Information Security Management

Industry 4.0 refers to the fourth industrial revolution that involves a drastic industry development through cutting-edge technology that enhances connectivity and automation (Wikipedia, 2019; Müller, 2019). Cloud computing, cyber-physical systems, and the internet of things are fundamental building blocks for Industry 4.0.

Coping with industry 4.0 could be challenging, especially for SMEs that don’t have access to adequate finance (Dias, 2022). This is important because key resources will need to be updated or changed to enable providing Industry 4.0 solutions or products. Those resources are not in the form of facilities and equipment but also in the form of skills that need to be acquired through training existing employees or hiring new ones (Müller, 2019).

Different views are available in the literature regarding the risk of digitalizing business models and which block of the nine blocks of the business models’ canvas is most affected. Müller (2019) found, using an exploratory study, that key resources is the main affected section from the Industry 4.0 providers’ point of view. This finding is in concordance with Kovaitė and Stankevičienė (2019). However, both authors had different perspectives on the risk that Industry 4.0 lays on customer channels. Kovaitė and Stankevičienė (2019) found that customer channels are at the highest risk in all risk categories (Technical, competence, customer acceptance, data security, and financial risks). In contrast, Müller (2019) found that customer channels are the least affected by Industry 4.0 for SMEs.

References

Dias, L. (2022) Industry 4.0 and the small business something behind the technology: A literature review. Serbian Journal of Management 17(1): 161-178.

Kovaitė, K. & Stankevičienė, J. (2019) ‘Risks of digitalisation of business models. Proceedings of 6th International Scientific Conference Contemporary Issues in Business, Management and Economics Engineering’. 2019. Available from: http://dx.doi.org/10.3846/cibmee.2019.039 [Accessed 11 November].

Müller, J. M. (2019) Business model innovation in small- and medium-sized enterprises. Journal of Manufacturing Technology Management 30(8): 1127-1142.