Digitization and its impact on production in manufacturing companies

Purpose – The purpose of the study is to investigate the conditions required for digitization of production in manufacturing companies. To investigate this, the purpose has been divided into three research questions and the investigation has been carried out on a case company in Småland. The aim is to contribute theoretically and empirically to research and development towards industry 4.0, which in turn forms the basis for the work with focus on digitization. Method – The authors have used several methods to answer the research questions. The methods used are literature study and a case study. The case study means that empirical data has been collected on a case company using observations, interviews and a document study. Since the study is only performed on a case company, the external validity can be considered low, however, the authors have analysed and compared collected empirical data with the theoretical framework, which strengthens the external validity. Since several different methods have been used, a triangulation of data has been possible, which increases the credibility of the study. The study has consisted of an inductive approach where the analysis is based on the empirical data. Findings – Based on theoretical framework, empirical data and the study's analysis, the authors have come up with a result that partially corresponds to the theory but differs in that individual processes can be digitized without all the theoretical requirements identified being fulfilled. This has resulted in a theoretical model that the authors have developed and named as the change model. The model describes three aspects that are interdependent to succeed with a change towards industry 4.0. The aspects are prerequisites, digitization and human resources, which are cyclically dependent on each other. Implications – The study's theoretical contribution is based on organizations' difficulties regarding how digitalization should be applied, where leaders in manufacturing companies are aware that digitization is an important success factor for developing companies, but only a small proportion have begun development. The model will help organizations and leaders understand which parts are important to consider when digitizing. The ArBe-model will help to develop an understanding of digital changes and is related to the empirical study. As the different aspects of the model are cyclically dependent on each other, organizations can choose to start a change in the aspect that is best suited for their organization. The model should be used as a tool to get started with digitization. Limitations – The study is limited to studying possible digitalization in production and does not consider any economic aspects or choice of computer system. Only data from observations had been desirable, but the authors used a document study to be able to use production data from different periods during the year and produce a more generalizable result