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Application of Porter’s Value Chain Model for Construing Potential Prospects and Lacunas in Industry 4.0 Adoption by 21st Century Manufacturers

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Advances in Manufacturing, Production Management and Process Control (AHFE 2021)

Part of the book series: Lecture Notes in Networks and Systems ((LNNS,volume 274))

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Abstract

Manufacturing firms are lately experiencing a paradigm shift from mass production to customized production. As such, it becomes more pertinent for industrial entities to engage digital and intelligent systems of manufacturing. Industry 4.0, also known as the Fourth Industrial Revolution (4IR), is spurred by integrating digital technologies. This is embedded within an interoperable global value chain that guarantees sustainable operational efficiency and value optimization. This paper presents a review evaluating the potential opportunities and threats manufacturing firms experience with adopting the 4IR and the implication on value chains. An extensive literature review was conducted by analyzing accredited resources, using peer-reviewed articles, industry reports, and validated information obtainable in global repositories. The study generated a better understudying of Industry 4.0 technology adoption and their underlying impact (favorable and non-favorable) on industrial value chains. Significant findings reveal that the practice of industry 4.0 has a significant effect on organization cost, material resources, processes, products, systems, humans, and business models in manufacturing firms. The findings indicate that the impact of Industry 4.0 on manufacturing firms be studied holistically as against localized study of enterprises and country. As such, global views with inter-country economic peculiarities and realities must be considered.

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Authors and Affiliations

  1. Faculty of Engineering and the Built Environment, University of Johannesburg, Johannesburg, Republic of South Africa

    Makinde Oluwafemi Ajayi

  2. Mechanical and Industrial Engineering Tech Department, University of Johannesburg, Johannesburg, Republic of South Africa

    Opeyeolu Timothy Laseinde

Authors
  1. Makinde Oluwafemi Ajayi
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  2. Opeyeolu Timothy Laseinde
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Corresponding author

Correspondence to Makinde Oluwafemi Ajayi .

Editor information

Editors and Affiliations

  1. Poznan University of Technology, Poznan, Poland

    Stefan Trzcielinski

  2. Faculty of Engineering Management, Poznan University, Poznan, Poland

    Beata Mrugalska

  3. University of Central Florida, Cocoa Beach, FL, USA

    Waldemar Karwowski

  4. Lincoln School of Design, University of Lincoln, LINCOLN, UK

    Emilio Rossi

  5. Department of Architecture, University of Chieti-Pescara, Pescara, Pescara, Italy

    Massimo Di Nicolantonio

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Ajayi, M.O., Laseinde, O.T. (2021). Application of Porter’s Value Chain Model for Construing Potential Prospects and Lacunas in Industry 4.0 Adoption by 21st Century Manufacturers. In: Trzcielinski, S., Mrugalska, B., Karwowski, W., Rossi, E., Di Nicolantonio, M. (eds) Advances in Manufacturing, Production Management and Process Control. AHFE 2021. Lecture Notes in Networks and Systems, vol 274. Springer, Cham. https://doi.org/10.1007/978-3-030-80462-6_44

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  • DOI: https://doi.org/10.1007/978-3-030-80462-6_44

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-80461-9

  • Online ISBN: 978-3-030-80462-6

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