Table 2.

Overview of support IS capabilities for Industry 4.0

Support IS capabilities for Industry 4.0
Capability	Definition	Explanation & Example(s)
Strategy
Strategic evaluation of customer & technology trends	A company’s ability to identify and assess digital customer and technology trends according to its business strategy (Neirotti et al., 2018; Schroeder et al., 2019)	Explanation: To ensure long-term competitiveness, a company must identify important trends in technology and customer demands. The key is to access different sources inside the company (e.g. technical and sales experts) and outside of it (e.g. major IT vendors). When assessing digital technologies, companies must systematically evaluate the values that such technologies or technological trends have for their business and customers (Schroeder et al., 2019). Furthermore, they must assess how customer needs and behaviours are changing due to new technological developments. For such evaluations, the potential use, technical feasibility, and related investments are all of importance. Example(s): According to our interviewed experts, identifying trends is often done by a business development unit that serves as a kind of radar for technology and customer trends. This capability could also be outsourced to experts in the respective field or research institutions (I1, I3, I4).
Data-based product & service innovation	A company’s ability to use customer and product lifecycle data to innovate products and services in a structured innovation process (Neirotti et al., 2018; Weking et al., 2020)	Explanation: Due to the emergence of digital technologies and the associated benefits of closer customer interaction and access to product lifecycle data, manufacturers can now leverage data to anticipate customer needs (Weking et al., 2020). They can, therefore, expand or refine existing product portfolios, provide value-added services, or seek out new co-creation opportunities (Neirotti et al., 2018). According to all of our interviewed experts, this translates into shorter time-to-market and higher innovation rates for products as well as services. Example(s): Two interviewed experts mentioned that their companies automatically monitor the usage of their products, using, for instance, corresponding vibration patterns to offer predictive maintenance solutions (I2, I4).
Readjustment of sales & service provisioning structures	A company’s ability to establish and adapt (organisational) structures to provide integrated product and service solutions	Explanation: This capability was emphasised and added by the interviewed experts because they identified it as one of the critical capabilities for succeeding in marketing and providing new digital product and service solutions, especially when the service is not a by-product anymore. The experts stressed the (organisational) readjustment because most manufacturers of the service and sales department are still focused on the (one-time) sales of products instead of providing continuous service relationships. Although this aspect has not been extensively researched so far, some work points out that the reorganisation behind and automation of service offerings is crucial to ensure service availability to the customer and profitability to the manufacturer (e.g. Cimini et al. (2020). Example (sI1 and I4 pointed out that marketing digital service solutions differ from marketing physical products, requiring the adaption of new approaches such as live demonstrations. I8 added that the company needs to adapt roles (e.g. for sales representatives) and systems (e.g. incentives) accounting for digital services’ success.
Strategic leveraging of partner networks	A company’s ability to rethink, use, and adjust its business network to increase internal efficiency and extend its value proposition (Wagire et al., 2020; Zacca et al., 2015)	Explanation: To go with the times, manufacturers have to learn how to initiate, develop, and use new business partnerships, such as a portfolio of third-party technology providers that enable them to complement their own capabilities (Zacca et al., 2015). As a result, manufacturers become part of digital ecosystems that integrate the resources of various partners to ensure that additional capabilities are available when co-creating Industry 4.0 solutions (Cainelli et al., 2012; Wagire et al., 2020). Example(s): Our interviewed experts made the point that some key questions have to be asked when deciding whether to insource or outsource IS capabilities. These questions concern not only the ways in which manufacturers can differentiate themselves from competitors, but also the access to experts on whichever capability may be required, and of course, the issue of long-term investments and who may provide these (I4, I7, I10).
Technology
Seamless operations & process digitalisation	A company’s ability to ensure operational efficiency and to continually digitalise processes (Schroeder et al., 2019; Wagire et al., 2020; Waschull et al., 2020)	Explanation: Digital technologies make it possible to improve operational efficiency in the organisation, and indeed in the process of dealing with customers (I1, I4). This capability requires employees to understand, monitor, and synchronise integrated processes (Schroeder et al., 2019; Waschull et al., 2020). Our interviewed experts emphasised the challenge of digitalising support processes connected to new product and service solutions, given that new digital offerings also afford different processes and delivery systems. Example(s): By better connecting available logistics data, the established rationale of planning supply by first looking at demand can be replaced with a data-based solution that takes over the scheduling process (Waschull et al., 2020). Specific implementation examples include the automation of a customer support process for contract cancellations (I1) and the automation of billing processes (I4). Both were previously performed manually.
Seamless human-machine collaboration	A company’s ability to provide customised and flexible user interfaces as well as enable seamless collaboration between humans and machines (Patterson, 2017; Schuh et al., 2020; Wagire et al., 2020; Wittenberg, 2016)	Explanation: User-friendly solutions for employees and customers alike should be implemented for an intuitive and seamless collaboration between humans and machines (Schuh et al., 2020; Wittenberg, 2016). The design of related interfaces and systems needs to consider psychological and cognitive human requirements (Patterson, 2017) to ensure it eases human-to-machine communication in various roles (Wagire et al., 2020). Our industry experts highlighted the importance of this because easy-to-use interfaces and systems relax the requirements of the experts handling the machines (I2, I3). Example(s): User-friendly interfaces, such as rotary controls and instructional displays, are an upcoming topic of notable significance to the further development of the manufacturing system (I4, I8).
Governance of data, product security & liability	A company’s ability to prepare, prevent, recover, and learn from actual or potential cyber security threats (Babiceanu & Seker, 2016; Liu et al., 2020; Schuh et al., 2020; Weber et al., 2019).	Explanation: Due to the implementation of connected products and the associated data exchange within and across organisational boundaries, the protection of intellectual property plays an essential role, as does the protection of customer and employee data from threats such as cyber-attacks, unauthorised access, and industrial espionage (Liu et al., 2020; Schuh et al., 2020). From an ex-ante perspective, the ‘prepare and prevent’ strategy provides a comprehensive analysis of the present threat situation and the implementation of security measures that cover product administration and data ownership structures as user authentication mechanisms. As for ex-post countermeasures, the ‘recover and learn’ strategy makes it possible to mitigate the harm caused by such attacks (Babiceanu & Seker, 2016). Example(s): This capability can include encryption, authentication, and authorisation measures that help establish secure communication protocols (Wagire et al., 2020). The company of I3 decided that this does not necessarily mean that the implementation of cyber-security measures must be done internally, but rather that the governance mechanisms which guarantee maintained control are essential to its organisation.
Intra-organisational information exchange	A company’s ability to achieve a seamless and context-driven exchange of relevant information (Emmanouilidis et al., 2019; Endert et al., 2014).	Explanation: An efficient and user-oriented information exchange is necessary to make innovative product and process improvements. Only relevant data should be made available to employees to increase data consumption efficiency and better manage the increasing amount and complexity of data (Emmanouilidis et al., 2019). Example(s): One possible solution is visually enhanced data, such as dashboards or task-specific user interfaces which deliver the appropriate amount of information for a specific context (Emmanouilidis et al., 2019). Our interviewed experts suggested that this could be implemented by displaying only the information necessary to guide a service technician through a repair process (I2) or relevant key-performance indicators on a screen above production units (I4).
Human Resource
Established mutual trust, adaptability, & openness	A company’s ability to establish, maintain and promote mutual trust within their organisation as well as with their customers in order to adapt to new developments and trends (Bienhaus & Haddud, 2018; Weber et al., 2019)	Explanation: An essential building block of Industry 4.0 is the mutual trust established among all involved parties, including employees, customers, and ecosystem partners (Bienhaus & Haddud, 2018). Industry 4.0 refers to highly interconnected supply chain ecosystems in which trust is an essential factor due to the high incident rate of interactions and data sharing (Weber et al., 2019). Such trust is critical in customer relations because smart products not only require the willingness to share data (e.g. usage data). They also provide the foundation for further exchange in new types of product and service offerings. Example(s): As one industry expert highlighted, the value of a feature needs to be visible and made transparently. Otherwise, it will not be easy to convince the customer for trying something new or sharing sensitive data (I3).
Leadership for change & agility	A company’s ability to find the right form of leadership in a complex and fast-paced business environment facilitates an agile working context in which to adapt well to change (Benešová & Tupa, 2017; Shamim et al., 2016; Wagire et al., 2020)	Explanation: Companies must employ an agile leadership that enables their employees to accept and embrace change (Wagire et al., 2020). Both the literature and our interviews provide evidence that the social attitudes of adaptability and openness need to be fostered. As Industry 4.0 continues its complex and unpredictable progress, open management must adapt to new technological developments (Shamim et al., 2016). Furthermore, managers and team-leaders should encourage openness towards continuous learning and interdisciplinary teamwork (Benešová & Tupa, 2017). Example(s): Two industry experts mentioned challenges they currently face in establishing a management culture supported by all and minimises the fear of employees losing their jobs to technology (I1, I2).
Profound digital literacy of employees	A company’s ability to improve its employees’ knowledge of digital technologies and their competence in evaluating and implementing them (Bonekamp & Sure, 2015; Prifti et al., 2017; Wagire et al., 2020)	Explanation: Since working in Industry 4.0 increasingly requires digital literacy, organisational structures that facilitate the development of both general and role-specific digital competencies must be established (Bonekamp & Sure, 2015). Digital literacy, however, refers not only to comprehensive technological knowledge but also to the ability to solve complex technological problems, learn new methods, and apply them (Prifti et al., 2017). Example(s): This involves knowledge of the right choice of collaboration tools (I9) and knowledge of technological possibilities (I10), as well as the secure handling of digital technologies when dealing with sensitive data (I8).
Fostering interdisciplinary teamwork	A company’s ability to empower employees to communicate and collaborate in interdisciplinary setups and to involve different roles in innovation processes (Waschull et al., 2020; Weber et al., 2019; Xu, 2020)	Explanation: Due to the interdisciplinary nature of Industry 4.0 projects, there is a need for collaboration between various roles and departments, be it within a company or beyond. This is why it is important for manufacturing companies to promote an interdisciplinary approach for creating and sharing knowledge. This can be achieved by implementing open innovation processes involving experts from various domains (Waschull et al., 2020; Weber et al., 2019; Xu, 2020). Example(s): The breaking up of silo structures, the establishing of cross-organisational setups for idea crowdsourcing (I3), and the provision of tools for virtual collaboration among people in a variety of locations all became a necessity in the lockdown periods during the COVID-19-pandemic (I8).