How will artificial intelligence and Industry 4.0 emerging technologies transform operations management?

TLDR

Industry 4.0 technologies—AI, blockchain, additive manufacturing, robotics, autonomous vehicles, and IoT—are widely cited as reshaping operations and supply‑chain management. This paper reviews the evolution of technologies and OM, focuses on fundamental issues of Industry 4.0, and proposes a disruptive debottlenecking theory and the SACE framework. The authors classify emerging technologies by sense‑analyze‑collaborate‑execute functions, review the growing literature at the digital‑OM interface, and develop the SACE framework. The review indicates that Industry 4.0 adds revenue, differentiates, cuts costs, optimizes risk, drives innovation, and transforms business models, and outlines a research agenda.

Abstract

Emerging technologies such as artificial intelligence, blockchain, additive manufacturing, advanced robotics, autonomous vehicles, and the Internet of Things are frequently mentioned as part of “Industry 4.0.” As such, how will they influence operations and supply chain management? We answer this question by providing a brief review of the evolution of technologies and operations management (OM) over time. Because terms such as “Industry 4.0” do not have a precise definition, we focus on more fundamental issues raised by Industry 4.0 emerging technologies for research in OM. We propose a theory of disruptive debottlenecking and the SACE framework by classifying emerging technologies in terms of the functionalities they enable: sense, analyze, collaborate, and execute. Subsequently, we review the nascent but rapidly growing literature at the interface between digital technologies and OM. Our review suggests that one way to assess the value of Industry 4.0 technologies can be via their influence on adding revenues, differentiating, reducing costs, optimizing risks, innovating, and transforming business models and processes. Finally, we conclude by proposing an agenda for further research.