porter, J., Bernaden, J., & Sarli, M. (2012). Smart manufacturing, manufacturing intelligence, and demand-dynamic performance. Computers and Chemical Engineering, 47, 145-156.
Di Vaio, A., Palladino, R., Hassan, R., & Escobar, O. (2020). Artificial intelligence and business models in the sustainable development goals perspective: A systematic literature review. Journal of Business Research, 121, 283-314.
Di Vaio, A., Palladino, R., Pezzi, A., & Kalisz, D. E. (2021). The role of digital innovation in knowledge management systems: A systematic literature review. Journal of Business Research, 123, 220-231.
Dolgui, A., Ivanov, D., & Sokolov, B. (2018). Ripple effect in the supply chain: analysis and recent literature. International journal of production research, 56(1-2), 414-430.
Eggert, A., Hogreve, J., Ulaga, W., & Muenkhoff, E. (2014). Revenue and profit implications of industrial service strategies. Journal of Service Research, 17(1), 23-39.
Elbers, F., Podoynitsyna, K., & Reymen, I. (2010). Designing innovative business models: A methodology for structured business model innovation. Technische Universiteit Eindhoven.
Fadel, M., Salomon, J., & Descatha, A. (2020). Coronavirus outbreak: the role of companies in preparedness and responses. The Lancet Public Health, 5(4), e193.
Fernandes, N. (2020). Economic effects of coronavirus outbreak (COVID-19) on the world economy. Available at SSRN 3557504.
Gierej, S. (2017). The framework of business model in the context of Industrial Internet of Things. Procedia Engineering, 182(2017), 206-212.
Gordon, A. V., Ramic, M., Rohrbeck, R., & Spaniol, M. J. (2020). 50 years of corporate and organizational foresight: Looking back and going forward. Technological Forecasting and Social Change, 154, 119966.
He, W., & Xu, L. (2015). A state-of-the-art survey of cloud manufacturing. International Journal of Computer Integrated Manufacturing, 28(3), 239-250.
Ibarra, D., Ganzarain, J., & Igartua, J. I. (2018). Business model innovation through Industry 4.0: A review. Procedia Manufacturing, 22, 4-10.
Ivanov, D. (2018). New Drivers for Supply Chain Structural Dynamics and Resilience: Sustainability, Industry 4.0. Self-Adaptation, 265, 293-313.
Ivanov, D. (2020). Predicting the impacts of epidemic outbreaks on global supply chains: A simulation-based analysis on the coronavirus outbreak (COVID-19/SARS-CoV-2) case. Transportation Research Part E: Logistics and Transportation Review, 136, 101922.
Ivanov, D., & Dolgui, A. (2020). Viability of intertwined supply networks: extending the supply chain resilience angles towards survivability. A position paper motivated by the COVID-19 outbreak. International Journal of Production Research, 58(10), 2904-2915.
Ivanov, D., Sethi, S., Dolgui, A., & Sokolov, B. (2018). A survey on control theory applications to operational systems, supply chain management, and Industry 4.0. Annual Reviews in Control, 46, 134-147.
Ju, J., Kim, M.-S., & Ahn, J.-H. (2016). Prototyping business models for IoT service. Procedia Computer Science, 91, 882-890.
Kiel, D., Arnold, C., Collisi, M., & Voigt, K. (2016). The impact of the industrial internet of things on established business models. Paper presented at the Proceedings of the 25th international association for management of technology (IAMOT) conference.
Kiel, D., Arnold, C., & Voigt, K.-I. (2017). The influence of the Industrial Internet of Things on business models of established manufacturing companies–A business-level perspective. Technovation, 68, 4-19.
Kilkki, K., Mäntylä , M., Karhu, K., Hämmäinen, H., & Ailisto, H. (2018). A disruption framework. Technological Forecasting and Social Change, 129, 275-284.
Kotarba, M. (2018). Digital transformation of business models. Foundations of Management, 10(1), 123-142.
Kuckertz, A., Brändle, L., Gaudig, A., Hinderer, S., Reyes, C. A. M., Prochotta, A., . . . Berger, E. S. (2020). Startups in times of crisis–A rapid response to the COVID-19 pandemic. Journal of Business Venturing Insights, 13, e00169.
Kumar, S., & Managi, S. (2020). Does the stringency of lockdown affect air quality? Evidence from Indian cities. Economics of Disasters and Climate Change, 4(3), 481-502.
Lalanda, P., Morand, D., & Chollet, S. (2017). Autonomic mediation middleware for smart manufacturing. IEEE Internet Computing, 21(1), 32-39.
Laput, G., Zhang, Y., & Harrison, C. (2017). Synthetic Sensors: Towards general-purpose sensing. Paper presented at the Proceedings of the 2017 CHI Conference on Human Factors in Computing Systems.
Massa, L., Tucci, C. L., & Afuah, A. (2017). A critical assessment of business model research. Academy of Management Annals, 11(1), 73-104.
Massaro, M., Dumay, J., & Guthrie, J. (2016). On the shoulders of giants: undertaking a structured literature review in accounting. Accounting, Auditing and Accountability Journal.
Matthyssens, P. (2019). Reconceptualizing value innovation for Industry 4.0 and the Industrial Internet of Things. Journal of Business and Industrial Marketing.
Metallo, C., Agrifoglio, R., Schiavone, F., & Mueller, J. (2018). The understanding business model in the Internet of Things industry. Technological Forecasting and Social Change, 136, 298-306.
Moeuf, A., Pellerin, R., Lamouri, S., Tamayo-Giraldo, S., & Barbaray, R. (2018). The industrial management of SMEs in the era of Industry 4.0. International Journal of Production Research, 56(3), 1118-1136.
Mü ller, J. M., Buliga, O., & Voigt, K.-I. (2018). Fortune favors the prepared: How SMEs approach business model innovations in Industry 4.0. Technological Forecasting and Social Change, 132, 2-17.
Osterwalder, A., & Pigneur, Y. (2010). Business model generation: a handbook for visionaries, game-changers, and challengers. John Wiley and Sons.
Pacaux-Lemoine, M.-P., Trentesaux, D., Rey, G. Z., & Millot, P. (2017). Designing intelligent manufacturing systems through Human-Machine Cooperation principles: A human-centered approach. Computers and Industrial Engineering, 111, 581-595.
Pantano, E., Pizzi, G., Scarpi, D., & Dennis, C. (2020). Competing during a pandemic? Retailers’ ups and downs during the COVID-19 outbreak. Journal of Business Research, 116, 209-213.
Ritter, T., & Pedersen, C. L. (2019). Digitization capability and the digitalization of business models in business-to-business ϔirms: Past, present, and future. Industrial Marketing Management.
Roblek, V., Meško, M., & Krapež, A. (2016). A Complex View of Industry 4.0. SAGE Open, 6(2).
Rü ßmann, M., Lorenz, M., Gerbert, P., Waldner, M., Justus, J., Engel, P., & Harnisch, M. (2015). Industry 4.0: The Future of Productivity and growth in manufacturing industries. Boston Consulting Group, 9.
Schrauf, S., & Berttram, P. (2016). Industry 4.0: How digitization makes the supply chain more efϔicient, agile, and customer-focused. Strategy and Pwc.
Scuotto, V., Santoro, G., Bresciani, S., & Del Giudice, M. (2017). Shifting intra-and inter-organizational innovation processes towards digital business: An empirical analysis of SMEs. Creativity and Innovation Management, 26(3), 247-255.
Shin, S.-J., Woo, J., & Rachuri, S. (2014). Predictive analytics model for power consumption in manufacturing. Procedia CIRP, 15, 153-158.
Sigala, M. (2020). Tourism and COVID-19: Impacts and implications for advancing and resetting industry and research. Journal of Business Research, 117, 312-321.
Sjö din, D., Parida, V., Kohtamä ki, M., & Wincent, J. (2020). An agile co-creation process for digital servitization: A micro-service innovation approach. Journal of Business Research, 112, 478-491.
Sommer, L. (2015). Industrial revolution-industry 4.0: Are German manufacturing SMEs the first victims of this revolution? Journal of Industrial Engineering and Management, 8(5), 1512-1532.
Stock, T., & Seliger, G. (2016). Opportunities of sustainable manufacturing in industry 4.0. Procedia CIRP, 40, 536-541.
Thoben, K.-D., Wiesner, S., & Wuest, T. (2017). “Industrie 4.0” and smart manufacturing-a review of research issues and application examples. International Journal of Automation Technology, 11(1), 4-16.
Tranfield, D., Denyer, D., & Smart, P. (2003). Towards a methodology for developing evidence-informed management knowledge by means of the systematic review. British Journal of Management, 14(3), 207-222.
Visnjic, I., Wiengarten, F., & Neely, A. (2016). Only the brave: Product innovation, service business model innovation, and their impact on performance. Journal of Product Innovation Management, 33(1), 36-52.
Weking, J., Bö ttcher, T., Hermes, S., & Hein, A. (2019). Does the business model matter for startup success? A quantitative analysis. Paper presented at the Twenty-Seventh European Conference on Information Systems (ECIS 2019), Stockholm-Uppsala, Sweden.
Weking, J., Brosig, C., Bö hm, M., & Hein, A. (2018). Business Model Innovation Strategies for Product-Service Systems–An Explorative Study in the Manufacturing Industry.
Weking, J., Stö cker, M., Kowalkiewicz, M., Bö hm, M., & Krcmar, H. (2019). Leveraging industry 4.0–A business model pattern framework. International Journal of Production Economics, 107588.
Winston, A. (2020). Is the COVID-19 outbreak a black swan or the new normal? MIT Sloan Management Review, 16, 154-173.
Wirtz, B. W., Pistoia, A., Ullrich, S., & Gö ttel, V. (2016). Business models: Origin, development, and future research perspectives. Long Range Planning, 49(1), 36-54.
Wittenberg, C. (2016). Human-CPS Interaction-requirements and human-machine interaction methods for Industry 4.0. IFAC-PapersOnLine, 49(19), 420-425.
Published
2022-03-31
How to Cite
Zobia Malik, & Urooj Pasha. (2022). Role of Industry 4.0 in Pandemic Covid-19 and Shifting Business Models. Journal of Management Practices, Humanities and Social Sciences, 6(2), 1-14. https://doi.org/10.33152/jmphss-6.2.1
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