Capturing Value When Implementing APM 4.0 : Within the Swedish Automotive Industry

University essay from KTH/Skolan för industriell teknik och management (ITM); KTH/Skolan för industriell teknik och management (ITM)

Abstract: The automotive industry is in a period of significant change with different emerging technologies trying to impact the industry. It is in a time where the fourth industrial revolution, Industry 4.0, opens up opportunities for OEMs to improve their products and services with the help of transitioning towards Asset Performance Management (APM 4.0). This master thesis has identified various OEMs values with the help of the framework Value Mapping Tool to help the companies capitalize on these opportunities. The values were divided into the following subvalues; Value Captured, Value Missed, and Value Opportunities. OEMs have to adapt their existing business models with the help of business model innovation to improve the identification of values further and stay competitive or gain competitive advantages. Literature regarding the current state of the automotive industry and transitioning towards APM 4.0 has been combined with findings from six semi-structured interviews. The findings are based on interviews with employees with different positions from various automotive companies in Sweden. Furthermore, the findings and the literature have been compared to three benchmarking studies of similar research in Germany, China, and the USA to gain an overall view of the problem. The missed values are characterized by Complexity, Ambiguity, and Knowledge. Moreover, the values captured show that new business models are needed due to the market rapidly transforming but companies lacking knowledge on how to capture value. The complexity concerns the new complex technologies arriving as well as the high level of uncertainties rising with the introduction of APM 4.0. The ambiguities indicate the problems the automotive companies have with searching for information since they do not know what to expect. The knowledge refers to knowledge gained during the process of implementing APM 4.0 in order to identify valuable unexplored data. Nonetheless, the study also led to finding potential value opportunities despite the lack of knowledge and a high level of uncertainty. There are unexplored business models which can improve the manufacturing processes for the automotive companies. Project benchmarking has shown positive signs but still has not reached its full potential due to low amounts of tests. The study concludes that many clear obstacles hinder a successful implementation of APM 4.0 within the Swedish automotive industry. In order for the automotive companies to optimize the implementation, they have to capture value relevant to their business model.

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