The Industry 4.0 paradox
Industry 4.0 has been at the top of many company agendas for the last several years. The seemingly limitless opportunity—and seemingly limitless technology investments options—can provide executives with a complex quandary as they decide where and how to implement change.
A recent Deloitte survey revealed that while companies are enthusiastic and have ambitious plans for future investment, a series of disconnects—or paradoxes—exist between their plans and actions.
In this report we explore:
- The strategy paradox. Ninety-four percent of respondents indicated that digital transformation is a top strategic objective—but only 68 percent see it as an avenue for profitability. Are they exploring the full realm of strategic possibilities?
- The supply chain paradox. The supply chain is identified as a top area for digital transformation investments—but the supply chain executives who direct the actual day-to-day business operations do not appear to have a voice in investment decisions. Are the best choices being made?
- The talent paradox. Executives report feeling quite confident that they have the right talent in place to support digital transformations—but, at the same time they say finding, training, and retaining the right talent is their top organizational and cultural challenge. Is the talent there?
- The innovation paradox. The survey found that digital transformation initiatives are often driven by productivity improvement and operational goals rather than truly transformative opportunities. However, organizations driven by other factors, such as innovation and internal strategy focus, reported equally positive return on investment. Are some companies discounting innovative opportunities?