Industry 4.0 benefits and challenges across all three business model elements in environmental dimension of sustainability
| Business model dimension | Benefits | Challenges |
|---|---|---|
| Value creation | Cognitive digital technologies provide insights into customer demands, eliminating overproduction; Maximise the energy utilisation, sharing resources through circular economy; | Resource efficiency and waste management, since a higher customisation, which is one of the Industry 4.0 main drivers, on the other hand, can create more energy consumption and waste material |
| Value delivery | Collaborative tools and sustainable practices, engaging customer and partners in a collective approach for exchange of materials, energy, water and products | Integrating sustainable practices into production processes, ensuring the entire chain adheres to environmental regulations can be costly and complex to implement and maintain |
| Value capture | New opportunities to trade/share resources by closing the loop of waste-to-resource streams within networks and create economic value from waste material | The initial investment required for adopting Industry 4.0 technologies can be high, and it can be challenging to balance these costs with the need to deliver environmental benefits |
| Business model dimension | Benefits | Challenges |
|---|---|---|
| Value creation | Cognitive digital technologies provide insights into customer demands, eliminating overproduction; | Resource efficiency and waste management, since a higher customisation, which is one of the Industry 4.0 main drivers, on the other hand, can create more energy consumption and waste material |
| Value delivery | Collaborative tools and sustainable practices, engaging customer and partners in a collective approach for exchange of materials, energy, water and products | Integrating sustainable practices into production processes, ensuring the entire chain adheres to environmental regulations can be costly and complex to implement and maintain |
| Value capture | New opportunities to trade/share resources by closing the loop of waste-to-resource streams within networks and create economic value from waste material | The initial investment required for adopting Industry 4.0 technologies can be high, and it can be challenging to balance these costs with the need to deliver environmental benefits |