Open AccessResolving the productivity paradox of digitalised production
Author(s) -
Luzian Dold,
Christian Speck
Publication year - 2021
Publication title -
international journal of production management and engineering
Language(s) - English
Resource type - Journals
eISSN - 2340-4876
pISSN - 2340-5317
DOI - 10.4995/ijpme.2021.15058
Subject(s) - productivity , production (economics) , toolbox , business , value (mathematics) , factory (object oriented programming) , industrial organization , process management , computer science , economics , machine learning , macroeconomics , programming language
Although Industry 4.0 and other initiatives predict widespread adoption of digitalised technology on the factory floor, few companies use new digitalised production technology holistically in their ecosystems; in practical implementation, companies often decide against digitalisation for financial reasons. This is due to a paradox (akin to the so called “productivity paradox”) caused by the complexity of value creation and value delivery within digitalised production. This article analyses and synthesises cross-disciplinary research using a grounded theory model, thus offering valuable insights for businesses considering investing in digitalised production. A qualitative model and an associated toolbox (complete with tools for practical application by business leaders and decision-makers) are presented to address organisational uncertainty and leadership disconnect that often contribute to the paradoxical gap between digital strategy and operational implementation.