Industrie 4.0 by Siemens: Steps Made Next

This article describes how digital disruption transforms all industries, leading to new business models based on the new technologies. In manufacturing, one model for digital disruption is Industrie 4.0, supported mainly in Germany. Proposals for Industrie 4.0 involve the virtualization and vertical and horizontal integration of the value chain, digital services, the digital transformation of products, the digital transformation of production equipment, the digital transformation of factories and supply chains. Whereas the former two are already in place today, the latter is researched and developed. Products and production equipment will be transformed from physical to cyber-physical. Together, they will negotiate as peers over the Internet of Things and form smart factories. Via the Internet of Services, the entire supply chain will be integrated. The most popular business model is mass customization, according to which the customer order triggers production and logistics in the entire supply chain. Siemens intends to use information technology to migrate customers to tomorrow's digitalization.