Industry 4.0: After the Initial Hype

McKinsey Digital (2016)

After the hype-Cover A lot of positive hype has built up around Industry 4.0 over the last few years, creating aware-ness of the topic within many companies and contributing significantly to the rejuvenation of “good old industry” in the public mind. In its aftermath, industry leaders remain optimistic overall, but a degree of disillusionment has also crept in as the actual implementation results so far are mixed.

On the one hand, we still see high uncertainty among manufacturers regarding what implement-ing Industry 4.0 really requires of them – and many are still struggling to even get started. On the other hand, most technology suppliers have moved relatively fast in adjusting their portfolios towards Industry 4.0. We are also seeing a growing number of manufacturers report substantial progress, especially when moving beyond the Industry 4.0 umbrella term and focusing on valuable, business-specific applications. To get there, many clients have told us they have even renamed their “Industry 4.0” projects to shake off an initial sense of disillusionment while keeping the elements that created true value.

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