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This chapter is designed to provide an overview of the challenges facing Industry 4.0, focussing on the manufacturing sector, and highlighting the specifics of small to medium-sized enterprises. Recent technologies for data science, analysts, robotics, and other smart manufacturing trends are discussed, and the opportunities, difficulties, and limitations for breakthrough development are highlighted.

This chapter seeks to explain the manufacturing industries that have gone a lot of transformation in recent years. The changes were brought as a result of implementation of Industry 4.0 technologies. The aim of this chapter is to study Smart Manufacturing (SM) and to implement Industry 4.0 in a Sustainable Supply Chain. The study is qualitative which employs secondary sources of data. The data of the study were sourced from relevant published articles from 2017 to 23. Also the data were analyzed using thematic analysis. The results of the study revealed that, artificial intelligence (AI) Models, Cloud Connection, Smart Product, standard communication, cyber-physical system (CPS), virtual system builder among others are the requirements for adopting SM. While Augmented Reality (AR), 3D Printing, Big Data Analytics, AI, Internet of Things (IoT), among others are the major 14.0 technologies that enable Smart Manufacturing System (SMS). However, security issues, system integration, interoperability, multilingualism, standard interface, data quality, privacy concern, investment concern are the major challenges of implementing SMS for sustainable supply chain. This study concluded that, implementing SM in sustainable supply chain have significantly improved company's productivity, innovation, efficiency, effectiveness, cost-effective manufacturing operations as well as sustainable management.

The study explores the potential barriers to data science (DS) implementation in organizations and identifies the key barriers. The identified barriers were explored for their interconnectedness and characteristics. This study aims to help organizations formulate apt DS strategies by providing a close-to-reality DS implementation framework of barriers, in conjunction with extant literature and practitioners' viewpoints.

The authors synthesized 100 distinct barriers through systematic literature review (SLR) under the individual, organizational and governmental taxonomies. In discussions with 48 industry experts through semi-structured interviews, 14 key barriers were identified. The selected barriers were explored for their pair-wise relationships using interpretive structural modeling (ISM) and fuzzy Matriced’ Impacts Croise's Multiplication Appliquée a UN Classement (MICMAC) analyses in formulating the hierarchical framework.

The lack of awareness and data-related challenges are identified as the most prominent barriers, followed by non-alignment with organizational strategy, lack of competency with vendors and premature governmental arrangements, and classified as independent variables. The non-commitment of top-management team (TMT), significant investment costs, lack of swiftness in change management and a low tolerance for complexity and initial failures are recognized as the linkage variables. Employee reluctance, mid-level managerial resistance, a dearth of adequate skills and knowledge and working in silos depend on the rest of the identified barriers. The perceived threat to society is classified as the autonomous variable.

The study augments theoretical understanding from the literature with the practical viewpoints of industry experts in enhancing the knowledge of the DS ecosystem. The research offers organizations a generic framework to combat hindrances to DS initiatives strategically.

This study investigates the quantitative aspect of the various strains of operational excellence (OE) and competitive-potential (CP) in the SME sector. It has five steps, i.e., identifying the key performance constructs of OE and their hypothesized relationship pattern from literature, validating these constructs through factor analysis, formalizing their empirical relationships by structural-equation-modeling (SEM), path analysis of performance constructs with the empirical results, and lastly proposing a framework for OE deployment in SMEs.

Data for the deployment scores of operational excellence procedures (OEPs) were collected through a structured questionnaire survey. Nine hundred participants from a stratified random sample were approached for the survey, and 473 responses were received. Sample stratification was based on Gender, Education, Experience, Position, Department and Industry. Respondents had 5–30 years of experience managing manufacturing operations, holding the manager position and above.

The path analysis of the structural model provides unique insights into OE's practical aspects in SMEs (small and medium enterprises). For example, Contractual-conformance and Process-efficiency play pivotal roles as both have a significant positive impact on CP. Supplier efficacy, Consistency and Product-excellence do not improve CP unless mediated by Contractual-conformance or Process-efficiency.

The study provides important implications for academia, policymakers and managers. The study identifies and validates the operational excellence key performance practices and proposes a framework for manufacturing organizations. SME managers can follow the framework to develop effective operational excellence strategies to help them achieve their organizational goals. Additionally, the study emphasizes the need for continuous culture in SMEs, which will help to support operational excellence deployment. Overall, the implications presented in the study will help SMEs to enhance their competitiveness and operational performance.

The study explores the empirical investigation of the operational excellence deployment in SMEs. The study uses a mixed method approach for research design, including qualitative and quantitative approaches, and uses SEM to test the proposed framework. Validation of OE's six key performance constructs and establishing their empirical relation is an attempt to advance the Operations excellence theory. Unlike large enterprises, SMEs demonstrate an incohesive response to the practices pertaining to Supplier efficacy, Consistency and Product-excellence. This unique response pattern requires special treatment, which is incorporated into the proposed framework.

Purpose: In this chapter of this book, the role and contributions of blockchain in Industry 5.0 are examined. Especially, the advantages offered by blockchain in mass customization, hyper-personalization, human–robot collaboration and cognitive systems, which constitute the main theme of Industry 5.0, are mentioned.

Need for the study: With developing technology, revolutions are taking place in the industry. While these revolutions are occurring, various technologies serve as enablers. In this chapter, one of these technologies, blockchain, is examined.

Methodology: Industrial revolutions represent important technological developments for societies. In this chapter, Industry 5.0, one of these revolutions, is discussed. In the first section, the main themes of Industry 5.0 were examined. Afterward, the transition from Industry 4.0 to Industry 5.0 was analyzed. Then, the opportunities offered by Industry 5.0 were reviewed. Subsequently, the contributions of blockchain to Industry 5.0 were examined. Finally, the role of blockchain in Industry 5.0 is summarized.

Findings: The main themes of Industry 5.0 enable customized processes and smart production approaches. Blockchain makes significant contributions to these processes with its security and traceability features. In addition, smart contracts can increase transparency, traceability and security among stakeholders in the production process with their distributed ledger structure and immutability features. In blockchain networks, each transaction is carried out and approved by consensus. This consensus, provided by smart contracts, also secures transactions by reducing administrative costs. With these contributions, blockchain meets the security and smart management requirements of Industry 5.0.

This study aims to develop a production-oriented approach for optimal mass-customisation of floor panel layouts in cross-laminated timber (CLT) buildings. The study enables meeting building clients’ unique floor plan requirements at an optimal cost and simultaneously enhances manufacturers’ profit by minimising material and manufacturing process waste.

The present research uses a hybrid approach consisting of field data collection, mathematical modelling, development of a Genetic Algorithm (GA) and scenario analysis. Field data includes engineered timber production information, design data and building code requirements. The study adopts the Flexible Demand Assignment (FDA) technique to formulate a mathematical model for optimising the design of mass timber buildings and employs GA to identify optimal production solutions. Scenario analysis is performed to validate model outputs.

The proposed model successfully determines the load-bearing wall placement and building spans and specifications of floor panels that result in optimal production efficiency and the desired architectural layout. The results indicate that buildings made of a single category of thickness of panels but customised in various lengths to suit building layout are the most profitable scenario for CLT manufacturers and are a cost-effective option for clients.

The originality of the present study lies in its mathematical and model-driven approach towards implementing mass customisation in multi-storey buildings. The proposed model has been developed and validated based on a comprehensive set of real-world data and constraints.

Focusing on the resource crowding-out effect, this study aims to examine the relationship between an enterprise’s digital transformation and the internalisation of environmental costs.

This paper manually collects environmental cost data and measures corporate digital transformation constructed through a machine learning word vector (Word2Vec) technology approach based on the text information of annual reports (MD&A) for heavily polluting firms.

Corporate digital transformation has a significant inhibitory effect on the internalisation of corporate environmental costs. This is because low-level digital transformation has crowded out cash flows, preventing China’s heavily polluting firms from having the extra capacity needed to internalise environmental costs. This crowding-out effect emerges when companies face problems such as capital shortages, short-term profit pressure and intense market competition. These results have the following important implications.

The research highlights the need for enterprises to align digital transformation and sustainability strategies by strengthening resource endowment and optimising internal resource allocation. This requires effective use of digital technology and a long-term sustainability vision for heavily polluting firms facing environmental policy pressures.

Enterprises should assume more social responsibility and achieve sustainable socioeconomic development. It will also help mitigate the adverse environmental externalities stemming from their operations.

To the best of the authors’ knowledge, this study considers the impact of enterprise digital transformation on the internalisation level of enterprise environmental costs for the first time and uses enterprises’ financial, management, market characteristics and ownership characteristics to analyse the impact mechanism.

In the rapidly evolving business landscape, digital transformation is a fundamental strategy for ensuring competitive advantage and operational excellence. This chapter delves into the significance of digital transformation for small and medium enterprises (SMEs), focussing on its pivotal components and the specific context of Malaysian SMEs. Digital transformation is essential for SMEs to adapt to the market demands, improve customer experiences, and drive sustainable growth. The core components of digital transformation for SMEs include e-commerce integration and data analytics. These components facilitate streamlined operations, better decision-making, and improve market reach. Understanding the Malaysian SME landscape reveals a vibrant sector with diverse needs and growth potential. Digital transformation trends in Malaysia reflect a strong move towards adopting e-commerce solutions and leveraging data analytics to gain actionable insights. The chapter also examines government initiatives aimed at supporting SMEs through digital transformation, including funding programmes, training opportunities, and infrastructural improvements. The key components influencing Malaysian SMEs’ digital transformation process include the increasing importance of digital consumer engagement and the integration of digital tools into traditional business models. By aligning with these strategies and leveraging government support, Malaysian SMEs could significantly enhance the competitive edge of Malaysian SMEs, positioning them for long-term success in a digitally driven market. This chapter provides a comprehensive overview of these elements, offering valuable insights into how Malaysian SMEs can embrace and benefit from digital transformation.

The number of small and medium-sized manufacturing companies that have successfully embraced the digital transformation envisioned by the Fourth Industrial Revolution (Industry 4.0) remains low. This paper argues that one reason is the significant innovation required in manufacturing systems to undergo such a transformation. This innovation demands capabilities vastly different from those traditionally employed for continuous improvements in manufacturing systems. The conventional development of manufacturing systems emphasizes resilience, robustness, and efficiency, typically thriving in stable and predictable conditions. However, developing a manufacturing system under highly complex and unpredictable circumstances requires new capabilities. We term this “manufacturing innovation”. At this stage, learning from successful cases is a valuable step towards unifying scattered evidence and developing coherent knowledge of how SMEs successfully do manufacturing innovation in the context of Industry 4.0.

We conducted a multiple case study involving seven small and medium-sized Danish manufacturing companies to investigate successful manufacturing innovation in the context of Industry 4.0. Cross-case analysis identified four critical propositions regarding the capabilities contributing positively to manufacturing innovation.

The research findings highlight various capabilities for successful manufacturing innovation in the context of Industry 4.0. They suggest that such significant digital transformation of manufacturing systems begins with radical innovations in enabling processes rather than core processes. A flexible approach facilitates it, often operationalized through iterative methods. Moreover, the accumulation of knowledge from previous manufacturing innovation initiatives forms a foundational basis for strategically approaching Industry 4.0, suggesting that experience in manufacturing development generally enhances the capacity to adopt Industry 4.0 technologies effectively.

The results underscore the need for viewing digital transformation towards Industry 4.0 as a manufacturing innovation process, which relies on significantly different organizational capabilities than those supporting continuous manufacturing development. This insight has two implications for research in this domain; (1) Innovation process models must be developed to support radical systemic innovation, gradual learning and agile processes in manufacturing, and (2) Industry 4. 0 technologies enable new potential, but the actualization of this potential is dependent on organizational competences.

The findings also offer several practical implications. Identifying patterns of best practices provides much-needed inspiration and insight into how manufacturing innovation for Industry 4.0 may be approached. While we agree with studies showing that competencies are one of the biggest challenges for companies to get started, our results also suggest that by using a flexible approach, companies can build competencies gradually and as needed, which can yield the right results over time. Furthermore, the findings suggest that a specific starting point for manufacturing companies may be enabling processes rather than core processes. This new understanding of the types of solutions companies manage to progress with may suggest that the technologies here are more mature or that there is greater motivation to get started. This implication is supported by the result that a long-term strategy is needed, but that it must be operationalized into smaller solutions to avoid biting off more than they can chew initially. While other researchers have also pointed this out, we provide a deeper understanding of why it is necessary and how it can be operationalized.

The article is one of the first to make a qualitative study on multiple cases to understand how manufacturing companies successfully introduced manufacturing innovation for Industry 4.0.

The organizational digital transformation (ODT) in companies presents small and medium-sized enterprises (SMEs) – who remain at the beginning of this transformation – with the challenge of offering digital services based on sensor technologies. Against this backdrop, the present paper identifies ways SMEs can enable digital servitization through sensor technology and defines the possible scope of the organizational transformation process.

Around 21 semi-structured interviews were conducted with experts from different hierarchical levels across the German manufacturing SME ecosystem. Using the Gioia methodology, fields of action were identified by focusing on influencing factors and opportunities for developing these digital services to offer them successfully in the future.

The complexity of existing sensor offerings must be mastered, and employees' (data) understanding of the technology has increased. Knowledge gaps, which mainly relate to technical and organizational capabilities, must be overcome. The potential of sensor technology was considered on an individual, technical and organizational level. To enable the successful implementation of service offerings based on sensor technology, all relevant stakeholders in the ecosystem must network to facilitate shared value creation. This requires standardized technical and procedural adaptations and is an essential prerequisite for data mining.

Based on this study, current problem areas were analyzed, and potentials that create opportunities for offering digital sensor services to manufacturing SMEs were identified. The identified influencing factors form a conceptual framework that supports SMEs' future development of such services in a structured manner.