Crossing the digitalisation chasm: Overcoming barriers to industrial digitalisation

Abstract: Digitalisation is a global megatrend revolutionising every aspect of society and especially impacting businesses. Consequently, the term Industry 4.0 has emerged in the manufacturing industry. Manufacturing companies are increasingly adopting digital technologies to improve manufacturing processes, inform strategic decision- making and become more sustainable. The change towards a more digital manufacturing industry has accelerated since the Covid-19 pandemic and is increasingly being viewed as a part of the solution to some of the biggest sustainability issues facing humanity. Companies that embark on a digitalisation journey will inevitably face barriers, both inside and outside the organisation, which need to be overcome. This master thesis investigates what those barriers are along with potential solutions which enable companies to cross the “digitalisation chasm”. Additionally, some of the research has focused on what state-of-the-art research knowledge there is on digitalisation of manufacturing, as well as mapping how far digitalisation has progressed in the industry. The research questions are answered through a systematic literature review and a multiple case study of four manufacturing companies, which are all customers of the engineering and advisory firm AFRY. The authors have collaborated with the Industrial Digitalisation Advisory Services (IDAS) team at AFRY to produce this report, aiming to provide valuable insights for both the company and their customers. In conclusion, the findings indicate that the industry is experiencing a paradigm shift, as companies are increasingly focusing on adopting digital technologies and agile development processes. To attain the benefits of digitalisation and effectively utilise emerging technologies, manufacturing companies must overcome barriers such as skill shortages, increasing technical complexity, and employees resisting change. Effective change management, aligned leadership, a clear strategy, a positive change culture, and clear communication are all crucial for companies to cross the digitalisation chasm and fully implement digitalisation.