Overcoming barriers to manufacturing digitalization:Policies across EU countries

The digital transformation of manufacturing activities is expected to bring large societal benefits in terms of productivity and sustainability. However, uptake of digital technologies is slower than desirable. As a result, governments are taking action to try to overcome some of the barriers to adoption. However, the mechanisms through which government may act are quite diverse. In this paper, we compare the national strategies across the 27 countries members of the European Union. We map each country's initiative to 14 barriers to the adoption of digital technologies in manufacturing observed in the literature. We observe that most institutional efforts focus on providing funding, developing new regulatory frameworks related to data privacy and security, and creating human capital. Some known barriers to adoption observed at the firm level, such as the lack of off-the-shelf solutions, or the need for retrofitting old equipment, are largely overlooked. We do not find any relationship between the number of initiatives proposed by each country, and the country's existing level of digitalization. We conclude by proposing several policy recommendations, as well as directions for future research

Technology cost drivers for a potential transition to decentralized manufacturing

Popular dialogue around additive manufacturing (AM) often assumes that AM will cause a move from centralized to distributed manufacturing. However, distributed configurations can face additional hurdles to achieve economies of scale. We combine a Process-Based Cost Model and an optimization model to analyze the optimal location and number of manufacturing sites, and the tradeoffs between production, transportation and inventory costs. We use as a case study the commercial aviation maintenance market and a titanium jet engine bracket as an exemplar of a class of parts that are not flight-critical. We run our analysis for three different scenarios, one corresponding to the current state of the technology, and two which represent potential improvements in AM technology. Our results suggest that the cost-minimizing number of manufacturing locations does not vary significantly when taking into account a range of plausible improvements in the technology. In this case, distributed manufacturing is only favorable for a set of non-critical components that can be produced on the same equipment with minimal certification requirements and whose annual demand is in the tens of thousands. Distributed manufacturing is attractive at lower volumes for components that require no hot isostatic pressing

The moderator effect of balance of power on the relationships between the adoption of digital technologies in supply chain management processes and innovation performance in SMEs

Managing supply chain (SC) relationships to deal with challenges posed by contemporary social and business environments is a difficult task that can be facilitated with the use of digital technologies. The growing complexity of supply chains, characterized by over-dependencies on geographically dispersed partners across different regions, increases risks related to managing these relationships and highlights the importance of collaboration and balancing the power dynamics between SC partners. Previous studies have shown that small and medium enterprises (SMEs) can be considered the weakest link in terms of digitization and balance of power. This article aims to analyse how buyer-seller power relations moderate the relationship between the adoption of digital technologies in supply chain management (SCM) processes and innovation performance in the context of SMEs. Data were collected from manufacturing SMEs operating in Portugal. The results support the assumption that the use of digital technologies in processes related to SCM has a positive effect on SMEs innovation performance. The results also suggest that non-mediated power and reward-mediated positively moderate the relationship between the adoption of digital technologies and innovation performance, while the impact of coercive-mediated power was not confirmed. The article contributes to theory and practice by advancing the literature and guiding managers in the challenging task of carrying out digital transformation initiatives, considering their relationship with the power dynamics in the complex context of SMEs

The seven capital sins in the governance of blockchain ecosystems

In recent years, blockchain has gained traction as a technology to increase the security and transparency of firms’ transactions. There is a widespread misconception that blockchains, once rolled out, are fully decentralized and transparent in terms of governance. The practice of many blockchain initiatives tells a different story: the development of a robust and reliable governance structure for a blockchain ecosystem requires balancing the power, accountability, and incentives of each blockchain member. This is a highly complex balancing act. It is important that CEOs, COOs and other top managers become deeply aware of the complexity of setting up and governing an (envisioned or existing) blockchain, to increase its success chances. In this article, we discuss what we consider are the seven capital sins of the governance of an enterprise blockchain that can hinder the successful implementation of this technology. These insights are based on three years of research in which we studied a large number of blockchain ecosystems

Teaching technological forecasting to undergraduate students: a reflection on challenges and opportunities

This discussion article contains a reflection of the challenges I encountered while teaching technological forecasting to undergraduate students. I group these challenges into three groups: the inherent uncertainty of the forecasting process, the lack of appropriate learning materials, and existing methodological inconsistencies. I discuss how these challenges appeared in my classroom, and whenever possible, how I tried to solve them. I conclude by discussing some actions that the forecasting community could undertake to facilitate both teaching and research in this field

Sustainability tradeoffs in the adoption of 3D Concrete Printing in the construction industry

In recent years, 3D Concrete Printing (3DCP) has gained traction as a technological solution for reducing cement production's hefty carbon footprint. Studies assessing the sustainability benefits of 3DCP have not included its impact on social sustainability, nor how construction firms' implementation of this new technology has affected its success. This study applies grounded theory methods to analyze the tradeoffs between environmental, economic, and social sustainability, and how firms' decisions impact these tradeoffs. We gather insights from 20 interviews with 3DCP pioneers in Central and Northern Europe. Our findings suggest that firms' greatest incentive to invest in the technology is not related to the environmental benefits, but rather 3DCP's potential to increase automation and combat the current shortage of skilled labor in the construction sector. Current government procurement rules do not reward sustainability benefits sufficiently to encourage the uptake of 3DCP. Based on our findings, we identify five strategic decisions that companies make which affect 3DCP's sustainability, and discuss opportunities for government to foster the adoption of this technology