Digital Disruption of Industries

The digitalization of products and services is increasingly disrupting competition and the existing industry borders. Traditional physical product-based business models are being challenged by data-driven digital ecosystems that pursue new ways to increase end-customer value. At the same time, we are witnessing the Fourth Industrial Revolution (referred to as Industry 4.0) that offers huge opportunities for multiple industries to radically improve the productivity and sustainability of their global operations. The concept of Industry 4.0 is based on cyber–physical systems (CPS) and industry digitalization, powered by both established and emerging technologies. Industrial 5G is expected to accelerate the ongoing digital transformation by bringing improved and more reliable wireless solutions into industrial environment. It is not only about better connectivity, but it allows safe, cloud-native data computing closer to the users with new real-time capabilities. New business opportunities across industries are now rising fast that allows enterprises to create a variety of on new digital business models to capture the value.

References

M. Porter and J. Heppelmann , “ How smart, connected products are transforming competition ,” Harvard Business Review , vol. November , pp. 65 – 88 , 2014 .
Google Scholar
F. Calvino , C. Criscuolo , L. Marcolin and M. Squicciarini , “ A Taxonomy of Digital Intensive Sectors ,” OECD Science, Technology and Industry Working Papers, 2018 .
Google Scholar
J. Collin and A. Saarelainen , Teollinen Internet , Helsinki : Talentum, Alma Media , 2016 .
Google Scholar
P. Drucker , Management: Tasks, Responsibilities, Practices , New York : Harper & Row , 1973 .
Google Scholar
J. Collin , K. Hiekkanen , J. J. Korhonen , M. Halen , T. Itälä , M. Helenius , “ IT Leadership in Transition – The Impact of Digitalization on Finnish Organizations ,” Aalto University Publication Series SCIENCE + TECHNOLOGY 7/2015 , Espoo , pp. 29 – 34 , 2015 .
Google Scholar
OECD , “ OECD compendium of productivity indicators 2019 ,” 2019 . https://www.oecd-ilibrary.org/industry-and-services/oecd-compendium-of-productivity-indicators-2019_b2774f97-en .
Google Scholar
H. Kagermann , J. Helbig , A. Hellinger and W. Wahlster , “ Recommendations for Implementing the Strategic Initiative INDUSTRIE 4.0: Securing the Future of German Manufacturing Industry. Final Report of the Industrie 4.0 Working Group ,” 2013 .
Google Scholar
J. Pellikka , J. Collin and J. Penttinen , “ Key Drivers of Industrial 5G for Industry Digitalization ,” in 2023 9th International E-Conference on Advances on Engineering, Technology and Management , Submitted.
Google Scholar
W. de Paula Ferreira , F. Armellini and L. De Santa-Eulalia , “ Simulation in industry 4.0: A state-of-the-art review ,” Computers & Industrial Engineering , vol. 149 , p. 106868 , 2020 .
10.1016/j.cie.2020.106868
Web of Science® Google Scholar
P. Laiho , 5G-enabled Digital Transformation in the Finnish Forest Industry , Espoo : Master's Thesis, Aalto University , 2023 .
Google Scholar
K. Nosalska and G. Mazurek , “ Marketing principles for Industry 4.0 – A conceptual framework ,” Engineering Management in Production and Services , vol. 11 , no. 3 , pp. 9 – 20 , 2019 .
10.2478/emj-2019-0016
Google Scholar
I. Vuksanović , V. Kuč , V. M. Mijušković and T. Herceg , “ Challenges and driving forces for Industry 4.0 implementation ,” Sustainability , vol. 12 , no. 10 , p. 4208 , 2020 .
10.3390/su12104208
Web of Science® Google Scholar
A. Calabrese , M. Dora , N. L. Ghiron and L. Tiburzi , “ Industry's 4.0 transformation process: How to start, where to aim, what to be aware of ,” Production Planning & Control , vol. 33 , no. 5 , pp. 492 – 512 , 2020 .
10.1080/09537287.2020.1830315
Web of Science® Google Scholar
H. Kagermann and W. Wahlster , “ Ten years of Industrie 4.0 ,” Sci , vol. 4 , no. 3 , p. 26 , 2022 .
10.3390/sci4030026
Google Scholar
M. Herman , T. Pentek and B. Otto , “ Design Principles for Industrie 4.0 Scenarios: A Literature Review ,” Working Paper, 2015 .
Google Scholar
M. Hermann , T. Pentek and B. Otto , “ Design Principles for Industrie 4.0 Scenarios ,” in 49th Hawaii International Conference on System Sciences (HICSS) , Koloa, HI, USA : IEE , pp. 3928 – 3937 , 2016 .
10.1109/HICSS.2016.488
Google Scholar
Industry IoT Consortium , “ Home – Industry IoT Consortium ,” www.iiconsortium.org (online).
Google Scholar
OECD , “ Going Digital in a Multilateral World ,” 2018 https://www.oecd.org/site/videos/2018/documents/C-MIN-2018-6-EN.pdf (online).
Google Scholar
E. Commission , “ Digital Transformation ,” 2019 .
Google Scholar
G. Vial , “ Understanding digital transformation: A review and a re-search agenda ,” The Journal of Strategic Information Systems , vol. 28 , no. 2 , pp. 118 – 144 , 2019 .
10.1016/j.jsis.2019.01.003
Web of Science® Google Scholar
G. Westerman , D. Bonnet and A. McAfee , Leading Digital: Turning Technology into Business Transformation , Boston, MA : HBR Press , 2014 .
Google Scholar
K. Warner and M. Wäger , “ Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal ,” Long Range Planning , vol. 52 , no. 3 , pp. 326 – 349 , 2019 .
10.1016/j.lrp.2018.12.001
Web of Science® Google Scholar
R. K. Saha , P. Saengudomlert , C. Aswakul , “ Evolution toward 5G mobile networks – A survey on enabling technologies ,” Engineering Journal , vol. 20 , no. 1 , pp. 87 – 119 , 2016 .
10.4186/ej.2016.20.1.87
Google Scholar
S. K. Rao and R. Prasad , “ Impact of 5G technologies on Industry 4.0 ,” Wireless Personal Communications , vol. 100 , pp. 145 – 159 , 2018 .
10.1007/s11277-018-5615-7
Web of Science® Google Scholar
T. Kumar , M. Liyanage , I. Ahmad , A. Braeken and M. Ylianttila , “ User Privacy, Identity and Trust in 5G. A Comprehensive Guide to 5G Security ,” pp. 267 – 279 , 2018 .
Google Scholar
J. Hemilä and J. Salmelin , “ Business Model Innovations for 5G Deployment in Smart Cities ,” in Proceedings of the ISPIM Innovation Summit, Melbourne, 10–13 December 2017 .
Google Scholar
M. Attaran , “ The impact of 5G on the evolution of intelligent automation and industry digitization ,” Journal of Ambient Intelligence and Humanized Computing , vol. 14 , pp. 1 – 17 , 2021 .
Google Scholar
GSMA , The 5G Era: Age of Boundless Connectivity and Intelligent Automation , GSM Association , 2017 .
Google Scholar
Allied Market Research , Industrial 5G Market by Component, End User, Enterprise Size, and Communication Type: Global Opportunity Analysis and Industry Forecast, 2021–2030 , Allied Market Research , 2021 .
Google Scholar
B. Insight , “ Industrial automation and wireless IoT ,” M2M Research Series, 2019 .
Google Scholar
World Economic Forum , The Impact of 5G: Creating New Value Across Industries and Society , 2020 .
Google Scholar
A. Aijaz , “ Private 5G: The future of industrial wireless ,” IEEE Industrial Electronics Magazine , vol. 14 , no. 4 , pp. 136 – 145 , 2020 .
10.1109/MIE.2020.3004975
Web of Science® Google Scholar
A. Mahmood , S. Abedin , T. Sauter , M. Gidlund and K. Landernäs , “ Factory 5G: A review of industry-centric features and deployment options ,” IEEE Industrial Electronics Magazine , vol. 16 , no. 2 , pp. 24 – 34 , 2022 .
10.1109/MIE.2022.3149209
Web of Science® Google Scholar
S. Zhang , “ An overview of network slicing for 5G ,” IEEE Wireless Communications , vol. 26 , no. 3 , pp. 111 – 117 , 2019 .
10.1109/MWC.2019.1800234
Web of Science® Google Scholar
S. Yrjola , “ Technology antecedents of the platform-based ecosystemic business models beyond 5G ,” in 2020 IEEE Wireless Communications and Networking Conference Workshops (WCNCW) , pp. 1 – 8 , Seoul, South Korea , 6–9 April 2020.
Google Scholar
P. Ahokangas , M. Matinmikko-Blue , S. Yrjölä , V. Seppänen , H. Hämmäinen , R. Jurva and M. Latva-aho , “ Business models for local 5G micro operators ,” IEEE Transactions on Cognitive Communications and Networking , vol. 5 , no. 3 , pp. 730 – 740 , 2019 .
10.1109/TCCN.2019.2902547
Web of Science® Google Scholar
I. Lee , “ The Internet of Things for enterprises: An ecosystem, architecture, and IoT service business model ,” Internet of Things , vol. 7 , p. 100078 , 2019 .
10.1016/j.iot.2019.100078
Google Scholar
J. Schneir , A. Ajibulu , K. Konstantinou , J. Bradford , G. Zimmermann , H. Droste and R. Canto , “ A business case for 5G mobile broadband in a dense urban area ,” Telecommunications Policy , vol. 43 , no. 7 , p. 101813 , 2019 .
10.1016/j.telpol.2019.03.002
Web of Science® Google Scholar
M. Cave , “ How disruptive is 5G? ,” Telecommunications Policy , vol. 42 , no. 8 , pp. 653 – 658 , 2018 .
10.1016/j.telpol.2018.05.005
Web of Science® Google Scholar
M. Matinmikko , M. Latva-aho , P. Ahokangas and V. Seppänen , “ On regulations for 5G: Micro licensing for locally operated networks ,” Telecommunications Policy , vol. 42 , no. 8 , pp. 622 – 635 , 2018 .
10.1016/j.telpol.2017.09.004
Web of Science® Google Scholar
J. Pellikka and P. Malinen , “ Business models in the commercialization processes of innovation among small high-technology firms ,” International Journal of Innovation and Technology Management , vol. 11 , no. 2 , p. 1450007 , 2014 .
10.1142/S0219877014500072
Google Scholar
M. Johnson , C. Christensen and H. Kagermann , “ Reinventing your business model ,” Harvard Business Review , vol. 86 , no. 12 , pp. 50 – 59 , 2008 .
PubMed Web of Science® Google Scholar
3GPP , Release 17 Update from SA2 , 2021 .
Google Scholar
J. Pellikka and T. Ali-Vehmas , “ Managing innovation ecosystems to create and capture value in ICT industries ,” Technology Innovation Management Review , vol. 6 , no. 10 , pp. 17 – 24 , 2016 .
10.22215/timreview/1024
Google Scholar
M. Graham and W. H. Dutton , Society and the Internet: How Networks of Information and Communication are Changing Our Lives , Oxford University Press , 2019 .
10.1093/oso/9780198843498.001.0001
Google Scholar
I. Rodriguez , R. Mogensen , A. Schjørring , M. Razzaghpour , R. Maldonado , G. Berardinelli , R. Adeogun , P. Christensen , P. Mogensen , O. Madsen and C. Møller , “ 5G swarm production: Advanced industrial manufacturing concepts enabled by wireless automation ,” IEEE Communications Magazine , vol. 59 , no. 1 , pp. 48 – 54 , 2021 .
10.1109/MCOM.001.2000560
Web of Science® Google Scholar
I. Rodriguez , R. Mogensen , A. Schjørring , M. Razzaghpour , R. Maldonado , G. Berardinelli , R. Adeogun , P. H. Christensen , P. Mogensen , O. Madsen , and C. Møller , “ 5G swarm production: advanced industrial manufacturing concepts enabled by wireless automation ,” IEEE Communications Magazine , vol. 59 , no. 1 , pp. 48 – 54 , 2021 , doi: 10.1109/MCOM.001.2000560.
10.1109/MCOM.001.2000560
Web of Science® Google Scholar
Gartner Research , “ Market Guide for Edge Computing ,” 04 October 2022 . https://www.gartner.com/en/documents/4019489 .
Google Scholar
Nokia Press Release , “ Nokia and GlobalData Market Research Reveals Private Wireless Enterprise Drivers and Return on Investment Data ,” 08 December 2022 . https://www.nokia.com/about-us/news/releases/2022/12/07/nokia-and-globaldata-market-research-reveals-private-wireless-enterprise-drivers-and-return-on-investment-data/
Google Scholar

5G Innovations for Industry Transformation: Data‐Driven Use Cases