Analyzing the Implementation of Production Automation as a Service : Drivers, Benefits and Challenges

Abstract: Production automation as a service (PAaaS) is seen as a new trend that enables the possibility to use production automation technologies as a service. The technologies are cloud-based which makes the implementation of production automation more effective and cost-effective. This approach is attractive to the companies that have a limited capital investment. The purpose of this thesis was to analyse and understand the implementation of Production Automation as a Service (PAaaS) in the manufacturing industry. In order to understand its implementation, it is important to know what the drivers and benefits with PAaaS implementation and what challenges there are and how to overcome them for a successful implementation. To provide with a comprehensive answer and conclusion about PAaaS implementation in the manufacturing industry the following research questions was studied:1. What are the drivers and benefits of PAaaS implementation in the manufacturing industry, and what needs does it fulfil?2. What are the challenges of implementing PAaaS in the manufacturing industry, and how can they be overcome for a successful implementation and scale-up?To be able to answer these questions, a qualitative research study based on literature review and interviews was conducted. The combination between the literature and the real-life experience in PAaaS implementation provided a greater understanding of the concept. The aim of the research questions is to provide guidance and recommendation for companies seeking for a successful implementation of PAaaS which leads to improved operational efficiency and the ability to utilise the technological advancement provided through PAaaS. The approach applied in this study has been qualitative research with an abductive research approach. By obtaining data through scientific articles and interviews it was possible to analyse it more in-depth in order to find similarities between them.In conclusion, PAaaS implementation in the manufacturing industry provides with key benefits such as cost-effectiveness, improved flexibility, scalability, productivity, efficiency, and improved product quality. These benefits fulfil several needs of manufacturing companies such as being more flexible and being able to use automated solutions at a lower cost. These needs also act as the drivers for the implementation of PAaaS. The drivers are an important aspect of PAaaS implementation, because without any drive and motivation, there won’t be any implementation of PAaaS that can fulfil a certain need of the company. The drivers and motivation for a PAaaS implementation in the manufacturing industry is the possibility for a business model transformation and the technological advancements that the manufacturer gain with the implementation.In addition, there are key challenges that makes the PAaaS implementation more complex for the manufacturing companies. These challenges are, Integration with legacy systems, internet dependency and lack of expertise and knowledge. To able to achieve a successful implementation, it is important to address the challenges, by addressing these problems it was possible to provide with strategies on how to overcome them. Which lays the foundation for future research about this topic.