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Institute
Understanding the Organizational Impact of Robotic Process Automation: A Socio-Technical Perspective
(2022)
Interest in AI-driven automation software is growing constantly across
all industries, as these technologies enable companies to almost automate administrative processes completely and significantly increase operational efficiency.
However, many implementation attempts fail due to a lack of understanding of how these technologies affect the various socio-technical aspects that are intertwined in an organisation. This leads to a widening gap between value propositions of automation software and the ability of companies to exploit them. For long-term
success, collaboration between humans and software robots in the organization must be optimised. Therefore, the social, technical, and organizational impact of Robotic Process Automation was investigated. Following a socio-technical systems approach, a model was developed and validated in a use case of a company in the mechanical engineering sector. Knowing the influencing factors before launching large-scale automation initiatives will help practitioners to better exploit
efficiency potentials and increase the long-term success.
Generation of a Data Model For Quotation Costing Of Make To Order Manufacturers From Case Studies
(2022)
For contract or make to order manufacturers, quotation costing is a complex process that is mainly performed based on experience. Due to the high diversity of the product range of these mostly small or medium-sized companies (SMEs) and the poor data situation at the time of quotation preparation, the quality of the calculation is subject to strong variations and uncertainties. The gap between the initial quotation costing and the actual costs to be spent (pre- and post-calculation) is crucial to the existence of SMEs. Digitalization in general can help companies to get a better understanding of processes and to generate data. For improving these processes, an understanding of the important data for that specific process is crucial. Accurate quotation costing for customized products is time-consuming and resource-intensive, as there is a lack of an overview of data to be used within the process. This paper therefore derives a data model for supporting quotation costing in the company, based on literature-based costing procedures and recorded case studies for quotation and calculation. Based on the results, SMEs will have a first overview of the needed data for quotation costing to optimize their calculation process.
Augmented reality seems to offer great potential benefits in the field of industrial services. However, the question of the exact benefits, both monetary and qualitative, is difficult to evaluate, as is the case with IT investments in gen-eral. Within the framework of the DM4AR research project, an evaluation model was therefore developed. Based on group discussions and interviews on potential AR use cases, a list of monetary and qualitative benefits was compiled to form the basis for selecting suitable evaluation modules in the existing literature. These include an impact chain analysis in the form of a strategy map, a monetary eval-uation as a calculation of the return on investment, based on the assumptions of the use case as well as existing studies, and a qualitative evaluation in the form of a utility analysis. The outcome is an evaluation model in the form of a multi-perspective approach that considers the impact of AR in the four perspectives of the balanced scorecard (financial, customer, internal business processes, learning and growth). The results of the qualitative and monetary evaluation can be sum-marized in a 2D matrix to support decision-making.
Manufacturing companies (MFRs) are increasingly extending their
portfolios with services and data-driven services (DDS) to differentiate themselves from competitors, tap new revenue potential, and gain competitive advantages through digitization and the subsequently generated data. Nonetheless, DDS fail more often than traditional industrial services and products within the first year on the market. Particularly, companies are failing to sell DDS successfully and efficiently with their existing (multi-level) distribution structures. Surprisingly, there is a lack of scientific research addressing this issue. Since there are currently no holistic models for an end-to-end description of distribution-tasks for DDS in the manufacturing industry, this paper contributes to a task-oriented reference model for mapping interactions in the multi-level distribution management. Therefore, a case study research approach is used, to identify and describe the interactions in the multi-level distribution management of DDS, as well as to develop a regulatory framework for MFRs and their multi-level distribution management. This research uses the established theoretical framework of Service-Dominant-Logic to address the co-creation in multi-level distribution management of DDS. As a result, this paper identifies different interaction variants as well as the need for a new management function with 4 main and 14 basic tasks.
Ongoing digitalization and Industry 4.0 enable the development of new business models due to the increase in available data and digital connected products. A promising business model type for the machinery and plant engineering industry are subscription models, consisting of products and services offered in return for continuous payments. However, subscription-based business models are associated with extensive changes in the traditional machinery and plant engineering industry, in particular, for small and medium-sized companies (SMEs). Established concepts for the development of value propositions and business models neglect important aspects, such as the integrated development and optimization of products and services across the entire life cycle or the data infrastructure. This paper presents a concept for a methodology to support SMEs developing value propositions within subscription models. Therefore, the systematic identification of customer benefits, the determination and prioritization of subscription relevant functionalities as well as the design of product and service elements addressing those functionalities are the main aspects on which the focus is placed on. The result is a subscription value proposition canvas for SMEs to address the impact of subscription models on products and services.
More and more manufacturing companies are starting to transform the transaction-based business model into a customer value-based subscription business to monetize the potential of digitization in times of saturated markets. However, historically evolved, linear acquisition processes, focusing the transactionoriented product sales, prevent this development substantially. Elemental features of the subscription business such as recurring payments, short-term release cycles, data-driven learning, and a focus on customer success are not considered in this approach. Since existing transactional-driven acquisition approaches are not successfully applicable to the subscription business, a systematic approach to an acquisition cycle of the subscription business in the manufacturing industry is presented, aiming at a long-term participative business. Applying a grounded theory approach, a task-oriented model for themanufacturing industry was developed.
The model consisting of five main tasks and 14 basis tasks serves as best practice to support manufacturing companies in adapting or redesigning acquisition activities for their subscription business models.
Electricity generated by wind turbines (WT) is a mainstay of the transition to renewable energy. In order to economically utilize WT is, operating and maintenance costs, which account for 25% of total electricity generation costs in onshore WT’s, are a focus of cost reduction activities. Implementing a data-driven prescriptive maintenance approach is one way to achieve this. So far, various approaches for prescriptive maintenance for onshore WT’s have been suggested.
However, little research has addressed the practical implementation considering sociotechnical aspects. The aim of this paper is therefore to identify success factors for the successful implementation of such a maintenance strategy with clear and holistic guidance on how existing knowledge on prescriptive maintenance from science can be transferred to business practice. These recommendations are developed through case study research and classified in the four structural areas of Acatech’s Industry 4.0 Maturity Index: Resources, Information Systems, Organizational Structure and Culture.
The successful use of Business Analytics is increasingly becoming a differentiating competitive factor. The ability to extract data-driven insights and integrate them into decision-making is becoming growingly important. The underlying technologies are evolving exponentially, the value proposition differs from simple descriptive applications to automated decision-making. Existing approaches found in literature and practice to classify those levels only insufficiently mark down the boundaries between the different technology levels. As a consequence, it is often unclear which characteristics of the technology interact with the working environment, which can be described as a socio-technical system. Using a systematic literature review, this paper identifies the characteristics of Business Analytics and delineates three types of Business Analytics based on case studies. Thus, a starting point for the socio-technical system design and optimization for the use of Business Analytics is created.
Competitive differentiation in the manufacturing sector is no longer based on product and service innovations alone but on the ability to monetize the usage phase of products and services. To this end, manufacturers are increasingly looking at so-called subscription business models as a way of supplementing the traditional sale of products and services. Since supplier success in the subscription business is directly dependent on customer success, the setup and expansion of a so-called Customer Success Management (CSM) is required. While CSM has already been established in the software industry for several years, companies in the manufacturing sector are often still in the conceptual phase of a CSM, parallel to the setup and expansion of their subscription business. Therefore, this paper aims to support the set-up of a CSM by providing a reference data model, based on case study research, that can be used to support the organizational or daily CSM tasks and to serve as a blueprint for conceptualizing CSM-specific IT systems.
The use of chatbots has hardly been established in B2B companies to date and involves various challenges. The goal of this paper is to identify the biggest barriers to the successful implementation of chatbots in B2B customer service and to develop measures to overcome them. The barriers are identified by conducting expert interviews within the framework of Eisenhardt's case study research. These are examined through a socio-technical analysis focusing on people, technology, and organization. By means of systematic literature research and in-depth interviews with German chatbot providers and customers of chatbots, measures for overcoming the barriers are identified. Using interviews with experts from German chatbot providers, the responsible stakeholders of each measure according to the RASCI Responsibility Matrix are determined. A total of 46 implementation barriers and 100 measures to overcome these barriers are identified. The study shows that there are major barriers in the areas of people, technology, and organization of a socio-technical system that can cause the implementation of a chatbot to fail. A holistic view is therefore essential. The results provide firms with a guideline on how to overcome potential barriers during chatbot implementation in B2B customer service.
Forecasting-based skills management, which is oriented to the respective corporate goals, is gaining enormous importance as a central management tool. The aim is to predict future skills requirements and match them with existing interorganizational skills. Companies are required to anticipate changes in markets, industries, and technologies at an early stage as well as to identify changes in job profiles within an occupational profile by tapping into and evaluating various data sources. Based on these findings, they can then make informed decisions regarding skill gaps, for example, to implement targeted further training measures. Forecasting-based skills management offers the opportunity to optimally qualify employees for constantly changing tasks. At the same time, however, the targeted development of such skills requires a high level of time, financial and personnel resources, which small and medium-sized enterprises (SMEs) generally do not have at their disposal. In addition, many SMEs are not yet aware of the importance of this issue. Within the framework of research and industrial projects of the Smart Work department at the FIR (Institute for Industrial Management) at the RWTH Aachen University, an AI-based skills forecasting tool will be developed. The goal of the paper is to conceptualize the future machine learning method, that is able to generate individualized skills forecasts and recommendations for SMEs. This is achieved by linking societal forecasts and sector trends with company-specific conditions and skills. In order to generate a corresponding database, the derivation system is made available to various companies (large companies and SMEs) in order to obtain as many data sets as possible. The data sets obtained via the derivation system are then used as training data sets for the machine learning method, with the help of which an automatic derivation of competencies depending on new trends is to be made possible.
Digitization is constantly affecting the working world and is of enormous interest in many fields of science. But to what extent are innovative technologies actually being applied in regional SMEs and what are the obstacles to their introduction? From a psychological point of view, it is essential to consider the employee's health and the effects of innovative technologies on their everyday work. The aim of using innovative technologies should not be to completely replace human labor or to dequalify employees, but to relieve the workforce and free up working time for more meaningful activities. One concept that should be included in the human-centered design of human-machine interaction in artificial intelligence is the HAI-MMI concept (Huchler, 2020), which offers starting points for high-quality collaboration at various levels. To reduce the gap between science and industry, this paper focuses on the actual demands of SME in the Aachen region in Germany referring to a requirements analysis within the research project AKzentE4.0 (N = 50 SME) and discusses how appropriate innovative technologies of the Industry 4.0 and AI can be implemented and deployed in a human-centred way. Moreover, the establishment of a Human Factors Competence Center for Employment in Industry 4.0 is outlined, which is meant to be used for the dissemination of research results from the project and should narrow the gap between science and industry in the long run.
For developing a European industrial cooperation and involvement in the furniture industry, the international research project INEDIT conducted a survey for furniture customers. By finding out the needs and wishes of the customer regarding innovative products and the production process the project will establish a new way for designing and producing furniture. Within INEDIT a platform is built on which customized, technologically innovative and sustainable furniture can be created and produced in a co-creation process. The furniture industry should thus become significantly more flexible, transparent and sustainable. Following the "do-it-together" approach, a business ecosystem will be generated which creates added value not only for customers but also for designers, suppliers and manufacturing companies. In order to involve the customer even more actively in the design process and the production, the platform will provide access to a mix of digital and physical services and is linked to all other stakeholders in the value chain. To match the platform and the process to the needs, wishes and demands of the customer an anonymous survey with 300 participants was developed and conducted. By analyzing the survey, important factors were found for buying and for using furniture considering new technological inventions (e.g. 3D-printing or smart objects), sustainability of the products and the production process. Furthermore, the potential customer-group and their usage of the do-it-together process and additional activities can be tightened.
Systematisation Approach
(2023)
Current megatrends such as globalisation and digitalisation are increasing complexity, making systems for well-founded and short-term decision support indispensable. A necessary condition for reliable decision-making is high data quality. In practice, it is repeatedly shown that data quality is insufficient, especially in master and transaction data. Moreover, upcoming approaches for data-based decisions consistently raise the required level of data quality. Hence, the importance of handling insufficient data quality is currently and will remain elementary. Since the literature does not systematically consider the possibilities in the case of insufficient data quality, this paper presents a general model and systematic approach for handling those cases in real-world scenarios. The model developed here presents the various possibilities of handling insufficient data quality in a process-based approach as a framework for decision support. The individual aspects of the model are examined in more detail along the process chain from data acquisition to final data processing. Subsequently, the systematic approach is applied and contextualised for production planning and supply chain event management, respectively. Due to their general validity, the results enable companies to manage insufficient data quality systematically.
Objectives and Key Results (OKR) is an approach that focuses on the company's goals through trust-based agreements between leaders and employees. With the OKR framework in its original form, strategic business goals are aligned with the employees' active involvement, which promotes intrinsic motivation, transparency, commitment, and alignment. Inspired by the successes at Google and Intel and shaped by its use in the tech industry, the use of OKR increased across industries. Although companies within all sectors use the OKR framework, numerous implementation efforts fail. The challenges of practitioners are not fully addressed in the development of implementation concepts for OKR. One main reason is that these challenges are not taken into account in scientific publications. The paper aims to investigate to what extent existing OKR frameworks need to be adapted to provide companies with suiting implementation guidance. Firstly, OKR is placed in the context of academically widely discussed Performance Management Systems (PMS).
Secondly, criteria for successful PMS implementation are identified and used as a baseline for analyzing existing OKR implementation concepts. A systematic literature review shows the current state of research, identifying existing OKR implementation concepts from practice and theory. The OKR implementation concepts identified are systematically mapped to the series of identified criteria for PMS implementation. It is shown that the existing OKR frameworks do not address the described criteria necessary for a successful implementation of PMS, thus the adaptation of existing OKR implementation concepts is required.
The quarrying industry, which largely consists of less digitized SMEs, is an integral part of the German economy. More than 95% of the primary raw materials produced are used by the domestic construction industry. Quarrying companies operate demand-oriented with short planning horizons at several locations simultaneously. Due to the low level of digitization and the reluctance to share data, untapped efficiency potential in data-based demand forecasting and capacity planning arises. The situation is aggravated by the fact that SMEs have a heterogeneous mobile machinery so as not to become dependent on individual suppliers, and that transport distances of over 50 kilometers are uneconomical due to high transport costs and low material values. Within the research project PROmining a data-centric platform which improves demand forecast accuracy and multi-site capacity utilization is developed. One of the core functionalities of this platform is an industry-specific demand forecasting model. Against this background, this paper presents a methodology for establishing this forecasting model. To this end, expected demands of secondary industry sectors will be analyzed to improve mid-term volume-forecasting accuracy for the local quarrying industry. The data-centric platform will connect demand forecasting data with relevant key performance indicators of multi-site asset utilization. Following this methodology, operational planning horizons can be extended while significantly improving overall production efficiency. Thus, quarrying businesses are enabled to respond to fluctuating demand volumes effectively and can increase their personnel and machine utilization across multiple quarry sites.
The use of Business Analytics (BA) helps to improve the quality of decisions and reduces reaction latencies, especially in uncertain and volatile market situations. This expectation leads a continuously rising number of companies to make large investments in BA. The successful use of Business Analytics is increasingly becoming a differentiator. At the same time, the use of BA is not trivial, rather, it is subject to high socio-technical requirements. If these are not addressed, high risks arise that stand in the way of successful use. In particular, it is important to consider the risks in relation to the different types of BA in a differentiated way. So far, there is a lack of suitable approaches in the literature to consider these type-specific risks with regard to the socio-technical dimensions: people, technology, and organization. This paper addresses this gap by initially identifying risks in the use of Business Analytics. For this purpose, possible risks are identified using a systematic literature review and verified with a Delphi survey with various partners experienced in dealing with BA. Subsequently, the identified and validated risks are assigned to three different types of Business Analytics (Descriptive, Predictive and Prescriptive Analytics) and assessed in order to systematically address and reduce the risks. The result of this paper is an overview of the interactions between the socio-technically assigned risks, summarized in a risk catalog, and the different types of Business Analytics.
5G offers the manufacturing industry a wireless, fast and secure transmission technology with high range, low latency and the ability to connect a large number of devices. Existing transmission technologies are reaching their limits due to the increasing number of networked devices and high demands on reliability, data volume, security and latency. 5G fulfills these requirements and also combines the potential and use cases of previous transmission technologies so that unwanted isolated solutions can be merged. Use cases of transmission technologies that previously required a multitude of solutions can now be realized with a single technology. However, the general literature often refers to 5G use cases that can also be realized over cables in particular. In this paper, a literature review presents the current state of research on the various 5G application scenarios in production . Furthermore, concrete characteristics of 5G use cases are identified and assigned to the identified application scenarios. The goal is to verify the identified 5G use cases and to work out their 5G relevance in order to be able to concretely differentiate them from already existing Industrie 4.0 applications.
Feeding the growing world population is a scientific and economic challenge. The target variables to be optimised are the yield that can be produced on a given area and the reduction of the resources used for this purpose. High-wage countries are faced with the problem that the use of personnel is a significant cost driver. Developing countries, on the other hand, usually operate on much smaller field sizes, so that the work in the field is still strongly characterised by manual labour. One solution to meet these challenges is the use of smaller autonomous harvesting robots. These can be networked into a swarm of machines to work even larger fields. The networking of autonomous agricultural machines is a key use case for rural 5G networks. 5G technology can offer many advantages over older mobile communications standards and therefore make use cases more efficient or enable new ones. Various use cases are also conceivable in the field of agriculture, yet it is unclear how 5G networks can and must be specified for this purpose. In this paper, using the example of 5G-connected harvesters powered by swarm robotics, we present the challenges that have arisen and the specification that has been developed.
In road haulage, transports are interrupted by truck drivers to comply with driving and rest times. On long-distance routes, these interruptions lead to a considerable increase in transport time. Transport interruption can be avoided by so-called relay traffic: a vehicle (e. g. semi-trailer) is handed over to a rested driver at the end of the driving time. This type of transport requires a certain company size. In Germany, however, transport companies have 11 employees on average. Intra-company relay traffic is therefore not economically viable for most transport companies. To organize an intermodal transport across forwarding companies, long-distance routes need to be split into partial routes to divide them between freight forwarders and carriers. This paper presents a data concept for an algorithm to find the best possible route sections along a previously defined start and endpoint. The developed data concept includes order-specific data, forwarder-specific data, real-time traffic data, geographical data as well as data from freight forwarding software and telematics to be the basis for the route sectioning algorithm. In this paper, different data sources, external services and logistic systems are analyzed and evaluated. It is shown which data is needed and what the best ways are to select and derive this data from the different data sources.
Crises are becoming more and more frequent. Whether natural disasters, economic crises, political events, or a pandemic - the right action mitigates the impact. The PAIRS project plans to minimize the surprise effect of these and to recommend appropriate actions based on data using artificial intelligence (AI). This paper conceptualizes a cascading model based on scenario technique, which acts as the basic approach in the project. The long-term discipline of scenario technique is integrated into the discipline of crisis management to enable short-term and continuous crises management in an automated manner. For this purpose, a practical crisis definition is given and interpreted as a process. Then, a cascading model is derived in which crises are continuously thought through using the scenario technique and three types of observations are classified: Incidents, disturbances, and crises. The presented model is exemplified within a non-technical application of a use case in the context of humanitarian logistics and the COVID-19 pandemic. Furthermore, first technical insights from the field of AI are given in the form of a semantic description composing a knowledge graph. In summary, a conceptual model is presented to enable situation-based crisis management with automated scenario generation by combining the two disciplines of crisis management with scenario technique.
Innovation is one of the key drivers of growth, development, and profitability, which increases competitive advantages and has recently been moving towards industry 4.0 technologically. This motivates companies to update their business models (BM) towards industry 4.0. Moreover, there is a technique with the primary characteristics for achieving this motivation called "cross-industry innovation". Cross-industry innovation is a new method of innovation that concerns the creative translation and imitation of existing solutions from other industries for responding to the needs of the current market, sectors, areas, or domains. The challenge is to find out how far managers can rely on that to innovate their BM towards Industry 4.0. The aim of this study was to investigate the application of cross-industry innovation for designing industry 4.0 BM and explore the extent to which companies can rely on it as it has not been used for this purpose previously. This study utilized a database analysis to compare cross-industry innovation practices with industry 4.0 BM's characteristics in terms of value proposition, value creation, and value capture levels. In addition, some interviews were conducted with companies that had previously implemented cross-industry innovation to validate and generalize the results. The results indicated that cross-industry innovation practices can better fulfill flexible and dynamic networks, connected information flows, high efficiency, high scalability, and high availability in terms of value creation as well as variabilization of prices and costs in terms of value capture. Therefore, it demonstrated that cross-industry innovation was a more dependable and applicable strategy for designing the BM of Industry 4.0 than current practices.
Development of a platform business model for co-creation ecosystems for sustainable furniture
(2023)
Existing design platforms with multi-dimensional value chains currently have deficits in terms of their business models, resulting in insufficient attention to sustainability goals and individual requirements for products of these platforms. Co-creation approaches, such as the Do-It-Together (DIT) approach for furniture, involve customers and manufacturers as equal partners in the design and production process. This allows customers to have more influence on the sustainability and individualization of products. The existing literature addresses sustainability-oriented design principles for platform business models, but concrete platform business models for multidimensional DIT cocreation of furniture are still missing. Therefore, the objective of this paper is to develop a business model for a DIT co-creation platform for the furniture industry based on a four-step business model innovation framework. This method will then be applied to a specific project scenario to derive a project-specific DIT co-creation business model. This generates knowledge about the collaborative manufacture of sustainable and customized furniture and contributes to the cross-sectoral transfer of platform business models for the development of sustainable products.
The manufacturing industry consumes 54% of global energy and attributes for 20% of global CO2 emissions, demonstrating the industry’s role as global driver of climate change. Therefore, reducing its carbon footprint has become a major challenge as its current energy and resource consumption are not sustainable. Industrie 4.0 presents a chance to transform the prevailing paradigms of industrial value creation and advance sustainable developments. By using information and communication technologies for the intelligent networking of machines and processes, it has the potential to reduce energy and material consumption and is considered a key contributor to sustainable manufacturing as proclaimed by the European Commission in the term “twin transition”. As organizations still struggle to utilize the potential of Industrie 4.0 for a sustainable transformation, this paper presents a framework to successfully align their own twin transition. The framework is built upon three key design principles (micro level: leverage eco-efficient operations, meso level: facilitate circularity and macro level: foster value co-creation) derived using case study research by Eisenhardt, and four structural dimensions (resources, information systems, organizational structure and culture) based on the acatech Industrie 4.0 Maturity Index. Eleven interconnected areas of action are defined within the framework and offer a holistic and practical approach on how to leverage an organization’s twin transition. Within the conducted research, the framework was applied to the challenge of information quality and transparency required for high-value secondary plastics in the manufacturing industry. The result is a digital platform design that enables information transactions for secondary plastics and establishes a circular ecosystem. This shows the applicability of the framework and its potential to facilitate a structured approach for designing twin transitions in the manufacturing industry.
Long-term production management defines the future production structure and ensures the long-term competitiveness. Companies around the world currently have to deal with the challenge of making decisions in an uncertain and rapidly changing environment. The quality of decision-making suffers from the rapidly changing global market requirements and the uniqueness and infrequency with which decisions are made. Since decisions in long-term production management can rarely be reversed and are associated with high costs, an increase in decision quality is urgently needed. To this end, four different applications are presented in the following, which support the decision process by increasing decision quality and make uncertainty manageable. For each of the applications presented, a separate digital shadow was built with the objective of being able to make better decisions from existing data from production and the environment. In addition, a linking of the applications is being pursued:
The Best Practice Sharing App creates transparency about existing production knowledge through the data-based identification of comparable production processes in the production network and helps to share best practices between sites. With the Supply Chain Cockpit, resilience can be increased through a data-based design of the procurement strategy that enables to manage disruptions. By adapting the procurement strategy for example by choosing suppliers at different locations the impact of disruptions can be reduced. While the Supply Chain Cockpit focuses on the strategy and decisions that affect the external partners (e.g., suppliers), the Data-Driven Site Selection concentrates on determining the sites of the company-internal global production network by creating transparency in the decision process of site selections. Different external data from various sources are analyzed and visualized in an appropriate way to support the decision process. Finally, the issue of sustainability is also crucial for successful long-term production management. Thus, the Sustainable Footprint Design App presents an approach that takes into account key sustainability indicators for network design. [https://link.springer.com/referenceworkentry/10.1007/978-3-030-98062-7_15-1]