The driver of Industry 4.0 development: the key role of IT-service companies

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Intellias Global Limited

Institute of Industrial Economics of National Academy of Sciences of Ukraine

National Technical University of Ukraine “Igor Sikorsky Kyiv Polytechnic Institute”

Technical university “Metinvest Polytechnics” LLC

THE DRIVER OF INDUSTRY 4.0 DEVELOPMENT: THE KEY ROLE OF IT-SERVICE COMPANIES

REZNIKOV Roman

TURLAKOVA Svitlana

Annotation

The transition to Industry 4.0 signifies a transformative shift in manufacturing and industrial operations, driven by the convergence of advanced digital technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), digital twins, and smart automation. This fourth industrial revolution promises unprecedented improvements in operational efficiency, product quality, and overall productivity. However, the implementation of Industry 40 technologies is inherently complex, requiring significant expertise and coordination that many organizations lack internally. This article delves into the essential role of IT-service companies in enabling successful Industry 4.0 transformations. Through a comprehensive analysis of the service offerings and frameworks of seven leading IT-service providers--LTTS, Wipro, TCS, Cognizant, HCL Technologies, Accenture, and Capgemini-- it is illustrated how these companies leverage their extensive experience and structured methodologies to support businesses in navigating the intricacies of digital integration. Each of these companies has developed robust frameworks and specialized solutions that encompass various aspects of Industry 4.0, including smart manufacturing, real-time data analytics, IoT integration, digital twins, and autonomous systems. The detailed comparison reveals that these IT-service providers bring critical advantages to the table: their ability to anticipate and mitigate potential pitfalls, their partnerships with technology giants like SAP and AWS, and their comprehensive approach to integrating digital and physical systems. By analyzing successful case studies, it is demonstrated how these companies have consistently delivered high-quality outcomes, optimized production processes, and achieved significant economic benefits for their clients. Conversely, the article also examines the challenges faced by organizations that attempt to undertake Industry 4.0 transformations without external support. These challenges include the high costs and extended timelines associated with building in-house expertise, the risk of implementation failures due to a lack of experience, and the difficulty in managing the complex integration of diverse technologies. In conclusion, this article underscores the critical importance of engaging experienced IT-service providers for Industry 4.0 initiatives. Their structured frameworks, extensive knowledge, and proven methodologies not only streamline the implementation process but also ensure that organizations can fully realize the transformative potential of Industry 4.0 technologies. By leveraging the expertise of these top IT-service companies, businesses can navigate the complexities of digital transformation with greater confidence and achieve substantial, sustainable economic benefits.

Key words: Industry 4.0, digital transformation, IT-service companies, IoT, AI, smart manufacturing, digital twins, operational efficiency.

Анотація

industry service provider company

РЕЗНІКОВ Роман ТЗОВ «ІІТ «Intellias»

ІУРЛАКОВА Світлана Інститут економіки промисловості НАН України; Національний технічний університет України "Київський політехнічний інститут імені Ігоря Сікорського»; ТОВ «Технічний університет «Метінвест Політехніка»

ДРАЙВЕР РОЗВИТКУ ІНДУСТРІЇ 4.0: КЛЮЧОВА РОЛЬ IT-СЕРВІСНИХ КОМПАНІЙ

Перехід до Індустрії 4.0 означає трансформаційний зсув у виробничих та промислових операціях, зумовлений конвергенцією передових цифрових технологій, таких як Інтернет речей (IoT), штучний інтелект (AI), цифрові двійники та розумна автоматизація. Ця четверта промислова революція обіцяє безпрецедентні покращення в операційній ефективності, якості продукції та загальній продуктивності. Однак впровадження технологій Індустрії 4.0 є складним завданням, що вимагає значного досвіду та координації, яких багато організацій не мають внутрішньо. Ця стаття досліджує важливу роль ГГ-сервісних компаній у забезпеченні успішних трансформацій до Індустрії 4.0. Через всебічний аналіз пропозицій та структур семи провідних ІГ-сервісних провайдерів -- L.TTS, Wipro, TCS, Cognizant, HCL Technologies, Accenture та Capgemini -- ілюструється, як ці компанії використовують свій великий досвід та структуровані методології для підтримки бізнесу у навігації складнощами цифрової інтеграції. Кожна з цих компаній розробила надійні методики та спеціалізовані рішення, що охоплюють різні аспекти Індустрії 4.0, включаючи розумне виробництво, аналітику даних у реальному часі, інтеграцію IoT, цифрові двійники та автономні системи. Детальне порівняння показує, що ці ІГ-сервісні провайдери мають переваги: здатність передбачати та зменшувати потенційні ризики, їхні партнерства з технологічними гігантами, такими як SAP та AWS, а також їхній комплексний підхід до інтеграції цифрових та фізичних систем. Аналізуючи успішні кейси, демонструється, як ці компанії постійно забезпечують високоякісні результати, оптимізують виробничі процеси та досягають значних економічних вигод для своїх клієнтів. Навпаки, у статті також розглядаються виклики, з якими стикаються організації, що намагаються здійснити трансформації до Індустрії 4.0 без зовнішньої підтримки. Ці виклики включають високі витрати та подовжені терміни, пов'язані зі створенням внутрішнього досвіду, ризик невдач впровадження через відсутність досвіду та складнощі в управлінні інтеграцією різноманітних технологій. На завершення, ця стаття підкреслює критичну важливість залучення досвідчених ІГ-сервісних провайдерів для ініціатив Індустрії 4.0. Їхні структуровані рамки, значні знання та перевірені методології не лише спрощують процес впровадження, але й забезпечують, що організації можуть повністю реалізувати трансформаційний потенціал технологій Індустрії 4.0. Використовуючи досвід цих провідних ІГсервісних компаній, бізнеси можуть впевненіше орієнтуватися у складнощах цифрової трансформації' та досягати значних, сталих економічних вигод.

Ключові слова: Індустрія 4.0, цифрова трансформація, ІТ-сервісні компанії, IoT, AI, розумне виробництво, цифрові двійники, операційна ефективність

INTRODUCTION

The contemporary profound transformations of the global economy and society signify the onset of the fourth industrial revolution, characterized by the advancement of smart industry. Smart industry embodies a new paradigm of industrial development, emerging from the integration of digitalization, automation, and innovation within the manufacturing sector. These processes enhance production efficiency, competitiveness, and environmental sustainability, while also fostering the creation of new products and services that align with the needs and expectations of modern society [1]. In [2] smart industry is defined as a cyber-physical industry, the elements of which are interconnected in a network space (IoT) and controlled by AI using a digital twin system (integration of digital technology into industrial value chains). Indeed, the intellectualization or smartization of production and the integration of digital technologies into industrial value chains are considered key factors of the Fourth Industrial Revolution, which is transforming the conditions and rules of the global economy. The advent of Industry 4.0 marks a transformative era for manufacturing and industrial sectors, characterized by the integration of advanced digital technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), digital twins, and smart automation. This fourth industrial revolution promises significant improvements in operational efficiency, product quality, and overall productivity. However, the implementation of advanced Industry 4.0 technologies in many enterprises, including Ukrainian ones, is still in its early stages [4, 5].The complexity of implementing Industry 4.0 technologies presents considerable challenges for many organizations. IT-service companies play a pivotal role in facilitating these transformations. With their extensive experience and structured frameworks, these companies offer the necessary expertise to navigate the intricacies of digital integration. Leading IT-service providers, such as LTTS, Wipro, TCS, Cognizant, HCL Technologies, Accenture, and Capgemini, have developed comprehensive methodologies and robust solutions to support businesses in their Industry 4.0 journey. This article explores the critical role of IT-service companies in driving Industry 4.0 transformations. By analyzing the offerings and frameworks of seven industry leaders, article illustrates how their extensive experience, technological prowess, and strategic partnerships contribute to successful digital transformations. Article also highlight the potential challenges faced by organizations attempting to undertake these complex projects independently, underscoring the value of engaging experienced IT-service providers. Through a comparative analysis, it is demonstrated that the structured approaches of these companies not only streamline implementation but also ensure high-quality outcomes and significant economic benefits.

THEORETICAL BACKGROUND OF THE RESEARCH

Industry 4.0, or the Fourth Industrial Revolution, represents a transformative approach to manufacturing and industrial processes through the integration of advanced technologies. Key technologies underpinning Industry 4.0 include the Internet of Things (IoT), artificial intelligence (AI), machine learning, big data, robotics, and automation. These technologies collectively enhance operational efficiency, productivity, and flexibility in manufacturing and service sectors. Industry 4.0 aims to provide a significant improvement in cost-effectiveness. For instance, conceptual guidelines for optimizing costs in energy sector enterprises through systematic, informational, and project-based approaches are highly relevant to Industry 4.0 [1]. The focus on real-time data analysis, integration of advanced tools like WSJF and Six Sigma, and the goal of operational efficiency and sustainability align with the core principles of Industry 4.0. Another study focuses on key factors for selecting cost optimization projects and the plan to establish a PMO for better project coordination, which aligns well with Industry 4.0 principles. By integrating smart decision-making, real-time monitoring, and advanced data analytics, enterprises in the energy sector can enhance their cost optimization efforts [3, 7]. Additionally, research on the integration of reflexive management of herd behavior provides a solid foundation for Industry 4.0, offering a powerful approach to managing collective behavior within enterprises [8]. The transition of Ukrainian enterprises to a market economy requires flexibility, responsiveness, and continuous development, which are all key principles of Industry 4.0 [9]. A comprehensive investigation into the state, trends, and key drivers of the data integration services market analyzes the impact of Industry 4.0. It identifies the strategies of leading market players and outlines possible development scenarios for companies within this market [10-11]. The Internet of Things (IoT) and artificial intelligence (AI) play crucial roles in Industry 4.0 by enabling smart factories and predictive maintenance. IoT allows for seamless communication between devices and systems, while AI provides the capability to analyze large datasets and make informed decisions in real-time [12]. Big data and machine learning are fundamental to the analytical capabilities of Industry 4.0. These technologies facilitate the processing and analysis of vast amounts of data generated by industrial operations, leading to insights that drive efficiency and innovation [12, 13]. Cloud computing and edge computing technologies support Industry 4.0 by providing scalable computing resources and enabling real-time data processing closer to the data source. Cloud computing offers centralized data storage and analysis, while edge computing allows for decentralized processing, reducing latency and enhancing responsiveness [14]. IT-service companies play a vital role in implementing Industry 4.0 solutions by providing technological expertise, infrastructure, and innovation. Blue Bird, a leading transportation service company in Indonesia, illustrates the transition IT-service companies undergo to adapt to Industry 4.0. By evolving their IT roles from support to strategic functions, they have managed to survive and thrive amidst disruptive innovations such as online transportation services. In Central and Eastern Europe, the growth of ICT services has been pivotal in improving these regions' positions in global production linkages. This transition highlights the significant role IT-service companies play in enhancing regional competitiveness and technological capabilities [16].

While the existing literature provides a comprehensive understanding of Industry 4.0 concepts and technologies, there are several gaps that need further exploration, particularly concerning the role of IT-service companies in driving Industry 4.0. Also, there are missing analzys of case studies of how IT-service companies help their clients with digital transformation and implementation of Industry 4.0 principles. By addressing these gaps, future research can provide a more detailed understanding of how IT-service companies can drive the progress of Industry 4.0, thereby offering valuable insights for both academia and industry practitioners. The goal of the article is to highlight the essential role of IT-service companies in facilitating successful Industry 4.0 transformations.

To explore how IT service companies helping their customers to progress with Industry 4.0 it will be used market assessment performed by Everest group [17]. Based on this assessment it was identified 7 major market leaders LTTS, Wipro, TCS, Cognizant, HCL Technologies, Accenture, Capgemini. In scope of this research it will be analyzed offerings and cases proposed by these companies to their customers.

Starting with the leader of this group Capgemini, analyzing their experience with Industry 4.0 [18] it was remarkable that Capgemini has developed it is own Industry 4.0 framework. The Capgemini Consulting Industry 4.0 Framework is meticulously designed to guide manufacturing companies in adopting Industry 4.0 technologies. It emphasizes the integration of the physical and digital worlds, focusing on leveraging digital technologies to enhance business models, operations, and customer value. The framework delineates key building blocks, including developing a vision and transformation roadmap, understanding core value drivers, and achieving corporate transformation. It provides a comprehensive structure, offering a detailed approach to understanding and implementing Industry 4.0, addressing both technological and organizational aspects. The framework underscores the importance of leveraging digital technologies to drive operational efficiency, innovation, and the creation of new business models. Despite its thorough nature, the framework might lack specific, actionable steps for companies at various stages of Industry 4.0 adoption. Additionally, it could benefit from more tailored guidance for different manufacturing sectors, each with unique challenges and requirements. While offering valuable guidance for manufacturing companies navigating the complexities of Industry 4.0, it may require adaptation and additional detail to address specific industry needs and practical implementation challenges. Capgemini's Industry 4.0 offerings focus on four main areas: Smart Solutions, Smart Innovations, Smart Factory, and Smart Supply Chains. Smart Solutions leverage digital technologies to enhance customer value by providing innovative products and services, integrating digital capabilities into existing products to create new business models. Smart Innovations drive product and service innovation, fostering collaboration and enabling the creation of new, innovative solutions. The Smart Factory concept emphasizes the use of advanced technologies like IoT, robotics, and analytics to create highly efficient, flexible, and automated manufacturing processes, aiming to improve operational efficiencies and reduce costs. Smart Supply Chains enhance visibility, control, and efficiency in supply chain operations through real-time data analytics and automation to optimize performance [18]. The assessment of these offerings reveals that Smart Solutions and Smart Innovations are robust in fostering innovation and customer-centric improvements. They emphasize creating new business models and integrating digital capabilities into products, ensuring that companies remain competitive and can offer enhanced value to customers. The Smart Factory addresses core operational efficiencies in manufacturing, focusing on automation, real-time data analytics, and integrating IoT and robotics, significantly reducing costs and improving flexibility. Smart Supply Chains are crucial for modern manufacturing, focusing on real-time data and automation to optimize performance, improving the responsiveness and efficiency of supply chains, which is increasingly important in a globalized market. However, the complexity of implementing such advanced technologies can be daunting for many companies. Clear, step-by-step guidance and support during the implementation phase are crucial but might be underemphasized. Furthermore, the solutions may need more customization to cater to specific industry needs, as different manufacturing sectors have unique challenges that require tailored approaches. While Capgemini's offerings are well-structured to help manufacturing companies transition into Industry 4.0, there is a need for more detailed implementation support and industry-specific customization to address unique challenges.

Wipro's offerings for Industry 4.0 are encapsulated within their S.M.A.R.T. (Sustainable, Modular, Agile, Responsive, and Transformative) framework [19]. This framework integrates both digital and physical automation to enhance productivity, flexibility, resilience, and sustainability for manufacturing companies. Their strategic consulting services help manufacturers define and implement their Industry 4.0 initiatives, including intelligent physical automation solutions designed to streamline operations and increase efficiency. Wipro emphasizes the convergence of Operational Technology (OT) and Information Technology (IT) to create a more integrated and responsive manufacturing environment, enabling real-time decision-making and enhancing operational agility. The company offers comprehensive digital transformation services focusing on the digitalization of manufacturing processes [20]. This includes the use of advanced analytics to provide insights and improve decision-making across the value chain. By leveraging real-time data analytics, Wipro helps manufacturers optimize their operations, reduce downtime, and increase overall efficiency, supporting more informed and agile business decisions. Wipro's solutions cater to a wide range of industries, including automotive, consumer packaged goods, food and beverage, high-tech, industrial, oil and gas, metals, chemicals, healthcare, and pharmaceuticals, ensuring their offerings are tailored to the specific needs of different sectors. Wipro's S.M.A.R.T. Manufacturing framework has been implemented in over 2,000 automation solutions, with 250-plus turnkey line setups and the development of over 100 intellectual properties and solutions. Their team of 11,000 industry experts has collaborated with more than 50 global companies to transform their manufacturing processes [21]. In comparison, Capgemini's Industry 4.0 offerings focus on four key areas: Smart Solutions, Smart Innovations, Smart Factory, and Smart Supply Chains. Capgemini aims to enhance operational efficiencies and innovation through digital technologies, leading to new business models and service offerings. They emphasize the need for a comprehensive corporate transformation to leverage Industry 4.0 value drivers, including digital infrastructure, governance, and new capabilities for employees. Overall, both Wipro and Capgemini offer robust Industry 4.0 solutions. Still, Wipro's S.M.A.R.T. framework stands out for its emphasis on the convergence of digital and physical automation, real-time data analytics, and broad industry applicability. Capgemini, on the other hand, focuses more on driving operational efficiencies and innovation through structured corporate transformation and new business models. Wipro also has developed its own framework, SDI (Smart, Digital, Intelligent). Wipro's Smart, Digital, and Intelligent (SDI) Framework addresses the challenges enterprises face in scaling Industry 4.0 initiatives. The SDI Framework integrates advanced technologies and processes to create value across industries by providing a comprehensive and scalable methodology for Industry 4.0 adoption. Wipro's SDI Framework provides a clear, scalable, and effective methodology for enterprises to navigate their Industry 4.0 journey. By addressing key challenges and integrating advanced technologies and processes, SDI enables enterprises to realize significant efficiency, flexibility, productivity, and quality improvements, ensuring long-term value creation and competitiveness in the evolving industrial landscape [19], [21]. Wipro and Capgemini offer distinct yet complementary approaches to Industry 4.0, each with its unique strengths and focus areas. Wipro emphasizes a holistic approach with real-time data analytics and the integration of Operational Technology (OT) and Information Technology (IT). Their S.M.A.R.T. framework is designed for seamless orchestration across various manufacturing processes, ensuring that digital and physical systems work in harmony to optimize efficiency and productivity. Capgemini, on the other hand, focuses on creating new business models through smart innovations and solutions. Their framework emphasizes corporate transformation and leveraging digital technologies to enhance operational efficiency. This approach is geared towards driving innovation and enabling businesses to develop new, competitive business models that can adapt to the changing market landscape. Technologically, Wipro has a strong emphasis on real-time data analytics, the Internet of Things (IoT), artificial intelligence (AI), and digital twins. Their focus on dynamic decision-making and optimizing operational agility is designed to help businesses respond swiftly to market changes and operational challenges. Capgemini's technological focus also includes automation, IoT, advanced analytics, and smart factory solutions. Their approach integrates innovation with digital transformation to drive new business models, aiming to combine efficiency with cutting-edge technological advancements. In terms of customer value, Wipro aims to enhance productivity, flexibility, and sustainability across various industries. Their offerings are tailored to meet specific industry needs, with a strong focus on providing real-time insights and agile operations. This industry-specific customization ensures that Wipro's solutions are relevant and effective in addressing the unique challenges faced by different sectors. Capgemini prioritizes smart solutions and innovations to drive operational efficiencies and new business models. Their goal is to enhance customer value and create competitive advantages through digital transformation. By focusing on both operational improvements and innovative solutions, Capgemini aims to provide a comprehensive package that addresses the needs of modern businesses.