Utilizing Big Data and Internet of Things in a Manufacturing Company

Abstract: Swedish Match experiences a changing business environment with increased competition. In this business environment, the ability to successfully utilizing technological advances, such as big data and IoT, is becoming more important to remain competitive. In addition, a limited number of studies have been conducted on the theme big data and IoT in a manufacturing firm. Thus, this master’s thesis is an initiative to increase the knowledge, both within the company as well as in the overall industry. The purpose of this master’s thesis is to investigate how the manufacturing company Swedish Match can optimize their production process by utilizing big data and IoT. To answer the research questions and the purpose presented in this master’s thesis, a single qualitative case study with an inductive reasoning approach is initiated. To gain insights in the case organization, in-depth interviews and observations are conducted. These methods, in combination with a literature study, provide an understanding of how big data and IoT can be utilized in a production process. Thus, the research questions and the purpose of the master’s thesis are also answered. Four fundamental gaps between the current situation and the desired situation emerge when studying the production process of Swedish Match. These gaps are (1) a lack of internal process integration, (2) a reactive approach instead of a proactive, (3) that high pressure is put on employees, and (4) that much data is stored without being available, combined or visualized at the right place. Furthermore, it is clear that there are two main application areas of big data and IoT that are feasible when manufacturing functional and mature products. More specifically, these applications are in manufacturing optimization as well as in preventive and predictive maintenance. The applications in these two areas can contribute to attaining increased efficiency in the production process while minimizing costs. Ultimately, this can result in increased quality of the finished products. In addition, when considering a utilization of the two technological advances, it is of high importance that the company knows what their actual goal is with the adoption. Furthermore, it is of high importance that the organization realizes what big data and IoT can accomplish as well as its limitations, all to assure reasonable expectations. When considering utilization, it is also important to consider the associated risks. Here, the critical risks should be managed first to mitigate the potential issues. There are two critical risks in this case, namely the risk of the required investment being too large and it being hard to find the needed competencies.