This master thesis is about implementation of cloud systems for the purpose of monitoring and advancing production accuracy of CNC machine tools within context of Industry 4.0. A demonstration application was created. It is hosted in MindSphere cloud from the Siemens company.

The diploma thesis focuses on the description of LPWAN (Low Power Wide Area Network) technologies for use in IoT (Internet of Things) communication scenarios. The theoretical part compares communication technologies operating in the license-exempt frequency band, i.e. Sigfox and LoRaWAN (Long Range Wide Area Network). Furthermore, technologies using the licensed frequency spectrum are discussed, specifically, attention is focused on NB-IoT (Narrow Band IoT). Emphasis is placed on LoRaWAN technology and the properties of the unlicensed frequency band below the 1 GHz, which is utilized by this technology. The practical part of the thesis consists of the evaluation of simulation scenarios using an integrated module in the simulation environment NS-3 (Network Simulator 3). Attention is focused mainly on the analysis of data transmission success using selected communication parameters of LoRaWAN technology. The obtained simulation outputs with a focus on mMTC (massive Machine-Type Communication) communication scenarios confirm the relationship between the number of end devices and gateways, communication distance and transmission reliability, or the limit value for the duty cycle.

The goal of this diploma thesis is to explore possibilities and principals of virtual and augmented reality, especially in relation to use in the factories of Industry 4.0. Introduce also a optical location systems VICON and OptiTrack. . It also studies the possibilities of 3D visualization of technical objects using viewing glasses and selects a suitable framework for creating an augmented reality focused on the environment of MS Windows, UNITY 3D engine and the C# programming language. Last chapter designes and developes software solution depicting an artificial scene in viewing glasses.

Purpose – The purpose is to explore how SMEs can initiate transformation towards AI. The purpose will be fulfilled through identifying which opportunities that exist for SMEs and which challenges they are facing. Additionally, we will identify which requirements are necessary to face these challenges. Method – A qualitative approach was most suitable for this study since the purpose is to explore how SMEs can initiate transformation towards AI. It was also suitable since we have collected data through interviews. We have done a single case study where we have studied one supply chain. Finally, we have had an inductive research approach which means that we have gathered a theoretical background which has founded the base and the background for our study, but our interviews have founded the result of the study and created a conclusion based on that. Findings –The result of the study provides identified opportunities with AI for SMEs, what challenges can occur, and which requirements that are needed to face the challenges. The opportunities are identified as forecasting, maintenance and repair, self-optimization, and tracing and tracking. The identified challenges when initiating transformation towards AI are cultural difficulties, lack of external communication, lack of internal communication, limited internal processes, and lack of resources. The requirements are identified as automation, data, strategy, and capabilities. The opportunities, challenges and requirements are summarized in a framework. Theoretical and Managerial Implications – We have contributed to literature by exploring how an SME, as a mass production company, can benefit from AI by identifying opportunities, challenges, and requirements. Additionally, the framework guides SMEs to prepare for opportunities with AI and ensure that they have all of the requirements. Further, by understanding which requirements that are necessary for a transformation and which challenges that can occur, managers can reduce risk of failing projects. Limitations and Future Research –The number of studied companies together with that the study is a single case study limits the generalizability. It creates a suggestion for future research where a wider set of data can be collected. Additionally, we have identified challenges that can occur, however how companies should face these challenges in the best way is a suggestion for future research.

Introduction The paradigm shift in manufacturing that Industry 4.0 brings forth with new advanced technologies and the rapid growth of sensing and controlling technologies enable further visualization and optimization that can contribute to achievingimproved decision-making in manufacturing. A significant new capability is the ability to construct a Digital Twinthat connects the physical and virtual space. However, there are still confusion and obscurity regarding what Digital Twinis and how it can becreated and then used to create value for the company. Therefor the purpose of the thesis is to examine how manufacturing companies can utilize the implementation of Digital Twinand assess Digital Twinin a shop-floor. ➢RQ1: How can DT be beneficial to increase business value in a manufacturing company? ➢RQ2: What changes need to be done in the shop-floor to implement Digital Twin? Methodology A literature review was conducted to provide previous researchand contextwithin the area of Digital Twin. A multiple-case studywas performed at three case companies to gain meaningful insight from a real-world perspective, semi-structured interviews, dialogs, and observations were conductedat the case companies. The analysis was then performed by examining similarities, and dissimilarities between theoretical and empirical data, as well as opportunities in theoretical findings that correspond with challenges in empirical findings. Frame of Reference The literature review increased the authors’ understanding of the research topic and gave context to the concept of Digital Twin. The review is mainly focused on the Digital Twintechnologyand how it is constructed, as well as the applicationsareas. Empirical Findings The empirical findings provide an overview of boththe current and future state of the case companies in relation to organizational, operational, and technological factors. Additionally, it provides a deeper understanding of how shop-floor management is designed at one of the case companies. Analysis The combination of the Frame of Reference and Empirical Findings contributewith important insight on the potential benefits that can be created through the utilizationof Digital Twin, as well as what is requiredin the shop-floor to enable implementation ofDigital Twin. Conclusions The value that can be created utilizing Digital Twinis outlinedand a clearer definition is proposed to avoid misunderstandings and confusion. Requirements that need to be achieved for a successful implementation arecovered as well. A future recommendation is measuring resources and effort in relation to the created value of a Digital Twin.

Digitalization is finding it’s way into production and machine-building. Autonomous, sefoptimizing and highly interconnected units will determine the functionality of machines and production facilities. Communication and automation layout will fundamentally change, data will be more and more the base for new business modells. Innovation is determining pneumatics and handling technology. The innovation topics performance improvement, modular and mechatronic design of systems, sustainability and efficiency are keeping pneumatics and vacuum technology on the pathway of success. But is the technology field also prepared for the tremendous challenges caused by the digitalization? This paper is focusing on the significance of digitalization for fluid technology, especially for pneumatics and vacuum technology. The new concepts of digitalization and autonomization are based on the Internet of Things with open Communication of cyber-physical systems. These cyber-physical systems are able to react autonoumously. Cyber-physical systems can collect, interpret and analys data and transfer it into valuable information. Based on these data, cyberphysical systems will provide services to all participants of the smart factory. There will be a digital image inside the factory cloud, which is the base of new business models. Systems of pneumatics, vacuum technology and hydraulics will play a core role in this world. They are placed directly at the interface to the real technical process, they have direct contact with the workpieces, they are collecting multitude of sensor data and are evaulating it, they have functionality like Condition Monitoring and Energy Efficiency optimization on board and are able to communicate with the world of automation. This paper will show, that the innovation trends of the last years are supporting the way towards digitalization and Industrial Internet of Things. There are already a lot of different approaches to establish vacuum and pneumatic systems as adequate elements of the digitalized world. It will also be shown, that fluid technology still is facing tremendous challenges It will be not sufficient to equip the systems with more functionality and better communication. It will be essential, that from the interpretation and correlation of data will be derived valuable services with real customer benefit. This should happen under control of the vendors of smart field devices in fluid technology. Then it will be possible to turn this new kind of value generation also into new business models.

The emergence of new digital technologies and their potential strategic contribution is currently one of the most prominent concerns for organizations. Despite the opportunity brought on by modern digital technology, an estimated 66-84% of digital transformation projects end up failing. Therefore, a research question was formulated as; How to formulate a strategy for digital transformation that supports manufacturing business value? An abductive research approach was utilized to reach two main research objectives; Creating a description of how the current and future digital landscape is understood and creating a description of how digital transformation can be constructed and what strategies and/or strategical elements exist within that construct. Furthermore, one manufacturing case company within the automotive industry and specifically its formal initiative and efforts to conduct a digital transformation were examined. By creating this comprehensive context, it was believed that existing knowledge could be solidified, and new knowledge could be created to answer the research question. Scattered and diverse findings regarding a multitude of elements are presented in the frame of reference, in order to build a strong basis for analysis. Distinguished levels of conceptual strategies within the construct of digital transformation are recognized as “Digital Business Strategy” and “Digital Transformation Strategy”. An empirical study is presented that examines present elements such as a conceptual roadmap, task teams, and an overall description of a formal initiative towards digital transformation, as well as how these elements are interpreted and understood by leaders within the organization. The analysis consists of a comparison between the presented literature and the empirical findings. This is viewed through the lens of the research objectives in order to show commonalities and differences between the literature and the case company, and to corroborate findings. Most prominent is the absence of a digital business strategy at the case company in contrast to the expressed necessity for one in the literature. In a presented discussion, strategy as a linkage between business value and digital transformation is argued to be direct through a digital business strategy. The answer to the stated research question is that digital transformation and strategy formulation can not be understood as a linear, but rather an iterative and evolving process involving building an absorptive capacity, assessing maturity, formulating a digital business strategy, and creating a roadmap and a digital transformation strategy that support the digital business strategy and the maturity level. Conclusively, the findings of this report are corroborated by each other but lack empirical evidence as to the meaning of being successful and valuable manufacturing business in the setting of the fourth industrial revolution is yet unknown. However, practitioners are encouraged to employ a conscious business model perspective, while researchers are discouraged of thinking about digital transformation as a linear and sequential process.

Consumers have changed their behaviour from passive roles to active ones, demanding their beloved brands to be integrated into long-lasting customer-brand relationships. With this ideology, which is the basis for the S-D logic, there is an on-going scientific debate on the value co-creation phenomenon and its effects on sustaining long-term brand-customer relationships in the context of the fashion industry. These effects are considered to have the potential to sustain a competitive advantage and affect not only the marketing of the fashion brands, but also other facets of such enterprises, including their value and supply chains. Additionally, the world has been experiencing a steep increase in technological innovation under the name of Industry 4.0, where machinery and human labour become integrated into smart systems and consumers have the ability to influence parts of brands which were not available before. Within this context, the interest of this research is to explore the value co-creation phenomenon in relation to the I4.0 dimension in the setting of two generic business models characteristic of the fashion industry (luxury vs. fast-fashion). In exploring the interconnectivity of these two phenomena, this study takes on the digital strategies of Burberry, Louis Vuitton, UNIQLO and Zalando, and assesses their co-creative processes targeted towards their consumers. In doing so, this study is also aiming at identifying the approaches of the chosen brands towards the I4.0 dimension and its relevance towards the process of value co-creation. In order to illuminate the co-creative processes within the digital strategies of the selected brands and to accomplish the research goal, this study takes on a comparative cross-case study methodology synthesising secondary data on both value co-creation and I4.0 as separate phenomena. The secondary data on the digital strategies of the selected brands is used within an existing model called “the Co-creation mix” which assesses the co-creative processes of the brands based on six different criteria: co-creator, purpose, locus, intimacy, time, and incentives. Interpreting the secondary data through such a model resulted in the identification of two different approaches to co-creation and I4.0. The findings indicate that the luxury case companies approach co-creation from a traditional marketing perspective where digital consumer engagement is the main co-creative process, whereas the fast-fashion case companies initiate co-creative processes designed to accomplish goals that are more supply-chain related. This result also brings several intriguing implications. First, the fast-fashion case companies are more technology-driven and are more open towards the implementation of innovative I4.0 technologies within the co-creative processes than the luxury case companies. Second, the consumer role in the co-creation process seems to become less central the more the I4.0 dimension is involved. Third, the model shows that the fast-fashion examples outperform the luxury examples at the dimensions where the latter perform the weakest, such as intimacy and time. And fourth, the study findings confirm the new research opinion that both industry segments have weak areas which can be handled by taking on a mix of the two identified approaches, rather than focus on the traditional one alone. Yet, these findings are not generalizable but only illustrative, meaning that the study provides plausible hypothesis and future research directions concerning value co-creation and I4.0 within the fashion industry context.

Global megatrends and the resulting challenges for manufacturing companies, have brought up the concept of Industry 4.0 (I4.0) and its heart the Smart Factory (SF). Through I4.0 and the application of SF companies can increase their creation of value, however the degree of value depends on the way of implementation. Scholars and studies of successful SF implementation are still in an infant stage, and companies find little guidance in literature. Therefore, research question one targets on how to implement the SF and research question two on the investigation of success factors, challenges and outcomes of the successful SF implementation. The literature review included 216 scholars in the field of SF implementation. On this basis, a theoretical proposition was developed, to guide data collection and analysis. For development of the practical framework, multiple case studies have been chosen. Through an orientation study, seven cases in a multinational manufacturing company have been selected for the research. The developed framework has been validated again with the experts in the company. The developed implementation framework consists out of two parts. A strategic implementation process, including a SF maturity model to support the gradual advancement towards the SF and an operational implementation process for SF technologies, to advance to the higher maturity level. The framework represents a step-by-step approach including key activities, success factors and challenges of each phase. To justify an implementation, different outcomes have been clustered and organized to provide an overview. As this work is based on the current advancement of the research field, it first provides a condensed summary of SF implementation and second, through answering RQ1 and RQ2 closes research gaps. Hence, it contributes to the further advancement of the research field by providing a clear framework on the implementation approach and key factors, as well as a starting point for further research. With the SF implementation framework, this work provides the missing connection between a directed strategic approach and new technology implementation with a step-by-step guideline to facilitate the implementation of SF. The framework represents a guideline, to be used by managers, including the most important aspects to consider.

Innovations such as combustion engines, electricity and assembly lines have all had a significant role in manufacturing, where the past three industrial revolutions have changed the way manufacturing is performed. The technical progress within the manufacturing industry continues at a high rate and today's progress can be seen as a part of the fourth industrial revolution. The progress can be exemplified by ”Industrie 4.0”; the German government's vision of future manufacturing. Previous studies have been conducted with the aim of investigating the benefits, progress and relevance of Industry 4.0-technologies. Little emphasis in these studies has been put on differences in implementation and relevance of Industry 4.0-technologies across and within industries. This thesis aims to investigate the adoption of Industry 4.0-technologies among and within selected industries and what types of patterns that exists among them. Using a qualitative multiple case study consisting of firms from Aerospace, Heavy equipment, Automation, Electronics and Motor Vehicle Industry, we gain insight into how leading firms are implementing the technologies. In order to identify the factors determining how Industry 4.0-technologies are implemented and what common themes can be found, we introduce the concept production logic, which is built upon the connection between competitive priorities; quality, flexibility, delivery time, cost efficiency and ergonomics. This thesis has two contributions. In our first contribution, we have categorized technologies within Industry 4.0 into two bundles; the Human-Machine-Interface (HMI) and the connectivity bundle. The HMI bundle includes devices for assisting operators in manufacturing activities, such as touchscreens, augmented reality and collaborative robots. The connectivity-bundle includes systems for connecting devices, collecting and analyzing data from the digitalized factory. The result of this master thesis indicates that depending on a firm’s or industry’s logic of production, the adoption of elements from the technology bundles differ. Firms where flexibility is dominant tend to implement elements from the HMI-bundle to a larger degree. In the other end, firms with few product variations where quality and efficiency dominates the production logic tends to implement elements from the connectivity bundle in order to tightly monitor and improve quality in their assembly. Regardless of production logic, firms are implementing elements from both bundles, but with different composition and applications. The second contribution is within the literature of technological transitions. In this contribution, we have studied the rise and development of the HMI-bundle in the light of Geels (2002) Multi-Level Perspective (MLP). It can be concluded that an increased pressure on the landscape-level in the form of changes in the consumer-market and the attitudes within the labor force has created a gradual spread of the HMI-bundle within industries. The bundles have also been studied through Rogers (1995) five attributes of innovation, where the lack of testability and observability prevents increased application of M2M-interfaces. Concerning Big Data and analytics, the high complexity prevents the technology from being further applied. As the HMI-bundle involves a number of technologies with large differences in properties, it is hard draw any conclusion using the attributes of innovation about what limits their application.