As the manufacturing industry continues to embrace the concept of the digital factory, companies are beginning to look at the lessons learned from Industry 4.0 – the term used to describe the current digital revolution in manufacturing – as a way to gain efficiencies, digitize operations and differentiate themselves. The challenge for most manufacturing companies on this journey is that their IT and operational capabilities are siloed and that deconstructing and rebuilding them in a more integrated way is difficult. Though Industry 4.0 was conceived with just this goal in mind, many Industry 4.0 initiatives fail because of the effort inherent in three essential activities: creating a top-down vision, building bottom-up use cases and scaling information technology/operational technology (IT/OT) solutions across the enterprise.
These failures are not just a technology problem, but also a cultural and organizational change problem. Successfully making change requires breaking down old paradigms built up over the past several decades and creating an operating model that facilitates digital transformation. A recent ISG white paper Industry 4.0: Bridging the Gap between Information Technology and Operational Technology explores how organizations can make the changes they need to realize the benefits of Industry 4.0.