Industry 4.0 and Organisations: Key Organisational Capabilities

• Published in: Responsible AI and Analytics for an Ethical and Inclusive Digitized Society Vol. 12896; pp. 423 - 438
• Main Authors: Smuts, Stefan, van der Merwe, Alta, Smuts, Hanlie
• Format: Book Chapter
• Language: English
• Published: Switzerland Springer International Publishing AG 2021; Springer International Publishing
• Series: Lecture Notes in Computer Science
• Subjects: Dynamic capabilities; Industry 4.0; Organisational capabilities
• ISBN: 9783030854461; 3030854469
• ISSN: 0302-9743; 1611-3349
• DOI: 10.1007/978-3-030-85447-8_36

The fast-paced evolution of digital technologies, termed the fourth industrial revolution (4IR), influences organisations to realise digital technology potential from a holistic point of view. In this context, organisational competitiveness relies on whether organisations’ business value-creation capabilities are adaptable and flexible. The purpose of this study was to consider the 4IR key organisational capabilities that organisations require to ensure sustainability and to create business value. We identified 14 4IR organisational capabilities and operationalised these capabilities by mapping them to the dynamic capabilities sensing (strategic leadership, external drivers, data value), seizing (decision-making, technology features, software services and solutions) and transforming (business model, process optimisation, product efficacy, organisation, customer) as defined by Teece. Three 4IR organisational capabilities, namely employees, skills and expertise, as well as communication, are relevant across all three dynamic capabilities. By applying the 4IR organisational capabilities, organisations will be able to consider the end-to-end impact of 4IR on them and to address action plans to sustain value, or to create new business value.